In 2019 companies invested
billions in digital workplace initiatives. Based on forecasts from IDC, that
spending will continue. Eileen Smith, program vice president for their Customer Insights and Analysis group, predicts that “worldwide DX technology
investments will total more than $7.4 trillion over the next four years.”
That increase in investments
signals that companies also need to move toward new metrics to accurately
measure digital workplace program success.
Let’s start with, “What
digital workplace KPIs are most viable in these early stages to showcase
ROI?” Here are three outcomes you may
measure as a starting point:
- Time/expense savings resulting from adoption of collaboration and virtual meeting technologies
- Levels of employee engagement (likes, reads, replies) within new communication channels
- Operational cost efficiencies resulting from streamlined HR processes
Next, companies should align outcomes with KPIs. The Adaptive Insights blog defines a KPI as “a metric used to measure factors that are pivotal to the success of an organization”. Examples of KPIs that align with the above-mentioned outcomes:
- Faster time from problem identification to decision-making tied to collaboration tool utilization that lessens obstacles to scheduling and attending meetings
- Increased employee retention and employee satisfaction rates tied to engagement levels with new communication channels
- Reduction in hiring costs tied to implementation of streamlined onboarding tools
ROI can be shown for your
digital workplace programs through establishing achievable outcomes,
implementing measurable KPIs that tie metrics to those outcomes and making
adjustments along the way to drive continued efficiencies and productivity for
business growth. However, it’s important to ensure that the KPIs identified are
meaningful and “accurately represent business
value at your organization”.
Taking Responsibility for DX Metrics
Driving success for DX
initiatives rests on the shoulders of digitally savvy leaders who model best
practices. In this McKinsey study, Unlocking Success in Digital
Transformation, 21 keys to
success were identified, nine of which highlight the importance of senior
leaders, business process leaders, employees, and key business partners as
critical factors to success:
- Engage initiative leaders (leaders of either digital or nondigital initiatives that are part of the transformation) to support the transformation.
- Add one or more people who are familiar or very familiar with digital technologies to the top team.
- Leaders engaged in transformation-specific roles encourage employees to challenge old ways of working (processes and procedures).
- Senior managers encourage employees to challenge old ways of working (processes and procedures).
- Redefine individuals’ roles and responsibilities so they align with the transformation’s goals.
- Provide employees with opportunities to generate ideas of where digitization might support the business.
- Engage employees in integrator roles (employees who translate and integrate new digital methods and processes into existing ways of working to help connect traditional and digital parts of the business) to support the transformation.
- Engage the leader of a program-management office or transformation office (full-time leader of the team or office dedicated to transformation-related activities) to support the transformation.
- Leaders in transformation-specific roles get more involved in developing the digital transformation’s initiatives than they were in past change efforts.