How to Navigate the Digital Tsunami

Digital Tsunami

The Age of Surge

What do Netflix, Spotify, and Google have in common? They all learn, innovate, and continuously adapt better, faster, and cheaper than traditional companies. Moreover, they use digital technology to innovate, disrupt, and grow in radical and dynamic ways. That’s how they surge ahead of traditional companies.

In THE AGE OF SURGE: A Human Centered Framework for Scaling Company Wide Agility and Navigating the Tsunami of Digital, organizational experts Brad Murphy and Carol Mase show how companies can leapfrog the competition by transforming not only how they develop products and services but also the organization itself around the digital paradigm.

“Leaders need to nurture a new value system that says your value to the organization should no longer be anchored to your job title or role.” -Brad Murphy and Carol Mase

 

How to Use Surge to Your Advantage

What is “Surge” and how do you use it?

SURGE is a framework that provides the tools for navigating complex adaptive challenges in large corporate businesses. The digital marketplace continues to be highly disruptive to the ways that companies engage with customers, innovate, and remain relevant. The traditional approach to navigating disruptive change has been to seek out a prescriptive formula and apply it to the whole company. The journey of transforming to a digital enterprise, however, is not a process upgrade or best practice adoption problem.

In our work with large companies, what we saw as a consistent point of failure is them seeking a paint-by-numbers formula—agile process frameworks being a classic example. Despite making significant financial and organizational investments, they’re still not producing the customer experiences we expect from digital native companies like Amazon, Netflix and Google. We saw a clear need to help leaders recognize that this is a journey, not a reboot. Digital has changed the dynamics of the marketplace forever.

 

“Digital has changed the dynamics of the marketplace forever.” -Brad Murphy and Carol Mase

 

How do traditional companies versus digital native companies differ when they view impending change?

The most profound difference is that digital native companies are designed for change. Traditional companies are not. If you are Amazon or Google, one of the fundamental principles is that the space you are seeking to deliver products and services into is subject to continuous change. Therefore, the organization itself needs to be competent in enabling this change to occur. Companies can no longer accurately predict the future. They must learn to co-create products and services with their customers by evolving rapidly with them.

Contrast that with most traditional companies that have built a legacy based on a physical experience. Banks have branches, car companies have manufacturing plants, retail stores have buildings. Physical things take a long time to plan, build, and establish. As consumer preferences have increasingly shifted to adopting digital platforms, these companies have bolted on the veneer of a digital experience. Their preference is to avoid change. So you have a conflict between consumers who have gone digital and the fundamental structure of the business, which was built for a physical world.

 

“The ability to role shift is essential to a successful business in a digital world.” -Brad Murphy and Carol Mase

 

Thrive in the Midst of Uncertainty

Is Your Company Ready for the Next Cyber Threat?

digital threat

Are You Prepared?

Security incidents are up 66% year-over-year since 2009. Despite this alarming statistic, 80% of CEOs report that they are confident in their company’s cybersecurity.

Cybercrime is on the rise.

Are you prepared? 

Cybersecurity expert Ray A. Rothrock shares the tactics used by hackers and then arms management with the tools to prevent these hacks in his new book Digital Resilience: Is Your Company Ready for the Next Cyber Threat?

 

76 percent of respondents to Cyberthreat Defense Report indicated that they were successfully compromised by a cyberattack.

 

Why Leaders Must Pay Attention

Ray, your book is compelling. It starts by scaring us beyond belief. For those who haven’t read your book yet, would you go ahead and scare our readers…

By the end of 2016, one category of cyberattack on business —ransomware infection– topped 4,000 instances per day. One publication, CSO, recently posted an estimate that cybercrime damage will hit $6 trillion by 2021 and, by 2022, the human attack surface, the potential victim pool, for cybercrime will reach 6 billion, which is 75 percent of the projected 2020 world population of 8 billion.

So, if you want to be scared, chew on the incontrovertible fact that you and your business are being attacked today, and you will be attacked tomorrow and the day after and the day after that. Obviously, you need excellent cybersecurity—firewalls, antivirus software, antimalware software, automatic downloading and installation of the latest security patches for all your software, and a workforce educated in basic digital hygiene. Yet the hard truth is that even the best cybersecurity will be penetrated. Some of those daily attacks will pierce your perimeter defenses.

Mediocre security will stop some attacks. Good security will stop more attacks. The best security will stop even more. But, whether mediocre or exceptional, all security will ultimately fail. You will be breached, and, if you depend on security alone, the effects of the next breach—the next inevitable breach—may be annoying or may put your business at great risk. This is why you need both excellent digital security and excellent digital resilience.  In short, you need to be prepared because you will be attacked.  Resilience starts with preparation.

 

“Resilience starts with preparation.” -Ray Rothrock

 

Shore Up Your Resilience

Think Like a Navy SEAL to Achieve Greatness

navy seal

Think Like a Navy SEAL

This is not your typical career: after graduation, start as a CPA with a prestigious accounting firm, then go back to school at night for an MBA at NYU Stern School of Business, and leave it all behind to become a Navy SEAL. After full-time active duty, show your entrepreneurial side by co-founding Coronado Brewing Company, NavySEALS.com, and then other businesses like SEALFIT and Unbeatable Mind.

That’s the unconventional career of Mark Divine.

I love to learn from people with varied experiences, and Mark is in a rare category. Of all the people I’ve met, no one has quite this type of resume.

His book, The Way of the SEAL, caught my attention a few years ago, and he is now re-releasing it in a second edition.

Truth be told, I’d much rather read his book than go through his brutal training program!

I recently caught up with him to talk about his work and his new book.

 

You were already a successful consultant when you decided to join the Navy and become the best as a SEAL. What drove you to make this decision? 

