New Research from Capital One Reveals Critical Factors for Successful Business Transformation in 2019

Survey of executive leaders reveals purpose-driven organizations are achieving transformation through building multi-functional teams, making effective use of technology, fostering a growth mindset and focusing on training

 

PLANO, Texas – Feb. 13, 2018 – New research from Capital One reveals what industry executives believe to be the critical factors for successful business transformation in 2019. These key aspects include being purpose-driven, fostering a growth mindset among employees, using the right technology and implementing more effective organizational structures and ways of working.

This is the second in a series of studies surveying more than 400 U.S. business decision-makers, including business owners, C-suite members and company presidents, on the role of purpose, leadership, technology and training in an organization's ability to transform.

Leaders Double Down on Purpose

        An overwhelming majority of leaders (93%) believe that their company will be more purpose-driven in 2019 compared to 2018, and 90% are confident purpose-driven companies outperform their peers over the long term . Purpose-driven companies define their aspirational reason for existing as something that inspires and provides a call to action for the organization, as well as delivers a benefit to society.

        Executives who rate their transformation in the past six months as "excellent" (73%) are particularly adamant that having a clear purpose is essential to their future success.

"To survive and thrive, leaders must fundamentally reimagine their businesses," said Sanjiv Yajnik, President, Financial Services at Capital One. "The most successful leaders know that a clear purpose is the catalyst for driving transformation. Purpose - made real through impactful coaching, a collaborative culture, empowered employees and integrated technology - enables your entire organization to rise up and create incredible things together for the end customer."

Fostering a Growth Mindset is Necessary

        Nearly all surveyed business leaders (96%) believe that possessing a growth mindset is important in achieving business transformation in 2019. A growth mindset is the belief that employees can develop abilities through continual learning, hard work and perseverance to see failures and challenges as opportunities to improve skills.

        Executives who gave their companies excellent ratings for their ability to evolve within the past six months (85%) are more likely to strongly agree with this view, compared to the 56% who gave their companies lower ratings.

        Additionally, 96% of business leaders overwhelmingly agree  more business-related training leads to a growth mindset for all employees.

        Executives cited the three most effective training programs in developing a growth mindset in employees are digital training to improve technology knowledge (64%), customer experience training (62%) and coaching on how to effectively problem solve and experiment with new solutions, product or ways of working (60%).

        Tools and resources to aid self-learning, such as books, videos and computer-based training, are the methods most often used to deliver training to employees (82%), followed by conferences (60%) and stretch assignments (51%). Stretch assignments involve an employee taking on a larger role within a current role to determine a promotion.

Technology Supports Transformation

        94% of business leaders believe that their employees are successfully using new technology to transform their company.

        The most cited use of technology  to drive transformation by employees includes data analytics/software (65%) and cloud technology (65%), while the least utilized are virtual reality (17%) and blockchain/crypto (28%).

Businesses Are Organizing for Innovation

        Executives cite finding new ways of working (95%) as important in achieving transformation in 2019.

        Successfully transformed businesses most often build multi-functional teams that have strong technical and business capabilities (61%) and implement new technology and digital tools to improve the customer experience (55%).

        Businesses still have work to do, however. Despite the perceived value of collaboration and test-and-learn strategies, less than half (49%) strongly agree their company has a culture that rewards test and learn experimentation and encourages employees to work in different ways (48%).

 

 

For more information, visit http://press.capitalone.com/.

 Methodology

In January 2019, Capital One commissioned Zogby Analytics to conduct an online survey of 408 business decision-makers. Based on a confidence interval of 95 percent, the margin of error is +/- 4.9 percentage points.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $249.8 billion in deposits and $372.5 billion in total assets as of December 31, 2018. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.


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