Over the past few weeks, I have had several interesting conversations with prospective clients that have all followed the same basic theme.

All were seeking tools to help achieve “digital transformation” (or whatever alternative expression you prefer). All the individuals I spoke with were VP level employees – people with influence and authority within their respective organizations. And all of them seemed very qualified and competent.

But they all had something else in common – none of them knew exactly what they wanted to accomplish with the various technologies they were evaluating.

Each of the prospective clients knew they wanted to improve their organization in some form or fashion, but they had not thought through the details of that transformation. They had yet to understand why transformation is important to their organization. They had not crafted a picture of what the end-state looks like (a vision for change). They had yet to outline the logical advancement and implementation of that vision into the organization (a strategy).

Instead, they all began their digital transformation journeys by pricing different software and watching demonstrations.

What is strategy?

In his classic article, What is Strategy?, Michael E. Porter makes the observation that, “…bit by bit, almost imperceptibly, management tools have taken the place of strategy.” This statement is found under the article’s first heading which is entitled: “Operational Effectiveness Is Not Strategy.”[1]

Admittedly, this article has been around a while – it was first published in the November-December 1996 issue of the Harvard Business Review. But it has achieved longevity for a reason. It is full of insights that are still helpful to global and digital organizations operating in 2022. Regarding the quote above, I would submit that many organizations today understand “digital transformation” in the same way organizations understood “operational effectiveness” in 1996. Both are mechanisms employed by businesses to execute on organizational strategy more successfully.

Certainly, Porter’s idea is correct – digital transformation is not organizational strategy. However, successful digital transformation does require a clear vision and strategy for implementation. Concerning this implementation strategy for digital transformation, tools and technology are certainly part of it, but they are not the strategy itself.

The strategic void

And I think this is, perhaps, what my perspective clients were missing. They had the admirable desire to execute on organizational strategy more effectively. They knew that digital transformation is a mechanism that can assist with that. But they didn’t have a vision for the end state of that transformation, nor a strategy to achieve that end state vision. Using Porter’s language: Bit by bit, almost imperceptibly, they had prioritized the evaluation of new technology above the development of a clear vision and strategy.

In other words, they were putting the cart (technology) before the horse (vision and strategy). They were taken up with evaluating software, but without the clarity and direction provided by a clear digital transformation vision and strategy. This approach to software evaluation almost always results in endless conversations that drag on, rarely yielding a purchase, or, in a premature purchase that ends in disappointment when it is inevitably discovered that the technology will not drive digital transformation on its own.

Prioritizing vision and strategy

So, how could they have avoided both of those scenarios? How can organizations avoid getting sucked into either the endless “evaluation loop” or the “disappointing purchase”? To put it positively, how can organizations drive effective technology evaluations and lead successful technology implementations?

Again, I believe a clear vision and strategy for any digital transformation project will help greatly here.

What is a vision?

A vision is a simple, accurate, and realistic picture of what the future looks like, post-digital transformation. Simple, in that stakeholders across the department or organization can understand it. Accurate, in that the desired outcomes are articulated up front. And realistic, in that known sacrifices are acknowledged and justified.

That vision should also include some explanation on why a move to the future state is necessary. That is to say: What problems are being solved for? Why should organizational stakeholders hop on board the digital transformation train? Ask from the end-user’s perspective: “What’s in it for me?”

What is a strategy?

A strategy provides the high-level roadmap for how the vision will be achieved. We are not talking here about detailed tactics, but about roles and responsibilities, constraints (things such as corporate policy, internal capability, resource availability, etc.), priorities, deliverables, milestones, company culture (identifying the blockers and the champions), communication channels, and so forth.

The details of a strategy will be shaped by the type of transformation in view. If we are pursuing transformation through process management and automation, for example, we will want to include items that address our process framework and architecture, process language requirements, governance methodology, etc.

Using vison and strategy to evaluate and implement technology

The insights gained from a clear vision and strategy will help clarify functional requirements for any supporting technology. These requirements will lead to a more effective product evaluation. A digital transformation vision and strategy can help get us out of the “evaluation loop” mentioned above.

Furthermore, these items will serve as a foundation for implementation and adoption of the technology once purchased. The vision statement is a great tool for aligning business stakeholders in a particular direction. It can help motivate them to take positive action that will lead to success. The strategy will help inform the creation of specific tactical plans. Questions regarding scope, stakeholders, timelines, and messaging are much easier to address with a high-level strategic roadmap in hand.

So, if you are thinking of pursuing digital transformation – great! But I would encourage you to resist the temptation to start that journey by shopping for the best digital transformation technology. Instead, understand what the end-state looks like and capture it in a simple, accurate, and realistic vision. Then craft the high-level roadmap for how that vision will be accomplished and document that outcome in a strategy. These crucial tools will help you select the best technology for your needs.

I have mocked up an example of what a simple vision statement might look like for a digital transformation project centered around process management and automation. Feel free to download it and use it as a starting point for your project.

There are a couple of other blog posts here at SimplifyingProcesses.com where the relationship between technology and transformation are explored: Technology wagging the dog? and Planning for BPM implementation

[1] Porter, Michael E. (1996, November-December). What is Strategy? Harvard Business Review. https://hbr.org/1996/11/what-is-strategy