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 to Seek, Seed, and Scale Innovation

change

The Change Maker’s Playbook

Innovation is dynamic, iterative, and even messy – but with the vast problems facing the world, and opportunities to harness people’s creativity, passion, and desire to make an impact, there has never been greater potential to make a dent in as-yet unsolved economic, social and other issues. Leadership qualities, not always and not simply technology, are the essential ingredients.

I recently spoke with Amy J. Radin, author of The Change Maker’s Playbook: How to Seek, Seed and Scale Innovation in Any Company. Amy is a nationally recognized Fortune 100 Chief Marketing and Information Officer.

 

“Purpose defines what you stand for and why your business exists.” -Amy J. Radin

 

The Power of Purpose

I love this line in your new book: “Purpose defines what you stand for and why your business exists.” Tell us more about the power of purpose and why it’s so important to change makers.

Purpose defines the marketplace problem the change maker wants to solve. It’s why they pursue an innovation.  They see the need to create something new, to fix something they see as really broken.

Purpose is grounded in emotion, but it’s far from touchy-feely. Purpose:

  • Focuses everyone on unifying beliefs, makes collaboration the norm, and aims resources at the vision and nothing else.
  • Minimizes the corrosive effect of internal politics — everyone is committed to the same point on the horizon. Purpose is an energy booster.
  • Sets the goal post on achieving aspirations to meet real market needs. Of course, financial results matter, but the purpose-driven team delivers financial impact and sets itself up to meet broader stakeholder needs.

 

“Purpose means knowing what you stand for, why you want to exist.” -Amy J. Radin

 

Resourcefulness is a key behavior of change makers. How should leaders encourage resourcefulness?

Resourceful leaders are those who can find a path forward no matter what. Doing so means they are making progress even though they have what can look like severe resource shortages.

Much of anyone’s resourcefulness comes from an ability to help everyone in their orbit to be more resourceful.

First, be a role model of resourcefulness behaviors.  My favorite example of all time is one I uncovered while doing the research for The Change Maker’s Playbook: Drew Lakatos co-founded ActiveProtective, a company working on an innovative device – think of it as the wearable equivalent of an inflatable air bag — to attack the growing medical and social crises caused by millions of seniors’ falling every year in this country. He had purpose and passion, but lacked capital.  So, he went around to junkyards one Saturday morning, and extracted non-bloody air bags from wrecked cars. Then he combined these with bicycle tire inner tubes, working with his local tailor to create components of early proof-of-concept designs – for a few dollars apiece. They were convincing enough to win critical support to get to the next steps.

Second, when assessing potential hires, listen for stories of how they have demonstrated resourcefulness in their lives. If you don’t hear evidence of real tenacity, move on.

Third, be open-minded about how things are done, not just what is getting done. Being resourceful means finding and supporting non-obvious ways to accomplish milestones and achieve goals.

 

“Resourceful leaders treat others with respect and value people as people, and as a result inspire and attract others to enable their purpose.” -Amy J. Radin

 

Fourth, promote a culture where seeking help is a mark of leadership and strength, not a sign of weakness. I see organizations where people are afraid that they will be fired if they admit ignorance. I see cultures punishing people who admit they don’t know something or would like help. These are environments where innovation cannot ever be successful.

 

“Resourceful leaders are those who can find a path forward no matter what.” -Amy J. Radin

 

Lessons from Edison

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

6 Leadership Strategies To Build A Bulletproof Business

road to excellence

How to Achieve Organizational Excellence

 

Excellence.

It’s the focus of every leader. It’s the aspiration of those who seek to make a mark.

How to achieve organizational excellence is the subject of a new book by David Mattson, CEO of Sandler Training. THE ROAD TO EXCELLENCE: 6 Leadership Strategies To Build A Bulletproof Business is the result of his research and experience as a CEO of a global organization. I asked him to share some of his leadership insights as well as some blind spots that can catch business leaders off guard with potentially disastrous consequences.

