It\u2019s easy to find people who are interested in talking about digital transformation (DX). It\u2019s hard to find people who have experience and knowledge in doing it from the bottom up.\u00a0 Kevin McGuire (@potentiam_km) is one of those hard to find people.\u00a0 He built a DX team within a Fortune 100 financial services company from a team of 10, to a team of 70.\u00a0\nI asked Mr. McGuire what it takes to make DX-type initiatives succeed within large existing organizations.\u00a0 He gave me the following suggestions.\n1.\u00a0 When a company begins their transformational journey, they must first define the \u201cBusiness Why\u201d behind the reason for their DX initiatives\nIn other words, what is the business goal that they wish to achieve.\u00a0 This process should be driven from the outside in.\u00a0 Companies need to start from a customer driven perspective to best align their transformation efforts with their customers current and continually evolving needs. For example, do they need to:\n\nEnter or create new markets\nEnhance the customer service and\/or customer facing experience\nProvide new product offerings\nEnhance organizational efficiency\nProtect themselves for competitive companies\nIncreased speed of delivery\n\nThe reason the \u201cWhy\u201d is important is because it allows the DX and the company to visualize future success and enables them to concentrate their efforts and resources in a single cohesive direction.\u00a0 Measures of success aligned to the \u201cBusiness Why\u201d must also be defined.\u00a0 This positions the team to start selling the DX concept within the organization with the intent of removing roadblocks and gaining support.\u00a0 This internal selling plan has three steps.\n\nClearly define the \u201cBusiness Why,\u201d as already discussed\nDefine your overall DX strategy and how it can be best marketed internally\nClearly and transparently promote your DX initiative to all internal stakeholders with the specific objective of gaining their acceptance and support.\n\n2. You must create a dedicated DX team\nThe reason a dedicated DX team is required is because the people performing other operational roles, in additional to their DX participation, won\u2019t have the bandwidth to properly commit themselves to the time and mental rigger that DX implementation requires.\u00a0 This team must also have the correct mix of people, including those who understand:\n\nThe company\u2019s business, industry, and competitive landscape\nInternal company business processes and technical operations\nCross-industry skills with experience related to the \u201cBusiness Why\u201d\nExperience implementing the needed types of processes, technology and business changes required to assure DX success\n\nIt\u2019s possible that some or all of the people with these skills may be found within the company.\u00a0 But if not, these people must be brought in from external sources to assure that you have the right skills, knowledge and mix of people in place.\n3. Senior management in all effected organizational areas must understand and be supportive of the DX activities\nThey must be willing to drive this support, through communication, training, hiring, reorganization adjustments, compensation incentives, cultural adjustment and other needed factors down through their organizations.\u00a0 Without it, your DX initiative will die on the vine.\n4.\u00a0 Your DX initiative should have dedicated strategic funding, not simply a carve-out from your existing operational budget\nThis is required because DX is a long-term investment, not a short-term operational expense. \u00a0\u00a0Additionally, having separate funding illustrates to those working on DX, and the company at large, the value and importance of DX to senior management.\n5. Organizations must balance their traditional operational models with the introduction of new DX driven models and culture\nDX implementations are most often revolutionary and can cause conflicts related to existing operational processes and systems.\u00a0 As a result, the blueprint of how new DX processes and technologies, both procedurally and technically, will interface with the traditional operating model must be defined up front and acknowledged across the organization.\u00a0 If this is not done, then it will be difficult or impossible to integrate your DX initiatives into your existing and ongoing operations.\n6.\u00a0 You must assure that there is proper oversight from the beginning of your DX initiates from an enterprise risk, cyber security, testing and internal audit perspective\nTo assure that this is in place, use a \u201cshift left\u201d mentality.\u00a0 Namely, get these needed business functions involved before you need them.\u00a0 This early involvement helps assure easier passage through these potential organizational hurdles as you move toward implementation.\n7. Consistently monitor and measure success\nThe metrics for success related to the \u201cBusiness Why\u201d that was defined at the beginning of the journey, must be tracked and communicated across the organization.\u00a0 This will ensure that you stay focused, learn and adapt as challenges arise, and validate the approach you are taking.\nIn closing, the technology you are using to implement DX is only one of the many factors needed for DX success.\u00a0 Remember that DX at its core is a change in the business first and the movement toward new technologies second.\u00a0 As a result, these seven key organizational factors are key to your DX success.