Thursday, April 16, 2020

Five Characteristics of Digital Organizational Maturity

Maturity is the state of fluency, quality, balance, ripeness, and resilience. 

Digitalization implies the “always on and hyper-connected” businesses with the very characteristics of velocity, uncertainty, complexity, ambiguity, and diversity, etc. The digital organization is a dynamic system which needs to continue evolving and adapting, bringing greater awareness of intricacies and the systemic value of organizational systems, business capabilities, people dynamics, resource alignment, and technological touches. Here is a set of characteristics of digital organizational maturity.


Fluency: The organization with digital fluency means that the business can speak the digital language fluently, break down silos and streamline information flow across functional boundaries because information brings about business ideas and insight for enabling organizations to grasp business growth opportunities and preventing potential risks. Further, a high mature digital organization with digital fluency can handle innovation streams for different goals and different time frames and manage a balanced portfolio with the right mix of radical innovation and incremental innovation.

From the management perspective, it’s about how to create a digital-savvy environment that encourages knowledge sharing, follows digital principles with strong disciplines, and develops the best and next practices to get digital ready. At the high maturity level, companies need to embed digital into the very fabric of the business culture and explore digital in a structural way. Business leaders are able to communicate strategy and change in various forms and forums skillfully, to tailor different audiences, including employees, customers, investor relations, or other business partners, for achieving digital fluency.

Quality: Quality is in everything people do and experience. "Quality management," like "change management," needs to be embedded into the corporate culture; it requires engaging all the people involved working together as a team to excel in quality products or services delivery. Quality assessment is to evaluate both individual and team performance on how effectively they can put profound knowledge, robust processes, and efficient tools actually used in actions, to improve the quality of products/service. It’s also about how to evaluate their skill/capability/potential, as well as their learning agility to bring business to the next level of maturity.

Quality management needs to go head to head with many other management disciplines and become everyone’s business. From the operational management perspective, quality (Efficiency + Effectiveness = Q) is doing the right thing right, the first time, with no backlog and wastage, achieving the highest customer satisfaction rate, and ensuring business performance and maturity.

Balance: The emergence of potential opportunities for exploring digitization is likely to follow the nonlinear patterns with exponential speed. Therefore, it is important to strike the right balance between chaos and order, process and creativity, “keeping the lights on” and business transformation.

Digital organizations and their people must learn through their interactions with the business environment, it requires the balance of “old experience” and “new ways to do things”; listening and telling; “over-communication” and “less is more,” learning and doing; collaboration and competition, etc, and then, they apply their learning, act, observe the consequences of their action, make inferences about those consequences, and draw implications for future actions.

Ripeness: A fruit or vegetable is mature when it is ripe and ready for consumption. When a person knows the rules of life and has trained him/herself to great levels of capability or skill, tastes the failure and success, the person becomes fully developed, ripened and thus has achieved maturity in the role. Maturity refers to having a sound understanding of basics, being mindful with independent thinking skills to make fair judgments or effective decisions.

The multidimensional digital effects provide impressive advantages in terms of the speed of delivery, the quality of information, the degree of organizational learning and organization that goes with it, and the wisdom of the digital workforce, etc. The digital organization can reach the stage of ripeness when it acts as an organic system that continues evolving and adapting, with the right appetite to tolerate risks and having the differential competency to accelerate performance.

Resilience: With the high velocity and fierce competition, more often than not, businesses perhaps get disrupted even overnight. Therefore, to survive and thrive, businesses today must present resilience to fail fast and fail forward, with the capability to enforce governance and manage risks intelligently.

Strategic risks are about uncertainties, inherent variability and the unknown interdependencies among sources of risks. A business system gains more and more energy until it crosses the point of system resilience. The level of organizational resilience depends on how the business can manage the gray area effectively in today's “VUCA” environment, as well as develop a culture of risk intelligence, to drive performance improvement and increase system resilience.

Maturity is the state of fluency, quality, balance, ripeness, and resilience. The challenge for organizations across the vertical sector is to manage its portfolio of relevant cross-border strategic synergies and organizational interdependence, fine-tune the underlying functions and structures, develop high caliber professionals to achieve digital coherence, and deliver high-performance results continuously.

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