Purpose of this research includes exploring the new fresh Digital Leadership Theory to understand how it enables and drives organizational competence to influence and predict digital transformation. Digital Leadership Theory is developed in response to corporate CEO challenges which emerge from this digital revolution and digital economy. Digital Leadership Theory is a three-dimensional combination leadership approach, built on the shoulders of giants in leadership theory. It is suitable for use by corporate CEOs in transforming their corporate to digital business models. This research aims to increase CEOs understanding of how to use the right combination of attitude, capabilities and knowledge for strategically restructuring their organization for transformation. Methodology uses a Grounded Theory approach to build on Digital Leadership Theory. This research is ‘grounded’ in data systematically collected and analyzed to uncover relationships between Digital Leadership, organizational competence, and digital transformation in a quantitative research design. Participants include one hundred and sixty-five Australian corporate CEOs. The research model is tested using structural equational modelling (SEM) path analysis which provides a good structure for understanding pathways from Digital Leadership to digital transformation. Practical implications include developing CEOs digital strategies for digital transformation of their corporate, to digital business models. This organizational psychology focused model enables CEOs to plan organizational restructure around required recruitment, learning, training and development of workforce to increase digital skills required for successful transformation. Social implications include increasing Australia’s digital transformation global position to improve Australia’s GDP and competitiveness in the global digital economy. This is important not only for corporate survival, but the future employability of Australia’s workforce. If Australian corporates become extinct, we shall experience detrimental economical flow-on effects, such as loss of employment and livelihood for many, through to suppliers and stakeholder’s loss of income and dividends, perpetuating possible financial crisis. Originality in this study includes testing Digital Leadership Theory to build on credibility. Previous foundations structured Digital Leadership Theory on a business model, now this current study tests this theory in an organizational psychology model to overlap understanding. Consequent use of these research models compliments a corporate CEOs ability to strategically plan both business and organization restructure. This approach envisages a more holistic approach to digital transformation.