Is there space in the boardroom for the CDO?

There's loads of discussion online and in companies generally about the role of the CDO - the Chief Digital Officer.

The traditional 'C Suite' must be getting pretty anxious these days, with a new CxO role being suggested as one of their members everywhere they turn.

The list of new senior roles appearing more recently includes:

• CMO : Chief Marketing Officer
• CIO: Chief Information Officer
• CXO: Chief Experience Officer
• CSO: Chief Strategy Officer

One does wonder if there will be enough seats around the boardroom table to accommodate all these new executives (or more cynically, if there will be anyone left to do the work).

Russell Reynolds, an Executive Search firm describes the Chief Digital Officer role as having the following capabilities:

• Able to plan and execute long-term strategy around driving customer awareness, engagement, experience and monetization. 
• Familiarisation with web, mobile and social media and possibly local as well. 
• Experience in developing new channels and business models, as well as innovative products and services. 
• Tech savvy, with the ability to manage developers and ask the right questions

However, what I would add to this list is the ability to operate and communicate as the Exec level. There's no point an appointed CDO having all the technical skills and knowledge if they do not have gravitas or the ability to put forward their points eloquently to their senior level peers.

The boardroom seating plan may be getting squeezed, but as businesses evolve and develop... can any major organisation afford not to have digital representation at the top level?

Who Digitally Mentors Your Board?

I see a growing trend in many organisations (both large & small), where an increasing number of staff are becoming digitally savvy and utilising their online knowledge in their daily roles. But who is providing the necessary board-level guidance to a company? Who is equipping your senior team with the skills and advice necessary to drive forward the digital change?

It's not just a case of showing your CEO how to Tweet (her teenage daughter has probably already shown her how to do that) . It's a case of making sure the board and other executives have the capabilities & understanding to be able to seize the power that digital change can deliver.

In my experience & opinion there are four different approaches to providing these skills and experience directly into your C-Suite (A Chief Digital Officer, A Digital Non-Exec, A Change Director or External Consultancy). However each situation is different and in reality your solution to this may be a combination of two or all of them.

Whatever route is chosen, this injection of senior level capability typically has to help the company leaders through a fast-paced delivery of new products, services, processes and technologies.

A New Role to Lead Digital Business Transformation

Corporate change isn't a new thing. Businesses have always had to assess, re-think and re-invent themselves as the world changes around them.

In the past this was a lot easier though. Organisation had years (or sometimes decades) to change their ways. But more recently the cycles of technical innovation have increased, which means the speed of digital change is much quicker. In fact, those in market sectors which were first to be affected by online (e.g. Retail and Travel) had longer to transform their businesses than those being disrupted now - such as Financial Services and some parts of the Transport industry.

So how are some businesses dealing with Digital Transformation & change and how are they setting themselves up to understand and embrace the effects?

1. Create a Chief Digital Office role
Whilst just creating and hiring another senior role in the business might not be everyone's cup of tea, a fair number of organisations have hired (or promoted from within) a CDO to lead up their digital change.

2. Use a Digital-based Non-Exec Director
Although similar to taking on a CDO, a digital-centric NED provides their experience and skills to guide a company board. This role is usually filled by a new Non-Exec Director who has previously had a senior role in digital transforming another business. 

3. Creating a Director of Change

Whilst not exactly a direct comparison to either a Chief Digital Officer or a Digital-based Non-Exec Director role, some company's decide to wrap up their adoption of online tools and processes in a more general senior change position

4. Alternatively they could hire an agency / consultancy.... and most large & well-respected management consultancies are unsurprisingly only too keen to state how they've always been involved in digital transformation and have all the answers....

The Lack of Digital Skills – not just a Scottish Problem

A workforce skilled in online & digital tools & technologies is key to developing an organisation’s digital agenda. From the more specialist digital-specific & IT / IS / ICT roles, through to the generalists who may need up-skilling and re-training on average every 3 years… the hiring and development of skills necessary to take forward your online roadmap is not something to take lightly. In fact, the lack of digital skills could be one of the greatest factors in why your digital change strategy fails.

I've previously blogged about the lack of digital skills in Scotland and highlighted the lack of technical, marketing and associated skills (design, user experience, content, etc.) ‘North of the border’ where I live. But this skilled and empowered workforce isn't just missing in Scotland, or even across the UK. In a digital skills presentation today from ScotlandIS, the Scottish IT Trade body, I was actually shocked to hear the fact that there is a shortfall of 1 million digital jobs across the EU.

Scotland is therefore only a drop in the ocean compared to this, with only 10,000 people a year needed here to fill the gap.

So what is being done about it?

• Are schools, higher education and further education producing the right courses and talent?
• Are companies investing enough to drag seasoned employees (who may have previously resisted or ignored the use of digital)?
• Are cities and even governments doing enough to encourage digital enterprise in specific areas that need it most?
• Are boards hiring Chief Digital Officers to champion online excellence?

I fear not.

The first 90 days of the Chief Digital Officer

The first ninety days in any job are important. But in such a new and exciting industry as online & digital, the first 3 months in the role of Chief Digital Officer are key.

Here are my thoughts on what should be the main areas to focus of the CDO during this period:

1. Understand the overall business strategy
   Any digital strategy created must be completely aligned to what the business is planning (Commercial aims,  new products, marketing, etc.)
2. Learn the culture
   Every organisation has a "way of doing things" and seeing itself. This doesn't have to perpetuate, but it is good to know what sort of people your peers and team around you do and think. Most important is the appetite for change... which can either be a critical success factor or a big nail in the coffin of a lot of the most forward-thinking digital plans.
3. Set a benchmark
   Recognize which of your competitors (if any) are doing innovative things, or just doing the same stuff but better! 
4. Identify your stakeholders and make friends
   From marketing and customer insight through to IT and Operations... if you are going to be an agent for inevitable change, you will need to build allies first.
5. Research your customers
   It's no good setting yourself up to digitize everything if that's not the correct way forward. And it's no good rolling out smartphone apps if all your potential business is using tablets. You don't have to know everything about every one of them, but being able to classify and segment them into target audiences will help you create the most relevant products and experience for them.
6. Build your vision
   Create an idea of what success looks like. What is the end game of all this change and how does it help the user and company? (Tip: Then give this vision to your strongest critic and ask them for feedback - this will iron out a lot of the wrinkles)
7. Create the roadmap
   Draw up and digital roadmap of short and longer-term projects & tactical changes that move the organisation forward towards your vision. 
8. Justify investment
   Where necessary develop businesses cases that explore the investment required to realise the roadmap.
9. Deliver something quickly
   Nobody is realistically going to wait for you to see out your initial 3 months without some business improvement. This shouldn't be too difficult for any CDO new to the role, as there are always quick wins to be had
10. Have fun

Have I missed anything?

The transitional Chief Digital Officer role

We live in a changing world and titles come & go over time. One of the more modern roles to gain more of of the recent spotlight has been that of the Chief Digital Officer or CDO.

In a post a while back, I commented about why the role of CDO is needed, but that some organisations may choose to use a digitally-savvy Non-Exec Director instead.

However, I've give this topic further thought and can see the role of CDO becoming more popular over the next couple of years, but then gradually fading away... as the rest of the board becomes more digitally aware and knowledgeable.

If this scenario is likely to become a reality, it does then beg the question as to who would put themselves forward to become a Chief Digital Officer now?

Is the future of the Chief Digital Officer at risk?

In a recent report by Gartner called "Top Industries Predicts 2014: The Pressure for Fundamental Transformation Continues to Accelerate" [link] it's predicted that nearly two-thirds of government organisations with both a CIO and chief digital officer role will get rid of one or the other. This will eventually happen because of the overlap between the two and further changes across the business.

This announcement may seem a little premature, since the role of Chief Digital Officer is only just taking shape in the minds of some organisations and their boardrooms. To therefore announce it's redundancy before it is fully embraced could be seen as just headline grabbing (or link bait).

However, I agree with this viewpoint. Furthermore I not only believe that the future of the Chief Digital Officer post is at risk, but that it should be seen as an interim position along the path to full digital adoption. In other words... if you're aiming to be a CDO in several years time, you are probably planning for the wrong future.

But let's take a small step back to the present. Where the role of Chief Digital Office is definitely needed by some public and private sector bodies, with others having already hired & found their CDO. This person should neatly sit between the roles of the Chief Marketing Officer (CMO) and Chief Information Officer (CIO), to help both on their journey forward to the creation of a vision, where digital benefits are fully utilised & integrated across both teams and further afield.

In some circles the title of CIO amusingly used to stand for "Career Is Over". However it is really the CDO who should not only assume they are out of a job eventually, but should plan for this as part of their wider responsibilities.






 

Why the role of CDO is needed

In a posting on eConsultancy this week, Ashley Friedlein provided his thoughts on Why a Chief Digital Officer is a bad idea. This article basically stated that a CDO wasn't needed in the modern board room.

Having written on this blog about the role the Chief Digital Officer should have, I thought I would disagree with Ashley's opinions. However, despite the (obvious linkbait) headline, I found myself partly in agreement with the post.

