Exploring Top Management Support for Digital Transformation: A Case Study of a European Financial Services Organization

Since the beginning of the 21st century, digital transformation has emerged as a key opportunity for work organizations. It promises to integrate back office and front office information systems and create new value for organizational products and services. Digital transformation affords many organizations to move beyond the confines of their own structures, systems, and processes and deliver a more personalized experience for their customers. Yet, the implementation of such transformations has not gone well. Studies reveal over 90% of such initiatives have failed to deliver in their promised benefits, typically reported as underperforming in terms of project scope, over running on scheduled timelines, and overspending on expected budgets. A review of the literature reveals the importance attributed to top management as a key success factor in supporting digital transformation implementation. Yet, there remains a lack of empirical understanding about this topic. This study sought to fill this gap in knowledge by conducting a longitudinal exploratory case study methodology. The study was conducted between 2017 and 2021 within a Financial Services organization (using the pseudonym “Peoples Bank” to anonymize the case organization) within the European Union. The digital transformation initiative began in 2016 with a projected cost of €500 million, however by 2021 over €1 billion had been spent on the project. The findings reveal the challenge associated in leading digital transformation and develop a four-factor framework that illustrates key managerial actions top managers can apply in supporting such initiatives.