 

“Effective leaders are always in recruiting mode, not just when an opening appears.” -David Mattson

 

Leadership Blind Spots

The first part of your book spotlights the blind spots that many have in building a culture of excellence. Of these 14, what blind spots do you see leaders making most often when it comes to leadership excellence?

The most common mistake – and it seems to be universal across all industries – is the failure to make recruiting the very best people an ongoing, continuous priority. Effective leaders are always in recruiting mode, not just when an opening appears. They build up a bench of talent, so that when there’s an unexpected departure by a key person, there’s no crisis that threatens the entire organization. If you look at the top-performing companies that dominate, you almost always find that they’re the ones that have made recruiting the very best people an ongoing organizational priority. You are always, always looking for the best talent.

 

“All who have accomplished great things have had a great aim, have fixed their gaze on a goal which was high, one which sometimes seemed impossible.” -Orison Sweet Marden

 

Know the 6 P’s

Clarity: How Smart Leaders Achieve Outstanding Performance

clarity

Achieve Outstanding Performance

Lean management expert Karen Martin tackles the problem so many organizations and leaders face: a lack of clarity. In her new book, Clarity First: How Smart Leaders and Organizations Achieve Outstanding Performance, she gives specific recommendations on how to improve clarity and thus your overall performance.

The book helps leaders identify the organization’s purpose, set priorities, and build problem solving capabilities while developing personal clarity to be a more effective leader.

I recently spoke with Karen about the importance of clarity and the role it plays in leadership and organizational success.

 

“Clarity, in contrast, feeds an organization in the same way that fertilizer feeds soil.” -Karen Martin

 

The Importance of Clarity

What are some of the effects of a lack of clarity?

Lack of clarity touches organizations in small, daily ways and in large ways that introduce risks to customer satisfaction, the employee experience, the balance sheet, and compliance. An example of a “small” issue might be a customer problem that remains unsolved because no one knows who owns it. Larger problems brew when various parts of an organization work at cross purposes from each other. In the end, a lack of clarity often results in runaway expenses, market share loss, high turnover, and sluggish innovation, to name a few.

Those outcomes are often caused or at least exacerbated by the incremental accumulation of ambiguity about work that happens closer to the customer. For instance, a lack of clarity about customer requirements result in products that don’t meet true customer needs. It results in poorly designed and poorly managed processes that require heroics to execute. It results in excessive rework or productivity-sapping time spent clarifying what should have been clear to begin with. In a low-clarity environment, margin and morale erode because people do work that doesn’t fit together and doesn’t move the organization toward a common performance goal.

Clarity, in contrast, feeds an organization in the same way that fertilizer feeds soil. It nourishes everything visible, as well all the quiet and invisible activities that take place out of sight to make an organization outstanding, such as decision making. When you have it, there is greater alignment, greater collaboration, higher levels of innovation, and so on. When you don’t have it, everything becomes stressed to the point that even basic decisions require more effort that they should need.

Imagine you are leading an organization filled with well-meaning and talented people in a growing industry, but you haven’t developed a culture where everyone values holding clarity front-and-center in everything they do—foundational clarity like: why you are in business, what the organization’s top priorities are, how the organization is performing both operationally and financially, and the level of performance it wants to achieve, and other important questions that drive organizational alignment and outstanding performance. Without clarity on these issues, in the near-immediate term, the relationship between the organization and its people begins to break down. Team members begin to feel unsure that their work produces customer value or contributes to organizational success. Such uncertainty leads to frustration, low morale, and eventual disengagement, creating low productivity, talent turnover, poor customer service, loss of market share, eroded margins, and so on.

To be clear, I emphasize words such as everyone and everything because clarity requires it. Leaders are in a privileged role. You may feel that you DO have clarity. But if your direct reports don’t, or if their beliefs about the priorities of the organization are different from those of the peers they work with on a daily basis, then the organization as a whole lacks clarity even if there are pockets of clarity here and there.

 

“Purpose is your why. Why does your organization exist? Why do you deliver the particular goods or services that you do?” -Karen Martin

 

Six P’s of Organizational Clarity