Being digital engaging the organization to accelerate digital transformation - capgemini consulting

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Being digital engaging the organization to accelerate digital transformation - capgemini consulting

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  • 1. 101011010010101011010010101011010010A major research initiative at the MIT Sloan School of ManagementBeing Digital: Engaging the Organization toAccelerate Digital Transformation

2. Engaging Employees through Digital -A Double-Edged SwordAsk any executive who has ledan organization through a large,transformative change, and he or shewill tell you that a companys strategicvision is only as good as the peoplebehind it. Digital Transformation is nodifferent. Making new digital ways ofworking stick is a matter of winning thehearts and minds of people at all levelsin the organization. Instead of offeringresistance, employees who are engagedand invested in a shared vision of thecompanys digital future help make thatvision a reality.Many of the concepts in the executiveschange management playbook stillapply to Digital Transformation. But,how executives are engaging theirorganizations is dramatically different.Digital tools help leaders connect withemployees at unprecedented scale andin new ways. Blogs provide a forum to2to share their ideas, collaborate withcolleagues and be recognized for theircontributions. Simply put the best wayto become digital, is to be digital.Yet these new digital channels area double-edged sword; technologyoften poses one of the biggesthurdles when engaging employeesin Digital Transformation. Wheredifferent generations of workers havedifferent levels of familiarity with digital,executives struggle to reach everyonein the organization. Adoption of digitalcollaboration platforms also remains lowin many companies (see infographic),despite significant investment (andconsiderable hype).The stakes for digital engagementare high. Capgemini Consultings jointresearch with the MIT Center for DigitalBusiness shows that digital engagementis a major driver of success in DigitalTransformation.1 Rather than jumpingheadfirst into digital engagement,executives need to lay the groundworkto make sure those efforts are effective.This means taking a proactive approachto many of the common challengesthat organizations face, and leveragingstrategies that many leading companiesare already taking in their own DigitalTransformations.Simply put the best wayto become digital, is to bedigital.share regular, candid perspectives andcollect feedback. Digital videos helpcreate richer, more personal executivecommunications. Enterprise socialplatforms offer employees the opportunity 3. 3Digital EngagementPresents Common ChallengesOver the course of our research, weinterviewed over 150 executives acrossa broad range of industry sectors andgeographies. Many executives notedchallenges that they faced in engagingtheir employees in Digital Transformation.Among these issues, a number ofcommon themes emerged:Come on, I know thecompany is over 100 yearsold, but our informationand IT capabilities donthave to match the age ofthe company!I need a charismaticquant somebody whosan influencer and cancarry their weight in asenior meeting, but at thesame time, someone whocould roll up their sleevesand look at data tablesand build models andenjoy it.A generational divideYounger workers today have fargreater familiarity with digital toolsand ways of working than their moretenured counterparts. Many executiveshighlighted a growing gap betweenolder and younger workers in theirexpectations and work habits aroundtechnology. Where older employeesface a learning curve, Generation Yworkers are often underwhelmed bythe digital tools available to them. Oneexecutive comments, these peoplecoming into the company, mid 20s, late20s, even early 30s, they do everythingelectronically. They say Come on, I knowthe company is over 100 years old, butour information and IT capabilities donthave to match the age of the company!Executives also noted that youngerworkers are often frustrated by a slowpace of change. The woman that is incharge of our social media policies ispushing, right up to the CEO, saying,We are way behind. You better movenow. We are way behind. Move now. Itsvery persistent as well. Really trying tobring the company forward.Finding the right communicationsstrategy, incentives and pace of changeamidst this generational divide hasproven a challenge for many companies.And this issue shows no signs ofabating. Within just the next few years,college graduates entering the workforcewill have no memory of life before theInternet. Just as a house divided cannotstand, a widening digital (and cultural)divide between employees may frustrateefforts to engage the entire organizationin transformation.The scarcity of digital talentDigital Transformation is about turningtechnological potential into real businessoutcomes, and it demands a differentmix of skills. Finding people with equalparts digital savvy and business acumenhas proven a challenge for many ofthe executives that we interviewed.According to one executive, I need acharismatic quant somebody whos aninfluencer and can carry their weight ina senior meeting, but at the same time,someone who could roll up their sleevesand look at data tables and build modelsand enjoy it. When these skills do notalready exist within an organization,executives also noted difficulty findingthem externally, Our recruiters dontknow where to go find these people,and people who are looking for [thesekinds of] opportunities arent looking at[our company] for them. Without thedigital talent to realize them, ambitiousvisions for Digital Transformation maylack credibility or worse overreachthe capabilities of the organization. 