Abstarct: Objective: The main objective of this study is to systematically identify and prioritize the key competencies of the future workforce for digital transformation in higher education. Methodology: This research is applied in purpose and employs a mixed-methods (qualitative-quantitative) approach. Initially, 25 key competencies were extracted from a comprehensive literature review. Subsequently, the baxse Criterion Method (BCM) was utilized to weight these competencies, and the novel Opportunity Losses in Polar Coordinate Distance (OPLO-POCOD) technique was applied to prioritize them and analyze competency gaps. The expert panel consisted of specialists in educational management and information technology, with a case study conducted on 9 higher education institutions in Iraq. Findings: The BCM results indicated that "Basic Digital Competence (ICT skills)" (0.0816), "Critical Thinking and Problem Solving" (0.0742), and "Creativity and Innovation" (0.0703) hold the highest importance from the experts' perspective. Conversely, the OPLO-POCOD analysis revealed that the lowest Degree of Opportunity Loss (DOL) belongs to "Familiarity with AI and Automation" (0.0048), while the highest gaps (highest DOL) are related to "Critical Thinking and Problem Solving" (0.0788) and "Basic Digital Competence" (0.0435). Furthermore, performance evaluation showed that institutions 9 and 2 demonstrated the best status in fostering employee competencies. Conclusion: To succeed in the digital transformation era, higher education systems require a fundamental revision of their empowerment programs. The primary focus should be on "critical competencies with rapid improvement potential," such as creativity, effective communication, and self-management. Meanwhile, competencies like critical thinking and basic digital skills necessitate long-term strategic planning and infrastructural development.