Let’s take a look at acquire and organize talent to drive digital transformation success, because as we’ve said before, once there’s a consensus that digital transformation (DX) is essential for your company’s future growth and competitiveness, the next step is execution. This is the second people and organization part of Digital Transformation: Changing Organizational Habits. You can find more information in this book.
Contents
- 1. Create a dedicated digital transformation organization
- 2. Talent acquisition strategy
- 3. Outsourcing caveats
- 4. Problems with traditional IT taking on DX responsibilities
- 5. Treatment of the DX workforce
- 6. Organizational form: As a complete organization
- 7. Competencies of members of the DX organization
1. Create a dedicated digital transformation organization
It is important to establish a dedicated organization to effectively manage DX. This organization should have the following characteristics
1.1. Expertise-driven organization
A dedicated DX organization should be comprised of people with the specialized skills and capabilities required for digital transformation. They should have not only technical knowledge, but also the ability to manage change and think strategically.
2. Talent acquisition strategy
Talent acquisition for digital transformation is accomplished in the following ways
2.1. What it takes to be a leader in a digital transformation organization
The most important person in a dedicated digital transformation organization is the leader who will lead it. How should you choose a leader for your DX organization? You can choose an experienced leader from the outside, or you can choose a leader from within who has a strong understanding and curiosity about digital.
2.2. Cultivate internal talent
Identify and nurture talent among existing employees who want to learn digital skills. This allows you to build your organization’s digital capabilities internally.
2.3. Bring in external talent
Bring in experts or experienced talent from outside the digital space. They can bring new perspectives and skills to the organization to accelerate digital transformation. Other ways to bring in talent from the outside include M&A, joint ventures (JVs), and team-based hiring.
3. Outsourcing caveats
Some DX tasks can be outsourced to external specialized companies. However, you should be aware of the following
3.1. Set clear goals
You need to set clear goals and expectations for your outsourcer – this is the baseline for effective work.
3.2. Communication and collaboration
Ongoing communication and collaboration with your outsourcer is critical. You should have regular meetings and feedback to coordinate the direction of the project and resolve issues quickly.
4. Problems with traditional IT taking on DX responsibilities
If your digital transformation (DX) efforts are being driven by your traditional IT department, you may face the following challenges:
4.1. Lack of a strategic approach
While IT is often focused on technical fixes, DX requires a strategic approach that goes beyond solving technical problems to transforming business models and improving customer experience.
4.2. Resource limitations
Traditional IT departments devote a lot of resources to day-to-day IT management and maintenance tasks, which can distract from the resources and attention needed for DX projects.
4.3. Clashing organizational cultures
Conflicts can arise between IT’s traditional organizational culture and the innovative and flexible culture that DX requires. This can be a barrier to driving change.
5. Treatment of the DX workforce
DX talent should be treated in line with market standards, for the following reasons
5.1. Recognize expertise
DX professionals have a high level of skill and knowledge, which should be recognized and rewarded appropriately.
5.2. Retain top talent
Competitive treatment is key to attracting and retaining top talent. This will greatly benefit your organization’s digital transformation in the long run.
6. Organizational form: As a complete organization
It is desirable for a DX organization to have a complete structure. This is important for the following reasons
6.1. Flexibility and efficiency
A lean organization enables fast decision-making and flexible work, which helps you respond quickly to changing market conditions.
6.2. Achieve clear goals
By having each team work independently with clear objectives, you’ll be able to produce effective results.
7. Competencies of members of the DX organization
When building a digital transformation organization, you’ll need the following member competencies:
7.1. Innovative thinking
DX projects require a creative and innovative approach. Members need the ability to think outside the box and generate new ideas.
7.2. Technical expertise
You will need a deep understanding and specialized knowledge of the latest digital technologies. This is to effectively manage the technical aspects of DX projects.
7.3. Understand your business
The ability to understand how digital technologies can contribute to business goals is critical. This creates a link between technology and business goals.
7.4. Communication skills
Members must have the communication skills to effectively communicate and collaborate with various departments, which is critical to facilitating change throughout the organization.
Specific roles in a professional organization that are based on these competencies include the following examples Planners, PMs, POs, developers, designers (UI, UX, GUI), DX strategic planning, etc. will be explained in detail in specific articles.
We’ve covered the talent and organizational structure needed to successfully drive digital transformation. The right dedicated organization, the right talent acquisition strategy, and efficient organizational management are key factors for the success of digital transformation. With this approach, companies can effectively overcome the challenges of the digital era and achieve sustainable growth. For a more in-depth story, check out the specific linking articles in each table of contents.