Distributors rethinking supply chains
MDM reported that distributors are likely to shift sourcing domestically within three years, with many citing tariffs as a key factor. This trend began during the pandemic when companies realized supply chains, particularly in China, were unreliable. Nike moved production from China to Vietnam and other locations. The hosts noted that China’s ecosystem of technology and talent makes shifting difficult, but diversification interest has increased significantly.
The project versus program question
The hosts posed a fundamental question: is digital transformation a project with a start and end date, or an ongoing program with no specific finish line? A project has milestones leading to completion. A program goes through phases but comes back full circle for continuous improvement. How this question is answered determines resource allocation, measurement approaches, and executive expectations.
Digital transformation is not a project. It’s a program. It’s a way of being. It’s an existential thing.
Andy Hoar, Master B2B
Overwhelming agreement on paper
A LinkedIn poll found 96% of practitioners believe digital transformation is a program, while only 4% said project. The hosts joked that maybe the 4% were being honest about how companies manage it in practice. Despite near-universal agreement that transformation should be ongoing, operational reality often treats it as a finite initiative with completion milestones.
The failure rate reality
Research shows alarming failure rates. McKinsey found 70% of large-scale transformation efforts fail. Bain reported 88% of business transformations do not achieve original ambitions. Deloitte found 70% of digital transformation projects fail. The hosts noted the irony of Deloitte using the word projects in the same sentence as transformation, highlighting the conceptual confusion.
Four reasons transformations fail
The hosts identified four main causes: lack of clear measurable goals that allow success to be defined, insufficient change management running parallel to technology implementation, overloading top talent without reducing other responsibilities, and poor technology adoption decisions around platforms and integrations. Change management is often the biggest gap, with companies assuming technology implementation equals transformation.
Most of these things probably fail because the humans don’t ever get on board with it. There’s resistance. There’s misalignment.
Andy Hoar, Master B2B
Value loss during implementation
McKinsey found the largest share of value loss occurs during implementation rather than earlier phases. Poor targeting and planning contribute, but execution is where transformations die. When a marketing executive is compensated on lead scoring but asked to drive transformation on the side, the paying priority wins. Successful achievers get punished with more responsibilities, leading to burnout.
Completion correlates with success
McKinsey found that completing more planned tasks correlates highly with success. Companies that completed 24 or more actions had much higher success rates than those completing fewer. The hosts interpreted this as evidence that good planning combined with disciplined execution matters. Transformations lose momentum when the hard work begins and companies let priorities slip.
CEO ownership required
The hosts concluded that digital transformation is really business transformation. It changes how sales reps operate, where technology money is spent, and how the company goes to market. This means ownership must sit at the CEO level. A director or senior manager cannot drive the mindset shifts required across an organization. They lack sufficient influence to force change in sales-led organizations resistant to digital approaches.