The role of chief transformation officer (CTO) is often linked with cost-cutting. In this episode, we discuss how this is a misleadingly narrow view and explain why and how CTOs should correct that misconception and redefine the role. Our guests are Kevin Carmody, a senior partner in our Chicago office, AD Bhatia, a partner in our New Jersey office, and Emily Rizzi, an associate partner based in our Pittsburgh office. 

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Meet the newest member of the consumer C-suite: The chief transformation officer
How companies can transform with workers’ insights


Join our LinkedIn community of more than 90,000 members and follow us on X at @McKStrategy. 

Explore our collection of Inside the Strategy Room episode transcripts on McKinsey.com

The role of chief transformation officer (CTO) is often linked with cost-cutting. In this episode, we discuss how this is a misleadingly narrow view and explain why and how CTOs should correct that misconception and redefine the role. Our guests are <a href="https://www.mckinsey.com/our-people/kevin-carmody">Kevin Carmody</a>, a senior partner in our Chicago office, <a href="https://www.mckinsey.com/~/media/mckinsey/email/rethink/2023/08/2023-08-02c.html">AD Bhatia</a>, a partner in our New Jersey office, and Emily Rizzi, an associate partner based in our Pittsburgh office. 
Related insights
<ul>
<li><a href="https://www.mckinsey.com/capabilities/transformation/our-insights/meet-the-newest-member-of-the-consumer-csuite-the-chief-transformation-officer?cid=other-eml-mtg-mip-mck&amp;hlkid=7cc34f0f1b7d40c0a595b7e44b1e0d78&amp;hctky=1926&amp;hdpid=6343684f-ef15-4a20-b4db-7807ba7d90ef">Meet the newest member of the consumer C-suite: The chief transformation officer</a></li>
<li><a href="https://www.mckinsey.com/~/media/mckinsey/email/rethink/2023/08/2023-08-02c.html">How companies can transform with workers’ insights</a> 
Join our <a href="https://www.linkedin.com/showcase/mckinsey-strategy-&amp;-corporate-finance/?viewAsMember=true">LinkedIn community</a> of more than 90,000 members and follow us on X at <a href="https://twitter.com/McKStrategy">@McKStrategy</a>. 
Explore our collection of Inside the Strategy Room <a href="https://www.mckinsey.com/itsr">episode transcripts on McKinsey.com</a> 
</li>
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The world is moving faster, and as upheaval becomes the norm, vast business opportunities will be within the grasp of the extraordinary few.  But it takes bold people and courageous approaches to seize those opportunities and create value.

In each episode of our weekly podcast, we interview the world’s highest-performing CEOs, CFOs, innovators, and McKinsey experts and discuss how they build the courage, clarity, conviction, and cohesion that allow their businesses to win by moving faster than the world around them. 

The world is moving faster, and as upheaval becomes the norm, vast business opportunities will be within the grasp of the extraordinary few. &nbsp;But it takes bold people and courageous approaches to seize those opportunities and create value.
In each episode of our weekly podcast, we interview the world&rsquo;s highest-performing CEOs, CFOs, innovators, and McKinsey experts and discuss how they build the courage, clarity, conviction, and cohesion that allow their businesses to win by moving faster than the world around them.&nbsp;

176. Redefining the chief transformation officer's role

Long-term value creation is foundational to building strong companies and economies, yet many leaders struggle to ensure that well-conceived, well-executed strategies receive full recognition from investors. Senior Partner Ryan Davies and Associate Partner Jacob Marcus join us to discuss how to anticipate investor reactions, assess opportunities to outperform expectations, and embed an investor mindset into decision-making to build greater resilience.

