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Updated: 5 hours 18 min ago

How To Build a Roadmap for Your Digital Business Transformation

Mon, 11/17/2014 - 17:09

Let’s say you want to take your business to the Cloud --  How do you do it?

If you’re a small shop or a startup, it might be easy to just swipe your credit card and get going.

If, on the other hand, you’re a larger business that wants to start your journey to the Cloud, with a lot of investments and people that you need to bring along, you need a roadmap.

The roadmap will help you deal with setbacks, create confidence in the path, and help ensure that you can get from point A to point B (and that you know what point B actually is.)  By building an implementable roadmap for your business transformation, you can also build a coalition of the willing to help you get their faster.  And you can design your roadmap so that your journey flows continuous business value along the way.

In the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share how top leaders build better roadmaps for their digital business transformation.

Why You Need to Build a Roadmap for Your Digital Transformation

If you had infinite time and resources, maybe you could just wing it, and hope for the best.   A better approach is to have a roadmap as a baseline.  Even if your roadmap changes, at least you can share the path with others in your organization and get them on board to help make it happen.

Via Leading Digital:

“In a perfect world, your digital transformation would deliver an unmatched customer experience, enjoy the industry's most effective operations, and spawn innovative, new business models.  There are a myriad of opportunities for digital technology to improve your business and no company can entertain them all at once.  The reality of limited resources, limited attention spans, and limited capacity for change with force focused choices.  This is the aim of your roadmap.”

Find Your Entry Point

Your best starting point is a business capability that you want to exploit.

Via Leading Digital:

“Many companies have come to realize that before they can create a wholesale change within their organization, they have to find an entry point that will begin shifting the needle.  How? They start by building a roadmap that leverages existing assets and capabilities.  Burberry, for example, enjoyed a globally recognized brand and a fleet of flagship retail locations around the world.  The company started by revitalizing its brand and customer experience in stores and online.  Others, like Codelco, began with the core operational processes of their business.  Caesars Entertainment combined strong capabilities in analytics with a culture of customer service to deliver a highly personalized guest experience.  There is no single right way to start your digital transformation.  What matters is that you find the existing capability--your sweet spot--that will get your company off the starting blocks.

Once your initial focus is clear, you can start designing your transformation roadmap.  Which investments and activities are necessary to close the gap to your vision?  What is predictable, and what isn't? What is the timing and scheduling of each initiative? What are the dependencies between them?  What organizational resources, such as analytics skills, are required?”

Engage Practitioners Early in the Design

If you involve others in your roadmap, you get their buy-in, and they will help you with your business transformation.

Via Leading Digital:

“Designing your roadmap will require input from a broad set of stakeholders.  Rather than limit the discussion to the top team, engage the operational specialists who bring an on-the-ground perspective.  This will minimize the traditional vision-to-execution gap.  You can crowd-source the design.  Or, you can use facilitated workshops, as as 'digital days,' as an effective way to capture and distill the priorities and information you will need to consider.  We've seen several Digital Masters do both.

Make no mistake; designing your roadmap will take time, effort, and multiple iterations.  But you will find it a valuable exercise.  it forces agreement on priorities and helps align senior management and the people tasked to execute the program.  Your roadmap will become more than just a document.  If executed well, it can be the canvas of the transformation itself.  Because your roadmap is a living document, it will evolve as your implementation progresses.”

Design for Business Outcome, Not Technology

When you create your roadmap, focus on the business outcomes.   Think in terms of adding incremental business capabilities.   Don’t make it a big bang thing.   Instead, start small, but iterate on building business capabilities that take advantage of Cloud, Mobile, Social, and Big Data technologies.

Via Leading Digital:

“Technology for its own sake is a common trap.  Don't build your roadmap as a series of technology projects.  Technology is only part of the story in digital transformation and often the least challenging one.  For example, the major hurdles for Enterprise 2.0 platforms are not technical.  Deploying the platform is relatively straightforward, and today's solutions are mature.  The challenge lies in changing user behavior--encouraging adoption and sustaining engagement in the activities the platform is meant to enable.

Express your transformation roadmap in terms of business outcomes.  For example, 'Establish a 360-degree understanding of our customers.'  Build into your roadmap the many facets of organizational change that your transformation will require customer experiences, operational processes, employee ways of working, organization, culture, communication--the list goes on.  This is why contributions from a wide variety is so critical.”

There are lots of way to build a roadmap, but the best thing you can do is put something down on paper so that you can share the path with other people and start getting feedback and buy-in.

You’ll be surprised but when you show business and IT leaders a roadmap, it helps turn strategy into execution and make things real in people’s minds.

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How Leaders are Building Digital Skills

Tue, 11/11/2014 - 17:51

Cloud, mobile, social, and big data are changing the game of business.

But to play the game well, leaders need to grow new skills.

In order to create new customer experiences and market-leading operational capabilities, leaders need to invest in digital skills.

Our Cloud-First, Mobile-First world provides unprecedented possibilities in terms of connectivity and compute resources for changing customer experiences, transforming the workforce, and transforming operations, and creating new business models.   Companies every day are building amazing solutions that integrate Cloud, Mobile, Social, and Big Data capabilities as well as what the Internet of Things brings to the table.   But to take advantage of these capabilities, you need leaders that grow and invest in a digital platform and in digital skills.

In the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share how top leaders grow their digital skills.

Creating Great Customer Experiences Requires New Skills and New Ways of Working

Whether you want to reimagine your customer experience, or reimagine your operations, it takes new skills, and new ways of working.   Companies that don’t have the right digital skills struggle.   Worse, everybody is competing for the same skills, including social media analysts, mobile marketers, cloud architects, and data scientists.

Via Leading Digital:

“Creating great customer experiences or market-leading operational capabilities is more than technology challenge.  It's also an organizational challenge requiring new skills and new ways of working.  Yet, 77 percent of companies in our first year of research cited missing digital skills as a major hurdle to their digital transformation success. To compound the problem, most companies are chasing after similar skills--social media analysts, mobile marketers, cloud architects, or data scientists, to name a few.”

How Digital Masters are Building Skills

If you want to help your company become a Digital Master, or, if you want to be a high-performing leader, you need to invest in digital skills.  

