going digital: more than technological capabilities about ......of business are using social media...

SMA 21 SEPTEMBER 2017 PETER ROSSEEL Director MCR, Spin-off KULeuven Visiting Professor University of Leuven

Going Digital: More Than Technological Capabilities About Change and Transformation

@Rosseel_Peter www.mcr-consulting.be

Amazon winkelen – geen kassa’s meer

gewoon buitenlopen een beting gebeurt

automatsich. Laatste zijn in het nieuws item

“In België lopen nog geen experimenten

hiermee“.

MCR is a spin-off company of the University of Leuven (Belgium)

Model for strategy implementation, business transformation, leadership and learning

Working across organisations and country cultures: 300 organisations worldwide

Profit sector, semi government, government

Just naming a few organisations we work with

• British American Tobacco ( in 65 countries)

• Mozambique Leaf Tobacco Company /Universal Leaf

• University of the Free State , South Africa

• Pick’nPay, South Africa

• William Grant & Sons, UK (Glenfiddich and Hendrick’s Gin)

• Solar - Coca Cola, Brazil

• JCC, Brazil (building and managing shopping malls)

• ING Nationale Nederlanden Poland and The Netherlands

• Izico, The Netherlands (inventors of the Bicky Burger)

• Boehringer-Ingelheim (Pharma) - Taiwan

• General Mills UK (Pastries)

• EMC2 ( (ICT hardware & software)

• Lion Brewery – Sri Lanka

• Sodexo Europe

• Mead Johnson Nutrition Europe

• Ipsen Pharma - France

• COMPASS GROUP

• Dataflow (Ausy Belux)

• STACI Belgium

• KBC Bank

• ING Bank

• BNP Parisbas Fortis

• AEXIS

• Umicor

• Promoplan

• City of Geel, City of Beringen and City of Turnhout

• Home care center Woonzorgnet Dijleland

• Fund for professional diseases (FOD)

• Fund for accidents at work (FOD)

• Psychiatric centre O.L.V. Brugge

• Province of Vlaams-Brabant, West-Vlaanderen &Oost-Vlaanderen

• University Hospitals of Ghent and Brussels

• University College Leuven Limburg (UCLL)

INTERNATIONAL

BELGIUM

Black

White

TO HELP YOU REMEMBER

Adapted from The Jacksons – Blame it on the Boogie

TO HELP YOU REMEMBER

Adapted from The Jacksons – Blame it on the Boogie

Don’t blame it on your strategy Don’t blame it on your processes Don’t blame it on your culture Blame it on your leadership

The world we live in The 4th industrial revolution

(Industry 4.0)

Rechterkant Directly linked

to Self managed

teams. Both give SMT

Agility – innovation – learning

The is about GREAT learning opportunities inside but also OUTSIDE ING Rational and

relational

Digitalization

Even focus op linkerkant dan

later terugkomen op

de hele belangrijk

rechterkant

Agility – innovation – learning

In general: "In an efficient way making use of the technology available to increase customer experience." In organisations - rational: "In an efficient way making use of the technology available to transform your organisation in such a way that it increases customer experience.“ In organisations - relational: "In an efficient way making use of the technology available to transform your organisation in such a way that it increases employee engagement and customer experience."

Rational

Relational

S SOCIAL

M MOBILE

A ANALYTICS

C CLOUD

72% of enterprises

cited improved

productivity as a driving

factor in adoption of

smart mobile devices.

75% of executives

at large companies

said they are working to

increase their company’s

use of

analytics.

92% of businesses

are completely

satisfied with their cloud

based services and planning to increase

their usage in 2016.

The (R)evolution of technology

76% of business are

using social media

for business

objectives and to increase

ROI this year.

Also C from conversion

smAc= Analytics = big data

but also of Action Not so much big data but

the right data

From insights to action

Biedt heel wat

opportuniteiten

Niet panikeren als u dit niet doet maar ook niet in

je zetel blijven zitten.

Will be called guilty

negligence

The (R)evolution of technology

Also C from conversion

smAc= Analytics = big data

but also of Action Not so much big data but

the right data

From insights to action

Biedt heel wat

opportuniteiten

Niet panikeren als u dit niet doet maar ook niet in

je zetel blijven zitten.

Will be called guilty

negligence

Opportunities FANG technologies

The (R)evolution of technology

Introduce digital readiness here:

assessmen tool are available – is like

runningthe marathn while never doing

sports

The (R)evolution of technology

Introduce digital readiness here:

assessmen tool are available – is like

runningthe marathn while never doing

sports

New Technologies and Digital Transformation

Right (Big) data

Information

Insights

Action

SMAC/FANG Technologies

(Social, Mobile, Analytics, Cloud)

smAc= Analytics = big

data but also of Action

Not so much big data but the right data

From insights to

action

Digital is all around us. We are comfortable wiht this.

SMAC technologies will change organsiations.

70% doe not get it right.

Why not?

Where to store all this

big data?

. Every day, new and emerging technologies generate 2.5

Quintillion bytes of data, resulting in almost half of the world’s data

being created in the last ten months. Many organisations recognise this as a growing opportunity. Yet, evidence

suggests that 95% of data remains concealed on servers.

(An insight is defined as the discovery of a fundamental consumer need that companies can use to create value for the customer and the business.)

Competitive landscape

Digitalization

Customer Behaviour changing [Employee behaviour]

Common theme

Digitalization is at the heart. It drives the

competitive landscape with new type of

competitors (Paypall, Fintechs, Bitcoin,

Blockchain…)

The challenges for organisations today

Industry 4.0 Digitalization

On change and transformation

A clear and shared burning platform as the basis for transformation.

McKinsey , 201, 3 http://www.slideshare.net/aipmm/70-26633757

70% of change and transformation efforst fail.

Why is this and and how to tackle the issues?

A butterfly is a transformation not a better caterpillar

On the difference between transformation and change…

12-13 February 2015

Example From A Global FMCG Player in the drinks industry

End-to-end innovation

gate process

Change vs transformation

12-13 February 2015

Example From A Global FMCG Player in the drinks industry

Marketing

Supply Chain

Commercial

End-to-end innovation

gate process

Change vs transformation

New Technologies Organisational Culture

People Agile: flexible, collaborative, co-creation, engagement, network, autonomy, power to decide and

act, instant feedback

CHANGE

TRANSFORMATION

Company that uses digital Digital company

• SMAC Technologies • Intelligent Process Automation (IPA)

Agile companies: • Decentralised decision making • Fluid teaming • Loose hierarchies • Rapid prototyping • Instant feedback (“crowdsourced in real time”)

What is Agile/Agility ?

Strong backbone

High flexibility

Being disrupted Disrupt

New Technologies and Digital Transformation

Right (Big) data

Information

Insights

SMAC Technologies

30-40% 10-15%

Witte kassa

New Technologies and Digital Transformation

INSI

GH

TS &

IMPA

CT

VIS

ION

& S

TRAT

EGY

PEO

PLE

(K

NO

WLE

DG

E +

SKIL

LS)

LEA

DER

SHIP

STR

UC

TUR

E

PR

OC

ESSE

S

CU

LTU

RE

DIGITAL TRANSFORMATION

DIGITAL TECHNOLOGIES

CEO/BOARD BUY-IN

Components of your house

• Infrastructure •Data/Information • Security •Applications

We deliver happiness

Point of view of the customer vs expertise

Strategy, Structure, Process and system And thus SMT’s

Looking at where the world is going on 3 levels

Macro level

Meso level

Micro level

Society at large

Individual level

Organisational level

Looking at where the world is going on 3 levels

Macro level

Meso level

Micro level

Society at large

Individual level

Organisational level

OLD POWER

NEW POWER MODELS

Old and new power models

A dual system

Old vs new power models

It is in our genes

“New powermodels, at their best, reinforce the human

instinct to cooperate (rather than compete) by

rewarding those who share their own ideas, spread

those of others, or build on existing ideas to make them

better.” (Heimans&Timms, 2014)

And that is exactly what SMT aim for

Macro level

Meso level

Micro level

Society at large

Individual level

Organisational level

Looking at where the world is going on 3 levels

Main objective of any organisation…

Creating commitment for results

RELATIONAL COMPONENT

RATIONAL COMPONENT

Seniotr managers letteing goog the how

Divorce of Lucas

What really matters

VISION

LEADERSHIP CULTURE

VISION

LEADERSHIP

CULTURE

You can learn. Link with SMT

Most change and transformation programs fail… and for predictable reasons

70% 30%

REASONS FOR FAILURE

Other obstacles

Inadequate resources or budget

Management behavior does not support change

Employee resistance to change

14%

14%

33%

39%

RATIONAL

RELATIONAL

McKinsey , 2013, http://www.slideshare.net/aipmm/70-26633757

% of efforts failing to achieve target impact

Agile s more about behavior than about technical and SMT

may stilumate resisance but alos

prevent it.

THEORY OF CHANGE

THEORY OF EXECUTION

What drives successful transformation?

VISION CULTURE LEADERSHIP

THEORY OF BUSINESS

Slide MLTC ING werkt op 3 niveaus in my

expereince more one level

one and not the 2 others; Do not assume ING doe

so do it.

THEORY OF CHANGE

THEORY OF EXECUTION

What drives successful transformation?

VISION CULTURE LEADERSHIP

THEORY OF BUSINESS

CREATING COMMITMENT FOR RESULTS

FROM STRATEGY TO EXECUTION

Execution

Organisation strategy

CREATING COMMITMENT FOR RESULTS

FROM STRATEGY TO EXECUTION

Execution

Strategic Leadership Agenda

(SLA) C

Personal Leadership Agenda

Campaign Plan

Organisation strategy Rationale – duidelijke richting – visie en industrie

Relationele :Creating an engagement culture

Ery few organsiations have an engagemet cuture –

without this engagement culture employee

engamement intiatives fall on dorre grond (arid

ground)

95% of all organisations do not have a

culture of engagement

This i s a way of doing it, but how do we sustain it?

THAT IS WHAT YOU HAVE DONE

Digitalization, innovation, Customer experience: people and organisational structure

SMTs

“The extend to which people have control over the situation,

determines their well-being and hence their willingness and

ability to innovate and change.”

How to structure our organisations for engagement?

(Digital) innovation, people and

organisational structure

“ Traditionally organised companies…

… poorly handle the technological discontinuities

inherent in a faster moving world”.

(C. Christensen, Harvard, 2008)

Hierarchical operating model Network operating model

(Digital) innovation, people and

organisational structure

Intermediate phase: A DUAL MODEL

Traditional org = analogue or digital laggard or rog

that uses digital

Chief Digital Officer (CDO)/ Chief Transformation Officer (CTO)

Strategy & Planning

Digital , IT, Data & insights

team

Innovation & Customer

Experience Transformation

Program Management

Transformation Team – Hierarchical Structure

Transformation Team – Network Structure

Digital , IT, Data & Insights

team

Transfor-mation

Innovation &

Customer Experience

Program-me

Manage-ment

Strategy &

Planning

Chief Digital Officer/

Chief Transforma-tion Officer

Traditional org = analogue or digital laggard or rog

that uses digital

THEORY OF CHANGE

THEORY OF EXECUTION

What drives successful transformation?

VISION CULTURE LEADERSHIP

THEORY OF BUSINESS

In a Nutshell : Leading Change and Transformation

1. A systematic and methodological way of

working towards intentional change with a complex character, (…)

2. (…) that puts demands on the consistency and cohesion of the interventions

3. With an appreciative perspective of the people involved and their interests.

Theory of business

Theory of change

Theory of execution

Your organisation’s

Looking at where the world is going on 3 levels

Macro level

Meso level

Micro level

Society at large

Individual level

Organisational level

On leadership level

Most change and transformation programs fail… and for predictable reasons

70% 30%

REASONS FOR FAILURE

Other obstacles

Inadequate resources or budget

Management behavior does not support change

Employee resistance to change

14%

14%

33%

39%

RATIONAL

RELATIONAL

McKinsey , 2013, http://www.slideshare.net/aipmm/70-26633757

% of efforts failing to achieve target impact

LEADERSHIP MANAGING CHANGE OR TRANSFORMATION

Building Blocks of Digital Transformation

Schools: • education industry • Do not be afraid of

‘marketisation’ The Organisation for

Economic Co-operation and Development (OECD)

Digital Technology

Connectivity

Big Right Data

New Business models

Agile Organisation

Customer, employee &

partner co-creation

Customer Experience

Culture of engagement

Preferred Future

Strong Leadership

© Copyright MCR and Peter Rosseel

Sure!

And (digital) technology?

Sure!

And (digital) technology?

But don’t forget

Digital technology drives change

but Transformation is driven by people

Peter Rosseel www.mcr-consulting.be

Thank you for your attention

@Rosseel_Peter