How to measure the success of digital transformation?
How to measure the success of digital transformation?
The digital transformation is, above all, a cultural change that has an impact on the way in which a company operates. Learn how to establish the appropriate indicators to measure the success of this process within your organization.
The digital transformation is on the agenda of companies, especially those in the financial sector. In fact, according to McKinsey's digital quotient analysis, less than 15% of organizations can measure the impact of their digital initiatives. This is because while the traditional model is focused on measuring net earnings and earnings per share, digital strategies need other types of KPIs.
"As organizations become more agile, KPIs must adapt to new operational capabilities," said Steven Skinner, senior vice president of Cognizant Business Consulting in an interview with CMO. “The digital transformation metrics must be aligned with the tensile measurement of a digital capacity against the results achieved. This helps to continuously evaluate and refine efforts within organizations, "he added.
Each organization has a unique and customized digital transformation initiative according to its objectives and customers. Therefore, there is no golden rule for establishing digital KPIs. However, according to Peter Sondergaard, VP of Research at Gartner, indicators to measure the success of digital transformation generally answer the following questions:
- How fast is the change being implemented within the organization? One of the main characteristics of digital transformation is the adoption of more agile and flexible models.
- Have barriers between different departments been removed? A successful transformation blurs the traditional boundaries between functional areas and facilitates collaboration between them.
- How is the integration between digital and general strategy? Every digital transformation process seeks to connect the particular objectives of each area or department, so that they are aligned with the company's general strategy.
- How is the process of hiring human talent? To achieve a true change within the company, new employees cannot be selected based solely on traditional parameters.
- Do the people involved feel it as a project in continuous growth? Every transformation has the aspiration to be exponential. This requires that the people involved live in a permanent state of trial and development.
- Are the culture and values of the company consistent with what the team is doing? If a profound review of the culture and values of the organization has not been made before beginning, any attempt at digitization will be met with a certain level of resistance.