Tuesday, January 12, 2016

Digital Master Tuning #124: Three Digital Management Styles

Digital is about outside-in, customer centricity.

Organizations large or small are on the journey to digital transformation, there are different theories of organizational structure evolution, continuous brainstorming about the concept of digital management methodology or tools, and the format of future of the organization. Ultimately, what's the digital management style to run a high effective business and build a Digital Master?

Holism: If the majority of organizations at the industrial age are manipulated by silo thinking and hierarchical style, and then digital means holism and interconnectivity. It’s important for leaders and managers to learning to think the systemic wholeness. This digital wholeness comprises various media that are each functionally contrary to the unitive, fluid and seamless nature of the whole, it’s about seeing interrelationships rather than isolated things, for seeing patterns of change rather than static “snapshots.” It is to leverage systems thinking to set general management principles to understand how the “part” interconnected with the”whole.” This is always a good start when working to build collaboration, understanding where each is coming from and having some trust from them. This is something that you should work towards. And organizations arise when the scale of the interrelations, interactions, or interrelational interactions surpasses our brain's capacity to be able to do whatever it does with smaller scales. It's important to leverage ST to understand the variety of business relationship. advocates the concept of “business as a whole is superior to the sum of pieces.” In terms of how to break down silos between subcultures, shared goals are useful. These goals should include the needs of all different functional dialect and cultures. For example, when coming up with new innovations, IT management should not only be responsible for technical performance, but also for ensuring that their ideas can be made and that they will be profitable for the company. Digital management styles include:
-Interrelational: management processes being developed that help to reduce the tensions, frictions, and conflicts that arise.
-Interactional: management processes being developed that help to communicate objects and concepts.
-Interrelational interactions: management processes being developed that help to communicate objects and concepts that are being used, or that are wanted by at least one other person.
-Organizational - management processes being developed that help to live together despite the disjunction process that took place as the size of the group exceeded your brain's threshold.

Solution-driven: Many industrial organizations are  inside out, process driven, but digital is about outside-in, customer centricity. That ‘digital way” is moving those who practice it to a new paradigm very similar to the cultural shift you are undergoing towards this unpredictable world of order-disorder complete with butterfly effects and tipping points. The negative reactions to the problems come from a state of distrust, disengagement, and disempowerment. It is so easy to point the finger elsewhere and not look within. Just think of the time/energy/money wasted by this pattern of blaming others. Avoiding this pattern begins with a belief and understanding behaviors have ripple effects and that we all tend to be drawn into situations which force us to learn and grow, and focus on PROBLEM-SOLVING. The digital management focuses on cultivating the positive attitude with a problem-solving mindset. When people decide together to change something they don't look first for the negatives. They see the positives - the goals, the benefits, the vision. That drives them to work through the negatives together - to find solutions, not problems. The focusing is what is going on in people's brains when change is happening, and how to mitigate the harmful impacts without alienating the people who need the help in the first place. Quite possibly, the next step is to have a deeper discussion about what it means to sense and respond to a dynamic unpredictable world clearly and skillfully when it is possible rather than trying to predict and control the way through.

Agility: From doing Agile to being agile is a significant aspect of digital transformation. The problem is that the whole organization and all of its departments, need to embrace the agile philosophy. The Agile principle applies to strategy-execution cycle and digital management methodology. Once you have that vision of the well-defined goals, then the process can start. Break the goal to deliverable elements.  Each task is weighed and assessed and delivered in continuous burndown chunks with the flexibility to adapt to solution designs. The greater the speed of change in the market, the greater the level of agility is required to respond to it effectively. Digital management has to strike the balance between stability and agility. In the digital business dynamic, projects can be complex with uncertain outcomes and goals that can change over time. The main focus of agile methods is to address the issues of complexity, uncertainty, and dynamic goals. Agile strategy management integrates planning with execution allowing an organization to "search" for an optimal ordering of work tasks and to adjust to the changing requirements. The major causes of chaos on a project include incomplete understanding of project components, incomplete understanding of component interactions and changing requirements. Balance in everything. You need to focus on the well thought out strategy - and follow that star. But you do need the agility, that when markets move, you can move with them - or even better - ahead of them - and adjust the strategy accordingly.

Therefore, the real Digital Masters are those high-mature organizations with both clear digital vision, well-crafted digital strategy, and high-effective digital management discipline and styles, because they can more proactively develop advanced digital capabilities step-by-step, and embed digital premium into the very foundation of their business, keep the end in mind, and achieve high-performance business results.


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