How the Right CEO Powers Tech Transformation

To stay ahead, businesses need to tap into data and embrace new technologies. It’s not just about adopting new tools—it requires a fundamental reboot of how an organization operates. The surge in computing power and data, new ways of working and rapid strides in artificial intelligence (AI), means companies need to adapt faster than ever before.

With business facing constant disruption, executives are under pressure to not only drive performance but also lead their organizations through major transformation. So, how much does having the right CEO influence both technological progress and financial success? A new Korn Ferry study reveals just how critical a stronger leader can be.

The CEO’s Impact on Technological Transformation

Technological transformation affects every corner of a company—its strategy, structure, processes, culture, and how people work. Without the right skills, progress can stall. And without a strong CEO, successful transformation is unlikely.

"A strong CEO champions technological advancement and acts as the catalyst for sustained progress,” says Jane Edison Stevenson, Global Vice Chair of Korn Ferry’s Board and CEO Services. “They are often the deciding factor in whether a company can adapt to change and thrive in a competitive landscape.”

Our latest outcomes analysis shows that high-performing CEOs excel at technological transformation. Companies led by CEOs who performed well in Korn Ferry’s integrated assessments saw a significant uptick in technological adoption following CEO succession. On the other hand, those led by other CEOs made little progress, with the technology adoption gap widening over time.

But it’s not just about getting the latest technologies in place—it’s about making transformation work for the bottom line. We looked at 59 CEOs who completed our assessments and later took on public company roles and found that those with higher overall assessment results led their companies to leverage technology investments more effectively. What’s more, they saw an 8.7% annual revenue growth within four years of succession, compared to just 3.2% for those with lower scores, according to our findings.

In other words, better adoption of technology is associated with stronger financial results. "Companies that embrace technology under strong leadership not only keep pace with change but also unlock significant revenue potential,” says Stu Crandell, Global Head of CEO Assessment at Korn Ferry.

What a Transformative CEO Looks Like

Our research also identified five key leadership competencies linked to successful technology adoption, showing that a diverse skill set helps CEOs drive transformation more effectively. Although the approach may vary, CEOs who successfully transform their companies share these common qualities:

1. Strategic Thinking: Effective CEOs who are strong in strategic thinking balance immediate needs with long-term goals.
2. Builds Networks: Change isn’t a solo effort. CEOs who excel at networking and aligning with others are more successful in driving transformation.
3. Communicates Effectively: CEOs who can effectively share their vision and motivate their teams and other stakeholders see better technology adoption and create a culture of trust and openness.
4. Courage: Successful CEOs have the courage to challenge the status quo, make bold moves, and manage pushback to keep things moving forward.
5. Being Resilient: CEOs who create a resilient and adaptable culture are better at handling rapid changes and unexpected challenges.

Some competencies, such as Builds Networks and Communicates Effectively, are also essential for great organizational performance and reduced CEO turnover, as shown in our earlier outcomes studies. Experts suggest CEOs who embody these competencies are better at steering their companies through change and achieving sustainable growth. "Transformative CEOs are not just leaders,” Stevenson says. “They are visionaries who drive their organizations towards a brighter, tech-enabled future."

Hiring the Right CEOs

Our recent outcomes reports, based on the financial performance of over 100 publicly traded companies and leadership changes in more than 500 firms, confirm that a thorough, scientific assessment process increases the likelihood of finding and developing the right CEO. This new research reinforces this earlier finding: using holistic, scientific assessments helps companies hire or develop highly competent CEOs to lead the business forward. With Korn Ferry’s assessments, boards and organizations can identify the CEOs who can buck the CEO turnover trend, stack the odds of achieving better financial outcomes, and lead successful technological transformation.

"Investing in a rigorous, scientific assessment process to select CEOs is not just about filling a position,” says Evelyn Orr, Head of Korn Ferry’s CEO and Executive Assessment practice in North America. “It's about securing the strategic direction that leads to transformative growth and enduring success."

To learn more, read about Korn Ferry’s Board & CEO Services.