Leading through transformation

Isn't just the most exciting time to be in business? There isn't an industry nor a company that is not being affected by some form of disruption. We're in the midst of the fourth Industrial Revolution and I'm excited! 

Most of the disruption is being driven by a proliferation of devices, an abundance of connectivity (even if it's not always cheap or reliable) and cloud economics mean that the wackiest of ideas can be trialled quickly, inexpensively and the best ideas spread virally for the same reasons. 

I am privileged to work with customers across Australia on a day-to-day basis and I get to see the impact of that disruption on IT departments, business decision makers and the very business of doing business every single day. In fact, my job affords me the opportunity to work with customers who dig raw materials out of the ground, those who transport the raw materials and those who turn those raw materials into product. Some of the customers my team and I work with are the entire supply chain.

This opportunity is rare and my vantage point has helped me build a perspective that I think would be valuable to share. I'd like to share what I have learned in discussing Digital Transformation with the leaders of our customers and what I believe to be the levers of success in leading through this exciting time.

 Transformation starts in the boardroom.

If you have been in the IT realm (customer or supplier), you have heard the term many times - "this is a case of the tail wagging the dog". I have worked with many IT leaders who struggle to drive traction around transformation initiatives because the executive decision makers don't understand the need to change or if they do, can't see a clear path to change.

More often than not, the impetus to change is driven by a healthy balance between competitive pressure and seeking business growth opportunities. Companies that push their suppliers and vendors to articulate value in terms of their P&L, balance sheets and future growth investments do well. Companies that push their vendors, suppliers and partners to help them articulate the value of doing specific projects in terms of growth opportunities, market share and customer experience do exceptionally well. Most executives will care deeply about these three things.

Innovation is not a technical thing. It's a mindset to business and must start in the boardroom.

Clear Vision is important. Clear Communication is Critical.

I love Simon Sinek's "Start with Why". It's the leadership tool that I have found to be the most impactful in driving meaningful change in organisations. In fact, just today I met with a large retail customer who's why is proudly displayed on the biggest wall in their new boardroom. In big letters. And high contrast. It's that important.

Setting the transformation agenda is not easy, but compared to corralling the rest of the business and getting mid-management and end-users bought into the change, it's relatively straightforward. Constant, clear communication is critical to ensuring that change is adopted in the right way, for the right reasons and has the right impact.

I have seen this play out inside of Microsoft over the past 3 years, since Satya Nadella took over as CEO. Despite the obvious changes that you see in the valuation of the company (i.e.in the eyes of our shareholders), customer sentiment, the sentiment of the media and the effectiveness of the product strategy, I remain fascinated by Satya's Leadership's ability to truly transform our culture. Our vision and mission are clear and we hear about it all the time. Ever seen a Satya presentation where he doesn't specifically reference our mission - "to empower every person and every organisation on the planet to achieve more"?

We get the message clearly about our own "why" every day. From Satya, his leadership and our local leaders. Every day. Without this critical ingredient, our own transformation would not be nearly as successful.

The businesses my team and I work with, that drive the most meaningful or impactful transformation, communicate clearly, frequently and start with why.

 The IT department as enablers

We're seeing many business adopt software development-like business practices, such as the Agile methodology, to drive quicker turn-around on projects, cut through bureaucracy and deliver results that can be measured quickly.

Most IT leaders have these skills and other change-management skills that business will find very valuable to lead the change management in a transformation. The companies that recognise and tap into this are the ones that skill quickly, pivot rapidly and drive sustainable outcomes that make them extremely innovative, in the eyes of their customers and shareholders.

Consequently, IT should have a seat in the boardroom; transformation starts their after all. Some of the companies that my team and I work closely with, don't have a seat directly in the boardroom. Assuming that IT reports through the CFO or COO, IT leaders who lead their companies' transformation invest time with their leadership to ensure that their perspective is heard, their skills are put to good use and that they are an integral part of driving business transformation, leveraging digital.

IT leaders who lead their board and shareholders to their "why", directly or indirectly are most successful in enabling business transformation.

Summary

It's such an exciting time for this industry. Augmented and virtual reality, drones, bots and under-water datacentres. All the stuff we grew up reading in comic books and watching at the bioscope, all the stuff that we still get excited about is becoming real-life as we know it. The leaders that help the board frame up and articulate their "why" and are enablers of the ongoing communication of that why to the broader business tend to work for the companies driving the most impactful digital transformation in their industries.