Via Leading Digital:

“So what are Digital Masters doing differently when it comes to skills? First, they are investing.  Of the Digital Masters we surveyed, 82 percent are building the digital skills they need to support transformation efforts.  Only 40 perce3nt of nonmasters are doing so.

Second, Digital Masters are accelerating and creating  a gap.  Our survey research shows that the masters had greater digital skills than nonmasters, reporting 31 percent higher social media skills, 38 percent higher mobile skills, and 19 percent higher analytics skills.

But Digital Masters did not start with higher skills.  Burberry did not become excellent at digital marketing. and channels overnight.  CEO Ahrendts hired a new, dynamic marketing team whose members mirrored the behaviors of the millennial customer.  Nor did Caesars excel at delivering personalized customer experience solely because its CEO, Gary Loveman, has a PhD in economics from MIT. Caesars' executives actively incorporated quantitative skills into the marketing area.  In these companies, like other Digital Masters, top executives worked hard to build the digital skills they needed.”

The Line Between Technical Skills and Leadership Skills is Blurring Fast

The gap is huge but the lines blur fast.  There is a huge demand for people that are both business savvy and technology savvy.

Via Leading Digital:

“The skills difference extends beyond technology.  Digital Masters report 36 percent higher skills in digital leadership than nonmasters. Digital transformation requires changes to processes and thinking--changes that span your internal organizational silos.  'The clear delineation between technical skills and leadership skills in blurring fast.

The impact of digital technologies is now felt not only in the IT and technical departments, but also across the entire organization.  Digital transformation's need for cross-functional collaboration creates a huge demand for hybrid digital skills-- technical people who need to be more business savvy and businesspeople who need to be more technology savvy.  A retail executive explained: 'We are trying for the first time to work across the company.  That implies going through a new level of complexity in the organization, and requires people to manage and network differently.  That, I think, is the most important skills that needs to be developed.'”

Successful Leaders Will Have Business and Technical Skills

True hybrid professionals will be the leaders of tomorrow.

Via Leading Digital:

“The need for new skills can also result from the need to bridge the communication gap between digital and business competences.  One executive said, 'I need a charismatic quant--somebody who's an influencer and can carry his weight in a senior meeting, but at the same time, someone who can roll up his sleeves and look at data tables and build models and enjoy it.'

These bridging roles may soon become the responsibility of every manager. 'I believe,' said Markus Nordlin, CIO of Zurich Insurance, 'that the successful leaders of tomorrow, in any business or industry, are going to be true hybrid professionals who have spent some time in IT but have shifted to operations and vice-versa.'”

Digital Skills Create Competitive Advantage and Enable Digital Transformation

To keep up and get ahead, you need to master Digital Skills and be able to use them in a business savvy way.

Via Leading Digital:

“Aspiring Digital Masters are all chasing the same technical skills.  The shortage of digital skills is unprecedented.  In Europe alone, forecasts point to nearly a million vacancies for IT-related roles by 2015.  And globally, out of the 4.4 million big-data jobs to be created by 2015, only a third will be filled.

But by the same token, business professionals will increasingly need to be comfortable with digital tools and technologies to perform their core roles.  By 2015, research firm IDC expects that 90 percent of all jobs will require IT skills.  Some business functions are already adding technology skills to their mix.  Gartner reports that 70 percent of the companies they surveyed have a chief marketing technologist to support the digitization of the function.

This skills race won't slow down anytime soon.  Having the right digital skills is an important source of competitive advantage and a key enabler of digital transformation.  Companies that build skills faster will get ahead.

To win at the digital skills race, you will need to tap into multiple approaches--hiring, partnering, incubating, and the like.  It's not easy, as one executive explained: 'Our recruiters don't know where to go to find these people, and people with the right skills don't look to our kind of company for opportunities.'  HR organization will need to get up to speed quickly.  A recent Capgemini Consulting survey found that only 30 percent of HR functions were actively involved in digital skills development.  This needs to change.  Many Digital Masters have a carefully crafted plan to fight and win the talent race.”

All of the capabilities of Cloud, Mobile, Social, and Big Data are right at your fingertips.

Using these capabilities in meaningful ways takes a combination of business and technical skills, as well as great organizational change leadership skills.

If you can master business skills and combine them with great technical skills, you can lead you, your team, your organization, and others to change the world.

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Dual-Speed IT Drives Digital Business Transformation and Improves IT-Business Relationships

Fri, 11/07/2014 - 19:24

Don’t try to turn all of your traditional IT into a digital unit.  

You’ll break both, or do neither well.

Instead,  add a Digital Unit.   Meanwhile, continue to simplify and optimize your traditional IT, but, at the same time, add a Digital Unit that’s optimized to operate in a Cloud-First, Mobile-First world.

This is the Dual-Speed IT approach, and, with this way, you can choose the right approach for the job and get the best of both worlds.

Some projects involve more extensive planning because they are higher-risk and have more dependencies.

Other projects benefit from a loose learning-by-doing method, with rapid feedback loops, customer impact, and testing new business waters.

And, over time, you can shift the mix.

In the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share some of their lessons learned from companies that are Digital Masters that created their digital visions and are driving business change.

Build Digital Skills Into One of Your Existing Business Units

You can grow one of your existing business units into a Digital Unit.  For example, marketing is a pretty good bet, given the customer focus and the business impact.

Via Leading Digital:

 

“Changing the IT-business relationship is well worth the effort, but doing so takes time.  Your company may not have the time to wait before starting your digital transformation.  Rather than improving the IT unit, some companies try to build digital skills into another unit, such as marketing.  They try to work around IT rather than with it.”

Don’t Mix Your Digital Unit with Your Traditional IT

Don’t throw away your existing IT or break it by turning it into something it’s not, too quickly.   Instead, leverage it for the projects where it makes sense, while also leveraging your new Digital IT unit.

Via Leading Digital:

“Although building digital skills is useful, trying to work around IT can be fraught with challenges, especially if people do not understand the reasons for IT's systematic, if sometimes ponderous, processes.  This kind of flanking action can waste money, make the digital platform more complex, and even worse, open the company to security and regulatory risks.”

Create a Dual-Speed IT to Support Both Traditional IT and Faster-Speed Digital Transformation

You can have the best of both worlds, while both evolving your traditional IT and growing your Digital Unit to thrive at Cloud speed.

