Identifying key leadership competencies for digital transformation: evidence from a cross-sectoral Delphi study of global managers

Abstract

PurposeEven with the recognized impact organizational leaders have on the outcome of digital transformation (DT), a comprehensive scholarly understanding of the competencies that leaders must possess to lead a DT to success is lacking.Design/methodology/approachTo derive and list the competencies considered by experts as necessary for managing DT, the authors recruited 18 international senior managers with relevant experience and applied the Delphi method to survey the managers. Upon the completion of three survey rounds and the authors modifying the response list until consensus was reached, 39 items were shortlisted as constituting key competencies for managing DT. Furthermore, the authors engaged in inductive theorizing to derive propositional statements using these findings.FindingsThe practitioners agreed on visionary thinking, agility, understanding the value of data, data-driven decision-making, knowledge of strategy and accepting change as the most important requirements for managing DT. Through inductive theorizing, the authors further derived that the seven discovered clusters fell into two broader competencies – behavioral and strategic – and that each behavioral competency would have varying importance depending on the country and industry that the organization operates in.Research limitations/implicationsAs is typical for Delphi studies that involve multiple survey rounds, the study participant response rate was moderate. The implications of this study, in finding that a variety of leadership competencies are needed to ensure successful DT, validate prior research that people, not technology, drive DT.Practical implicationsThis study helps mitigate assumptions that successful DT processes are only possible by hiring technological experts, as doing so highlights the importance of behavioral leadership competencies.Originality/valueThe study is one of the first to interlink digital leadership with DT by inductively theorizing behavioral and strategic competencies. The authors also establish that contexts are vital in determining which aspects of leadership competencies are deemed most important in driving DT.