Five Deadly Digital Transformation Sins
Some of our previous conversations around Digital Transformation (DX) have been around the probability of its success in your organization, where it should be led from and so on. We push collaboration, strategic alignment and leadership as the sine qua non, in our DX strategy engagements too. What we are also seeing, as we interact with industries and companies, is a series of newly minted digital leaders running these programs and journeys in traditional IT ways and ending up causing, at the least, choking of investments.
From our experience, below are the top seven five cardinal leadership mistakes (in no particular order) in the DX journey, and possible alternatives.
Mistake 1: Treating DX like an IT project
… and thus focusing on deliverables and outputs. Traditional SLA, KPI type of metrics do not exhibit the value of this journey or its progress. Especially because it is a journey and it needs clear business direction.
Alterative: Focus on outcomes. Successful leaders would use experience related KPIs instead, during the journey. These KPIs will over time start impacting larger business outcomes. This implyies the technology enablers (CIO’s office) partnering closely with business. We must understand that DX isn’t just another layer on top of BAU. It is a different way of working, emanating from a different mindset. But, right at the start, it also means creating a strategic roadmap, often with the help of an external party.
Mistake 2: Assuming financial support for an under-estimated effort.
Of course, there is pressure to enable the DX, but digital leaders still have to get themselves an operating budget, drive efficiency and plough cost savings back into the program. The investment for an all out DX is large, and over a sustained period of time. Under-estimation, and under-communication will result in overruns, or short change the transformation itself.
Alternative: A financial business case, which keeps getting revisited along with the overall strategy is required. This not only secures the funding, but also sustains confidence in the program avoiding sudden chokes on investment. This choke leads to just completing IT modernization and patches of point solutions which result in an integration nightmare.
Mistake 3: Leadership spaghetti.
There are various types, we have seen. CDO leading and owning the entire effort with even organizational change management becoming her responsibility. The overall ownership with the CIO /CTO and various other permutations. Or even a top down, driver style of leadership. All this results in burn-outs, frustration and attrition.
Alternative: What one must understand that this journey entails a large organizational change. This has to be servant leadership at play, leadership which is by example and one that enables. A type of leadership which doesn’t blame for an honest mistake but rewards initiative and innovation. Ownership however has to be right at the top, at the CEO level. Not with the CDO, not with the CIO / CTO.
Mistake 4: Lack of formal ownership
Being owned by the CEO is appropriate. Creating the high level strategy and roadmap is necessary. But, the CEO, CIO or the CDO just delegating downwards will lead to siloed efforts, waste of time and resources.
Alternative: This journey needs clear leaders responsible for specific outcomes, core collaborative teams and common governance. This isn’t an individual player game.
Mistake 5: Not enough focus on managing change.
Not focusing on the people aspect, or infrequent or inadequate communication will create roadblocks. People need to know where they are going, what they need to do and how far they have reached.
Alternative: Run an organizational change management program from the start. A part of this program will be to create open and effective two-way communication mechanisms. This will communicate vision, progress but also have feedback loops.
These five should find place in any organization though there might be many more areas, specific to an organization.
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