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How does the organisation need to develop on the path to the successful digital workplace

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Keynote presentation for IOM Summit 2014 in Koln. About how the organisation needs to develop to become a successful Digital Workplace. I'll talk about those, but really I wanted to get across 3 things:

1. I want to make you step back and look at things we already know that are connected to the digital workplace and digital disruption and look at them with fresh eyes, and think about them differently.
2. I want to highlight a key issue around the organisation structure topic that a lot of the consultants and practitioners and book writers are talking about, but give you our viewpoint - which is different
3. And then leave you with some recommendations and a practical approach that you can apply to help change your business for the better!

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How does the organisation need to develop on the path to the successful digital workplace

  1. 1. How does the organisation need to develop on the path to the successful Digital Workplace? David Terrar | Founder & CXO – Agile Elephant | @DT on Twitter IOM SUMMIT 2014 | 25 September Digital Workplace (R)Evolution
  2. 2. Agenda • What is the Digital Workplace anyway? • Business is changing - the Digital Enterprise Wave • Why do we have to talk about organisational change? • What are the concepts of the Future Organisation 2.0? • What are the key actions to establishing the Digital Workplace? • Who should be involved? • What are the key recommendations?
  3. 3. So what is the digital workplace anyway?
  4. 4. You business model is under threat!
  5. 5. The Digital Enterprise Wave ride it or go under!
  6. 6. Infrastructure Connectivity Internet WiFi 3G & 4G Human Factors Entrepreneurship Crowdsourcing Millennials Economic Outsourcing Offshoring Low cost
  7. 7. The Digital Enterprise Wave
  8. 8. The Big Shift Cloud Social Mobile
  9. 9. The Digital Enterprise Wave
  10. 10. Emerging Technologies Big Data & Analytics Internet of Things 3D Printing Artificial Intelligence
  11. 11. The Digital Enterprise Wave
  12. 12. “Business as Usual” Thinking Point Social Media Solutions Siloed Communities Lack of Integration Legacy Systems of Record Business as Usual
  13. 13. The Digital Enterprise Wave
  14. 14. We need “Digital” Thinking Digital and Social inside and out Business Model Innovation Systems of Engagement Design Thinking
  15. 15. McKinsey 7 “S” Model Strategy Skills Structure “Shared Values” Staff Hard Systems Systems Style Soft Systems  Integrates “hard” and “soft” business systems in a structured way  “technology neutral”  Includes employee engagement  Proven approach  Especially useful for lessons in managing major change
  16. 16. The Digital Enterprise Wave
  17. 17. Why organisational change? • The evidence is mounting – to make digital truly work change is necessary • The key is change of Mind-set and Culture • I worry about some current thinking on organisational structure…. • We need “Evolution not Revolution!”
  18. 18. A Team-Based, Flat Lattice Organization • Fairness to each other and everyone with whom we come in contact • Freedom to encourage, help, and allow other associates to grow in knowledge, skill, and scope of responsibility • The ability to make one's own commitments and keep them • Consultation with other associates before undertaking actions that could impact the reputation of the company
  19. 19. checks and balances to ensure accountability, transparency and honesty
  20. 20. Hierarchy - Wirearchy taking responsibility individually and collectively rather than relying on traditional hierarchical status http://wirearchy.com/what-is-wirearchy/
  21. 21. Organisational Change • It’s not about changing the org chart – many structures will work • It is about mind-set and values: – accountability, transparency and honesty – checks and balances – fairness – freedom to encourage, help, collaborate – taking responsibility individually and collectively
