What Digital Transformation Is Not About

#WAODigital18
I’m hearing a lot about testing multiple small things and spreading what works – rather than investing in single Big Bang solutions. The world is moving too fast…

— Chris Bolton (@whatsthepont) June 14, 2018

“How ambitious can organisations be in using digital technology?” was the theme of two recent events I contributed to for the Wales Audit Office Good Practice Team. 

It served as both a reminder of the issues our organisations are grappling with – as well as unearthing some opportunities we are yet to exploit.

Here’s a round-up of my post-match thoughts:

Success in digital transformation depends on mindset, not technology

The problem is that digital change requires a completely different mindset, not just skill-set. The consumerisation of IT means we are forever playing catch-up.  Employees are using popular tech and devices at home and then introducing them in the workplace, whilst customers are using better tech than most of our organisations can hope to provide.

Redesigning our services around this is cultural rather than technological. It means we need to adopt very different organisational behaviours.

Stop talking, start experimenting

Organisations are still over-thinking digital and being cautious – waiting for the landscape to settle before they decide what they do. Arguably this ‘wait and see’ option is more ‘wait and die’.

When you don’t really know the way forward the best strategy is to spread your bets with small experiments. It’s these low-cost practical tests that show whether the fundamental assumptions are correct and what they mean for your business.

A focus on cost-cutting is a danger in transformation plans

Focusing everything on cost savings is outdated and will ultimately have longer-term implications for business in the digital era. There’s a huge opportunity for companies to broaden the lens and widen their ambition:

  • Rebuilding organisation’s as a platform – enabling people to select the suppliers and services they themselves want
  • Rewiring your organisation for the network era – stripping out hierarchy and management and making a transition to decentralised decision making
  • Automating everything that can be automated. But not before stripping out legacy protocols and systems.  Decommissioning old world services as you launch new ones, reserving your people for worthwhile jobs that add value to their lives and those of others.

In reality, many of us are delivering the same services as we did in 1970,  just with shiny websites and ‘customer portals’. That’s not transformation, that’s stagnation.

Technology cannot solve your organisation’s deep problems

If someone gives you the digital sales pitch as a golden bullet for systems that are fundamentally broken my advice is, don’t believe themShirley Ayres

The problem I have with digital cheerleading is two-fold:

  • The implication that all our problems are easily ‘solvable’ 
  • The subsequent rush towards technology – as if digital is the only solution.

The evidence that technology makes us more productive is weak at best. There’s an ever-increasing gap between technological sophistication and work actually being performed.

This is because we are simply taking existing ways of working and digitising them – effectively just transferring today’s problems to another platform.

‘Digital transformation’ is rarely about digital, or transformation.

It’s actually about the processes by which you change your business model or approach. Some of which will have digital elements.

We need to talk about leadership in a digital age

Digital illiteracy will get you fired long before a robot does. Digital is now not just part of the economy — it is the economy. Rather than it being the responsibility of an elite few surely anyone in a publicly funded role must be digitally literate?

Perhaps leadership in the digital age is less a set of skills and more a set of behaviours.

The challenge for current leaders and public sector organisations is the legacy thinking and a business model disconnected from citizens living digital lifestyles.

What is digital transformation anyway?

If your transformation doesn’t significantly change the customer experience of interacting with you, then it is not a transformation.

Indeed, the first rule of digital transformation is not to talk about digital transformation.

As Tony Colon writes – most employees wouldn’t be confident and nearly a third would be “extremely uncomfortable” in explaining what this concept actually is:

Let’s think about that for a second. The concept that businesses are betting on is something that the general population just doesn’t understand – even though they need to play a part in that transformation at work – and the entire premise of digital transformation relies on people.

Making the opportunities of digital real for people is becoming one of the most pressing priorities for our organisations.

Our biggest challenges are dealing with people’s belief systems, addiction to legacy processes and cognitive biases.

Digital transformation is not a ‘thing’.

It’s a race you can’t win with no end destination.

