the digital emperor has no clothes
TRANSCRIPT
July 2016
The digital emperor has no clothesAre business leaders ready for a world of radical transparency?
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New technologies have raised the stakes when it comes to trust. Both data usage and individual/institutional conduct are subject to increased scrutiny, and leaders are faced with three significant transparency challenges.
What does trust mean in a radically transparent digital world?CIOs are struggling to deliver timely, incremental value at a reasonable cost
83% say trust is the cornerstone of the digital economy.
83%
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Digital EthicsToday’s Leadership Challenges1. Leaders are not prepared for radical transparency
60%
60% of employees share information on their rewards, salaries, and opinions of their manager’s performance on sites like Glassdoor
Leaders must “walk the talk” to build collective trust.• Inspire others• Visionary capability• Adaptability
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Digital EthicsToday’s Leadership Challenges2. Leaders should go beyond the boundaries of existing regulations
75%
Nearly 75% of business executives say that regulation can help bring clarity regarding appropriate use of personal data
It’s no longer enough to rely on regulators for clear ethical guidelines.
“Industry [is] moving at the speed of Silicon Valley, [the] FAA can’t be moving at the speed of government.” – Michelle Schwartz, Chief of Staff, Federal Aviation Administration1
But are they putting this belief into practice?Evidence suggests they aren’t.
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Digital EthicsToday’s Leadership Challenges3. Leaders must adopt strong digital ethics to sustain innovation
82%
82% of respondents agree that a lack of security and ethical controls on data could exclude them from participating in digital platforms or ecosystems
Rapid response and willingness to self-regulate help maintain organizational credibility.
In response to feedback following an experiment Facebook conducted assessing the emotional impact of negative news stories on 700,000 users, the company has provided a detailed overview of their research process. This transparency is being hailed as an important step forward for corporate research ethics.2
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How can leaders build trust in a world of radical transparency?
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85% of manufacturing executives expect human-machine-centric environments to be commonplace in their plants by 2020
Use digital to break down barriersLeaders must create a dynamic, adaptive culture to deal with the speed of digital disruption.
85%
But only 22% have actually implemented measures designed to realize the potential of a connected industrial workforce
22%
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Create inside-out transparencyActing is faster than planning in a digital economy.
85%
Use approaches that can generate dynamic standards of conduct from the inside out:• Ethical hackathons• Micro-action crowdsourcing• 30-day challenges
Piloting and iterating ethical policies can help organizations adapt quickly.
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Build “ethical muscle”Embedding and reinforcing ethical behaviors is an ongoing process.
85%
Build a diverse workforce. A mix of ages, genders, ethnicities, and educational backgrounds brings a range of perspectives to ethical decision making.
Perform regular reviews. Keep current during the entire life cycle of an analysis, from data procurement to algorithm selection to training.
Reinforce ethical behaviors. Use tools like online coaching, game-based simulations, and peer communities to continually encourage ethical judgment.
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Sources1. Why Does It Still Take Five Hours to Fly Cross-Country?! Future Tense, May 17, 2015, http://www.slate.com/blogs/future_tense/2016/05/17/why_does_it_still_take_five_hours_to_fly_cross_country_a_future_ tense_event.html2. Recode, June 14 2016, http://www.recode.net/2016/6/14/11923286/facebook-emotional-contagion-controversy-data-research-review-policy-ethics