Our research shows that
one of the six key factors
that can flip the odds of success
for digital transformations
from 30% to 80%
is having a strong leadership commitment
from the CEO
all the way through to middle management.
BCG research also reveals that
companies with a leadership commitment
from the CEO down through middle management
are 65% more likely
to succeed in their digital transformations
than those without such a commitment.
Companies that met
or exceeded their targets
and created sustainable change
had their CEOs checking in
at least quarterly to track progress and steer the effort.
Over 90% of these companies
had digital transformation on the CEO’s
or the Executive Committee’s agenda—
a staggering 50% more
than companies that were less successful
or unsuccessful.
In our discussions with executives
who led successful digital transformations,
we also learned about how they engaged
the frozen middle.
This refers to middle managers
who may not buy into the transformation right away
because their incentives are not aligned
with the transformation goals, for example.
So, what makes leadership committed?
And middle management engaged?
Based on our empirical research,
we have developed a set of Yes/ No questions
to help you assess
whether your organization
can adequately address
the leadership factor.
And BCG
has a structured approach
to help you answer Yes to these defining questions
by getting visible commitment from your CEO
and other key executives,
and engaging middle management.
There are a few other considerations
to keep in mind
as you progress with your digital transformation effort:
Purpose
is what motivates people.
Your company’s purpose
is the North Star that inspires true commitment
and gives employees much more than a paycheck.
Consistent messaging
and actions are key.
Having leaders
speak the same language
to describe the transformation
as well as
act on what they say
creates a clear vision
of the future
and sets the right example.
Leaders must also rethink
how to engage
and create excitement
about the transformation.
They need to embrace large-scale
empowering rather than traditional
command-and-control models.
Leaders must demonstrate compassion and care.
Because layoffs,
redeployments,
and reskilling are inevitable.
It is essential to provide
practical and emotional support
to those affected
either directly or indirectly.
Be agile
and ready to take
bold decisions to drive commitment.
Be open to reassessing the change vision
and messaging to keep them relevant,
but willing to reevaluate the leadership team
to ensure unanimous support for the change.
As one of our senior clients put it: