Still, the fact that nearly four-fifths of companies don’t yet have a CDO
Since digital is far more than technology—it encompasses new experiences, ways of working, and business models—finding a single, all-encompassing CDO can be like hunting for a unicorn
by Katherine Graham Shannon and Scott Snyder
For Heidrick & Struggles
Digital is everywhere these days. It’s the underpinning for increasing customer engagement, driving efficiencies in a company’s operations, and shifting mind-sets to enable organizations to increase their agility and speed of innovation. Digital’s prevalence and prominence explain why companies are considering hiring a chief digital officer (CDO) to ensure they are doing everything possible to harness it. A 2018 Strategy& survey found that 21% of companies have a CDO in place, up two percentage points from 2016.1
Still, the fact that nearly four-fifths of companies don’t yet have a CDO highlights the lingering confusion surrounding what digital leadership should look like at tech-enabled companies, including which leadership roles create real value in a digital-driven market. That’s understandable. Business needs continue to evolve faster than ever, and many companies may be trying to gain more clarity on how a CDO could complement their current team of senior executives, which can include a CIO, CTO, chief innovation officer, and CMO, among other roles. Since digital is far more than technology—it encompasses new experiences, ways of working, and business models—finding a single, all-encompassing digital leader can be like hunting for a unicorn; the following chart shows how some of these roles overlap today.
Throw in vastly different priorities depending on a company’s digital maturity and industry—for example, an online retailer versus a manufacturer—and it’s no surprise that companies are struggling to determine how a CDO could elevate their digital game.
However, the first thing CEOs and boards must recognize is that hiring someone with the CDO title may not be the only or best way to achieve their digital goals. Defining the right digital leader or leaders and getting them in place should be shaped by the company’s unique needs. To further explore how several top organizations are tackling the digital leadership challenge, Heidrick & Struggles conducted in-depth interviews with business leaders at companies that are far along in their digital acceleration journey. Their examples can be helpful to CEOs and boards trying to find the right organizational model and executive talent to shape and execute their digital agenda.