digital leadership - human capital growth...digital leaders create value in new ways not just about...
TRANSCRIPT
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Digital Leadership Growing Leaders for the Digital Age
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Presenter
Shreya Sarkar-Barney, Ph.D. CEO & Founder
Human Capital Growth
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Leadership Excellence
Talent Management
Excellence
US India
We help organizations achieve better outcomes through talent using science, analytics, and empathy.
Drive business impact through timely talent actions
Evidence-based solutions for measurable and sustained improvements in leadership
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How is leading in the digital age different than leading in general?
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Agenda
The uniqueness of the digital era and demands on leadership
Leadership competencies of digital leaders
Traits and characteristics of digital leaders
Strategies for developing digital leaders
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Singles Day 11.11
$25.3 billion $6.79
billion
2017
Alibaba’s ecommerce sale for one-day only
US Black Friday & Cyber Monday sale
2016
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The Most Valuable Companies are Digital
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The Challenge
70% of leaders
lack the skills to transform their organization to be digitally enabled.
Digitally mature companies are
26% more
profitable than their industry competitors.
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Source: http://ide.mit.edu/news-blog/blog/digitally-mature-firms-are-26-more-profitable-their-peers
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Insights from you
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Which of the following best describes your company’s digital transformation maturity?
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[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30 35 40
Skeptics: Just beginning the digital journey
Adopters: Starting to invest in digital skills and infrastructure
Collaborators: Driving digital innovation by collaborating internallyand externally
Differentiators: Using advanced innovations such as real-timeanalytics to drive customer obsession
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How proficient are your leaders at transforming the business model to digital?
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[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30 35 40 45
Highly proficient
Somewhat proficient
Beginning to develop proficiency
Lacking proficiency
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Which of these factors poses the biggest challenge in the digitization efforts of your organization?
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[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30 35
Insufficient budget to undertake a digitization
project
Lack of digital skills within the organization
Leaders fail to see the significance of a digital
business model
Legacy infrastructure and antiquated technologies
pose major barriers to transformation
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Topics of greatest interest
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[VALUE]%
[VALUE]%
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0 5 10 15 20 25 30 35 40
Competencies of a digital leader
Developing digital leaders
Screening for digital leadership
The traits and characteristics of digital leaders
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Methodology
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Research Methodology
Archival leadership assessment
Interviews with digital leaders
Industry reports
Scientific research
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Interviews
Amazon
Cisco
Cognizant Technologies
Eaton
General Mills
Honda
HP
Honeywell
Sun Microsystems
Tesla
Tata Sons
Yahoo
Leaders responsible for envisioning and deploying Experience in multiple organizations Traditional brick and mortar companies and technology firms
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Is leading in the digital age different than other times?
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Every Company is a Technology Company
A
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Digital Leaders Create Value in New Ways
Not just about doing the same thing faster, better, cheaper
Taking a traditional business and doing it differently
Successful digital leaders disrupt the marketplace
Value created in one place
taken away from an other
Amazon | Border
Apple | Motorola
Netflix | Blockbuster
WhatsApp | Telecom
Uber | Taxis
Airbnb | Hotels
Paypal | Banks
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Digital Age: Changing Demands on Leaders
Traditional Jobs
Job Demands
Execution excellence
Global mindset
Process improvement
Quality assurance
Service excellence
Digital Era Jobs
Job Demands
Build ecosystems
Innovate
Architect
User experience
Customer centric
Leadership Requirements Plan and manage
Hold others accountable
Delegate
Fill open positions; train and engage employees
Ensure compliance
Leadership Requirements Agility/adaptability
Conflict management
Talent management
Entrepreneurial
Customer centricity
Create a culture of innovation
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Digital Leadership Competencies
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Evidence-based Leadership Competencies
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Studies show that effective leaders excel in four key areas
OPERATIONS
Planning and tracking progress
Managing Performance
Ensuring execution excellence
PEOPLE
Influencing and persuading
Motivating and engaging
Leading and developing teams
CHANGE
Exercising business acumen
Leading innovation
Leading Change
STRATEGY
Envision and leading strategically
Exercising financial acumen
Leading with Customer insight
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Competencies for the Digital Era
Strategic focus for digital leaders
Lean on exponential technologies and tools to create the future
Make good bets on innovation
Risk taking
Not relying on past and current successes
Customer centricity
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STRATEGY
Envision and leading strategically
Exercising financial acumen
Leading with Customer insight
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Strategy
Amazon
1994 investment in online store for books grew to the second largest ecommerce platform in 2017
Making good bets
Nokia
Nokia dominated the mobile-phone industry in 2007 but failed to foresee the transition to touch screen smartphones
Imprisoned by past success
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“It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them.” Steve Jobs
Customer Centricity
Listen to your customers
but don’t expect them to
invent for you
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Competencies for the Digital Era
Operational focus for digital leaders
Lean operations, doing more with less
Navigate organizational structures to achieve speed and agility
Experimentation, fail fast – fail early
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OPERATIONS
Planning and tracking progress
Managing Performance
Ensuring execution excellence
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Operations
Mature Technology Firm
Multiple stage-gates processes delayed product launch, lack of funding prevented building out functionality to make the product competitive.
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Apple
Six weeks before the launch of the first iPhone Steve Jobs demanded that the screen be replaced with scratch-proof glass.
Required an empty-glass factory with hundred of engineers who can experiment and cut millions of screens.
Apple engineers flew to China and a company that successfully delivered on the mandate.
ECOSYSTEM EXPERIMENTATION SPEED & AGILITY
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Competencies for the Digital Era
Change focus for digital leaders
Mandate to innovate
Lead change while still successful
Look beyond functional boundaries for new ideas
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CHANGE
Exercising business acumen
Leading innovation
Leading Change
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Change Leadership
Large Manufacturing Firm
“Change in regulations will likely threaten our highly profitable business 3 to 5 years from now. Difficult to convince the organization to change when things are going great.”
Success blinds the perceived threat
Leading Hardware Technology Firm
When our CEO realized he had underestimated the significance of the cloud business, made a strategic acquisitions even though it required paying a premium.
Recovering from mistakes quickly
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Competencies for the Digital Era
People focus for digital leaders
Influence and create alignment to move in a new direction
Hands on leader
Manage conflict
Get the right skills onboard
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PEOPLE
Influencing and persuading
Motivating and engaging
Leading and developing teams
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People Leadership
Shared Services Team Leader
I could see that the estimates were unrealistic. The leadership team underestimated the risks and the likely delays. It took a number of conversations to get them to see the full picture.
Influencing on a strategic choice
Mid-size Manufacturing Firm
Creative talent don’t want to work 9-5 jobs. Nor do they do well in structured work places. The design team must be run differently.
Hiring, managing, and retaining talent with specialized skills
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Does digital leadership require unique traits and abilities?
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Important Leader Traits and Behaviors
Traits and Attributes of Effective Leaders
Traits
High energy–level
Tolerance for stress
Emotional maturity
Integrity
Conscientiousness
Self-confidence
Extraversion
Agreeableness
Other attributes
Intelligence/complex thinkers
Metacognition
Motivation
Skills: technical, conceptual, interpersonal
Values
Interests
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Traits of Digital Leaders
Curious
Courageous
Creative
Empathy
Resilient
Risk Taker
Ability to gain the trust of others
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“Make it safe to take risks”
TRUST COMPONENTS
Leader wants the best for others
Leader operates with a high level of integrity
Leader has the technical and interpersonal skills needed to do the work
18%
Trust and Risk Taking
Across 132 scientific studies
Trust in leader was positively linked to risk taking
Source: Colquitt, J. A., Scott, B. A., & LePine, J. A. (2007). Trust, Trustworthiness, and Trust Propensity: A Meta-Analytic Test of Their Unique Relationships With Risk Taking and Job Performance. Journal of Applied Psychology, 92(4), 909-927.
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Approaches to developing digital leaders
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Leaders and their Paths to Success
Traditional IBM
3M
Pepsi
GE
Accenture
Goldman Sachs
P&G
Digital Microsoft
Alibaba
Amazon
Tesla
Apple
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College drop-out
No prior leadership experience
Founders
Business idea sparked by
personal experiences
College degree, some
MBAs
Risen through the ranks
Cross functional experience
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Themes Related to Growing Digital Leaders
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Culture Organizational
Structure
Opportunities
& Experiences
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Culture “Guiding principles”
Focus on innovation
Focus on the customer and solving the customer’s problems
Culture of risk taking
Tolerance for failure and learning from mistakes
Embracing and productivity channeling conflict
No tolerance for not invented here syndrome
Not becoming too comfortable with success
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Amazon’s Leadership Principles
1. Customer Obsession
2. Ownership
3. Invent and Simplify
4. Are Right, A Lot
5. Hire and Develop the Best
6. Insist on the Highest Standards
7. Think Big
8. Bias for Action
9. Frugality
10.Learn and Be Curious
11.Earn Trust
12.Dive Deep
13.Have Backbone; Disagree and Commit
14.Deliver Results
Source: https://www.amazon.com/p/feature/p34qgjcv93n37yd
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Organizations Structure “How work happens”
Lean, no hierarchies
Ability to quickly transmit learning
Separation of innovation arm from rest of the organization
Increased M&A activity
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Opportunities & Experiences
Critical job experiences
Taking a career detour to develop specific skills
Have a clear mandate to go digital
Hackathons, think tanks, war rooms
Allow for personal initiative
Participation in conferences to meet thought leaders
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Role of HR
Talent Match Maker
Match talent to unique expand a team’s capabilities
Opportunity Scout
Locate learning opportunities on contemporary topics
Experience Designers
Build culture by organically structuring experiences
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Conclusion
Businesses that embrace digitization are more successful
Requires focus on innovation, risk taking, and learning
Job demands of digital leaders are different
Digital leaders are curious, resilient, and trustworthy
The right culture of crucial to develop digital leaders
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How HCG can help advance your digital transformation?
• Development of digital leadership competency model
• Culture assessment
• Leadership assessments
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New Programs from HCG
Virtual Workshops
Performance Management – Innovating using Design Thinking
Highly interactive and experiential sessions
Learn to use design thinking tools and evidence-based insights to design performance management systems that motivate employees and drives performance.
6 weeks
Starting January 24th, 2018
Email: [email protected]
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Next Webinar
Dr. Liberty Munson
Microsoft
Skill Certifications – Development and Maintenance
January 17th, 2018
8 – 9 am PT
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Thank You! For more information contact Shreya Sarkar-Barney, Ph.D.
www.linkedin.com/company/human-capital-growth
@hcgtm
707.317. 7644
www.Humancapitalgrowth.com
Follow us
@sarkarbarney
https://www.linkedin.com/in/sarkarbarney/