How To Budget A Digital Transformation Initiative Despite Unknown Risks

Imagine you’re the CIO tasked with driving change in a digital transformation at your company. You and other leaders have marshalled the organization toward the intended goal, and everyone has voiced commitment to achieving the breakthrough performance you expect. You’re at the start of year two of the initiative, but it’s not playing out the way leaders had hoped. The folks holding the purse strings aren’t on board with funding additional investment for more technology and want to pull the plug on the planned change. Sound familiar? The problem is all too common. What many executives don’t realize is this situation indicates a trust problem, not a budgeting problem.

Herb Kummer, a CIO who has led digital transformation at several companies, learned firsthand how the budgeting process can negatively impact the chances of success in a transformation initiative. He told me about a situation where a company ran into a transformation roadblock due to major budgeting delays.