Leadership for the Digital Age: Framework and Capabilities, Growing Leaders who Thrive in the Digital Age
http://www.humancapitalgrowth.com/growing-leaders-who-thrive-in-the-digital-age.html
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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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Which of the following best describes your company’s digital
transformation maturity?
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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 internally
and externally
Differentiators: Using advanced innovations such as real-time
analytics to drive customer obsession
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How proficient are your leaders at transforming the business model
to digital?
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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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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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Competencies of a digital leader
Developing digital leaders
Screening for digital leadership
The traits and characteristics of digital leaders
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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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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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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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“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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Leaders and their Paths to Success
Traditional
IBM
3M
Pepsi
GE
Accenture
Goldman Sachs
P&G
Digital
Microsoft
Facebook
Google
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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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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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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