are you ready for transformation? - itsm solutions, llc · 2019-09-23 · on business issues such...

© 2018. The Institute for Digital Transformation. ALL RIGHTS RESERVED. 1

Are you READY for Transformation?

What is Digital Transformation?

It is NOT: • Software or Hardware• Systems or Processes

They are just tools.


Digital Transformation is using those technology tools to fundamental change the way you do business.

The Digital Era Presents Different Challenges

Close the Skills Gap

Reshape the Organization

Create a Culture of Speed & Agility

Create Digital Leaders

Everywhere

From Industrial Era Skills: To Digital Era Skills:

• Managing their team• Creating a 5-year strategic plan• Hiring the best players for their team• Aligning to and supporting corporate value• Specialized domains of expertise

• Leading an inter-organizational team• Adapting a continuously adjusting strategy• Rapidly assembling and disbanding teams• Leveraging technology to create value• Digital embedded into every role

Industrial Era Leadership Digital Era Leadership

Digital Enterprises look very different from today’s typical organizations.

Unique Challenges of the Digital Era

The digital era will place demands on enterprises that will run counter to most of the well understood operating paradigms of the past.

Most industries are seeing all of these things happening right now.


• Shortened Planning Cycles –Multi-year planning cycles are being replaced with dynamic strategies.

• Shortened Products Development – Product cycles, both development and marketability, have shorten dramatically.

• Falling Entry Barriers – Competitors are emerging at a more rapid rate and from unforeseen quarters as barriers to entry fall.

Digital Era Strategies

Strategy in the digital age has become an increasinglyinteractive process. The fluidity of digital business modelsimpact upon the rapidity in which decisions are made and processed.

• Vision vs. Strategy – Vision statements provide a long term, forward looking, aspiration. It is unrealistic to think that a strategic plan written 3 years ago will have meaningful recommendations for today.

• Nascent Trends – Emerging digital technologies which haven't become mainstream are often overlooked.

• Small Clients – Digital technology enable any competitor to prey on the smaller and underserved segments of a company’s client base

• 90- Action Plans – 90 days plans provide a greater sense of urgency and an immediate translation from plan to execution.


The Need for a Digital Culture


Organizational Culture Defined

“A pattern of basic assumptions, invented, discovered, or developed by a given group, as it learns to cope with its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore is to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.”

- Edgar Schein (1990)


Why Digital Culture is Important

• Culture is the most significant self-reported barrier to digital effectiveness

• Cultural obstacles correlate clearly with negative economic performance

• Risk aversion, customer focus, and silos—are a valuable road map for leaders seeking to persevere in reshaping their organization’s culture.


Modern enterprise organizations are vestiges of the Industrial Era.

Digital Culture’s Impact on Your Bottom Line

That same McKinsey study "shows that cultural obstacles correlate clearly with negative economic performance". The study goes on to say "the experiences of leading players such as BBVA, GE, and Nordstrom, which have shown what it looks like when companies support their digital strategies and investments with deliberate efforts to make their cultures more responsive to customers, more willing to take risks, and better connected across functions."


If you want to improve your bottom-line results, "Executives must be proactive in shaping and measuring culture, approaching it with the same rigor and discipline with which they tackle operational transformations.".

The Practice of Digital Transformation


Digital Transformation Leading Practices

McKinsey research identified factors that might improve the success of a transformation.

• Have the right, digital-savvy leaders – Nearly 70 percent of all respondents say their organizations’ top teams changed during the transformation—most commonly when new leaders familiar with digital technologies joined the management team.

• Build capabilities for the workforce – The survey results confirm that developing talent and skills throughout the organization—a fundamental action for traditional transformations—is one of the most important factors for success in a digital change effort.

• Empower people to work in new ways – Digital transformations require cultural and behavioral changes such as calculated risk taking, increased collaboration, and customer centricity, as previous research has shown.

• Give day-to-day tools a digital upgrade – The first key is adopting digital tools to make information more accessible across the organization, which more than doubles the likelihood of a successful transformation.

• Communicate frequently via traditional and digital methods – One key to success is communicating a change story, which helps employees understand where the organization is headed, why it is changing, and why the changes are important.


Individual Skills Support a Digital Culture

• Leadership Behavior - You cannot afford to wait around for orders. You must learn to see yourself as a leader, build ad-hoc coalitions to do what must be done to drive innovation and serve your customers. Leadership is the ultimate, irreplaceable skill.

• Critical Thinking and Analysis - Frameworks and best practices are a great place to start. You need to apply technology in a way that will create strategic differentiation and competitive advantage. That only comes by thinking critically about everything. Don’t accept the status quo. Challenge everything.

• Financial Management - If you cannot relate a technology upgrade or a feature enhancement to increased shareholder value, improved return on capital, enhanced market share or some other business/financial metric, you lose. You must speak the language of business.

• Marketing and Communications - The idea that “our work should speak for itself” is as antiquated. You need to learn to communicate in terms of business value and market that value at every turn. If you don’t, you can be sure that there is some outside provider who will.

• Innovation and Collaboration - In the Digital Era, technology innovation is almost exclusively going to occur outside the walls of your company. But that leaves a tremendous – and more powerful – opportunity for you: to drive business innovation through technology . You need to be in a position to see the big picture of how technology can be applied in a collaborative fashion to create game-changing business innovations.


Digital Transformation Guiding Principles

The Institute has developed Five “Mantras” of Digital Transformation to help organizations continually transform themselves and always be ready.

• Principle 1 - Treat transformation as a journeyDigital transformation is an ongoing process

• Principle 2 - Transformation is about culture, not technologyShortcomings in organizational culture are one of the main barriers to success

• Principle 3 - Let business outcomes guide your journeyOrganizations must identify a clear business objective and start small

• Principle 4 - Business as usual no longer existsYou need the right model, technology, partners, and mindset

• Principle 5 - Create a culture of continuous changeContinuous improvement is even more vital today



Transformation is not something you do

It’s an attitude and an approach. We must all create transformational leaders and transformational cultures within our organizations if we are to continue to thrive as the world rapidly changes and evolves. This is because we believe that we have entered an exciting – and sometimes scary – new era in which the industrial era is giving way to the “Digital Era”. The rules that have governed how we live and operate for the past 150 years are changing in front of us. And no one really knows what will happen next. We therefore need to create organizations and leaders who are comfortable operating with uncertainty and who can rapidly evolve their operating models to adapt to changing markets and directions. That is a transformational culture. That is transformational leadership.

Digital Transformation is Cultural, Not Technological

Introducing:Digital Enterprise Readiness Framework


Your Organization MUST be Prepared for Constant Change


What do the world’s most elite military units and championship sport teams have in common?

Continual ReadinessThey are always training, preparing, “getting ready” for the next mission or the next game. They know that the better prepared they are, the more likely the mission will be successful, and the game won.

Introducing:Digital Enterprise Readiness Framework

The Institute has developed an analytical Model that will analytically measure the “Readiness” of an organization’s ability to change. We refer to this model as the Four Dimensions of Digital Readiness.

The model was developed using data gathered over the past decade of working with companies undergoing change and collected as part of multiple research projects. Our Chief Scientist, Dr. Frank Granito, combined this data with other academic studies to develop our current model.


Operational SustainabilityDoes your organization have a stable base to operate from?

Organizational AgilityHow quickly can your organization react to change?

Strategic AgilityHow well does your organization anticipate change?

Disruptive CultureHow receptive is your organization/people to implementing change?

Attributes of Each Dimension


Operational Sustainability

• Strategic & Functional Clarity

• Inter-Functional Integration

• Organizational Discipline

• Organizational Governance

• Metrics-Driven Management

• Operational Flexibility

• Team Dynamics

• Evidence-based Decision-making

• Continual Operational Reassessment Bias

• Critical Thinking and Analysis

Organizational Agility

• Organizational Competency

• Organizational Continuity

• Coordination and Communication

• Organizational Tension/Anxiety

• Teamwork Mindset

• Flexible Structures

• Technology

• Management Innovation

• Organizational Innovation

• Organizational Leadership

Strategic Agility

• Organizational Commitment

• Strategic Sensitivity

• Leadership Unity

• Resource Fluidity

• Selecting Strategic Targets

• Taking Action

• Knowledge of Competitors

• Agile Values

• Collaborative Digital Storytelling

• Customer Orientation

Disruptive Culture

Proof Points

There is case study evidence of the success of companies for each of thedimensions:

• Many business sectors including Banking, Manufacturing, andAutomotive recommend “implementation of the right set of organizationalcapabilities are critical requirements” for Digital Transformation. Readinessis having the right amount of foundational organizational processes and capabilities

• British Telecom and companies in the European Union learned to place “the emphasis on business issues such as how will my business processes change.” Readiness is having the Organizational Agility to rapidly alter the business in response to a changing digital environment

• NHS England found that having a “user council set up to involve external stakeholders in activity” was a key success factor to Digital Transformation. Readiness is the Strategic Agility that comes from knowing and involving your customers

• A McKinsey study of Digital culture shows companies like GE and Nordstrom realized “In our experience, executives who wait for organizational cultures to change organically will move too slowly as digital penetration grows.” Readiness is a Disruptive culture whose Senior Leaders are advocates and role models.


What Makes The Institute’s Framework Unique?

Other Assessments focus on a specific aspect of the change:• Implementing Digital Technologies such as Public Cloud, Big Data, or Predictive Analysis

• Implementing Digital Practices, such as Agile, Lean, or DevOps

• Improving Operational performance by using Automation or AI

• Changing Organizational Structure by adding a Chief Digital Officer

Our focus is the Readiness of Your Organization to handle the stress of the transition.


Analyticalvs. Subjective

Findings and recommendations are produced by a validated analytical model. Results from other assessments vary based on the experience and expertise of the assessment team.

Inclusivevs. Selective

Information is gathered from the entire organization, not just a selective sample chosen by Management or the assessment team.

Vendor Agnosticvs. Self-Serving

Recommendations are not aligned with a specific vendor solution. The Institute’s Framework integrates seamlessly with other technology, process frameworks, methodologies, or approaches that you are already using.

Get You Organization Ready to TRANSFORM!

Gallup, McKinsey and Harvard Business Review estimates that over 70% of transformation initiatives fail while Forbes and IBM reports that the number is as high as 84%.

The 2016 McKinsey survey concluded the failures were caused by cultural issues. And also presented the negative impact on economic results.

Get your organization READY to Transform!

Get your organization the training they desperately need!


are you ready for transformation? - itsm solutions, llc · 2019-09-23 · on business issues such...

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