Leading the Digital Enterprise - Beginner | Intellezy Trainers | Skillshare

Leading the Digital Enterprise - Beginner

Intellezy Trainers, Learning Simplified

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11 Lessons (1h 52m)
    • 1. Introduction

    • 2. Revolutionalizing the Way We Work

    • 3. The Digital Maturity Model

    • 4. Being a Digital Leader

    • 5. Embracing Systems Perspective

    • 6. Deploying The Right Technology

    • 7. Assessing Digital Literacy

    • 8. Influencing The Adoption Of Talent

    • 9. Creating Digital Work Processes

    • 10. Managing Change

    • 11. Course Recap


About This Class

This program is for leaders who need to figure out how to make the best use of digital technology at work. The overall goal is to: help leaders develop the ability to manage the impact of digital transformation on how they run their business, and learn practical approaches to integrating technology, people and processes to increase productivity and engagement. The program focuses on helping managers build “digital leadership capability” in terms of understanding how technology can enable the execution of your business strategy and enhance operations. In particular, managers will learn how to implement digital technology in a way that will enhance its utilization at the individual, team and organization levels. Throughout the workshop, there are interactive exercises that ask the participants to apply the concepts to their work environment. By the end of the program, the participants will have created an action plan that can be put to immediate use.


1. Introduction: thank you for joining us for leading the digital enterprise. I'm Brian Powers. I'll be a facilitator. This program is for those leaders at any level who want to learn how to deal with the challenges of leading a digital workplace, which is just about all of us. If you think about it, One of the key themes we're going to explore is the far reaching impact of the digital transformation and its implications for how we work. Two recent experiences convinced me that the transformation process is well underway in that in large measure, we have already been transformed. The first experience I was fortunate to attend the play. Dear Evan Hansen by Stephen Levinson. The experience was digital from beginning to end, from buying tickets online and having the ticket scanned at the door to the onslaught of after market offers I've been receiving ever since. Digital technology permeated the experience. More than that, though, technology was an integral part of the show itself. In particular, the primary set design blended technology into its structure and layout, which acted as a means of setting the tone as well as moving this story food at key plot points and While my theater experience was tech heavy, my trip to a local pizzeria sealed my belief that it's no longer a question of if we're going to be digitally transformed. The real question is to what degree and what does it mean for those in leadership roles, in terms of visiting my favorite pizza place for making online reservations to the waiter entering our water into a nearby point of sale device, which links to the time and attendance and inventory systems to the interactive order screen in the kitchen, prioritizing the flow of work they're paying a bill on the tablet of the table Technology played a central role, and while I'm kind of used to that would caught my attention. Was the Interpret entertainer performing in the corner with an acoustic guitar plugged into a AMP, which was using an iPad for auto tuning toe add background music and vocals and to remind him of the lyrics. These two experiences convinced me that all companies a tech companies, as a friend so eloquently put it, and it reinforced the new reality where leaders need to embrace digital transformation and figure out how to use it to enable their people in the organization to be successful Before we dive in, we need to present some guiding principles that provide some context for the program. First, digital transformation is about people, not about Turk technology per se. One of the great ironies is that all this focus on technology has increased our dependence on our people and created the need for better management. Second, managing digital technology is now core to effective leadership. It is part of what we do interval to our role. It's not something extra or bolted on, but rather an essential element of running a successful company. Third, digital leadership is needed at every level of the company. Digital transformation changes the way work gets done in the way power is being pushed out to the edges of the organization to wear, the company intersects with its customers and its partners. As such, people at every level of being asked, make increasingly important decisions and efficiently deliver value to the Kleins. That's what this program is all about. How we as leaders can positively impact that process. Let's take a moment to look at the agenda for Oculus. First chapter is understanding digital transformation. Here we take a look at the way digital transformation is revolutionizing the way we work and how it's doing that. They want to spend some time talking about the digital maturity model, which enables leaders to understand the different stages of digital maturity. Section two, Chapter two as well leading the digital workplace, where we need to talk about the need to balance the leadership in management and how we talk about embracing a systems perspective, toe leading the enterprise. Then we dive into the building blocks of digital transformation. We take a hard look at technology people in work, and finally we take a moment and to vote one Chapter two, accelerating digital transformation by managing change because it really is all about change and how we as leaders, could drive digital transformation and change into our organization. One of the key things I want to point out about this course is that we have invented application exercises throughout the content that will give you an opportunity to pause, reflect and think about the concepts that we've talked about and how they apply to your business. My goal is that by the end of the program, you'll have an action plan that you can take away inside, implementing in your businesses right away. So again, thanks for joining us and let's get started. 2. Revolutionalizing the Way We Work: Ah, first section is digital transformation in leadership. We'll be looking at it from two dimensions. First, we'll talk about the broad scope of digital transformation and how it has revolutionized the way we work from large scale strategic imperatives toe everyday tasks. Second will explain what digital transformation actually means. Employing a digital maturity model to articulate the different ways organizations adopt technology and for what purpose? People have characterized digital transformation as the third industrial Revolution. This is due in large part to the disruptive impact it's having on our economy on the way we work on a global basis and its influence on society itself. This impact is very similar in scope and scale as the 1st 2 industrial revolutions. Now, I'm not gonna turn this into a history lesson. We're taking a moment to put Digital transformation in historical context will help us understand the nature of the revolutionary changes we're experiencing and hopefully craft an appropriate response in the first Industrial revolution are four beers moved off the farms and agrarian based lifestyle into amore industrialized economy. Beginning in the middle of the 18th century and lasting into the middle of the 19th. This transition included a shift from hand production methods to machines, the increasing use of steam power and water power, and the rise of the mechanized factory system that brought about dramatic changes in business in society and was driven as much by technical innovation as anything else. The second revolution, picked up with the first revolution, ended and lasted into the early 19 hundreds. The second tectonic shift was a phase of rapid industrialisation, accompanied by the building out of a far reaching and enabling infrastructure. Within a few short decades, electricity, water telegraph, telephone, oil and gas railroads in road systems were in place across Europe in North America. These changes enabled the creation of large scale industrial enterprises and the advent of mass production and distribution. Another wave of economic and societal change driven by innovation followed in our organizations Ah, society, the work all were significantly changed. Similarly, we're now experiencing 1/3 digital industrial revolution that is being driven by an advancing technology that permeates just about every aspect of our economy in our lives. The reason it really matters to us as leaders is that there is no hiding from it. We need to lean into it and accept that the very nature of how business is conducted has been disrupted and will continue to be transformed. We need to figure out how to deal with it now and into the future. We will go the way of the gentleman farmer typewriter manufacturers, encyclopedia sales people off video rental stores to name but a few historical artifacts. This model also points out that his leaders we need to understand that these changes have a significant impact on the way we organize our resource is the way we run our companies and structure our operations. Each revolution has forced a re examination, if not reinvention of organization, structure and behaviour. The whole field of professional management came about as a result of the previous industrial revolution. The point is that there are such significant forces at work that cannot be ignored. The ability to adapt to a shifting context has become a core competence, an integral aspect of successful leaders in the digital economy. This radical disruption has permeated just about every aspect of organizational behavior and is truly revolutionizing the way we work. As this graphic indicates, we're in the midst of a transition, a journey from one kind of organizational model to another. Companies are moving away from traditional hierarchies and centralized command and control cultures to a world that depends on teams collaborating and where decision making is distribute out to the edges of the organization closer to the customer and where the action is, the transformation has occurred. While companies were once vertically integrated in all aspects of their supply chain, most of our looking to build integrated ecosystems and partnerships with whomever has the expertise to help inside are out of the organization. The leader was formally viewed as the primary source of power. Everything needed to flow through him or her. But now, however, leadership at every level is the norm in order to accommodate the speed, complexity and localized nick nature of the work. All of these are points on a continuum for us as leaders to decide where we sit, Where have we been transformed, are transforming or need to transform and make the decision if we need to make any adjustments to the way we operate. The hard reality is that we are already swimming in the water. We're already enmeshed in a digital world that permeates just about every aspect of our lives. To make the point, let's take a moment to complete an inventory of all the digital technology that you use personally and professionally. By completing the work sheet in the workbook, it should illustrate not only how pervasive tech is in our lives, but also how much we depend on technology and matters both big and small. After you've completed the exercise, rejoin us, it will move forward. 3. The Digital Maturity Model: now that we're across the digital Rubicon to throw a little ancient history at you, we need to develop a practical definition of digital transformation and present a model that will help us position it within our own companies. The first place to start is to take a moment to understand what we mean by digital transformation and that there are ways for us to understand it and deal with it in a very pragmatic and practical manner. They're ready definitions of digital transformation out there, many of influence by someone trying to sell you something for sure. For me, the one that says it best comes from research done at the M. I. T. Sloan School in partnership with Deloitte Consulting. It's contained in a great book entitled The Technology Fallacy. How People Are the Real Key to Digital Transformation. They define digital transformation as utilizing digital technologies and capabilities to improve processes, engaged talent across the organization and drive new value generating business models. I like this definition for a lot of reasons. First, it combines digital technologies and digital capabilities, those complimentary skill sets required to optimize technology. This definition also talks about three key purposes of digital transformation. First, using technology to improve processes the way we coordinate the flow of work and information. Second, enhancing the engagement of talent across the organization, helping organizations of every size find ways toe optimize the performance and potential of their people and third, driving new value generating business models. The last one is probably the one attracting the most attention to compete in a rapidly changing market. Companies are looking at just about every aspect of the business to see where digitalization can give them an edge products services supply chain, looking at everything that might give them a competitive advantage and enabled him to satisfy their customers. Ultimately, the definition provides a broad vision as to what leaders at every level consider when thinking about digital technology. As we said, in many ways, we have already been transformed as leaders. The question now is to determine the degree to which we have incorporated integrated digital technology into the way we run our business. Help figure that out of built a five stage model of digital maturity to help us understand the current state of your digital capabilities, and to think about what might be the next step that you can take in your digital journey, so to speak, the word first about maturity models. In general, maturity models exist to help organizations understand what the current level of proficiency capabilities are in a particular domain of field software development. Talent management manufacturing are areas that they have been used quite successfully, and these models helped people figure out what they need to do to approve and to understand what the next level of competency could be. Maturity models focus on identifying and assessing the essential processes that should be in place and are based on the simple premise that you can't go from the outhouse to outer space overnight. If you'll pardon the expression sustainable capabilities in processes, I developed one level one stage at a time at the low stages of maturity. Organization organizations are just starting to adopt certain processes and develop foundational skill sets as they establish mastery. At one stage, they can begin to prepare in advance to the next. This progression maturity, if you will, can continue until the organization attains the highest level of maturity with the challenge is to continue to sustain and pursue excellence in our case to continuously utilize digital technologies and capabilities to improve processes, engaged talent across the organization and drive new value generating business models. That may seem familiar. That is our definition of digital transformation. The model also helps to reinforce the basic principle that transformation is not really a destination, as it is a way of running your organization. It is continuously using digital technology to find new ways to create value for your clients while increasing the efficiency and effectiveness of your business. What's little phrase there is no finish line because the marketplace has been transformed in his faster, more complex and ever changing. Leaders need to view the way they manage the organizations the same way, and our digital maturity model will help you achieve that. Let's take a look at it. Stage one Conditional describes organizations with a very limited use of technology. In many instances, whatever technology they do have has been put in place. Because there was no other alternative. The older analog methods, such as phone systems, fax machines, mechanical cash registers and snail mail, have been discontinued or of such limited efficiency that it makes them inadequate. These organizations believe in business as usual and demonstrated reluctance, if not a downright aversion to adopting digital methodologies. Stage two Conversion describes an organization that has undertaken a concentrated effort to digitize their information based assets and how they manage often referred to as digitization. At this stage, companies are moving from analog to digital base practices, for example, moving from media such as paper on microfiche to digital documents, records and archives. At this foundational stage, the digitized media yields higher levels of efficiency in terms of accessing, maintaining and utilizing the firm's information. This conversion is not just about scanning information into computer systems and storage. It's also defined by the implementation of the hardware and software to manage the information, as well as building new skills for the users and designing their work around the new systems. At the next stage, production leaders in their organizations are beginning to utilize digital technology to reengineer their operations. At the process and task level, they're striving to change the way that work is done, often referred to as digitalization. This is when companies are identifying where technology can make the businesses operations more efficient, ineffective along many dimensions, processes in tasks associated with customer service help desks, Learning Management Administration, payroll processing, sales administration and scheduling deliveries or examples where production leaders have effectively deployed technology. The next stage innovation is the point of which leadership has decided that digital technologies can truly transform the business. They begin to look at new ways to manage and operate the supply chain and hence the customer experience or even re engineer the offering the company brings to market. We need look no further than how we acquire and listen to music. Years of having vinyl records, eight track tapes, cassettes and even CDs are in the review. Mirror music is created, produced, distributing, consumed in a new digital ecosystem. That digital transformation is brought into being. In the past decade, increasing amounts of research is suggesting that companies that achieve true digital maturity enjoy high levels of success in terms of profit, revenue and return on equity and customer satisfaction. Stage five optimization is about continually seeking new and improved ways to add value across the enterprise through the expanded use of digital technology. In the digital economy, there is no such thing is standing still, so continuous disruption has to be accepted as a way of doing business. It is the new normal. The only remedy is to disrupt ourselves to the creative and proactive use of digital technologies. Good, better best never let it rest good. Get better in the better best. One of the key point to make about a digital maturity model before jumping into a case study is that there are two different dimensions of purposes for deploying digital technology between the early in later stages of maturity. At the early stages of digital maturity, the focus is on the operational aspects of your business. At this stage, you are looking at optimizing the performance of your people. The systems you have in the process is required to enable efficient, effective, and even agile operation of the business. Once you've installed a strong digital infrastructure, you'll have the digital capabilities at both the people in systems level to run the business. You can then begin to take a more strategic view and move into the innovation and optimization stages, where you are looking to leverage digital technologies to create value for your clients. Much of the hype that you see may read about digital transformation is typically devoted to these. Stange's one of the core principles behind the digital maturity model is that it's difficult, if not downright impossible, to get to the highest stages without having strong, digitally transformed operations. And you get there by moving through the stages of the model and diligently building out the foundational capabilities as we will see leadership behaviours. When enhancing operations require different practices in the ones apply to strategic transformation, which requires a leader to embrace innovation, experimentation and agility. A recent case study will help to pull all these threads together. I like to call this case the journey from broadcast television to VHS to DVD to streaming to whatever happened to Blockbuster. You might remember Blockbuster, although I wouldn't be surprised if many of you didn't. As the company went out of business in 2013. Its origin trajectory and ultimate failure in less than 30 years has much to teach us about . Digital transformation Started in 1985 Blockbuster was a retail distributor of movies and V , a chaste VHS tapes who rented videos to members out of their stores. The company reached a high point in 2000 to 17 years after its inception, with 9000 outlets and revenues of nearly $4 billion. 11 years later, it was out of business, with the ignominy of having its assets sold off for $235 million in 2010. But we can learn much about blockbuster in digital transformation by applying our five stage digital maturity model to the history. At the beginning, they truly were in stage one conditional. Their retail stores rented VHS tapes in analog technology and the digital technology that uses mostly at the point of sale. In inventory tracking. They have digitized some of the business, but only because there were not many other options. With the advent of DVD technology, Blockbuster moved into the conversion stage. They converted their analog cassettes into digital products with many attendant benefits. The problem was that just voted the same time. In 1997. Another start up that you might be familiar with called Netflix came into business. Netflix was right in the production stage. In tech speak. Netflix was born digital. Netflix started out with DVDs, and rather than having retail outlets, they used a mail order and had a subscription model. This business model worked well for Netflix within five years, they had over 600,000 users, and we're generating $300 million in revenue. This is where the stories diverge, and not in a good way for Blockbuster. Essentially, Netflix decided to move into the innovation stage in Blockbuster. Did not. Blockbuster hung onto its business model piece was working for them. They tried to live in the status quo Zoraida Fact. Their model was so lucrative that at 1.60% of their revenue are $800 million was in late fees. It was a classic case of It's Not broken. Don't fix it a guiding principle that can have catastrophic consequences In an era of digital transformation, Netflix are there. The hand rapidly moved from the production stage into the innovation stage. By embracing streaming services, Netflix fully embraced a virtual marketplace that was emerging via the Internet and complementary players such as Apple and other tech companies. The result was a phenomenal success to the point where in 2018 Netflix was worth approximately $68 billion had over 100 million subscribers who collectively watched about one billion hours of video every week. While there's much to be learned by this case suffices to say that decisions leaders make about how to leverage on, not leverage technology and running their businesses can have severe consequences. So while we may not be setting the digital strategy for global enterprises, we should be aware that the decisions we make about technology our foundational element to running our business big A. Not so big for now, though, To bring these points home, let's apply these concepts to your current workplace by completing an exercise. Ah, goal here is to ask you to think about your current digital landscape and figure out which stage of the maturity model you currently occupy and determining. If you're technologies driving operational improvements, almost strategic ambitions, please complete the exercise before starting the next section. 