How do Directors Assess Digital Capabilities?

How does a digital director help the board assess the digital capabilities of the organization?

First by helping other board members understand the capabilities of the team by assessing the company’s leadership team’s awareness, experience and level of success with digital transformations, channels and products.

A digital director can assess an existing, unproven management team and conclude that they have the right combination of talents to be very successful in the digital realm. Or, a digital director can help identify where more experience and skill is required, and in some cases help recruit the right person. 

Investment focus is another good way for the board to assess the digital capabilities of the firm. By comparing digital investment spend against other IT, marketing or operations projects and ongoing maintenance cost, the board will get insight to how leadership leverages digital and understand if the company over or under invests in digital customer or operations infrastructures.

Understanding the competitive set, especially new entrants to the industry or game changing new ways to market, sell, design or produce product and services, is the responsibility of every digital director. Being up to date and understanding the long term implications of new digital technologies is invaluable to boards who have to commit to longer term strategic directions and time investments.