New report reveals "seven dimensions" for
successful business transformation
NEW
YORK, June 25, 2024 /PRNewswire/ -- A new
survey by leading international law firm Mayer Brown, "The Next
Organization: Seven Dimensions of Successful Business
Transformation (A Financial Services Report)," reveals
significant gaps in organizational preparedness for successful
business transformation.
The need to transform
According to the survey,
which includes insights from 197 leaders from financial services
firms, nearly two-thirds of business leaders (64%) acknowledge the
need for complete organizational transformation, and 68% believe
the current market environment creates challenges to accomplishing
business transformation.
In addition:
- Over two-thirds (68%) of financial institution leaders say
their organizations are not transforming fast enough (compared to
62% of investment firms)
- While 86% of financial services firms have an overall business
transformation strategy in place, most do not look beyond 12
months
- Over two-thirds (64% of financial institutions and 69% of
investment firms) believe that their organizations need complete
transformation to thrive and create value
Jon Van Gorp, chair of Mayer
Brown, said:
"As the law firm advising the world's
financial services industry on complex matters—Mayer Brown's
signature strength—we undertook this survey to uncover the
multifaceted and sometimes conflicting opportunities and obstacles
confronting industry leaders, and to establish benchmarking
solutions for achieving business transformation. For instance, ESG
compliance and capital sourcing present both opportunities and
obstacles, thereby complicating strategy development. Our seven
dimensions provide a framework for navigating these issues, aiding
clients in their transformation journeys. With a clearer
understanding of the drivers of transformation, business leaders,
in collaboration with their legal teams, are well-positioned to
evolve into the 'Next Organization'."
What influences transformation plans?
Based on
the market insights Mayer Brown identified seven key
dimensions of a business that is future ready. These aspects
are high on the corporate agenda and include:
- Creative Capital: 80% of financial institutions and 76%
of investment firms believe that innovative financing solutions
(including an increase in private sector credit) will power
growth
- Geopolitical Agility: 84% of investment firm leaders say
that geopolitical agility will be critical for an organization's
expansion internationally in the future
- New Risk Mindset: Nearly 80% of financial services
organizations believe companies must take a proactive approach to
risk management to pre-empt crises
- Regulation Anticipation: Over 70% of financial services
organizations highlighted regulatory anticipation and being able to
adapt quickly to developments as crucial to transformation
success
- Sustainability Focus: 77% of investment firms and 69% of
financial institutions think that leaders must embrace
sustainability if they are to thrive in the next economy
- Tech Resilience: 77% of investment firms and 69% of
financial institutions believe that their organization must
demonstrate resilience against increasing cyberattacks and keeping
ahead of AI developments
- Visionary Growth & Leadership: Nearly 80% of
financial services organizations believe visionary leadership will
enable companies to grow and outpace competitors in the next
economy
What accelerates transformation?
The findings
suggest that several macro forces are capable of driving corporate
progress between now and 2026. These are summarized as:
- Over 60% of both financial institutions and investment firms
say the end of cheap money is encouraging a pivot towards cheap
capital
- 68% of financial services organizations believe that increasing
stakeholder activism will encourage positive change by improving
corporate accountability
- Over two-thirds of investment firms (66%) and financial
institutions (67%) believe that the unpredictable regulatory
environment will drive business forwards
- 68% of financial institutions and 71% of investment firms say
geopolitical turbulence will encourage new ways of business
- The number one accelerator for AI transformation according to
investment firms is M&A – 83% of leaders cite M&A as the
way to advance AI capabilities
The Next Organization Report
The Next
Organization report analyzes the hurdles to business
transformation and outlines a "seven-dimension solution" that will
help businesses overcome these challenges and successfully compete
in the economy of the future.
These seven areas are: Creative Capital, Geopolitical Agility,
New Risk Mindset, Regulation Anticipation, Sustainability Focus,
Tech Resilience, and Visionary Growth and Leadership.
Read the full report.
Notes to editors
About The Next Organization
report
Mayer Brown conducted dimensional analysis across 90
leaders from banking, insurance, and other financial services
companies ("financial institutions") and 107 leaders from
investment banking, asset management, and private equity firms
("investment firms"). The term "financial services
firms" refers to leaders of both financial institutions and
investment firms. The study covered Europe, Asia-Pacific, North
America, Latin America, and
the Middle East.
About Mayer Brown
Mayer Brown is an international law
firm, positioned to represent the world's major corporations,
funds, and financial institutions in their most important and
complex transactions and disputes.
For over a century, Mayer Brown has been recognized as a leader
in financial services. One of the firm's signature strengths is the
broad range of sophisticated advice its provides to the global
financial services industry, including on transactional,
regulatory, and high-stakes litigation and investigation
matters.
View original
content:https://www.prnewswire.com/news-releases/financial-leaders-brace-for-change-to-address-multiple-threats-mayer-brown-study-finds-302181645.html
SOURCE Mayer Brown