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Global Private Markets Report 2026

Private equity 2026 outlook: Clearer view, tougher terrain

Unlocking full potential: Five practices reshaping PE value creation

Transforming value creation in private equity portfolio companies

The coming wave of business transfers

What every CEO can learn from private equity

The CEO’s Guide to the Investment Galaxy

Long-term value creation is foundational to building strong companies and economies, yet many leaders struggle to ensure that well-conceived, well-executed strategies receive full recognition from investors. Senior Partner&nbsp;<a href="https://www.mckinsey.com/our-people/ryan-davies">Ryan Davies</a>&nbsp;and Associate Partner Jacob Marcus join us to discuss how to anticipate investor reactions, assess opportunities to outperform expectations, and embed an investor mindset into decision-making to build greater resilience.
Related Insights 
<a href="https://www.mckinsey.com/industries/private-capital/our-insights/global-private-markets-report">Global Private Markets Report 2026</a>
<a href="https://omny.fm/shows/inside-the-strategy-room/293-private-equity-2026-outlook-clearer-view-tougher-terrain">Private equity 2026 outlook: Clearer view, tougher terrain</a>
<a href="https://www.mckinsey.com/capabilities/transformation/our-insights/unlocking-full-potential-five-practices-reshaping-pe-value-creation">Unlocking full potential: Five practices reshaping PE value creation</a>
<a href="https://omny.fm/shows/inside-the-strategy-room/306-transforming-value-creation-in-private-equity-portfolio-companies">Transforming value creation in private equity portfolio companies</a>
<a href="https://omny.fm/shows/inside-the-strategy-room/304-the-coming-wave-of-business-transfers">The coming wave of business transfers</a>
<a href="https://omny.fm/shows/inside-the-strategy-room/302-what-every-ceo-can-learn-from-private-equity">What every CEO can learn from private equity</a>
<a href="https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-ceos-can-play-the-long-game-in-a-shortsighted-world">The CEO&rsquo;s Guide to the Investment Galaxy</a>

313. Driving value with an investor mindset

In today’s tougher exit environment, private equity firms are facing longer holding periods, valuation gaps, and increased pressure to return capital. Kai Vollhardt and Jelena Bauer are joined by Christian Habrich and Frederyk Schroeder as they unpack their latest article on how to drive successful exits. They share strategies that top-performing firms use to improve exit outcomes and turn preparation into premium valuations, including how to translate AI potential into a credible value story.

Related Insights

Beating the odds: How private equity firms can improve exit prospects

Global Private Markets Report 2026

Private equity 2026 outlook: Clearer view, tougher terrain

Unlocking full potential: Five practices reshaping PE value creation

Transforming value creation in private equity portfolio companies (podcast)

The coming wave of business transfers (podcast)

What every CEO can learn from private equity (podcast)

 

In today&rsquo;s tougher exit environment, private equity firms are facing longer holding periods, valuation gaps, and&nbsp;increased pressure to return capital. <a href="https://www.mckinsey.com/our-people/kai-vollhardt?cid=cl4c-cml&amp;amp;sid=%7b%7blead.SFDC%20Id:default=CL4C%7d%7d">Kai Vollhardt</a> and <a href="https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fjelena-bauer-10266ba0%2F&amp;data=05%7C02%7CClare_Kitada-SYDN%40external.mckinsey.com%7Cf5ac2d1e73d84e1759e408ded85233ed%7Ccc8936bc93824fff87cb6f55999549e7%7C0%7C0%7C639186044766911165%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=f4ATwjPDyvRsK08OxKIKRsYscAf3o55QsNelnJzNo5w%3D&amp;reserved=0">Jelena Bauer</a>&nbsp;are joined by <a href="https://de.linkedin.com/in/christian-habrich-4480a916b">Christian Habrich</a> and <a href="https://dk.linkedin.com/in/frederyk-schr%C3%B6der-6542a19a">Frederyk Schroeder</a> as they unpack their latest <a href="https://www.mckinsey.com/industries/private-capital/our-insights/beating-the-odds-how-private-equity-firms-can-improve-exit-prospects">article</a> on how to drive successful exits. They share strategies that top-performing firms use&nbsp;to improve exit outcomes and turn preparation into premium valuations, including how to translate AI potential into a credible value story.
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<a href="https://www.mckinsey.com/industries/private-capital/our-insights/beating-the-odds-how-private-equity-firms-can-improve-exit-prospects">Beating the odds: How private equity firms can improve exit prospects</a>
<a href="https://www.mckinsey.com/industries/private-capital/our-insights/global-private-markets-report">Global Private Markets Report 2026</a>
<a href="https://omny.fm/shows/inside-the-strategy-room/293-private-equity-2026-outlook-clearer-view-tougher-terrain">Private equity 2026 outlook: Clearer view, tougher terrain</a>
<a href="https://www.mckinsey.com/capabilities/transformation/our-insights/unlocking-full-potential-five-practices-reshaping-pe-value-creation">Unlocking full potential: Five practices reshaping PE value creation</a>
<a href="https://omny.fm/shows/inside-the-strategy-room/306-transforming-value-creation-in-private-equity-portfolio-companies">Transforming value creation in private equity portfolio companies (podcast)</a>
<a href="https://omny.fm/shows/inside-the-strategy-room/304-the-coming-wave-of-business-transfers">The coming wave of business transfers</a> (podcast)
<a href="https://omny.fm/shows/inside-the-strategy-room/302-what-every-ceo-can-learn-from-private-equity">What every CEO can learn from private equity</a> (podcast)
&nbsp;

