A recent study of 300 senior UK business leaders by FT Longitude, produced in partnership with Liberty Blume, found that while transformation is widely seen as essential, how it’s executed it’s going to be one of the top challenges for businesses in 2026.
According to the research, a mere one in five UK companies can be classed as a “Business Transformation Leader”, this highlights an evident gap between organisations that are adapting effectively and those struggling to keep up and while nearly 80% of business leaders are expecting transformation to be the growth driver within two years, only 21% of organisations qualify as high-performing according to these standards. Meanwhile nearly 90% believe that transformation is the primary route to creating wider business value, yet for many organisations in our country, progress remains slow and uneven.
Among transformation leaders, 87% reported revenue growth, compared with 75% of other firms. They also report an increased productivity, with 83% seeing improvements versus 71% elsewhere. Similar gaps were evident in cost efficiency and profit growth.
What seems to separate the leading businesses from the rest is not a single initiative or technological investment, but a more balanced and consistent approach to change. The research identifies four factors that consistently set top performers apart and these are: advanced data management, effective technology adoption, a skilled, adaptable workforce, and strong change-management capabilities.
In one of the more compelling findings, the study suggests that internal enabling functions such as HR and procurement are becoming increasingly central to delivering these outcomes, however many organisations don’t seem to either fully recognise their potential or to be able to leverage it effectively.
One in three businesses believe their HR teams could deliver greater strategic value relative to cost, while nearly two-thirds say they are still rolling out new systems and modern ways of working.
For procurement teams, the research highlights the growing importance of predictive, data-led strategies, such as analysing supply chains alongside business demand to make more proactive decisions. For HR, the opportunity lies in better aligning workforce planning, skills development and change readiness with broader transformation goals.
The report also challenges the idea that transformation can be delivered through technology alone. Natalie Douglas, Group CFO at Liberty Blume, says businesses need to move beyond a “transform and done” mindset.
“Transformation today is a continuous evolution rather than a big bang moment,” she said. “Organisations that embrace ongoing change are the ones seeing real results.”
This view is echoed by Dr David Feavearyear, Managing Director of Procurement Services at Liberty Blume, who warns against treating technology as a panacea and seizes the opportunity to remind businesses to always put people first.
With economic uncertainty, cost pressures and shifting workforce expectations continuing to reshape the business landscape across the isles, this research suggests the consequences of inaction are becoming more pronounced. As the gap between transformation leaders and laggards widens, organisations that are unable to modernise quickly risk falling behind.