Tag Archives: digital transformation

Building a Strong Foundation for Change

Charting ChangeRecently I had the opportunity to sit down and have a chat with Will Sherlin of 3PillarGlobal about my latest book Charting Change on The Innovation Engine podcast.

In this conversation we focused on how to make change efforts stick within any organization. Among the topics we discuss are how non-software companies can still benefit from Agile methodologies, how to develop actions when the desire to make changes reaches a groundswell, ways to make changes seem less overwhelming and more human, and several other topics of organizational change, digital transformation, and innovation success. You can find the interview here on SoundCloud:

Most of what we talk about in this interview is highlighted in my latest book – Charting Change: A Visual Toolkit for Making Change Stick and my first book Stoking Your Innovation Bonfire: A Roadmap to a Sustainable Culture of Ingenuity and Purpose, the keynote speeches and workshops I deliver around the world on the topics of innovation, change, and digital transformation, and in the revolutionary Change Planning Toolkit™.

The Change Planning Toolkit™ contains more than 50 visual, collaborative tools to help you beat the 70% change failure rate. You can get the listed number of tools from the Change Planning Toolkit™ by doing the following.

(10) – Visit the free downloads page
(26) – Buy the book
(50) – Purchase access to the Change Planning Toolkit™ (comes with a QuickStart Guide)

P.S. Site licenses for the Change Planning Toolkit™ and public and private training events are also available

Charting Change Quote Braden Kelley

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Charting Change – Kindle Price Reduction

Charting Change is Number OneI’m super excited how well my new book Charting Change is doing on various Amazon sites around the world (USA, UK, CA, AU, DE, FR, JP)!

Charting Change has been the number one new release on Amazon for at least “Business Management” and “Production & Operations” so far. It also was the #2 new release for “Organizational Change” and probably #1 too (but I think I missed getting a screenshot).

The book is currently available on Kindle and as a hardcover, and I’m excited to announce that the publisher has reduced the price on the Kindle version to make it more accessible to people worldwide. More news on other ebook versions coming soon!

For those of you who already have the book, I hope you are enjoying it and leave an Amazon review when you finish! 🙂

Please feel free to ask questions about the book below.

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Charting Change – Now Available on Kindle

Charting Change is Number OneI’m super excited to announce that my new book Charting Change is now available in English at various Amazon sites around the world (USA, UK, CA, AU, DE, FR, JP) with a traditional eBook coming soon!

Charting Change has been the number one new release on Amazon for at least “Business Management” and “Production & Operations” so far. It also was the #2 new release for “Organizational Change” and probably #1 too (but I think I missed getting a screenshot).

The book is currently available on Kindle and as a hardcover. Unfortunately the eBook is still delayed. I’m trying to stay on top of the publisher to get it out as quickly as possible, so stay tuned!

I will announce on my blog here when the eBook and Nook versions are available for those who don’t have a Kindle.

For those of you who already have the book, I hope you are enjoying it and leave an Amazon review when you finish! 🙂

Please feel free to ask questions about the book below.

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Why Change is Accelerating

Why Change is Accelerating

In previous articles I’ve spoken about how the pace of change is accelerating, and how for many people (and organizations) things are changing so fast that they feel overwhelmed and that things may be changing faster than some of us humans are able to absorb. I’ve spoken about how we are in the middle of a period of discontinuity thrust upon us by the rapid advances in computing and mobile connectivity that have put a supercomputer in everyone’s pocket and a target on most organizations’ backs.

Why are things changing so fast?

Is it that we’ve hit some sort of inflection point never achieved before in human history that is allowing us to innovate and displace the status quo faster than ever before?

Maybe.

Have we reached some sort of perfect storm where the innovation curve has gone vertical and the singularity will be here tomorrow?

Probably not.

So if we are not necessarily innovating faster than ever before or destined to reach the singularity tomorrow and become one with machines, then what is creating the feeling that things are changing more rapidly?

One word…

“Expectations”

Changing Customer Expectations

It feels as if the world is changing faster than ever before because the expectations of our customers and our expectations as customers are changing faster than ever before. Why?

Because we as consumers are seeing better customer experiences enabled by digital technologies in parts of our personal lives and more efficient and effective business processes in parts of our business lives, we are now expecting every organization (not just companies) and every aspect of that organization to deliver an efficient, effective experience and information exchange in whatever channel we choose, whenever we want to experience it.

