Championing change: transform vision into value
Organisations are having to evolve faster than ever, as access to technology increases exponentially and the scale of investment soars. Today, change is the only constant.
“I’m not a fan of the word ‘transformation’. It implies a fixed start and end. The only constant is change – we’re continually adapting and evolving based on the context at that time. Transformation programmes as ‘one-off’ initiatives just don’t work.”
Malcolm Lowe, Chief Information Officer | Transport for Greater Manchester
The landscape of technology investment is also shifting, with significant spend and strategic decisionmaking migrating beyond the traditional confines of the IT function. In fact, our research showed that 42% of organisations are spending over £100 million outside of their IT budget on digital transformation initiatives, and 7% spent over £1 billion extra.
of organisations are spending over £100 million outside of their IT budget on digital transformation initiatives
For tech investments that enable growth (new markets, value propositions and business models), strategy executives make the decisions 35% of the time
Successful transformation will redefine the role of your CIO
More of the C-Suite are now making technology decisions. For example, when it comes to tech investments enabling growth (new markets, value propositions and business models), our research revealed that strategy executives make the decisions 35% of the time. So, given this shift from the IT department to the C-Suite, what does this mean for the role of the CIO and how that investment is guided?
Very little happens in business today that is not enabled by technology, so the CIO must place themselves at the heart of all major change projects. They must master the soft skills of influencing and storytelling to secure support across the C-Suite and bridge any tech fluency gaps. They must also demonstrate the technical capabilities required to establish guardrails that protect the security and resilience of the business, without constraining its ability to innovate.
As many as 75% of business transformations are unsuccessful due to misalignment of the C-Suite. Communication breakdowns and a lack of common strategy can lead to delays and, ultimately, outright failure. This further underlines how important it is that there is a shared understanding between tech and business leaders, in particular between the CIO and CFO. In fact, recent Deloitte US research shows a direct link between greater CFO involvement in digital investment decisions and stronger financial results.
Through collaboration, CIOs can influence which projects receive funding, giving them a greater level of control so they can set the business up for success. They can ensure alignment between the organisation’s transformation strategy and the technology initiatives that are prioritised across the business. Without this, digital ambitions and the ability to truly unlock value from technology can be significantly hampered.
Real success depends on extending this collaboration across the entire C-Suite, with each executive bringing a unique perspective on what constitutes value.
Recognise the value in every aspect of your organisation
To understand the real value of digital transformation, it is important to think beyond traditional financial KPIs, such as ROI and cost. Instead, establish a framework that reflects broader organisational ambitions and focuses on customers, processes, your people and your purpose, as well as financial results.
“We put a balanced scorecard of metrics in place. Financial, target operational performance, customer NPS, colleague engagement and sustainability. Any transformation initiative needs topositively impact at least one of those metrics.”
Jon Wear, Director of Transformation and Innovation | British Airways
Our survey showed that the vast majority of organisations always or frequently use customer-centric metrics to assess digital transformation value, with customer/user engagement (80%) and customer/user satisfaction (79%) the most popular. When it comes to measuring value from processrelated performance, 83% always or frequently track improvements in productivity and business continuity. For workforce value, 82% always or frequently measure employee engagement and retention. When measuring purpose-related performance, the three metrics most commonly used are reputation (85%), organisational resilience (82%) and sustainability (80%).
With numerous paths leading to digital value, leaders will naturally gravitate towards measures aligned with their roles. But a narrow focus or single perspective often yields only partial success. Maximising potential requires diverse measurement approaches that balance priorities. It calls for a blended, enterprise-wide value scorecard to achieve the greatest impact. It needs unified leadership.
“Traditional ROI metrics like NPV don’t play anymore. For me, it’s softer metrics, such as attrition, employee relation issues, union sentiment analysis… moving from very hard metrics into much softer ones.”
Peter O’Kane, Former Chief Technology Officer | Media Sector
Ultimately, as technology investments continue to decentralise and diversify across the enterprise, the CIO transcends mere technical oversight. By championing C-Suite alignment and fostering a shared vision, the role becomes critical to helping the organisation realise the true value of its transformation ambitions.
“In my view, technology and the business are inseparable. There is no meaningful distinction between the two. They must operate as one. If an organisation still talks about 'the business' and 'IT' as separate entities, that’s a fundamental problem.”
Simon Goodman, Group Chief Information Officer | Network Rail
Next steps to unlock value
Matt Stallard