Via Leading Digital:

“A better approach is to create a dual-speed IT structure, where one part of the IT unit continues to support traditional IT needs, while another takes on the challenge of operating at digital speed with the business.  Digital activities--especially in customer engagement--move faster than many traditional IT ones.  They look at design processes differently.  Where IT projects have traditionally depended on clear designs and well-structured project plans, digital activities often engage in test-and-learn strategies, trying features in real-life experiments and quickly adding or dropping them based on what they find.”

Optimize the Digital Unit for Digital World

Your Digital Unit needs to be very different from traditional IT in terms of the mindset and the approaches around the people, processes, and technology.

Via Leading Digital:

“In a dual-speed approach, the digital unit can develop processes and methods at clock-speeds more closely aligned with the digital world, without losing sight of the reasons that the old IT processes existed.  IT leaders can draw on informal relationships within the IT department to get access to legacy systems or make other changes happen.  Business leaders can use their networks to get input and resources.  Business and IT leaders can even start to work together in the kind of two-in-a-box leadership method that LBG and other companies have adopted.”

Choose the Right Leadership Both in the Business and in IT

To make it work and to make it work well, it takes partnerships on both sides.   The business and IT both need skin in the game.

Via Leading Digital:

“Building dual-speed IT units requires choosing the right leadership on both sides of the relationship.  Business executives need to be comfortable with technology and with being challenged by their IT counterparts.  IT leaders need to have a mind-set that extends beyond technology to encompass the processes and drivers of business performance.  Leaders from both sides need to be strong communicators who can slide easily between conversations with their business- or IT-focused people.”

Great IT Leaders Know When to Choose Traditional IT vs. the Digital Unit

With both options at your disposal, Great IT Leaders know how to choose the right approach for the job.   Some programs and projects will take a more traditional life-cycle or require heavier planning or more extensive governance and risk management, while other projects can be driven in a more lightweight and agile way.

Via Leading Digital:

“Dual-speed IT also requires perspective about the value of speed.  Not all digital efforts need the kind of fast-moving, constantly changing processes that digital customer-engagement processes can need.  In fact, the underlying technology elements that powered LBG's new platform, Asian Paints' operational excellence, and Nike's digital supply chain enhancements required the careful, systematic thinking that underpins traditional IT practices.  Doing these big implementations in a loose learning-by-doing method could be dangerous.  It could increase rework, waste money, and introduce security risks.  But once the strong digital platform is there, building new digital capabilities can be fast, agile, and innovative.  The key is to understand what you need in each type of project and how much room any project has to be flexible and agile.  Great IT leaders know how to do this.  If teamed with the right business leaders, they can make progress quickly and safely.”

Dual-Speed IT Requires New Processes within IT

It takes a shift in processes to do Dual-Speed IT.

Via Leading Digital:

“Dual-speed IT also takes new processes inside IT.  Few digital businesses have the luxury to wait for monthly software release cycles for all of their applications.  Digital-image hosting business Flickr, for example, aims for up to ten deployments per day, while some businesses require even more.  This continuous-deployment approach requires very tight discipline and collaboration between development, test, and operations people.  A bug in software, missed step in testing, or configuration problem in deployment can bring down a web site or affect thousands of customers.”

DevOps Makes Dual Speed IT Possible

DevOps blends development and operations into a more integrated approach that simplifies and streamlines processes to shorten cycle times and speed up fixes and feedback loops.

Via Leading Digital:

“A relatively new software-development method called DevOps aims to make this kind of disciplined speed possible.  It breaks down silos between development, operations, and quality assurance groups, allowing them to collaborate more closely and be more agile.  When done properly, DevOps improves the speed and reliability of application development and deployment by standardizing development environments.  It uses strong methods and standards, including synchronizing the tools used by each group.”

DevOps Can Help IT Release Software Better, Faster, Cheaper, and More Reliably

DevOps is the name of the game when it comes to shipping better, faster, cheaper and more reliably in a Cloud-First, Mobile-First world.

Via Leading Digital:

“DevOps relies heavily on automated tools to do tasks in testing, configuration control, and deployment—tasks that are both slow and error-prone when done manually.  Companies that use DevOps need to foster a culture where different IT groups can work together and where workers accept the rules and methods that make the process effective.  The discipline, tools, and strong processes of DevOps can help IT release software more rapidly and with fewer errors, as well as monitor performance and resolve process issues more effectively, than before.”

Driving Digital Transformation Takes a Strong Link Between Business and IT Executives

In order for your Digital Transformation to thrive, it takes building better bridges between the business leaders and the IT leaders.

Via Leading Digital:

“Whether your CIO takes it upon himself or herself to improve the IT-business relationship, or you decide to help make it happen, forging a strong link between business and IT executives is an essential part of driving digital transformation.  Strong IT-business relationships can transform the way IT works and the way the business works with it.  Through trust and shared understanding, your technology and business experts can collaborate closely, like at LBG, to innovate your business at digital speeds.  Without this kind of relationship, your company may become mired in endless requirements discussion, filing projects, and lackluster systems, while your competitors accelerate past you in the digital fast lane.”

If you want to thrive in the new digital economy while driving digital business transformation without breaking your existing business, consider adding Dual-Speed IT to your strategies and shift the mix from traditional IT to your Digital Unit over time.

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How To Improve the IT-Business Relationship

Thu, 11/06/2014 - 17:38

It’s possible to change IT from a poorly respected cost center to a high-functioning business partner.

Driving business transformation is a people, process, and technology thing.

Some people think they can change their business without IT.   The challenge is that technology is the enabler of significant business change in today’s digital landscape.  Cloud, Mobile, Social, and Big Data all bring significant capabilities to the table, and IT can hold the keys.

But the business doesn’t want to hear that.

Business Leaders Want to Hear About the WHY and WHAT of the Business

Business leaders don’t want to hear about the HOW of technology.

Business leaders want to hear about the impact on their business.   They want to hear about how predictive analytics can help them build a better pipeline, or target more relevant offers.   Business leaders want to hear about how they can create cross-sell/upsell opportunities in real-time.   And, business leaders want to hear about the business benefits and the KPI that will be impacted by choosing a particular strategy.

The reality is that the new Digital Masters of the emerging Digital Economy bring their IT with them, and in many cases, their IT even helps lead the business into the new Digital Frontier.

In the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share some of their lessons learned from companies that are digital masters that created their digital visions and are driving business change.

How IT Can Change Its Game

While it takes work on both sides, IT can change it’s game by creating transparency around performance, roles, and value.  This includes helping employees think and talk differently about what they do.   IT can show very clearly how it delivers value for the money.  And IT can change the way IT and business leaders make investment decisions and assess the returns.

IT Needs to Speak Business

The CIO and everybody in IT, needs to speak the language of business.

Via Leading Digital:

“Poor relations between IT and business leaders can have many causes.  Sometimes it's the personality of the IT leader.  A common complaint among senior executives is that their CIO seems to speak a different language from the business.  Another is that the CIO doesn't seem to understand what's really important.  For example, a chemical company CIO we interviewed described how he communicates regularly with business executives about the innovative possibilities of digital technologies.  Yet none of his business executive peers (whom we interviewed separately) seemed to find the discussions credible.”

IT Needs to Deliver Better, Faster, and More Reliably than Outsourcing

It’s a competitive world and IT needs to continuously find ways to deliver solutions in a way that makes business sense.

Via Leading Digital:

“Sometimes the issue arises from IT's delivery capability.  According to Bud Mathaisel, who has served as CIO in several large companies, 'It starts with competence in delivering services reliably, economically, and at very high quality.  It is the absolute essential to be even invited into meaningful dialog about how you then build on that competence to do something very interesting with it.'  Unfortunately, some IT units today do not have this competence.  One business executive we interviewed said, 'IT is a mess.  It's costs are not acceptable.  It proposes things in nine or ten months, where external firms could do them in three to nine weeks.  We started offshoring our IT, and now our IT guys are trying to change.' A legacy of poor communication, byzantine decision processes, and broken commitments is no foundation on which to build a strong IT-business relationship.”

IT Needs a Good Digital Platform to Be High-Performing IT

In order to bet on IT, it needs to be high-performing.  And in order for IT to be high-performing, it needs to have a good digital platform.

Via Leading Digital:

“However, the fault doesn't always rest only with IT leaders.  In many cases, business executive share some of the blame ... high-performing IT requires a good digital platform, and good platforms require discipline.  If your approach to working with IT can be characterized by impatience, unreasonable expectations, or insisting on doing things your way, then you'll need to think about how to change your side of the relationship.”

CIOs Can Lead Digital Business Transformation

Key business transformation takes technology.  CIOs can help lead the business transformation, whether it's through shared goals with the business, creating a new governance mechanism, or creating a new shared digital unit.

Via Leading Digital:

“Regardless of the case, if your IT-business relationships are poor, it's essential to fix the problem.  A bank executive stated, 'IT has been brought closer to business during the last five years.  It is very important to success because man of the important transformations in our business are enabled by technology.'  With strong relationships, IT executives can help business executives meet their goals, and business executives listen when IT people suggest innovations.  Executives on both sides are willing to be flexible in creating new governance mechanisms or shared digital units.  At Codelco, Asian Paints, and P&G, the CIO even leads digital transformation for the company.”

CIOs Can Help Drive the Bus with the Executive Team

CIOs can help drive the bus, but it takes more than senior sponsorship.

Via Leading Digital:

“So, how can you start to improve your IT-business relationship?  Angela Ahrendts, CEO of Burberry, told her CIO he needed to help drive the bus with the executive team.  However, leadership changes or top-down mandates are only the start of the change.  Few CIOs can change the business by themselves, and not all business executives will climb on the bus with the CIO, even if the CEO demands it.”

Fix How You Communicate to Fix the IT-Business Relationship

Start by fixing how you communicate between the business and IT.

Via Leading Digital:

“Fixing the IT-business relationship can take time, as people learn how to trust each other and redefine the way they work together.  As with any struggling relationship, the best starting point is to fix the way you communicate.  Does IT really cost too much, or are costs reasonable, given what IT has to do? Is the IT unit really too bureaucratic, or do all of those procedures actually serve a useful purpose?  Are you a good partner to IT or a difficult one?  How can IT make it easier for you to get what you need, while still making sure things are done correctly?  What investments can help IT improve its technology, internal processes, cost-effectiveness, quality, or speed?”

Change IT from a Poorly Respected Cost Center to a High-Functioning Business Partner

It’s possible to change IT from a low performing cost center to a high-performing business partner.  Companies do it all the time, and MIT has the research.

Via Leading Digital:

“MIT research into IT turnarounds has identified a series of steps that can change IT from a poorly respected cost center to a high-functioning business partner.  The key change mechanism is transparency--around performance, roles, and value.  The first step is to help IT employees think, and talk, differently about what they do.  The second step proceeds to showing very clearly how well (or how poorly) IT delivers value for money--the right services at the right quality and right price, and where problems still exist.  And then the third step moves to changing the way IT and business leaders make investment decisions and assess the returns that projects deliver.  Through transparency around roles, performance, and investments, both sides can make smoother decisions and work together to identify and deliver innovation.”

If you’re part of a business that wants to change the world, start by reimagining how IT can help you achieve the art of the possible.

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Drive Business Transformation by Reenvisioning Your Operations

Mon, 11/03/2014 - 18:17

When you create your digital vision, you have a few places to start.

One place to start is by reenvisioning your customer experience.   Another place to start is by reenvisioning your operations.   And, a third place to start is by renvisioning your business model.

In this post, let’s take a look at reenvisioning your operations.

In the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share some of their lessons learned from companies that are digital masters that created their digital visions and are driving business change.

Start with Reenvisioning Operations When Financial Performance is Tied to Your Supply Chain

If your financial performance is closely connected to the performance of your core operations and supply chain, then reenvisioning your operations can be a great place to start.

Via Leading Digital:

“Organizations whose fortunes are closely tied to the performance of their core operations and supply chains often start with reenvisioning their operations.”

Increase Process Visibility, Decision Making Speed, and Collaboration

There are many great business reasons to focus on improving your operations.   A few of the best include increasing process visibility, increasing speed of decision making, and improving collaboration across the board.