This incredible change in expectations is being thrust upon all organizations simultaneously and threatening the very existence of entities that have existed for dozens or even hundreds of years. This discontinuity has created immense technical debt for organizations large and small to overcome and the only way for an incumbent organization to recover and to survive in this new digital age will be to undergo a complete digital transformation.

This doesn’t mean creating a digital strategy to address one part of the organization or a single constituency, but a path to a complete transformation that brings digital approaches to both every part of the organization and its operations, but also to all of its constituencies, at the same time. This means re-imagining every system, every policy, every procedure, and every process as a digital native organization looking to enter and disrupt your industry might, and then make a plan for transforming yourself. This will require IMMENSE amounts of change, and is no small task given the 70% change failure rate, but it is the key to your organization’s survival.

The problem is that the organizational change thought leadership status quo isn’t up to the task of planning and executing the scope and scale of change required for existing organizations to survive the digital evolution underway. A new set of tools is needed. My new book Charting Change and the accompanying Change Planning Toolkit™ were designed to inspire a change revolution to free people from the tyranny of the blank word document and poorly planned change efforts.

Why the Pace of Change is Accelerating

Economics 101

Because the challenge we face is not a static one. Organizations that focus on catching up to where the customer is today and wedging their efforts into existing budget constraints are those that will find themselves falling further behind the curve of changing customer expectations.

No longer is it a victory to be seen by customers as ‘best in class’. No, now customers are expecting every organization to be ‘world class’. This means that increasingly customer satisfaction will be achieved only by providing one of the best experiences in the world. Talk about changing expectations!

And so given the time to develop new technology solutions, you should be aiming not to incrementally improve your current experience to get closer to the leaders in your industry, but instead investing in a solution that will anticipate what the best customer experience allowed by technology 12-18 months from now and start building that instead.

It’s Economics 101 all over again. In today’s reality, as most organizations seek to move up the customer experience supply curve, the customer experience demand curve is constantly shifting outward, leading your share of the market to wither and die unless you make the strategic investment required to actually shift your customer experience (CX) supply curve outward as well.

I’ve tried to capture the scenario in the figure above titled ‘Why the Pace of Change is Accelerating’. Most organizations when they see at Time0 that their level of customer experience is below Customer Expectations0 they invest in projects to increase their CX Supply0 up the CX Supply curve to CX Supply1 thinking that they will then be meeting the customers’ level of expectations at Time1. But that’s not how it works in the digital world of today, as customer expectations are changing (shifting upward) just as fast as the technology used to create better customer experiences. So, organizations that invest in moving up the CX Supply curve to catch up with current customer expectations find themselves continuously falling short of future customer expectations.

Conclusion

The reason nearly every organization follows this approach of climbing the CX Supply curve to close the gap on customer expectations is usually financial. Most managers are forced (or compelled) to try and close the gap with existing budgetary resources and by creating a digital strategy as part of these efforts. Very few organizations have visionary leaders willing to invest in a digital transformation and fundamentally re-think the architecture and capabilities the organization needs to successfully compete in a digital age. Very few organizations see how to properly use technology to fulfill the mission of the organization and to exceed customer expectations, and as a result create a shift outwards in the CX Supply Curve itself.

Choosing not to digitally transform your organization, creates the space in the market for new digital native organizations to enter and establish a beachhead and attack the incumbents.

At the same time, as our world and organizations continue to digitize this will result in decreasing variable costs and increasing fixed costs, leading to increased consolidation in many fragmented industries. Those organizations bold enough to invest in shifting their customer experience supply curves outward by undergoing a true digital transformation will improve their position to be a buyer instead of a seller as this consolidation occurs. So the real question is…

If we are living in an era of survival of the digital fittest, which side of the digital evolution do you want to be on?

I hope you’ll join the change revolution, get your copy of Charting Change today and check out the Change Planning Toolkit™!

Image credit: Winggz.com

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Digital Transformation versus Digital Strategy

by Braden Kelley

In my last article, Digital Transformation Matters, we looked at the accelerating pace of change, the case for digital transformation, and our evolving interactions with technology. We also asked a simple question:

Are you ready to do business in a digital way for the digital age?