4. Being a Digital Leader: given all the transformation changing complexity were experiencing, there's an increasing demand for good, if not great leadership. My research and my belief is that the way in which we have traditionally defined the role of leader in our approach to leadership have not kept pace with the demands of today's business. One of the prime reasons is that many leaders is still using concepts that would develop to deal with 20th century issues in in this third industrial revolution in digital transformation, we need to rethink our roles in this section. We'll drill down into. It means to be a digital leader and identify the leadership capabilities that are especially relevant in a digital economy. The first. And I think maybe the most important point to make is that good leadership is good leadership. Whether it's the digital economy in the first of second Industrial Revolution, leadership is essential to running a successful business and optimizing the potential of your people. There are hundreds, if not thousands, of definitions of leadership. As a matter of fact, if you have some time to kill, use your favorite search engine in input. The term leadership theories guaranteed you'll get thousands if not millions of hits because leadership is of intense interest. And there are lots of opinions as to what good looks like, seeing as how this is not a program focused, focused exclusively on leadership, weaken bullet all down to the concept of leadership is a process of influencing others individually or collectively, to achieve meaningful results. When applying this definition to digital transformation, there is a useful framework for understanding leadership along two dimensions, leading and managing in many ways leading and managing two sides of the same coin leadership. And that's especially true when an organization is trying to shift and transform itself. The underlying concept between leading and managing is that leadership requires a balance of both activities in order to successfully managing organization. Additionally, we should be aware that many of us tend to emphasize one over the other when conducting our leadership practices. Let's look at how the two dimensions work together in highlight many of the elements that differentiate them in bind them together. When we think about the function of leadership, we think about what's the primary focus of a leader? How did they set direction? How do they think about the people the orientation towards the talent and the practices they engage in. And there is differentiation between the way leader looks at that when leading in the way leader looks at it when managing. When you're talking about the primary focus, leaders tend to be much more focused on the people, much more focused on the motivation setting the vision, the purpose and getting the people motivated to move forward in a line. When you think about managers in the whole notion of what are we trying to do from primary focus, they tend to focus on things in getting things done in managing projects. In moving things forward. Leaders think about people. Managers focus on the things and getting it done. We also think about the notion of that three managers and leaders set direction in the way you can differentiate the two his leaders think about creating the future. Where we going? Why is it important for us to get there when manages a much more concerned with how we're gonna optimize our investment in the president, how we're gonna improve the present conditions to be able to execute against our plan? We also think in terms of the orientation that leaders have relative to the people. When you think of a leader demonstrating leading capabilities, they tend to want to empower people and delegate in a line people and enable people to realize their full potential managers and not in a negative way, more concerned with control about the activities in the performance of their people. And, lastly, keep practices that leaders. The exhibit is that leaders want to create change and managers want to manage the change so the two dimensions are different. But I said before they really embody a balance that needs to be represented within the concept of leadership. The reason this dichotomy matters is that there are times when people need to be led and activities need to be managed in practice. Leadership with the management tends to lead to motivated yet undisciplined talent. Delivering variable results in an over emphasis on management leads to compliant, relatively disengaged talent delivering average results. It is up to us as leaders to be self aware of where we stand and whether we should be emphasizing leadership on management when it comes to digital leadership. It's a particular kind of leadership competence, an extension of our core leadership skills that adds an important capability. We need to respond in the digital economy. As we said, leadership was about influencing people's decisions individually, in collectively, trying to get something done to achieve something of meaning and purpose. Another key starting point for a discussion of a leadership is that we need to remember that who you are determines how you lied. We can't escape many aspects of our leadership identity because their court to who we are a personality, what we value, what we believe. What we can do is to develop a level of self awareness about our natural predispositions and examine if they are still valid in a digital workplace. If we might need to modify our approach to acquire new skills, that's what this section is about, creating an understanding of what it takes to be a good digital leader and then assessing yourself relative to those standards. Becoming a great digital leader in getting work done through others through the use of digital technology requires embracing a different mindset, as well as thinking and acting in a manner that fits today's digital culture. A change in strategy, especially a transformative one, requires a change in mindset, his Einstein said. We cannot solve our problems with same thinking we used when we created them. Let's look at some particular dimensions relative to the state of mind that we should be thinking about. Leaders need to be driven by vision and purpose, answering questions such as What is the endgame? Why is this worth achieving? Are central elements and gather villainizing central elements and galvanizing the effort to achieve digital transformation. We must come from a place where everything we ask our people to do has to matter. This goal centred focused gives you stakeholders direction and guidance, which is increasingly important as the tasks become more complex and difficult. The second point embracing a digital life simply means that you accept that technology is not going away. You accept the notion that technology is an essential element of getting just about anything done. In today's workplace, you accept the reality that we all need to become lifelong learners, but how technology functions in the value it can bring As you get deeper into digital transformation. You realize that technology requires creativity and innovation to truly optimize its potential, especially as you move into the production, innovation and optimization stages of maturity leaders. We need to create work environments that allow for experimentation to let people try things to fail forward, to fail, fast toe, learn through experience. Well, it may seem a bit dark to borrow a phrase originating from Aztec and Spanish history. It says that Cortez, when first landing in Mexico in order to demonstrate that there was no going back to Spain , burned his ships in the Mexican harbor. Well, that may seem a bit over the top. The metaphor works here in the sense that there is no going back or shying away from the basic need to figure out how technology fits into your business. In a final element of the digital state of mind is to fear the lure of the routine build, Allen added. You vote if it ain't broke, don't fix it has been stood in its head. We need to question the routine and forever be on the lookout for new and improved ways of getting things done. And you know you are in serious trouble if you hear anyone on your team used the words because we've always done it that way. On some variation thereof. Asked Blockbuster or deck How that is working out for them. Story of Ken Olsen's famous quote about PC's and then being bought by compact, he said. There's no reason for any individual to have a computer in their home. As you or your people become aware that new technologies might provide different ways to get things done, you are almost obligated to check it out On the other side. In addition of the state of mind is the ways of thinking and acting. These adjective describe the fundamental criteria that we need to commit to muscle memory in terms of how we approach digital transformation. First is seeing every issue as an opportunity to incorporate virtual solutions into our workforce DNA. It can spend simple things like working from home or accommodating remote workers to creating virtual tier three client support teams ready to apply remote diagnostics to solving the most urgent critical. You choose our customers of facing Just think of NASA being able to troubleshoot robots, surveying the surface of Mars, the limitations of space and time Onley in our heads. Second point is to think holistically is about continuously considering the interdependencies to understand how one piece of the business is connected to another. How what one person does influence is another and how technology can impact for good or bad . Those connections As an example. If I'm going to digitize health records in a doctor's office, I have to think about what systems could be put in place to access that information. Who is going to maintain the integrity of those records and information? What is my security protocol? To make sure the right people have given access and the bad guys or not, who's going to provide service of the platforms training for the users, etcetera. Understanding how all the pieces fit together leads to better decisions and outcomes. Third, embracing networks as a core operating principle is critical. Technological networks and social networks play a part in just about all the work that gets done in organizations. A digital leader has the challenge in the opportunity to provide the infrastructure, to facilitate MAWR productive networks across the relevant ecosystems inside and out of the company, and to harness the network effect for the benefit of the organization and the people who work there. Essentially, being a digital leader doesn't depend on deep technical expertise and practical technical skills. Being a successful digital leader is more of a shift in how we think and becoming digital first and the way we think about our role as a leader and how we approach getting things done. We've covered a lot of ground of a leadership and what it takes to be a digital leader. So let's do an exercise. We want you to conduct a self assessment around your digital leadership profile. We'll do this by asking how some of the concept we've been discussing apply to yourself when you turn to the workbook to see that we ask you to assess yourself relative to leading versus managing, as well as identifying and understanding your way of looking at the digital world. Hopefully, at the end of this, you'll have a pretty good idea, your approach to the digital world and if there any changes that you'd like to make and when you return, move onto the next step of being a digital leader, which is embracing a systems perspective 5. Embracing Systems Perspective: ultimately lead. His role is to optimize the positive impact of technology on the organizations and people leaders. Chances of success could be greatly enhanced by viewing organizations as complex systems with many interdependent and moving parts that need to work together to produce meaningful results. Let's begin our understanding of how toe do that by applying a systems thinking approach to understanding how organisations operate. So before diving into an explanation what we mean by systems thinking and how leaders can employ that framework into the digital transformation. I want to take a moment to understand some fundamental concepts about how organizations work to begin with, and this is a term of used in hundreds of workshops. An organization is a social construct. Understanding what we mean by that phrase can best be explained by taking a look at each individual word. Social, of course, means people and in reality organizations are just a bunch of people coming together trying to get something done. So organizations are a kind of society. It's in the construct aspect of social construct where it gets interesting because this group of people, this mini society, needs to have some type of structure and process in order to optimize their effort in resource is and that social order needs to be constructed. Therefore, organizations are social constructs in the sense that someone, some group of people has built, constructed a society and called it a company with you as their current leader playing the role of principal architect. Secondly, this construct operates at three levels. The organization, the team in the individual at the highest level. The company operates as an aligned collective organization, with the ultimate mission and goals of the company realised at the next layer team or department. The organization is divided into logical groupings that create pockets of excellence to execute different elements of the plan. Finally, the fundamental building block is the individuals who are the company. The leaders. Responsibility is to balance the man's of all three constituencies organization, team and individual while getting things done as such, because at it's cool, organizations are just a bunch of people trying to get something done. We need to realize that organizations don't change. People do, therefore, to influence an organization's decision to embrace digital transformation as a means to solve their problems out of work more effectively, we need to understand how to help its people accept the change, then, if I may be so bold, the first group of people who have to change our the leaders. As we said earlier, the leader's role is to influence the collective action of individuals and teams to achieve a common goal. Do as I say and not as I do, won't cut it when trying to convince your people to adopt technology as a means to achieve that common goal, the leader needs to have authentically embraced the digital life we talked about earlier to truly convey the message and have people believe to make this happen in a complex environment with multiple departments with different kinds of people and where there's an interdependence between various elements within the organization, it logically follows that leaders need to adopt a systems perspective when thinking about an organization figuring out how all the pieces fit together to produce results and how technology might alter that landscape. With that as a backdrop, it's time to take a deeper dive into systems theory, are released enough of a dive to help you put it into practice, managing your organization's journey into digital transformation to start with a true objective is to get leaders to adopt systems thinking, which is a way of understanding the performance of the whole by looking at the parts and how they work together to produce the desired outcome. It's a perspective which links back to AH, belief in maintaining a holistic perspective throughout your digital transformation. One of the basic tenets of systems thinking is that a system is an organized collection of parts that are highly integrated to accomplish an overall goal. Each part of subsystem within the larger, complex system contributes to producing the desired output. End is in this working together and interdependence that defines a true system. A system example is that you can look at your automobile is a complex system each subsystem within the automobile, the engine, the power plant, the fuel injectors, the brakes, the steering wheel of the body, the tires all work interdependent. Lee to produce motion into achieving the automobiles purpose. Another defining characteristic of a system is that it needs to be viewed as a whole that can't be divided into independent parts without losing its essential properties off functions. In other words, if you broke the automobile down into independent parts and separated them. Each part would technically still be functional, capable of operating. But the automobile is a whole, would not function sexually, would not exist, could not perform as an automobile, could not perform its essential function. And even deeper thought around. Systems thinking is that producing an output isn't just a sum of the parts. It's not a one plus one equals two kind of equation. It's really the notion that all of these parts working together within the system produces the most powerful collective outcome. And when it comes to systems, we need to realise that you cannot change one part of the system without impacting the performance of the others. To use our automobile example, if you own a Formula One racing car with a modified jet engine and to save fuel, you decided to install a four cylinder Volkswagen engine. The results would be suboptimal at best. Lastly, the collection of pots which forms the system need to be understood relative to the individual contribution to the operation of the whole system. In constructing your organization, your society, you need to select the best pots for the job and then assemble them into an effective and productive system. Let's pull it together by using a simple example of how it might apply to your business. A typical company will have an engineering research and development department that creates and develops its products. You'll typically have a production manufacturing group that will produce the product, and then you'll have a marketing and sales department told position the product and bring it out to the client for purchase. Then he's nothing is perfect. You have a customer services group, which somehow makes it all come together. Now let's assume we started out with the hardware based product, and all of a sudden we're using a software based products. Well, we established our base distribution system on a server based application, and now we need to move it to the cloud to pull off those kind of changes we need to coordinate the transformation of each department in the organizational system. These are six. Success depends on all of these parts working together to produce the outcome. So when we introduced digital transformation into our businesses, we need to be able to map the consequences across the entire system, help us do that. There are many organisational systems models out there, and most of them can help to identify the interdependent parts and how they work together to produce meaningful results. Models such as McKinsey seven s, the Burke Litwin Organizational Change model Gold Buried Star Model each have certain elements in common that 1/4 making this system work and I useful depending upon the practitioner in the context simplified model we're looking at here incorporates many of the key elements. All those other models, the core elements. Those would be the strategy of the organization, how you have structured your resource is and responsibilities, the people you have within the organization and are you tie the work together through process. What we're adding that is not typically included in other frameworks. Other organizational models is that digital technology is now one of the core elements of understanding the organizational system and how it operates. Digital technology can enhance influence each individualized component as well as tie of all the components together into a fully functioning, optimized organizational system. Technology has become central to the way we structure and organize our resource is selected , enable people to work, optimize the process that enables the workflow and ultimately should influence our business strategy or on how we compete, how we deliver products to our clients and how we satisfy each element of our value chain. And these organizational systems can scale from small mom and pop operations, individual departments or teams of two significantly large enterprises. The point of understanding systems theory and its relevance to organizations is twofold. One. By understanding each of the interdependent elements, you could construct a highly productive, efficient system. And, as we just mentioned, technology now plays a central role in making that happen. At the top of the chart of strategy, the late Jay Galbraith described strategy as the company's formula for women. Winning the company's strategy specifies the goals and objectives to be achieved as well as the values it can include the mission to be pursued and essentially sets out the basic direction of the company. Strategy leads to structure. The organization of the company's resource is often just thought of as the company old chart structures about the flow of information it defines where decisions are made, sets the operational boundaries in place and serves to clarify who does what to whom processes determine how work really gets done and cut across the organization. Structure processes air a systematic Siris of activities designed to produce a result and come in all shapes and sizes in the workplace. It could be as large as a company supply chain down How requisitions I'm filled office supplies. Key to making the whole system work is people. The company's strategy should determine the kind of talent needed to make it happen. The people dimension is concerned with all the factors that make sure we have the right people with the right skills in the right place at the right time. As we struggled to deal with the organizational impact of digital transformation, the third industrial pollution that is engulfed us, we need to acknowledge that technology is the center of the AWG system strategy structure, people in process to use a physiological metaphor. Digital technology has become the nervous system for our organizations coordinating actions across the enterprise by transmitting information to and from different parts of the company and beyond. I could go on rationalizing that metaphor, but the point is that just about every aspect of a company is touched by technology, especially at the higher levels of the digital maturity model as you innovate and as you start to think about optimization. All of which means that as we assess technology's impact on our organizational system, you must also explicitly consider the best use of technology while also considering its subsequent impact on the rest of the organization. To pull this all together. Let's conduct another exercise here. We're gonna ask you to apply some organizational systems analysis and then ask you to assess the current use of digital technology on each dimension of our organizational framework. 6. Deploying The Right Technology: now that we've adopted a systems perspective and have a model we can use to understand what pots of our business are going to be impacted by digital transformation, we want to take a deeper dive from a practical application standpoint and talk about the three building blocks. Associate it with leading digital transformation and those would be technology people and work within each one. We're going to talk about key considerations leaders must make to successfully turn swarm their organizations. And these three dimensions technology people in work apply at every stage of the digital maturity model. Ultimately, digital transformation is about embedding digital technology into the very fabric and fiber of our products, processes and business models. Well, we can't get there overnight. We need to build the capabilities one stage at a time. Those capabilities continuously be divided into one of these three categories. Ah, first focus is going to be on technology and activities. The leadership conduct when deploying digital technology into their organization. We'll stop by looking at key dimensions. Managers should consider when making the decision to deploy technology at all, and then we're going to discuss taking a portfolio approach to managing technology I want to take a moment to reintroduce the digital maturity model as we consider the interplay of technology people in work for one very important reason. Where you are in the model is just starting point for your transformation. As we discussed, the focus of the digital transformation at the early stages of the maturity process is different than those at the later stages. But the earliest stages the leaders focusing on enhancing operational effectiveness by deploying technology in a very targeted, often compartmentalized manner. In the latest stages, the leader is thinking about how toe transform the very nature of the business in a more integrated strategic perspective. So in the early stages, there's typically no grand unified digital strategy. Further down the line, leadership is called upon to think about a purposeful collective digital strategy that will reshape how the company does business. Having said that, let me start on discussion about technology by saying that discussion about decision making is not about the process of selecting and purchasing one particular type technology over another. We're not talking about doing a spreadsheet analysis to determine return investment on the best value for a technology dollar on a feature function basis. Our focus is on the leader's role in creating the right environment, making decisions which enhance the probability that the technology will yield the desired outcomes in value, conducting the rite activities to enable the rapid acceptance and utilization of the digital solution. As such, we need to realize that when we're thinking about deploying technology into our workplace, it really is a business decision disguised as a technology purchase. In essence, it's really not about the technology per se. We should be starting with the end in mind in terms of defining what problems we're trying to solve, what opportunity we trying to take advantage of, and then begin to think about how this particular technology will make the greatest contribution to achieving that desired result. This can scale from trying to drive him or lean and efficient supply chain that reduces costs and provides a better customer experience by installing a global e. R P system down to deciding to enhance the communications, a collaboration between a virtual product development team by standardizing on a single version of videoconferencing software. The point is that you decide to deploy technology based on its ability to solve the problem at hand, and not just on its bells and whistles. The second point is that technology is evolving faster thing people can adopt it. So we need