Via Leading Digital:

“The business drivers of operational visions include efficiency and the need to integrate disparate operations.  Executives may want to increase process visibility and decision making speed or to collaborate across silos.”

Proctor & Gamble Reenvisions Operational Excellence

Proctor and Gamble changed their game by focusing on operational excellence.  The key was to be able to manage the business in real time so they could keep up with their ever-changing world.

Via Leading Digital:

“For instance, in 2011, Proctor & Gamble put operational excellence at the center of its digital vision: 'Digitizing P&G will enable us to manage the business in real time and on a very demand-driven basis.  We'll be able to collaborate more effectively and efficiently, inside and outside the company.'  Other companies in industries from banking to manufacturing, have transformed themselves through similar operationally focused visions.”

Operational Visions are Key to Businesses that Sell to Other Businesses

If your business is a provider of products or services to other businesses, then your operational vision is especially important as it can have a ripple effect on what your customers do.

Via Leading Digital:

“Operational visions are especially useful for businesses that sell largely to other businesses.  When Codelco first launched its Codelco Digital initiative, the aim was to improve mining operations radically through automation and data integration.  As we described in chapter 3, Codelco continued to extend this vision to include new mining automation and integration operations-control capability.  Now, executives are envisioning radical new ways to redefine the mining process and possibly the industry itself.”

Operational Visions Can Change the Industry

When you change your operations, you can change the industry.

Via Leading Digital:

“The operational visions of some companies go beyond an internal perspective to consider how the company might change operations in its industry or even with its customers.“

Changes to Operations Can Enable Customers to Change Their Own Operations

When you improve your operations,  you can help others move up the solution stack.

Via Leading Digital:

“For example, aircraft manufacturer Boeing envisions how changes to its products may enable customers to change their own operations.  'Boeing believes the future of the aviation industry lie in 'the digital airline,' the company explained on its website. 'To succeed in the marketplace, airlines and their engineering and IT teams must take advantage of the increasing amount of data coming off of airplanes, using advanced analytics and airplane technology to take operational efficiency to the next level.' “

Get Information to the People Who Need it Most, When They Need It Most

One of the best things you can do when you improve operations is to put the information in the hands of the people that need it most, when they need it most, where they need it most.

Via Leading Digital:

“The manufacturer goes on to paint a clear picture of what a digital airline means in practice: 'The key to to the digital airline is delivering secure, detailed operational and maintenance information to the people who need it most, when they need it most.  That means that engineering will share data with IT, but also with the finance, accounting, operational and executive functions.' “

Better Operations Enables New Product Designs and Services

When you improve operations, you enable and empower business breakthroughs in all parts of the business.

Via Leading Digital:

“The vision will improve operations at Boeing's customers, but will also help Boeing's operations as the information from airplanes should help the company identify new ways to improve its product designs and services.  The day may also lead to new business models as Boeing uses the information to provide new services to customers.”

When you create your digital vision, while there are lots of places you could start, the key is to take an end-to-end view.

If your financial performance is tied to your core operations and your supply chain, and/or you are a provider of products and services to others, then consider starting your business transformation by reenvisioning your operations.

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Categories: Blogs

Driving Business Transformation by Reenvisioning Your Customer Experience

Thu, 10/30/2014 - 18:03

You probably hear a lot about the Mega-Trends (Cloud, Mobile, Social, and Big Data), or the Nexus of Forces (the convergence of social, mobility, cloud and data insights patterns that drive new business scenarios), or the Mega-Trend of Mega-Trends (Internet of Things).

And you are probably hearing a lot about digital transformation and maybe even about the rise of the CDO (Chief Digital Officer.)

All of this digital transformation is about creating business change, driving business outcomes, and driving better business results.

But how do you create your digital vision and strategy?   And, where do you start?

In the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share some of their lessons learned from companies that are digital masters that created their digital visions and are driving business change.

3 Perspectives of Digital Vision

When it comes to creating your digital vision, you can focus on reenvisioning the customer experience, the operational processes, or your business model.

Via Leading Digital:

“Where should you focus your digital vision? Digital visions usually take one of three perspectives: reenvisioning the customer experience, reenvisioning operational processes, or combining the previous two approaches to reenvision business models.  The approach you take should reflect your organization’s capabilities, your customer’s needs, and the nature of competition in your industry.”

Start with Your Customer Experience

One of the best places to start is with your customer experience.  After all, a business exists to create a customer.  And the success of the business is how well it creates value and serves the needs of the customer.

Via Leading Digital:

“Many organizations start by reenvisioning the way they interact with customers.  They want to make themselves easier to work with, and they want to be smarter in how they sell to (and serve) customers.  Companies start from different places when reenvisioning the customer experience.”

Transform the Relationship

You can use the waves of technologies (Cloud, Mobile, Social, Data Insights, and Internet of Things), to transform how you interact with your customers and how they experience your people, your products, and your services.

Via Leading Digital:

“Some companies aim to transform their relationships with their customers.  Adam Bortman, chief digital officer of Starbucks, shared this vision: 'Digital has to help more partners and help the company be the way we can ... tell our story, build our brand, and have a relationship with our customers.' Burberry's CEO Angela Ahredts focused on multichannel coherence. 'We had a vision, and the vision was to be the first company who was fully digital end-to-end ... A customer will have total access to Burberry across any device, anywhere.'  Mare Menesquen, managing director of strategic marketing at cosmetics gitan L'Oreal, said, 'The digital world multiples the way our brands can create an emotion-filled relationship with their customers.’”

Serve Your Customers in Smarter Ways

You can use technology to personalize the experience for your customers, and create better interactions along the customer experience journey.

Via Leading Digital:

“Other companies envision how they can be smarter in serving (and selling to) their customers through analytics.  Caesars started with a vision of using real-time customer information to deliver a personalized experience to each customer.  The company was able to increase customer satisfaction and profits per customer using traditional technologies.  Then, as new technologies arose, it extended the vision to include a mobile, location-based concierge in the palm of every customer's hand.”

Learn from Customer Behavior

One of the most powerful things you can now do with the combination of Cloud, Mobile, Social, Big Data and Internet of Things is gain better customer insights.  For example, you can learn from the wealth of social media insights, or you can learn through better integration and analytics of your existing customer data.

