Who Really Wins From Digital Transformation?

The birth of the change management movement began in the 1960s and 70s – when big consultancy began to see a vast new market – convincing organisations of the benefits of ‘transformation’.

Alongside this came the development of a distinctive, pseudo-scientific language of change which the consultants needed to pitch themselves to new clients.

It aimed to take advantage of a sort of corporate narcissism – hoping that senior executives and boards would swoon at the chance to ‘made over’ by slick looking outsiders.

They certainly did swoon, in fact they fell head over heels. As Jacob Dutton writes in a challenging piece – helping companies ‘do transformation’ is now very big business.

“The total size of the global transformation market is expected to grow from $445.4bn in 2017 to $2,279.4bn by 2025. The consulting component of a transformation programme alone is worth $44bn. As a result, the likes of PwC, Deloitte, KPMG and EY have all reacted and developed their transformation capabilities.”

The size of this market , and the riches on offer, arguably drive three key behaviours:

  • A focus on agile solutions rather than contemplative problem definition.
  • A subsequent focus on low hanging fruit – the easier problem to solve is often through tech, rather than the more complex wicked problems 
  • A focus on benefits realisation rather than value production – which often puts the emphasis squarely on efficiency.  Humans are expensive right?

Which then leads to:  The rush towards technological transformation – as if cheap tech is the only solution.

But what are we losing from our organisations, from our community, when we approach transformation as purely a means to be quicker, slicker and more convenient?

NI Housing - Paul Taylor (2)

We could be seeing the digitsiation of the most important thing your organisation has – the relationship with your customer.

As Gerry McGovern has written, looking at technology as cost minimization results in the hollowing out of organizations into technological shells, in which staff spend far more time interacting with numbers, code, and content than they do with their customers.

These avoidance tactics presume the customer is a cost on your time rather than an opportunity. In our own work we have learned that our customers and communities have many skills, often untapped and completely underutilized by us and others like us.

This change evangelism and the hollowing out of relationships can make us embark on the worst kind of technological solutionism – that risks ignoring the skills, assets and sheer talent that exists in our communities.

Starting With a Clean Slate

At Bromford we’ve done a lot of work on the standardisation of our processes and service offerings. It’s not sexy, but some of the most innovative companies operate very standard operating models. It allows them move exponentially quicker.

Focusing purely on the relationship your customer wants, and the simpler processes that support it,  helps resist the need to transform.

Jacob Dutton proposes that big companies abandon the idea of transformation programmes altogether and suggests some tips for kicking the habit. I agree and would also add:

  • Let’s have more reflection and contemplation rather than lots of management activity.
  • Let’s devolve resources and influence to those closest to the problem rather than outsource them.
  • Let’s change little and often through small-scale experimentation.
  • Let’s not roll anything out until we have evidence that it actually works.

As Neil Tamplin has said perhaps our organisations need to be more amenable to gentle iterative change rather than lurching forward intermittently to catch up?

Being a human organisation means resisting someone else’s idea of best practice.

Who is really winning from transformation?

  • Is it the customer who now has a digital portal and a chatbot with a pre-determined series of options between them and the person they really need to deal with?
  • Is it the organisation who were promised a bright new future but find they have the same fundamental problems they always had?
  • Is it the employee who was told they shouldn’t resist change and that their job would be made easier, but found that their job would eliminated altogether?

The global transformation market will be worth $2,279.4bn by 2025.

Someone is winning and it’s not necessarily going to be you or your customer.

View at Medium.com

 

Digital Transformation is Failing. Why?

“A key reason why true mobile working isn’t being implemented is because of management culture. The case for mobile working has been proven; it is the people who are the biggest barriers.”- 2017 Deloitte Human Capital Trends report

HCTrends-2017_Introduction_Fig1

The way we work , it seems, is no longer working.

What we’ve long suspected – that organisations are failing to maintain pace with technological advancements – is now evidenced.

It wasn’t meant to be like this.

We were promised that digital would revolutionise the workplace. Although the use of mobile devices is practically ubiquitous, true mobile working is not growing at the rate predicted.

  • Despite huge advancements in video messaging and conferencing workers still spend a year of their lives in physical meetings. If you’re employed in the public sector it’s worse – with nearly 2 years clocked up for every worker.
  • Commuting to work – far from being a thing of the past – is actually increasing. The number of people with a 2 hour commute has risen 72% in the last decade.
  • We spend about 60% of our time on email, a crude technology from the 1970’s. The UK’s biggest employer, the NHS, hasn’t even got that far and still sends pieces of paper to contact patients.

As the 2017 Public Sector Mobile Working Report makes clear – our leadership is certainly in question. There’s a lack of strong pioneering leaders prepared to take the plunge and spearhead change.

The UK is a now a high-employment, low-productivity economy lagging behind almost all of its peers.  Yet despite this and with an obvious skills deficit , seven out of ten people say they receive no basic digital training from their employers.

With such a huge gap in business potential – this appears to be a dereliction of duty by leaders. What’s the reason?

HCTrends-2017_Introduction_Fig2

The diagram shows that individuals are relatively quick and adept at adopting new innovations.

However, whilst you and I may adapt to technology relatively rapidly, businesses and organisations move at a much slower pace.

If it is people who are the biggest barriers – why do we behave differently in a work context compared to our home lives?

The argument – so it goes – is that this may be a generational thing. That those currently at management level weren’t brought up in the digital era and may have an innate fear of technology.

To me this assumption that a new breed of younger savvier digital natives are going to usurp the incumbent dinosaurs is a dangerous one. It’s casual ageism for a start – I know people in their 70’s who can code, and people in their 20’s who can’t tweet.

More importantly though – it lets business leaders off the hook.

What if there’s a deeper problem here , what if it’s the way we work that is impeding progress?

What if work no longer works? 

The practices of corporate planning, organisational structure, job profiles, performance indicators, and management were developed in the industrial age. It could be that some, or all, of these are wholly inconsistent with the behaviours required in a digital age.

It is these legacy practices that any business transformation programme should be addressing. Too often they focus on the digital tools themselves which are largely irrelevant.

Anyone can introduce a new IT system- but as digital organisational models emerge, it’s leadership that needs change.

We are at a crossroads – at the intersection of paths towards a new digital economy or an adherence to the traditional world of work.

Being a leader in the digital era means casting aside old strategic frameworks, processes, relationships and values. It also means being brave and bold enough to step into the fray: challenging every aspect of tradition.

Digital transformation isn’t really anything to do with digital tools.

It’s about redefining the concept of work itself.