  22. 22. Total Value Created Bottom line = value creation Increase Revenue Average Sale £ Sales Volume Reduce Costs Churn Operating Cost • Deeper understanding of customer needs • Conversation with customers increases attachment to business • Increased marketing penetration at lower cost • Faster lead generation & customer onboarding • Faster understanding of product and customer problems • Pro-active customer retention • Fast information movement and higher levels of collaboration drives efficiency • Higher employee engagement drives effectiveness Close link Digital Business Value Creation Depending on the business, the impact of digital transformation will vary – but will drive significant value
  23. 23. Establishing the Digital Workplace? Strategy Skills Structure “Shared Values” Staff Hard Systems Systems Style Soft Systems  Integrates “hard” and “soft” business systems in a structured way  “technology neutral”  Includes employee engagement  Proven approach  Especially useful for lessons in managing major change
  24. 24. Strategy © Simon Sinek - https://www.startwithwhy.com/
  25. 25. Structure • Information flow must be fast and pervasive • You must streamline decision making • Faster time to market • New teams, cross functional teams
  26. 26. • One of the largest bookmakers in the UK • 80 year old company undergoing a major culture shift • Adopting a lean start up model • Product teams include people who used to be in marketing, IT, product management • 4-6 week new product cycles • Touch the customer within weeks – used to be 2 years
  27. 27. Systems • Fast reaction time to important information • Old processes & practices must be replaced (and that’s not easy) • New technology, but easy to deploy and use • Digital and social at the heart of the business process and creating value
  28. 28. Staff • Must be on board • Supported by management at all levels Gallup State of the Global Workplace:  Worldwide, actively disengaged employees outnumber engaged employees by nearly 2-1
  29. 29. Skills • Understand the new policies • Know what’s expected of them • Know how to operate the new systems
  30. 30. Style Digital Taylorism Open, Good for All
  31. 31. Shared Values • Go back and find your “why” • Ask “what’s in it for me?” at all levels • Focus on benefits for all
  32. 32. Who should be involved? • Top Management, the C-Suite - essential • Engaged employees – essential • IT/the CIO – connect to the legacy • Learning/proving by doing - essential • Good outcomes for all - essential
  33. 33. with Winners Of The 2014 Groundswell Awards (Business-To-Employee Division) Atos "Journey to Collaboration" / Zero emailTM program • 76,000 employees now collaborating • Sharing knowledge and expertise through 7,500 purpose built communities • 30% active users posting 10 collaborative notes per week/per user • Better knowledge sharing leads to faster response times and more wins • Reducing response time in some cases from 2 days to 45 minutes • Operational efficiency gains by reducing internal e-mail overload by an average of 60% • Saving an average of 2 hours a day per employee
  34. 34. Key recommendations?
  35. 35. Key recommendations? • Revisit your business model • Revisit your value proposition • Pilot, but in an area where there is measurable business benefit • Learn and adapt • Roll out, bringing everyone with you • Ensure everyone shares the benefits
  36. 36. References http://www.zdnet.com/examining-the-digital-workplace-in-2014-7000026781/ http://www.digital-workplace-trends.com/your-digital-workplace-scorecard/ http://postshift.com/author/lee/ http://www.technologytransformation.com/High%20Perfomance%20Projects.htm http://en.wikipedia.org/wiki/Valve_Corporation#mediaviewer/File:Valve_logo.svg http://thenextweb.com/shareables/2012/04/21/valves-new-employee-handbook-is-as-insp iring-as-the-games-it-makes/ http://www.gore.com/en_xx/aboutus/culture/ http://www.johnlewispartnership.co.uk/about/our-constitution.html http://wirearchy.com/what-is-wirearchy/ http://socialbusinessjourney.com/2014/02/25/social-business-cookbook-soft-version-for-all -culture-hackers/ https://www.startwithwhy.com/ http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx http://www.businessmodelgeneration.com/canvas/bmc https://strategyzer.com/value-proposition-design Not for reading – just for reference
  37. 37. David Terrar Agile Elephant | techUK | EuroCloud UK p: +44 (0)1727 866309 m: +44 (0)7715 159423 e: david@theagileelephant.com w: www.theagileelephant.com skype: david_terrar twitter: http://twittter.com/DT @DT linkedin: http://www.linkedin.com/in/davidterrar blog: http://biztwozero.com