How to sell digital transformation to the board

Some of the benefits of digital transformation include improved customer experience and operational efficiency and the creation of new or accelerated revenue opportunities. In fact, a survey from SAP found that 80% of successful digital transformations increase profitability. However, transformation efforts are not without challenges, and according to research from Deloitte 70% of them run into difficulties for several reasons. 

The good news is that most of the root causes of those failings have been well documented, and the issues understood, meaning they can be avoided by following a process of best practice. Learning from other people’s mistakes is always better than taking the hit. This is why it’s important to work with people who have been through the experience before, as they can anticipate issues and avoid them before they have a chance to manifest.

Take the correct first step 

Getting started in the best way possible is significant to the entire success of the project. Decision makers at the board level are the gatekeepers to fulfilling any digital transformation strategy, as without their support it will be difficult to realise positive outcomes. It may be the CEO, an investor or other board member who initiates and drives the need for change. Whilst in other instances, it could be one of their lieutenants who may come forward with a proposal. In either case, the board’s unanimous approval is crucial, but how can you convince executives to listen to your ideas and endorse your digital transformation plans?

Before you can get everyone singing off the same hymn sheet, you will need to consider the view of everyone in the C-Suite and why they may not initially be sold on a project. Change can be scary, and from the perspective of executives who want stability in their organisation, the idea of wholesale transformational changes can be perceived as a threat to the status quo. After all, as the idiom goes, ‘If it ain’t broke, don’t fix it.’

Some organisations may be of the mindset that digital transformation is more trouble than it is worth. Others may be reliant on legacy systems for their day-to-day operations, which makes modernisation of complicated processes a difficult but certainly not insurmountable task. You need to be prepared for these objections and have an awareness of the general appetite of the leadership team to give their backing to a significant undertaking and investment. Cost and risk must be fully understood, as well as how the culture, people and ways of working will be impacted.

Having an outcome-focused approach will help. Being clear from the start about the goals and including tangible evidence that the digital transformation you propose will bring success to the organisation is a great way of getting others on board. After all, any transformation has a degree of risk attached and every executive is aware of this, so it’s better to have a detailed plan of how you will mitigate risk and deliver the stated goals.

Digital transformation can be hard, but just because something is hard doesn’t mean it isn’t worth doing. However, it will require specific skills and assembling the right team to carry out the correct functions must be done up front. Identifying the right people to help you will usually result in a combined team of internal and third-party resources. Embracing new technologies may require the help of technical specialists who understand your industry but may not work directly for you. To help bring everything together, many organisations now hire a dedicated Transformation Director to lead such initiatives and whose full-time focus is on managing all the operational upgrades across the organisation.

The Transformation Director is an executive sponsor or other high-level advocate with vast transformation experience, who can help influence budgets and determine the strategy of the project. It’s their job to harness the potential of bringing people, processes and technology together to create the desired outcomes for the organisation. They will keep the leadership team informed on progress and ensure all eyes are focused on the overall objectives.

As well as specialist technologists, your transformation team will also need visionaries and evangelists who can help generate and maintain support for the project through regular communications and updates to all employees, customers, suppliers and business partners. They should be a constant voice, reiterating the importance of change and playing an important role in aligning all stakeholders.

A feedback loop from all staff involved must be put in place so that legitimate concerns about the proposed changes and what it means to them can be addressed appropriately. Remember, change is scary for many people at all levels of the business but for different and often personal reasons. Helping staff through the process with information, workshops, training and up-skilling will accelerate success. The more you can tap into employee knowledge and experience, the more you will be able to develop and improve team structure, streamline processes and improve performance. Engaging everyone in the process has many benefits and, if done in a structured way, can significantly aid the transformation process.

Before the leadership gives the green light for digital transformation, they want to know how the project will benefit the business. For this reason, it’s crucial you speak in a language the C-Suite understands and aligns technology goals to business ones. Most executives will not be technologists by trade, meaning they may not share the same passion for adopting new tech as others. Providing a business plan that is littered with technical jargon will only serve to deter them.

Business success is predicated on many variables, including customer retention, market growth and additional revenue streams. When trying to sell the idea of digital transformation to your board, ensure that you offer clarity on the business goals of the project and can evidence how the adoption of digital technologies will help achieve them.

It also needs to be remembered that digital transformation is a continual and not a linear process. The latest digital platforms allow organisations to make continuous improvements in process and automation. In addition, business needs will inevitably change, so adopting any new technology must benefit the organisation by allowing it to be more agile and scalable.

Showing your executive board what digital transformation could look like is only the start of seeking their approval. Senior stakeholders are enticed by the promise of results, so if you can prove to them that your project will deliver positive outcomes that are aligned with the strategy and goals of the organisation, they are more likely to give it their backing.

Without any kind of metrics, digital transformation is just a theoretical concept that lacks substance. Any proposition needs to summarise the business goals and provide a timeline for achieving them. Typically, project goals may focus on business growth through the improvement of employee and customer experiences. If you can demonstrate to your board the tangible benefits with a clear roadmap of how you will get there, you’re more likely to secure their buy-in.

In the eyes of your leadership team, digital transformation must be achievable within a sensible timescale, increase efficiency through better resource allocation, be cost-effective and deliver the ultimate customer experience. By partnering with ServiceNow specialists, such as POPX, you can manage your digital transformation journey, mitigate the risk and fix the cost. Talk to us to find out more. 

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