Why 90% of Digital Transformations Fail: The Top Leader's Absence

Top Leader Absence: The #1 Cause of Digital Transformation Failure

After years of observing digital transformation projects, the author concludes that the single common cause of failure is top leader absence . Huawei CIO Tao Jingwen stated:

I have never seen a successful digital transformation driven by the technology department; digital transformation must be a top leader project.

Three Typical Manifestations of Top Leader Absence

1. Figurehead, Not Commander ("Hands-off Shopkeeper")

The most common pattern: the leader attends the kickoff meeting, serves as steering committee chair, then delegates everything to the CIO or a vice president. They treat transformation as a technical project, not realizing it fundamentally redistributes interests and breaks existing power structures. Without the leader's firm backing, any department can block progress.

Case: A company spent 5 million RMB on an ERP system. Halfway through, sales refused to use it, claiming complexity hurt closing deals. The CIO asked the leader to intervene; the leader said "sales is our lifeline, don't affect sales," leading to endless concessions to the status quo and project failure.

2. Only Results, Not Process (Short-termism)

Many leaders expect "invest today, see results tomorrow" and demand visible outcomes within one year. However, digital transformation is a long accumulation: large upfront investment, slow returns, typically 3–5 years for noticeable effects, 10+ years for full impact. When leaders only chase short-term results, teams resort to superficial process digitization instead of real process optimization and organizational change. The system goes live but business and efficiency remain unchanged.

3. Selective Support, Retreating at Resistance

Transformation inevitably meets strong resistance, mainly from middle managers whose power and work habits are threatened. Leaders often start resolute but waver when core veterans push back, saying "don't make it too tense" or "do the easy parts first." The hard problems never get solved, and the project stalls on the surface. As the author notes:

Digital transformation is not a banquet, not a showpiece, not embroidery. It is a revolution, a war without smoke. In this war, the top leader is the supreme commander. If the commander stays in the rear, defeat is certain.

Huawei's Reality: How Ren Zhengfei Personally Drove Transformation

Contrary to the belief that IBM consultants and Huawei's IT department drove the change, the true driver was Ren Zhengfei himself. From the 1998 IPD introduction to today's "Digital Huawei" strategy, Ren participated, decided, and pushed at every critical juncture. Without Ren, there would be no Huawei digital achievement.

Story 1: "Whoever Opposes IPD Leaves Huawei"

In 1998, Huawei decided to spend $48 million on IBM's IPD consulting. Nearly all executives opposed it, saying IBM's methods didn't fit Chinese companies. Ren's stance was exceptionally firm:

IPD concerns Huawei's survival. Whoever opposes IPD leaves Huawei.

Ren personally chaired the IPD Transformation Committee, required all executives to attend IPD training and personally participate in IPD projects; those who didn't engage seriously were demoted or dismissed. Only through Ren's forceful push did IPD take root and transform Huawei's R&D model.

Story 2: "Stop Construction, But Continue Reform"

In 2000, the dot-com bubble burst hit Huawei hard, profits plummeted. The company faced a choice: pause management reform and digital transformation to fund business, or continue reform. Ren chose:

We would rather stop other ongoing projects, including R&D base construction, and push reform to the end.

He said:

Our current difficulties are temporary, but if we don't reform, we will face greater difficulties later, even death.

This persistence allowed Huawei to continue transformation during its darkest hour, laying the foundation for later rapid growth.

Story 3: Respectfully Listening to IBM Consultants

Many Huawei executives looked down on IBM consultants, thinking they didn't understand China or Huawei's business. Yet Ren treated them with great respect. At every IBM lecture, Ren sat attentively in the audience, taking careful notes. He told executives:

IBM consultants are our teachers. They have decades of management experience; we must learn humbly. Don't pretend to understand, don't be arrogant.

Ren's example made Huawei employees seriously learn from IBM, truly absorbing advanced management thinking and process systems.

Huawei's digital transformation succeeded not because of money or headcount, but because it had a top leader who truly valued, participated in, and drove the transformation. Ren's actions signaled to all: digital transformation is not one department's job, it's the whole company's job; it's not optional, it's mandatory and must be done well.

Four Core Roles of the Top Leader in Digital Transformation

Many leaders ask: "I don't understand technology, how can I participate?" The top leader doesn't need technical expertise. The leader must do what technicians cannot. The author summarizes four core roles; mastering them means the transformation is half successful.

Role 1: Strategic Compass — Set Direction, Unify Thinking

The leader must stand at the corporate strategy level, clarify the direction and goals of digital transformation, and align all employees' mindset. Explain why we transform, what it means for the company's future, and what targets we aim to hit. Only when everyone understands the strategic significance and buys into the goals will they actively participate.

Role 2: Resource Allocator — Concentrate Resources, Fully Support

The leader must tilt company resources — human, material, financial — toward digital transformation, ensuring the project has sufficient backing. Transformation burns money and needs top talent. Without adequate resources, the best plans are castles in the air. Ren Zhengfei said:

Put the best cadres and the best talent into digital transformation.

Huawei succeeded because it concentrated its most outstanding people and resources on transformation.

Role 3: Conflict Resolver — Break Silos, Solve Contradictions

The biggest resistance comes from inter-departmental interest conflicts. Every department wants to protect its turf, unwilling to share data or power. Only the top leader can step up, break interest barriers, and force transformation forward. If the leader refuses to play the "bad guy," transformation will never succeed.

Role 4: Culture Evangelist — Lead by Example, Shape Culture

Cultural change doesn't come from meetings or training; it comes from the leader's personal example. If the leader still uses paper files and prefers oral reports, employees won't adopt digital tools. Ren is Huawei's chief digital culture evangelist: he led by using Huawei's digital office platform, approving documents online, and speaking with data. His example embedded digital culture deeply.

None of these four roles requires technical knowledge. They demand the leader's determination, courage, wisdom, and accountability. Most enterprises fail not due to poor technology or insufficient funds, but because the top leader didn't fulfill these four roles.

Conclusion: Without Top Leader Participation, Digital Transformation Is Empty Talk

If you don't truly participate, don't expect your employees to. If you lack the resolve to see it through, don't waste the money. Digital transformation is not the CIO's job, not IT's job — it's yours as the top leader. You are the first responsible person and the ultimate accountable person. Don't think providing budget and headcount fulfills your duty. You must personally engage, personally drive, personally solve problems. Only then does your transformation stand a chance of success.

The next article will enter Part 7 "Beyond," covering the second half of digital transformation: opportunities and challenges for Chinese enterprises, core characteristics of the next phase, China's unique advantages, and how to seize this historic opportunity.