1 00:00:25,440 --> 00:00:26,800 Our research shows that 2 00:00:26,800 --> 00:00:28,840 one of the six key factors 3 00:00:28,840 --> 00:00:30,560 that can flip the odds of success 4 00:00:30,560 --> 00:00:32,440 for digital transformations 5 00:00:32,440 --> 00:00:35,200 from 30% to 80% 6 00:00:35,200 --> 00:00:37,720 is having a strong leadership commitment 7 00:00:37,720 --> 00:00:39,280 from the CEO 8 00:00:39,440 --> 00:00:41,920 all the way through to middle management. 9 00:00:42,080 --> 00:00:44,320 BCG research also reveals that 10 00:00:44,320 --> 00:00:46,000 companies with a leadership commitment 11 00:00:46,000 --> 00:00:47,960 from the CEO down through middle management 12 00:00:48,400 --> 00:00:50,160 are 65% more likely 13 00:00:50,160 --> 00:00:52,600 to succeed in their digital transformations 14 00:00:52,880 --> 00:00:54,680 than those without such a commitment. 15 00:00:55,400 --> 00:00:56,600 Companies that met 16 00:00:56,600 --> 00:00:58,040 or exceeded their targets 17 00:00:58,040 --> 00:01:00,000 and created sustainable change 18 00:01:00,000 --> 00:01:01,920 had their CEOs checking in 19 00:01:02,040 --> 00:01:05,280 at least quarterly to track progress and steer the effort. 20 00:01:05,320 --> 00:01:08,040 Over 90% of these companies 21 00:01:08,040 --> 00:01:10,840 had digital transformation on the CEO’s 22 00:01:10,840 --> 00:01:12,680 or the Executive Committee’s agenda— 23 00:01:12,800 --> 00:01:14,840 a staggering 50% more 24 00:01:14,840 --> 00:01:16,640 than companies that were less successful 25 00:01:16,640 --> 00:01:18,080 or unsuccessful. 26 00:01:18,760 --> 00:01:20,840 In our discussions with executives 27 00:01:20,840 --> 00:01:23,120 who led successful digital transformations, 28 00:01:23,120 --> 00:01:25,280 we also learned about how they engaged 29 00:01:25,280 --> 00:01:26,480 the frozen middle. 30 00:01:26,760 --> 00:01:28,400 This refers to middle managers 31 00:01:28,400 --> 00:01:31,120 who may not buy into the transformation right away 32 00:01:31,120 --> 00:01:33,160 because their incentives are not aligned 33 00:01:33,160 --> 00:01:35,400 with the transformation goals, for example. 34 00:01:35,680 --> 00:01:38,120 So, what makes leadership committed? 35 00:01:38,120 --> 00:01:40,200 And middle management engaged? 36 00:01:40,200 --> 00:01:42,640 Based on our empirical research, 37 00:01:42,640 --> 00:01:45,040 we have developed a set of Yes/ No questions 38 00:01:45,240 --> 00:01:46,160 to help you assess 39 00:01:46,160 --> 00:01:47,760 whether your organization 40 00:01:47,760 --> 00:01:49,000 can adequately address 41 00:01:49,000 --> 00:01:50,080 the leadership factor. 42 00:01:51,320 --> 00:01:52,200 And BCG 43 00:01:52,200 --> 00:01:53,400 has a structured approach 44 00:01:53,400 --> 00:01:56,160 to help you answer Yes to these defining questions 45 00:01:56,160 --> 00:01:58,800 by getting visible commitment from your CEO 46 00:01:58,800 --> 00:02:00,280 and other key executives, 47 00:02:00,280 --> 00:02:02,400 and engaging middle management. 48 00:02:02,840 --> 00:02:04,600 There are a few other considerations 49 00:02:04,600 --> 00:02:05,440 to keep in mind 50 00:02:05,440 --> 00:02:07,920 as you progress with your digital transformation effort: 51 00:02:08,760 --> 00:02:09,560 Purpose 52 00:02:09,560 --> 00:02:10,920 is what motivates people. 53 00:02:11,560 --> 00:02:12,960 Your company’s purpose 54 00:02:12,960 --> 00:02:15,960 is the North Star that inspires true commitment 55 00:02:16,080 --> 00:02:18,480 and gives employees much more than a paycheck. 56 00:02:19,160 --> 00:02:20,680 Consistent messaging 57 00:02:20,680 --> 00:02:22,080 and actions are key. 58 00:02:22,200 --> 00:02:23,160 Having leaders 59 00:02:23,160 --> 00:02:24,320 speak the same language 60 00:02:24,320 --> 00:02:26,000 to describe the transformation 61 00:02:26,240 --> 00:02:26,960 as well as 62 00:02:26,960 --> 00:02:28,080 act on what they say 63 00:02:28,080 --> 00:02:29,960 creates a clear vision 64 00:02:29,960 --> 00:02:31,040 of the future 65 00:02:31,040 --> 00:02:32,320 and sets the right example. 66 00:02:33,200 --> 00:02:35,120 Leaders must also rethink 67 00:02:35,120 --> 00:02:35,960 how to engage 68 00:02:35,960 --> 00:02:37,320 and create excitement 69 00:02:37,320 --> 00:02:38,640 about the transformation. 70 00:02:38,640 --> 00:02:40,520 They need to embrace large-scale 71 00:02:40,520 --> 00:02:42,800 empowering rather than traditional 72 00:02:42,800 --> 00:02:44,400 command-and-control models. 73 00:02:45,040 --> 00:02:48,040 Leaders must demonstrate compassion and care. 74 00:02:48,240 --> 00:02:49,680 Because layoffs, 75 00:02:49,680 --> 00:02:50,320 redeployments, 76 00:02:50,320 --> 00:02:52,360 and reskilling are inevitable. 77 00:02:52,360 --> 00:02:53,760 It is essential to provide 78 00:02:53,760 --> 00:02:55,880 practical and emotional support 79 00:02:55,880 --> 00:02:56,880 to those affected 80 00:02:56,880 --> 00:02:58,960 either directly or indirectly. 81 00:03:00,200 --> 00:03:00,960 Be agile 82 00:03:01,000 --> 00:03:01,680 and ready to take 83 00:03:01,680 --> 00:03:03,680 bold decisions to drive commitment. 84 00:03:03,920 --> 00:03:05,880 Be open to reassessing the change vision 85 00:03:05,880 --> 00:03:08,080 and messaging to keep them relevant, 86 00:03:08,080 --> 00:03:10,720 but willing to reevaluate the leadership team 87 00:03:10,720 --> 00:03:13,440 to ensure unanimous support for the change. 88 00:03:13,920 --> 00:03:15,600 As one of our senior clients put it: