It seems that every couple of years a new executive role appears, and more often than not, these new roles are technology-related. In the past, all things technology generally fell under the domain of a CIO (chief information officer). As the technology began to separate from the organization required to manage it, the CTO (chief technology officer) role became prevalent, and more recently additional roles like the CISO (chief information security officer) have been created, crowding out the C-suite in many organizations. Digital transformation is the latest technology trend, and many companies are asking whether they need a dedicated role to manage their digital efforts. Before hanging a CDO sign on the nearest vacant office and calling your favorite headhunter, consider why a CDO might help or hinder your digital efforts.
One of the greatest challenges to determining whether or not you need a CDO, and ultimately whether or not that person will be successful, is defining the role you want them to play in the organization. The overused term "digital" encompasses a wide-ranging basket of domain knowledge and expertise at most organizations, but is perhaps most easily understood as fundamentally changing an organization with technology (and technology-based methods) as an enabler. For example, your digital efforts might involve creating a new technology-based product that's brought to market using Agile techniques.
In the best case, your organization will be ready to embrace new ways of thinking and working, and find a leader who can lead the charge. In the worst case, you'll hire another IT manager with no real power or interest in creating change, who will do little more than engage in turf battles with your existing IT leadership, so it's critical that you ask hard questions about what this role should accomplish, and whether your company is ready to embrace broader change.
