Despite billions invested annually in digital transformation, over a third of programs still fail to achieve their objectives.

The technology itself is rarely the problem. VML's extensive research, surveying 4,000 business leaders across eight countries, consistently highlights the human factor for transformation as the real challenge. 

Our whitepaper "Unlocking Transformation Potential Through Change Management: Why People Are Crucial to the Success of Business Transformation Programs" explores how success begins with placing individuals, processes and organizational culture at the core of your transformation strategy. Without a deliberate, structured approach to engaging stakeholders and embedding robust change management, even the most advanced systems will struggle to deliver their intended value – a critical oversight that explains why digital transformation fails.

Download our whitepaper "Unlocking Transformation Potential Through Change Management: Why People Are Crucial to the Success of Business Transformation Programs" here:

The Role of Digital Transformation Leadership in Success

Digital transformation leadership engagement is a non-negotiable for success. However, only about a third of senior executives are actively involved in delivery. This detachment makes overcoming human resistance to change far more difficult. 

While digital transformation theoretically unites an organization, in practice, it often exposes underlying fault lines. Business transformation initiatives involve a wide array of stakeholders, and coordinating such diverse groups is inherently complex. The presence of a Project Management Office (PMO) significantly enhances project success, yet fewer than three in ten organizations utilize one.

Fostering a Human-Centric Digital Transformation

According to our survey, 83% of leaders agree that transformation is as much about human beings as it is about new technology. It's not an IT project — it's an enterprise-wide shift demanding leadership attention at every level for a truly human-centric digital transformation.

Employees are far more likely to embrace change when they understand the destination and can see how their work contributes to it. That means putting people, process and culture at the center of your plan. Without that clarity, disengagement sets in quickly. 

Start every transformation program with a communications plan — not a project plan — if you want to help your employees to embrace change. 

Alan Davies

Global Consulting Lead, VML

Change Management: The Missing Link for Measurable ROI

Despite widespread recognition of its importance, change management in business transformation is too often underfunded and undervalued. Many organizations channel the bulk of their budgets into technology, leaving little room for the human and process elements that determine whether that technology will be adopted effectively. Our survey reveals:

  • 71% of leaders admit tech spend frequently crowds out investment in change management.
  • Nearly 70% say process changes are insufficient when new systems are introduced.

The consequences are predictable: processes remain misaligned and anticipated benefits are diminished. The dynamic nature of these programs demands that processes and training cannot be static. Effective change management requires continuous efforts in measuring transformation adoption.

FAQS ON DIGITAL TRANSFORMATION

According to research from VML, the primary reason digital transformation programs fail is not the technology itself, but the neglect of the human factor. Data shows that 74% of project failures are linked to poor change management around people, and 73% of leaders experience conflicting team objectives, which creates barriers to success.

The "human factor" in business transformation refers to putting people, processes and organizational culture at the center of a transformation strategy. It involves a structured approach to engaging stakeholders, equipping teams with new skills, and ensuring technology serves as an enabler for people, rather than being the sole focus of the initiative.

Based on the VML Change Management Blueprint, there are five leading principles for effective change management:

  • Anchor in clear sponsorship and governance to ensure visible, active leadership.
  • Tell a consistent, evolving story to keep everyone aligned with the "Why, What, How, and When."
  • Continuously assess impact and readiness to manage risks and target interventions.
  • Invest in capability at every phase through dedicated training, coaching, and support.
  • Pilot, measure and refine before scaling to build on proven approaches and reduce resistance.

A change management blueprint is a strategic framework that integrates people, process and technology from the very beginning of a transformation program. Its goal is to address common failure points by establishing unified governance, designing a clear communication architecture, building team capabilities, and adapting workflows to ensure new technology is actually adopted and used effectively.

Leadership's role is to provide clear, active and visible sponsorship throughout the entire transformation journey. This includes establishing a clear vision, removing obstacles, and ensuring the program has the guidance it needs to navigate challenges. Leadership should prioritize a communications plan over a project plan, signaling that transformation is an enterprise-wide shift, not just an IT project.

Download our whitepaper "Unlocking Transformation Potential Through Change Management: Why People Are Crucial to the Success of Business Transformation Programs" here:

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