4. Implementation goalsdefined in terms ofactive licenses or livedeployment locationsmiss the true ROIof enterprise socialplatforms: activelyengaged users.4Where engaged managerscan be a cornerstone ofcultural change, resistantmanagers can stop DigitalTransformation in itstracks.Digital platforms: highpotential, low adoptionSome of the executives we interviewedreported success in using platformssuch as enterprise social networks orcollaboration tools; others highlightedchallenges. Given the investment madein these systems, lack of adoption isa serious concern. One CFO states,Weve spent an awful lot of money ontechnology, but I still see people workingin the old way.On the user side, executives reporteda lack of understanding and unclearbusiness value as major issues. A leaderin the food service industry explains, Ithink people are apprehensive about newtechnologies. They dont understandthem, there is a fear of unknown. Theydont really fully understand how theyregoing to drive business outcomes.Executives also pointed out challengesin managing the implementation of theseplatforms. When success criteria arefocused on IT deployment, actual useradoption can take a back seat to tacticalmilestones. Implementation goalsdefined in terms of active licenses or livedeployment locations miss the true ROIof enterprise social platforms: activelyengaged users. The result is a widelydeployed system that no one actuallyuses.One hospitality industry executive alsovoiced challenges in shifting technologystrategies: We were looking at one tool.We got a decent user base in it. Andthen we found out that we didnt liketheir pricing model And so, we said,OK, were going in another directionnow, were trying a different tool, and[we had to] regain the momentum thatwe had with the previous one. Whenemployees havent adopted new digitaltools, they often cannot contribute to animproved business process, much less asuccessful Digital Transformation.Management roles in adigital organizationNew digital tools, automation ofbusiness processes and an increasingrole of data in decision-making canincrease transparency in an organization.But, as conversations move online andinformation is more freely available,some executives noted resistance frommanagement employees. Managersmay view these trends as a threat to theirautonomy or influence. Explaining salesmanagers reactions to the introductionof a real-time reporting platform, oneexecutive comments, That kind oftransparency, theyre not used to, sotheres an initial pushback.Middle managers are often the frontlines of introducing change to anorganization, as they have the importanttask of translating a strategic vision intoeveryday operations. Where engagedmanagers can be a cornerstone ofcultural change, resistant managers canstop Digital Transformation in its tracks. 5. 5Successful Companies are Mobilizing theirOrganizations through DigitalBroadcasting accountabilityA medical technology company we interviewed hosted close to 300 executives andsenior managers in a multi-day strategy workshop. Each afternoon, the companyrecorded digital video debriefs from executives sharing what was discussed andwhat decisions were made. These videos were then broadcast to the rest of theorganization so employees could follow the progress of the workshop. Moreover,the broadcasts helped hold the attendees accountable for the decisions and actionsthat were taken in the session. According to one attendee, Youre broadcasting,Heres what were working on, day one back to their organizations. So when[executives] walk out of the meeting, people know that they were there and whatthey were working on. And all of a sudden the organization has an expectation offollow-up. Its really interesting.4Faced with common challenges inengaging their organizations, manycompanies are leveraging similarstrategies to mitigate them. Our recentreport, The Digital Advantage highlightedspecific areas where digital leaders (theDigirati) are focusing their engagementefforts (see infographic on Page 6).Taking leadership onlineGone are the days of executiveshaving assistants print out emails forthem to read. Today, many digital-savvyCEOs are active bloggers,podcasters and Twitter users. Manyof the executives we interviewedare using similar digital platforms tocommunicate with their organizationsaround Digital Transformation. In doingso, they are leading by example andsetting expectations for the rest of theorganization.