There’s a familiar scenario in many companies. A new system has been introduced; the consultancy fees were high, and the presentations were polished. On the slides, everything looked promising. A few months later, someone in sales is sitting back in front of their old Excel spreadsheet because it’s quicker. In customer service, people are still searching for information via email. And when a decision needs to be made, it goes through the same loops as before.
Then the verdict is quickly reached: the new system hasn’t met expectations. Sometimes that’s true. Often, however, people expected software to do what should actually have been the job of leadership.
Digital transformation rarely fails solely because of technology. It fails because companies cling to old habits and hope that new tools will do the rest. That is precisely why the issue is so important for CEOs.
Understand first, then buy
Many companies begin their transformation by looking for a solution. They assess which platform is the best fit, which provider has a good track record, and how quickly everything can be implemented. This looks professional. But it isn’t the starting point.
The starting point should be more uncomfortable.
Where are we wasting time? Why is one department unaware of what another already knows? Why does a quote take longer than it should? Why do customer complaints only reach senior management once the frustration has already reached a boiling point?
Questions like these do not lead directly to a list of software options. They lead to processes, responsibilities and sometimes even to vanity. That is precisely why they are often sidestepped. It is easier to discuss a new tool than the question of why an organization is getting in its own way.
Technology can improve many things. But it cannot make us honest. Those who do not want to name their problems will simply wrap them up more neatly with digitalization.
IT can help, but it cannot lead
Of course, every business needs a strong IT department. Without secure systems, reliable data and people who understand technical processes, any strategy remains nothing more than a wish list. Especially in this age of automation, artificial intelligence and interconnected processes, IT is more important than ever.
But it is not a repair service for a lack of strategy.
If a company does not know what it wants to do better, even the best IT can only help to a limited extent. It can introduce a system, build interfaces and explain risks. But it cannot decide which customers are becoming more important, which processes need to be scrapped or which old habits are holding the company back.
That is for the leadership to do.
A CEO does not need to understand every technical detail. However, he or she must understand the impact technology has on the business. Are customers becoming more impatient? Are competitors working faster? Are new business models emerging while the company is still sorting out internal approvals? These are not questions for a side project. These are questions for top management.
Without direction, all you get is busyness
In many companies, there isn’t a lack of digital activity. There is too much of it. Every department is launching something. A new tool here, a dashboard there, a pilot project elsewhere. Everyone is busy, everyone is talking about transformation. But at some point, hardly anyone asks what has actually improved as a result.
This is precisely where leadership is needed.
CEOs must decide which initiatives matter and which do not. What tangibly helps customers? What makes work easier? What strengthens the business model? What merely demands attention?
A clear ‘no’ is often worth more than the next ‘yes’. It saves money, but above all, it saves energy. Companies do not have unlimited energy. When too many projects are running simultaneously, change becomes a never-ending construction site. In the end, everyone is tired, but little has actually changed.
Good leadership creates focus. It ensures that digital initiatives don’t just sound modern, but serve a purpose.
Culture is revealed in everyday life
Company websites often talk about openness, courage and collaboration. In everyday life, it quickly becomes clear which of these are genuine.
Is a team allowed to say that a project isn’t working? Is bad news heard early on, or is it swept under the carpet? Do departments share information willingly, or do they hoard knowledge because it represents internal power? Is a mistake used as a learning opportunity, or does the immediate reaction be to find someone to blame?
Such things determine the success of digital transformation.
If managers monopolize every decision, no process will become faster. If no one is allowed to take responsibility, even agile methods won’t help. If collaboration is demanded but lone-wolf behavior is rewarded, every new system remains just another interface.
CEOs do not shape this culture through slogans. They shape it through behavior. Through what they demand. Through what they tolerate. Through what they stop.
Data must also be allowed to contradict
Many companies today collect vast amounts of data. Nevertheless, decisions are often still made as they used to be: based on experience, gut feeling, hierarchy or personal conviction. Experience is not worthless. On the contrary. But it becomes dangerous when it is defended against every new insight.
Data is only useful if it is also allowed to challenge the status quo.
Perhaps an analysis shows that a major client isn’t actually that profitable. Perhaps it becomes clear that a favorite internal project hardly has any impact. Perhaps figures prove that a problem lies not with the staff, but in the process.
Dealing with this takes courage. Good CEOs don’t use data merely as window dressing in presentations. They ask: What do we learn from this? What are we changing? And where did we go wrong?