to choose wisely from not only the functionality and potential benefits of the tech itself, but also from the ability of our people to absorb adapt to it. This demands that a leader recognizes the capacity of the people to take on additional technology and all of the administrative overhead it requires to put in place. One of the core requirements of being a digital leader is to treat technology as an essential requirement of doing business, just like strategy, structure, process people. So whether the technology has been dropped on us from above all whether we made the proactive decision to implement a particular technology because a friend told us about it and we had room on the corporate credit card, we need to make sure that it fits within our digital landscape and into the flow of our business operations, and that we performed our due diligence to drive its successful adoption into a work environment. If not, we may well find ourselves surrounded by a random collection of technologies that promotes the balkanization of our digital environment, where there are three different instant messaging systems, a number of different virtual community platforms, several competing versions of knowledge management servers that actually end up preventing the sharing of information we are the gatekeepers. And to play that role effectively, we need a vision strategy in a plan. Soon, Amado were the decision to deploy a given. Technology originates. We will be able to stay on top of it and guide our organization through it. As Yogi Berra once said, If you don't know where you're going, you'll end up someplace else to make sure we don't end up with Yogi as I co pilot. There are five technology related decision points that we need to clarify at the very beginning of the selection and deployment process. And by the way, these questions apply whether you're being proactive or reacting to some form of digital transformation. Question number one is what stage are you in in the digital maturity model, and how does this technology fit into your overall vision architecture portfolio? Do you have a clear vision purpose of reason for even considering this technology Digital solution? Why does this technology matter. Why does it have to be considered now? There has to be a strong business reason in a value added business case to take the time, energy and resource is to place this technology into operation. We're starting with a clear vision and purpose. You can articulate targeted outcomes that will drive the rest of the decisions that you need to make and the activities that your organizations need to take, and you will trade a higher probability of optimizing your investment in technology. Consequently, a stakeholders we have a common understanding of why they working so hard why their work lives have been disrupted in the value of the gold twits. They're all working generally, increasing motivation and engagement. Question number two What particular problem are you trying to solve? What opportunity you're trying to take advantage of? It's a finer version of number one, but it starts to articulate in a definite fashion. The end game number three is what is your time horizon and does it balance short term results with long term technology considerations? We could, all by technology that as a great shine to it looks good. But within months, no one's using are using effectively question for is before deploying new technology. Are you getting the most out of your existing investments? Does it have capabilities you may be unaware off are never used. For instance, if I had just completed the conversion of all my technical and engineering documentation onto a centralized digital platform, my team is just learning how to access and utilise the information while editing all the files. It would be crazy for me to, then decided I'm going to introduce a fully automated, network based help desk. They will allow my customers to use the database to troubleshoot their own issues. That doesn't mean that we shouldn't be able to attempt it. It simply means that we had better be prepared to do a lot more work in order to pull it off and think about the impact on our workers in Fort Activity. The last question is, does the relevant support exist, especially in the early stages of the life cycle? And what is the role of I T and technical services? The question does support exists may seem obvious who proceed with the project if they didn't have the necessary support and resource is to go forward. Point of this question is to make sure you audit whether or not you are really ready. How is the tech going to be physically acquired? Distributed, set up, train supported. It's about making a good business decision and then making sure all the necessary supporting infrastructure and resource is Aaron Place to increase the probability of a successful implementation, one that can be sustained over time. By the way, we call out I T and Technical service out for special attention because the role of information technology and services, whatever you may call it in your organization, has dramatically changed, which goes along with our discussion of the radical transformation of work I t. Is in the eye of the proverbial digital hurricane. So as we consider deploying new digital methods, we need to be in lockstep with our I T colleagues. Technology has become infinitely more complex only in terms of its functionality in its application, but also in terms of its connectivity, infrastructure and security considerations, just to name a few. It has reached a point where it is unrealistic to think that mere mortals a k a business leaders trying to run our business and a hyper competitive digital economy can also be technical expert. It just doesn't work that way. As a result, when we're considering deploying technology we should be in touch with and partnering with the experts at our disposal, the one caveat I would make is if you don't get to support, you're looking for demand more just as you are being asked to step up to the challenges of the Third Industrial Revolution. We should also expect our colleagues, our partners and the people we depend on for support to make that same commitment of riding a new range, a new level of value added digital services. A good way to keep technology in perspective while making the best business decisions possible is to take a portfolio approach to your investments in digital technology. A portfolio approach begins with the recognition that we typically have a range of technologies deployed in our organizations, with each technology performing a specific purpose that could be organized into different categories, a k a. A portfolio. By looking at the full collection of technology as it fits into an integrated portfolio, we could begin to make more effective decisions about the technology we use and how contributes to the success of the organization as a whole and the people who work there. To begin with, I t portfolio management could be a formalized process that helps a company manage and maintain the entire pool of I. T. Resource is across an enterprise. It's a large field with lots going on. To do that. It typically takes into account the existing and planned I T Resource is and provides a formal approach for analyzing, planning and executing I T portfolios throughout the organization, and it typically falls under the purview of the I T to poverty. For our purposes. We're going to use the I T portfolio approach to understand how we currently use technology and to create an optimized I T. Environment for ourselves. And the typically or five layers is the infrastructure layer, which enables an organization to deliver I T services and solutions across the ecosystem and is available to just about everyone. Operation supports the day to day functioning of the company infested, stating ongoing business transactions, making the company work on a regular basis. Management information systems provide the information and analytics support effective decision making as you move up into enterprise collaboration. This extradites collaborative efforts across the enterprises, ecosystem and at the top layer value transformation. It leverages digital technology to create value for clients into all the company and increasingly efficient and effective ways. Collectively, these categories cover the range of value added services that a company could leverage in conducting their business in terms of the digital maturity model. In the early stages, you may well have elements of the four bottom layers, especially at the conditional and convergent stages. As the firm moves into the production and certainly into the later stages of innovation and optimization, the pieces start to come together into a unified architecture that theoretically, in reality, many firms keep adding pieces of technology to solve unique problems of processes and end up with disconnected systems that require a great deal of effort. Declude together adding costs and draining productivity. One of the key points about the portfolio is that the sooner you can start to view your digital technology environment is a portfolio being into manage it holistically. The sooner you will begin to reap the benefits of investment and minimize, if not avoid the tech debt associated with straightening out the hodgepodge of technology that many companies are now facing. Just a importantly, managing the portfolio enables better decision making in terms of where to spend Your I T budget relative to organizational need to pull this all together in your workbooks. There's a lot more information about what kind of applications what kind of technologies fit into a portfolio at each Lear, from infrastructure all the way up to value transformation and in the exercise. Using these tools and this information, I would like you to pull these concepts together in an actionable way when you understand when you look at the decisions you may be currently facing in terms of purchasing and deploying technology. Looking at the five questions we've asked and say, Do they apply? And have you got good answers for all of them and then looking at your current I T environment and start to think about where in the portfolio do these technologies fits and other gaps in places where you need to focus? So please look at the additional information about portfolio I t portfolio management in the workbooks and please complete the exercises and I'll see you back here soon. Thank you 7. Assessing Digital Literacy: there are multiple dimensions to consider when thinking about how to lead people through a digital transformation such as gold setting, performance management, coaching, counseling, training. Supporting resource is etcetera. In this section, we explore leading our people from two perspective that a specific toe leveraging digital technologies and means to transforming your business. The first is the notion of digital literacy of competence, and the second is assessing your people's willingness to adopt the new technology following a performance manager model we're going to look at, Do they have the capability to do the job? Can they which we referred to his digital literacy? And do they have the motivation to spend effort doing it? Will they, which we referred to as technology adoption? In simple terms, all the motivation and willingness in the world doesn't matter if a team or an individual doesn't have the ability of skills to use the technology. And conversely, being highly proficient won't make much of a difference if there is no desire motivation to get fully engaged. Let's start with digital competence, as we mentioned earlier. Every company is a tech company. Companies of every size depend on digital technology to one extent or another using the digital maturity model technology either enables more efficient operations are enhances the execution of a digital strategy. Hubble at a fundamental level. Therefore, the potential to take full advantage of digital transformation is bound by people's ability to use technology. I e. The digital literacy digital literacy answers. The question can are people used the technology at their disposal to successfully perform their roles and contribute to the success of the organization. We define digital literacy, our competence as it's often referred to as the ability to use digital technologies in a meaningful way in the performance of work. By the way, this is not to say that everyone needs to have a PhD in computer science. Well, we certainly need specialists and experts. We also need a pervasive general expertise in digital technology across most, if not all of our people. This is especially true if our goal is to become mawr digitally mature and apply technology to as many dimensions of the business as possible. Our focus is on understanding what the general expertise looks like and then applying it to our people before going deeper into the specific competencies that comprise