 


Photo by rawpixel.com from Pexels

 

 

If You’re Still Shying Away From Using Technology To Improve Customer Experience – You’re Doomed

You must relentlessly ask: Is this harder for the customer to do? Relentlessly. Because, today, in an increasing number of areas, if it’s not easy-to-use, it’s dead in the water. – Gerry McGovern

Re-entry into the world of work after immersion in a completely different culture is always a disorienting experience.

I’ve just returned from a trip to Myanmar – a country with a complex and troubled past and present – and one of the most fascinating examples in the world of technological growth.

After decades of being cut off from the rest of the world, internet users in Myanmar increased by 97% in 1 year. And 70% of those are mobile users.

If you travel to places like Asia – where innovation is running riot due to a lack of legacy systems and thinking – you can see that change takes place in weeks rather than years.

There’s no ‘change management’ or time spent preparing people for change as folk have lived their lives facing one seismic shock after another.

For three weeks I’ve not dealt with any paper, any spreadsheets,  and very few emails. I’ve negotiated seven hotels, seven flights, taxi’s and boat trips through a mix of apps, increasingly powered by automation and artificial intelligence.

In some respects coming home seems like arriving in the third world, rather than coming from it.

One of the most interesting developments on this trip is how artificial intelligence (AI) and chatbots have broken through to the mainstream. On many occasions, I’ve found myself updating hotel plans through a chat application very aware I’m not actually talking to a human.

IMG_7405

When we talk about AI and automation we too often focus on the loss of jobs and of meaningful human contact rather than the value-added to the customer.

I missed two connecting flights but both were rebooked for me before I even got off the plane. 

A temporary hotel was arranged for me in Dubai before I knew anything about it.

I didn’t have to send emails to hotels confirming arrival details as a chatbot did it for me. 

In the West, it seems more time is spent writing blogs worrying about the threat of AI than implementing AI to introduce better customer experiences.

The big threat to our jobs isn’t actually AI, it’s our inability to move away from existing business models and to explore new ones.

What we are seeing in customer experience now is really interesting and splits us into roughly six camps:

  • Those who are disengaging from AI as it’s science fiction or a bit spooky.
  • Those who are actively resisting it because it threatens their incumbent position and business model.
  • Those who think it will upset their staff or their customers – as if somehow their staff and customers live in a parallel universe where Siri, Alexa, Cortana and Google don’t exist.
  • Those who see it as an opportunity to cut costs or realise benefits to the organisation.
  • Those who are seeing this technology as a way to move to better and more personalised customer experiences.
  • Those who see this technology as a way to transition to entirely new business models providing new opportunities for customers.

If your organisation is going to shy away from using technology to streamline its customer experiences, then you’re obviously doomed.

However, the debate is more nuanced than that.

On leaving my delayed flight with my first 24 hours travel plans in tatters I was met by a real-life human being. She handed over my new tickets and explained how to get to the hotel they had given me. She explained that all meals would be paid for and apologised for the inconvenience.

It’s this sweet spot we need to aim for – where technology becomes an enabler to a greater purpose.

People trained in listening and empathy supported by AI that understands and is able to adapt and personalise complex service offerings.

I’d buy that. 


 

 

I’m chairing an event on 7th February in London that will consider issues around AI and automation in the context of housing sales – you can book for free here 

https_cdn.evbuc.comimages388717182036484356421original

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.

Technology Won’t Kill Meetings – But We Can

untitled-presentation

Technology failed us.

We thought the world of work was to be reimagined. The death of the office. The end of email. A utopia of work/life integration fueled by work-where-you-want technology.

It hasn’t happened.

Six years ago 2.8 million people made daily commutes of two hours or more. In 2016 that’s risen to 3.7 million.

People report attending an average of five meetings a week with over one third saying they are unproductive, admitting to checking emails, Twitter and even Tinder.

And despite unprecedented access to virtual tools – our actual productivity has slumped to the worst level since records began.

Is it possible to spend a whole year in meetings?

In 2014, a research team from Bain and Company used data mining tools to analyse the Outlook schedules in a large company. It concluded that in one calendar year the organisation spent 300,000 hours in meetings.

