8 ways to achieve business transformation

Unlocking business transformation: 8 steps for lasting success

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Amelia Brand
03/27/2025

Market forces are evolving, customer expectations are shifting and technological advancements are accelerating, meaning companies must continuously adapt to stay competitive and successfully achieve business transformation.

According to PEX Network’s 2024/25 Global state of OPEX & business transformation report, nearly half (48 percent) of organizations are now deploying enterprise-wide operational excellence (OPEX) and transformation strategies – a significant jump from 37 percent in 2023. This rising trend reflects a growing recognition that large-scale transformation is essential for survival and growth.

However, achieving meaningful transformation is complex. It requires strong leadership, strategic alignment and the ability to continuously measure and refine initiatives.

Rethinking your business strategy and operating models can deliver breakthrough value. Based on insights from PEX Network's latest report, alongside expert commentary, here are eight essential steps to achieving effective and sustainable business transformation.

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1. Define a clear vision and secure leadership commitment

Successful transformation begins with a clearly defined vision that outlines the desired future state of the organization. Without this guiding direction, initiatives risk becoming disjointed or misaligned.

According to PEX Network’s 2024/25 report, CEOs remain the biggest sponsors of OPEX and business transformation initiatives, with 27 percent of surveyed organizations identifying them as the primary drivers – up from 24 percent in 2023. This demonstrates that transformation efforts are increasingly being led from the top.

Vikram Ashok, CEO at Graphite, stresses the importance of leadership buy-in:

“Leadership has to define clear goals and take on the role of change drivers. They need to articulate a compelling vision of the future and inspire the teams to create a roadmap to achieve that vision.”

Without visible and sustained executive support, transformation efforts often lack the authority, resources and momentum necessary for success. Leaders must also act as role models, visibly championing the changes they expect their teams to embrace.

2. Align transformation with strategic business objectives

For transformation to deliver meaningful impact, it must be directly linked to the company’s core strategic goals. Misaligned or superficial initiatives risk squandering resources and failing to drive real business value.

A crucial question to ask is whether the transformation goals are aligned with the overall business strategy. As Debashis Sarkar, managing partner at Proliferator Advisory & Consulting, explains:

“OPEX and business transformation initiatives shouldn’t be undertaken for mere show. Instead, they should be laser-focused on tackling specific business challenges and propelling the company towards its strategic objectives.”

Further, PEX Network’s report highlights the importance of connecting transformation efforts to “north star metrics” such as revenue growth, cost reduction, customer satisfaction and operational efficiency. By establishing clear, measurable objectives, organizations can ensure their transformation initiatives contribute to long-term business success.

Speaking at the 2025 OPEX Week: Business Transformation World Summit, Charles Brandon, director of the process improvement program office at HQDA, said that in order to meet organizational transformation goals, “focusing solely on process improvement is no longer sufficient.” By incorporating comprehensive strategies, functional analyses and advanced digital tools, businesses can go beyond traditional process improvement, enabling “better alignment with organizational strategic priorities and mission requirements.”

3. Prioritize and sequence transformation initiatives

One of the most common pitfalls in business transformation is attempting to do too much at once. When organizations spread their resources thin by launching multiple large-scale initiatives simultaneously, they often dilute their impact. Sarkar warns against this: “Running multiple concurrent programs dilutes resources and diminishes the impact of each individual initiative.”

To avoid this, organizations should prioritize their transformation efforts based on business needs, potential impact and feasibility. Focusing on high-impact areas first – such as customer-facing processes or core operational inefficiencies – can generate quick wins and build momentum. Adopting a phased approach, where smaller initiatives are rolled out sequentially, allows organizations to refine their strategies before scaling them across the business.

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4. Build a robust OPEX and business transformation framework

A successful transformation requires ambition and demands structure. According to PEX Network, 33 percent of organizations are currently building their OPEX and transformation process base, up from 29 percent in 2023. This trend highlights the importance of establishing a solid framework to govern and guide transformation efforts.

An effective OPEX framework should include clearly defined governance structures, standardized processes and performance measurement systems. Governance ensures accountability by assigning ownership and defining decision-making protocols. Standardized processes provide consistency, while regular performance reviews help organizations track progress and make data-driven adjustments.

5. Empower internal change champions

While leadership provides the vision, it is often core teams that drive the execution. These individuals, who balance transformation efforts with their regular responsibilities, are critical to success. Identifying and empowering internal “change champions” can help foster momentum and overcome resistance.

Ashok highlights the importance of blending internal and external expertise:

“Leaders must identify and empower champions of change within their teams, but they also might need to bring in external consultants who have navigated similar journeys. That’s a theme we’re seeing a lot and we believe blending internal and external teams can effectively manage transformation while maintaining business continuity.”

Internal champions provide invaluable on-the-ground insights, promote buy-in from colleagues and help reinforce the cultural shifts necessary for transformation to stick.

Read Change management – the unsung hero of business transformation

6. Leverage technology and automation

Technology is a powerful enabler of business transformation. From robotic process automation (RPA) to artificial intelligence (AI) driven insights and cloud platforms, organizations are increasingly using technology to streamline operations, reduce costs and enhance customer experiences.

PEX Network’s report reveals that 20 percent of organizations have already implemented technology solutions and are actively conducting continuous improvement adjustments. This indicates that digital tools are now central to long-term transformation efforts.

By automating repetitive processes, organizations can free up employees to focus on higher-value activities. AI-powered analytics can provide real-time insights, enabling data-driven decision-making, while cloud platforms improve collaboration and scalability.

However, organizations must have a clear vision of where the use of automation will be the most helpful, warns Doug Shannon, global intelligent automation and generative AI thought leader. “The biggest challenges include understanding the value of AI projects, the cost and the lack of clear guidance on implementation and results. Organizations can leverage AI in many ways, but success depends on having the right data sets and models. Most organizations investing in AI are struggling to find the right use cases and integrate generative AI into their enterprises.”

7. Measure progress and adapt in real-time

Continuous performance measurement is essential for keeping transformation initiatives on track. PEX Network’s report highlights that 20 percent of organizations are already conducting regular continuous improvement adjustments, refining their strategies based on real-time feedback. The report also highlights that 43 percent measure efficiency and costs savings as primary key performance indicators (KPIs) for business transformation.

To maximize effectiveness, organizations must establish clear KPIs aligned with their transformation objectives. These might include financial metrics (such as revenue growth and cost savings), customer satisfaction scores and operational efficiency indicators.

“Even Fortune 500 companies should adopt the mindset of operating like ‘lean startups’ – prioritizing transformation projects based on ‘hard dollars’ first, such as revenue generation or margin expansion,” says Katie Curry, managing director and head of operations at MSI. Regularly measuring and analyzing these metrics allows organizations to identify what’s working, address inefficiencies and make data-backed decisions.

8. Keep the customer at the core of transformation

According to PEX Network’s 2024/25 report, maintaining a customer-centric focus is one of the top five challenges in business transformation. Yet, at its core, transformation is about delivering greater value to customers.

To succeed, organizations must embed customer experience at every stage of transformation. This involves mapping the customer journey, identifying pain points and continuously refining processes to enhance satisfaction and loyalty.

As industry analyst Madhu Kittur notes, “In today’s fast-paced business landscape, OPEX and business transformation are essential for maintaining a competitive edge.”

True customer-centric transformation goes beyond service improvements – it requires integrating customer feedback into product development, operations and strategic decision-making. Businesses that prioritize customer needs are better positioned to build lasting relationships and drive sustainable growth.