Global Study: Leaders Looking for More Sustainable Pace of Digital Transformation

The Acceleration Gap

Rather than measuring how digitized a company is as the yardstick of transformation, it's more important to ask whether the business can quickly take advantage of new markets and opportunities-be that a geographic expansion or, as the pandemic necessitated, a complete revamp of a business model or employment practices.

This is where the acceleration gap comes in as a measure of the missing steps between what a business should do to prosper and what it can do in the here and now. More than half of leaders (52%) say there is a growing divide between where their business is and where it needs to be to compete.

Finance, IT, and HR Pain Points

Although this is our third global study that queried decision-makers across finance, IT, and HR, it's the first time we were able to dive more deeply into the particular, and sometimes competing, concerns of finance, IT, and HR leaders.

Among some of the eye-opening findings from the offices of the CFO, CIO/COO, and CHRO:

• About one-third (34%) of finance leaders say they have little or no confidence in their teams' ability to meet the demands of the business, and only 49% say they have confidence in the efficiency with which their organization moves among planning, execution, and analysis cycles.

• IT heads are the most optimistic of all leaders about their ability to continue to meet the demands of their organizations. More than half (53%) agree that their teams are equipped to ensure continuity in times of crisis-the highest proportion of any of the business functions surveyed.

• Nearly two-thirds (64%) of HR leaders are either confident or somewhat confident in their teams' ability to accelerate transformation, but technology remains a stumbling block; 43% of HR leaders say they are not confident in their teams' ability to elevate human performance with technology.

One thing is sure: Change is here to stay, and companies that are prepared to reassess and pivot are poised for success. As John Boudreau, senior research scientist, Center for Effective Organizations at University of Southern California, said in the report, "We'll see a future with more unpredictability and disruptions, and thus increasing needs to perpetually refigure work and organizations. The genie is out of the bottle, and even if COVID-19 isn't a factor tomorrow, it's going to be impossible to simply snap back to the past."

Download the full report, "Closing the Acceleration Gap: Toward Sustainable Digital Transformation, " for more findings from the office of the CFO, CIO, and CHRO.