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Leadership	Challenges		
(and	Opportunities)	of		
Digital	Transformation
Dion	Hinchcliffe	
Constellation	Research,	VP	&	Principal	Analyst	
ZDNet	Columnist	
Executive	Fellow,	Tuck	School	of	Business	Center	for	Digital	Strategies	
Twitter:	@dhinchcliffe	
dion@constellationr.com
@dhinchcliffe#digitaltransformation
Growth of Technology and Human Success: Hand in Hand
1 2
Technology Growing and Change Fastest in History Which Overall Has Been Very Good for Us
Human Population over Time
Emerging Technology Rate of Change At All Time High
@dhinchcliffe#digitaltransformation
Insight: Linear Thinking Does
Not Prepare us for Exponential Times
More Change in Work and Business in the Next Ten Years
Than	the	Last	50	Combined
@dhinchcliffe#digitaltransformation
1 2Insight: The Value of Digital is Driven by
Power Laws That Pay Off Big Downstream
But Most Organizations Only Change
Linearly, or Logarithmically at Best
The Payoff of Power Laws 

(Like Moore’s Law) Over Time
Understanding Exponential Tech Change Helps Us Prepare
Enabling	Us	to	Anticipate	the	Nearly	Unlimited	Value	Potential
@dhinchcliffe#digitaltransformation
And Yet Most Companies Are Far Behind
(cc) 2018 Constellation Research. | Creative Commons. Some Rights Reserved. | @dhinchcliffe
Constellation Research
Result: Technology is Wiping Out Companies Faster Than Ever
6
@dhinchcliffe#digitaltransformation
The digital winners must adapt in all new ways
All	Organizations	Are	Being	Impacted	By	Digital
•The current life span of a Fortune
500 company is 15 years + falling
•The challenges of adapting to
today’s operating environment:
- Rapid and disruptive technology innovation
- Dramatic increase in expectations by
customers and the marketplace
- Gap between digital high performers and
laggards growing faster than ever before
- New business models blurring industry
boundaries
@dhinchcliffe#digitaltransformation
@dhinchcliffe#digitaltransformation
Organizations Will Need a New “Digital Metabolism”
• That	Can	Change	About	as	Fast	as	the	World	Does
@dhinchcliffe#digitaltransformation
What Are Most of Us Trying to Do?
@dhinchcliffe#digitaltransformation
What Are the Key Enablers of Digital Change?
• Continuous	Learning	
• Rapid	Experimentation	
• Tolerance	for	“Eccentric	Behavior”	
• Digital	native	thinking	
• High	EQ	
• Comfort	with	Uncertainty	
• Unwavering	Support	from	Leadership	
• Transdisciplinary	
• Data-driven	<—	Almost	ready
@dhinchcliffe#digitaltransformation
Key Insight: Moving from Push to Pull Based Models for Tech Change
Implication:	Digital	Transformation	Must	Be	Decentralized	and	Broadly	Empowered
@dhinchcliffe#digitaltransformation
Source:	MIT	Digital	Transformation	Survey
It Takes Engaged
Leadership to
Overcome Key
Barriers to
Digital
Transformation.
That’s
Leadership from
Anywhere…
@dhinchcliffe#digitaltransformation
Our Belief: We must find a different way of driving change
What	Have	We	Learned	About	Large	Scale	Change?
•77% of change initiatives fail…HBR
•Historically the adoption of emerging tech has
left a wake of failed efforts…
- ERP, CRM, SOA, etc.
•Digital change programs that use traditional
adoption approaches usually do not work
- Most strategic change programs are project-driven and in
today’s faster world outdated before being fully implemented
- Traditional change programs are static, cascading one time
events
- Traditional adoption processes are technology centric while
digital adoption requires a human centric lens
@dhinchcliffe#digitaltransformation
Centralized Change Has Been Breaking Down for A While
Which	the	
Center	of	
Excellence	
Model	was	
Supposed	to	Fix
@dhinchcliffe#digitaltransformation
At	this	point	in	the	keynote,	I	ask	the	entire	#CollabTechFest	audience:	
“How	many	think	your	organization	has	a	good	model	for	digital	change?”
NOT	A	SINGLE	HAND	GOES	UP
I	then	say,	“What	we	are	doing	right	now	isn’t	working.	

We	need	new	and	better	ways	for	digital	change.	
Here	are	some	ideas…”
@dhinchcliffe#digitaltransformation
It	Was	Technology	Challenges	that	Forced	Us	to	Look	to	New	Models	in	the	First	Place
@dhinchcliffe#digitaltransformation
At	the	Largest	Scale,	Industry	Has	Learned	that	Open,		
and	Collaborative	Driven	Approaches	Are	the	Most	Effective
• There has been revolution in how loosely-coupled but
well aligned groups of people can drive change