Via Leading Digital:

“Another approach is to envision how digital tools might help the company to learn from customer behavior.  Commonwealth Bank of Australia sees new technologies as a key way of integrating customer inputs in its co-creation efforts.  According to CIO Ian Narev, 'We are progressively applying new technology to enable customers to play a greater part in product design.  That helps us create more intuitive products and services, readily understandable to our customers and more tailored to their individual needs.”

Change Customers’ Lives

If you focus on high-value activities, you can create breakthroughs in the daily lives of your customers.

Via Leading Digital:

“Finally, some companies are extending their visions beyond influencing customer experience to actually changing customers' lives.  For instance, Novartis CEO Joseph Jimenez wrote of this potential: ‘The technologies we use in our daily lives, such as smart phones and tablet devices, could make a real difference in helping patients to manage their own health.  We are exploring ways to use these tools to improve compliance rates and enable health-care professionals to monitor patient progress remotely.’”

If you want to change the world, one of the best places to start is right from wherever you are.

With a Cloud and a dream, what can you do to change the world?

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Categories: Blogs

100 Top Agile Blogs

Mon, 10/27/2014 - 02:52

Luis Goncalves has put together a list called the 100 Top Agile Blogs:

If you don't know Luis, he lives and breathes driving adoption of Agile practices.

Luis is also an Agile Coach, Co-Author, Speaker, and Blogger.  He is also the co-founder of a MeetUp group called High Performing Teams, and he is a certified Scrum Master and Product Owner.

Here is a preview of the list of top 100 Agile Blogs:

image

 

For the rest of the list, check out 100 Top Agile Blogs.

Lists like these are a great way to discover blogs you may not be aware of.  

While there will be a bunch of blogs you already know, chances are, with that many at a glance, there will be at least a few new ones you can add to your reading list.

Categories: Blogs

The Future of IT Leaders

Fri, 10/24/2014 - 17:16

I’ll need to elaborate on this at some point, to share what I’ve experienced across lots of businesses large and small, as well as some of the biggest businesses on the planet, as they transform themselves for the digital economy.

Meanwhile, here is an interesting read on CIO Straight Talk magazine.

In their words, "CIO Straight Talk is a series of "straight talking" articles from senior IT executives and leading companies and government and nonprofit organizations."

This first edition is focused on learning, failing and learning in the Second Machine Age, and features two non-practitioner experts on current topics:

“Andrew McAfee, co-author of the New York Times bestseller The Second Machine Age, cofounder of MIT’s Initiative on the Digital Economy and Principal Research Scientist at MIT Sloan School of Management, talks about ‘The CIO’s role in the enterprise of the future.’ Says McAfee: ‘The overall trend is that companies of all stripes will need, proportionately, many fewer people in IT. Those who remain will be very highly valued, very highly skilled, very important… Enterprises are going to need someone to help them navigate the second machine age… I think that if the CIO plays her cards right, this can absolutely be her role in the enterprise.’”

Michelle Gallen, the CEO of Shhmooze, a social networking start-up, talks about failure, not to be confused Failure Lite – ‘I failed. How nice. I learned so much’ – often hailed breezily by management experts as something everyone should experience and every company should encourage. Real failure, according to this serial entrepreneur, isn’t pretty. Says Gallen: ‘I don’t think you learn without failing… In the start-up world, innovation is the ability to take an idea and turn it into an invoice. Lots of larger business organizations also rely on cash flow to keep them alive, and therefore innovation has to be monetized. If you’re Apple or Microsoft, you’ve got a war chest, and you can actually allow failure. A lot of companies can’t actually afford it. It’s quite an expensive hobby, failing.’”

So there you have it -- failure is an expensive hobby and the few IT leaders left in organizations will be very highly valued, very highly skilled, and very important.

There’s more to the story and I’ll share what I’ve learned over the past few years helping companies cross the Cloud chasm and accelerating their digital transformation.

Categories: Blogs

Think a Series of Sprints, Not Marathons

Wed, 10/22/2014 - 16:43

When you drive business change and digital initiatives with Cloud, Mobile, Social, and Big Data (and Internet of Things), successful businesses think a series of sprints, not marathons.

Successful businesses go digital by transforming their customer experiences, their employee experiences, and their back-office experiences through rapid prototyping, building proofs-of-concept, testing pilots, and going to production.  It’s a fast cycle of prototype –> pilot –> POC –> production.

These short cycles create rapid learning loops, build momentum, and help adapt for change.

In the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share some of their lessons learned in driving digital initiatives and agile transformation.

The Digital World Moves Quickly

Avoid Big Up Front Design.  Whenever there is a big lag time between designing it, developing it, and using it, you’re introducing more risk.  You’re breaking feedback loops.  You’re falling into the pit of analysis paralysis.   Focus on “just enough design” so that you can test what works and what doesn’t, and respond accordingly.

Via Leading Digital:

“The digital world moves quickly.  The rapid pace of technology innovation today does not lend itself to multiyear planning and waterfall development methods common in the ERP era.  Markets change, new technologies become mainstream, an disruptive entrants begin courting your customers.  Your roadmap will need to be nimble enough to recognize these changes, adapt for them, and course-correct.”

Keep a Vision in Mind and Build on Success Along the Way

Hold on to the vision and use that to guide you as you test your ideas and implement them, without getting bogged down.

Via Leading Digital:

“To design an agile transformation, borrow an approach that has become common among today's leading software companies.  Keep people committed to the end goal, but pace your initiatives as short sprints of effort.  Create prototype solutions, and experiment with new technologies or approaches.  Evaluate the results, and incorporate the results into your evolving roadmap.  Adam Brotman, Starbucks CDO, explained the iterative process: 'We didn't have all the answers, but we started thinking about other things we could do ... I think it worked not to go too far, too fast, but to keep a vision in mind and keep building on success along the way.”

Test Ideas, Save Time, Adapt to Changes

Short cycle times help you respond to market change and adapt as you learn what works and what doesn’t.

Via Leading Digital:

“The test-and-learn approach will require some new ways of working in its own right, but it enjoys some distinct advantages.  By marketing ideas quickly before they go to scale, this approach saves time and money.  It's short cycle times also make it more adaptive to external changes.  Finally, it enables your transformation to sustain momentum through small, incremental successes, rather than the big-bang approach of long-term programs.”

