Digital Alteration Boosting Annual Performance Targets of CEO
Digital alteration is now an important term since yearly performance targets of a CEO and in some events even reward is getting connected to it. This is due to increasing number of CEOs taking on the responsibility of boosting digitally.
Firms across segments such as FMCG, manufacturing, retail, comprising RPG, Aditya Birla, Marico, Godrej, among others are connecting a CEO’s year-end KPI and target with digitization. This makes them responsible for digital development as it turns out to be a question of market growth and leadership.
“Every serious business procedure is being tapped by digital. It is creating both consumers as well as customer experience better and business processes well-organized. The boardroom is aiming on digital and each plan is more and more focusing. As a result, it is up-and-coming rapidly as another target for each CEO,” claimed Chief Executive Officer at Aditya Birla Group of carbon black business, Santrupt Misra. The connection of CEO compensation to digital progress relies on how the board has organized the targets for the CEO.
“If it is an essential part of his targets, then clearly it will be connected to his reward relying on the reward system of the firm. It could hamper his yearly appraisal relying on the long-term and short-term incentive strategy of the company,” he said to the media in a statement.
RPG has counter digitization as a target for several of the CEOs inside the team who as digital investors are accountable for recognizing the correct area to impose digital. This will ensure that the change management and the business takes place as per the digital procedure that the team is leading.
“As the CEO, you are viewed as the individual who knows how digital will affect each feature of the business. And the only individual who can view 360 degree in the organization is the CEO himself. Therefore, the CEO has to take the responsibility of leading the digital for some time,” claimed Sachin Nandgaonkar to the media in an interview. Nandgaonkar is CEO and president of specialty sector business, which includes Raychem RPG, Harrisons Malayalam, and RPG Life Sciences.
“This is diverse from leading culture change or IT strategy or leading an operating model change. And the CEO himself has to put on the hat of a digital investor,” claimed Nandgaonkar to the media in a statement. He is also accountable for leading digital proposals across the group.