Shortly after starting my job as a CPA and consultant with PriceaterhouseCoopers (I was with Coopers at the time), I began a practice of Zen meditation with a martial arts grandmaster. Though I was a competitive athlete growing up and in college, meditation was new to me, and at 21 years old it had a powerful neuroplastic effect on my mind’s development. What I experienced as a result of extended practice over several years was increasing clarity and ability to see how the choices I had made subconsciously had driven me into this career that I did not feel inspired by. So I began to challenge all of my assumptions and see them as biased. Then I pondered different questions, such as what is my true purpose or calling in life? I found that what I was called to do was serve as a warrior and leader… and the SEALs became my new focus. This experience taught me the powerful truth that we must all align with our calling, or what Buddha called “dharma,” to find true fulfillment in life.

 

Think Like an Elite Warrior

The subtitle of your book is “Think like an Elite Warrior to Lead and Succeed.” A powerful statement. How is our thinking directly tied to leadership?

We are all leaders and followers… leading our family, our corporate tribe or ourselves. Whether we do it well is another issue. To think like an elite warrior means to train your body-mind to be able to excel in an environment that is volatile, uncertain, complex and ambiguous. All Special Operators become masters in “VUCA” environments, and the business world is becoming a lot like the battlefield of the Spec Ops warrior (albeit less risky). If the corporate and entrepreneurial leader can learn to find clarity amidst the uncertainty and take powerful action in spite of ambiguity, then they will lead and succeed at an elite level.

 

Leadership Tip: Find clarity amidst uncertainty. Take action in spite of ambiguity.

 

Lead from the Front

How the Best Companies Stay Relevant

shift

How to Stay Relevant

The number one reason for organizational success or failure is the ability to stay relevant. Staying ahead of the continual marketplace changes may seem an impossible task. How do you continually evolve at a pace that keeps you ahead of the curve?

In SHIFT AHEAD: How the Best Companies Stay Relevant in a Fast-Changing World, authors Allen Adamson and Joel Steckel explore why some organizations can continually evolve to meet the times and the marketplace, and why others struggle to keep up. Allen is co-founder and managing partner of Metaforce and brings over thirty years of experience in building iconic brands. Joel is an expert on marketing research and branding. He is currently Vice Dean for Doctoral Education at NYU’s Stern School of Business.

I spoke with Allen about the book and their research.

 

“Focusing too much on the competition can lead to inappropriate shifts. It’s the customer that really counts.” -Adamson and Steckel

 

The Case of Blackberry

You share many examples and case studies about companies that just plain missed some key changes. Some ended up obsolete and others struggled for years. Would you share an example and what went wrong?

One of my favorite examples of “what went wrong” is the story of the rise and fall of Blackberry. For those who may not remember, Blackberry was once the indispensable mobile communication device of choice for heads of corporations, heads of state, and the Hollywood elite. It was an easy, secure and effective device that allowed workers to send and receive emails and phone calls while away from the office. The functionality of its tactile keyboard made typing easy, and it built its initial reputation on the concept of security. This was all before Apple and Android smartphones had taken hold.

The quick answer about why it fell so precipitously is that Blackberry’s inability to shift and move forward was caused by its own sense of invincibility, inward group-think, and general arrogance. With the rise of in popularity of iPhones and Androids, those at the helm saw only what they wanted to see. They considered these new devices not as significant competition, but as toys, a passing trend. They arrogantly laughed off the threat that was materializing in front of them instead of figuring out how to defend against it.  As we all know, not only were these smartphones built for ease of communication on multiple platforms, they were beautiful to look at. They became just too much to resist for even the most security-centric audience of users.

Too-little-too-late is what Blackberry eventually did in response, which was exactly what it shouldn’t have done. It began to chase the market with subpar versions of the competitors’ brilliant models, wrongly assuming that its core customers would follow with them. That did not happen. The producers of Blackberry should have doubled down on what made the product so vital to its initial loyal audience. It should have kept its focus on its point of relevant differentiation in the marketplace – security – and capitalized on it. No brand, product, or organization is invincible, especially when it dismisses the needs of its most loyal audience.

 

Shift Ahead

Build a Powerful Culture of Freedom and Responsibility

powerful

Powerful

Sheryl Sandberg of Facebook called the Netflix “freedom and responsibility” deck “the most important document ever to come out of the Valley.”

The document is 124 pages and it outlines the principles behind the unique corporate culture at Netflix. It has had reverberations far outside of Silicon Valley and way beyond Netflix itself. The principles have been debated and adopted by organizations throughout the world. It has been viewed over fifteen million times.

Patty McCord helped write the document. She worked at Netflix for 14 years as the company’s Chief Talent Officer. In her book, POWERFUL: Building a Culture of Freedom and Responsibility, Patty shares what she has learned about building a high-performance culture. I recently asked her to share more about her experience.

 

Challenge the Rules

You challenge many of the existing HR rules with new ways of thinking. What advice do you have for leaders that will help them embrace these changes?

It begins with questioning, literally, everything we do in HR: policies, procedures, guidelines, practices, permissions. What is the purpose of each of these activities? Do they achieve the desired result? If you started from scratch, would you embrace these methods?

 

“People can handle being told the truth, about both the business and their performance. The truth is not only what they need but also what they intensely want.” -Patty McCord

 

Many people think that compensation rules the day, but you have a different philosophy. What’s the “greatest motivation”?

I truly believe the greatest motivation is to be part of an amazingly talented team that gets real work done that matters to our companies and our customers.

 

“Be selfless in debating. That means being genuinely prepared to lose your case and openly admitting when you have.” -Patty McCord

 

Hold Rigorous Debates