Given there are only 8,760 hours in a year that’s quite some feat.

It’s because of what they termed the Ripple Effect:

  • The weekly Executive Meeting – essentially a status meeting – accounted for 7,000 hours.
  • 11 Unit Heads met with their senior team to prepare for that meeting – another 20,000 hours.
  • The 21 divisions racked up 63,000 hours in the subsequent team briefings.
  • 210,000 hours were “sub-meetings”. Literally – meetings about the other meetings

Very few of us do the meeting maths. As Jason Fried has written – the time blocked off doesn’t equal actual time spent. A one hour meeting with 6 people is a six hour meeting. A 15 minute meeting with 9 people is a two-and-a-quarter-hour meeting.

What if every meeting we had kept a real time counter of the salaries in the room, increasing minute by minute?

If you’re brave – try running this meeting calculator at your next one. Even if you run it based on the average UK wage the results are eye watering.

We all know we can be better than this.

Work can be better than this.

We can make it more collaborative, more efficient, more connected, more transparent, more elegant, more fun. 

In the current incarnation of Bromford Lab we’ve abandoned meetings altogether, even weekly planning. We run our work through Basecamp which prompts us to answer “What do you plan on working on this week?”.

We get a daily prompt to ask what we’ve completed and can answer it at our convenience.  The productivity , or sometimes lack of it, is visible for us all to see.

Technology is not to blame. It’s our failure to adapt our leadership for the digital age.

We still have a tiny percentage of leaders who are really living a digital lifestyle. There are still relatively few having open debates , showing transparency in public discourse , answering questions online and sharing progress.

Until there is a monumental shift in the leadership dynamic from the old fashioned command and control to a collaborative, status free, matrix way of working, then we will still have all those meetings.

The challenge is spotting the friction and noise that is dragging us back to 20th Century management behaviours – and then personally doing something about it.

Technology didn’t fail us. We failed technology. And it’s our job to fix it.

 

Designing Out Problems Through Networks

img_5010

On Monday I attempted my swiftest ever return to work after a trip.

My plane from Zanzibar via Kilimanjaro and Doha landed at 6am. I was home by 8:30am, online by 9 and in work by 11.30am.

I felt like The Man Who Fell To Earth. I’d had 16 days without any problems. Now – they were back.

  • It started on the M6 – with our taxi driver talking of ‘six months of hell’ as new roadworks attempt to solve a perennially unsolvable problem.
  • It continued in work  as we talked of problems too big to take on at once – and the amount of resource needed to tackle them.
  • The media and the Twitter chat was all about big intractable social problems – health, housing and social care. The same big intractable problems we were talking about 5, 10, 15 years ago.

Here’s the interesting thing. In the 16 days previously I hadn’t encountered a problem – in circumstances where you absolutely might expect to find one.

  • My malaria meds arrived in time from an online retailer – supplied faster and more cheaply than the NHS could manage.
  • I took four flights that all took off on time and arrived ahead of schedule. The baggage, tracked digitally, arrived safely – as it always has with that carrier.
  • I stayed in four places booked online by Booking.com and Airbnb. Each one was expecting me, required no paperwork and I got exactly what I ordered.
  • I used about 10 taxi journeys and all of them arrived early – pre booked online or negotiated with local drivers who confirmed bookings through WhatsApp.

The only problem I had was that I bust my GoPro camera (human error) – but even this has been resolved and I have a new one just four days after I arrived back.

We can’t compare the problems of the UK and the social sector to a frivolous trip but there are lessons to learn.

  • New entrants are using the opportunities afforded by digital to step into the gaps and solve problems that have plagued people for years.
  • Smart organisations are reimagining their customer experience for a digital era rather than digitising existing services.
  • Platforms are replacing intermediaries – focussing on specialisms and performing the functions that organisations have traditionally found difficult.
  • Savvy entrepreneurs are spotting services ripe for disruption – introducing simple work arounds to turn distrusted services into trusted ones.
  • Communities are using technology to leapfrog the natural adoption cycle. In a village I stayed in most homes had no electricity or running water – and yet WhatsApp and mobile payments were common.
  • Additionally I observed the power of letting people solve their own problems – and shifting from the mindset of institutions as the default.

