To Be or Not To Be - Digital

 I had to step away from my role for a period of time and as such did more reading than I have in a while and realised that businesses are going through the hardest changes and decisions that they have seen in a long time. Most businesses have realised they need to change, in fact in a recent survey by BCG[1] it was shown that 89% of Managers globally are involved in digital transformation. The challenge we face is transformations are often compared with any other business decision we take, linear, a or b, left or right. A true transformation is just that, ceasing to be what you were before to become something new. Think about the Caterpillar who becomes a butterfly, this is what business leaders should have in mind when they are seeking to transform, at the end of the initial transformation (because once you start to evolve, your team should continue to keep looking at how that journey can continue), you should be able to see the marked differences from how you operated before to what you are doing now.

Lets stay with that Caterpillar analogy, if a business decided to glue wings on the caterpillar, change its colour, it would not be a transformation, it would still do what it did before, it might look interesting, but actually we would have just made things harder by bringing new complexity to an organism that was built to do what it does (crawl and eat). Many businesses are stuck in this pattern, looking at new technologies, bringing in exciting consultants, however the way of working and the processes and roles and responsibilities all remain exactly the same. Whether there is a new app or website, without these broader changes those businesses – like it or not – will remain a caterpillar. A caterpillar who spends a significant amount of money and whose Board, Senior leaders start asking why are they not becoming a Butterfly.

This brings me to my question – “To be or not to be digital”. Many people will say that being digital is having digital channels to engage with your customers, or having an app to support your employees, these in all honesty are the cosmetics. Imagine a butterfly racing a caterpillar to get to the next branch above, now the caterpillar can eat more but how long will it take to get there and is it worth eating when it does? When we look at Digital native businesses – i.e. those who were born digital, the way they work, they way they create and continue to evolve, just think about some of the apps you use. How many of those are the same as they were a year ago, or even 3 months ago?

Being Digital requires the thinking within an organisation to change, a rewiring if you will, its really hard, but hard things done well is what will effect real change going forward for an organisation. If the organisation can go digital, then the technology can follow. Its amazing in fact there are so many technology options that if a business can transform itself it will realise that it can test ideas, and then decide what works or doesn’t as they continually evolve with low risk and high reward through a fail fast and continually learn approach.

The caterpillar puts in a lot of energy to first builds its cocoon then expends so much energy through its transformation that it loses nearly half of its weight in the process. The same is for businesses, when you are truly transforming you need to ensure it has everyone’s focus and commitment to make the change, if one part of a cocoon wasn’t ready then perhaps the transformation might not look complete or could be eaten by predators crawling in.

Ok I know enough about the caterpillar, but it is a great example for us to consider as we all seek to “Be Digital”. Use it as a measure of how much is actually changing within your organisation, are people taking on new roles, are teams working in different ways? Are outcomes being realised incrementally faster? It isn’t easy, but big changes should never be easy, choosing to be digital brings with it, risks, challenges, emotions, learnings and a commitment that many won’t have experienced before. Hence when you are thinking about embarking on your transformation, think about what it will look like on the other side for your people, your customers and yourself. How bold will your transformation be, because at the end of your journey only you can decide whether you will choose to be or not to be digital – as likewise for any transformation that remains the ultimate question.

[1] BCG Global Survey on Digital Transformation  engagement - https://www.bcg.com/press/3july2020-digital-transformation-survey

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!