To stay ahead in today’s business landscape – which thrives on 24/7 connectivity, cross-border collaboration and prolific automation - digital transformation is essential.
However, successfully navigating this constantly shifting minefield requires someone very special at the helm. That person must possess a broad depth of skills that go way beyond technical expertise alone.
So, just what skills are needed to drive a successful digital transformation project?
Skill 1: Digital Literacy
While technical expertise is crucial, a broader understanding of digital literacy is equally important for driving a successful digital transformation initiative.
According to McKinsey, 70% of all digital transformation projects never achieve their goals. Of course, every business is different and there are plenty of reasons why some initiatives fail, but having a leader that doesn’t embrace technology is a common pitfall.
Many of today’s leaders know that technology is the way forward. But there’s still a huge knowledge gap between understanding the importance of it and truly embracing it to improve business practices.
Leaders therefore don’t just need to be comfortable with digital tools. They also need to have a good understanding of how those technologies impact various business functions. This insight is crucial if the transformation leader is to successfully bridge the gap between the IT personnel charged with implementing the new digital tools and the non-technical teams on the frontline who can provide vital user input and feedback.
Skill 2: Data-Driven Decision Making
Data is the lifeblood of informed decision-making in the digital age. There’s no doubt that those leading digital transformation must be adept at harnessing data and comfortable with interpreting and acting on analytics. This surety is the only way that teams can be driven forwards in the right direction and the right decisions taken at each unexpected juncture.
In a 2019 Deloitte survey of U.S. executives, 63% of those surveyed confessed that their companies were not analytics-driven, while 67% admitted to not feeling comfortable accessing and using data. Considering that we live in an age where an incredible amount of data is available at our fingertips, it’s surprising to think that many businesses are not leveraging this powerful tool.
It’s important for leaders to not only encourage their employees to collect and process data, but also guide them on how to interpret that insight for more informed decision making.
A data-driven approach ensures that organizations remain agile and responsive to changing market dynamics. From understanding changing consumer sentiment to allowing for greater degrees of personalization, better managing stock levels to pinpointing supply issues, data can offer a competitive edge across every business unit.
Skill 3: A Strategic Vision
Behind every successful digital transformation is a strategic vision. This vision takes stock of where the business sits now, and where it needs to be to achieve its overarching objectives.
To build out that vision, leaders must possess a keen understanding of emerging technologies, understand market trends, and be keyed into consumer behavior. This breadth of knowledge and capability is intrinsic to crafting a realistic, achievable roadmap that not only leverages available digital tools but also capitalizes on the transformative potential of these technologies.
It’s hard to look into the future and take a leap of faith with technologies that may not have gone mainstream just yet, but a visionary leader has confidence in their decision making. They’re clear on where change needs to happen, have an eye for emerging opportunities and aren’t afraid to take calculated risks.
A strategic vision empowers organizations to anticipate challenges, identify openings, and proactively adapt to a dynamic digital landscape – even when it seems like that landscape is constantly changing.
Skill 4: Leadership and Change Management
Digital transformation is inherently disruptive, so strong leadership and change management skills are imperative. Successful, inspirational leaders nurture confidence, communicate effectively, and foster a culture of innovation.
As we’ve already mentioned, not all digital transformation efforts are successful. But it should be noted that many of the issues which derail digital transformation projects can be solved by a leader experienced in change management.
According to Forrester’s Business And Technology Services Survey 2022, resistance to change is the single biggest roadblock on the path to digital transformation. It’s up to leaders to manage this resistance and find ways to get everyone on board.
Successful digital transformation is not just about implementing new technologies. It requires a fundamental shift in mindset and behavior throughout the organization from the C-suite, down. Leaders capable of building this cultural transformation are essential to driving sustainable change and ensuring the entire workforce is aligned with the new digital vision.
Skill 5: Agile Thinking and Methodologies
The traditional waterfall approach to project management doesn’t cut it when it comes to the fast-paced and iterative nature of digital transformation initiatives.
A much more agile way of thinking is required. Agile methodologies provide a framework for adaptive planning, continuous improvement, and flexibility in the face of large-scale business transformation.
It’s important that any digital transformation head is well-versed in Agile practices. This empowers teams to respond swiftly to changes and deliver value incrementally. Digital transformation isn’t simply about bringing in new technology and expecting teams to adapt. It’s an iterative process that needs total buy-in to be successful. Those with an Agile mindset will champion the fact that change is an ongoing process, and there will never be a static ‘endpoint’.
Skill 6: Customer-Centric Mindset
Digital transformation is ultimately a journey embarked upon to enhance the customer experience. Regardless of industry or target demographic, the customer sits in the very center. They are the guiding light which shines brightly throughout every successful digital transformation process.
For a transformation to achieve its aims, leaders will need to cultivate a customer-centric mindset which cascades through every level of the organization. Each digital initiative must be aligned with the needs and expectations of the end-user. Every time a decision is made, or a new technology is introduced, one question must be asked: “Is this going to benefit the customer, and are they going to appreciate this change?”
These decisions don’t just require a sound understanding of customer pain points and preferences. They should also be taken with a view to leveraging technology to create personalized and seamless interactions across all touchpoints.
Closing Thoughts
From clear strategic vision and leadership qualities to digital literacy and agile thinking, the skills required from leaders during digital transformation are multifaceted and dynamic.
As businesses continue to adapt to the new digital era, the leaders who cultivate these skills will be the ones best placed to lead their organizations to success.
