Why CEOs and CFOs need to drive digital strategy

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In the world we operate and live in, not having a digital strategy means being left behind and becoming irrelevant. Yet only 50% of charities have one, according to the Charity Digital Skills Report 2024, an increase of only 1% since 2020.

It’s essential that charities invest in digital and having a strategy sets clear objectives and a direction of travel. But a strategy alone is not enough if there isn’t buy-in, investment, and trust from leadership.

Digital transformation should not be the job of one person, or one team, but rather a blend of senior leaders who have a range of skills to help drive digital forward within their organisation.

The benefits of a digital strategy

There are many benefits to having a digital strategy that go beyond the obvious benefits such as greater efficiency, a better user experience, and optimised websites and donation forms. The additional benefits include better staff buy-in and retention, improved agility and greater transparency.

The benefits of involving your CEO and CFO

Alignment with business objectives

A CEO has oversight over the whole organisation and is therefore best placed to ensure that a digital strategy aligns with the overall business goals.

A CFO’s involvement in digital strategy is essential for ensuring that digital transformation goals align with financial planning. They are best placed to know what is achievable with the finances available.

Allocating budget and resource

Depending on your starting point, implementing a digital strategy can be costly. As charities, it’s important that we spend money wisely and do our due diligence when it comes to purchasing software, hardware, replacing outdated systems, and so on.

Once you’ve worked out what you need, CFOs have the authority to make decisions and can secure the necessary budget and resources needed not only to develop a strategy but implement it too. This also includes training and upskilling staff and volunteers.

A CFO can provide critical insight into budget allocation and help ensure that the investment in digital technology, platforms, and roles is financially sustainable.

Getting organisational buy-in

The best way to get people involved in a strategy and to understand its relevance to their role and its importance to the organisation is to get their buy-in from the start.

CEOs can get the organisation excited through key communications and by leading by example. They and the CFO should involve the board of trustees as they may need to sign of budget to implement the strategy.

CEOs can break down silos that can hinder digital transformation

Often, digital transformation needs a culture of innovation and permission to test and learn - and sometimes fail. The CEO, and the senior leadership team, set the culture at an organisation and can help break down silos by encouraging transparency and accountability.

Having a CEO who understands not only the potential of digital, but its agile nature, is so important to ensure the success of a digital strategy.

The ability to spot risks (and opportunities)

A CEO is also best positioned to spot potential risks and to mitigate these according to the charity’s risk register. They can also advocate, to the board, for more appetite for risk when it comes to digital.

On the other hand, a CFO can mitigate financial risks by understanding the financial costs of implementing a digital strategy. They can also identify any cost-saving and financial opportunities in ways that other leaders can’t.

Encouraging cross-collaboration

Digital affects everyone in an organisation and requires various expertise.

Bringing together senior leaders, such as the CEO, CFO, IT team, fundraising, digital, and more helps combine expertise and skills to ensure that the strategy meets everyone’s needs.

 The CFO plays a vital role in ensuring that teams know what is financially realistic and viable when it comes to developing and implementing a digital strategy.

Introducing the Digital Strategy Accelerator

The Digital Strategy Accelerator, formed from the partnership between Dot Project and Charity Digital, with funding from identity solution experts Okta, is designed to help charities design an effective strategy. 

We will create a learning platform that provides practical lessons leading to long-lasting organisational change. The Accelerator will give you the tools to create and implement a robust digital strategy.

You can get involved today. For charities hoping to reap the benefits of the Accelerator, please register interest by subscribing to our newsletter. Or check out the content on the Digital Strategy Accelerator Hub in the coming days, weeks, and months. Or simply register your interest below.