Digital transformation is not about technology—it’s about change. And it is not a matter of if, but a question of when and how. The role of the chief executive is fundamental to transformation and the rewards are high. The 23% of firms that have successfully digitally transformed in our MIT Center for Information Research survey of 413 companies globally, achieved 16 percentage points higher margin than the industry average.
In our conversations with CEOs and their leadership teams, we focus on six questions that they have to get right in order to transform successfully:
Although most important, we tackled leadership last because we first wanted to provide a common language to CEOs and other senior executives so they can communicate the why and what of a digital business transformation. A digital business transformation is not going to happen without the CEO and senior leadership setting and communicating a vision. CEOs have to pick the leadership team, determine and help change to the “to-be” culture and communicate, coach and course correct. And the CEO has to make the hard choices about decision rights and organizational restructuring.
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Let’s look at BBVA, a Spanish bank facing significant digital disruption. Several years ago, Francisco González, Group Executive Chairman of BBVA, noted there was a rapidly growing gap between customer behavior and retail banks. In 2014 he declared, “We are building the best digital bank of the 21st century,” setting the vision for the company. Gonzalez articulated six strategic priorities to help achieve the vision:
BBVA has invested heavily in reusable global platforms since 2007. The company worked hard to remove “digital spaghetti”—a tangled set of partially digitized business processes, constructed over time from many different systems and versions of data—and replace it with efficient, scalable global digital platforms. These platforms combine optimized business processes, efficient technology, and easily accessible data, all at a low-cost relative to industry competitors’ platforms, and meet regulatory needs.
As part of its digital-first focus, BBVA made the mobile device the customer’s remote control for the bank. The mobile app offers simple, fully digital new customer onboarding in less than five minutes. It functions as a digital wallet, and offers easy, automated purchase from a self-service suite of products—including consumer loans and investment funds—with each purchase in under a minute.
In July 2015, BBVA announced a fairly radical organizational surgery. This new structure moved BBVA from a more traditional brick-and-mortar bank with good digital capability to a fully integrated bank with people-based and self-service engagement models. And it places talent where it can have most impact.
The results have been very encouraging. Some outcomes to date:
Digital transformation mandates a strong vision, with the CEO and senior leaders’ hard decisions guided by company purpose. Digital transformation requires a single team with a single plan and enterprise leaders have to find the right balance between pragmatism and a visionary approach. Finally, CEOs must get the entire organization onboard—every employee has to play a role in the new digitally transformed enterprise—so they feel like part of the team and that their contributions matter.
Related: What CEOs Need To Know About Embracing Digital Transformation
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