digital literacy. It's important to recognize that there is a difference between digital lifestyle capabilities and digital workplace proficiency. Just because someone is perpetually connected to some form of social media, another or some online app doesn't mean they know how to apply that expertise toe workplace technologies. It may mean a leg up on the learning curve. They may be able to learn faster, but it is not readily transferrable to the workplace. Expertise in Snapchat texting and Fortnight does not directly translate into anyone's ability to use the new E. R P system or even set up a global video conference call between a distributed product development team. As such, leaders need to be able to gauge their people's technical expertise relative to implementing any level of digital transformation. To help with that effort, let's dig any deeper look at this specific competencies that comprise digital literacy. We could break digital literacy down to four core competencies, the first we call information defined as the ability to manage information as well as assess its relevance and purpose. The second big bucket is communication, the ability to communicate and collaborate in virtual teams and networks. Production is the third meaning the ability to apply digital technology to change the way work is done and to drive new value generating business models Last and Fourth Security, the ability to use digital technology and a secure, safe legal and ethical way. Each, in turn, can be broken down to specific behaviours, which could help assess and develop them as necessary. For instance, looking at information, we can define that confidence as the ability browsing, searching, filtering, data, information and digital content, as well as the ability to judge the relevance of the source. And it's content, as well as the ability to store, manage and organize digital data, information and content. Communication will be broken down further to the ability to interact, communicate and collaborate through digital technologies, as well as exhibiting appropriate netiquette conforming to cultural expectations as well as managing one's digital identity and reputation. Online production could be further defined as the ability to create and edit digital content. The ability to identify needs and resolve problems with appropriate technological approaches, as well as the ability to use digital tools to innovate processes and products and security could be thought of as a sub level as the ability to protect devices, content, personal data and privacy and digital environments, as well as the really protects one own one's physical and psychological health and to be aware of the environmental impact of digital technologies in their use. To be sure, each of our environment is slightly different than the next. Each organization has its own unique attributes that informs its culture and competitive advantage. The point of digital literacy is to establish a baseline understanding about the capability of your people to execute your digital transformation. Once you've established that baseline, you can then truly take advantage of your organization's singular strength to translate these concepts into practical application. Let's do an exercise that ask you to assess the digital literacy of your team and organization and identify any significant gaps that may need to be addressed in the workbook. You'll see that we have provided a proficiency scale sub competencies that could be applied to your team, all of which will help you make a more accurate assessment of your people. Please complete the exercise and then we'll continue 8. Influencing The Adoption Of Talent: now that we have the capability to assess our company's level of digital literacy, determining whether or not our people have the ability that they can implement the technical elements of our digital transformation. It's time to think about the motivational side of deploying technology. Will our people devote the time and energy to adopt the new technology to successfully influence your people's willingness to adopt the technology of deploying? We're going to introduce a process called diffusion of innovation. Diffusion explains how a group of people adopt a new idea behavior, our innovation as part of our digital transformation initiative. The goal of the diffusion process is to accelerate the rate of adoption, which we define as the speed with which an innovation or digital technology is adopted by members of the target population. In other words, we're trying to make it happen as fast as is reasonable. Towards that end, there were three dimensions of the adoption process we can leverage. One is market segmentation, the second is decision criteria and the third is mapping our stakeholders. Let's start with the discussion about market segmentation. To no one's surprise, different people react differently, did change your innovation. The purpose of this segmentation model is to help you categorize your potential users according to their predisposition, to accept or reject change. Based upon that analysis on categorization, you could devise appropriate plans for leveraging the people who are supportive of the change and overcoming that resistance of those who are against it before diving into how we leverage each group. What's defined with each category means innovators are those people who want to be the first to try the innovation. They are venturesome and interested in new ideas, ideas these people are willing to take on take risks and often the first to develop new ideas. Very little, if anything, needs to be done to appeal to this population, other than letting them know something new is coming, they want to try it. They want to experiment it, their wrist acres. The next category is early adopters. These are the people who represent opinion leaders often times, and they enjoy leadership roles and embrace change opportunities. They are already aware of the need to change, and so we're very comfortable adopting you ideas. The strategy is we want to use to appeal to this group is to include how to manuals and information sheets on implementation. They don't need much convincing. They just want to know how to use it and what the benefits are going to be. There not is crazy, so to speak, as the innovators, but they're willing and mawr oriented towards risk taking. The early majority of those people who really lied is in adopting new technologies. But they do adopt new ideas before the average person typically need to see evidence that the innovation works and that there's a practical application before they're willing to adopt it. Strategies we can use to appeal to this group includes success stories and evidence of the innovations, effectiveness references and certainly talking to the early adopters in the innovators. Late majority are the people who are skeptical of change. It will only adopt an innovation after it has been tried by the majority, a large segment of the population. They we need to appeal to them through information and how many other people have tried the innovation in the benefits they have received from it in the positive press that they'll get Lag Ridge at the end of the curve of the people bound by tradition and very conservative, this skeptical of change, and they're the hottest group to bring on board. Strategies to appeal to them when you have to appeal to them. Include statistics, fear, peer pressure and really, they're hard to change. But innovators to early adopters a likely supporters of innovation for their own reasons, while the late majority and leg is tend to present the resistance. Knowing this, we can create plans for our people, both individually and collectively. As an example. When we were introducing a new performance management system at a former employer, our plan was toe pilot our prototype and conduct user acceptance testing with people who we knew fell into the innovators in early adopter categories, both to get their feedback. We needed as much as possible, as well as to gain thereby in in the early stages of the process, planning to use them as references in opinion leaders to roll it out to the early majority . When we announced the process to the whole company, we concentrated our limited support in helping those functions. We characterized his visionaries and pragmatists to be a successful and as competent as possible as early as possible. We knew that over time, the success of these likely supporters could be used to garner support from the conservatives in laggards as much as you ever win a language support. In the end, the strategy worked in the process is still in place nine years later with the obvious improvements in updates. So understanding which category our buyers and uses fell into helped us develop a strategy that effectively promoted the adoption. In addition to segmenting the target population into practical categories are adoption strategy can be greatly enhanced by realizing that there are five key factors that influence an individual's decision about whether or not to adopt an innovation. These five factors play a particularly important role during the planning and introductory phases of digital transformation. Let's take a look at the five factors and provide a deeper exploration of how you can leverage them in driving your digital transformation. The first factor is relative advantage. It's the benefit of changing worth, the risk of giving up the status quo. It's the degree to which in innovation, is perceived as better than the current solution. People measured in terms that matter to the stake holders. Is it reduced cost? Is it ease of use. Is it social status, or is it satisfaction? So is the risk worth? The reward is what we're talking about here next is compatibility. How does it compare to what I already know? Feel believe, redefined compatibility as the degree to which an innovation is perceived as being consistent with the values, past experiences and needs of the potential adopters? The third criteria is perceived complexity. Is it going to hurt the degree to which an innovation is perceived by the potential user is difficult to understand and or use new ideas that a simpler to understand, our adopted more rapidly than innovations that require the development of new skills and knowledge. The fourth criteria that people assess around thinking about adoption, his trial ability? Can I try it before I buy it? It's the degree to which an innovation could be experimented with on a limited basis. An innovation that is triable represents less uncertainty. The individual who is considering it allowing for adopters to learn by doing the last of the five is observe ability. Seeing is believing, especially when someone I know has tried it before. The easier it is for individuals to see the results of an innovation, the more likely they are to adopt it. Visible results, lower uncertainty and also stimulate peer discussion of a new idea. What's important to note is that research has shown that these five factors determine as much as 49% of the variation in the adoption of new products. So the degree to which you can incorporate these elements into your strategy individually and collectively, the higher the probability of a successful adoption. Let's look at the example. Let's say you're planning to deploy an integrated business management application that ties all of your separate applications, such as sales tracking, inventory management receivables, payables time and attendance into one cloud based system. This is a good example off moving from the conversion stage of digital maturity into the production stage, where in the conversion stage you digitized all of these functions separately. Now you're trying to pull them together into a unified application platform. But of course, the success of the idea rests on getting people to be able to use it. The five decision criteria will help achieve a greater rate of adoption in getting people to be able to understand and apply it. The first factor relativity gives us to talk about better numbers, faster numbers, quicker decision making, more control over capital and cost. And the individual doesn't have to go running around opening up different APS going to different apartments. It's all at their fingertips. So this means that can they also use this example when talking to the appears about the benefits of the new application? Relative advantage is the benefit of change worth the risk of giving up the status quo in terms of the new application to clearly communicating the productivity benefits of the new integrated app, such as better numbers faster, quicker decision making, more control over capital and costs. And the individual doesn't have to go running around opening up different APs. Going to different departments. It's all at their fingertips is an advantage that, relatively speaking, would be better than the hodgepodge of different technologies that currently