The HOW | The HOW of transformation needs to be prioritized to break the ~75% transformation failure rate Change is often necessary, but business Transformations where the HOW is prioritized transformation success is rare achieve sustained performance improvement +90% … change managementis managed holistically 25% in a transformation +19% … d. clarity on the case erve for change +21% res … a CTO is ights l r Only 1 in 4 companies are successful strongly equipped Al. oupr 1 and leading the G in the short and long term transformation ting +27% sul on C … leaders are ton aligned on their osB transformation roles by 2 and responsibilities 202 © 1. TSR outperformance relative to sector over following 1-year & 5-year periods ight Note: Includes U.S. public companies ex-energy with $10B+ market cap; based on 2-year performance samples from 2000-2011. 15 Copyr Source: S&P Capital IQ, BCG Henderson Institute analysis, BCG Global 1000-company research change readiness baseline