Coming of Age Digitally: MIT Sloan Management Review Deloitte Digital 2018 Global Study

Copyright © 2017 Deloitte Development LLC. All rights reserved.
12018 MIT Sloan Management Review and Deloitte Digital global research study
Preliminary research, please do not forward
Coming of Age Digitally
MIT Sloan Management Review Deloitte 2018 Global Study

Copyright © 2018 Deloitte Development LLC. All rights reserved. 22018 MIT Sloan Management Review and Deloitte Digital global research study
Shiftingthelenson digital maturity
Digitally maturing companies adapting their strategy, culture and talent to a
digital environment are also changing how they learn and how they lead
1. As top-down
hierarchical corporate
mandates give way to
distributed decision-
making, new ways of
learning and leading
are often required
Role of Learning and Leadership in the Digitally Maturing Organization
3. Legacy or older, established companies, often limited by incremental aspirations and relying on previous
success, can accelerate their digital transformation by adopting new learning and leadership models.
2. These evolving models can
impact not only the
institution, but individuals
as well:
- Individual employees
should be capable of
making decisions in a
fast-paced environment
- Corporate leaders
should learn how to
lead by influence rather
than dictate
L E A R N I N G
T A L E N TS T R A T E G Y
C U L T U R E
L E A D E R S H I P

Seventh Annual Research Report,2018
Undertaken by Deloitte Digital in collaboration with MIT Sloan Management Review (MIT SMR)
S U R V E Y B Y T H E N U M B E R S :
E X E C UT I V E
I N T E R V I E W S
C-suite and other executives,
subject matter specialists
17 Survey in Fall 2017 of business executives,
managers, and analysts from organizations
globally to understand how the digital
enterprise is evolving

Copyright © 2018 Deloitte Development LLC. All rights reserved. 42018 MIT Sloan Management Review and Deloitte Digital global research studyCopyright © 2018 Deloitte Development LLC. All rights reserved. 42018 MIT Sloan Management Review and Deloitte Digital global research study
Play
State
C U R R E N T
O F

1. Respondents were asked to “Imagine an ideal organization utilizing digital technologies and capabilities to improve processes, engage talent across the organization, and drive new and value-
generating business models. How close is your organization to that ideal?” (Answers on a 10 point scale where 10 is most mature) Numbers do not total 100 percent due to rounding.
2. 2017 data sourced from, “Achieving Digital Maturity,” MIT Sloan Management Review and Deloitte University Press, July 2017.
Companiesappear to be coming
ofage in a digital environment
Digital maturity is growing according to survey respondents
Current digital maturity
% all 2018 study survey respondents1
Early
25%
Developing
44%
Maturing
30%
Change from
2017-18 -9% +3% +5%
1 2 3 4 5 6 7 8 9 10
3%
8%
14%
13%
14%
17%
15%
8%
4%
3%

% RespondentsBiggest challenge impacting company’s ability to compete in a digital environment
20%
13%
12%
10%
9%
8%
8%
5%
4%
4%
7%
0% 5% 10% 15% 20% 25%
Experimentation (getting people to take risks)
Ambiguity and constant change
Buying the right technology
Distributed decision-making
Transparency, democratization of information
Fluidity in organizational structures
Multigenerational workforce issues
Transient, rapidly changing team structures
Workforce augmentation
Segmentation of customer bases
Other / don't know
…butorganizational challengespersist
Organizations are struggling to get their employees to take risks
Results are
consistent across
all maturity levels

% RespondentsWhat is the main difference between working in a digital environment vs a traditional one?
…and thebusinessenvironmentisvery different
Doing business in a digital environment is fundamentally different than in the past 20th-century era.
Pace, organizational structure and culture are all significantly different.
1%
10%
13%
16%
18%
19%
23%
0% 5% 10% 15% 20% 25%
Other / no difference
Greater connectivity
Improved access to, use of tools
Improved productivity
Flexible, distributed workplace
Culture and mindset
Pace of business
Respondents were free to enter whatever they wished.
More than 3,300 responses were coded and categorized.
Open Text Question

Organizations and individuals
must evolve how they learn in
a digital environment
Learning:

Individuals areevolvinghowtheylearn
Companies are increasingly pushing decision-making down into the organization as
they digitally mature, necessitating new skills and new ways of learning for employees
Early Developing Maturing
24%
18%
23%
32% 32%
43%
50% 52%
63%
67%
1 2 3 4 5 6 7 8 9 10
Digital Maturity
My organization is increasingly pushing decision-
making authority down in the organization.
% Respondents who agree or strongly agree

How often do you need to
update your skills to work
effectively in a digital
environment?
73%
Continuously:
At least every
six months:
44%

On-the-job training may
be more important
than traditional training
programs.
Most important
opportunity your company
provides you to develop in
a digital environment
(Top 3 responses for digitally
maturing companies)
27% 26% 16%
On-the-job
learning
Training
programs
Supportive work
environments

0%
20%
40%
60%
80%
100%
1 2 3 4 5 6 7 8 9 10
Experimental
My organization encourages new
ideas to be shared and tested at all
levels of the organizations
Supportive
My organization encourages
feedback and iteration to learn
how to work in new ways
Transparent
Leaders in my organization share results
from failed experiments in constructive
ways that increase organizational learning
% Respondents who agree or strongly agree
Digital Maturity
Digitally maturing companies create an environment for learning
Organizationsarealso rethinkinglearning
Companies can’t simply decide to be more experimental, they should also provide the necessary
supportive and transparent environment in which employees and the organization overall can learn

All levels of the organization are called
to lead in a digital environment
Leadership:

26%
30%
44%
19%
22%
59%
19%
20%
61%
0% 10% 20% 30% 40% 50% 60% 70%
Describe the orientation of your management, leaders, and employees toward change within the organization
Mostly facilitate
change or facilitate
more than inhibit
Mostly inhibit
change or inhibit
more than facilitate
% Respondents
Inhibit or
facilitate change
about equally
Leadershipneedsto be pervasive
Hierarchical command and control structures are no longer useful for companies to be
sufficiently agile. Yet, not all employees may be ready to embrace a leadership role.
EmployeesLeadersManagement

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1 2 3 4 5 6 7 8 9 10
% Respondents
My organization is
effectively developing
leaders who have the
capabilities necessary to
lead the organization in
a digital environment.
(Strongly agree / agree)
My organization needs to
find new leaders for the
organization to succeed in
the digital age.
(Strongly agree / agree)
Even maturing companies need new leaders
Digital Maturity
Executive leadershipshould evolve aswell
The majority of companies surveyed note a need for new leadership in a digital environment.
Only the maturing companies though appear to be doing something to address the need.
Leadership Gap

..creatingconditionstoenablesuccess
Survey results suggest leaders need to set the stage for their employees to excel,
creating the conditions that will foster agility, collaboration and innovation
What would you like your leaders to
have more of to navigate digital trends?
(Top 3 responses) composite score
Direction: Providing vision and purpose
Innovation: Creating the conditions
for people to experiment
Execution: Empowering people to think differently
What is the biggest difference between
working in a digital business
environment vs. a traditional one?
(Top 3 responses)
Increased pace of business 23%
Culture, mindset and values 19%
Flexible, distributed workplace structure 18%
#1
#2
#3

Transforming
Organization:‘Coming of age’ in a digital
world likely requires new
ways of learning and leading
T H E L E G A C Y

19%
26% 23%
29% 25%
40%
44% 46%
47%
45%
41%
30% 31%
24%
30%
0%
20%
40%
60%
80%
100%
Digital Maturity by Company Age
% Respondents
Company Age
Only
32%
are pushing decision-
making down into the org
Only
36%of employees
facilitate or mostly facilitate change
Only
29%
are developing their leaders
for a digital environment
Companies >50 years
Legacy organizationsface unique challenges
Competencies of the past create traps that stymie new value creation and hinder digital maturity
<10 years >50 years10-25 years 26-50 years Average

Takeaways
C O N C L U D I N G

Learning Leadership
Organization
Organizations can
learn more by
developing new
knowledge through
practice and
experimentation
Organizations
improve leadership
through influence
and transparency
Individual
On the job learning
enables continuous
individual learning
Individual
leadership needs to
be pervasive across
the organization
Beginning Principles to Consider
• Commit to developing
leaders and employees
for digital.
• Create pockets of fresh
thinking and innovation.
• Experiment and
encourage new ways of
learning.
• Leverage learnings from
success and failures.
Opportunitiesexist to better learn and lead
Legacy companies that recognize the need to adopt new learning and
leadership models can be better positioned to succeed in a digital environment

Read the full report here:
www2.deloitte.com/insights/coming-of-age-digitally
Join the conversation:
#DigitalEvolution
@DeloitteInsight @DeloitteDigital @MITSMR
Want to learn more?

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All rights reserved. Member of Deloitte Touche Tohmatsu Limited
Thank you.
Global Study and study data ©Massachusetts Institute of Technology.

Coming of Age Digitally: MIT Sloan Management Review Deloitte Digital 2018 Global Study

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