In our digital age all companies must change how they think, change how they interact with customers, partners, and suppliers, and change how the business works inside. Customer, partner, and supplier expectations have changed and a gap is opening between what they expect from their interaction with companies, and what those companies are currently able to deliver. Companies must immediately work to close this expectation gap or the entire business is at risk.

There are groups of digital natives out there that are extremely capable, have greater access to capital than ever before, and are very likely to re-imagine your business and your entire industry from the ground up if you don’t start making the necessary changes in your business to eliminate the opportunity.

If they attack, they will do it with a collection of digital strategies that utilize the power of the digital mindset to more efficiently and effectively utilize the available people, tools and technology, and to design better, more seamlessly interconnected and automated processes that can operate with only the occasional human intervention.

To defend your company’s very existence, you must start thinking like a technology company or go out of business. Part of that thinking is to fundamentally re-imagine how you structure and operate your business. You must look at your business and your industry in the same way that a digital native startup will if they seek to attack you and steal your market. To make this easier you can ask yourself five questions:

  1. If I were to build this business today, given everything that I know about the industry and its customers, and given all of the advances in people, process, technology and tools, how would I design it?
  2. From the customers’ perspective, where does the value come from?
  3. What structure and systems would deliver the maximum value with the minimum waste?
  4. What are the barriers to adoption and the obstacles to delight for my product(s) and/or service(s) and how will my design help potential customers overcome them?
  5. Where is the friction in my business that the latest usage methods of people, process, technology, and tools can help eliminate?

There are of course potentially other questions you may want to ask, but these five should get you most of the way to where you need to go in your initial strategic planning sessions. If you have other key questions that you think I’ve missed, please add them in the comments.

Digital Strategy vs. Digital Transformation

But how much appetite for going digital do you have?

This is where the question of digital strategy versus digital transformation comes in.

The two terms are often misused, in part by being used interchangeably when they are in fact two very different things.

A digital strategy is a strategy focused on utilizing digital technologies to better serve one particular group of people (customers, employees, partners, suppliers, etc.) or to serve the needs of one particular business group (HR, Finance, Marketing, Operations, etc.). The scope of a digital strategy can be quite narrow, such as using digital channels to market to consumers in a B2C company, or broader, such as re-imagining how marketing could be made more efficient through the use of digital tools like CRM, marketing automation, social media monitoring, etc. and hopefully become more effective at the same time.

Meanwhile, a digital transformation is an intensive process that begins by effectively building an entirely new organization from scratch utilizing:

  • All of the latest DIGITAL TECHNOLOGIES (artificial intelligence, predictive analytics, BPM, crowd computing, etc.)
  • The latest TOOLS (robotics, sensors, etc.)
  • The latest best practices and emerging next practices in PROCESS (continuous improvement, business architecture, lean startup, Business Process Management (BPM), crowd computing, and continuous innovation using a tool like The Eight I’s of Infinite Innovation™)
  • The optimal use of the other three to liberate the PEOPLE that work for you to spend less time on bureaucratic work and more time imagining the changes necessary to overcome barriers to adoption and obstacles to delight through better leadership methods, reward/recognition systems, physical spaces, collaboration and knowledge management systems, etc.

And ends with a plan for making the transformation from the old way of running the business to the new way.

The planning of the digital transformation is of course all done collaboratively on paper, whiteboards, and asynchronous electronic communication (hopefully not email, but more on that later). The goal is to think like a digital native, to think like a startup, to approach the idea of designing a company to utilize all of the advances in people, process, technology and tools to kill off your own company (at least as you know it). Because, if you don’t re-invent your company now and set yourself up with a new set of capabilities that enable you to continuously re-invent yourself as a company, then some venture capitalist is going to see an opportunity, find the right team of digital natives, and give them the necessary funding to enter your market and re-invent your entire industry for you.

It’s All About the Interfaces

People are fascinated with startups like Uber and with good reason because they have changed the lexicon and the way that we think about entire categories of products and services. Whether or not you believe there is causation, the fact remains that Yellow Cab in San Francisco filed for bankruptcy, and that Uber has placed an immense amount of pressure on taxi and airport limousine companies. But you should also be looking at what established technology companies like Amazon are doing because established technology companies are looking for growth and new markets too, and they might decide yours looks attractive, so you have to think like a technology company or go out of business.

One way that technology companies differ from non-technology companies is that they naturally focus on the interfaces, because that is where complex systems often fail. And so, if you are pursuing a digital strategy on your way to a digital transformation, you must first pick an interface, and then optimize the experience at that interface. It could be the interface between the company and customers, it could be the company to employee or employee to employee interface, or even the company to partner or company to supplier interface. Whatever interface you choose, your goal is to ultimately look at that interface with a fresh modern lens, and then utilize all of the latest (and emerging) approaches from a people, process, and technology perspective, to create a more efficient and more effective (aka better) experience.

The better job you do as an organization at removing friction at the interfaces, the more likely you are to become a partner of choice, supplier of choice, employer of choice, and/or a brand of choice. The value of becoming any or all of these could be the difference between the survival and growth of the organization, and a slow, agonizing death at the hands of a new, digital entrant or a digitizing incumbent that completes a digital transformation before your leadership team can agree it’s even necessary.

Architecting Your Organization for Change

One thing that both a digital strategy and a digital transformation have in common is that they will inflict change (in varying amounts) upon the organization, and with a more visual, collaborative approach to planning that change – like that enabled by the Change Planning Toolkit™ that I introduce in my new book Charting Change (available February 24, 2016) – you will increase your odds of beating the 70% change failure rate and of successfully achieving your digital change goals.

As you plan your change efforts it helps if you keep in mind the Five Keys to Successful Change™ and that you consider Architecting Your Organization for Change. Below you will see visualizations of both concepts and both are available as free downloads from the Change Planning Toolkit™, which is a collection of frameworks, worksheets, and other tools (including the Change Planning Canvas™).

Five Keys to Successful Change 550

Architecting the Organization for Change

Click to access these frameworks as scalable 11″x17″ PDF downloads

These two frameworks will help you take a more holistic view of organizational change wider than just change management or change leadership, and helps organizations:

  1. Visualize a new way to increase organizational agility
  2. Integrate changes in the marketplace and customer behavior into the strategy
  3. Create a new organizational architecture that integrates all five elements of organizational change
  4. Make project, behavior and communications planning and management a central component of your change efforts
  5. One thing that should immediately jump out as you look at the Architecting the Organization for Change framework is that The Five Keys to Successful Change™ are embedded it.

Change Maintenance forms the foundation of a change-centric organization, ensuring that the changes necessary to ensure a healthy firm continue to persist (or are “maintained”), while the top of the organizational pyramid is driven by a conscious strategy that evolves over time, informed by changes in customer behavior and changes in the marketplace.

The strategy of the firm then determines the appropriate business architecture, and as the organization’s strategy changes, the business architecture may also need to change. Any necessary changes in the architecture of the business (new or updated capabilities or competencies) then will lead to modifications to the portfolio of change initiatives and projects (and remember every project is a change effort). These projects and initiatives will consist of innovation initiatives and efforts to create positive changes in the operations of the business.

The change efforts and projects identified as necessary and invested in as part of the change portfolio then represent projects that impact the innovation and operations for the firm, and in order to successfully execute them in the short term includes change planning, management, and leadership, and in the longer term the maintenance of the required changes.

And for the change efforts and projects to be successful the organization must also focus on project planning and management, behavior planning and management, and communications planning and management. The related projects, behaviors, and communications must all be effectively planned and managed in a way that keeps all three in sync.

I hope you see that by increasing your focus on the Change Planning discipline and through increased use of tools like the Architecting the Organization for Change framework from the Change Planning Toolkit™, your business will be able to more collaboratively and visually plan change efforts as large as a digital transformation or as small as a digital strategy and to increase your organizational agility.

More on organizational agility soon, so stay tuned!

In the meantime, please get yourself a copy of Charting Change as a hardcover (ebook coming soon) and get your free downloads from the Change Planning Toolkit™ (or go ahead and purchase a license now).

Buy the Change Planning Toolkit™ NowNow you can buy the Change Planning Toolkit™ – Individual Bronze License – Advance Purchase Edition here on this web site before the book launches.

This article originally appeared on Linkedin

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Digital Transformation Matters

Digital Transformation Matters

The pace of change is accelerating.

Much has changed since we all started to dial in with our modems and connect to online services like America Online or Compuserve and eventually directly onto the Internet and the World Wide Web. Elements of our digital world continue to invade our language and our consciousness.

  • “Text me later.”
  • “Skype me tomorrow.”
  • “Google it.”
  • “#hashtag”
  • “rtofl”

Whether we like it or not the physical world and the digital world, and people are more likely to freak out about leaving their mobile phone at home than their wallet. Soon you won’t even need to carry a wallet (unless you want to). Canada stopped making pennies. In Sweden many businesses no longer take cash. Have you tried buying a drink on an airplane lately? (no cash accepted there either)

We now live in a digital age.

Not because technology is new, but because the way we react to technology and interact with it is different.

We’ve had technology for a while, but we used it primarily for performing calculations, and then for information storage and retrieval. But now, because the computer has moved from being a machine in a lab programmed with punch cards, to something nearly every one of us carries in our pocket or wears on our wrist, we’re beginning to form relationships with machines and more importantly, to use our machines to form, maintain, and even deepen, our human relationships.

So what does this mean for you as a business person?

It means that people like me have to drag you kicking and screaming away from the way you’ve always done business, away from the way you’ve always structured your enterprise, away from the ways you’ve facilitated communication among employees and between you and your customers, partners, and suppliers and towards a fundamentally different way of organizing and operating your business.

Are you ready to do business in a digital way for the digital age?

No?

Well, your market is large and attractive to me and my digital native friends. While you struggle under the weight of your legacy systems and the denial that you must change how you think, change how you interact with customers, change how your business works inside, maybe we will re-imagine your business and your entire industry from the ground up with a collection of digital strategies that utilize the power of the digital mindset to more efficiently and effectively utilize people, process and technology with some venture capital backing to challenge the incumbents and put them out of business. People are fascinated with startups like Uber and with good reason, but they should also be looking at what established technology companies like Amazon are doing because you’re either have to think like a technology company or go out of business.

In my next article on digital transformation we will circle back to discuss Uber in a bit more detail as we explore the difference between a digital strategy and a digital transformation. Because they are not the same and are vastly different in what they require to be successful. The one thing they both have in common is that they will inflict change (in varying amounts) upon the organization, and with a more visual, collaborative approach to planning that change – like that enabled by the Change Planning Toolkit™ that I introduce in my new book Charting Change – you will increase your odds of beating the 70% change failure rate and successfully achieving your digital change goals.

Stay tuned!

This article originally appeared on Linkedin

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Flaws in the Crawl Walk Run Methodology

The Flawed Crawl Walk Run Methodology

Many of you may have heard of the Crawl Walk Run project methodology. For those of you that haven’t the idea is that if a project team is trying to achieve something big, that sometimes you have to evolve your approach in stages rather than trying to make all the changes all at once. Many people are quite fond of this approach and can be heard repeating the mantra “Let’s crawl before we walk, let’s walk before we run.” Others have evolved Crawl Walk Run into Crawl Walk Run Fly. One of those groups is Edelman (a public relations firm), which in the following image proposes the following Crawl Walk Run Fly approach to social media:

Crawl Walk Run Fly Edelman

Ultimately the Crawl Walk Run Fly project approach looks back to the following Martin Luther King, Jr. quote for its inspiration and structure:

“If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do you have to keep moving forward.” – Martin Luther King, Jr.

But the flaw in the Crawl Walk Run project approach was exposed in a conversation I had yesterday with Stewart Pearson, a former client and friend, who happens to be the founder of Consilient Group, an emerging consulting group focused on helping clients undertake data-driven, insight-driven digital transformations to empower organizations to ignite sustainable growth and innovation.

Stewart was speaking about how some companies get stuck in this Crawl Walk Run mindset, and potentially jeopardize their future as a going concern. The truth is that Crawl Walk Run is only applicable to a small subset of projects, and definitely not appropriate for strategic projects because of the imminent danger of the competition transforming faster than you to better serve (and thus take) customers in the marketplace. Stewart captured this in the following way (slightly modified here by me):

“The danger of Crawl Walk Run is that while you’re busy crawling, a competitor is going to walk over you, right before another competitor runs over both of you.”

Then of course we can add in to this that if the customers wants and/or needs have changed, then simultaneously startups will not be crawling, or walking, or running, but FLYING by those incumbents engaged in a crawl, walk, or run strategies to maintain their relevance to the customers in the marketplace. But startups face their own danger in their FLY strategy, embodied in their lack of experience and infrastructure, and in many cases, their need to educate. This can cause startups to fly past the place where customers wants and needs have moved. So the flying strategy is not without risk.

