Digital Transformation Success Metrics
CultureSparq.com | We Build The Culture
What are your Digital Transformation KPIs?
As one CEO whispered to me while everyone began entering the room, “wait and see, once we get to our corporate KPIs managers will start looking for the exits.”
No CEO doubts the importance of measuring their company’s performance properly. Yet the executive teams we’ve assisted over more than 10 years generally struggle to engage with the challenge.
What Are You Really Measuring?
Executing your digital transformation initiative will be a major undertaking even if you have the most experienced leadership team. The work begins with your team creating meaningful KPIs to make your transformation experience ROI justified.
At CultureSparq, we take KPIs personal because we know measuring digital transformation progress is a challenge and many companies avoid monitoring it altogether.
The Gartner team found, almost half of all organizations have no metric in place to measure digital transformation. This is due to the fact that many companies get caught up in the excitement of launching a groundbreaking digital transformation initiative missing out on the opportunity to measure what really matters like KPIs.
We want you to Choose the right digital measures of success to help you achieve the expected business outcomes. So we decided to share some metrics to keep you focus on measuring progress and help you make that shift from using operational efficiency metrics to measures that interest executive decision makers. We encourage you to level set by knowing how to use metrics with a purpose.
For example be sure to list what you are trying to achieve by doing the following:
Have a clearly defined and defensible causal relationship to a business outcome
Work as a leading, not lagging, indicator
Address a specific, defined audience
They can be understood by a non-IT audience
Drive action when they change from green to yellow to red.
Once you aligned your team you can start thinking what metrics you want to use to measure success. Here are a few KPIs you can explore to measure your digital transformation progress.
Digital Proficiency from percentage of the marketing spend that is digital to your Brand value in the market
Customer Focus such as the percentage increase in customer engagement in digital channels and the reduction in time to market new products to customers
Return on Transformation like your Percentage of revenue from new products/services introduced due to the digital initiative and the number of new products or services launched in the market and being consumed.
Be sure to keep things simple, start with 2-3 metrics so you can pivot-or-persevere in a meaningful way.
Just know, a lack of urgency is the greatest obstacle businesses face when considering the value of digital transformation. Proper planning is important but, more than that, the execution as per the KPIs you select is what take you through the journey.
Leading a digital transformation calls for an entirely new mindset on the way you do business. We are helping companies make that transformation leap.
If you need deeper insights, please schedule a 1-on-1 with Chris Campbell to learn how we are mobilizing a winning culture.