A year in review - 2016
In Q1, a number of people participated in a quick survey we did around transformation work looking back on 2016. Thank you for that! Not only based on the 4 questions, but equally much our experiences and learnings, here are some observations.
So some basics first. 73% of all of you who participated are in management/leadership roles. 26% hold roles as specifically responsible for transformational work, digital and/or business transformation depending on what definition is used within that org (which distinction worth thinking about, but that’s for another time). Talking percentage, let us be clear up front that we had 58 responses so have that in mind. We’ve looked at this through clustering words and responses (text analysis) qualitatively, hence this is based on our subjective interpretations, opinions and suggestions (and would love to hear more of yours).
What have you been doing?
A lot of interesting answers to the question around what behaviors that were more prevalent in your organization throughout 2016. This says nothing about whether it’s a change from before. Here are 7 categories (no prioritized order) we found when clustering similar/associated words and phrases:
Exploring and experimenting, for example learning by doing, failing faster, experimenting. Structure and collaboration for example cross functional collaboration, building strong structures by being responsive. Discussing and getting on board for example confusion, meetings, urgently speaking of opportunities/effects of changes. Data and analytics for example analyzing behaviors, use of data, use of insights. End customer for example asking what a customer would say, product development starting with end customer, customer obsession. Goal orientation for example business controlling, improved goal orientation/progress, quality focus. Product/service development for example software development, focusing on the right things when developing, new products for other platforms.
Leadership and management is categorized under Structure and collaboration. When it comes to prevalent behaviors, leadership and how it is practiced - what’s visible and concrete - is one of the most important things if you ask us and one that we almost without exception must include in any program. It is, however, very seldom highlighted in any requests or kick-offs. This is something we believe will evolve and mature by way of the increase in "culture" focus. Can leadership be anything but a culture thing? And can the culture thing ever not have a strong focus on the leadership issue? Another one we’d like to highlight is exploring and experimenting in relation to employee training/education that we touch on a few paragraphs down.
So, if making a distinction, where did you invest your efforts?
34.5% in Organizational development, 25.9% in Business development, 13.8% in Technology, 12.1% in Innovation capacity and 8.6% of you put down Employee training/education. You can see the open answers in the legend, and they all represent one answer each.
You can also see to what extent management/leadership was considered focusing on digital/business transformation during 2016 (1-6).
So, what’s behind the different categories where you put your focus? Well, looking at some of the keywords or phrases that stood out for those respective responses paint a more vivid picture of what dialogues take place and what’s on the agenda and priority lists. Organizational development includes for example frustration, collaboration, equality, digitalization, fundamental values, future strategy, category disruption, coordination, smart, simple & open, customer focus, leadership development and more. How was management focused on digital/business transformation (1-6)? 3.6 on average.
Within Technology we find disruption, agile, customer orientation, holistic design, norm criticism, digital strategy, imagery, digitalisation, evolve or die! How was management focused on digital/business transformation (1-6)? 4.75 on average.
Innovation capacity relates to simplified, proptech, customer obsession, user experience, automation, agile development, inbound maketing, digital transformation, polarization and more. How was management focused on digital/business transformation (1-6)? 4,71 on average.
With Employee training/education we read strategy in a digital world, filter bubbles, lifelong learning, Adobe marketing cloud, growth mindset, adjustments. How was management focused on digital/business transformation (1-6)? 5.2 on average.
What do we see?
These keywords and phrases are pretty relevant under the respective categories. A few might seem a bit misplaced for the categorical, semantically inclined reader, and one pop up everywhere. Unsurprisingly the ”digital” word, which says everything and nothing.
It's complex. It tends to grow complex. There’s an overwhelming feeling of everything coming at you from all directions and departments. Everybody is running their own transformation or digitalization efforts (it might even be that role specific incentives drives you to, but few have incentives to drive simplification...). It becomes massive. Fragmented. Not necessarily wrong, just not really right. A lack of a common picture of how it all relates to one another. It’s not uncommon to have been engaged in what can be described as therapeutic digitalization discussions, for lack of a better term, for years. It’s like the 5 blind men and the elephant story:
"The parable of the blind men and an elephant originated in ancient Indian subcontinent, from where it has widely diffused. It is a story of a group of blind men, who have never come across an elephant before, learn and conceptualize what the elephant is like by touching it. Each blind man feels a different part of the elephant body, but only one part, such as the side or the tusk. They then describe the elephant based on their partial experience and their descriptions are in complete disagreement on what an elephant is"
- Wikipedia
If you map all of these five categories in a simplified way, it could look like this. Technology is an external force demanding that we develop (with and by it) and hence equally much a tool. It’s the fire under our asses, the means to better solutions and a force often utilized better by new entrants in many categories. But the thing can never be about technology.
Business development is, of course, a discipline and activity that (should) continually (stand still and you die) figure out new solutions and offers to user problems that can be financially viable. Simply put. There’s nothing slowing down here, and there’s nothing getting simpler. You might argue that, really, this is what it’s about for most organizations. Business development is where all efforts are canalized.
If we want to ramp up our business development, one way is to create another effort such as innovation or R&D or maybe a digitalization group. That can be be the right thing to do, but can also be a knee jerk decision that adds something without deleting something else. Putting together and testing more diverse teams and tending to the innovation capacity aspect is another way of doing it. Adding new perspectives, methods and types of focus questions to the existing business development activities.
Employee training/education clearly relates to development. But perhaps we are blinded by the fact that it’s always been about courses and training classes though? If you were to look differently on education, it could actually be where you find your budget for innovation capacity and increased focus on business development. If a 2 month facilitated innovation sprint, digital development program or whatever term you might use is actually equally much a training program and educational opportunity...well, you’re killing 2 flies with one stone and making it a day to day activities, which we know is one of the characteristics of change/development initiatives that succeed.
Organizational development is the holistic and overarching framework for all of the above. It’s needed in order to design a coherent, longer term, program or process. As we all know, very little sustainable change (development) will come out of short term efforts. 18 months or more is simply something we have to accept.
OK, we’ve simplified it quite drastically. And that’s the point.
Our 2 cents
Regardless if we use the term digital transformation or business transformation, for the vast majority of companies business development is what it’s about. This is a not so insignificant thing to highlight, because a lot of frustration is introduced into an organization when digital, innovation and change are positioned as the most important kids on the block. It might serve us better to flip it and down-play them.
We're in a situation where - and this is very clear based on our experience - we’ve long under performed and had too little focus on both innovation capacity and organizational development. Now, they're positioned in a way that often creates insecurity, frustration and even fear. Add to that, they play roles that can appear disconnected from what we all know and accept: business development. That’s a great foundation for finding excuses for not doing, and the root of never ending discussions.
When things move fast, complexity increases and insecurity builds up, simplicity and familiarity is more important than ever. That’s a learning we’d like to share: What is the thing in simple terms? What does the future scenario look like? What does incremental progress look like, and not just final success, as success is often explained in grand visions far too abstract and future? It's everyday that we have to take small strides of progress. Can we design for small steps? How small can we make them while still being real progress? How easy can we make them feel?
Your 2 cents?
You’re all very busy people, but we would love to hear from you, what you consider a good learning you’ve made with regards to driving transformation projects/processes?











