Adapt or fail, says new research from Gate One

New Transformation Index (TI) reveals organisations are struggling with AI, strategic planning, and leadership effectiveness, but businesses quick to adapt equates to long-term success

Three-quarters (78%) of global organisations are falling short in their transformation efforts according to new research from global consultancy Gate One. Only 22% are considered leading organisations in transformation, leaving 78% either stuck in the middle or lagging behind, with sluggish progress and mixed or poor results. The new Transformation Index (TI) surveyed 750 C-suite executives in the US and Europe across multiple sectors. The findings reveal that adaptability, embedded into both systems and people, correlates directly with transformation success and is critical to an organisation’s long-term prosperity.

Many transformations fail, not due to a flawed strategy, but because of an inability to adapt. Leading organisations are 27x more likely to successfully deliver transformation, with adaptability cited as the key differentiator. The TI identifies three core behaviours common to organisations with successful transformation are those that:

champion their data, treating it as a living asset to inform and connect strategy with delivery.
prioritise ruthlessly, sequencing change, maintaining focus and momentum, and protecting teams from overload
make value visible to customers, employees and eco-system partners.

CEOs perceive their organisations as the strongest in transformation (42%), while Chief Transformation Officers rank surprisingly low, with only 10% perceived as leaders, and 43% falling into the lagging category. This optimism gap reveals a deeper issue: misalignment between strategy and execution. Top transformation concerns among surveyed C-suite leaders include:

The rapid pace of AI evolution (30%)
Workforce readiness and strategic planning (29%)
Leadership effectiveness (29%)
Talent shortages, economic uncertainty, and compliance risks also rank highly.

The consumer goods sector stands out with a high concentration of leading transformation organisations (27%), followed by insurance (25%). The energy sector trails behind with just 9% of leading organisations, and a notable 35% falling into the lagging category. Pharma and life sciences aren’t far ahead, with 38% also identified as ‘lagging’.

AI and emerging technologies are creating a strategic divide among business leaders. While 34% view AI as a strategic investment in future capabilities, 39% are focused on tactical gains, while 20% see it as both. This split highlights the tension between delivering immediate value and investing in sustainable capabilities.

The research also reveals that 45% of respondents say AI has reshaped their technology strategy, particularly among the lagging organisations, suggesting that technology may be driving decisions more than business strategy. Almost three quarters (73%) of leading organisations report that AI adoption has significantly accelerated their transformation efforts, indicating that AI is a powerful enabler when strategically deployed.

“Our inaugural Transformation Index highlights that their approach is what sets Leading organisations and laggards apart from the rest. They treat transformation not as a one-off event, but as continuous change at scale, aligning leadership around a shared vision, balancing strategic and tactical priorities, and empowering people to drive change,” said Ben Tye, Managing Partner, Gate One. “At Gate One, we see adaptability as a core capability that makes transformation stick. And it’s not just about reacting to events. It’s about building a mindset, culture and adaptable business architectures for continuous change.”