HBR Webinar: On Digital's Frontline - How Company Culture can Make or Break Digital Transformation
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Slides of my HBR webinar from February 23rd, 2016: https://hbr.org/webinar/2016/03/on-digitals-frontline-how-company-culture-can-make-or-break-digital-transformation-2 For most companies in most industries, digital transformation is the key to future growth. This digital transformation will have massive implications for business models and for the world of work. Organizations must confront questions such as: What makes the transition easier for some companies than others? How do companies and their leaders develop strategies that can retain, engage, and get the best performance from high performers in this fast-changing environment? There are massive talent implications in the shift to this new world. Strategies for hiring and retaining “digital natives” will change as companies compete to hire the best and keep them engaged. Organizations will also have to think through physical and psychological implications of this always-connected world: While technology can improve productivity, it can increase fatigue and burnout. How will organizations deal with the need for “digital detox?” In a live, interactive Harvard Business Review webinar, I described how the digital transformation is affecting talent strategies, and will share evolving best practices for attracting and retaining talent.
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HBR Webinar: On Digital's Frontline - How Company Culture can Make or Break Digital Transformation
- 1. On Digital’s Frontline How Company Culture can Make or Break Digital Transformation Prof. Dr. Peter Vogel / www.petervogel.org / info@petervogel.org / @pevogel © Monique Mardus
- 3. Global use of digital technologies Digital Transformation Insights 3© Peter VogelFebruary 23rd, 2016 Source: wearesocial (01/16)
- 4. Global monthly mobile data usage (in Exabytes = billion billion bytes) Digital Transformation Insights 4© Peter VogelFebruary 23rd, 2016 Data: Cisco 0 5 10 15 20 25 30 35 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGR 53%
- 5. DIGITAL TRANSFORMATION AFFECTS OUR LIVES
- 6. The way we learn and teach…
- 7. The way we interact as a family…
- 8. 8Digital Transformation of the WorkplaceFebruary 23rd, 2016 The way our children spend their leisure time…
- 9. 9Digital Transformation of the WorkplaceFebruary 23rd, 2016 Huffington Post: “Our kids are getting less time outside than chickens or prisoners” Telegraph: ¼ of UK children spend less than 30 minutes outside playing… PER WEEK!!!
- 10. DIGITAL TRANSFORMATION AFFECTS THE WORKPLACE
- 11. The way desks look like…
- 12. 12Digital Transformation of the WorkplaceFebruary 23rd, 2016
- 13. The way professional training works…
- 14. How Digital Transformation Impacts World of Work 14Digital Transformation of the WorkplaceFebruary 23rd, 2016
- 15. The way call centers work…
- 16. 16Digital Transformation of the WorkplaceFebruary 23rd, 2016
- 17. 17Digital Transformation of the WorkplaceFebruary 23rd, 2016 The way knowledge diffusion works…
- 18. 18Digital Transformation of the WorkplaceFebruary 23rd, 2016
- 19. HERE COME THE DIGITAL NATIVES…
- 20. 20© Peter VogelFebruary 23rd, 2016
- 21. 21© Peter VogelFebruary 23rd, 2016 Data: Cisco Connected World Technology Report 2012
- 22. Digital Natives 22© Peter VogelFebruary 23rd, 2016 Are now entering the workforce! Source: Pew Research Center Digital Natives Baby Boomers Wireless Internet 62% 35% Texted in the past day 80% 35% Median # daily texts 20 5 Have a social network profile 75% 30% Posted to profile in past 24h 32% 9% Active multi-tasking 87% 67%
- 23. Digital Natives 23© Peter VogelFebruary 23rd, 2016 Source: UCLA Internet naive Internet savvy Reading book Internet search Technology changes our brain structure…
- 24. 24© Peter VogelFebruary 23rd, 2016 Data: Cisco Connected World Technology Report 2012
- 25. WHY DOES DIGITAL TRANSFORMATION MATTER TO ORGANIZATIONS?
