The Hidden Cost of Inattention: How Boards Can Stop Transformation Value Leakage

Boston Consulting Group (Sep 29, 2025) "The Hidden Cost of Inattention: How Boards Can Stop Transformation Value Leakage" defines transformation value leakage as the gap between projected and realised value and quantifies it: discretionary cost increases, shifts in demand or product mix, delays in operational initiatives, or unplanned reinvestments can erode as much as 10% to 20% of anticipated gains. The article prescribes five practical board actions; the first is establishing clear visibility into both gross and net value targets — the total value a programme aims to generate from major initiatives versus what reaches the bottom line after costs, delays and other leakage. Pointed message for SEA mid-market boards approving multi-year cost-out programmes.