Digital transformation can be a daunting task for any organization. There are so many moving parts and factors to consider, it’s easy to get bogged down in the details and lose sight of the big picture. But if there’s one thing that all successful digital transformations have in common, it’s a clear link between strategy and execution.
In other words, digital transformation needs to be driven by a clear purpose that is aligned with the company’s values and culture. Simply trying to copy what another company has done is not enough. Authenticity is key. Everyone needs to understand “why” this transformation is occurring and that “why” needs to resonate with the direction of the firm.
…Digital transformation needs to be driven by a clear purpose that is aligned with the company’s values and culture.
Let’s say your firm is embarking on a finance transformation initiative underpinned by a modern SaaS platform.
✨Are you doing it because you’re focused on upcoming growth and want to build a scalable internal systems infrastructure?
✨Are you doing it because you want to build stronger finance business partner relationships with your LOBs?
✨Are you doing it because you need to reduce shared services costs to increase margins on your unit economics to attract new customer segments?
✨Are you doing it because you want to increase shareholder returns?
✨Are you doing it because you are looking to develop agile, innovation-friendly business habits?
All of the aforementioned reasons – and more – could be valid for certain firms in certain contexts.
Tying strategy to execution provides a guiding light for all of the decisions that need to be made during a digital transformation. It helps to keep everyone focused on the ultimate goal, and makes it more likely that the transformation will be successful.
So if you’re embarking on a digital transformation, make sure you take the time to align initiatives with strategic objectives and to communicate those linkages frequently. It’s the best way to ensure that your transformation is authentic, aligned with your company’s values, and ultimately successful.