using in terms of compatibility when we're assessing on the user is assessing. More importantly, how does it compare to what I already know feeling believe, weaken, develop a comparative analysis that shows that the functionality of the new software will provide the same benefits of the current methods for sad additional features and benefits and speed things up and add to the level of productivity in terms of perceived complexity. We're going to ask the question, Is it going to hurt? We can provide a range of information that demonstrates and explains the simplicity and emphasizing the ease of use and user friendly interfaces that come with the new software in terms of trial ability. Well, we asked the question, Can I try it before buying? We can certainly circulate demo versions of the software and collect feedback from the initial users and last in terms of observe ability where seeing is believing, especially when you notice someone I know has tried it before. We can conduct pilots and get innovators and early adopters to test the implementation and broadcast the results and wins. In a moment, we'll do an exercise that ask you to apply each of these criteria to your own digital transformation. The third element and as we've been saying all along organizations, I just a bunch of people trying to get something done. It follows that when it comes to understanding digital transformation, we need to take the time to understand the different points of view of our stakeholders and what they bring. Teoh the adoption process to begin that sorting process of putting people stakeholders into different buckets. We can look at stake holders in two broad categories. One is those the people who were trying to influence and the other is the people who can help us influence them. Looking at the folks that we need to influence, we can separate them into three buckets. We can put people into the decision making category. These are the key decision makers on a go or no go basis. This is the group who have the power and responsibility to make the decision to go forward , to invest, to continue with the deployment. The next big bucket is the gatekeepers. These are the people concerned with the technical fit, the feeds and speeds. Specs are US mentality. The metrics. Their role is to provide the technical expertise around whether or not it's a good two decision to deploy a given technology. The broadest bucket for sure, are the users. These are the people. Their ability to perform the work is directly impacted by the technology. This is personal to them because when the music stops in all the debates have done. These are the folks who have to live with the changes and figure out how to make it work. And each of these constituencies looks at the role in the transformation process through slightly different lenses with different criteria for what good looks like In order for us to be effective, we need to understand that and toe provide them with the specific information they need to play their roles effectively. Decision makers need the facts and figures ended draw a straight line between the deployment of technology and a return on investment, achieving growth targets and reducing costs. In other words, decision makers are looking at business based facts, figures and results that will convince them to say yes, gatekeepers are concerned with the technical fit of the solution into their organization. They have focused on issues such as, well, it fit the network protocol. Does it have the capabilities we have itemized in need? Does it have the speed, the throughput, the transaction processing capacity that we demand in our systems? The use is, on the other hand, concerned with productivity the ability to do their jobs well along with the fear and uncertain that comes with change as an example of users, either robotics firm is a client who is finding that the uses that these sites are concerned for the jobs for the safety, in addition to being concerned about the level of productivity and the ability to perform their jobs well, my client has initiated an adoption strategy that specifically targets each of these concerns, especially leveraging the five adoption. Fact is, we just discussed so leaders should be able to categorize this. Stakeholders into these three buckets of decision makers are gatekeepers are users, so they can influence them appropriately. One highly successful approach to dealing with all three types of stakeholders. It is to realize that there are certain types of stakeholders who could be a particular help when trying to positively influence the adoption process. One is opinion leaders and the others change agents. Opinion leaders informally influenced the attitudes or actions of other people by offering informal advice about the product of service change in agents. On the other hand are individuals who actively promote the new way of doing something across the peer network. Opinion leaders in change agents each want the transformation to be successful for various reasons they wanted to work. The primary difference between the two is that change agents will proactively spread the good news, talking about the benefits of deploying the technology to the company and their colleagues . Opinion leaders do it more informally at coffee, over lunch and in basic conversation. The power for both change agents in opinion leaders is that they are typically drawn from the very audience that we want to influence. This common background builds a level of trusting credibility far beyond what managers may bring to the table. It's for that reason that we should not only understand the stakeholders from a decision maker, gatekeeper and user perspective, but we also should try to identify and cultivate opinion leaders and change agents in the environment. No, it's a lot of concepts were thrown out there. Let's pull all these pieces together and apply them to your business. By doing exercise in your workbook, you'll find a number of worksheets that takes you through each concept and take you through it, step by step approach that seeing how it fits within your digital transformation. So take the time to go to the work board complete the exercise in terms of how you can drive adoption into your organizations, and then we'll continue. 9. Creating Digital Work Processes: Now that we've talked about people in technology relative to the building blocks of digital transformation, time to talk about work, we can probably define work as those tasks are activities that members of our organization conduct in order to produce outcomes and results. Logically, as we go through the digital revolution, we need to proactively rethink how work it's done in a digital enterprise at a basic unit of design, if you will work is organized into jobs or roles or whatever you call it at your company. These roles are comprised of a collection of tasks that an individual needs to complete to produce the desired outcome. By the way, it's the performance of these tasks that enables us to assess, measure, reward, coach, promote, transfer our employees the basis of performance management. Are these tasks if you think about it? Tasks are a lot like Lego building blocks. You know those plastic blocks lying around in the floor for you to step on in the middle of the night. You assemble these blocks in a variety of ways that produce a variety of buildings and shapes and forms. Tasks are the blocks reassemble and reassembled to produce the desired output, the sustainable results. We need the assembled task blocks, if you will become our jobs, our roles in a dynamic in rapidly changing environment. Leaders should become proficient, a job design of redesign moving the blocks around. And we define that as the process of defining or redefining the way work will be performed in the tasks that a given job requires. And when we had technology, the mix, we need to rethink how these blocks are assembled and how many blocks do we need and does technology add to the mix? And how how is it reshaped our building, our roles? The tasks. This process starts with having a detailed knowledge of the tasks performed in the work unit. As a manager starts to work through each stage of the digital maturity model, he or she can then consider how technology provides the opportunity to investigate alternative job designs. But before we begin that procedure, we need to realize that jobs need to be considered in the context of process. Just about everything that kids done at work follows some sort of process, whether it be formal or informal, we're gonna find a process as simply being a set of activities action steps that interact to produce a result in today's work environment. I grew ugly. Any work environment. The leader's role is to continuously create, improved and eliminate business processes by actively seeking ways to incorporate technology and to avoid automating broken processes. Let's look at a simple exercise to help explain. Thanks to the folks at Wikipedia, I was able to pull a very simple example out of cooking breakfast. As you see from the diagram, there's input all of the elements that comprise the process and what we need to do. The ingredients, the tools, the pans, etcetera is the process which is making breakfast and in his output, which is an edible hopefully breakfast. And, as you can see by this flow chart, is a Siris of activities that need to be conducted in terms of creating breakfast forest. I don't want to well, a little too much time when this, but essentially what we're trying to show is that everything is a process and a process as the input, the things we need to conduct the process. There is the process itself, which is the collection of task and activities which enable the work to get done in the output to be produced. So, using this example, let's continue to look at how processes applied a digital transformation in our role as leaders process design, our process improvement can be a simple or as complex as the work and the outcomes it's intended to produce. At its core, there are four basic steps that we need to consider what needs to be done and win second, who does what and why. Third, what decisions have to be taken along the way and forth what potential paths flow from each decision? A key change that were experiencing during the digital revolution, so to speak, is that each of these process points need to be looked at through a digital transformation lens, identifying how technology can improve the process. Let's review a couple of examples. These two simple examples show two different processes with two different issues, but emphasize the point that we need to think about what needs to be done, who's doing it, what decisions have to be made in. Based on those decisions, different paths or actions will be taken, and that's how we assemble a process as simple as complex as we like for the employee on boarding what the big decision is. We were trying to get the documentation to make sure that the employee is ready to start work. So the decision point is Dewey A. Don't we have the documentation, and based on the answer to that, a number of actions will fall. If not, we go back and get the documentation. If we do that, we continue the assimilation and on boarding process the other one, which is this some sort of security breach in our system and an alarm sounds and some signal gets sent that causes us to decide. Is this something that we need to act upon? So we decide who's responsible for that? Why are they responsible on what decision needs to be made? And one of the key decisions is, is how big is this alarm? Is that a real alarm? Is it a false alarm? Is it a major security breach, or is it a minor security breach that happens every day at a previous retailer I worked at , They got hundreds of thousands of hits every month, and they had to make these decisions. But there was a process in place to deal with it. So as we consider processes, when you think about who is responsible for doing it, when does it need to be done? What is the specific decision that needs to be made? And what are the paths that flow out of those decisions? In both instances, there are opportunities to embed technology to improve the process. And it's odd jobs leaders to think through the processes we have, the processes we need and how technology enable and enhances them to wrap up. Changes in process and work produce the need for us to rethink the roles, the tasks and certainly the competencies, the knowledge, skills and attributes of our people. As this process improvement proceeds, jobs will, by necessity, need to be redesigned to accommodate the new improved process. In many instances, new roles may be required. An old ones may become obsolete. Most staffs now have a need for a social media expert, cyber security people, someone to do data analytics, big data ai do we need embedded I T specialists, many organizations and functional technical experts, marketing, sales, supply chain