Assess Digital Fitness to Maximize It

 The digital fitness is based on strategy competency and execution effectiveness, information fluidity, people satisfaction and wise people investment. 

Organizations are moving from doing digital through experimenting some digital technologies to going digital through expanding to all dimensions for a holistic digital transformation. Digital transformation is now affecting all aspects of digital business management within and around the organizational ecosystem, to business models, processes, and people development. Performance assessment is a common practice to evaluate digital fitness in order to maximize it.

The digital management fitness: Due to the increasing pace of change and the exponential growth of information, the digital organizations are like the self-adaptive system which is able to re-configure its own structure and change its own behavior during strategy execution with its adaptation to environmental changes. Thus, traditional performance management needs to be updated to adapt to the digital dynamic - interconnected and always on with the increasing speed of change and evolve emerging business activities. It is possible to see what enables a self-adaptive organism is an information-driven process feeding and how to sustain it. The right mixed organizational structure is one that allows the right mentality and culture to bloom. Within a well-aligned structure, that dedication and effort may be spent on the digitalization efforts rather than overcoming organizational hurdles and pushing against structural boundaries. Digital organizations need to expand the capacity by improving operation efficiency and effectiveness with the measurement to resolve problems. Thus, the business performance management needs to enforce timely communication and make sure measuring things really mattering, and measuring them in the right way. To evaluate digital fitness holistically, the ROI digital performance management should take into account both financial and nonfinancial measurement, It’s not just about measuring efficiency - the marked improvement in reducing or streamlining processes; it’s also important to measure the overall business effectiveness and quality, to make a clear strategic alignment, and help the management make an objective assessment of the progress made in digital transformation.

Innovation fitness: A leading digital organization with innovation fitness can handle innovation streams for different goals and different time frames. Innovation fitness means that organizations today have the better ability for connecting dots across functional, industrial, geographical, or generational boundaries, and manage a balanced portfolio including both radical innovation and incremental innovation, hard innovation, and soft innovation accordingly. Innovation Management overall has a very low success rate. Besides the challenge of managing innovation, measuring innovation is also full of hassles, but a critical business process of improving innovation success. In many companies, a pervasive obsession for purely numerical success indicators sweeps aside much of the softer, more qualitative information that is crucial in the understanding of the health and well-being of the firm's innovation efforts. You need to select Key Performance Indicators carefully by deciding which are seen as critical to making the significant innovation management improvement for delivering better business results. For example, the process which demonstrates the growing capability of the organization to deliver more innovation with business impact in the future. Ultimately, the goal of innovation management assessment and measurement is to build innovation capacity and maximizing innovation fitness.

People fitness: Organizations are operated by people for the people. People are often the very purpose, also the weakest link in the digital transformation. Thus, people fitness is the most impactful part of the overall organizational digital fitness. The digital fitness is based on both how people think and what they are doing, their thinking capacity and learning agility. Organizational fit means more about value adding or behavioral norms. There is a big difference between cost and quality. To measure the true value just by counting all the cost, the company has paid to the employee would be ineffective. An employee's "book value" can be viewed as a function of what investments have been made in them and how they bring higher-than expectation value. Digital organizations encourage self-discovery, autonomy, and creativity. The true value of an employee is demonstrated when the employee acts as an ambassador, innovator or customer champion of the organization; brings the advanced mindset, right attitude, updated knowledge, solid skills, differentiated capability and creativity that translates into expected performance outcomes. Further, you need both best fit employees and high-performing teams. Sometimes, it’s not easy to bring all talented people and mold them into an effective team. Because people need to be intentional about how they enter the role, focusing on understanding. The team fit or the organizational fit manifested in accepted and expected behavior, has a way of neutralizing differences to create synergy. A self-disciplined and autonomous team is often composed of many self-motivated people who can adapt to personal drive and focus on performing well in new and changing context. Thus, it's important to make an objective assessment of employee engagement, communication effectiveness, and collaboration coherence, to ensure the organization is at the great shape for maximizing the collective human potential.

The digital transformation journey is more evolutionary than revolutionary. The digital fitness is based on strategy competency and execution effectiveness, information fluidity, people satisfaction and wise people investment. Assessing organizational personality, evaluating digital fitness, managing company performance and maximizing business potential are all important digital management scenarios to improve the overall business maturity.

Posted in: Digital Fit,Digital Master,Digital Maturity,Performance Master