Consulting clients or people inside your firm (depending on your context) may push back against this idea and again something like “Let’s crawl before we walk.” and it’s really seductive to give into this and tow the company line that achieving something is better than achieving nothing. But at the same time, the financial, human and capital resources that you might invest in implementing a broad crawl effort could potentially be more smartly implemented in a narrow run or fly effort off to the side that may then have the potential to be rolled out in a broad manner.

So, in situations where the company potentially faces more risk from moving slowly than from moving too fast, look for opportunities to craft a strategy that allows you to pick a small part of your business (possibly a single project or a single client) that you can begin building out a run strategy for (a strategy that leverages the existing experience and infrastructure of the organization) or a fly strategy (one that completely re-imagines your market approach).

The idea here being to prototype, test, learn, and then scale your transformative new market approach rather than gradually transforming your market approach in a series of phases. This is more like the approach we use in the innovation space, and has a lot of potential in helping to accelerate your ability to continuously transform your organization the maintain optimal value exchanges with your customers.

What do you think?

Do you think your organization could move away from the siren’s song of Crawl Walk Run, or are you stuck on all fours for the rest of your career with your existing client or employer?

This article originally was featured on Linkedin


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The Digital Innovation Talent Shortage

The Digital Innovation Talent ShortageI was watching our Seattle Seahawks lose to the Green Bay Packers on Sunday and was surprised to see a series of television ads air during the game from GE, not touting how great their products are, but why GE is a great place for software developers to come work.

Each 30 second advertisement will have cost GE nearly $700,000, meaning that GE probably spent $2 million last Sunday. First I’ll share the ads and then I’ll share my thoughts on their significance.

All three advertisements are in this single video from ad agency BBDO:

  • Advertisement #1 (Parents’ reaction to Owen taking a developer job at GE)
  • Advertisement #2 (Fellow students’ reaction to Owen taking a job with GE)
  • Advertisement #3 (Friends’ reaction to Owen taking a developer job with GE)

All three ads highlight the gap between most people’s industrial age thinking and our new digital reality, and close with the tagline:

“The digital company. That’s also an industrial company.”

A year ago, together with Linda Bernardi, a Chief Innovation Officer at IBM, the two of us wrote about this very subject in our article for the world’s most popular innovation web site, Innovation Excellence:

You’re Either a Technology Business or You’re Out of Business

The sad truth is that most companies don’t realize this. GE, based on this ad campaign, obviously does. I won’t re-visit all of the points in the article, but instead I encourage you to read it, and for now I’ll focus on additional thoughts emerging since then. One thing I did after publishing this article with Linda, was ask the following question at my previous employer:

“Are we a technology company that happens to serve customers in the health insurance industry, or are we a health insurance company with an IT department?”

Does anyone want to guess what the majority of people answered?

The healthcare industry is undergoing a period of incredible change, but they are not the only ones. Technology is transforming market and customer expectations faster than executives and employees can transform their thinking. Customers expect more, they demand more, in every industry, and this is opening the door both for new entrants and for existing competitors to rearrange the market share picture, IF they take strategic actions focused on transforming into a more digital, more collaborative, more innovative organization. The questions every organization should be asking themselves include:

  1. How can we modify the architecture of our organization to cope with the increasing pace of change?
  2. How can we increase our organizational agility?
  3. How can we retain the talent we need to power a true digital transformation?
  4. How can we attract the talent we need to fill the gaps in our skills base to empower a successful digital transformation and to drive success in the marketplace as a social business?

I see GE’s ad campaign as the canary in the coal mine, an example of a large company awakening to one of the major challenges every organization faces in continuing to stay relevant (and profitable) in a rapidly changing, digital, always connected world.

The fact is that almost every organization needs more digital innovation talent…

And you know what?

There is a shortage…

Keeping up with the pace of technological change is hard enough. Conducting a digital transformation, and becoming a true social business is even harder, but INCREDIBLY important to your current and future success. The companies that realize this and commit to a coordinated digital transformation, embracing the fact that they are a technology company serving a particular industry and a certain set of customers will have a better chance of attracting the scarce talent they need to complete the work to emerge out the other side. And you MUST do this before every other company out there piles on and causes an incredibly bloody fight for the scarce digital innovation talent out there, and the market share that is at risk.

I will be writing more about how to increase your organizational agility and to achieve a successful digital transformation in the coming months in the run up to the publishing of my second book by Palgrave Macmillan on organizational change and the Change Planning Toolkit™.

Are you going to be like GE and admit that you need to change the way you think of yourself as an organization and change the perception potential employees have of you in the marketplace?

Are you ready to become a social business?

Do you have what you need to achieve a successful digital transformation?

Are you ready to admit that you need help getting there?

Image credit: news-leader.com


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Measuring Organizational Agility – The Triple T Metric v1.0

Measuring Organizational Agility - The Triple T MetricThere is an increasing amount of chatter and confusion out there around what organizational agility is and feeling that it must be important to organizational success.

But, before we discuss organizational agility, it is important to define what we mean by the term.

BusinessDictionary.com has a decent definition:

“The capability of a company to rapidly change or adapt in response to changes in the market. A high degree of organizational agility can help a company to react successfully to the emergence of new competitors, the development of new industry-changing technologies, or sudden shifts in overall market conditions.”

Usually people begin speaking about organizational agility and its importance to the success of the organization when they speak about the increasing pace of change, and the challenge the organization faces in keeping up.

Because of this, one of the key measures of organizational agility you may want to consider using, I like to call the Triple T Metric:

Time
to
Transform

The Triple T Metric is a measure of how long it takes an organization to make a transformation. But to measure your progress on the Triple T Metric over time, you must define it and measure it in a consistent manner. So, if a transformation is like a trip from Point A to Point B, we must define Point A and Point B.

  • Point A = the point in time at which the organization recognizes a change is needed away from the steady state
  • Point B = the point in time at which the organization successfully arrives at the new steady state

You’ll notice that Point A doesn’t start at the point at which people AGREE that a change is needed and AGREE to make it, but at the point the organization RECOGNIZES a change is needed. This is because there is great opportunity to increase your organizational agility by increasing the speed at which the organization moves from recognizing the need for change, to agreeing to change, to planning the change, to executing the change.

This is just v1.0 of our discussion of the Triple T Metric, to introduce the concept. We’ll get into more detail in a future post.

All of these transitions must be included because organizational agility is ultimately about how quickly the organization can successfully plan, lead, and execute (manage and maintain) a change effort, increasing your organizational agility requires that you increase both your change capability and your change capacity.

How fast can your organization change?

If you want to learn how to change faster, and make your organization more agile, grab a copy of Charting Change and the supporting materials for book buyers!


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Think Like a Tech Company or Go Out of Business

Think Like a Tech Company or Go Out of Business

by Braden Kelley and Linda Bernardi

Even in 2014, there are business sectors who feel they are not ‘tech companies’. News flash: Whether you are a consumer products company, an insurance company, a hotel, or a pharmaceutical company, your business is a technology business. Why?

Technology is the link between any business and its customers. To say technology is not core to your business strategy, means you think customers are not the key to your business success. So, your business is a technology business whether you want it to be or not.

Today technology is how you market and sell your products, make your business more efficient, and most importantly, how you stay connected to your customers. Some companies mistake the importance of technology to mean that they need to open a twitter account and monitor social media, put in an ERP and CRM system, and revamp their web site. But the importance of technology in today’s business environment is more than that.

ERP and CRM are common tools, a requirement to remain competitive, and while social media and the internet are important to sales and marketing success, they are becoming yesterday’s news as customers develop deeper connections to their mobile devices. If you aren’t on their devices and interacting in a meaningful way with them there in real-time, you won’t stay connected to them in the long run.

Let’s look at the impact on a few different industries whose members tend not to see themselves as technology companies:

1. Fortune 100 consumer product goods (CPG) companies
2. Hotel Chains
3. Big Box Retailers

1. Fortune 100 CPG companies typically manufacture large quantities of consistent products and have visually pleasing (static) web pages for consumers. But they don’t use technology well enough to detect what the market wants before it knows it, often fail to personalize or customize products to customer needs, and usually lack the online networks that could help connect other customer product needs together into new potential product ideas that the company could co-create with their customers. Often connection means post mortem analytics on data collected in the past, or, analyzing previous customer interactions with static web pages. Creating authentic customer connections requires online and mobile technology these companies usually don’t possess. I don’t mean apps (which often are pretty much the same as a website), but new physical/online/mobile engagement models that inspire customers to stay connected to the company (and each other) in a dynamic, evolving community. Rethinking is needed here. The customer is not just a buyer but an influencer. If CPG companies want to sell that next bottle of $300 facial cream, they better consider delighting, and not just marketing to, their customer base.