When it comes to your digital strategy and driving business transformation, drive your business change the agile way.

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Building Better Business Cases for Digital Initiatives

Wed, 10/15/2014 - 19:26

It’s hard to drive digital initiatives and business transformation if you can’t create the business case.  Stakeholder want to know what their investment is supposed to get them

One of the simplest ways to think about business cases is to think in terms of stakeholders, benefits, KPIs, costs, and risks over time frames.

While that’s the basic frame, there’s a bit of art and science when it comes to building effective business cases, especially when it involves transformational change.

Lucky for us, in the book, Leading Digital: Turning Technology into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share some of their lessons learned in building better business cases for digital initiatives.

What I like about their guidance is that it matches my experience

Link Operational Changes to Tangible Business Benefits

The more you can link your roadmap to benefits that people care about and can measure, the better off you are.

Via Leading Digital:

“You need initiative-based business cases that establish a clear link from the operational changes in your roadmap to tangible business benefits.  You will need to involve employees on the front lines to help validate how operational changes will contribute to strategic goals.”

Work Out the Costs, the Benefits, and the Timing of Return

On a good note, the same building blocks that apply to any business case, apply to digital initiatives.

Via Leading Digital:

“The basic building blocks of a business case for digital initiatives are the same as for any business case.  Your team needs to work out the costs, the benefits, and the timing of the return.  But digital transformation is still uncharted territory.  The cost side of the equation is easier, but benefits can be difficult to quantify, even when, intuitively, they seem crystal clear.”

Start with What You Know

Building a business case is an art and a science.   To avoid getting lost in analysis paralysis, start with what you know.

Via Leading Digital:

“Building a business case for digital initiatives is both an art an a science.  With so many unknowns, you'll need to take a pragmatic approach to investments in light of what you know and what you don't know.

Start with what you know, where you have most of the information you need to support a robust cost-benefit analysis.  A few lessons learned from our Digital Masters can be useful.”

Don’t Build Your Business Case as a Series of Technology Investments

If you only consider the technology part of the story, you’ll miss the bigger picture.  Digital initiatives involves organizational change management as well as process change.  A digital initiative is really a change in terms of people, process, and technology, and adoption is a big deal.

Via Leading Digital:

“Don't build your business case as a series of technology investments.  You will miss a big part of the costs.  Cost the adoption efforts--digital skill building, organizational change, communication, and training--as well as the deployment of the technology.  You won't realize the full benefits--or possibly any benefits--without them.”

Frame the Benefits in Terms of Business Outcomes

If you don’t work backwards from the end-in-mind, you might not get there.  You need clarity on the business outcomes so that you can chunk up the right path to get there, while flowing continuous value along the way.

Via Leading Digital:

“Frame the benefits in terms of the business outcomes you want to reach.  These outcomes can be the achievement of goals or the fixing of problems--that is, outcomes that drive more customer value, higher revenue, or a better cost position.  Then define the tangible business impact and work backward into the levers and metrics that will indicate what 'good' looks like.  For instance, if one of your investments is supposed to increase digital customer engagement, your outcome might be increasing engagement-to-sales conversation.  Then work back into the main metrics that drive this outcome, for example, visits, like inquiries, ratings, reorders, and the like.

When the business impact5 of an initiative is not totally clear, look at companies that have already made similar investments.  Your technology vendors can also be a rich, if somewhat biased, source of business cases for some digital investments.”

Run Small Pilots, Evaluate Results, and Refine Your Approach

To reduce risk, start with pilots to live and learn.   This will help you make informed decisions as part of your business case development.

Via Leading Digital:

“But, whatever you do, some digital investment cases will be trickier to justify, be they investments in emerging technologies or cutting-edge practices.  For example, what is the value of gamifying your brand's social communities?  For these types of investment opportunities, experiment with a test-and-learn approach.  State your measures of success, run small pilots, evaluate results, and refine your approach.  Several useful tools and methods exist, such as hypothesis-driven experiments with control groups, or A/B testing.  The successes (and failures) of small experiments can then become the benefits rationale to invest at greater scale.  Whatever the method, use an analytical approach; the quality of your estimated return depends on it.

Translating your vision into strategic goals and building an actionable roadmap is the firs step in focusing your investment.  It will galvanize the organization into action.  But if you needed to be an architect to develop your vision, you need to be a plumber to develop your roadmap.  Be prepared to get your hands dirty.”

While practice makes perfect, business cases aren’t about perfect.  Their job is to help you get the right investment from stakeholders so you can work on the right things, at the right time, to make the right impact.

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Categories: Blogs

How Digital is Changing Physical Experiences

Mon, 10/13/2014 - 18:12

The business economy is going through massive change, as the old world meets the new world.

The convergence of mobility, analytics, social media, cloud computing, and embedded devices is driving the next wave of digital business transformation, where the physical world meets new online possibilities.

And it’s not limited to high-tech and media companies.

Businesses that master the digital landscape are able to gain strategic, competitive advantage.   They are able to create new customer experiences, they are able to gain better insights into customers, and they are able to respond to new opportunities and changing demands in a seamless and agile way.

In the book, Leading Digital: Turning Technology into Business Transformation: Turning Technology Into Business Transformation, George Westerman, Didier Bonnet, and Andrew McAfee, share some of the ways that businesses are meshing the physical experience with the digital experience to generate new business value.

Provide Customers with an Integrated Experience

Businesses that win find new ways to blend the physical world with the digital world.  To serve customers better, businesses are integrating the experience across physical, phone, mail, social, and mobile channels for their customers.

Via Leading Digital: Turning Technology into Business Transformation:

“Companies with multiple channels to customers--physical, phone, mail, social, mobile, and so on--are experiencing pressure to provide an integrated experience.  Delivering these omni-channel experiences requires envisioning and implementing change across both front-end and operational processes.  Innovation does not come from opposing the old and the new.  But as Burberry has shown,  innovation comes from creatively meshing the digital and the physical to reinvent new and compelling customer experiences and to foster continuous innovation.”

Bridge In-Store Experiences with New Online Possibilities

Starbucks is a simple example of blending digital experiences with their physical store.   To serve customers better, they deliver premium content to their in-store customers.

