1 00:00:02,160 --> 00:00:03,320 To identify the key factors 2 00:00:03,320 --> 00:00:04,640 that drive success 3 00:00:04,640 --> 00:00:06,120 in a digital transformation, 4 00:00:06,120 --> 00:00:07,560 BCG recently surveyed 5 00:00:07,560 --> 00:00:09,800 over 800 senior executives globally 6 00:00:09,800 --> 00:00:11,400 across all major industries, 7 00:00:11,400 --> 00:00:13,920 and studied more than 70 digital transformations 8 00:00:13,920 --> 00:00:15,320 supported by BCG. 9 00:00:15,640 --> 00:00:17,600 The study showed that only 30% 10 00:00:17,600 --> 00:00:19,320 of digital transformation efforts 11 00:00:19,320 --> 00:00:20,360 achieved success. 12 00:00:20,560 --> 00:00:22,880 However, there are six key factors that, 13 00:00:22,880 --> 00:00:24,320 if addressed adequately, 14 00:00:24,320 --> 00:00:25,840 can flip the odds of success 15 00:00:25,840 --> 00:00:27,400 in a digital transformation 16 00:00:27,400 --> 00:00:29,000 from 30% to 80%. 17 00:00:29,920 --> 00:00:31,560 One of these six success factors 18 00:00:31,560 --> 00:00:33,840 is effective monitoring of progress 19 00:00:33,840 --> 00:00:35,520 towards defined outcomes. 20 00:00:36,240 --> 00:00:38,600 BCG research reveals that companies 21 00:00:38,600 --> 00:00:40,520 that track progress against clear goals 22 00:00:40,520 --> 00:00:42,440 are over 70% more likely 23 00:00:42,440 --> 00:00:44,720 to succeed in their digital transformation efforts 24 00:00:44,720 --> 00:00:46,200 than those that do not. 25 00:00:46,880 --> 00:00:50,120 Quantifying the expected value of transformation outcomes 26 00:00:50,120 --> 00:00:52,400 is the crucial first step for ensuring 27 00:00:52,400 --> 00:00:54,920 the effort is targeting areas of real value. 28 00:00:55,680 --> 00:00:57,840 Tracking progress is the next step, 29 00:00:57,840 --> 00:00:59,920 and its importance cannot be overstated. 30 00:01:00,080 --> 00:01:03,360 A staggering 75% of successful transformations 31 00:01:03,360 --> 00:01:04,760 have effective monitoring, 32 00:01:04,760 --> 00:01:06,080 which allows for about 50% 33 00:01:06,080 --> 00:01:09,360 improvement in dynamic adjustment of financing 34 00:01:09,360 --> 00:01:11,120 throughout the transformation. 35 00:01:11,640 --> 00:01:13,280 Our research also shows 36 00:01:13,280 --> 00:01:15,480 that having a strong central entity, 37 00:01:15,480 --> 00:01:17,600 such as a Transformation Management Office, 38 00:01:17,600 --> 00:01:20,320 improves monitoring by almost 30%. 39 00:01:20,320 --> 00:01:21,440 But what else does it take 40 00:01:21,440 --> 00:01:23,240 to make monitoring effective? 41 00:01:23,240 --> 00:01:24,920 Based on our empirical research, 42 00:01:24,920 --> 00:01:26,960 we have developed a set of Yes/No questions 43 00:01:26,960 --> 00:01:30,400 that define the key drivers behind effective monitoring 44 00:01:30,400 --> 00:01:31,640 and can help you assess 45 00:01:31,640 --> 00:01:32,760 what your organization 46 00:01:32,760 --> 00:01:34,160 already has in place. 47 00:01:34,160 --> 00:01:35,400 These key drivers are: 48 00:01:36,560 --> 00:01:37,920 having a trusted reporting 49 00:01:37,920 --> 00:01:39,920 entity with a clear activist mandate, 50 00:01:40,480 --> 00:01:42,720 metrics linked to the strategic intent, 51 00:01:43,280 --> 00:01:45,000 accountability for delivery, 52 00:01:45,000 --> 00:01:47,520 and a single source of truth for data. 53 00:01:48,360 --> 00:01:50,400 And BCG has a structured approach 54 00:01:50,720 --> 00:01:51,520 to help you answer 55 00:01:51,520 --> 00:01:54,560 "Yes" to these defining questions. 56 00:01:54,560 --> 00:01:55,400 There are a few other 57 00:01:55,400 --> 00:01:57,400 considerations to keep in mind 58 00:01:57,400 --> 00:01:58,880 regarding progress monitoring 59 00:01:58,880 --> 00:02:00,280 as you proceed with a digital 60 00:02:00,280 --> 00:02:01,880 transformation effort: 61 00:02:01,880 --> 00:02:03,880 Set up your initiatives for success. 62 00:02:03,880 --> 00:02:05,720 Ensure that initiatives are specific enough 63 00:02:05,720 --> 00:02:07,600 to assign and track owners, 64 00:02:07,600 --> 00:02:09,240 and that they have clear business cases 65 00:02:09,240 --> 00:02:10,560 with a solid understanding 66 00:02:10,560 --> 00:02:11,760 of the starting point 67 00:02:11,760 --> 00:02:12,640 aligned with all 68 00:02:12,640 --> 00:02:14,240 relevant stakeholders. 69 00:02:14,240 --> 00:02:16,520 Minimize the burden on the organization. 70 00:02:16,520 --> 00:02:18,320 Be simple in terms of what you track, 71 00:02:18,320 --> 00:02:19,240 and where possible, 72 00:02:19,240 --> 00:02:20,960 automate the monitoring process. 73 00:02:20,960 --> 00:02:22,760 A simple process that minimizes 74 00:02:22,760 --> 00:02:24,080 tracking effort and gets it done 75 00:02:24,080 --> 00:02:26,080 is better than the perfect one that doesn't. 76 00:02:26,400 --> 00:02:27,800 Empower the data owners. 77 00:02:28,000 --> 00:02:29,880 Initiative owners must own 78 00:02:29,880 --> 00:02:31,760 all information and actively call out 79 00:02:31,760 --> 00:02:33,960 impediments to reaching goals. 80 00:02:33,960 --> 00:02:35,840 Focus on resolving issues. 81 00:02:35,840 --> 00:02:37,680 Tracking is a means for pushing 82 00:02:37,680 --> 00:02:39,000 the transformation forward. 83 00:02:39,000 --> 00:02:40,600 Ensure there is full transparency 84 00:02:40,600 --> 00:02:41,720 on what needs to be fixed, 85 00:02:41,720 --> 00:02:44,440 and view flagging of roadblocks as requests for help, 86 00:02:44,440 --> 00:02:46,040 not causes for reprimand. 87 00:02:46,560 --> 00:02:47,920 Be hypervigilant. 88 00:02:47,920 --> 00:02:50,440 Value monitoring is a game of stamina. 89 00:02:50,440 --> 00:02:51,640 Be strict about following 90 00:02:51,640 --> 00:02:52,760 the tracking processes 91 00:02:52,760 --> 00:02:54,560 and keep leadership attention on them, 92 00:02:54,560 --> 00:02:55,880 especially when facing 93 00:02:55,880 --> 00:02:57,480 early complications. 94 00:02:57,480 --> 00:02:59,480 As one of our senior clients puts it: