This blog formalizes the insights, ideas and opinions voiced at the Thriving Through Digital lean beer conversation held in Auckland on 12 September 2018. The specific topic that we discussed at this session was “ How to start your digital transition.” You can find more information / join the group conversation here.
In developing this blog I have considered the conversation and resulting online dialogue, research findings and also my own views on the topic. The intention is that this blog (as amended and updated over time) will be combined with future blogs and insights to form the basis of a book which addresses the question “What does it take to transition from a successful “analogue” organization to a successful digital leader?”
“A journey of a thousand miles begins with a single step” Lao-Tzu
This famous saying from the ancient Chinese philosopher Lao Tzu reminds us that even the longest and most difficult ventures have a starting point; something which begins with one first step. And there is no doubt that the journey from a traditional analogue organization to a successful digital organization is a long and difficult one. If you want evidence of this you just need to look at the rates of failure for organizational transformations (I have written about this many times before and if you are interested in some data look here). But, as Lao Tzu reminds us, no matter how difficult the journey you need to start with one step. The question is – what is that step?
Well, at the risk of being a consultant, it depends. While there are some broad themes that all journeys to digital will need to address, there is no recipe book that you can follow. Your journey is unique because:
It depends on where you are today on the analogue to digital continuum.
It depends on where you believe you want be on that continuum.
It depends on the competition you are facing and what your competitors are doing.
It depends on your organizational purpose and desired outcomes.
It depends on what you learn on the way and how you adjust.
It depends on the skills you have available to you today and the skills you will need along the way.
It depend on your customers (and other stakeholders) and what their expectations and desires are.
It depends on so many things and before you set out on your journey you need to answer at least some of these unique to you “it depends” statements so you know where you’re heading and step out in the right direction. The best way to do that is to do a “digital readiness assessment” so that Lao Tzu’s first step is more likely to be in the right direction every journey.
A Digital Readiness Assessment should set out to answer the following questions for the organization:
- What does digital mean for us? Within the context of your definition of digital you should then:
- Define and agree a vision for your digital organization
- Identify the likely value that transitioning to digital will generate
- Define performance expectations and key measures that will support you to track your progress to a digital organization
- Define appropriate governance and delivery processes for your journey
- What changes do we need to make to our business and operating model to become our definition of digital? You can find a description of the types of changes you are likely to need to make in this blog –Analogue vs Digital.
- Is your current IT performance capable of delivering the changes that you will require to enable your new business and operating model? When considering this look at all elements required for high performing IT. This includes (more detail here):
- IT delivery excellence including both the quality of your day to day services and your ability to effectively deliver IT enabled initiatives.
- How well your teams work together to deliver the value of IT, including the technical change, the process change and supporting your people to adapt to the changes and build the skills and capabilities required for success.
- Is your technology architecture and execution strategy appropriately aligned to the digital perspective of your business strategy and is your investment appropriately focused on bringing your strategy to life?
- What high level programs will be required and what value / outcomes are they designed to deliver? While your programs will be unique to you they are likely to be some combination of:
- Business and customer programs designed to implement significant changes to your business and operating model including how you interact with your customers, the products and services you sell and reducing your cost to serve.
- Improving IT delivery including building the digital platform (e a coherent set of relevant integrated fit for purpose technologies) and ensuring that the capabilities mentioned above are sufficient to enable your transition to digital (improving actual technical delivery, the ability to change and improve process and perhaps most importantly skills development, so people can effectively execute the new processes and utilize the new tools to create value).
- Performance Fundamentals including defining, implementing and rolling out a “digital” performance scorecard that allows you to track progress, redesigning your organization so that collaboration and change comes easily and naturally to the organization and ensuring that you develop or source the skills that you will need to succeed in the digital future.
Having asked and answered these questions you are now ready to take the first step on your journey to digital. Yes you should plan your journey and be prepared however as with all great journeys, all great adventures, your journey to digital is unlikely to be a simple and direct one (imagine how boring the Lord of the Rings would be if Frodo simply walked to Mount Doom and dropped the ring in, no surprises, no dramas, no sweat). You can’t simply define a 3 or 4 year road map to become digital and expect to be able to execute it as planned. The history of change and innovation is a history of iteration as ideas are built on, changed, stripped back and morphed over time (for a quick introduction to this start with Stephen Johnson’s TED talk Where Good Ideas Come From or Scott Berkun’s Myths of Innovation – example video here) and if you are going to succeed on the journey to digital you will need to engage in this process and use it to your advantage.
One way to do this is to manage your transition to digital through the Agile notion of a sprint. Sprints allow you to iterate forward towards your goal rather than the more traditional plan back from your vision. Taking an iterative approach allows you to learn and adjust and it is the ability to learn and adjust that makes your journey unique and that allows you to increase your chances to successfully navigate your transition to a successful digital organization.