- 26. 26© Peter VogelFebruary 23rd, 2016
- 27. 27© Peter VogelFebruary 23rd, 2016 Benefits of using mobile devices to connect employees and work Data: HBR, 2015 How Digital Transformation Impacts World of Work
- 28. 28© Peter VogelFebruary 23rd, 2016 Executives’ perspectives on which technologies are, or will be… Source: HBR, 2015 How Digital Transformation Impacts World of Work
- 29. 29© Peter VogelFebruary 23rd, 2016 “Digerati” firms outperform their peers in terms of… Source: Capgemini Report 2014 Revenue Generation Profitability Market Valuation DigeratiFashionistas ConservativesBeginners Effects of Digital Transformation on Lives & Work
- 30. The World of Work is Changing Fast… 30 Source: Dachis Group 2013 2012 2020 Lifespan of S&P 500 company 15 years 9 years Portion of Digital Natives in Workforce 35% 75% Speed at which data in the world doubles 2 years 3 months © Peter VogelFebruary 23rd, 2016
- 31. Information overload Constant distraction Digital Dementia Social media anxiety 31© Peter VogelFebruary 23rd, 2016 Source: naldzgraphics.net Digital Technology Affects Us & Our Employees
- 32. 32© Peter VogelFebruary 23rd, 2016
- 33. 33© Peter VogelFebruary 23rd, 2016 Text neck syndrome Gameboy back “Sitting is the new smoking” (Forbes, 2015) Individuals use their smartphone 100-150 times per day Sleep texting Text claw More • Digital Burnout • Phantom Phone Vibration • Depression • FOMO / FOBO / Nomophobia • 2nd effects: Obesity, cardiovascular problems
- 34. Gallup suggests employers lay off the workplace efficiencies for a minute and think about their employees' mental health. "Make well-being an organizational strategy” in order to combat disengagement. Disengagement due to Burnout 34© Peter VogelFebruary 23rd, 2016 Source: Gallup State of the Global Workplace 2011-2012 27 24 62 63 11 13 0% 20% 40% 60% 80% 100% 2008-2009 2011-2012 Actively Disengaged Disengaged Engaged
- 35. Productivity loss due to active disengagement Disengaged Employees are Expensive! 35© Peter VogelFebruary 23rd, 2016 United States $ 450 – 550 bn per year Germany $ 150 – 190 bn per year United Kingdom $ 85 – 115 bn per year Source: Gallup State of the Global Workplace 2011-2012
- 36. 36© Peter VogelFebruary 23rd, 2016 22% 21% 10% -25% -28% -37% -41% -41% -48% -65% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% Low-Turnover Organizations Safety Incidents Patient Safety Incidents Quality (Defects) Absenteeism Shrinkage High-Turnover Organizations Customer Productivity Profitability Disengaged Employees are Expensive! Source: Gallup State of the Global Workplace 2011-2012
- 38. 38© Peter VogelFebruary 23rd, 2016 Develop a Holistic Strategy for Digital Transformation
- 39. Physical: opportunities to regularly renew and recharge at work Emotional: feeling valued & appreciated for their contributions Mental: opportunity to focus in an absorbed way on most important tasks & define when & where they get their work done Spiritual: doing more of what they do best and enjoy most, and by feeling connected to a higher purpose at work. 39© Peter VogelFebruary 23rd, 2016 Source: NY Times & HBR, 2013 Employees are happier / more productive, when four needs are met:
- 40. Performance rather than presence Inspiring work environment and engaging colleagues Shared / flexible office desks Split between office & home work Opportunities to learn and self-develop Opportunities to “leave a dent in the (company) universe” Digital detox culture & advisors Inhouse health consultants Services to boost work-life-balance Sabbaticals 40© Peter VogelFebruary 23rd, 2016 This becomes highly relevant for Digital Natives
- 42. 42© Peter VogelFebruary 23rd, 2016 Sources: McKinsey, 2011, Alexandra Samuel, HBR 2015
- 43. 43© Peter VogelFebruary 23rd, 2016 - Focused work - Digital “distraction” - Digital detox Example of a Daily Routine, combining…
- 44. Make digital detox part of your employee value proposition & recruiting Develop email policies (e.g. VW turns off servers after 5pm) Put in place effective vacation policies Teach your employees to delegate Develop clear paid-time-off (PTO) policies Make sure other employees respect each others time off Managers must resist after-hour or weekend mails to their employees Most importantly: Start at the top, and walk the talk yourself! 44© Peter VogelFebruary 23rd, 2016 Help your Employees to Unplug
- 45. Intel’s 8-week mindful awareness program: designed to develop… Better focus Emotional intelligence Stress management Insurer Aetna, retailer Eileen Fisher, Twitter, and others introduced… Yoga Self-hacking practices to help employees cope with fast-moving, always-on workplace 45© Peter VogelFebruary 23rd, 2016 Digital Detox Support at Work
- 46. 46Digital Transformation of the WorkplaceFebruary 23rd, 2016
- 47. Prof. Dr. Peter Vogel Peter Vogel Strategy Consulting Seuzach - Switzerland Mail info@petervogel.org Twitter: @pevogel Web www.petervogel.org Thank you for your attention Acknowledgements: design work by Susanna Vogel
Editor's Notes
- Problem with multi-tasking: Research has shown that multi-tasking is not efficient at all and that getting one thing done before starting another one is the better strategy.
