[Research Contribution] A Human-Centered Framework for Assessing Digital Transformation Leadership Competency

13 August, 2026

Keywords: Digital transformation leadership, human-centered, digital competency, psychological safety

In the current wave of digital transformation, the role of leadership extends beyond the mere application of technology; it must also place people at the center of the innovation and sustainable adaptation process. Grounded in this practical reality, a research team from UEH Mekong, University of Economics Ho Chi Minh City (UEH), has proposed a human-centered framework for assessing digital transformation leadership competency and conducted empirical validation at UEH Mekong. The findings indicate that the model is appropriate for the Vietnamese context and can be used to evaluate digital transformation leadership competency within organizations. Accordingly, units can identify strengths and areas for improvement to enhance operational effectiveness, while also laying the foundation for future in-depth research.

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Digital transformation is not just a technology story

In the context of rapid digital transformation, many organizations, despite significant investment in technology, have not adequately focused on the human factor and the role of leadership in driving change. Most current models emphasize technological and strategic competencies, while psychological factors such as trust, engagement, and particularly psychological safety have not been fully integrated. In Vietnam, research on digital transformation leadership remains limited, lacking human-centered approaches and empirical validation suited to the local context.

Addressing this gap, the research team adopted the digital transformation leadership competency framework developed by the Center for Creative Leadership in collaboration with global digital leaders. This model assesses leadership competency at the individual level through nine criteria across three main competency clusters, with “psychological safety” identified as a central factor driving innovation and organizational adaptation.

Building on this foundation, the study analyzes the components of the competency framework, while also conducting a case study at UEH Mekong to validate the model’s applicability in the Vietnamese context and propose directions for further development. The research not only contributes to the academic foundation of digital transformation leadership but also holds practical significance for businesses and policymakers in building flexible, innovative, and sustainable work environments in the Industry 5.0 era.

A human-centered digital transformation leadership competency framework

The study is built upon a synthesis of theories on transformational leadership, digital transformation leadership, and the human-centered approach. The research team adopted the human-centered digital transformation leadership model developed by the Center for Creative Leadership in collaboration with global digital leaders. According to this model, digital transformation leadership competency is implemented across five levels: Senior Leadership, Individual Leadership, Team Leadership, Organizational Leadership, and Societal Leadership. Among these, the individual leadership level is considered the foundational core, as digital transformation can only spread effectively when each individual proactively adapts, develops their competencies, and embraces change.

At the individual level, the assessment framework proposes nine digital transformation leadership competency clusters: (1) Assessing the market/environment; (2) Approaching and assessing digital capabilities; (3) Embracing calculated risks; (4) Solving problems in an innovative and inclusive manner with participation from all; (5) Using/leveraging data for decision-making; (6) Motivating the operating ecosystem; (7) Empowering individuals/teams; (8) Demonstrating resilience in the face of change; (9) Self-transformation.

Notably, psychological safety is positioned at the center of the model. This is considered a critical condition that enables individuals to share ideas, embrace experimentation, and actively participate in the innovation process within the organization.

Empirical validation at UEH Mekong

Expert interview results indicate that the human-centered digital transformation leadership competency assessment framework demonstrates high relevance and feasibility in the Vietnamese context. However, experts suggested that implementation must ensure a balance between openness and governance effectiveness. Encouraging dialogue and multi-dimensional listening should be accompanied by a culture of responsible, data-driven critique aligned with the organization’s shared direction.

Additionally, the study surveyed 52 staff members at UEH Mekong, representing approximately 43% of the unit’s total personnel. The results show that all criteria in the competency framework were rated positively, reflecting a consensus that digital transformation leadership activities at UEH Mekong are oriented toward a human-centered approach.

Notably, many staff members reported feeling that the work environment at UEH Mekong is highly cohesive and safe for sharing personal opinions. This is considered a clear manifestation of “psychological safety” – a core component of the research model. However, adaptability to environmental fluctuations and flexibility in practical implementation still have room for further improvement.

Overall, the study confirms that the human-centered digital transformation leadership competency framework can be applied in organizations in Vietnam, while also providing a foundation to support strategic planning for digital transformation and the development of innovative leadership models in the future.

Implications for organizations in the context of digital transformation

Based on the research findings, the team proposes several important implications for organizations, particularly in the fields of education and human resource management:

First, the human-centered digital transformation leadership competency assessment framework can serve as a tool to help individuals self-assess their digital leadership capabilities, while also assisting organizations in gaining a comprehensive view of the extent of digital leadership implementation within their ranks. Through this, leadership can identify strengths to leverage and areas requiring improvement to meet the demands of the digital 5.0 era.

Furthermore, the model enables organizations to analyze differences in assessments across employee groups by job position, tenure, gender, or department, helping managers not only grasp the overall picture but also understand the characteristics of each group to develop more tailored development policies.

Beyond its practical value, the research opens multiple avenues for subsequent studies, such as evaluating the impact of digital transformation leadership competency on employee engagement, work effectiveness, satisfaction, and the organization’s sustainable growth capacity. This demonstrates that, in the current context of digital transformation, the human-centered approach is becoming a vital foundation for long-term organizational development.

Therefore, driven by the need to innovate leadership styles in the digital transformation 5.0 era and the gap in existing research, this study has adopted a conceptual model and assessment framework for human-centered digital transformation leadership competency, while also validating its relevance and feasibility for implementation in Vietnam. The results show that the model can be applied in practice and flexibly adapted to organizational culture, thereby helping to balance governance effectiveness and human values in the digital transformation process.

View the full research paper “A Human-Centered Framework for Assessing Digital Transformation Leadership Competency HERE.

Authors: Dr. Thai Kim Phung, MSc. Ly Thi Diem – University of Economics Ho Chi Minh City (UEH)

This article is part of the series disseminating research and applied knowledge under the message “For a More Sustainable Mekong,” within the “Research Contribution For All” program conducted by UEH. UEH respectfully invites readers to stay tuned for the next edition of the UEH Research Insights newsletter.

News, photos: Authors, Department of Admissions – Communications UEH Mekong, Department of Communications and Partnerships UEH