Human Capital Growth Webinar: Digital leadership growing leaders for the digital age

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Digital Leadership
Growing Leaders for the Digital Age

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Presenter
Shreya Sarkar-Barney, Ph.D.
CEO & Founder
Human Capital Growth

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Leadership
Excellence
Talent
Management
Excellence
US India
We help organizations achieve better outcomes through talent using
science, analytics, and empathy.
Drive business impact
through timely talent
actions
Evidence-based solutions
for measurable and
sustained improvements
in leadership

How is leading in the digital age
different than leading in general?
4

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Agenda
 The uniqueness of the digital era and demands on leadership
 Leadership competencies of digital leaders
 Traits and characteristics of digital leaders
 Strategies for developing digital leaders
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Singles Day
11.11
$25.3
billion $6.79
billion
2017
Alibaba’s ecommerce sale for
one-day only
US Black Friday &
Cyber Monday sale
2016
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The Most Valuable Companies are Digital
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The Challenge
70% of leaders
lack the skills to
transform their
organization to be
digitally enabled.
Digitally mature
companies are
26% more
profitable than their
industry competitors.
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Source: http://ide.mit.edu/news-blog/blog/digitally-mature-firms-are-26-more-profitable-their-peers

Insights from you
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Which of the following best describes your company’s digital
transformation maturity?
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[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30 35 40
Skeptics: Just beginning the digital journey
Adopters: Starting to invest in digital skills and infrastructure
Collaborators: Driving digital innovation by collaborating internally
and externally
Differentiators: Using advanced innovations such as real-time
analytics to drive customer obsession

How proficient are your leaders at transforming the business model
to digital?
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[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30 35 40 45
Highly proficient
Somewhat proficient
Beginning to develop proficiency
Lacking proficiency

Which of these factors poses the biggest challenge in the
digitization efforts of your organization?
12
[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30 35
Insufficient budget to undertake a digitization
project
Lack of digital skills within the organization
Leaders fail to see the significance of a digital
business model
Legacy infrastructure and antiquated technologies
pose major barriers to transformation

Topics of greatest interest
13
[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30 35 40
Competencies of a digital leader
Developing digital leaders
Screening for digital leadership
The traits and characteristics of digital leaders

Methodology
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Research Methodology
 Archival leadership assessment
 Interviews with digital leaders
 Industry reports
 Scientific research
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Interviews
Amazon
Cisco
Cognizant Technologies
Eaton
General Mills
Honda
HP
Honeywell
Sun Microsystems
Tesla
Tata Sons
Yahoo
 Leaders responsible for envisioning and deploying
 Experience in multiple organizations
 Traditional brick and mortar companies and technology firms
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Is leading in the digital age different
than other times?
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Every Company is a Technology Company
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Digital Leaders Create Value in New Ways
 Not just about doing the
same thing faster, better,
cheaper
 Taking a traditional business
and doing it differently
 Successful digital leaders
disrupt the marketplace
Value created in one place
taken away from an other
Amazon | Border
Apple | Motorola
Netflix | Blockbuster
WhatsApp | Telecom
Uber | Taxis
Airbnb | Hotels
Paypal | Banks
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Digital Age: Changing Demands on Leaders
Traditional Jobs
Job Demands
 Execution excellence
 Global mindset
 Process improvement
 Quality assurance
 Service excellence
Digital Era Jobs
Job Demands
 Build ecosystems
 Innovate
 Architect
 User experience
 Customer centric
Leadership Requirements
 Plan and manage
 Hold others accountable
 Delegate
 Fill open positions; train and engage employees
 Ensure compliance
Leadership Requirements
 Agility/adaptability
 Conflict management
 Talent management
 Entrepreneurial
 Customer centricity
 Create a culture of innovation
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Digital Leadership
Competencies
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Evidence-based Leadership Competencies
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Studies show that effective leaders excel in four key areas
OPERATIONS
 Planning and tracking progress
 Managing Performance
 Ensuring execution excellence
PEOPLE
 Influencing and persuading
 Motivating and engaging
 Leading and developing teams
CHANGE
 Exercising business acumen
 Leading innovation
 Leading Change
STRATEGY
 Envision and leading strategically
 Exercising financial acumen
 Leading with Customer insight

Competencies for the Digital Era
Strategic focus for digital leaders
 Lean on exponential technologies and tools to create the future
 Make good bets on innovation
 Risk taking
 Not relying on past and current successes
 Customer centricity
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STRATEGY
 Envision and leading strategically
 Exercising financial acumen
 Leading with Customer insight

Strategy
Amazon
1994 investment in online
store for books grew to the
second largest ecommerce
platform in 2017
Making good bets
Nokia
Nokia dominated the
mobile-phone industry in
2007 but failed to foresee
the transition to touch
screen smartphones
Imprisoned by past success
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“It's really hard to
design products
by focus groups. A
lot of times,
people don't
know what they
want until you
show it to them.”
Steve Jobs
Customer Centricity
Listen to your customers
but don’t expect them to
invent for you

Operational focus for digital leaders
 Lean operations, doing more with less
 Navigate organizational structures to
achieve speed and agility
 Experimentation, fail fast – fail early
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OPERATIONS
 Planning and tracking progress
 Managing Performance
 Ensuring execution excellence

Operations
Mature Technology Firm
Multiple stage-gates processes
delayed product launch, lack of
funding prevented building out
functionality to make the
product competitive.
27

Apple
Six weeks before the launch of the first iPhone Steve
Jobs demanded that the screen be replaced with
scratch-proof glass.
Required an empty-glass factory with hundred of
engineers who can experiment and cut millions of
screens.
Apple engineers flew to China and a company that
successfully delivered on the mandate.
ECOSYSTEM EXPERIMENTATION SPEED & AGILITY
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Change focus for digital leaders
 Mandate to innovate
 Lead change while still successful
 Look beyond functional boundaries for
new ideas
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CHANGE
 Exercising business acumen
 Leading innovation
 Leading Change

Change Leadership
Large Manufacturing Firm
“Change in regulations will likely
threaten our highly profitable
business 3 to 5 years from now.
Difficult to convince the organization
to change when things are going
great.”
Success blinds the perceived threat
Leading Hardware Technology Firm
When our CEO realized he had
underestimated the significance of
the cloud business, made a strategic
acquisitions even though it required
paying a premium.
Recovering from mistakes quickly
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People focus for digital leaders
 Influence and create alignment to move
in a new direction
 Hands on leader
 Manage conflict
 Get the right skills onboard
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PEOPLE
 Influencing and persuading
 Motivating and engaging
 Leading and developing teams

People Leadership
Shared Services Team Leader
I could see that the estimates
were unrealistic. The leadership
team underestimated the risks
and the likely delays. It took a
number of conversations to get
them to see the full picture.
Influencing on a strategic choice
Mid-size Manufacturing Firm
Creative talent don’t want to
work 9-5 jobs. Nor do they do
well in structured work places.
The design team must be run
differently.
Hiring, managing, and retaining talent with
specialized skills
32

Does digital leadership require
unique traits and abilities?
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Important Leader Traits and Behaviors
Traits and Attributes of Effective Leaders
Traits
 High energy–level
 Tolerance for stress
 Emotional maturity
 Integrity
 Conscientiousness
 Self-confidence
 Extraversion
 Agreeableness
Other attributes
 Intelligence/complex thinkers
 Metacognition
 Motivation
 Skills: technical, conceptual, interpersonal
 Values
 Interests
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Traits of Digital Leaders
 Curious
 Courageous
 Creative
 Empathy
 Resilient
 Risk Taker
 Ability to gain the trust of others
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“Make it safe to take risks”
TRUST COMPONENTS
Leader wants the best for others
Leader operates with a high level of integrity
Leader has the technical and interpersonal skills needed to do the work
18%
Trust and Risk Taking
Across 132 scientific studies
Trust in leader was positively
linked to risk taking
Source: Colquitt, J. A., Scott, B. A., & LePine, J. A. (2007). Trust, Trustworthiness, and Trust Propensity: A Meta-Analytic Test of Their Unique Relationships With Risk Taking and Job Performance. Journal
of Applied Psychology, 92(4), 909-927.
36

Approaches to developing
digital leaders
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Leaders and their Paths to Success
Traditional
IBM
3M
Pepsi
GE
Accenture
Goldman Sachs
P&G
Digital
Microsoft
Facebook
Google
Alibaba
Amazon
Tesla
Apple
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College drop-out
No prior leadership
experience
Founders
Business idea sparked by
personal experiences
College degree, some
MBAs
Risen through the ranks
Cross functional
experience

Themes Related to Growing Digital Leaders
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Culture
Organizational
Structure
Opportunities
& Experiences

Culture
“Guiding principles”
 Focus on innovation
 Focus on the customer and solving the customer’s problems
 Culture of risk taking
 Tolerance for failure and learning from mistakes
 Embracing and productivity channeling conflict
 No tolerance for not invented here syndrome
 Not becoming too comfortable with success
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Amazon’s Leadership Principles
1. Customer Obsession
2. Ownership
3. Invent and Simplify
4. Are Right, A Lot
5. Hire and Develop the Best
6. Insist on the Highest Standards
7. Think Big
8. Bias for Action
9. Frugality
10.Learn and Be Curious
11.Earn Trust
12.Dive Deep
13.Have Backbone; Disagree and Commit
14.Deliver Results
Source: https://www.amazon.com/p/feature/p34qgjcv93n37yd
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Organizations Structure
“How work happens”
 Lean, no hierarchies
 Ability to quickly transmit learning
 Separation of innovation arm from rest of the organization
 Increased M&A activity
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Opportunities & Experiences
 Critical job experiences
 Taking a career detour to develop specific skills
 Have a clear mandate to go digital
 Hackathons, think tanks, war rooms
 Allow for personal initiative
 Participation in conferences to meet thought leaders
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Role of HR
Talent Match Maker
Match talent to unique expand a team’s capabilities
Opportunity Scout
Locate learning opportunities on contemporary topics
Experience Designers
Build culture by organically structuring experiences
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Conclusion
 Businesses that embrace digitization are more successful
 Requires focus on innovation, risk taking, and learning
 Job demands of digital leaders are different
 Digital leaders are curious, resilient, and trustworthy
 The right culture of crucial to develop digital leaders
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How HCG can help advance your digital
transformation?
• Development of digital leadership competency model
• Culture assessment
• Leadership assessments
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Thank You!
For more information contact
Shreya Sarkar-Barney, Ph.D.
www.linkedin.com/company/human-capital-growth
@hcgtm
info@humancapitalgrowth.com
www.Humancapitalgrowth.com
Follow us
shreya@humanpitalgrowth.com
@sarkarbarney
https://www.linkedin.com/in/sarkarbarney/

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