Going Digital: More Than Technological Capabilities About Change and Transformation

Transcription

1 Going Digital: More Than Technological Capabilities About Change and Transformation SMA 21 SEPTEMBER 2017 PETER ROSSEEL Director MCR, Spin-off KULeuven Visiting Professor University of

2 MCR is a spin-off company of the University of Leuven (Belgium) Model for strategy implementation, business transformation, leadership and learning Working across organisations and country cultures: 300 organisations worldwide Profit sector, semi government, government

3 Just naming a few organisations we work with INTERNATIONAL BELGIUM British American Tobacco ( in 65 countries) Mozambique Leaf Tobacco Company /Universal Leaf University of the Free State, South Africa Pick npay, South Africa William Grant & Sons, UK (Glenfiddich and Hendrick s Gin) Solar - Coca Cola, Brazil JCC, Brazil (building and managing shopping malls) ING Nationale Nederlanden Poland and The Netherlands Izico, The Netherlands (inventors of the Bicky Burger) Boehringer-Ingelheim (Pharma) - Taiwan General Mills UK (Pastries) EMC 2 ( (ICT hardware & software) Lion Brewery Sri Lanka Sodexo Europe Mead Johnson Nutrition Europe Ipsen Pharma - France COMPASS GROUP Dataflow (Ausy Belux) STACI Belgium KBC Bank ING Bank BNP Parisbas Fortis AEXIS Umicor Promoplan City of Geel, City of Beringen and City of Turnhout Home care center Woonzorgnet Dijleland Fund for professional diseases (FOD) Fund for accidents at work (FOD) Psychiatric centre O.L.V. Brugge Province of Vlaams-Brabant, West-Vlaanderen &Oost-Vlaanderen University Hospitals of Ghent and Brussels University College Leuven Limburg (UCLL)

4 Black White

5 TO HELP YOU REMEMBER Adapted from The Jacksons Blame it on the Boogie

6 TO HELP YOU REMEMBER Don t blame it on your strategy Don t blame it on your processes Don t blame it on your culture Blame it on your leadership Adapted from The Jacksons Blame it on the Boogie

7 The world we live in The 4th industrial revolution (Industry 4.0) Agility innovation learning

8 Digitalization In general: "In an efficient way making use of the technology available to increase customer experience." In organisations - rational: "In an efficient way making use of the technology available to transform your organisation in such a way that it increases customer experience. Rational In organisations - relational: "In an efficient way making use of the technology available to transform your organisation in such a way that it increases employee engagement and customer experience." Relational Agility innovation learning

9 The (R)evolution of technology S M A C SOCIAL MOBILE ANALYTICS CLOUD 76% of business are using social media for business objectives and to increase ROI this year. 72% of enterprises cited improved productivity as a driving factor in adoption of smart mobile devices. 75% of executives at large companies said they are working to increase their company s use of analytics. 92% of businesses are completely satisfied with their cloud based services and planning to increase their usage in 2016.

10 The (R)evolution of technology Opportunities FANG technologies

11 The (R)evolution of technology

12 The (R)evolution of technology

13 New Technologies and Digital Transformation Right (Big) data SMAC/FANG Technologies (Social, Mobile, Analytics, Cloud) Information Insights Action

14 The challenges for organisations today Competitive landscape Digitalization Customer Behaviour changing [Employee behaviour] Common theme Industry 4.0 Digitalization

15 On change and transformation A clear and shared burning platform as the basis for transformation.

16 70% of change and transformation efforst fail. Why is this and and how to tackle the issues? McKinsey, 201, 3

17 On the difference between transformation and change A butterfly is a transformation not a better caterpillar

18 Change vs transformation Example From A Global FMCG Player in the drinks industry February 2015 End-to-end innovation gate process

19 Change vs transformation Example From A Global FMCG Player in the drinks industry February 2015 End-to-end innovation gate process Marketing Supply Chain Commercial

20 New Technologies Organisational Culture SMAC Technologies Intelligent Process Automation (IPA) People Agile: flexible, collaborative, cocreation, engagement, network, autonomy, power to decide and act, instant feedback CHANGE TRANSFORMATION Company that uses digital Digital company

21 What is Agile/Agility? High flexibility Strong backbone

22 Being disrupted Disrupt

23 New Technologies and Digital Transformation Right (Big) data SMAC Technologies Information Insights 30-40% 10-15%

24 INSIGHTS & IMPACT VISION & STRATEGY STRUCTURE PROCESSES LEADERSHIP PEOPLE (KNOWLEDGE + SKILLS) CULTURE New Technologies and Digital Transformation DIGITAL TRANSFORMATION CEO/BOARD BUY-IN Components of your house DIGITAL TECHNOLOGIES Infrastructure Data/Information Security Applications

25 Point of view of the customer vs expertise Strategy, Structure, Process and system

26 Looking at where the world is going on 3 levels Macro level Society at large Meso level Organisational level Micro level Individual level

27 Looking at where the world is going on 3 levels Macro level Society at large Meso level Organisational level Micro level Individual level

28 Old and new power models OLD POWER A dual system NEW POWER MODELS

29 Old vs new power models It is in our genes New powermodels, at their best, reinforce the human instinct to cooperate (rather than compete) by rewarding those who share their own ideas, spread those of others, or build on existing ideas to make them better. (Heimans&Timms, 2014)

30 Looking at where the world is going on 3 levels Macro level Society at large Meso level Organisational level Micro level Individual level

31 Main objective of any organisation Creating commitment for results RELATIONAL COMPONENT RATIONAL COMPONENT

32 What really matters VISION VISION LEADERSHIP LEADERSHIP CULTURE CULTURE

33 Most change and transformation programs fail and for predictable reasons REASONS FOR FAILURE 30% 70% % of efforts failing to achieve target impact Other obstacles Inadequate resources or budget 14% 14% RATIONAL Management behavior does not support change Employee resistance to change 33% 39% RELATIONAL McKinsey, 2013,

34 What drives successful transformation? VISION LEADERSHIP CULTURE THEORY OF BUSINESS THEORY OF CHANGE THEORY OF EXECUTION

35 What drives successful transformation? VISION LEADERSHIP CULTURE THEORY OF BUSINESS THEORY OF CHANGE THEORY OF EXECUTION

36 CREATING COMMITMENT FOR RESULTS FROM STRATEGY TO EXECUTION Organisation strategy Execution

37 CREATING COMMITMENT FOR RESULTS FROM STRATEGY TO EXECUTION Organisation strategy Strategic Leadership Agenda (SLA) C Personal Leadership Agenda Campaign Plan 95% of all organisations do not have a culture of engagement Execution

38 Digitalization, innovation, Customer experience: people and organisational structure The extend to which people have control over the situation, determines their well-being and hence their willingness and ability to innovate and change. How to structure our organisations for engagement?

39 (Digital) innovation, people and organisational structure Traditionally organised companies poorly handle the technological discontinuities inherent in a faster moving world. (C. Christensen, Harvard, 2008)

40 (Digital) innovation, people and organisational structure Intermediate phase: A DUAL MODEL Hierarchical operating model Network operating model

41 Transformation Team Hierarchical Structure Chief Digital Officer (CDO)/ Chief Transformation Officer (CTO) Strategy & Planning Digital, IT, Data & insights team Innovation & Customer Experience Transformation Program Management

42 Transformation Team Network Structure Strategy & Planning Digital, IT, Data & Insights team Chief Digital Officer/ Chief Transformation Officer Transformation Programme Management Innovation & Customer Experience

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44 What drives successful transformation? VISION LEADERSHIP CULTURE THEORY OF BUSINESS THEORY OF CHANGE THEORY OF EXECUTION

45 In a Nutshell : Leading Change and Transformation Your organisation s Theory of business 1. A systematic and methodological way of working towards intentional change with a complex character, ( ) Theory of execution 2. ( ) that puts demands on the consistency and cohesion of the interventions Theory of change 3. With an appreciative perspective of the people involved and their interests.

46 Looking at where the world is going on 3 levels Macro level Society at large Meso level Organisational level Micro level Individual level

47 Most change and transformation programs fail and for predictable reasons REASONS FOR FAILURE 30% 70% % of efforts failing to achieve target impact Other obstacles Inadequate resources or budget 14% 14% RATIONAL Management behavior does not support change Employee resistance to change 33% 39% RELATIONAL McKinsey, 2013,

48 LEADERSHIP MANAGING CHANGE OR TRANSFORMATION

49 Building Blocks of Digital Transformation Agile Organisation Digital Technology Preferred Future New Business models Strong Leadership Customer Experience Culture of engagement Customer, employee & partner co-creation Connectivity Copyright MCR and Peter Rosseel Big Right Data

50 Sure! And (digital) technology?

51 And (digital) technology? Sure! But don t forget Digital technology drives change but Transformation is driven by people

52 Thank you for your Peter Rosseel