This is not a post about digital technology.  Although – everything that can be automated will be automated.

This is about networks. 

All of the things I have highlighted above have been improved by bringing in new entrants, building new relationships, forgetting the past and flexing business models.

Our organisations are not best placed to solve their own problems. They need help from a variety of sources – communities, entrepreneurs, technologists.

Any sector that has multiple players performing similar services is ripe for disruption. And right now multiple people are working on the biggest problems your organisation faces.

Organisations who fail to seize the opportunities will see someone else step into the gap and solve the problems for them.

Most of these people don’t work for you – and never want to.

The challenge is to bring these players into our  networks – reshaping our organisations with them.

Sitting around and waiting to see what they come up with is about the riskiest strategy we could adopt right now.

Why Living In Paradise Is Bad For Business

When you live in paradise - it's easy to get lazy.
When you live in paradise – it’s easy to get lazy.

Here is a story about what can happen when you don’t anticipate change. When you get used to things being easy for everyone. It’s a story you will have heard before but, like all the best tales , is as relevant today as when it was first told:

There was once a lucky little bird who lived on an island. It was one of the most beautiful places on earth. Not only was it beautiful – it was safe. Nobody wanted to eat the bird. Nobody tried to muscle in on the birds turf.

The fruit that the bird collected from the trees was abundant and delicious. After a while the bird stopped collecting the fruit , as left to ripen it fell off the tree on its own. Far more convenient! Why would you go chasing food if you can have it delivered direct to your table?

The bird became bigger. Eventually it couldn’t even be bothered to fly. Why would you? The island is gorgeous, the food goes down a treat, and there is zero competition for nest space. You’d have to be an idiot to screw this life up!

But one day a ship appeared on the horizon. On the ship were men and women from a country far far away. And they brought dogs with them. And cats.

Not a problem , thought the bird, I’ll just fly away – there are plenty of decent islands around here with fruit just as good.

But its wings , left idle for so long , didn’t work anymore. Damn it.

As the bird went along to introduce itself to the dogs and cats – it wished that it had never become reliant on that delicious fruit falling from the trees. Never mind, it thought – guess I’ll have to learn to fly again.

The island was Mauritius. The bird , of course , the Dodo.

Last week an article made me think of this story. It contained a quote that said an entire sector , Social Housing , could become extinct because of alterations that are being made to how it gets paid.

Many of you reading this don’t work in housing so will not understand the changes. So – let me explain in simple terms how this works :

  • Quite a few people who live in social housing get benefits for their rent. To make it easy for everyone the benefits are paid – electronically – to the landlord. It’s convenient , frictionless, and the actual customer doesn’t have to worry about any of it. (OK , that sounds like business model paradise to you guys who don’t work in housing. But stick with me….)
  • The Government is trying to get the benefit paid direct to the customer. The idea seems to be that people should take responsibility for budgeting and stuff. But some customers aren’t really skilled enough to sort things out for themselves. A load of them don’t even have banks. Plus – customers don’t want the hassle of having to pay rent. So , it would be easier all round to stick with the old system. (OK , stop laughing – I know business doesn’t work like that in YOUR world.)

Why did the article make me think of the Dodo?

Because things were always going to change. History teaches us that. Why are we surprised?

We know that any modern business has to habitually innovate and re-invent itself. If it doesn’t and it gets too comfortable – it will become extinct. And it will deserve to.

Whichever sector you work in you are at risk of:

  • Stronger competitors
  • Disruptive technology
  • Demographic changes in your market
  • Changes in the economy
  • Changes that alter the way customers access your business
  • Or changes in politics and regulations

Your business is under threat. All the time. Get used to it.

There are lots of ships on the horizon. And they all contain disruptions to the way we do things.

We better get those wings working.

IMG_0417

10 Myths From The Year We Went Social

2012 was the year in which the Housing Association sector went social. It’s very positive that so many of us have recognised the clear customer service and business benefits that social and digital engagement can bring.