Via Leading Digital: Turning Technology into Business Transformation:

“Similarly, the unique Starbucks experience is rooted in connecting with customers in engaging ways.  But Starbucks does not stop with the physical store.  It has digitally enriched the customer experience by bridging its local, in-store experience with attractive new online possibilities.  Delivered via a free Wi-Fi connection, the Starbucks Digital Network offers in-store customers premium digital content, such as the New York Times or The Economist, to enjoy alongside their coffee.  The network also offers access to local content, from free local restaurant reviews from Zagat to check-in via Foursquare.”

An Example of Museums Blending Technology + Art

Museums can create new possibilities by turning walls into digital displays.  With a digital display, the museum can showcase all of their collections and provide rich information, as well as create new backdrops, or tailor information and tours for their customers.

Via Leading Digital: Turning Technology into Business Transformation:

“Combining physical and digital to enhance customer experiences is not limited to just commercial enterprises.  Public services are getting on the act.  The Cleveland Museum of Art is using technology to enhance the experience and the management of visitors.  'EVERY museum is searching for this holy grail, this blending of technology and art,' said David Franklin, the director of the museum.

 

Fort-foot-wide touch screens display greeting-card sized images of all three thousand objects, and offers information like the location of the actual piece.  By touching an icon on the image, visitors can transfer it from the wall to an iPad (their own, or rented from the museum for $5 a day), creating a personal list of favorites.  From this list, visitors can design a personalized tour, which they can share with others.

 

'There is only so much information you can put on a wall, and no one walks around with catalogs anymore,' Franklin said.  The app can produce a photo of the artwork's original setting--seeing a tapestry in a room filled with tapestries, rather than in a white-walled gallery, is more interesting.  Another feature lets you take the elements of a large tapestry and rearrange them in either comic-book or movie-trailer format.  The experience becomes fun, educational, and engaging.  This reinvention has lured new technology-savvy visitors, but has also made seasoned museum-goers come more often.”

As you figure out the future capability vision for your business, and re-imagine what’s possible, consider how the Nexus of Forces (Cloud, Mobile, Social, and Big Data), along with the mega mega-trend (Internet-of-Things), can help you shape your digital business transformation.

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Categories: Blogs

Emotional Intelligence is a Key Leadership Skill

Wed, 10/08/2014 - 17:19

You probably already know that emotional intelligence, or “EQ”, is a key to success in work and life.

Emotional intelligence is the ability to identify, assess, and control the emotions of yourself, others, and groups.

It’s the key to helping you respond vs. react.  When we react, it’s our lizard brain in action.  When we respond, we are aware of our emotions, but they are input, and they don’t rule our actions.  Instead, emotions inform our actions.

Emotional intelligence is how you avoid letting other people push your buttons.  And, at the same time, you can push your own buttons, because of your self-awareness.  

Emotional intelligence takes empathy.  Empathy, simply put, is the ability to understand and share the feelings of others. 

When somebody is intelligent, and has a high IQ, you would think that they would be successful.

But, if there is a lack of EQ (emotional intelligence), then their relationships suffer.

As a result, their effectiveness, their influence, and their impact are marginalized.

That’s what makes emotional intelligence such an important and powerful leadership skill.

And, it’s emotional intelligence that often sets leaders apart.

Truly exceptional leaders, not only demonstrate emotional intelligence, but within emotional intelligence, they stand out.

Outstanding leaders shine in the following 7 emotional intelligence competencies: Self-reliance, Assertiveness, Optimism, Self-Actualization, Self-Confidence, Relationship Skills, and Empathy.

I’ve summarized 10 Big Ideas from Emotional Capitalists: The Ultimate Guide to Developing Emotional Intelligence for Leaders.  It’s an insightful book by Martyn Newman, and it’s one of the best books I’ve read on the art and science of emotional intelligence.   What sets this book apart is that Newman focused on turning emotional intelligence into a skill you can practice, with measurable results (he has a scoring system.)

If there’s one take away, it’s really this.  The leaders that get the best results know how to get employees and customers emotionally invested in the business.  

Without emotional investment, people don’t bring out their best and you end up with a brand that’s blah.

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Categories: Blogs

The Future of Jobs

Mon, 09/29/2014 - 17:46

Will you have a job in the future?

What will that job look like and how will the nature of work change?

Will automation take over your job in the near future?

These are the kinds of questions that Ruth Fisher, author of Winning the Hardware-Software Game, has tackled in a series of posts.

I wrote a summary post to distill her big ideas and insights about the future of jobs in my post:

The Future of Jobs

Fisher has done an outstanding job of framing out the landscape and walking the various arguments and perspectives on how automation will change the nature of work and shape the future of jobs.

One of the first things you might be wondering is, what jobs will automation take away?

Fisher addresses that.

Another question is, what new types jobs will be created?

While that’s an exercise for the reader, Fisher provides clues based on what industry luminaries have seen in terms of how jobs are changing.

The key is to know what automation can and can’t do, and to look at the pattern of work in terms of what’s better suited for humans, and what’s better suited for machines.

As one of my mentors puts it, “If the work can be automated, it’s not human.”

He’s a fan of people doing creative, non-routine work, where they can thrive and shine.

As I take on work, or push back on work, I look through a pretty simple lens:

  1. Is the work repetitive in nature? (in which case, something that should be automated)
  2. Is the work a high-value activity? (if not, why am I doing non high-value activities?)
  3. Does the work create greater capability? (for me, the team, the organization, etc.)
  4. Does the work play to my strengths? (if not, who is a better resource or provider.  You grow faster in your strengths, and in today’s world, if people aren’t giving their best where they have their best to give, it leads to a low-impact team that eventually gets out-executed, or put out to Pasteur.)
  5. Does the work lead to world-class impact?  (When everything gets exposed beyond the firewall, and when it’s a globally connected ecosystem, it’s really important to not only bring your A-game, but to play in a way where you can provide the best service in the world for your specific niche.   If you can’t be the best in your niche in a sustainable way, then you’re in the wrong niche.)

I find that by using this simple lens, I tend to take on high-value work that creates high-impact, that cannot be easily automated.  At the same time, while I perform the work, I look for way to turn things into repetitive activities that can be outsources or automated so that I can keep moving up the stack, and producing higher-value work … that’s more human.

Categories: Blogs