The Digital Performance Framework
From Transforming to Performing
As digital continues to disrupt existing business models, executive leaders are demanding more from their digital transformation programs. As a result, teams are now expected to deliver a steady stream of new digital solutions and experiences that drive growth for the business in response to the changing needs of their customers. The challenge faced by digital leaders is how to deliver on this expectation whilst ensuring the investment made in digital initiatives deliver immediate commercial benefits to the organisation.
In an increasingly digital outcome driven economy, the organisations that will enjoy a competitive edge will be those who develop an operating model focused on creating greater business and technical agility. A focus on executional excellence alone will not drive the outcomes necessary to deliver the improvements in business performance that is expected.
The Digital Performance Framework
Digital transformation is more than just technology, it’s about remodelling businesses to be innovative, agile, and customer-centric at their core. A true digital transformation program changes everything, from how products are designed, manufactured, sold, delivered, and serviced, through to the introduction of a whole new business model. Research from Harvard Business Review points to the fact that of all the companies that attempt to transform themselves digitally less than thirty percent will succeed.
It is therefore no surprise to find that successful digital transformations are driven by a clear purpose and motivated people. Leading digital change requires managers to have a clear vision of how to transform their company for a digital world and which part of the company they want to transform in order to be able to mature the capabilities required to achieve transformation excellence.
Through an extensive literature review that included academic reports, white papers, annual and sustainability reports and transcripts of presentations I identified the common competencies and capabilities an organisation needs to develop high performing teams that solve complex business problems through creative thinking and delivery of digital solutions that drive commercial outcomes. The capabilities and competencies were combined to form the Digital Performance Framework (DPF). Using the DPF I have since embarked on further research to build a more holistic view of an organisation, its capabilities and complexities with an objective to determine the link between digital capabilities and business performance.
At the heart of the Digital Performance Framework is 9 capabilities needed for organisations to transform digitally that have been mapped to over 56 core competencies. These capabilities have been assembled through extensive research and assessments of organisations at different levels of performance measured through business growth.
High performing teams are adaptable to change, highly effective in translating knowledge into business value, have a foundation built on creativity and are very effective in knowing how to use external partners to support them drive outcomes. Using the Digital Performance Framework, teams are able to be measured against the 3 performance factors that drive future competitiveness. The results are then used to pinpoint the capabilities to mature and the resources to develop to strengthen in-house expertise with the objective to improve your digital performance culture.
The Digital Performance Factors
The three performance factors that are key to an operating model that drives performance through executing the teams vision and roadmap:
Culture is defined within the Performance Framework as an organisations readiness to deliver outcomes and rapidly respond to change. Some of the key themes include connecting the work teams do with the vision and purpose, an unwavering focus on the customer and drive to deliver an outcome that benefit the customer and the organisation.
Effectiveness is defined within the Performance Framework as an organisations ability to translate knowledge into business value. Some of the key themes include the process teams follow to source knowledge and undertake innovation activities, the ability to interact with customers via multiple channels and a focus on ensuring all teams are delivering the highest value each and every day.
Creativity is defined within the Performance Framework as an organisations ability to master the strategic use of design, data & digital technologies to deliver innovative outcomes. Some of the key themes include the ability to test promising new ideas and quickly incorporate learnings from multiple sources, the connected environments that provides business services to customers, business partners and employees and the capacity to detect, assess, and respond to environmental changes in ways that are purposeful and decisive.
The Digital Performance Profile
Using the Digital Performance Framework a profile of an organisation is built measured against the criteria of performance, capabilities and the digital competencies. The results are then measured against an organisations ability to execute on strategic projects and long term financial performance to identify relationships.