Transformation is a high priority for all companies today. But many transformation efforts are driven by beliefs rather than hard data. BCG’s research shows that some predictable factors separate winners from losers.
Transformations are often guided by beliefs that, while seemingly plausible, are more anecdotal than empirical. It’s time for a more evidence-based approach.
To study corporate transformation and its success factors, BCG analyzed more than 300 companies across different industries over more than a decade. We built a prediction model to identify formalized transformation programs, based on restructuring costs and major corporate announcements And we conducted a multivariate regression analysis to determine the impact of a number of factors on change in total shareholder return (TSR) during transformations.