What’s Your Digital Business Model?

Transform Your Business

Digital transformation. We read about it often. Organizational leaders struggle to determine the possible threats, the impending changes needed, the opportunities that are possible.

Peter Weill and Stephanie L. Woerner’s new book, What’s Your Digital Business Model?, provides a strategic framework for thinking about these issues. Peter is a Senior Research Scientist and Chair of the Center for Information Systems Research at the MIT Sloan School of Management. Stephanie is also Research Scientist at the same institution with a specialty focusing on how companies manage organizational change caused by digital disruption.

I had the opportunity to speak with them about their research and new book.

 

Rate Your Digital Readiness

How would you rate most organizations readiness for the era of digital disruption that we are in and are facing?

Most organizations we talk to and research know they have to change to stay relevant and have improved in some areas (perhaps they’ve worked on business process optimization or they’ve automated a lot of processes). However, as customer experience demands have increased, we find that many older, bigger companies have not made the improvements and changes needed to address those demands. Plus the leaders of the average large company (more than $7B in revenue) identified that 46% of their revenues are under threat over the next 5 years if they don’t change.

 

Fact: large companies predict 46 percent of revenues are threatened in the next 5 years absent change.

 

How was the research developed?

The book is based around six questions we think every executive and organization has to be able to answer in order to be competitive in the digital economy. We started this research by interviewing leaders from large, global companies, asking them to describe their most important digitally-enabled business transformation initiative. From there we developed a model, tested the preliminary findings in more than 50 workshops with senior executives, identified capabilities needed, conducted several surveys to test those capabilities and show links to financial performance, and interviewed many companies to help us understand what it takes to transform a business. The book resulted from five years of research which shows that the senior executives of top performing firms honestly answered the six questions. To help, each chapter concludes with a self-assessment on one of the six questions. The reader can then compare their self-assessment results to top financial performers to help leadership teams understand the gap they have to close.

 

Needed: Honest Conversations about the Future

Of the six parts, is there one step that more organizations get stuck in than another?

Probably the hardest question for most organizations is having an honest conversation about whether they have leadership, at all levels, who will persevere and successfully deliver the business transformation. Along the way the culture will have to change and adapt to the new digital business model and often this means changing people at the top. But it is not just the top layer of leaders that has to change. Successful transformation requires getting the whole company to behave differently – from the board to the lowest level of employees. For example, DBS Bank in Singapore, which was one the Euromoney’s most digital banks in 2016 has managed to get 14,800 of their 22,000 people involved in a digital innovation activity every week.

 

“Successful transformation requires getting the whole company to behave differently – from the board to the lowest level of employees.”

How Smart Professionals Change Careers and Seize Success

job switcher

Make a Career Change

If you’ve been itching to make a change, but don’t know where to start, or feel like you’re stuck in a career path that no longer makes sense, you’re reading the right article at the right time.

Dawn Graham, PhD is a Wharton Lecturer and EMBA Career Director, coach, author, Forbes Contributor, and Sirius XM Radio Host. Her new book, Switchers: How Smart Professionals Change Careers and Seize Success, is a resource for anyone looking to change career directions in a purposeful way.

 

Switchers Fact: Most Americans spend around five years engaged in some type of job activity.

 

You have a unique vantage point both due to your leading SiriusXM Radio show and your role as Director of Career Management for the Executive MBA Program at Wharton. What trends are you seeing across professional job searchers today?

People want a job that inspires them! Compensation will always be important. However, professionals are willing to make some sacrifices to find work that is meaningful or flexible, or that puts them on the path to a career that is more satisfying.  Many mid-career professionals landed in a job after college and climbed the ladder, only to realize that the path they chose isn’t fulfilling. Others have discovered careers that may not have existed a decade ago and still others have experienced life changes, such as having a family, which have led them to seek something more flexible.

 

“Lifetime regrets are more painful than delayed gratification.” -Dawn Graham

 

What is the “new normal” in America for most people in terms of changing jobs?

The great news for career switchers is that the market is becoming more accepting of trying new paths. The rise of the gig economy, portfolio careers, and entrepreneurial pursuits have opened the door to non-traditional career paths. The average tenure in a company is about 4.2 years, so long gone are the days of the 30-year retirement gift. In fact, while yearly job hopping is still frowned upon by employers, so is staying at a company for too long, especially if you’ve not shown significant progression or diversity in your assignments. After 10 years, hiring managers in new companies start to wonder if you’re adaptable enough to function effectively in a different culture, so it’s more important than ever today to pay attention to taking charge of your career.

 

Research: up to 80 percent of employee turnover is due to poor hiring.

 

How difficult is it to change careers today?

A Digital Wake Up Call

digital darwinism

Digital is Everything

 

“Digital isn’t a thing, it’s everything.” That’s the first line I read on the back cover of Tom Goodwin’s new book, Digital Darwinism: Survival Of The Fittest In The Age Of Business Disruption.

That’s the type of attention-getting line that speaks to the massive transformation in today’s organizations.

Change or become extinct is a powerful message.

Tom is the EVP, Head of Innovation for Zenith Media. His role is to understand new technology, behaviors and platforms and ideate and implement solutions for clients that take advantage of the new opportunities these make possible. He was also voted the #1 voice in Marketing by LinkedIn with over 580,000 followers on the platform. An industry provocateur and commentator on the future of marketing and business, Tom recently wrote Digital Darwinism as a wakeup call to traditional businesses.

I recently spoke with him about his book.

 

““Digital isn’t a thing, it’s everything.” -Tom Goodwin

 

The subtitle of your book is “Survival of the Fittest in the Age of Business Disruption.” What defines the fittest?

I believe the fittest companies are those with the balance of a solid business plan for today and for the future. This can either be because they’ve established a defendable niche for now and ahead (like Amazon or Tesla) or because they have a team and culture that is able to adapt to the changing marketplace. Good examples of this are Facebook, Netflix, and Google. Fitness both in nature and business is about agility and the ability to change as the world does, but also about the quality of the business model today. There are too many companies that are widely celebrated, like Dollar Shave Club or Movie Pass, that offer hockey-stick user growth and happy customers, but don’t appear to have a semblance of a business model that can ever make money.

 

“The fittest companies are those with the balance of a solid business plan for today and for the future.” -Tom Goodwin

 

Innovate with Purpose

Mature companies often have a huge desire to innovate and launch various initiatives. What are some of the biggest mistakes you’ve seen them make in their pursuit of innovation?

Most innovation failures come from companies who do one of two things wrong. The main one is not going deep enough. They offer surface level improvements on the façade of a deeply troubled foundation. Retailers who need to close stores or entirely rethink distribution models or procurement flows, end up making a store in San Jose with a smart mirror, as it’s way faster and cheaper and offers distractions. Or car companies that celebrate apps where you can start engines remotely, while they are behind on electric propulsion. The issue is that most CEOs don’t have the time or thirst for risk to make proper changes.

The other issue is innovation with no sense of purpose. It’s adding a chatbot because your boss read about them one day. It’s an airline launching a mood-sensing blanket that gets press. It’s the VR experience to try to get promoted. We need to know why we are innovating and maximize against that.

 

“There are too many companies that are widely celebrated that offer hockey-stick user growth and happy customers, but don’t appear to have a semblance of a business model that can ever make money.” -Tom Goodwin

 

Common Traits of Disrupters

How Great Leaders Bring Out the Best in Others

influence

Bring Out the Best

As leaders, we are often wondering what the best way is to bring out the best in our organizations. We want to help people exceed all expectations and accomplish more than they thought possible.

Yet, the current feedback mechanisms and performance appraisal processes in our organizations often don’t work toward that goal. In fact, Tim Irwin, author of Extraordinary Influence: How Great Leaders Bring Out the Best in Others, argues that they do just the opposite. Tim Irwin, PhD is an author, speaker, and leading authority on leadership.

