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At the start of its digital journey, every company must ask itself: how do I set up my organisation for a radical transformation?

To answers this you must first find answers to the following questions about the organisational elements of a digital transformation:

  • Structure - What is the right organisational structure for a digital transformation or business?
  • Leadership - Which managers should 'own' digital (for example, do I need a Chief Digital Officer)?
  • Culture - What cultural mind sets are important in a digital transformation, and how can I build them?
  • Operating model - How do I set up my teams’ operating model to be more agile?
  • Talent and skills - What digital talent do I need and how should my HR processes be different for this population?
  • Sequencing the journey - How do I get started on the digital change process?  How fast should I move?  What are the most challenging phases?

Managers are moving quickly to build digital organisations that add real value to their business.  Signs of their success include:

  • Designing a digital organisational structure that aligns closely with
    • their overall business strategy, and
    • how they expect to capture value from digital.
  • Appointing people who lead through collaboration and innovation, rather than through a  traditional hierarchy; releasing significant control to teams; and managing progress on monthly or quarterly key performance indicators.
  • Embedding a specific set of agile management practices that drive performance throughout the organisation; businesses that can achieve both speed and stability will win.
  • Acquiring and promoting digital talent and leaders, defining new career paths based on experience (not necessarily managing or traditional hierarchy), and valuing autonomy and purpose, not just compensation.