12/08/2025 by Erik Delnoij
What makes a successful business transformation?
Our managing partner, Erik Delnoij, shares the most important question for executive management that will lead to a successful business transformation.
Executive summary
Our practice has shown that one of the key factors driving unsuccessful transformations is too much complexity. In our approach with executive management, we specialize in doing what is essential. We focus on what really has to get done instead of what is nice to have. We simplify where possible and above all, design a transformation with execution in mind.
Introduction
The factors that define succes in business transformation are both widely debated and critically important. If you were to ask ChatGPT that very question, the answer is something along the lines of the following:
"A successful business transformation is a comprehensive, strategic shift that allows a company to remain competitive, increase efficiency, and deliver better value. While the exact ingredients vary depending on the business, industry, and goals, several core factors consistently contribute to a successful transformation:
1. Clear vision and strategic alignment
- Defined goals: Understand why the transformation is needed—growth, efficiency, innovation, or survival.
- Leadership alignment: Executives and board members must fully buy into the vision.
- Strategic roadmap: A step-by-step plan with milestones, dependencies, and KPIs.
2. Strong leadership and governance
- Executive sponsorship: Leadership must be visible, committed, and hands-on.
- Change champions: Mid-level leaders should drive the change across departments.
- Accountability structures: Set up governance bodies to monitor and steer progress.
3. Culture and mindset shift
- Employee buy-in: People resist change; addressing fears, involving teams early, and transparent communication are key.
- Agile mindset: Encouraging flexibility, experimentation, and continuous learning.
- Incentives and recognition: Align rewards with transformation behaviors and outcomes.
4. Customer-centric approach
- Customer feedback loop: Use voice-of-the-customer (VoC) data to guide design and decision-making.
- Reimagined experiences: Ensure transformation improves customer outcomes, not just internal metrics.
5. Effective use of technology
- Fit-for-purpose tech: Choose platforms and tools that solve real problems—not just flashy innovations.
Modernization: Upgrade legacy systems where needed to support new models or efficiencies.
Data-driven decisions: Build capabilities in analytics, AI, or automation where they create clear value.
6. Integrated execution
- Cross-functional collaboration: Break down silos; transformation affects many departments.
- Iterative delivery: Use agile or hybrid methods to deliver value in waves.
- Quick wins + long-term value: Balance speed with sustainability.
7. Measurement and adaptability
- Clear metrics: Define success in measurable ways (cost savings, NPS, time-to-market, etc.).
- Frequent reviews: Continuously assess what's working, what's not—and pivot accordingly.
- Feedback loops: Both internal and external feedback should shape the ongoing transformation."
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That is a very comprehensive list and to accomplish all the above is a hugely complex and ambitious undertaking.
Focus on what really has to get done
At Navoniq, we believe a different question is perhaps more important: what would cause this transformation to fail? What factors would obstruct progress? Answering that question with executive management creates a clear understanding of what the priorities in the transformation should be.
Our practice has shown that one of the key factors driving unsuccessful transformations is too much complexity. In our approach with executive management, we specialize in doing what is essential. We focus on what really has to get done instead of what is nice to have. We simplify where possible and above all, design a transformation with execution in mind.