Leading with Technology! How digital technology is undermining our traditional notions of leadership and what organisations need to do about it. by Simon Waller
Over the last few years, Digital technology has dramatically changed the way information and communication flows through organisations. At the same time, the workforce has become more transient. As a result, leadership based on position and authority has been significantly undermined. This white paper looks at the impact of technology on our traditional view of leadership and what leaders need to do to respond to this challenge. Although there is a temptation for leaders to push back on technology use, this could be setting organisations up for longer term challenges.
About the author Simon is one of Australia s leading thinkers on digital technology. Through his work, he has influenced individuals and organisations across Australia to engage with emerging digital technologies in new, more efficient ways. Simon s unique perspective is built on his experience in corporate roles in business improvement, scenario planning and strategy development. Simon holds a Bachelor of Commerce and Master of Business Leadership and has post graduate qualifications in scenario planning and futures thinking. Simon s strength is understanding business and focusing on the practical application of technology. He inspires people to think about the way their business works and how they can use technology to improve personal and business effectiveness. You can find out more about Simon at simonwaller.com.au.
The end of positional leadership The Digital Age has arrived. This is a turning point in human history. Economic activity is now dominated by the flow of information rather than the flow of material goods. The Information Age has been made possible by increasingly sophisticated technologies that have left no industry and no job untouched. For much of the last two centuries since the Industrial Revolution, the idea of leadership has been linked to positional power and authority. Those at the top of the organisational hierarchy became the leadership team largely by virtue of their position, rather than any specific leadership abilities. This is because leadership is ultimately a relationship of influence whereby one person can engage the support of another towards a course of action. Leadership and the ability to influence others is fundamentally derived from the ability to see a bigger picture. It requires the ability to simultaneously consider the needs of today and tomorrow and also work fluidly across people and process. At the intersection of these we find four factors of leadership and influence. The first of these factors is Awareness. Leaders need to have clarity about what is going on and where the organisation is going. Awareness is the foundation of leadership as it is only when you have a vision of somewhere to go that others can follow you. The second factor is Approach. If awareness is about having somewhere to go, approach is about having a way to get there. It is the planning and preparation that gives our leadership credibility. The third factor is Engagement. This is about making sure we have the right people onboard. Good engagement is about having compassion towards others and communicating in a way that the vision becomes a shared one. The final factor is Focus. This is how we choose to spend our time and it is what ultimately determines our destination. From the perspective of influence, it is about walking the talk. simonwaller.com.au Leading with Technology White Paper 1
The ability to influence others has always relied heavily on access to information, with which to formulate a desired course of action, and the ability to communicate effectively. Within traditional organisation structures, both information and communication channels were directed up the hierarchy. This meant those at the top were uniquely positioned to influence others. But digital technology has had a profound impact on information and communication flows in organisations. Information that was once in short supply now overflows our inboxes. Communication that was once tightly controlled now flows increasingly outside of designated channels. This has had a dramatic and often detrimental effect on how traditional leadership has operated and created a number of challenges for organisational leaders. simonwaller.com.au Leading with Technology White Paper 2
The challenges of leadership in a digital age Although digital technology offers so much opportunity to organisational leaders, most of these opportunities have been largely untapped. This is because the traits we associate with leadership such as clarity, compassion, capability and commitment have been undermined by rapid dissemination of digital technology in the workplace. Information has become overwhelming Information has always been at the heart of leadership. It provides the basis of a leader's awareness and sense-making and intrinsically linked to communication and engagement. As a result, leaders are generally at the centre of information flows. Unfortunately, the ease with which information flows through digital channels means that many leaders are now dealing with information overload and their traditional systems are now struggling to keep up. As a result, many leaders are working longer hours, not to manage their workload, but to manage their information load. Working with constant distraction This struggle is compounded by a growing level of digitally-generated noise and distraction in our operating environment. Leaders are surrounded by technology that is constantly vying for their attention. Our laptops, tablets and smartphones send incessant updates that dramatically reduce our ability to focus on priority activities. As the economist Herbert Simon points out, What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among simonwaller.com.au Leading with Technology White Paper 3
the overabundance of information sources that might consume it 1. Our focus is suffering at the hands of technology and the situation only seems to be getting worse. Influence is being lost Perhaps more concerning for many leaders is that the influence that was associated with positional leadership is steadily being lost. Influence relies heavily on having access to right information and the ability to communicate effectively. In an age of digital business, it is getting harder to filter all the available information for what is important. Information and communication is increasingly flowing outside the traditional channels (such as email) making it harder for positional leaders to remain informed. The diffusion of communication and information sharing also means that it is harder than ever before for leaders to get cut through' with their messages. Like organisational leaders, followers are also dealing with information overwhelm and constant digital distraction. In this environment, traditional forms of communication, such as, information pinned to a noticeboard or broadcast emails, risk being drowned out from both internal and external digital noise. In short, leaders can no longer rely on traditional communication channels and the authority of their position as their sole source of influence. Growing uncertainty Although information overwhelm, digital distraction and eroded influence are all concerns for the modern leader, perhaps the biggest concern is the environment in which they are now operating. In the 1990s the US Military coined the term VUCA; Volatility, Uncertainty, Complexity and Ambiguity, to describe the operating environment of military campaigns. These ideas now neatly summarise the operating environment of most businesses in the 21st century. According to research by Richard Foster, author of Creative Destruction, the average life of corporations in the S&P 500 has dropped from 61 years in 1958 to 25 years in 1980 and just 18 years in 20122. One of the key drivers of the volatility and uncertainty businesses are currently experiencing is digital technology and there is currently no end in sight. Moore s Law predicts a doubling in computing power, every 12-18 months, for the foreseeable future. It is fuelling a shift from linear to logarithmic change, that is, making the operating environment less predictable than ever before. Strong leadership is perhaps more important than ever. Yet for many leaders, digital technology has resulted in growing apprehension about both where the organisation is going and how to lead it effectively. 1 H A Simon, Designing Organizations for an Information-Rich World, in Martin Greenberger (Ed.), Computers, Communication, and the Public Interest, Baltimore, The Johns Hopkins Press, 1971, pp. 37-72. 2 http://www.innosight.com/innovation-resources/strategy-innovation/upload/creative-destruction-whips-throughcorporate-america_final2012.pdf simonwaller.com.au Leading with Technology White Paper 4
From being led by technology to leading with technology The above challenges are directly correlated to each of the four factors of leadership detailed earlier. Distraction has a negative impact on our focus, overwhelm reduces the effectiveness of our approach, noise limits our ability to communicate and engage clearly, and uncertainty occurs when we lack awareness. In essence, our poor relationship with technology is more than just a frustration, it is actively and consistently undermining our leadership ability. Our tendency to view these challenges as frustrations rather than systemic problems with leadership means that to date, our response to them has been wholly inadequate. In the most part, rather than deal with these challenges, our strategy has been one of technology avoidance. Although avoidance might seem like a logical response, the reality is that this is just creating a bigger, long-term problem. The reality is that we will never have less technology in organisations that we have right now. A strategy of avoidance only means that leaders will face greater levels of distraction, overwhelm, noise and uncertainty in the future. The other problem with avoidance is that it wholly ignores the opportunities that digital technology offers. The growth of digital technology is not an accident, it is a direct result of the value generating opportunities that it offers. Instead of seeing the challenges of digital technology, organisational leaders need to start seeing the opportunities, both in terms of creating more responsive and agile organisations and also improving organisational leadership. When we are led by technology we generally suffer from the challenges because we don t have the required knowledge and skills to harness its potential. When we move to simonwaller.com.au Leading with Technology White Paper 5
