In a rapidly evolving business environment, transformation is no longer a choice—it’s an imperative. Yet, as organizations pursue digital initiatives and operational reinventions, a fundamental debate remains: who should own and drive transformational change? Traditionally, the Chief Information Officer (CIO) has been the front-runner, but the increasing complexity and cross-functional impact of transformation efforts are prompting industry leaders to consider alternative approaches, including the appointment of a Chief Transformation Officer (CTO).

The CIO as an Enabler—and More

CIOs have long been seen as crucial enablers of business transformation. Ryan Downing, Vice President and CIO of Enterprise Business Solutions at Principal Financial Group, describes his role as a bridge between technology and business goals. “My teams support enabling capabilities that drive growth and enhance the customer experience. We’re most effective when partnering side by side with business leaders to define outcomes and chart a strategic path forward,” Downing says. In recent projects at Principal, Downing orchestrated initiatives to unify customer experience, urging teams to move beyond traditional organizational structures and embrace modern, scalable architectures aligned with evolving business needs.

This collaborative leadership style reflects broader trends in the marketplace: according to TEKsystems’ State of Digital Transformation Report 2025, 85% of digital transformation leaders cite transformation as a foundational business strategy. However, only 48% of digital initiatives hit or exceed targets, per a 2025 Gartner CIO Survey. Clearly, leadership alone isn’t a panacea—the quality and diversity of that leadership are decisive.

The Transformation Ownership Debate

Given persistent failure rates for transformation projects, organizations are reconsidering whether the CIO should always be at the helm. Ari Lightman, professor at Carnegie Mellon University, highlights several reasons for failed efforts: “Sometimes vision is misaligned with the market, sometimes execution lags, or organizations pursue trends that fail to deliver lasting value.” The TEKsystems report also notes that inadequate change management, data-driven decision-making, and lack of diverse talent are frequent culprits. However, where transformations succeed, a striking 80% involve both IT and business stakeholders from the outset—significantly higher than the 47% found among lagging organizations.

Chief Transformation Officer: A Holistic Solution?

Increasingly, consultants and forward-thinking executives are advocating for a new type of leadership: a cross-functional Chief Transformation Officer (CTO). Dave Borowski, Senior Partner at West Monroe, asserts that “true enterprise transformation must be inherently cross-functional.” He warns that when transformation resides within a single functional domain—be it IT, finance, operations, or marketing—it tends to reflect the biases and goals of that sphere, risking tunnel vision.

Consulting powerhouses like McKinsey & Company echo this perspective, positing that a CTO, as an impartial peer among CXOs, significantly improves success rates: “The CTO role orchestrates transformation across all functions, prioritizing initiatives for enterprise-wide impact,” says McKinsey. Yet, despite its promise, the CTO role remains relatively rare, partly due to its aspirational nature and the challenge of defining cross-functional authority in traditional corporate structures.

The Case for Flexible Leadership

Not all experts believe an entirely new executive role is necessary. Lightman, co-author of the upcoming book Monster Transformation: Conquer Your Digital Fears, Be AI Ready, and Focus on What Matters to Your Organization, argues that context matters. “There’s no universal answer. Leadership should be vision-driven by the CEO, but the best transformation leader depends on culture, strategy, and even individual personalities within the organization,” he says.

Diane Carco, a former CIO and now president of consulting firm Swingtide, agrees. “You need someone with a central enterprise perspective—not a business unit owner—who can break down silos and unite teams behind core business needs,” she explains. For organizations with an adaptable CIO at the helm, this existing role may naturally evolve to encompass transformation leadership. “CIOs bring expertise in complex change and cross-departmental collaboration. If you’re assigning transformation to an existing leader, it makes sense for the CIO,” Carco says—but only if that person maintains a holistic, enterprise-first perspective.

Transformation is a Team Sport

Increasingly, transformation is being recognized as a co-leadership opportunity. Evan Wayne, CIO at Marcus & Millichap, emphasizes the value of joint ownership. “Transformational success required a collaborative, well-coordinated executive team. As CIO, I not only handled technical implementation but also program management, business case development, and change management,” Wayne says, reflecting a new breed of CIOs who are adept at both technology and enterprise strategy.

Similarly, Bala Krishnapillai, CIO of Hitachi Americas, stresses joint leadership: “No one team leads transformation. Business initiates new models and revenue streams, but IT makes execution possible through integrated data and technology innovation.” Increasingly, organizations rely on a dynamic push-pull: sometimes business units lead, with IT in a supporting role; other times, IT takes the lead as the business augments with strategy and support.

“Transformation is everybody’s responsibility.” —Ari Lightman, Carnegie Mellon University

How to Structure Transformation Leadership in 2025 and Beyond

The modern consensus is clear: successful transformation requires multi-domain leadership, regardless of which position holds the title. According to West Monroe’s Borowski, “Even with a Chief Transformation Officer, CIOs must play a co-pilot’s role. Today’s transformations are tightly woven with technological improvements, yet must be driven by enterprise-wide objectives, not just IT advancement.”

As organizations navigate unprecedented disruption powered by AI, cloud computing, and evolving regulatory demands, the stakes for effective transformation leadership continue to rise. According to the IDC, global digital transformation spending is set to surpass $3.4 trillion in 2026, underscoring just how central transformation has become to strategic growth and survival. The biggest differentiator for success is no longer just technology—it’s leadership that bridges silos and unites teams behind shared business value.

Key Takeaways for CEOs and Boards

• Transformation success is a team sport: Collaboration between business and IT leaders is non-negotiable.
• Role flexibility is crucial: The best transformation leader may be a CIO, CTO, CEO—or a rotating cross-functional leader—depending on context.
• Unity over function: Focus on enterprise-wide outcomes, resisting the urge to make transformation a function’s “pet project.”
• Change management is foundational: Invest in data-driven decision-making, agile execution, and talent development from day one.

In summary, whether transformation is driven by a CIO, a CTO, or a dynamic team, the ultimate driver must possess both business acumen and the ability to orchestrate change across all organizational domains. As Downing aptly puts it, “Transformation succeeds when its leaders challenge boundaries and unite everyone behind a common vision.” For competitive organizations in 2025 and beyond, finding—or developing—that leadership is the first step toward true transformation.