Metrics & KPIs for Measuring Digital Change
Digital change has many facets and consists of technical as well as structural, psychological, cultural, and operational components. Each field of action includes activities, processes and actions that can be defined, implemented, and applied by your organization within the framework of digital change. It is all about getting your organization into shape where it can achieve and sustain a competitive position in the digital age.
For your transformation initiatives to be successful, you need a solid analysis of the market, your customers, new technologies, your own processes & resources, and the corporate capabilities and culture.
But when it comes to measuring the success of your digital change initiative, it may not always be as clear as you’d think. In this piece we’ll take a closer look at the top 4 KPIs we use to help measure, evaluate, and benchmark the success of digital change within an organization.
Operational Efficiency
After your strategic vision has been designed, your digital capabilities built and the operating model adapted, it’s important to examine the impact it has on operational efficiency. This means, taking a closer look at whether there is tangible cost reduction in certain key areas through improved operating speed and efficiency. By placing this towards the top of your list, it not only helps quickly assess the changes you’ve made, but also means you’ll be more aware about improvements you have introduced.
Customer Loyalty
It’s well known that it takes up to 5 times the effort to acquire new customers than it does to retain the installed base. This alone is reason enough to ensure your digital change strategy aims to better customer loyalty. And while new customers are needed to unlock new growth, a solid base of loyal customers help you get there. Not only will they be more willing to try something from you before anyone else, but they may just grow to be your biggest “unofficial” brand ambassador.
Employee Engagement
In today’s modern workplace, employees and employee satisfaction are paramount to the success of a company. Staff retention, productivity, and engagement are ranking among the top reasons why people leave (or choose to stay) at a company. If your digital change strategy includes ways to identify and improve employee satisfaction, you’ve made a change which should help you see continued success.
New Value Creation
This is all about creating new sources of revenue and profit. In order to achieve growth, you need to generate value. If your digital change strategy includes added value propositions to your products or services brand, it will help paint a picture of the market space you occupy. Consider things like efficiency and productivity improvements, inclusiveness, environmental impact reduction, and the like. Adding and promoting new value via digital change will help identify a long-term commitment strategy for measuring growth and prove to be a crucial KPI for success.
As Digital Veterans we’ve seen time and time again how a lack of digital skills and KPI assessments distort success and inhibit organizations from achieving their goals. These KPIs are a great place to start when benchmarking the success of your digital change strategy, but they’re not the magic formula to overcome any and every challenge.
How do you measure the success of your digital transformation initiative?