engineering, learning, etcetera. People understand technology and how it works in response leaders will have to update their talent strategy and consider how to leverage the traditional approaches of development design a by talent to determine what kind of talent they need in the redesigned enterprise to go back to our example of deploying an integrated business management software platform . In the current structure, their separate roles for each function or application is payables receivables. Inventory sales. With an integrated application, we need to consider if the work is going to be centralized. How is the data going to be managed and analysed and reported on? Do we need specialists at all? Can the uses perform all of the functions themselves? Rearranging the blocks is essential to achieving optimum results of our deployment and one final thought before exercise. Through all of this, managers need to focus on getting their employees more involved for a few very good reasons . One employees of the ones who have to follow the process workflow should help them boys do their jobs better and be productive not to stop them from working. Bringing them into the equation can help maximize effort and reduce time loss. Two. They know which tasks are the most difficult digital transformation should save effort for employees, and no one knows how hard their jobs are better than they do. Trading work flows based on job descriptions or expectations may not always help having employees develop our address. Workflow related problems directly creates riel change in the day to day operation of your company and last. They know when things are working, they feel the pain first. So pull this all together. Let's do an exercise in your workbook here. We're going to ask you to select a covering business process that is a good candidate for digital transformation. We want you to map of the, as is our current state power currently works, and then we want you to think about how to identify where technology could improve the process and define its impact on your organization. 10. Managing Change: in this last section, we're gonna talk about change management in how, by employing formal change management processes we could accelerate in achieve a successful digital transformation. Now, the relationship between change management adoption is interdependency is the best way to describe it. Adoption, as we've seen, is all about getting people to use the technology on hand to have them to adopt it more readily. Change management, on the other hand, is really focused on the people. How do we get the people in our organization at the team and individual level to change, overcome the resistance and become more capable and willing to use the digital technologies ? We're putting you to play a couple of thoughts of what change? One of my favorite quotes is by John Maxwell, a leading theorist on leadership development. And what is leadership really mean in our society? We talked about that. Change is inevitable, growth is optional, and it very much is in line with what we've been discussing in this program that through the digital revolution, to the transformation change is going to happen is happening is going to continue to happen into the future. Our job as leaders is to understand that change and to grow and acquire new skills and help our people do the same. Second thought of oh, changes that all change is personal. Organizations don't change. People do, because organizations and just a bunch of people trying to get something done. So we need to understand that what we're talking about change introducing technology into our environment. We're really talking about enabling our people to change, to embrace the new way of doing business. Another key element that we want to think about is that when we introduce change and this is especially important during a digital transformation, it's not only about learning something new, it's unlearning what we already know. The fact is that we introduce change. It is very much as we saw in the five factors in digital adoption. It's about comparative analysis relative to what I'm doing right now. How is this change going to be different? What are the benefits of it? Is it worth the risk? So we need to understand that there's a way of doing something now, and when we change it, you have to unlearn that and learn something new, and do we account for that in our strategies and plans in the last thought of or changes that our approach to change very much reflects our approach to leadership in management. One of my favorite quotes is who we are determines how we lead and during the change process during digital transformation, that becomes into much sharper focus. So we need to be aware that do we need to change as leaders in the way we approach the adoption of technology and the way we enable lock people to change in order to make it happen as quickly and as efficiently as possible? When we think about change, we also need to think about that. It is a process unto itself. The fact is that change starts off. Do we manage the expectations? These two curves demonstrate that unmanaged change tends to high start with high expectations, often unrealistic, and what happens with every change it hits a trough. Resistance sets in in trouble. It's hard change is a full contact sport. So as we go through the change process, there's always going to be a dip in productivity, a dip in motivation and dip and engagement. When we managed the change through a formal process, the dip is much war shallow, and we get out of it much more rapidly. Where unmanaged change. It's unpredictable and can be a very deep trough, and we may never get out of it. And when we continue to manage the change process with the formal methodologies practices, we tend to get the results that we want faster. Whereas unmanaged change tends to take a little little bit longer and we might never get there to begin with. Now there are a lot of models out there, some great ones for different situations, for different contexts. But ultimately they all break down to five basic steps in the process. One is we need to recognize and assess what's going on. What do we need to change? Reassess the forces in the marketplace that is saying that we need to change, become sensitive to change. And then we moved to Step two, which is we define. What do we need to change? Step one? We assess that there's a need to change Step two. We define what that changes. Step three is we build a plan. And of course, one of my favorite sayings about plan is no plan. Survives first contact with the enemy. But the corollary to that is that nobody survives First contact with the enemy without a plan. The famous Mike Tyson quote is that every plan last until you get punched in the face and then we see what happens. So we assess doesn't need to change. We define specifically. What is it that has to change? Rebuild a plan about how to go about changing, and then we put it into play. But before we put it into play, you want to make sure that the workplace is prepared and you'll see in a moment we go through a commitment curve. What we're gonna talk about is the notion that there's gonna be a general level of winning in the population as we start to move people through the change process. So we assess defined plan prepare, then we execute, and there's no such thing in an organization comprised of people as a one shot deal. We need to accept the fact that change is an ongoing process that when we begin to implement and execute our plan, we're going to need to adjust it. And as we adjusted over time and using agile methodologies and iterating to the right solution. We need to find ways to sustain the change. So change is a process, a formal process and allows us to get to our results faster. And by using these five steps or any change model, you get to better results faster and you get more and more people involved because what we found through best practice and research is that we want to include in the change process the right employees at the right time in the right way. But this simply means is that we get better results. The highlight, the level of engagement of our employees in the process. So we look to embrace and engage and enable as many employees as possible to participate in the process. At the very early stages. Who may have, ah, high potentials are supervisors, our line managers helping us to find and assess and plan. And then we might broaden the audience. We start to prepare the organization for the change and then how do we touch all of the people in the organization so we truly can make a better change plan when we engaged right people at the right time in the right way when final thought about change and people is that people tend to go through. But we're gonna call a commitment curve, which means that organizations and people go through four stages before they take to ownership of the change and embrace it and make it their own. The first stage is awareness, and the sooner we could make people aware of the change and think of changes you have gone through in your life when you're aware of them and people have informed you about them and talked about the benefits of them and why they're important. That awareness leads to an openness leads the ability to Okay, I'm going to give this a chance. I'm gonna start their embrace the change a little bit. And with digital transformation, there's a lot of resistance. He's as we said, you combine the notion of digital literacy and competence with the willingness and the motivation about their do. I want to really embrace the change. Can they will they by making them aware early working, conditioning them to a certain degree that this is going to happen and why you start to move up the curve and get to a level of shared understanding that there is a need to change , whether it's competitive pressures, whether it's that cost pressures, whether it's a need to do more with less. So if we create a level of awareness, the next stage is a shared understanding that there's a need to change. And then when you start to roll the change out, you start to give people more engaged. They reach a love of shared commitment. The key word here being, of course, shared that. It's not just the leader telling people what to do. That is a community practice that ultimately will lead to better results. So the commitment curve is. Am I aware of it? I don't understand why we're doing this. What's about to happen to me. So I start to develop a shared understanding that this is important and this is what's going to happen and what it's going to happen as they begin to execute my plan and then I get to that level of shared commitment. We were in this together and we want to make it work and ultimately we get to the top where we adopted as our own. We take ownership of that So any change management process, any issues, anything we can do to drive the change enables us to get there together and together we, taking full advantage of the resource, is accepting the change in truly enabling our organization to move to digital transformation as rapidly as efficiently as possible. So enough talk for me. Let's go to our final exercise where we ask you to pull all the pieces together and you find in the in the workbook there is an exercise and that asked you to think about all of the things we've done already to this point, all of the application exercises we've done and to think about change management, and we give you some specific examples of what you might be able to do about how governance is structured, how you can put support in place and some sustaining things you can do to continue to drive the change. So please take a moment to go to the workbook. Completely final exercise. It will come back and wrap it all up 11. Course Recap: As we wrap up, there's a few key points worth mentioning. First, we need to embrace digital transformation is core to our role as leaders. It's not extra. It's not unique. It is essential. Number two. Understanding our digital strategy through the digital maturity model enhances our ability to drive digital transformation. We need to move through the stages to get through a true digital organization. Third, when executing our transformation, we should pay attention to the building blocks of technology, people in work and how they work together. Finally, all companies a tech companies to one degree or another. And ironically, people matter Justus much, if not more than ever. This means that we need to become true digital leaders by embracing a digital mindset in balancing the leadership in management demands of your particular digital transformation. We end with the one request that I end. Every course with that is try something new, have the courage to put some of these concepts into practice and continue your commitment to your own development. Good luck on your digital journey and thank you for taking the time to complete our course .