Measuring and Managing Digital Transformation: Toward the Quantified Organisation CeBIT Social Business Arena, Hannover, March 2015

@LeeBryant

Our core team has pioneered the use of social technology inside large firms since 2002, and we now work with corporate clients to assist in developing new forms of organisational structure and practice

to help create agile, responsive and adaptable 21st Century firms.

POST*SHIFT

introductions…

How does digital transformation impact on the organisation?

Can we find a better way to manage ‘change’ in the org?

Big data + human sensors: towards the Quantified Org

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1.Digital Transformation is not just about technology or customer

engagement. It also requires the reform of corporate structures to

create more agile, responsive organisations that can operate in fast-changing, volatile markets.

digital transformation is changing everything…‣ customer engagement‣ products & services‣ enterprise IT‣ business models‣the nature of the firm

changing well-established org design templates is hard

social platforms alone will not change the firm

many orgs are reaching a plateau of social tool adoption

“Communications toolsdon't get socially interestinguntil they gettechnologically boring.”Clay Shirky

but that is when real change becomes possible

social / collaborative tools make new structures possible

2.We need to unlearn our approach

to ‘change’. Bureaucratic structures are getting in the way of value creation. We need to equip people with tools that let

them constantly improve the way they work through small changes.

so how can we equip managers to operate differently?

relax … this is not another change management project!

crash diets (like change programmes) rarely sustain

‘quantified self’ continual improvement works better

but how can we manage and measure transformation?

3.Big data plus the human sensor

network allow us to test the effectiveness of org structures in close to real-time. We should use this to guide agile transformation and ensure we create the new capabilities needed to succeed.

agile transformation is about small changes, loosely joined

this needs ‘sense & respond’ not ‘predict & control’

there is no perfect ‘target operating model’ end-point

Wider Market

but we need to prepare for changing market dynamics

ecosystem

organisation

Marketcomposition

Customerbehaviour

Technology

Products

‣ Cambrian explosion of startups ‣ Software is eating the world ‣ Emergence of high scale markets ‣ Speed to scale is crucial

‣ Platforms and ecosystems ‣ Experience versus features ‣ Collaborative consumption ‣ Everything as a service

‣ Empowered customers ‣ Trust is the new brand ‣ Mass-customisation ‣ The attention economy

‣ Faster diffusion of innovation ‣ Ubiquitous collaboration ‣ Connectivity in everything ‣ Designing for hackability

and in some areas we will need new organisational tissue

Internal Realm

LiminalSpaces

Ecosystem

Internal Teams

External teams

new models: ‣ IoT, connected devices,

data and platforms ‣ everything as a service ‣ customer co-creation

and open innovation ‣ startup incubation and

ecosystem development

Structure

•Decentralised •Resilient •Adaptive & Emergent •Networked •Service-oriented

Culture

•Open •Customer-centric • Innovative •Experience-led •Passion & purpose

Practice

•Agile & Iterative •Data-driven •Collaborative •Task-focused •Podular

so how do we define and develop these new capabilities?

“As a sales organisation we needto offer an integrated experience(not front-ends to a set ofseparate silos working apart)to grow key account value”

and how can we test them in close-to-real-time ?

we need better organisational health measures

human sensor networks and self-aware organisations

big data: towards the quantified org, not quantified serfs

people-powered organisational transformation

putting small-scale change on the weekly agenda

in summary: towards the quantified organisation

in summary: towards the quantified organisation

An outline for capability-driven digital transformation: 1. Understand the impact of changing market dynamics 2. What organisational capabilities do these require? 3. Express capabilities as ‘agile user stories’ for the org 4. Define what success looks like and find relevant measures 5. Give each manager, each team oversight of their structure 6. Separate ‘what’ and ‘how’ in targets - let teams decide ‘how’ 7. Align E2.0 and change efforts to develop these capabilities 8. Involve everyone in organisational self-awareness / change 9. Develop your guiding coalition and align on purpose 10. Do -> observe -> think; sense and respond; rinse and repeat

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POST*SHIFT

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