You see, we are living in a time of tremendous technical change, where digital technology has moved on significantly in just one employee generation. This means that there are still very few career digital people on the boards of major organisations... but this is gradually changing and one day all members of the C-suite will be 'digital natives' and have grown up with online.

Until then, the role of CDO is needed, but as a transformation role.

One alternative approach that might work for some major organisations... is to take on a Digital Non-Exec Director. This would be someone who has the full compliment of online skills, to see the company leaders through this evolutionary period. This would have the benefit of integrating a CDO-type person into the organisation, without the need to restructure the board.

CMO vs CIO : the battle for data

"In the future, wars will be fought over water" is a phrase you hear quite a lot these days. And it might well be true... As important global resources become more scarce and as rulers realise exactly what matters (in this case, the health of their population).

However, in the boardrooms across the world, there may well be a number of battles. But this time fought over something very important to both technologists and marketers. Data. More precisely, customer & user data, along with any associated information that helps the organisation function / sell / behave better. Consequently, there is a scenario that is looking increasingly likely, the showdown between the Chief Marketing Officer (AKA the marketing director) and the Chief Information Officer.

Its my belief that as data relating to the customer grows and becomes more and more useful (along with the ability to model and then predict future likely behaviour) these two company board members are the two most likely to both stand up and stake their claim to its ongoing ownership. Customer transactions in branches / stores / premises, their online browsing history, their engagement across social media channels and their contact preferences will be like water to these roles.

However, this doesn't necessarily have to be the case. And not just because I'm advocating peace and love in the exec suite, but for a different reason... It has been a prediction of mine for a while now, that the roles of the CMO and the CIO will evolve and in some cases merge, quite possibly around the need to have a single point of data ownership.

This could therefore give rise to a new role seated around the walnut table of major organisations, the CDO. But not the 'Chief Digital Officer' that I have already mentioned a couple of times on this blog, but that of the Chief Data Officer.

What role does your Chief Digital Officer have?

At the beginning of this 2012 I pulled together a post on the emerging role of the Chief Digital Officer (CDO).

Over the last few months I've been considering this role more and now think that this is a job that will become more commonplace in the future. And it would seem that I'm not alone in thinking this, with executive recruitment company Russell Reynolds now stating that

The spike in demand for Chief Digital Officers has been felt globally. In Europe, the number of search requests for this role has risen by almost a third in the last 24 months

So what should the Chief Digital Officer should be responsible for in a major organisation?

Here's my suggestions:

• Having a seat on the board that champions the implementation / growth / adoption of digital technologies & practices, whilst contributing to the overall business strategy
• Online best-practice guidance and mentoring for all executive level staff
• Owning the company's digital strategy (including the digital roadmap of future features and functionality)
• Managing the implementation and management of online services (where there's no dedicated business owner)
• Ensuring the Digital Strategy aligns with overall IT, operational and product / commercial roadmaps
• Overseeing the overall digital user experience (e.g. every online touch point)

The Chief Digital Officer should also have the following experience:

- Experience of working within a blue chip organisation on a global scale (e.g. FMCG, Manufacturing, Online, Retail, etc.)

- Knowledge of Digital Marketing (from search engine marketing through to complex attribution)
- eCommerce best practice (conversion optimisation, merchandising, pricing and fulfillment) 

- A sound grounding in technical architectural and operational standards
- A history of large project / programme delivery

Chief Digital Officer - why your company needs one

There's a nasty jibe in some senior technology circles that the title CIO stands for "career is over". However I disagree and have my own thoughts on this.

The title and role of Chief Information Officer (CIO) is now getting quite long in the tooth, but more importantly the reliance on the word 'Information' here is the issue. These days, the competitive edge within a lot of companies doesn't come from their use of information (processed data), it comes from the migration of systems, processes and roles to an online way of working. The web has not only taken over our personal lives, it has also taken over (or taking over) our business ones too. Software as a service (Saas), Platform as a service (Paas) and Infrastructure as a service (Iaas) ... plus others, are all cloud-based approaches to online computing and each has its benefits and challenges. Now these are all typical subjects that typically would come under the remit of the CIO.

But when you then factor in the need to provide connected digital marketing services (e.g. an email or CRM system), eCommerce transacting functionality (along with the associated online merchandising and sales optimisation expertise) and the complex communication and customer services requirements that the online world needs, the experience and skills of pure technologist start to look less than comprehensive.

But who is actually hiring Chief Digital Officers right now? Nobody that I'm aware of, but maybe in the future we will see this role come to some prominence.