The CEO of a large retail company recently brought a $500 million digital-transformation-investment plan to his board. The board reviewed the proposal, but after asking a number of questions, they were unable to evaluate it. Was it too costly? Was it aiming too low? Was it focused on the right priorities? One board member admitted he just didn’t know.
5 Questions Boards Should Be Asking About Digital Transformation
Better advice starts with a better understanding.
June 21, 2021
Summary.
Digital transformation is increasing the scope of boards’ mandates, opening up new fronts for risk and competition. Asking the following five questions will ensure that even non-digital directors are focused on the most important challenges: 1) Does the board understand the implications of digital and technology well enough to provide valuable guidance? 2) Is the digital transformation fundamentally changing how the business (and sector) creates value? 3) How does the board know if the digital transformation is working? 4) Does the board have a sufficiently expansive view of talent? 5) Does the board have a clear view of emerging threats?
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New!
HBR Learning
Change Management Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Change Management. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Change may be the only constant in today's organizations. Here's how to lead through it.