One-time transformation is over. Iterative change is today’s game

In years gone by, an upgrade to a legacy system could reasonably be considered significant business transformation. Market cycles and technological progress moved more slowly, and a single platform update was often enough to signal progress.

That’s no longer the case. The world is moving faster than ever before, and rather than one-and-done transformation plans, modern businesses need agile systems that can constantly adapt amid the rapid pace of change.

Today, business transformation is a continuous evolution rather than a big bang moment. That might sound daunting, but companies who are embracing the iterative transformation journey are seeing tangible results.

New research from Liberty Blume in collaboration with FT Longitude, which surveyed 300 UK business leaders, found that companies who excel at business transformation are more likely to have higher revenue growth, employee productivity, profit growth and cost efficiency than those who are behind with their transformation journeys.

The best-performing companies are transforming across four key pillars: advanced data management, technology implementation, change and people management. Our report found that by modernising their business functions, companies can reduce operating costs by over 40%, and can significantly improve compliance and strategic bandwidth.

Almost two-thirds of companies surveyed are already making transformation happen – but those that haven’t risk being left behind the pack.

In the past, cost was a key motivator for business transformation. Now, we’re seeing organisations shift towards viewing transformation as an enabler of future success. 79% say business transformation will drive growth in the next two years, while 87% actively advocate it as a means of creating wider business value.

In this new landscape, finance must evolve to become enablers of change. Rather than act as a guardrail, CFOs need to champion transformation to ensure that their organisations are fit to meet tomorrow’s demands.

The finance function has undergone a profound transformation, from a traditional role focused on reporting numbers to a strategic business partner driving organisational direction. Today, it’s not just about supporting the business, it’s about actively shaping its future.

Amid all of the noise around the potential of transformation, one thing is certain: change is inevitable. We need to start thinking of transformation as a mindset rather than a milestone to be reached. Those that approach it as an iterative process, rather than a one-time fix, unlock long-term value.

Download Liberty Blume’s new report, Transform to Outperform: The business case for change, to find out more about how businesses today are approaching transformation and working smarter.