2. AirBnB has proven to be a major disruptive force in the hotel and hospitality business, grabbing a massive foothold in a market that the Homeaway.com member companies created and should have dominated. Resistance to AirBnB is massive and lawsuits are abundant, but for a moment let’s go beyond the hype and explore the angst of traditional hotels. AirBnB created a highly connected, effective community of property owners and property renters. This bi-directional ecosystem can only thrive if they are both happy and satisfied. To experience what they’ve created, first go to a traditional hotel website (pictures of room, building, lobby) and then go to AirBnB and browse the hundreds of customer experiences their property owners offer. On the hotel site you’ll see they’ve created the mechanics of paying to rent a hotel room, while on AirBnB you’ll see that they’ve created both an ecosystem and an experience.

3. Big box retailers have done a poor job of seeing themselves as technology companies capable of fending off challenges from online-only retailers. Target made the mistake of seeing themselves as a retailer, not a technology business, and so they outsourced their ecommerce to Amazon in the beginning, only to regret doing so because Amazon was able to learn which 20% of their inventory drove 80% of their profits, and when.

Meanwhile, Costco and Walmart, despite being two of the most successful retailers in the world, have struggled to find success online because they can’t get beyond their brick and mortar heritage to see themselves as a technology business with an integrated online/offline ecosystem. Seriously, it is 2014, do we still need to get our Costco circulars in the mail? Nothing has changed about Costco’s interaction with its customers. Walmart exacerbated the disconnection between the two sides of their business by creating a separate online division and exiling it to Silicon Valley. Costco sells different products online than offline. The results of both of these approaches have been far from stellar.

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Technology Lowers Barriers to Entry

In the history of the world, it has never been easier to start and scale a business to a global footprint, not in a matter of decades or years, but in months. And it is not just the other companies in your industry and technology-driven startups that you have to worry about if you choose not to view yourself as a technology company and move as fast as they do. You have to worry about competition from established technology players like Google and Amazon too, because one day they (or people that used to work for them) might decide that your market is attractive enough to enter and come disrupt your industry. For example, Amazon has become a book publisher and a financial services company.

Technology Enables Experiences

Technology enables the creation of customer experiences. I am going to choose my insurance company based on my experience. At the end of the day if all prices are comparable, then how the businesses you interact with make you feel, and the connections you’ve built with them will matter more. Without an emphasis on using technology to make your business a social business, you will find your company displaced by others that do. You must lead your industry in identifying opportunities to use technology to get closer to your customers. The future of business will be all about delighting customers and making their experience more personal.

Technology is not just a tool, but central to everything you do in today’s always on, always connected digital age.

Here are ten ways that technology can help you become a more social business:

  1. Building Connections
  2. Developing Networks
  3. Global Sensing and Prediction
  4. Sharing Recommendations
  5. Creating Experiences
  6. Personalization
  7. Customization
  8. Co-Creation
  9. Crowdsourcing
  10. Open Innovation

To give you an example of what things will look like in the future, the forward thinking health insurance company will leverage the mobile device for virtual ID cards, drug interaction warnings, personal triage, mobile care, wellness, cost sharing calculations, FSA/HSA administration, diagnostics, and more.

Conclusion

In conclusion, no matter what business you are in, it is very dangerous not to see technology as a competitive differentiator and a core driver of your business. Instead, you must constantly look at how you can become more of a technology company in order to enable deeper customer connections and more meaningful experiences. Today if you don’t connect with, understand, delight and start predicting your customer’s needs/wants, you may not thrive in your industry and your competition and new entrants who do embrace technology will replace you.

This article is brought to you by Linda Bernardi and Braden Kelley. Collectively, we have over 30 years of experience working with large, global multi-disciplinary enterprises. We write this with care and passion as we want your enterprises to succeed. We would love to hear your thoughts.


Guest Collaborator:

Linda BernardiLinda Bernardi is a Technology Strategist, Investor, and Founder & CEO at StraTerra Partners, The Bernardi Leadership Institute and a Strategic Advisor at Cloudant Inc. She is also the Author of Provoke, Why the Global Culture of Disruption is the Only Hope for Innovation. Learn more here about Linda’s work on disrupting large enterprise analytics.

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