LEADERSHIP IMPACT ON THE EFFECTIVENESS IN DIGITALISED IT ORGANISATIONS

Abstract

The study investigates the critical role of leadership in digitalized organizations, focusing on how different leadership styles influence organizational performance after the digital transformation process. Effective leadership in this context requires a blend of traditional leadership qualities and a deep understanding of digital technologies, enabling leaders to navigate their organizations through complex digital transitions while fostering innovation and adaptability. The study highlights that in a digitalized environment, leadership extends beyond traditional management practices. Digital leaders must cultivate a culture of continuous learning and collaboration, empowering employees to engage actively in the digital transformation process. The research also reveals that successful leaders in such environments must exhibit empathy, adaptability, and willingness to embrace uncertainty, as these qualities are essential for sustaining both personal and organizational growth. The research was conducted within a multinational software company, examining three teams with distinct leadership styles. Blake and Mouton's Management Grid was utilized to assess the leadership approaches, while Kaplan and Norton's Balanced Scorecard provided a comprehensive evaluation of teams performance across learning and innovation, internal processes, customer satisfaction, and financial outcomes. The study found that teams led by leaders with a strong balance between concern for people and results, specifically those aligned with the "Team Management" style, achieved superior performance across most of the metrics. These teams demonstrated higher levels of employee satisfaction, innovation, and customer satisfaction, coupled with better financial results, including increased profitability and lower operating costs. Furthermore, the findings suggest that in organizations characterized by high intellectual demands and digitalized operations, leadership styles that prioritize open communication, low power distance, and a balanced approach to people and task orientation are most effective. The study concludes that the success of digital transformation efforts is closely linked to the quality of leadership, with leaders who can adapt to the demands of the digital age, playing a crucial role in ensuring long-term organizational success.