Kearney releases 2025 Transformation Study

With 83 percent of transformation programs missing targets,  report reveals factors behind success and failure 

• 83 percent of transformation leaders say they miss their targets about half the time or more.
• Successful programs focus on the human factor and build resilience: people and sequencing, combining quick wins with long-term growth capacity and AI-driven scaling.
• The top three triggers for change are market disruption (63 percent), innovative technologies (51 percent), and financial underperformance (45 percent).

CHICAGO, Nov. 4, 2025 /PRNewswire/ -- Kearney today released its 2025 Transformation Study, revealing that despite record investment in change programs, most companies are still struggling to deliver the value they expect. The study, which surveyed 76 senior transformation executives across industries and company sizes, highlights that the root causes of failure are rarely about resources or tools. Instead, the missing ingredient is often alignment—of purpose, leadership, and people.

Kearney's research identifies seven imperatives that distinguish successful transformations:
set a bold vision, define and measure success, put people at the center, put points on the board early, transform growth capacity—not just costs, start with talent and scale with technology, and manage transformation as an integrated whole.

"The data confirms what we see in the field: most transformations fail because companies don't secure enough buy-in from within," said Jennifer McGee, partner in Kearney's Strategy, Growth, and Organizational Transformation practice and author of the report. "When two-thirds of executives cite resistance to change as their top challenge, it's a clear signal that success depends less on strategy or tools and more on people: on listening, engaging, and leading with transparency."

Yet, the findings underscore how rarely transformations achieve their goals. Even well-resourced programs often underdeliver because organizations underestimate the challenge of winning hearts and minds. Among the executives surveyed, two-thirds cited resistance to change as their biggest obstacle, followed by senior-leader misalignment and organizational fatigue.

"Execution discipline matters, but so does sequencing," added Bryan Arcati, partner in Kearney's Strategy, Growth, and Organizational Transformation practice. "Organizations that put points on the board early, through visible operational wins, and then scale using technology and data are the ones that sustain momentum. AI, particularly generative AI, is becoming a core enabler, but success still hinges on people. The best leaders manage transformation as a system, not a one-off project."

Despite the challenges, the report offers optimism: organizations that adopt these practices deliver sustained growth, faster decision-making, and stronger employee engagement. "Transformation fatigue doesn't have to be inevitable," McGee noted. "When leaders sequence change thoughtfully and invest in their people, transformation becomes a source of energy—not exhaustion."

The 2025 Transformation Study is part of Kearney's ongoing research into how leaders build resilience and growth capacity in an age of continuous disruption.

For more information, to schedule an interview with Jennifer McGee or Bryan Arcati, or to receive a copy of the study, please contact:

Meir Kahtan Public Relations

Meir Kahtan

+1 917-864-0800

[email protected]

About Kearney

Since 1926, Kearney has been a leading management consulting firm and trusted partner to three-quarters of the Fortune Global 500 and governments around the world. With a presence across more than 40 countries, our people make us who we are. We work impact first, tackling your toughest challenges with original thinking and a commitment to making change happen together. By your side, we deliver—value, results, impact. www.kearney.com

 

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SOURCE Kearney