312. Improving private equity exit prospects

Discover how market leaders—Walmart, Builders FirstSource, Progressive, and JPMorgan Chase—achieved exceptional growth from 2019 to 2024, outperforming peers by an average of five percentage points in revenue and seven points in profitability. In this episode, Simon Jones, David Schiff , and Kate Siegel discuss their new article on the three critical characteristics that drive sustained profitable business growth: committed investment strategies, diversified growth engines, and systematic technology integration.

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Inspired for business growth: How five companies beat the market

The race takes off in the next big arenas of competition

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Rewired 2.0: How leading companies are (still) winning with AI?

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How innovative companies leverage tech to outperform

Discover how market leaders&mdash;Walmart, Builders FirstSource, Progressive, and JPMorgan Chase&mdash;achieved exceptional growth from 2019 to 2024, outperforming peers by an average of five percentage points in revenue and seven points in profitability. In this episode, <a href="https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fsimonmichaeljones%2F&amp;data=05%7C02%7CClare_Kitada-SYDN%40external.mckinsey.com%7Cc6583fe677fe410ba85008dec7db170c%7Ccc8936bc93824fff87cb6f55999549e7%7C0%7C0%7C639167940992681479%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=Jqg1NSCA%2Fi89soq1MO23jGepbxHZf6fjqD4HaKNqVkI%3D&amp;reserved=0">Simon Jones</a>, <a href="https://www.mckinsey.com/our-people/david-schiff?cid=cl4c-cml&amp;sid=%7b%7blead.SFDC%20Id:default=CL4C%7d%7d">David Schiff</a> , and <a href="https://nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fkatersiegel%2F&amp;data=05%7C02%7CClare_Kitada-SYDN%40external.mckinsey.com%7Cc6583fe677fe410ba85008dec7db170c%7Ccc8936bc93824fff87cb6f55999549e7%7C0%7C0%7C639167940992712178%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=2hY0H6HJC%2FVVbT4ReUwVn%2BdnFTLlzZQ6hrKFBwm7SiQ%3D&amp;reserved=0">Kate Siegel</a>&nbsp;discuss their new <a href="https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/inspired-for-business-growth-how-five-companies-beat-the-market?cid=cl4c-cml&amp;sid=%7b%7blead.SFDC%20Id:default=CL4C%7d%7d">article</a>&nbsp;on the three critical characteristics that drive sustained profitable business growth: committed investment strategies, diversified growth engines, and systematic technology integration.
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<a href="https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/inspired-for-business-growth-how-five-companies-beat-the-market?cid=cl4c-cml&amp;sid=%7b%7blead.SFDC%20Id:default=CL4C%7d%7d">Inspired for business growth: How five companies beat the market</a>
<a href="https://www.mckinsey.com/mgi/our-research/the-race-takes-off-in-the-next-big-arenas-of-competition">The race takes off in the next big arenas of competition</a>
<a href="https://www.mckinsey.com/featured-insights/employment-and-growth/the-granularity-of-growth">The granularity of growth</a>
<a href="https://www.mckinsey.com/featured-insights/themes/rewired-2-point-0-how-leading-companies-are-still-winning-with-ai">Rewired 2.0: How leading companies are (still) winning with AI</a>?
<a href="https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-ten-rules-of-growth">The ten rules of growth</a>
<a href="https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-innovative-companies-leverage-tech-to-outperform">How innovative companies leverage tech to outperform</a>

176. Redefining the chief transformation officer's role

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