This was year we went social. And these are 10 things we have learned not to be true:

1: Social Media Is Simple

It’s easy to set up an account, but it’s not easy to make it work. Having worked in customer engagement for over 10 years I feel it is harder to effectively engage online than it is offline. In real life you can look into a customers eyes and read their reaction. In the social stream – you can’t. And our customers are becoming increasingly fragmented and harder to find. To engage with customers we used to knock doors.  In the virtual world they could be anywhere, anytime. It’s hard work.

2: Our Customers Are Not Online

I knew this to be false when a Customer Board Member emailed me to say they didn’t have internet access. People are online,  but they often choose not to tell their landlord. And sometimes they don’t even realise they are online. A customer recently told me they didn’t need broadband as they only ever used Facebook. Although I don’t deny that exclusion exists – the emerging issue is digital literacy and confidence rather than lack of access.

3: Social Media is Free

It is at first. And then you realise you need content. And content takes time to find, and longer to create. Too many organisations are making the mistake of thinking social media equals no printing and no advertising  – so it will be cheaper. But you are going to have to invest in new skills and new technology. It’s an investment in a completely different customer relationship.

4: Policy Can Protect Your Brand.

Whether you have a one page social media policy or hundreds of pages , your success or failure will be defined by just two things: leadership and common sense. In my experience the shorter the policy and the more visible the leadership , the greater the common sense.

5: We Are Ready For Generation Z.

Generally we are not. My challenge? Offer up your web and online services up to any 15 year old used to managing an account with Xbox Live or Playstation Network. Then ask them what they think. Most of our organisations are in the dark ages when it comes to intuitive online user experiences. It should be a concern that many of the people we involve in implementing new services have never heard of , let alone used , Xbox Live or Playstation Network.

6: Digital Will Lead To Better Customer Service.

You can make your service worse if you are just present without having presence. When people used to leave the phone ringing the only person who knew about it was the customer on the other end of the line. I just looked at an account by a large organisation. Last tweet 12th October. Last Facebook post 15th November. Website last updated in July. It’s there for the whole world to see.

7: Digital Is Slowing Down.

Marc Prensky has said slowdown in the digital age is a “myth,” as innovation will only press forward “faster… And faster and faster.” I love his quote: “We are not going through a transition to another phase of stability. People will always be behind now and that will be a stress they have to cope with.” Our companies , our people , our websites – always behind. Get used to it.

8: People Will Follow You And Like Your Page

Only if you are Justin Bieber or One Direction. Otherwise you are going to have to make it worth peoples time. You must post interesting content that is relevant to your audience and engage them in conversations around it. If you are looking at the slides you will see I referenced Bagpuss. It’s a reminder to Gen X’ers and Baby Boomers that we have a different medium but the rules are essentially the same. Every episode of Bagpuss was about the telling of a story and the engagement and contribution of the community to the telling of it. Nobody remembers how the ship got in that bottle. But everyone remembers how the story was told.

9: We Are Moving Our Customers To The Website

You can’t. We don’t have any way of commanding our customers attention anymore. Customers ARE your new website. One of the most significant shifts this year is the amount of time people are spending within social networks. I know people who have arranged their holidays, had their homes re-decorated , bought a car – purely through Facebook. I no longer read Inside Housing (our trade publication) – as its’ content is curated for me by people like Lara Oyedele , Philip Lyons and Jules Birch. I trust them and they are my network. Why would anyone come to the website of a Housing Association when they can get what they want from their network?  The only question is  – do you know who is curating and sharing your content?

10: Social Media Is Great For Broadcasting News

People engage with people not press releases. If there is one thing we all have to embrace next year it is putting the social into social media. The most popular post I have written this year was about the way housing has a tendency to talk about itself rather than create a compelling narrative around the difference it makes to peoples lives. I think we have improved. But we could do so much more in 2013.

These are my myths. I’d love to hear yours.

(The content of this post was originally presented at the Chartered Institute of Housing Social Media and Digital Engagement Conference)

%d bloggers like this: