In today’s business world, leaders understand the importance of digital advancement. The majority of them are pursuing various initiatives but cannot say if the transformations are successful. You need digital success metrics to discover if the efforts make sense for the future. In this article at McKinsey, Matt Fitzpatrick and Kurt Strovink share how CEOs can measure their progress in digitization using digital success metrics.
Measuring with Digital Success Metrics
How do you think you will achieve digital success? Is it by getting projects done within the deadline? How do you know if those are increasing “revenue, profitability, market share, efficiency, or competitive moats?” ask the authors. Here are the digital success metrics that CEOs must measure to bring about a positive digital transformation in the company:
Analyze if your initiatives are generating enough ROI. This is one of the digital success metrics that help to track progress. Work on changing one business domain at a time to avoid diminishing the digital budget too fast. For instance, start with customer or staff experience or functionalities.
Budget Specific to Digital Programs
You cannot be frugal and expect a significant return on digital success. Invest in the most relevant tools to build a technology-forward company. This will help teams to produce deliverables better, bringing in the much-needed profit margin faster.
You must know when to launch the product. Your hard work does not pay off if you release a tool that is already declared obsolete in the market. So, time is one of the important digital success metrics that you cannot afford to ignore.
Leader Perks and Value Creation
CEOs should ensure that business executives are engaging in value creation for digital success. If you align incentives with the rate of progress they make in implementation, their leadership can produce better developmental progress.
Top Talent Pool
Hire the best-in-class resources for the digital success of your company. With them, you can utilize your time, energy, and tools better. Digital success metrics such as these will enable a reliable digital environment for all employees sooner.
To view the original article in full, visit the following link: https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/how-do-you-measure-success-in-digital-five-metrics-for-ceos