Explaining the Slow Pace of Digital Transformations
A survey of organizations reveals that executives and employees are open to digital overhauls, but impediments force them to advance at a slow pace. According to L2’s Insight Report on The Digital Organization, nine in 10 organizations are undergoing a digital transformation, but just 14% believe they are moving fast enough. Furthermore, there are major disconnects between employees at different levels. For example, 39% of surveyed CEOs said the company’s pace of digital transformation was “about right” while 64% of managers thought their organizations were moving at a “slow or “very slow” pace towards digital transformation.
Several barriers to transformation exist, but the biggest is talent, cited by 59% of executives. Just 19% of businesses believe they have the needed to develop and map a digital strategy and just 15% believed they had the skills and capabilities to guide a digital strategy. As a result, a war for hiring has broken out among organizations, which is discussed in L2’s latest Insight Report.
So who is winning in this war for talent? Definitely not CPG or luxury brands. L2 studied seven consumer enterprises in those categories and discovered all are losing talent to technology companies. Procter & Gamble and L’Oréal were especially suffering from brain drain, having lost 625 and 303 individuals to technology firms.
It might appear as if these companies are powerless in retaining digital talent lured by the likes of Google, but that is not the case. Of Fortune 500 companies, Amazon and Google have the shortest employee tenures. With their expansive resources, they can afford to make hiring mistakes. Compensation is performance-based as well. As a result, the media turnover rate at these companies is one year vs. P&G’s average tenure rate of 6.7 years. To retain digital talent, brands must think about investing in recruitment, restructuring compensation, and areas in which to maintain a differentiated competence.
See full post on the L2 Daily
VP of Product Innovation / GM of the AgeTech Collaborative? | Public Company Founder | Board Member | AI Builder | Patent Holder | Writer | I live in the near future
9 年i've found that "lack of talent" was not really the impediment. more an unwillingness by incumbent talent to change (because of understandable ignorance and fear) and an inability of the leaders to lead (because of inexcusable ignorance and fear)
International Relations | Board Member: Kaminstein Family Office, MediaLab, American Club Rome, ProBusinessPAC
9 年Having worked for and with LVMH for 10+yrs I can certainly agree with the points of the article. I was always surprised at how slow LVMH has been in thier digital strategy for retail vs thier leading ability in bricks and mortar. Im sure we will see a lot more digital companies poaching LVMH's branding executives in the next 2-5 years to turn these digital brands sexy. Target #1 should be Ebay.
Founder: Maverick Leadership
9 年Scott, great post. The talent gap, especially related to digital transformation, appears to cut across just about every industry and market. Much of the challenge is about pace and ability. Does your company have the requisite talent that can handle the complexities associated with a digital transformation and can they go at, and sustain, the pace necessary? A high turnover rate, as associated with Google etc, is most likely a good thing given the talent gap. You've got to kiss a lot of frogs to find the princes.