The four pillars of successful Digital Transformation
Digital Transformation means you use data, not intuition. Harvard Business Review identified four pillars of a successful transformation.
Finance leaders have a big role to play in making sure the transformation is a success. Here is what they can do:
1️⃣ Technology enables people to use data
Buying a great piece of software for your company isn’t enough. If people don’t use it or don’t apply it to its fullest extent, the project fails. As a Finance leader, you need to step up in the implementation phase of the new technology.
You need to use the relationships you built with your business partners to convince them that going through the hardship of learning a new tool is worth it.
What I’ve seen works best:
Find whoever is most skeptical and ask them to become an advisor to the implementation team. That way, they feel heard and play a role in making the project a success.
2️⃣ Data Science turns data into insights
Your company may or may not have a dedicated Data Science team. But, even if you have one, it’s your responsibility to make sure people don’t rush to conclusions right away. That’s because Finance is generally closer to day-to-day decision-making.
Take your time and think a step ahead: Which issues could these data points solve? Which actions may they suggest? Then work backward from there to find the metrics that matter.
3️⃣ Process, People, and Culture help turn insights into action
The most insightful conclusions are useless if no one takes action from them. Don’t just put them on a slide and hope execs make the correct conclusions. Instead, make concrete recommendations on what the company should do with the insights you provided.
Finally, audit your processes and your culture. They stand in the way of a successful transformation if Finance doesn’t have a seat at the table where decisions are made.
4️⃣ Openness to new ways ensure results follow action
You may have all the right pieces in place and get your first wins in terms of higher revenues or improved profitability. Now, you need to find a way to establish the change effort as a permanent new way of working.
A great way to achieve that is by anchoring it to the performance evaluation process. Set goals that can only be achieved by following the new process. Measure the rate of adoption and share it frequently. Feature the transformation prominently when rewarding employees for great results.
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