Surviving a Digital Transformation

So let’s cover off the first question; “Why would I say surviving?” Let me put it as simply as this. Anyone that has experienced a digital transformation, or started to build digital capability within a business, will know that realising transformation through a digital lens is like operating on a patient to replace their heart and lungs while they run a marathon at the same time. (There is a building a plane while flying it too but I prefer the marathon analogy!).

Now, anyone in their right mind is going to say “Why on earth would you want to do that?” Again, simply put, it is out of necessity. No one transforms their business simply because they woke up in the morning and thought it was a good idea. It is born from an urgent need to evolve their business either from cost, competition or changing market dynamics.

Likewise, I am intrigued by the fact that many leaders feel going digital is as easy as building a new app or making a website interactive. However, when their shift to digital commences, they quickly realise it is a lot more than this, and actually that shift to digital is more about their own business’ way of working, instead of the technology they decide to deploy.

This is why a digital transformation makes sense. The move to a digital way of working, combined with the need to transform, makes for a common foundation because to realise either goal requires a business to actually change. However, if a business is not willing to change and make the proverbial “leap” into the new world, then the change that a business is embarking on will simply fail. It is irrelevant how much a CEO or business head is eager to change or evolve their business as it will always be the weakest link which will ultimately determine the degree of success. The weakest link could be a business leader who doesn’t support the change, a legacy supplier seeking to latch on worried they will lose their business, or it could also be the business setting guide rails so tight that it gives the program no chance to fail.

Yes that’s right – fail. In my experience, if you don’t fail you won’t learn what works for your business. It doesn’t matter how well you have planned your strategy for digital transformation, part of the excitement is trying new ways of working and new ways of serving customers. Some will work and others won’t, but this is all about designing your business for the future. At this point, there will be many senior executives who are reading this and say “Ah yes Nathan, learning is fine but my business can’t afford to fail. We need to grow and, as such, we will seek to leverage the expertise of consultants and System Integrator’s as they will already have gone through these learnings with other businesses and then my business will simply leverage from those … right”?

Naturally, there are many organisations out there offering to help businesses realise this digital change, with amazing stories on how they can realise the change and all of the places where they have seen it or, for the lucky ones, realised it for another business. Hence, it is an option for you to have someone transform your business and receive the end product, but as any digital native business will tell you, it will come down to your ability to not only go through one transformation, but to actually realise a greater degree of business agility and hence an ability to evolve your organisation to adapt to the true constant in our business world today, change.

It is very hard for any organisation to simply say we will do this on our own, change our way of working, retrain teams, create a new structure and introduce a whole new suite of technology and platforms. Hence, it is reasonable to be asking partners, integrator's and even software partners for support in realising the digital transformation outcome. The important word here is “support”, because the challenging aspect in this transformation is back to the business change that it is targeted to realise.

So what am I saying? Basically when you are embarking on your digital transformation, a) make sure you have identified the leaders in your business who are going to own this change, b) identify partners who can help you make that transition with a clear goal of having the ability to continue on with your transformation, independent of any partner as you establish a greater degree of maturity in the business. The objectives of a transformation will take time to realise. Putting a specific timeline on the deliverable can result in assuming a business has changed, but with a trail of destruction behind and a long tail of capability still in the old world. It’s like having had the heart and lung transplant and thinking everything is fine, but then realising you are bleeding internally which can lead to a slow painful demise.

However, by ensuring you build the capability within your business, the pace of that change can be constant, holistic and ensure no-one and no capability is left behind. Most importantly, that new internal capability will bring you a greater degree of agility as your business and/or the market continue to evolve. Hence, while you go through that heart and lung transplant, it won’t matter if that marathon evolves into a steeple chase or a cross country ski race, you and your business will have the confidence to front into that change, knowing the team has evolved to a new skill set. When I say skill, I am not referring to a digital skill, but an agility skill. To the point at which you may cause other businesses to look at their own heart and lung transplant as you go from being disrupted and merely surviving a transformation, to becoming the disruptor and ultimately start leading the marathon!

Ctrl-Alt-Del

We all know what happens when we press ’Ctrl-Alt-Del’ on our keyboards – well, at least I hope you do, otherwise you may find this article rather uninteresting (now, I know a few of you just checked by doing it, so welcome back to the story). When we perform this ‘three button miracle’, we get to see the task manager, i.e all of the active applications we see on our laptop. Imagine for a moment, that you have closed all of those active applications and you are left with a desktop with no activity. Would you continue your work by simply reopening what you closed, or would you think about how you would do things differently?

