Business transformation has evolved from a one-time activity to an ongoing requirement. Deloitte 2025 CTO study states that 48% of the firms have a chief transformation officer to oversee the transformation efforts. This boom is symptomatic of the deeper reality: in a time of perpetual upheaval, remove the word organizations can no longer regard it as a project. It needs to be integrated into all levels of leadership, strategy, and operations.
The Rise of the CTrO
The concept of transformational leadership is not a new one. Historically, CEOs and COOs guided change as well as everyday responsibilities. But as disruption has increased in speed, whether in digital technology, geopolitical shifts, or new market entrants, the load of change has become too heavy to be an “extra duty.”
And that’s where the Chief Transformation Officer role comes in: an architect of organization-wide change, who sustains momentum, and assures that strategies act on more than just a PowerPoint. The CTrO is both strategist and operator, linking vision with mission with laser focus on results.
Why the Role Matters Now
Deloitte research highlights three themes and reflects the broader transformation landscape.
1. Ongoing Change Management
Change no longer entails a new ERP system every decade or a redesign of a supply chain once a generation. We live in a state of permanent change today. Cloud adoption, increased use of AI in workflows, sustainability requirements, and changing workforce requirements will keep organizations on a continuous path of adaptation.
A CTrO makes sure that change becomes a muscle that can be repeated. Rather than viewing change as a shock, businesses with CTrOs instill governance, communication, and cultural reinforcement, which establishes and normalizes change and activities related to it, as business-as-usual.
2. Decision-related KPIs.
Most transformation programs fail because success is determined by nebulous aims and not true results. A transformation leader establishes clarity by setting meaningful KPIs:
- Revenues from new products and services
- Measures of customer experience
- Better process efficiencies
- How much are employees adopting and engaging with the tool?
Supported by appropriate metrics, transformation is now no longer a tale of aspiration, but rather of data. CTrOs monitor these results immediately, responding to dashboards and performance reviews quickly to change trajectory and hold leaders accountable.
3. Perpetuated Execution
Strategy without execution is theater. A central role of the CTrO is to convert bold vision into ongoing action. It involves breaking large multi-year programs into achievable waves, ensuring resources are in place, and that teams get energized through the ebbs and flows of change.
But execution is where many organizations falter: down-to-earth enthusiasm dissipates, budgets shrink, competing priorities creep in. CTrOs provide the rigor, persistence, and focus to sustain programs long after the kick-off meetings.
Lessons from Early Movers
Companies across industries are already demonstrating the value of dedicated transformation leadership:
- CTrOs are being deployed by financial services companies to supervise digital migration programs at scale with regulatory compliance and AI-based decisioning orchestration.
- Retail chains are looking for change agents to execute the digitalization of the supply chain, along with the implementation of omnichannel strategies and customer loyalty initiatives, all at once.
- CTrOs are used by manufacturers to spearhead sustainability and automation initiatives, integrating across engineering, operations, and reskilling the workforce.
And in each instance, the CTrO is the connective tissue between the ambitious aspirations of the corporation and the operational reality of implementing them, the bandwidth for which CEOs are unable to muster on their own.
Transformation as a Core Capability
The recent trend of designing CTrO positions is indicative of a broader change in mindset at the leadership level. Transformation is not episodic; it’s a fundamental organizational capability. Just like having a CFO guarantees financial discipline or a CIO technological resilience, the presence of a CTrO ensures that the gamble of transformation doesn’t happen by accident.
There is also a sign of the increasing importance of culture, rather than strategy, in success. Having transformation leaders entrenched at the senior leadership level sends a strong message to organizations that adaptability, resilience, and reinvention are integrated into the business-as-usual operations.
What Leaders Should Consider
When considering whether to hire a CTrO, executives might ask themselves three questions:
1. Are we responding to or initiating change?
If the majority of the transformation is merely crisis management, it requires a leader with a more proactive approach.
2. But are we clear on what kind of transformation?
Transformation will meander in the absence of KPIs for growth, efficiency, and adoption.
3. Is execution always maintained?
If programs stall after the first year, the organization may require the focus and discipline of a CTrO.
Conclusion: Transformation at Scale Requires Dedicated Leadership
The use of CTrOs by almost half of companies is not just a fad; it is a sign of the times. It is the central characteristic of contemporary business and requires leadership commensurate with that complexity and magnitude.
The organizations that are successful in the future will not be the ones who start the coolest projects, but rather the ones who embed transformation into their DNA. Having a Chief Transformation Officer to lead this effort allows organizations to more effectively contend with the need for ongoing change, data-driven decision making, and long-term execution.
In short, it takes not just vision but leadership to implement that vision at scale. At Inobal, we partner with sustainability-minded leaders to develop change strategies that are sustainable, allowing businesses to not only cope but excel in a world that is constantly changing.
