Chapter 30Ensuring impact by tracking what matters
Don't mistake activity for achievement.
—John Wooden
A surprisingly high number of CEOs don't have a clear view of how their digital and AI transformation is doing.1 Are we making progress toward a more digital business model? Are we building digital capabilities like we said we needed to? Is this paying off in terms of customer experience and bottom-line impact?
No one will debate the need for measuring transformation progress. But the question is what to measure and how. Performance tracking can quickly crumble under its own weight when poorly designed and without the right supporting tools.
A quality performance infrastructure includes (1) designing the right performance management KPIs, (2) tracking with a stage-gate process and supporting workflow tools, and (3) standing-up an effective transformation office.
Performance management architecture and KPIs
Being clear on what performance metrics to measure is half the battle. In digital and AI transformations, key performance indicators (KPIs) tend to fall into three families: value creation metrics, pod health metrics, and change management metrics (see Exhibit 30.1).
Value creation tracking through business/operational KPIs
Digital solutions typically target one or a few business/operational KPIs that can usually be translated in financial or customer ...
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