Leadership in a transforming world
In today’s world, digital transformation has become a vital part of any organisation’s growth strategy. However, the transformation process can be complex, involving not only the integration of various technologies, processes, and systems, but also impacting the organisation’s culture, workforce, and customer experience.
Digital transformation often involves a reinvention of the business, with different parts of the organisation working together in new ways to develop completely different capabilities. It’s not surprising therefore that so many digital transformation projects fail.
So, what can help drive the success of a digital transformation within an organisation? FTI Consulting’s new report, ‘The Power of Communications: Unlocking Growth Through Digital Transformation’ points to a number of factors that can increase the chance of a digital transformation succeeding, based on a survey of n=600 business leaders in large companies across the UK, France and Germany.
Digital transformation is not a technology challenge, but a leadership one
With so much at stake, the role of the CEO in digital transformation is critical. They need to set the transformation agenda to inspire and motivate the whole organisation to see the transformative change that is possible. If it done right, it should act as the rallying cry for the whole organisation to get behind whilst clearly communicating the need for change, the ambition, and the benefits of transformation.
However, CEOs cannot do it alone. FTI Consulting’s research found that effective communication to key stakeholders throughout the digital transformation underpinned its success. Nearly half (48%) of businesses that have undergone a successful digital transformation said that it is necessary to communicate with stakeholders throughout, compared to 32% of those that had an unsuccessful digital transformation. This is because a CEOs vision of the future should act as a top-down roadmap of the transformation process that brings the leadership team onto the same page, so they have the same set of priorities and belief that the transformation will deliver the promised value.
CEOs need to lead from the front and build a high-trust environment
Our research also found that the success of a digital transformation is influenced by the CEO’s ability to create a high-trust environment. Digital transformation is best achieved when trust is built into the organisation as employees are much more likely to embrace change and take ownership of the transformation process. We found that the companies with leaders who communicated clearly and regularly, shared the progress made, the challenges faced, and the wins achieved to people at all levels within the organisation were much more likely to succeed. 65% of companies who were successful in their digital transformation claimed to have communicated with employees ‘throughout the process’ (65%). This was much less pronounced for companies that were unsuccessful with these efforts (44%), where communication tended to be more focused at the completion point only.
Businesses who have successfully managed a digital transformation are 2x more likely to believe that the CEO creating a high trust environment was essential for driving the digital transformation
CEOs need to focus on the long term reward
In addition, CEOs and senior leaders need to see digital transformation not as a one-off project, but an ongoing process that requires continuous improvement and adaptation. We found that successful CEOs who have led digital transformation projects are not risk-takers, but meticulous planners focused on long-term reward. This is not surprising as digital transformations involve large-scale investment and change. To succeed, leaders needs to be persistent and stay the course even when faced with setbacks in order to build ongoing trust and confidence across the organisation.
Businesses who have managed a succcessful digital transformation
Businesses who have been unsuccessful in managing a digital transformation
Setting the foundation for success
It is clear that the companies that are well-positioned to succeed and thrive in a digital transformation will be those where the CEO plays a central role. Here at FTI Consulting our team are experts in building Digital Transformation roadmaps for organisations and creating tailored communication strategies that ensure a CEO and its senior leaders can be champions for change and inspire confidence throughout a digital transformation. Please get in touch if you would like to learn more about how we can support your organisation and its leaders on their digital transformation journey.
Research Methodology
The research was conducted online from 20th to 27th January 2023 by FTI Consulting’s Strategy Consulting and Research team and surveyed n=600 C-suite and senior managers at large companies across the United Kingdom, France and Germany. Respondents in our sample employ a sum in excess of 7 million workers, and have a combined annual revenue of over £/€1 trillion globally.
For more information, please contact [email protected]
Source: “The Power of Communication: Unlocking Growth though Digital Transformation” – FTI Consulting, April 2023.
The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.
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