Understanding Leadership Challenges and Responses in Data-driven Transformations

Abstract

The purpose of this study is to better understand challenges and typical responses of leadership in data-driven transformations. Increasingly organizations aspire to practices of data-driven decision making. In this context the transformational aspects transcend traditional change management processes and pose new and different challenges to leadership. To explore these challenges and typical responses we performed four in-depth case studies of organizations that are more mature in terms of their transformation towards a data-driven organization. Propositions derived from change management and digital transformation literature guide our exploration. Our findings help understand the key role of leadership in a data-driven transformation, particularly through (1) continuously communicating and explaining the value of being data-driven, (2) securing and managing critical resources, including data and analysts, and (3) creating a data-driven culture. Our study contributes to literature by combining insights from change management and data-driven transformations to better understand the dynamics of leadership in this context.