The role of trustees in digital transformation

Three in four charities are working to progress their digital tools, skills, infrastructure, service delivery, and more, according to the 2022 Charity Digital Skills report.

 

Indeed, 82% of charities say they see digital as more of a priority since the pandemic, having adapted their services and fundraising to fit with social distancing restrictions and changing circumstances.  In 2020, one in three charities had to cancel services due to lack of skills or technology to deliver them.

 

Though the pandemic may have emphasised the importance of adopting digital technology, there are still many charities who have yet to fully embrace the opportunities it provides. A report by Salesforce.org found that only 12% of charities were considered “digitally mature” – these charities are four times more likely to achieve their mission’s goals, twice as likely to see improvement in their overall efficiency, and report higher levels of motivated employees.

 

Digital is an important part of how charities operate now – or should be. Charities that don’t invest in it are demonstrably less likely to achieve their goals. It can help charities save time, reach more people, and fundraise better – in an increasingly cashless society, digital fundraising is not a nice-to-have anymore, it’s a necessity.

 

It is vital that charity board not only understand the importance of digital technology, but lead the charge on investing in it. In its latest report, Digital Transformation and You, board software providers OnBoard says: “The critical point is that [digital transformation] is more than simply having services or apps available online. It means transforming how your business operates and engages with staff, stakeholders, and customers.”

 

Below, we share more suggestions from the Digital Transformation and You report on how charities can make their digital transformation projects a success.

 

 

How to make digital transformation a success

 

Define your pace

 

The pace of your digital transformation (DX) will depend on a number of factors: your capacity, your budget, and the scale of the project, to name just three. Charities can either choose a timeline in which change is incremental or all-at-once.

 

For example, you could choose to migrate your data into a cloud-based system – this can be done gradually, allowing for employees to get used to the changes and leaving time for those in charge to work on other tasks, or quickly, so that everyone knows where they can find that data after a set date.

 

In the end, it’s all about managing risk. If you are able to identify the risks in your digital transformation, you can plan a timescale that leaves time to mitigate, or even avoid, those risks.

 

OnBoard states that having a strategy in place is key: “[Y]ou must clearly understand what any DX project aims to achieve, then put in place resources, metrics, and processes to allow it to succeed.”

 

The report also advises that charities must also understand the risks of not investing in digital – if you risk getting left behind by the rest of the sector, how will this affect your organisation’s services, fundraising, and ultimately, survival?

 

Audit your skills

 

As the report points out, “Boards must ensure they have the skills to understand and implement DX processes.” As a key part of any charity’s operations, having a good understanding of digital allows boards to ask the right questions, understand the challenges, and crucially, identify when something is not working as it should.

 

OnBoard notes that there is increasing pressure on boards to talk more about their skills, and many companies are already disclosing their skills, expertise, and the subcommittees they have created to fuel digital transformation.

 

“Establishing a skills matrix is a practical first step, but it’s not enough,” the report concludes. “One solution could be to get internal experts to ‘buddy up’ with board members, helping them gain new skills and better understand modern technologies. When feasible, it’s an excellent system, as it preserves the directors’ valuable, existing skills while complementing them with new knowledge.”

 

Take the lead

 

The scope of digital transformation is largely determined by the charity board. The board should be well-aware of digital trends in the sector and the challenges their organisation faces. It is not only about choosing the appropriate technology to adopt, but helping the people who are going to use it day-to-day and showing them the way.

 

“A clear understanding of your DX strategy means the process can be broken down and progress reported,” advises the report. “Understanding what the scope is for the transformation’s components. This isn’t about technology per se. Instead, it’s about people and management. Change management remains a vitally important skill and discipline, regardless of the changes’ nature.”