This study aims to investigate the role of digital strategy on lecturer performance by positioning digital competence as a mediating variable. This quantitative study uses primary data obtained through a survey of lecturers in Indonesia. A total of 248 respondents responded, and the data were then processed using SEM-PLS 4.0. The results indicate that digital strategy has a strong positive influence on shaping lecturers' digital competence. However, digital strategy alone does not necessarily improve lecturer performance directly. The results of this study show an interesting finding, the phenomenon of full mediation, in which digital competence acts as a crucial bridge. Without adequate technological mastery within human resources, an organization's digital strategic policy will lose its effectiveness in boosting productivity. Therefore, the success of digital transformation in educational institutions depends heavily on the integration between strategic planning and the continuous development of lecturers' digital capacity. Practically, this study serves as a strategic guide for higher education policymakers to reallocate budgetary priorities from mere LMS infrastructure procurement to intensive digital competence training, preventing underutilized technology and ensuring a higher return on digital policy implementation. The universities must embed sustained digital competence development programs alongside digital strategy formulation, as strategic policies alone are insufficient to enhance lecturer performance without adequate technological mastery.