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The components of a perfect storm
● Huge market disruption caused by technology
● Customer / supporter behaviours have changed radically
● Reputational integrity of the sector is under threat
● Channel shift in retail - massive challenge for charity shops
● Skills exodus - talent moving out of the sector
Progressive leadership in the digital age
“Digital technology has fundamentally changed two things: the dynamics of the markets in which you operate and the speed needed to remain competitive and relevant.”
Forrester Research, December 2015
Progressive leadership in the digital age
“A key challenge identified in the 2015 Index is the
continued lack of engagement with digital amongst many
charities. Over half of all charities do not believe that having
a website would help increase their funding and nearly 70%
state the same about social media. With the level of basic
digital skills falling, in contrast with UK trends, attitudes
are of key concern.”
Lloyds Bank UK Business Digital Index 2015
Progressive leadership in the digital age
UK: Charities marketing spend vs total marketing spend: 2007
Progressive leadership in the digital age
UK: Charities marketing spend vs total marketing spend: 2009
Progressive leadership in the digital age
UK: Charities marketing spend vs total marketing spend: 2012
Progressive leadership in the digital age
● For 77% of the overall marketing spend, DM has represented 9% of overall annual growth in voluntary income
● For 2% of the overall marketing spend, Digital has represented 6.2% of overall annual growth in voluntary income
Source: Institute of Fundraising 2013 Fundratios Report
Progressive leadership in the digital age
● Rise of the Chief Digital Officer in commercial sectors
● No equivalent roles in charity sector (a few CIOs)
● In 2015 alone, 10 CDOs have gone on to become CEO
● Charities Aid Foundation (CAF) Social landscape study: sector CEOs ranked digital as 16th out of 18 in their strategic priorities
Progressive leadership in the digital age
● Sector leadership isn’t currently demonstrating vision or bravery in digital transformation
● Responsibility for the process has been delegated away from senior levels
● Digital leaders and champions within the sector are often focused on delivery not strategy
● Trustees are failing to support proactive change
source: The New Reality, 2015 - newreality.info
Progressive leadership in the digital age
Question:
Why is technology and digital so under-represented within senior
management?
Progressive leadership in the digital age
● Very patchy tech / digital representation at board level
● Only 2.1% of all charity trustees are under the age of 30, with the average age being 57
● Tendency to risk aversion - tech investment usually has a chunky price tag
● Specialist recruitment is a challenge but essential
Progressive leadership in the digital age
Question:
Has anyone got an example of a successful digital / tech trustee appointment they can share?
Progressive leadership in the digital age
Does your organisation:
● Have the right skills and capabilities?
● Ensure that audience needs drive commissioning?
● Have a consensus around organisational priorities?
● Have effective workflow in place?
● Have good internal comms and collaboration?
Progressive leadership in the digital age
● The lines between digital, marcomms and IT are becoming increasingly blurred - this is largely a good thing
● However, this causes conflict and uncertainty and needs to be managed carefully
● Conduct a RACI Matrix between digital and IT to define the relationship and communicate this clearly
Progressive leadership in the digital age
● Take full ownership of the digital agenda
● Open up the pathways to senior management for digital and technology ‘natives’
● Bring digital planning to the heart of the strategic process
● Set yourself and your leadership team clear KPIs around digital transformation
Progressive leadership in the digital age
● Seek guidance and mentoring from your peers in retail, publishing and financial services - who has adapted well and how?
● Bring in industry expertise at board level - actively address the skills imbalance
● Acquire enough knowledge to be comfortable with the strategy, not the implementation - and the semantics!
Progressive leadership in the digital age
● This is the hardest part - if your organisation is over 50 years old, the cultural behaviours will be hard to change
● Be brave - it is no longer acceptable for people to be fearful of or obstructive to technological innovation
● Lead by example: develop pilot innovation programs that meet specific needs and demonstrate how you can evolve
Progressive leadership in the digital age
Berwick Partners
Progressive leadership in the digital age
Dealing with the perfect storm
● Profound change requires cultural readiness
● Cultural readiness requires engagement, adaptability, consistent vision, courage and tenacity
● It’s useful to know where you’re starting from
An organisation may…
● be left behind and lose competitive edge● become irrelevant● fail to attract or retain staff, customers, partners, donors,
volunteers…● lose public trust, interest and/or reputation● worst case – suffer a catastrophe
Progressive leadership in the digital age
Progressive leadership in the digital age
Where are you starting from?
Progressive leadership in the digital age
Some ideas on measuring how much risk lies within culture. Consider where typical behaviours in your organisation lie:
How Why
Cost Impact
Poor comms Effective
Analysis paralysis Bias for action
Tactical Strategic
Silos Joined up
Introvert Extrovert
Accountability is obtuse
Accountability is clear
Avoid failure Learn from mistakes
Engagement - none Visceral
● Find a way to clearly articulate “digital transformation” across the entire organisation
● Identify the particular current cultural strengths and weaknesses of your organisation, and internal attitudes to and adoption of digital technology
● Place effective “digital champions” at key points throughout the organisation and ensure they are clear as to what’s expected of them, and fully supported from the top
Progressive leadership in the digital age
● Ensure your digital and IT teams are aligned and interlaced – with board level representation
● Require this team to continuously research, articulate and deliver the “art of the possible”
● Ensure that any technology-based change project has effective senior sponsorship and excellent communication at every stage
Progressive leadership in the digital age
● Applicable to everybody● Cultural & universal● A reflection of the world as is● Collaborative, silo-averse● Incremental and constant● Audience-led● Innovative● Long term
Progressive leadership in the digital age
● A silver bullet● Just about technology● Just about Fundraising & MarComms● Optional● Temporary● Simple
Progressive leadership in the digital age
● Successful change is easier when people want it, and are excited by the possibilities
● People choose to engage – you can’t make them – but you can create an environment that will encourage them to choose
● For many organisations change will be a complex, slow process measured in years, needing focus, discipline and stamina!
Progressive leadership in the digital age