The rise and rise of the Chief Transformation Officer

Once an outlier juggling micro changes with more fundamental shifts, the role of Chief Transformation Officer (CTrO) is fast becoming a mainstay in forward-thinking businesses. 

A Deloitte study paints a pretty conclusive picture. Just three years ago, only 2% of those in the role were dedicated to major transformations; that figure shot up to 48% this year.

So what’s behind this trend? 

Black signets and continual regeneration

If covid was the one true black swan event in recent history, it’s fair to say the continual chaos of the new normal, populist geopolitics, conflict, cost of living crisis, unpredictable trade agreements, and the emergence of GenAI represent an unexpected number of black signets.

This has fundamentally shifted the parameters for transformation. No longer a once-in-a-C-suite generational change, transformation is fast becoming a central pillar of business, with a growth mindset and nimbleness to act becoming a prerequisite in boardrooms around the world.

This is reflected in a recent Global CEO survey, in which 42% of CEOs believed their company would not be viable beyond the next 10 years without reinvention, and nearly four in ten said they had begun competing in new sectors in the last five years.

This acceptance that change will be continual, and the recognition that getting ahead of the signals puts businesses in a position to shape the market as opposed to being shaped by the market, is galvanising a new way forward.

CIO, CCO, COO or CEO

While a team sport, transformation requires leadership and, more importantly, ownership.

More often than not, the leadership will come from the CEO, but the responsibility is often fragmented or added to an already creaking workload. So, while others in the business are, no doubt, capable of driving the transformation agenda, the dual pressures of optimising the business for today, while designing the business of tomorrow, can be both conflicting and overwhelming.  

We explored how COOs are also increasingly being tasked with major transformations in another recent blog. 

The same is the case for others across the C-suite (including CCO and CIO), but while they can provide deep insight from their standpoint, the impacts of company-wide change are harder to predict without that lived experience. It’s no surprise, then, that the average CTrO has three large-scale change programmes under their belts.

A new breed driving the change agenda

27% of CTrO’s come from an innovation, strategy and digital background, almost twice as many versus those coming from general management, information technology or sales and marketing functions.

This is unsurprising in the context of what modern transformation entails. This includes:

Strategic leader: Defining the direction of travel for the business to drive sustainable growth, differentiation, and adjacent offerings and revenue opportunities.

Change advocate: Learning from past transformations, they understand the importance of conscious change management, talent mapping and investment, and clear communications.

Practitioner: Leading the execution of strategy and laying the right foundations to truly embed change into the team and business.

Success champion: Shifting KPIs from reporting mechanisms to strategic decision drivers to maintain momentum and support from the CEO.

The future’s bright

While the CTrO role may be relatively new, a quick search on LinkedIn shows many to have been appointed in the past 18 months, it is increasingly carrying significant clout. 

This influence is key to getting the (transformation) job done, but is also propelling over 50% of them into CEO or COO roles or P&L responsibility for a business unit.

In a world of relentless reinvention, the CTrO may be the most important seat at the table.

We’re a business accelerator that works with CTrOs, focusing on the continual regeneration of products and services to deliver continuous growth. We play an active role in helping businesses get to the future faster.