How boards can lead digital transformation efforts

Digital transformation has been on the collective minds of most corporate board members in recent years. With the speed of innovation accelerating, boards may need to analyze how digital transformation is prioritized and managed within the organization.

The digital transformation playbook is changing for organizations of all sizes. Companies are moving from digitizing—focusing on operations and efficiency—to a more digital mindset, which means disrupting models within industries and doing things differently. And contrary to popular belief, digital transformation is not just about technology; instead, it encompasses people, process and technology.

Technology evolves very quickly, and when people see what is possible and how rapidly consumer and employee demands change, it’s natural to feel left behind. However, boards can take steps to make up digital ground and leverage innovation to gain an edge on the competition.

Digital transformation will continue to be a top initiative for years to come. Board members should understand what options are available and what each could mean to the company.

One route some board members take is to enter into a reverse mentor relationship with a younger, more digitally proficient coworker. In that relationship, board members learn about digital technologies that they may not have exposure to otherwise. In addition, a host of learning opportunities about innovation and digital strategies are available through online services such as YouTube and LinkedIn.

Having board members with knowledge of each emerging digital strategy and available technology option is great, but not always possible. Still, seek out candidates who can bring maximum expertise, and when assessing them take into consideration their exposure to digital transformation solutions and strategies.

Initially, boards may have difficulty determining where digital transformation fits within a committee structure. While some elements may work in the audit committee, for example, others may best belong in the governance committee.

Board members need to think about the different committee structures and how they will manage long-term transformation. Because of the unique nature of digital transformation and its importance to the future of the organization, forming a separate technology committee may be the best move.

Championing digital transformation is a key role for a board. The board is instrumental in instilling the mindset of change, and members should question how projects are prioritized and aligned with other initiatives. The board should be the constant voice reiterating the importance of digital projects, and can play an important role in making sure leadership stays focused on transformation.

Inspiring innovation may require a culture shift. To generate new ideas, board members need to make sure that the organization does not punish commercial failures. Instead, leaders should encourage employees to take risks. Failing fast is an important part of an evolving business.

When making transformation plans, board members cannot forget about the people part of the equation.

For example, there’s no reason that individual development plans can’t be formulated for critical employees. A variety of online courses and in-person learning programs can hone their skills, and the company should emphasize internal development because talent is so scarce. Often, organizations put training at the bottom of the list of initiatives. However, it is one of the most important elements for transformation, and it can have a significant impact on their digital success.