- It seems as if all technologies gain in importance for the world of work
- X-axis: Transformation management intensity = XX Y-axis: Digital intensity = XX Comparing digitally mature companies to their less-mature competitors, Capgemini found striking differences. Those companies that are mature on either of the two dimensions outperform the less mature ones along the different dimensions of performance. Digerati = firms that have a digital maturity not only to build digital innovations, but also to drive enterprise-wide transformation. Indicators used: Revenue Generation Revenues, Employees, Fixed assets, turnover, … Profitabilty EBIT Margin, Net Profit Margin Market Valuation Tobin’s Q Ratio, Price / Book Ratio
- Companies need to adapt to this changing environment!
- Digital Dementia: Overuse of digital technology is resulting in the breakdown of cognitive abilities that are more commonly seen in people who have suffered a head injury or psychiatric illness.
- Digital Burnout: Study by Harvard MedSchool Professor Pillay shows that “nearly all senior leaders reported at least some signs of burnout and that all of them noted at least one cause of burnout at work.” Obsessive anxiety forms related to mobile technology FOMO = Fear of missing out FOBO = Fear of being offline Nomophobia = Fear of being out of mobile phone contact
- Employers who invest in engaging their workers and improving these employees' well-being have a distinct competitive advantage
- The culture of constant connection puts a lot of pressure on us personally and professionally. We are all constantly busy, but without generating much value at the end of the day. The question is what we as individuals and employers can do to manage this digital overload in order to create value without burning out. The solution is clear: Control the digital overload rather than letting it control you.
- Digital transformation is not just about technology! First of all, it is important that companies understand that digital transformation is not just about introducing some new tools, but it is about changing the entire organizational structure, behavior and culture.
- And as long as we are not entirely replaced by robots, employers need to clearly understand the drivers of employee satisfaction, engagement and productivity and how digital transformation has to be managed taking into account these factors
- Go through a few points… In the following I would like to focus only on “managing digital overlad and transformation”
- Employee’s access to work-related material from home has created a conundrum for managers: As an executive, do you want your employees to be available 24/7 or do you want them performing at their peek levels after having taken a digital detox? It is a question of culture and executives must lead by example…
- Avoid Multi-tasking, and encourage your employees to do the same! Multi-tasking slows us down (it takes us longer to complete tasks and we make more mistakes) It hampers creativity: Amabile finds that maximum creativity is if a person focuses on one task most of the day and collaborates only with one other person It makes us anxious and it’s addictive Be self-disciplined Focus as executive you will need to set clear boundaries of when and where you are available (Digital monkey management) Ask your employees to write down a list of questions to discuss with you at a fixed time every day in a combined manner, instead of firing off emails every time there’s a small question But because ignoring input coming it, it is important to filter… Manage your social media engagement. For example a “Twitter Tuesday” or a “Facebook Friday”, where you spend maybe 1 hour on FB and not more. The remaining days you do not open it. Filter out the unimportant you don’t need to be on top of everything. Get involved only in those things where your input is really needed Again, good digital monkey management with clear rules is important, so that only the important things arrive in your inbox, or have an assistant pre-filter all your emails Some refuse to respond to mails where they are in cc Make sure to work with filters for your email inbox to re-direct unimportant emails into folders you can review frequently at other points in time Forget about work every now and then Forget about work from time to time Give your brain downtime to process new intellectual input for learning and creativity Set aside time to disconnect. If something urgent appears, there is always a way to reach you Turn off all your connected devices Take breaks every 90 minutes, by walking in nature, listening to music, exercising, meditating, … Accept the fact that the world keeps turning without you If you have a tendency to be overly involved in things, you should work on it. You would be surprised about the results. Good planning & preparation / delegation is key to success. Give my example of Southern Pacific in 2009 Automate your news and sharing Use the existing tools on the web to automate your social media postings (via one channel) and select which news you care about
- Vacation policies 58% of employees receive no stress relief during vacation Make sure your employees can effectively disconnect & recharge during their vacation. It is imperative that this is part of your company culture Employers can help alleviate any guilt they may feel by assuring them they’ll be more effective and productive when they return after a true detox trip Teach your employees to delegate In order to truly enjoy the digital disconnect and feel relaxed, it is important to know that one’s work is in good hands. But this takes time and preparation Develop clear PTO policies Discuss with your employees their paid-time-off and re-assess from time to time. Work is changing and employers must adopt their overall setting, too. Walk the talk:
- EI = Traits & skills that facilitate interpersonal behavior, including self-awareness, self-management, social awareness, relationship management
- Make sure your workplace is ready for when these guys knock on your door…