In today’s “digital world”, we are increasingly comfortable to evolve our collaboration choices, social media, applications for our phone (yes, both for fun and the more serious activities). This is often because there is a better tool for us to use, or the tools we have aren’t working in the right way, or we simply want a change. Interestingly though, most of us don’t do this in our business environments. Think for a minute and ask yourselves, “Why do we do the ‘Ctrl-Alt’Del’ magic combination”? Perhaps our application isn’t working, or our PC or tablet is running slow? Are we worried that our device is stuck within a loop and can’t move forward from? Now, consider the business environments we work in. These reasons can seem very similar, yet our response tends to be a shrug of the shoulders and we continue to push through.

As you read this, consider for a moment that you could ‘Ctrl-Alt Del’ your business. Take a moment to pause and reflect on what is working, and think about whether your processes, systems and tools are doing what you need them to do? Which ones are consuming too much time or resource? As you reflect, you may also sense a glimmer of hope – that idea that pops into your head of the “What if?.

However. then the reality of how complicated or hard it can be leaps to the front again and the hope is gone. I encourage you to force that “What if” concept back to the front just for a moment – let it breathe and consider a minor application or toolset in your business that could be changed with minimal effort and would help your business start to realise the impact a pause and change could have on your organisation.

Of course, many of you will say, “But Nathan, we are already doing this we, are going through significant change as the market evolves”, or “We have tried it before and ended up in the same place”. I tip my hat to those who have not only achieved a rethink, but equally to those who are continuing to try. Without this commitment to change, then businesses will continue to plod through using what they have.

In essence, businesses can’t simply pause and then create a change. It needs to be embraced by the leaders of organisations. Congratulating one another for doing something new, without understanding how to create the right environment for it to be continually successful will simply doom it to failure. One such example was for a start-up business unit which was a business’s efforts to pause and use a fresh approach to change direction for an area of their business where they were being challenged by competitors.

I was fortunate enough to have a discussion with the start-up business unit, working under a large parent company the other day (no, not mine!), where they were being given conflicting direction – “Go forth and conquer this market as a disruptive player!”. Sounds great, right? However, this was followed by the second part of the conversation – “You must of course remain within the architecture and capabilities of the parent business so as we maximise our assets”. Now, after being ready to jump for joy, I was left staring into my coffee cup hoping that my disappointment for their predicament didn’t show. Unfortunately, this is very common for many incumbent businesses seeking to jump on the start-up bandwagon, without truly understanding the changes they need to make in their own thinking when considering what they set out to achieve.

In the case of this business unit start-up, that change from the parent company needs to be in giving them the opportunity to be disruptive or accepting that the goal in establishing the business unit is to disrupt the broader organisation. The latter would require some serious commitment, and a jump off a sizable cliff given the risks it may be perceived to have within the business, particularly as in many large established businesses, the employees are the culture, and they represent the way of working – hence changing this overnight can be challenging.

In this case, providing that new business unit the flexibility to define its market approach, its IT architecture and ultimately its culture will help to define its success. Of course, we can say “But what if it fails?” At least, if it stays within the way of working of the parent company then the assets and people can be reintegrated into the business”. If this is your thinking, then I’m afraid you will never know what success could look like. We don’t see business start-ups wondering about how they might mitigate failure, but how can then create the best chance for success.

“Hackathons” are a great example of how businesses can create the best chance for success, and to date have always been synonymous with technology led businesses, and in particular start-up environments. The idea of throwing a problem into a room with some really bright people to design and develop with a new widget or code to address a bug in a platform is increasingly common. I would however propose that hackathons become the tool of choice for our ‘Ctrl-Alt-Del’ moment.

Once we pause our business, what are we going to do? How do we ensure we don’t go back to our old ways of working? How do ensure our staff embrace this change with us? In any organisation, there are lots of bright people in their field who are keen to get more involved and with the right tools, they can have  a phenomenal impact on helping to improve the way a business achieves its objectives. The people that make up an organisation want their business to be successful; it’s what makes it a great place to work, so leveraging their commitment and channeling that willingness to succeed through these types of tools can create a great environment for change.

This for me is why leaders really need to ‘Ctrl-Alt-Del’ their businesses and have a serious think about the way they are running their organisations. Can it be done differently? Yes, I hear some of you saying –  it is simply impossible to change your business given how long you have been working in that way, but I say give your teams a chance to embrace change, a change made of their own interest, engagement and outcome. It might start small – from how a team collaborates, or how you engage with your customers, but ultimately if it gets the business thinking about the “possible”, then that can only be a good thing … right?