Wednesday, February 17, 2021

Understand Intensity of Digital Transformation

With high velocity and frequent disruptions, the varying stakeholders need to adjust "every day" of the digital transformation journey as the current situation and its net value changes.

Digital transformation is inevitable. The purpose of going digital is to achieve high performing business results and unlocking the full business potential. There are intensity of change and there are numerous points-of-view and reference points of varying stakeholders, and they all have a different view on "change." They must raise their vision, define the “why and what” the change outputs will look like, and how to strengthen the strength and improve the weaknesses.

Higher high: The height of change management needs to be compatible with the height of strategy, and the height of Change Management is related to how ambitious the change objectives are. The higher the horizon of change is, the higher level of impact and complexity perhaps get involved. In fact, to explore the emerging digital horizon, you have to understand what it means to the business and get to know the external changing connected environment, see interrelationships rather than isolated things, and understand patterns of changes rather than static “snapshots.” Inspirational change leaders can higher the high - clarify vision, provide clear directions, bring cohesive processes, and stand by their words and motivate people to change.

In the rapidly evolving businesses and complex digital economic systems, to stay competitive, companies must explore the emerging digital horizon and ride steep change curves confidently. Change isn't always in our control, but it is amazing how much control we have in adapting to it. Digital transformation is the large-scale change effort to reach the higher horizon of business growth cycle. It is important that businesses get the best out of the people, the company with higher changeability can push people out of their comfort zone, and get the maximum motivation to maximize the performance and unleash their potential.

Deeper deep:
With the overwhelming growth of information, knowledge is outdated soon. It is crucial to transform information into business insight and intelligence which can instruct organizations to adapt to changes systematically. Ideally, digital transformation can give your business the ability to apply real-time insights across the organization in ways never possible before. Information allows you to build an actionable insight as to how to move from one level to the other for deepening understanding. Without deep insight, organizations perhaps only fix symptoms, not the root causes. Deeper deep involves a step-wise scenario of information –insight – decision making.

The abundance of information flow makes it possible to gain real-time insight and business foresight if organizations are truly being digitized underneath. For decision-making to be effective, the decision-maker should deeper deep, making their decisions rich in information and significantly different from the available data. In the business setting, delivering a high level of digital impact to your organization is not about finding a way to replace the old information management system. It is about getting insight to the right user in a way that supports a better decision life cycle.

Sofer soft: The management is more art than science, the communication and management style is a “soft discipline” to achieve high business performance. Traditional command & control management is ineffective if relying on “exclusiveness” (excluding things like listening, accepting feedback, ensuring that expectations are reasonable). The problem of it is that you can control people’s behavior, but not their mind, and it leads to authoritarian behaviour and bureaucratic decision-making.

“Softer soft” management style can truly touch the mind and heart, and make change sustainable. Create a harmonized working environment by communicating smoothly to make collective decisions and taking a collaboration road to achieve strategic goals. The soft communication skills such as influence and persuasion which begin with trust, but influence does not necessarily come as a giving to a person with a high trust index, but via bridging and having conversations. It’s a skill to be learned, a persuasive communication, exemplary leadership, personal sacrifice, all held together by a collection of confidence to improve leadership effectiveness and management maturity.

Harder hard: Processes underpin digital capabilities, capability will decide business’s strategy and affect business execution. Process s hard, so is business capability. The higher the strategy is, the “harder” the business capabilities need to be built - there is intricate complexity in it, and capability will decide business’s strategy and affect business execution. “Harder hard” capability development evolves and moves from the fundamental level to differentiated level between categories based on the technology evolution, business driver, or business model evolution etc. Often capabilities include dependencies, one is part of another or depends on another. So capability mapping includes capability dependency identification, visualizing the end to end enterprise and bridging the “gap of opportunity” between where you are and want to become, to ensure capability portfolio coherence.

In practice, capability designers create a model of it and measure the outputs “Harder hard” capability design and modeling involves capability analysis - documenting how an existing capability works/ flows to capability re-engineering - making improvements to an existing capability to design - creating and/or documenting a new capability, linking the sequence of activities, events from end to end, and taking the theoretical design to implementation, measure it, and seeking improvements. Moreover, these activities are cyclic.

With high velocity and frequent disruptions, the varying stakeholders need to adjust "every day" of the digital transformation journey as the current situation and its net value changes. The well-educated digital leaders and professionals must be comfortable with “VUCA” reality, broaden their outlook, envision the bigger picture, discover and develop their organizational strength, be conscious of the learning curves, keep the end in mind in order to drive digital transformation in a structural way.

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