HBR Webinar: On Digital's Frontline - How Company Culture can Make or Break Digital Transformation

On Digital’s FrontlineHow Company Culture can Make or Break Digital Transformation

Prof. Dr. Peter Vogel / www.petervogel.org / [email protected] / @pevogel

© Monique Mardus

DIGITAL TRANSFORMATION

INSIGHTS

Global use of digital technologies

Digital Transformation Insights

3© Peter VogelFebruary 23rd, 2016

Source: wearesocial (01/16)

Global monthly mobile data usage (in Exabytes = billion billion bytes)

Digital Transformation Insights


Data: Cisco

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

5

10

15

20

25

30

35

CAGR 53%


AFFECTS OUR LIVES

The way we learn and teach…

The way we interact as a family…

8Digital Transformation of the WorkplaceFebruary 23rd, 2016

The way our children spend their leisure time…


Huffington Post: “Our kids are getting less time outside than chickens or prisoners”Telegraph: ¼ of UK children spend less than 30 minutes outside playing… PER WEEK!!!


AFFECTS THE WORKPLACE

The way desks look like…


The way professional training works…

How Digital Transformation Impacts World of Work


The way call centers work…



The way knowledge diffusion works…


HERE COME THE

DIGITAL NATIVES…



Data: Cisco Connected World Technology Report 2012

Digital Natives


Are now entering the workforce!

Source: Pew Research Center

Digital Natives Baby Boomers

Wireless Internet 62% 35%

Texted in the past day 80% 35%

Median # daily texts 20 5

Have a social network profile 75% 30%

Posted to profile in past 24h 32% 9%

Active multi-tasking 87% 67%

Digital Natives


Source: UCLA

Internet naive

Internet savvy

Reading book Internet search

Technology changes our brain structure…


Data: Cisco Connected World Technology Report 2012

WHY DOES DIGITAL

TRANSFORMATION MATTER

TO ORGANIZATIONS?



Benefits of using mobile devices to connect employees and work

Data: HBR, 2015



Executives’ perspectives on which technologies are, or will be…

Source: HBR, 2015



“Digerati” firms outperform their peers in terms of…

Source: Capgemini Report 2014

Revenue Generation Profitability Market Valuation

DigeratiFashionistas

ConservativesBeginners

Effects of Digital Transformation on Lives & Work

The World of Work is Changing Fast…

30

Source: Dachis Group 2013

2012 2020

Lifespan of S&P 500 company 15 years 9 years

Portion of Digital Natives in Workforce

35% 75%

Speed at which data in the world doubles

2 years 3 months

© Peter VogelFebruary 23rd, 2016

Information overload

Constant distraction

Digital Dementia

Social media anxiety


Source: naldzgraphics.net

Digital Technology Affects Us & Our Employees



Text neck syndrome

Gameboy back

“Sitting is the new smoking” (Forbes, 2015)

Individuals use their smartphone 100-150 times per day

Sleep texting

Text claw

More• Digital Burnout• Phantom Phone Vibration• Depression• FOMO / FOBO /

Nomophobia• 2nd effects: Obesity,

cardiovascular problems

Gallup suggests employers lay off the workplace efficiencies for a minute and think about their employees' mental health. "Make well-being an organizational strategy” in order to combat disengagement.

Disengagement due to Burnout


Source: Gallup State of the Global Workplace 2011-2012

2008-2009

2011-2012

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

27

24

62

63

11

13

Actively Disengaged Disengaged Engaged

Productivity loss due to active disengagement

Disengaged Employees are Expensive!


United States $ 450 – 550 bn per year

Germany $ 150 – 190 bn per year

United Kingdom $ 85 – 115 bn per year



Series1-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

22%

21%

10%

-25%

-28%

-37%

-41%

-41%

-48%

-65%Low-Turnover Organizations

Safety Incidents

Patient Safety Incidents

Quality (Defects)

Absenteeism

Shrinkage

High-Turnover Organizations

Customer

Productivity

Profitability

Disengaged Employees are Expensive!


MANAGING DIGITAL

TRANSFORMATION &

OVERLOAD


Develop a Holistic Strategy for Digital Transformation

Physical: opportunities to regularly renew and recharge at work

Emotional: feeling valued & appreciated for their

contributions

Mental: opportunity to focus in an absorbed way on most important tasks & define when & where they get their work

done

Spiritual: doing more of what they do best and enjoy most, and by feeling connected to a higher purpose at work.


Source: NY Times & HBR, 2013

Employees are happier / more productive, when four needs are met:

Performance rather than presence Inspiring work environment and engaging colleagues Shared / flexible office desks Split between office & home work Opportunities to learn and self-develop Opportunities to “leave a dent in the (company) universe”

Digital detox culture & advisors Inhouse health consultants Services to boost work-life-balance Sabbaticals


This becomes highly relevant for Digital Natives


Sources: McKinsey, 2011, Alexandra Samuel, HBR 2015


- Focused work- Digital “distraction”- Digital detox

Example of a Daily Routine, combining…

Make digital detox part of your employee value proposition & recruiting Develop email policies (e.g. VW turns off servers after 5pm)

Put in place effective vacation policies

Teach your employees to delegate

Develop clear paid-time-off (PTO) policies

Make sure other employees respect each others time off

Managers must resist after-hour or weekend mails to their employees

Most importantly: Start at the top, and walk the talk yourself!


Help your Employees to Unplug

Intel’s 8-week mindful awareness program: designed to develop… Better focus Emotional intelligence Stress management

Insurer Aetna, retailer Eileen Fisher, Twitter, and others introduced… Yoga Self-hacking practices to help employees cope with fast-moving,

always-on workplace


Digital Detox Support at Work


Prof. Dr. Peter VogelPeter Vogel Strategy Consulting

Seuzach - Switzerland

Mail [email protected]: @pevogel

Web www.petervogel.org

Thank you for your attention

Acknowledgements: design work by Susanna Vogel

Business

HBR Webinar: On Digital's Frontline - How Company Culture can Make or Break Digital Transformation