To identify the key factors
that drive success
in a digital transformation,
BCG recently surveyed
over 800 senior executives globally
across all major industries,
and studied more than 70 digital transformations
supported by BCG.
The study showed that only 30%
of digital transformation efforts
achieved success.
However, there are six key factors that,
if addressed adequately,
can flip the odds of success
in a digital transformation
from 30% to 80%.
One of these six success factors
is effective monitoring of progress
towards defined outcomes.
BCG research reveals that companies
that track progress against clear goals
are over 70% more likely
to succeed in their digital transformation efforts
than those that do not.
Quantifying the expected value of transformation outcomes
is the crucial first step for ensuring
the effort is targeting areas of real value.
Tracking progress is the next step,
and its importance cannot be overstated.
A staggering 75% of successful transformations
have effective monitoring,
which allows for about 50%
improvement in dynamic adjustment of financing
throughout the transformation.
Our research also shows
that having a strong central entity,
such as a Transformation Management Office,
improves monitoring by almost 30%.
But what else does it take
to make monitoring effective?
Based on our empirical research,
we have developed a set of Yes/No questions
that define the key drivers behind effective monitoring
and can help you assess
what your organization
already has in place.
These key drivers are:
having a trusted reporting
entity with a clear activist mandate,
metrics linked to the strategic intent,
accountability for delivery,
and a single source of truth for data.
And BCG has a structured approach
to help you answer
"Yes" to these defining questions.
There are a few other
considerations to keep in mind
regarding progress monitoring
as you proceed with a digital
transformation effort:
Set up your initiatives for success.
Ensure that initiatives are specific enough
to assign and track owners,
and that they have clear business cases
with a solid understanding
of the starting point
aligned with all
relevant stakeholders.
Minimize the burden on the organization.
Be simple in terms of what you track,
and where possible,
automate the monitoring process.
A simple process that minimizes
tracking effort and gets it done
is better than the perfect one that doesn't.
Empower the data owners.
Initiative owners must own
all information and actively call out
impediments to reaching goals.
Focus on resolving issues.
Tracking is a means for pushing
the transformation forward.
Ensure there is full transparency
on what needs to be fixed,
and view flagging of roadblocks as requests for help,
not causes for reprimand.
Be hypervigilant.
Value monitoring is a game of stamina.
Be strict about following
the tracking processes
and keep leadership attention on them,
especially when facing
early complications.
As one of our senior clients puts it: