Learning to lead

Aileen Allkins at elev8 digital skilling argues that senior leadership can’t ignore their own digital skills gap

In the latest PwC Annual Global CEO survey, skills shortages and technology disruptors were nearly tied+ for third place by CEOs when asked what factors will impact their business’ profitability most over the next 10 years. Labour and skills shortages narrowly inched ahead, with 52% of CEOs expecting this challenge to affect profits to a large extent. Technology disruptors followed with 48%. 

CEOs and other members of the C-Suite are clearly aware of how investing in emerging technologies and the skills required to take advantage of these will impact their business, but many overlook where they themselves fit into this balancing act. 

For example, Salesforce reported that only 54% of senior leaders felt they had the digital skills necessary to be effective in the age of digitalisation. External analysis of digital literacy in the boardroom paints an even more concerning picture. A study by MIT found that only 23% of CEOs are considered ‘digitally savvy’, and just 7% of large companies currently have a tech-savvy executive team.   

Clearly, the skills gap that is preventing businesses around the world from properly investing in and utilising emerging technologies is an issue that extends to the very top echelons of an organisation. It may be an elegant solution for senior leaders to assume that if they are surrounded by technically competent teams, their businesses can still succeed in their digital transformation and growth targets. 

However, in practical terms, it is just as important for leaders themselves to keep pace with the development of new technologies and equip themselves with relevant skills and knowledge.  

Leading from the front

Digital transformations and investment into new technologies are high-level, long-term decisions, and so naturally these inexorably require strategy input and sign-off from the C-suite. Transformations also extend beyond the initial investment, as once the technology has been bought, it must be effectively deployed within the business and used by the right talent with the right skills. The C-suite should have as much a role in this second phase of a digital transformation as the first. 

Analysis from McKinsey on the results of digital transformations, and the management and allocation of talent to support them, at 200 large-scale enterprises found that those which directly involved the C-suite in adapting talent management and operating models had much better long-term success. 

To effectively invest in digital tools, confidently strategise, and allocate talent for a digital transformation, C-level leaders must operate from a place of knowledge and understanding. Investing in upskilling for emerging areas of tech, such as AI and automation, provides this foundational skill base that will enable senior management to identify areas that can benefit from these new technologies, and lead from the front on their successful integration into business operations. 

Keeping the business safe

As businesses increasingly look to digitalise, automate, and streamline operations with new technologies, it is imperative that protecting the business from cyber-attacks remains a high priority. With the global cost of cyber-crime reaching up to a staggering $575 billion per year, according to IBM estimates, it is little wonder that cyber-security has grabbed the C-suite’s attention. 

However, a recent study by the University of Oxford has found that nearly three-quarters of CEOs were uncomfortable with making decisions about cyber-security, despite every CEO surveyed confirming that the buck stopped with them on cyber-security. 

Moreover, there are considerable gaps in cyber-security confidence between different seats in the boardroom. Where CIOs and CROs tend to have high confidence in their organisation’s cyber-resilience, CEOs, Chief Human Resources Officers (CHROs) and CMOs report far less confidence. 60% of CFOs and CMOs also feel the least engaged in threat management activities, despite being responsible for large amounts of data desired most by hackers. 

These points of disconnection are chinks in a company’s cyber-armour. As businesses integrate new digital processes, automation tools, and storage systems in different departments of a business, the CIO and the business’s IT team shouldn’t be solely relied on to keep these operations safe. 

Department heads should be equipped with the cyber-security skills needed to safely implement and oversee new technologies themselves, requiring them to invest in the training and upskilling necessary to better understand the threats their companies could face and how to defend against them. 

The benefits of a digitally literate board

The benefits of a digitally literate C-suite extend beyond investing in and implementing digital transformations confidently, effectively, and safely. They have a direct impact on a business’s performance. 

The study from MIT referenced previously found that businesses with a digitally-savvy leadership team outperformed rivals without one by as much as 48% with regard to revenue growth and valuation. 

As new technologies like AI continue to flood the market and attract the attention of businesses, the gap between available products and businesses with the skills to use them is only widening.

Whilst C-suite and senior leaders are readily exploring options to grow the tech capabilities of their teams, it is vitally important that they also ask themselves ‘what new digital skills do I need to learn too?’

Aileen Allkins is CEO at elev8 digital skilling, an organisation that helps large enterprises and governments upskill and reskill their workforce, supporting them to shape their digital transformation journeys and accelerate their technology adoption

Main image courtesy of iStockPhoto.com