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

 

How To Find And Nurture Digital Readiness

When someone in public service says, ‘I don’t use social media. No one wants to know what I had for breakfast!’ I hear, ‘I don’t have the vaguest interest in understanding how an increasing number of citizens get information or choose to interact.’  – Leah Lockhart

What are we doing about boosting the Digital IQ of our organisations?

As we continue to transform and tilt ever further towards automation, it’s time to question the amount of support we are giving our colleagues.

The latest report from PWC says that confidence in our digital abilities is at an all time low.

pwc-digital-iq-moving-target

In a global survey of Executives 52% rated their digital IQ as strong. Down from 66% just three years ago.

Our people , it seems, simply can’t keep up with the advances in technology.  So what are we doing wrong?

First of all the scope of “digital” has changed. It used to mean our IT capabilities, then extended to take in social media awareness. Now it’s much more pervasive, touching on strategy, culture, customer and colleague experience.

Employing people with the right digital skills is now non-negotiable.

Yet some organisations are adopting a wait and see tactic:  let the old guard retire and be usurped by a new breed of younger digital natives.

Except that won’t happen.

‘Born digital’ millennials are a figment of our collective imagination. A review paper has concluded that “information-savvy digital natives do not exist.”

Instead we need to focus on seeking out what Pew Research call ‘digital readiness’.

This exhibits itself in two ways:

Digital skills: the skills necessary to adapt to new technology, browse the internet and share content online.

Trust:  people’s beliefs about their capacity to determine the trustworthiness of digital resources and to safeguard personal information.

These two factors express themselves in the third dimension of digital readiness, namely use – the degree and aptitude to which people use digital tools in the course of carrying out their day to day work.

Being digitally ready doesn’t mean having a CEO on Twitter or chasing the latest apps. It means knowing what your personal goals are and what tools to use to achieve them. It means creating new networks and sharing knowledge to benefit your team or organisation.

In the Pew research, only 50% of people describe themselves as very digitally confident. Therefore it follows we all have people in our organisations , from Executives to the frontline, that are falling behind.

Perhaps we need to identify the digital laggards and connect them with the leaders who are often hiding in full view from the organisation. They are often overlooked by traditional Leadership Development programmes which tend to perpetuate a hierarchical model of ‘identifying future leaders’.

In my experience the most digitally ready often operate in ways that are wholly inconsistent with the current operating structure. They take a more radical approach to decision-making, and they don’t recognise a command-and-control model.

We haven’t really discussed the implications of this for our leadership. The new potential of artificial intelligence and robotics poses major new challenges for organisational development.

Really we need a new set of questions:

  • What are the implications of new technologies for leadership at all levels?
  • How will these changes disrupt and impact the business model?
  • What knowledge and skills should be our priority?
  • What do we hold on to from our past? What do we discard?

Just like knowledge has been democratised through social media, leadership will become democratised and ever more flattened. Making the transition from the individualist nature of leadership to a more collective focus won’t be easy.

It requires moving away from thinking that tools and systems can transform us.

It requires moving away from seeing ‘Digital Leadership’ as the preserve of an elite few who we all follow.

Unless we all feel that our Digital IQs are improving – that we are ready for the challenges of an increasingly automated future – we may find we have no place in it.

%d bloggers like this: