Leadership in a transformation economy

1. RYAN MCMANUS
Leadership for the
Transformation
Economy
Presented By:

2. Welcome!
Topics
EVOLUTION OF
THE REVOLUTION
EMERGENT
STRATEGY
LEADERSHIP
FOR THE
TRANSFORMATION
ECONOMY
WEB 1 —> WEB 4

3. Three things
o Automation vs. transformation
o You can’t win in the transformation economy with
playbooks from the analog economy
3
o We’re just getting started

4. WHAT IS “DIGITAL”?

5. THE NUMBERS
Source: McManus and Leroy, http://theventurelab.blogspot.com/2016/07/value-creation-and-corporate-survival.html
5

6. HOW WE GOT TO NOW
Digitization
Recombinant Innovation
Digital Transformation
Digital Disruption
Source: McManus and Leroy, http://theventurelab.blogspot.com/2016/07/value-creation-and-corporate-
survival.html

7. Evolution of the Revolution
Source: McManus https://blog.nacdonline.org/posts/digital-past-present-future
Digitization
Focus
Primary
Enabling Tech
Primary
Sectors
Impacted
Sample Phase
Leaders
Content
Web
Mobile
Advertising
Publishing
AOL
Google
Yahoo!
Services
eCommerce
Web Services
Cloud
Software
Travel
Retail
Financial Svcs
Amazon
Dell
Expedia
SalesForce
Human
Identity Mgmt
Social Media
Advertising
Media
Facebook
Twitter
Instagram
Pinterest
Physical
Products and
Machines
Internet of Things
Sensors
3D Printing
Robotics
CPG
Logistics
Industrials
Electronics
Manufacturing
Agriculture
Medical Device
GE
Tesla
Autonomous
Solutions
Uber
Complex
Analysis and
Prediction
Analytics
Machine Learning
All
Alphabet
Amazon
Nvidia
Microsoft
Biology
Genome Editing
Health
Medicine
Pharma
Crispr
23andme
Kernel
What’s Next?
5G
ESG
??
?
?
Netflix
Spotify
AR/VR
Metaverse Blockchain
SaaS
Cyber
Chatbots
Quantum
Computing
Airbnb
Azure Dell
Media
Education
Edge Computing
7

8. Transformation Automation
A common mistake

9. 9
It’s hard to navigate the transformation economy with tools from the analog era
Corporations
Startups
Investors
Incubators
Accelerators
Ecosystems
Ideas / Investment Options
Corporations
Investors
Ideas / Investment
Options
Analog
Economy
Digital
Economy

10. Which is better? Why?
10
Source: uber

11. Outcomes > Products
11
Who Wants Your Product?

12. What’s now: web 2
12
Source: Ant Financial, Amazon, Apple, Nubank, Sanofi, Einride, Deere, Ethos

13. 13
5G: sample use cases
Source: Forbes, Accenture
• 30% overall productivity gains including up-to 90% in defect detection
Manufacturing
• more remote post-acute care, home-based models, with savings greater
than 30% and driving better patient outcomes
Healthcare
• immersive interactive brand experiences, powering high-res video, 3D, 360-
degree and augmented reality experiences
Retail
• Reduce the severity of non-impaired accidents by up to 80%, potentially
saving $3.6 billion in collision costs and reducing traffic by 25%
Transportation
o 4G consumer scale  5G industrial scale
o $13.1 Trillion dollars of global
economic output
o Mission-critical workloads

14. “Generate a black and white photo of a 1920’s gangster taking a selfie”
“Generate a sailboat knitted out of blue yarn”
14
AI Evolution: Dall-E 2 + AlphaFold
50+ year problem…solved!

15. 15
o Experimental  Mission Critical
o Pattern recognition  Predictive
o Narrow Tasks/Domain Specific  Intelligent
Systems
o Cloud enables, AI differentiates. AI Leaders can
attribute 30% of revenue to AI capabilities
Golden Age of AI

16. Making Sustainability Sustainable
16
$94trn
$275trn
Global ESG AUM: 10% -- > 33%
Scope 3: 11.4x
2002: 43 @ $230m
1h 2021: $64bn

17. ESG Talent Forecast: 200-800m
60%
believe their
company will
reach its
environmental
goals
94%
of respondents
say more training
on sustainability
skills would help
them build trust
in companies’
sustainability
commitments
65%
of employees feel
that the little
investment in
sustainability
training obstructs
companies from
reaching their
sustainability goals
67%
ESG Talent Expectations
17
Source: Fortune, SalesForce
of employees
wish they had
more
sustainability-
related
qualifications

18. Web 1.0
Information
Economy
Web 3.0
Ownership
Economy
Web 4.0
Autonomous
Economy
Web 2.0
Platform Economy
What’s Next

19. Already here: web 3
19

20. Already here: web 4
20
Source: Neuralink, Optios

21. It’s Huge!
It’s Urgent!
It’s Exciting!
It’s the
Future!
So, what’s the
problem?
21

22. Just a few things are changing…
o What we sell
o How we power
o How we transact
o How we hire, retain, and reward
o How we invest
o How we compete
o How we win
22

23. o Discovery Driven Digital
o Client Centricity -> Outcomes
o New Metrics
o Enterprise Investment Agility
23
Strategy for the Transformation Economy

24. LET’S
GET
TO
WORK
Green
Automation
How bold is your vision?
Sustainable
Digital Products and Services
Net Positive
New Business Models

25. Evolved Leadership Identity
25
Source: Rotman Management, Verizon
FROM: This is [not] how we do things around here
TO: Emergent strategy which helps us keep pace.
FROM: I need to have all the answers.
TO: My experience will help me distill the right questions.
FROM: Change and uncertainty make my job difficult.
TO: Managing uncertainty and complexity is my job.

26. New Leadership Mindset
CATALYSTS
CONNECTORS
BUILDERS
EXPLORERS
Evolve themselves and
others by being open,
curious, and driving a
learning orientation
Create high engagement
through connecting with
others across organizations
and ideas, empathizing and
bringing people with them
Experiment,
challenge norms,
create new businesses,
self-starters
Shift conversations, engage
diverse perspectives, and
support cross-boundary
collaboration
1 2
3
4
Transformation
Economy
Leadership
Source: Duke CE

27. Empowerment
Future of Work: Top Talent Knows
What Good Looks Like
Confidence
What is our strategy to lead in a changing world? Are we
building a company I want to be part of? What new
investments are we making?
Measure & Celebrate
What are we measuring? How will I be rewarded?
Empowerment
How are you making me more productive and helping me to
grow and feel safe? How does my work make an impact on the
company and the world?
Engagement
How can I contribute to the evolving strategy?
Mission Mapping
Alignment of corporate mission to personal purpose:
outcomes!
A
B
C
D
E

28. Science, Technology & Innovation Committees
28
0
20
40
60
80
100
120
140
160
Fortune 500 Additional Board Committees
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
F500 with S,T&I
Committee Market
Cap - Average
S&P 500 NYSE Composite NASDAQ Composite
One year performance as of July 28, 2021 Five year performance as of July 28, 2021
Market Cap Performance Comparison
Source: https://blog.nacdonline.org/posts/special-committee-transformational-success

29. Culture Transformation
29
Amazing people building
NextGen Lifesaving Products

30. Questions Boards can ask Management
o Do we have an automation strategy or a transformation strategy? Do we understand the difference? How
does our strategy integrate digital transformation and ESG?
o Do we understand target customer outcomes?
o Who is responsible for helping the organization to learn, experiment and look ahead? How are they
incentivized? What resources have been made available?
o How should we govern science, technology and innovation? Do we have the right skills on our board?
30

31. Big Challenges
Meta-Marcro
Global economy but local,
populist politics
Blurring of Government –
Business boundaries
Decreasing trust in institutions
01
02
03
Markets
Geopolitical risks, regulation,
trade and hedges (40%)
Recession, labor shortages,
interest rates (30%)
ESG transparency
Internet deglobalization
Personalization and privacy
End of easy money
Strategy
Transient competitive
advantage
Digital transformation as table
stakes
Innovation premium (tech and
innov: 25%)
Ecosystem priority
Atomization
75% of S&P 500 drop from
index by 2027
Talent
Reskilling of +50% of workers
Flexible labor arrangements
ESG markers
Learning for jobs that don’t
exist yet
Workplace diversity across all
dimensions
Multipolar world and
diffusion of power
04
Workforce recalibration
05
D
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32. THE END
ryan-mcmanus.com