I recently asked Tim to share his perspective on negativity and criticism at work.

 

“Leadership is influence-nothing more, nothing less.” -John Maxwell

 

What are a few things we often get wrong with criticism in the workplace?

Our brains are hardwired to detect anything that threatens our physical or emotional safety. When a person senses criticism, it engages a “negativity bias” in our brains and generally shuts down the parts of our brains responsible for creativity and problem solving. This is just one reason the often-used term “constructive criticism” is such an oxymoron.

 

Research: Science has revealed that affirmation sets in motion huge positive changes in the brain.

 

Avoid Words of Death

What are Words of Death?

The workplace, and society in general, are filled with critical words and phrases. For example, in some organizations, the phrase “One Throat to Choke” is used to describe the need for accountability on a project or other initiative. While maybe colorful and entertaining at some level, the use of these words and many others diminish us, at least at an unconscious level. Leaders routinely use statements such as, “I’m going to hold your feet to the fire,” (a torture method in the middle ages) to motivate employees and presumably to get them to work harder. Our brains thrive on affirmation not threats.

 

Research: Affirmation activates areas of the brain associated with calmness and openness to new ideas.

 

If we are on the receiving end of them, what can we do to limit their impact on us?

If it’s our present boss, we may learn some valuable lessons about how not to lead and motivate others. If a “Words of Death” culture prevails in our organization, we may need to consider, “Do I want to spend 40 to 60 hours a week or more in such a toxic environment?”

 

Share an example of “alliance feedback” that works to bring out someone’s highest potential.influence

Recently I met with a senior officer of a company who had some significant deficits in “Emotional Intelligence.” I could have said, “You have the empathy of a fence post, and no one trusts you.” Those were actually true statements. Would he have heard my feedback and acted on it in a conscientious manner? Doubtful. Instead, I said, “I know you aspire to a larger role in your company, and I think that is a worthwhile and achievable goal. In order to realize that aspiration, I recommend you work on collaborating with your peers more effectively by appreciating the challenges they face in reaching important goals.” What ensued was a very productive conversation about specific actions he could take to collaborate more effectively. He was eager to learn and not defensive in the slightest. The research is compelling that connecting feedback to personal hopes and aspirations bypasses the part of our brain that stays in hyper defense mode.

 

3 Faces of a Leader

4 Commitments of a Winning Team

Advice from an NBA All-Star

 

The very first thing you notice when you see Mark Eaton is his height. At 7’4” that’s to be expected. (That’s not a typo.)The Four Commitments cover - highres

His career in the NBA is well-known: NBA All-Star, leading the league in blocked shots in four seasons, a five-time member on the NBA all-defensive team. He has two records including the most blocked shots in one season (456) and career average blocked shots (3.5).

His career continues as a motivational speaker, entrepreneur, and now, author.

His book, The Four Commitments of a Winning Team, is a blend between his intriguing personal story and his principles for teambuilding. Even if you don’t follow professional basketball, I am certain you will enjoy it.

In our interview, you will learn:

  • What Wilt Chamberlin told him in five minutes that changed everything
  • Why he dreaded his height for much of his life
  • How an auto mechanic who wasn’t interested in basketball became an NBA All-Star
  • How the never-ending persistence of a coach changed the course of his career
  • What a winning team looks like
  • Why teamwork is misunderstood

 

The Four Commitments of a Winning Team

Commitment #1: Know your job.

Commitment #2: Do what you’re asked to do.

Commitment #3: Make people look good.

Commitment #4: Protect others.

 

Quotes

“A team is a group of people who commit to each other.” -Mark Eaton

 

“Good things take time, as they should. We shouldn’t expect good things to happen overnight. Actually, getting something too easily or too soon can cheapen the outcome.” -John Wooden

 

“You can’t always control who your boss is or your work environment, but you can control your approach to personal preparation, teamwork, and dedication to your job.” -Mark Eaton