• Open Source
• Agile, and now Devops
• Open Innovation
• Social Media
• Crowdfunding
• Disaster Relief
• Network Leadership
With	a	New	Lens:	Proof	Points
@dhinchcliffe#digitaltransformation
@dhinchcliffe#digitaltransformation
A way of scaling connections to shared expertise
Access to expert facilitators to drive continuous shared alignment
Shortest route to openness, transparency, and shared knowledge
A vehicle for leadership to communicate and enable change
A means to focus performance improvements locally enable broadly
Easy integration of external SMEs to inform strategy & decisions
A capability to inspire co-creation and innovation
How	Networks	of	People	Tend	to	Mature	in	Terms	of	Use
@dhinchcliffe#digitaltransformation
Eventually,	All	Types	of	
Groups	in	the	
Enterprise	Will	Be	
Working	Primarily	in	
Digital	Networks	
Indeed,	the	Process	Is	
Already	Advanced	in	
Most	Organizations
@dhinchcliffe#digitaltransformation
incremental change
IT
IT as support unit,
enabling centrally,
“Doing it all”
Limited external
competition/enablement
service providers
outsourcing firms
faster change
IT as support unit,
CoEs driving innovation
More external
competition
service providers
outsourcing firms
app stores
IT
CoE CoE
cloud
fastest change
network of IT enablement,
broadly innovating decentrally
Most external
competition
service providers
outsourcing firms
app stores cloud
CoE = Center of Excellence | NoE = Network of Excellence | = Shadow IT
NoE
CoELoB
LoB
CoE
LoB
dev partners
dev
partners
APIs
Back to the CoE. What’s Next?
@dhinchcliffe#digitaltransformation
We Need a Model that Will Scale Up and Move as Fast as Digital Change
@dhinchcliffe#digitaltransformation
Because	Most	Organizations	Aren’t	Becoming	Digital	Nearly	Fast	Enough	
- Lack of skills to enable changeDon’t have time
- Disengagement (at all levels)
- Lack of curiosity in new ideas
- Insular management culture
- Unfamiliarity or dislike of technology
- Lack of empathy & caring
- Not-invented here
- Shareholder vs family driven
- Lack of humility
- Fear of looking clumsy
- Commitment, but only superficially
Source: Change Agents Worldwide (@chagww) & Dion Hinchcliffe
Top obstacles to digital change
The	Majority	of	these	Challenges	are	People	Issues
@dhinchcliffe#digitaltransformation
So, a Few Years
Ago I Began to
Notice a New
Pattern on
Projects…
That Change
Teams were
Becoming
Change	Networks
@dhinchcliffe#digitaltransformation
Next-Gen Case Example: Beyond the CoE
@dhinchcliffe#digitaltransformation
Another Proof Point for Communities of Change
• Dr. David Bray
(@chief_ventures)
• Recently CIO of the Federal
Communications Commission
• Faced the Daunting Prospects
of Moving 300 LOB Apps to the
Cloud to Reduce Rampant
Complexity and Cost
• Used Internal and External
Change Agents to Accomplish in
Less Than One Year with
Existing OpEx
@dhinchcliffe#digitaltransformation
Further Proof Points of Communities of Change
• Washington Post Company
• AstraZeneca
• Houghton Mifflin Harcourt
• Etlisat
• Travelex
• Tesco
@dhinchcliffe#digitaltransformation
@dhinchcliffe#digitaltransformation
Digital
Workplace
Transformation Results
Change Agents
There	Was	Another	Missing	Piece	to	the	Puzzle
Changing	Everyone	Was	Too	Hard	and	Was	Going	to	Fail	Under	Those	Rules
@dhinchcliffe#digitaltransformation
The	Key	Insights		Were	With	Us…
• It’s always a people
problem. - Gerald	
Weinberg	
• Productivity of Digital
Teams Varies from 1:10
• Existing Models that
Focused on Changing 100%
of Everything Were
Doomed to Fail
What	if	we	could	plan	a	self-growing	seed	of	change?
@dhinchcliffe#digitaltransformation
We	Have	a	
Growing	New	
Audience	to	Tap	
into	Pent	Up	
Desire	for	Progress	
and	Improvement:	
Digital	
Change	
Agents
@dhinchcliffe#digitaltransformation
Digital	Org	
Structures	are	
the	Natural	
Platform	for	
Change	Agents
@dhinchcliffe#digitaltransformation
@dhinchcliffe#digitaltransformation
Community ManagersChange Agents
 Your Executive
Leadership
Your Business and
Technology Stakeholders
strategy
collaboration
& formulation
strategy
communication
Lessons
Learned
Online

Community

Platform
Latest
Digital Business
Concepts &
Techniques
Digital
Strategy
Decision
Maps
Detailed
Roadmaps
Digital
Workplace
Strategy
Co-Creation
Enterprise
Change Plan
45-60 day cycles,
delivered using secure online platforms
Using	Digital	Networks	for	Transformation	of	the	Enterprise
@dhinchcliffe#digitaltransformation
The Biggest Lesson of Digital Org Structures: Let The Network Do The Work....
@dhinchcliffe#digitaltransformation
BECAUSE SOMETHING DEFINITELY WILL BE
DIGITAL ORG STRUCTURES A KEY STARTING POINT FOR DIGITAL TRANSFORMATION
@dhinchcliffe#digitaltransformation
Key Point:
Mature social
collaboration initiatives
have 3x the community
managers of low
maturity efforts
Network-Based Change Requires New Forms of Management
Community
Managers Have
Always Been Change
Enablers at their Core
@dhinchcliffe#digitaltransformation
Staffing for Collaborative Disruption
+
Community	of	
Change	Agents
@dhinchcliffe#digitaltransformation
PREMISE: THE ENTERPRISE-WIDE SCALE OF COMMUNITY ONLY CAPACITY THAT CAN TACKLE
BUT THE SINGLE BIGGEST OBSTACLE TO MODERN COLLABORATION: ORG CULTURE
@dhinchcliffe#digitaltransformation
Using Digital Org Structures for Transformation
• We have incredibly powerful tools in our online
communities and digital workplaces
• If we have vision, we can use them for very ambitious
change efforts that scale far better
• That go well beyond simple comms/collaboration
• They are giving us access to influence, orchestrate, and
guide organizations at a mass scale level
• We need to build new change skills and network
leadership through communities
• Change agents and community managers are the future of
sustainable change
• It’s a competitive imperative now to find these new models
• I encourage you to explore the possibilities, as it’s what
we’ve always intended to do with digital workplace anyway
• Truly enable human potential to its fullest
The Leadership Challenges of Digital Transformation - The Conference Board - February 2018 by Dion Hinchcliffe

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