The first generation of Chief Digital Officers only strategically oriented
Fifty-four percent of 107 chief digital officers (CDOs) surveyed in a recent survey by Egon Zehnder said they spend more time promoting their digital strategy than actually implementing it.
The study (CDO Decoded: The First Wave of CDOs Speaks), conducted in 20 countries, sheds light for the first time on the first generation of CDOs, whose tasks and competencies are still defined very differently. The overwhelming majority of CDOs surveyed are pioneers, with 84 percent claiming to be their organization's first digital directors. The companies surveyed have a combined turnover of around one trillion dollars (around 0.89 trillion euros).
"The CDO role can take on very different forms. Accordingly, there is a great deal of confusion about their tasks and objectives among management and, in some cases, among CDOs themselves," said Christian Wohlgensinger, a consultant at Egon Zehnder in Zurich. "The role model is undergoing rapid change - but the common denominator that is emerging is the task as a change agent for innovation culture."
The challenge of cultural change
Summary of key findings from the survey:
- Although only ten percent of CDOs see it as their job to change the company culture, 54 percent of respondents said they spend more time convincing the company than implementing digital strategy.
- 64 percent see their CEO as a living example of digitalization, but only 40 percent believe the same is true for their CFO.
- 80 percent agreed with the statement that developing a new digital corporate culture was "more difficult" or "much more difficult" than expected. 68 percent also cited the lack of data integration and silo thinking in the company as obstacles.
- Only 25 percent felt their company was ready for digital transformation when they started their job.
- "Top leadership commitment" (58 percent) and "corporate culture" (57 percent) were cited as the top drivers of digital transformation.
The CDOs of today
- 84 percent of respondents are the first CDOs in their organization. 65 percent have held the position for three years or less.
- CDO is an executive role: 63 percent report directly to the CEO.
Career springboard CDO
- 42 percent believe their next role will be a CEO role.
- Fifty percent said the opportunity to actively shape a business had been the main reason they took on their new role.
Recommendations from Egon Zehnder
In order for CDOs to be successful, Egon Zehnder recommends a number of measures:
- CDOs are pioneers and implementers of digital transformation: If the company is facing a cultural change, it needs CDOs with a clear vision who can inspire teams.
- Senior leadership must internalize the change: The CEO must ensure that the entire leadership team, including the CFO and other essential leaders, understand the role of CDOs and support digital transformation.
- The corporate culture must be right: Nothing can change if the entire organization is not on board.
- CDOs need leg room: many CDOs assemble teams that include new talent, subject matter experts, and seasoned employees.
- Benchmarks for success: CDOs must have the freedom to set their own benchmarks for success in digital transformation - even in areas of the company for which they are not directly responsible.
The results of the study can be found on www.egonzehnder.com/cdo-decoded
