Almost every company wants to transform in some way. Some companies call it digital transformation, others call it digital evolution, others call it, simply, change. But getting there requires a well thought out digital strategy and executive leadership alignment including CEOs and their boards.
How a company’s top executives approach, manage and measure a company’s transformation has incredibly powerful repercussions on how the entire company transforms today and is prepared to respond to future business demands.
Ideally, CEOs are the lead evangelists in driving their companies’ transformations by effectively developing strategies as well as communicating the plan, vision and key priorities with data-driven insights.
Here are four strategic ways CEOs can drive digital transformation in their companies and become successful, visionary leaders who embrace change rather than fear it.
Define what digital transformation means
Not many leaders are clear on what constitutes the totality of digital transformation, let alone how to achieve meaningful ROI and business impact.
First things first: digital transformation is far more than simply updating a website, making an offline process online or reinventing stakeholder experiences. It’s the holistic transformation of an organization from the inside out and a rethinking of the entire value chain via investments in sophisticated digital capabilities, sometimes at the expense of a company’s previously successful business models.
Transforming your business is as much about people—training, communication and alignment—as it is about technology.
In fact, less than 10% of global executives surveyed across various industries were able to accurately define the totality of digital transformation.
When your viewpoint of digital transformation is limited, the transformation itself will also be limited. Remember: effective and impactful transformations are holistic and comprehensive.
Proceed to the nearest cloud
Transformational leaders across industries are aggressively adopting cloud technology.
Cloud technology enables companies to redefine their value propositions and deliver new services and applications at an accelerated pace, making it an essential part of any digital transformation strategy.
CEOs (and CFOs) need to reconsider their traditional enterprise-wide ROI evaluation models with models that are built on rapid migrations to the cloud.
Remember: faster iterations mean faster innovation and faster evolution—hence, faster transformation. But it won’t happen without some commitment and investment.
Prioritize R&D
According to Trasers data, 90% of R&D leaders say their CEOs do not fully understand or embrace the urgency of digital transformations taking place in their industry.
True digital transformations occur through a reinvention of the value chain from the inside out, which includes the entire product and service portfolio.
Most of the CEOs surveyed have some understanding of the importance of embracing digital transformation at the R&D level. However, they are not taking the actions necessary in a timely manner.
CEOs absolutely must embrace digital change at the product level by supporting and prioritizing the needs of their R&D leaders.
Be the digital transformational leader your company deserves
The question to ask yourself is: are you a CEO who chooses to ignore the data and believes the current path will continue to deliver successful outcomes? Or are you a leader who trusts the data and understands what digital transformation means, embraces the cloud and prioritizes support of R&D?
For digital transformations to succeed a CEO must be:
The visionary: envisioning and articulating a viable, relevant and engaging customer-centric value proposition that focuses on core competencies while combining current and new ways of thinking.
The role model: embracing and championing the “transformation = growth” mindset.
The architect: focusing leadership attention and allocating financial resources on evolving business transformation priorities.
The catalyst: igniting momentum within the transformation journey and leading with actions that bring credibility and visibility to the transformation initiatives.
The enforcer: monitoring and measuring progress, reporting on qualitative metrics and ensuring accountability throughout the enterprise of transformation initiatives.
The evangelist: inspiring and motivating employees and key stakeholders throughout the organization, as well as the board of directors, to embrace change.
Digital transformation is no small task. But then, nobody ever became a CEO to go after small things. When all is said and done, the journey of transformation begins with the captain of the ship.
We welcome your feedback and comments on how CEOs drive digital transformation.
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