leading with technology we start applying digital tools in a way that amplifies our leadership. Just as the poor use of technology can be a source of constant distraction, the good use of technology can improve our ability to execute. Just as the poor use of technology can lead to overwhelm, the good use of technology can increase our capacity to manage information and ultimately improve the quality of our work. Just as the poor use of technology can lead to increased noise and reduced influence, the good use of technology can facilitate more effective conversations. And just as the poor use of technology can lead to uncertainty, the good use of technology can improve awareness and clarity. In a sense, the problem is also the solution. We don t need our leaders to stop using technology we just need them to stop using it badly. The value that leaders with technology brings to organisations extends well beyond personal effectiveness. By virtue of their influence, leaders have the opportunity to create impact that extends well beyond their own role. Leaders need to set a standard for how technology is used in an organisation and research suggests that one of the single, most important factors in the success of digital projects is the visible engagement of organisational leaders 3. As technology continues to reshape the way organisations function, it is becoming increasingly important to have a positive digital culture that reflects a 21st century operating environment. Leadership must ultimately start with self-leadership and it is time for organisations to start actively developing technology-enabled leaders. 3 Boyd, S. (2015) The Sticking Point with Social Collaboration Tools via http://www.cmswire.com/cms/socialbusiness/the-sticking-point-with-social-collaboration-tools-028785.php retrieved 16 April 2015 simonwaller.com.au Leading with Technology White Paper 6
Developing technology-enabled leaders Like any other aspect of leadership, leading with technology doesn t occur naturally. It takes learning, insight, training, support and a certain amount of hard work. Generally, leaders go through six stages of development on their way to effectively leading with technology. These six stages: Digital Deniers, Digital Tinkerers, Digital Labourers, Digital Adopters, Digital Masters and Digital Leaders are represented in the above ladder. The bottom half of the ladder shows the stages where individuals are being led by technology. The top half of the ladder shows the shift to leading with technology. In the bottom half, Digital Deniers often feel threatened by technology and as a result, actively avoid using it when possible. Digital Tinkerers try to use the tools that are provided to them, but a lack of training and support means their attempts at technology use often result in frustration. Digital Labours are more engaged with their technology and are often proactive in seeking out new digital tools. Unfortunately a lack of structure in their approach means that the additional technology often results in overwhelm rather than impact. In all three of these stages, technology has a negative, or at best, neutral effect on leadership influence. It is only when leaders commit to building their understanding and choose and apply technology more thoughtfully that a positive impact is created. In the top half, we have Digital Adopters who start to use technology to proactively manage their information needs. In doing so, they reduce overwhelm and become more aware and informed. Digital Masters build the skills to be able to work effectively with their digital tools from anywhere. This flexibility provides opportunities for greater engagement, and subsequently, influence. Finally, at the top of the ladder, we have the Digital Leaders. For Digital Leaders, influence is multiplied through increased awareness, the ability to set a direction with clarity and improved communication and collaboration with followers. Ultimately, the power of digital leaders lies in the ability to multiply their impact by enabling improved technology use throughout the organisation. simonwaller.com.au Leading with Technology White Paper 7
Summary Technology is a challenge and an opportunity Our more traditional views of leadership are clearly under threat. Leadership by virtue of position and authority has less relevance in a world where information and communication can flow as freely across organisations as it can up and down the hierarchy. In fact, for many leaders, technology has become a burden that is actively undermining their ability to communicate and influence effectively. It is little wonder that the approach of many leaders have taken, is to try and push back against the encroachment of technology into both their professional and personal lives. Unfortunately, this strategy is doomed to fail. We will never have less technology than we have right now and no person can stop or even slow the rate of technology change occurring in our operating environment. We need a new approach, one that helps leaders harness the power of technology to amplify their leadership rather than diminish it. This requires a fundamental rethink of both--what constitutes leadership in a digital age and the training and support leaders will require to maintain their effectiveness. The operating environment for most organisations is increasing in both volatility and uncertainty, much of this driven by the power of digital technology. The long term viability of our organisations is therefore dependent on developing a technologyenabled culture. Through improved digital knowledge and understanding, the organisation's workforce will be better equipped to identify threats and opportunities in the environment and to respond effectively. simonwaller.com.au Leading with Technology White Paper 8
Digital Leadership Programs Simon runs both one-to-one and group-based training programs to develop digital skills for organisational leaders. Develop your Digital Intelligence Mentoring Develop your Digital Intelligence is a oneto-one mentoring program for busy executives. This is a hands-on program that imparts both the knowledge and practical skills to develop technology-enabled leaders. This approach is best suited to time poor CEOs and senior leaders who require flexibility and a personalised approach. Leading with Technology training program Leading with Technology is a small groupbased program for high performers and leadership teams. The program provides both the understanding and the practical skills to get your leaders using their technology effectively. simonwaller.com.au Leading with Technology White Paper 9