Change & Transformation: What It Means, What It Takes
The term Change & Transformation has gained tremendous popularity in the past decade across businesses of all kinds - to the point that it has now become a business function in its own right. With an increasing number of roles within the space being advertised, one might be interested in knowing more about the discipline and what its core functions entail.
So What Exactly is Change and Transformation?
Change & Transformation is the catch-all phrase used to describe the transformation process that goes on in organisations whether wildly successful or struggling. As John P. Kotter, Emeritus Professor of Harvard Business School (2007) said:
“These efforts have gone under many banners: total quality management, reengineering, rightsizing, restructuring, cultural change, and turnaround. But, in almost every case, the basic goal has been the same: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging market environment.”
This transformation process is never-ending and evolutionary. Some companies get it right, others fail to understand it. Change & Transformation isn't just about upgrading an operating platform (that’s more incremental change) or merely updating corporate identity or culture (that’s transformative). It covers a gamut of areas—from people/HR-related processes through software & technology-driven events, to new business practices and organisational structures.
Understanding Transformation vs. Change
What is the difference between change and transformation?
Aspect | Change | Transformation |
|---|---|---|
Scope | Often focused, specific, and usually incremental. Could be process improvements, tweaking existing systems, or short-term shifts. | Fundamental shifts in how the organisation operates. May include culture, business model, operating model, strategy, mission — often more radical. |
Pace & Disruption | Usually quicker, less disruptive. Changes can happen frequently and be less risky. | Slower (or spread out), more disruptive. Requires more planning and may affect many parts of the organisation deeply. |
Goal | To improve efficiency, fix specific issues, or adapt to relatively known pressures. | To respond to major market shifts, to reinvent, reimagine, or transform the future state of the company. |
Examples | Moving from manual to digital record-keeping; reorganizing a department; implementing a minor software upgrade. | Changing business model (e.g. product -> subscription), transforming company culture, re-platforming core systems, major restructuring. |
Why is understanding this difference important?
Strategy & Vision: If leaders confuse incremental change for transformation (or vice versa), they may under-invest or overcommit resources.
Resource Allocation: Transformation often requires much more investment, top-level buy-in, long-term planning; change may be managed within existing budgets and shorter timelines.
Cultural Impact & Risk Management: Transformation demands changes in mindset, behaviour, leadership, often risk tolerance; change might have lower risk but still needs stakeholder engagement.
Measurement & Outcomes: Change outcomes can be measured with quicker metrics; transformation outcomes may include long-term health of the org, sustained growth, competitive advantage.
Impact of Transformation and Change
According to McKinsey, companies with top-quartile financial performance often capture about 74% of their transformations’ value within the first 12 months. But even successful transformations typically realize only about 67% of their full potential. McKinsey & Company
Bain & Company’s survey (2024) found that while more than a third of large organisations are undergoing business transformations at any given time, only about 12% achieve their original ambition when it comes to the full scope of what they intended. Bain
McKinsey’s research also shows that when organisations follow a rigorous set of actions (e.g. planning, stakeholder engagement, strong leadership, clear accountability), their transformation success rate can jump from an average of ~26% to ~58%, and for completed initiatives, even up to 79%. McKinsey & Company
These statistics show that although transformation efforts are common, truly successful transformations (in the sense of deeply changing how a business operates and sustaining improvements) are much rarer — and require dedication, clarity, and discipline.
Jobs In Change & Transformation
A successful transformational process can be driven by a single strategic hire — or by the decision to completely overhaul legacy processes and infrastructure. These transformations are often very costly, and the amount of funding doesn’t always guarantee success.
Professionals eyeing a role in Change & Transformation should consider:
Which function owns it in the organisation (CPO, CEO, COO, or a dedicated transformation office).
Whether the role is more focused on HR, culture, digital/IT transformation, business process redesign, or customer/user experience.
Your own interest and track record aligning with incremental change vs. full transformation.
Why the Discipline Isn’t Going Away
With the shared experiences through the COVID-19 pandemic, one thing is certain: the Change & Transformation discipline won’t be disappearing any time soon. In many sectors, the teams responsible for transformation also lead business continuity and resilience planning. As market pressures, technology disruption, and customer expectations continue evolving rapidly, companies must stay agile, adaptable, and future-focused.
Contact
Octavian Donnelly is a Consultant at Rutherford, the executive specialists in compliance, financial crime, legal and change and transformation recruitment.
Contact us for a confidential search, send us an email at enquiries@rutherfordsearch.com or see our latest vacancies.
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