Why Digital Transformation Fails ATD 2018 · 'dwd )urp 0ruh 7kdq /hdghuv 5hyhdov :k\ 'ljlwdo 7udqvirupdwlrq )dlov 'hyhorsphqw 'lphqvlrqv ,qwhuqdwlrqdo ,qf $oo uljkwv uhvhuyhg

$Page 1: Why Digital Transformation Fails ATD 2018 · 'dwd )urp 0ruh 7kdq /hdghuv 5hyhdov :k\ 'ljlwdo 7udqvirupdwlrq )dlov 'hyhorsphqw 'lphqvlrqv ,qwhuqdwlrqdo ,qf $oo uljkwv uhvhuyhg$
Data From More Than 25,000 Leaders Reveals Why Digital

Transformation Fails

Session SU208

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Data From More Than 25,000 Leaders Reveals Why Digital

Transformation Fails

©Development Dimensions International, Inc., 2018. All rights reserved.2

Presented by: Evan F. Sinar, Ph.D.Chief Scientist & VPDDI@EvanSinar

Rebecca L. Ray, PhDExecutive Vice President, Knowledge OrganizationThe Conference Board@RebeccaLeaRay

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Leadership Counsel + Solutions4Strategy4Selection4Development4Succession

45+ years of research and innovation = the most accurate assessment and learning in the world.

Build a strong pipeline of leaders who propel your business

Execute globally with confidence across 93 countries

Leadership insights with our experience, science & technology

Principles behind our services transform lives in and out of the workplace

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PROVIDER CAPABILITIES:

• Leadership Assessment

• Competency Modeling

• Learning Design

• Development of Leadership Capability

• Performance Management

• Career Management

• Change Management


Global + Diverse

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4 Key Themes for Today’s Presentation

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> Leaders at the Core > Digital + Data

> Growth + Potential > The HR Opportunity

Foundational issues of leader roles, readiness, and strategy

Leadership implications of the digital and data-rich business context.

Proven practices for aggressively growing leader talent and bench.

How HR can elevate and extend its influence on business outcomes.

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Leaders at the Core

For CEOs, It’s Still About Developing Leaders Strategy is Nothing Without Effective Leaders to Execute

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Leader Capability Stalled Again It’s Time to Close the Gaps

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> Leadership Quality: Little Progress Six Years Running

Over the last decade, while investments in leadership development have been steadily increasing, the rate of leadership readiness has been steadily decreasing.

DDI Global Leadership Forecast 2011 - 2018

% of Organizations with Sufficient Bench Strength

2011 2014 2018

30%

20%

10%

18%15%

14%

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Where to Start

Analyze strengths and gaps in your leadership bench versus business goals

Keep an eye on disruptions to business, adjusting success requirements accordingly

Become a champion at using predictive analytics to improve hiring decisions

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How to Excel + Differentiate

Develop a long-term leadership strategy connected to your business plan

Integrate talent systems - superior development won’t compensate for poor hiring systems

Measure the impact of leadership development efforts – improvements won’t come unless you know what a worthwhile investment is!

Leader Capability Stalled Again

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Digital + Data

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90% of CEOs believe their company is facing disruptive change driven by digital technologies. - Deloitte

Digital-Era LeadershipReady or Not, Digital Competence is Already Differentiating Winners from Losers

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> Traditional Leadership Competencies vs. a New Set of Critical Knowledge, Skills, and Abilities - and These are Projected to be Even More Important in the Next 3 Years

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Digital-Era LeadershipReady or Not, Digital Competence is Already Differentiating Winners from Losers

Where to Start

Identify leader roles and readiness to pioneer digital transformation

Rethink competencies to include emergent knowledge and skills

Move beyond simply “doing digital” to “being digital”

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Digital-Era Leadership

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Consider the roles of external hiring versus internal promotions to acquire a digital mindset

Seek and develop leaders toward a vision for how technology can extend the company’s competitive position

Foster a digital ecosystem for leaders – new approaches to learning, rewards, and use of space

Digital-Era Leadership

Leading with Data-Driven Decisions The Company Cultures Driving Higher Returns on Data

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> The Cultural Factors that Make Data-Savvy Organizations Unique

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Leading with Data-Driven Decisions The Skills Leaders Do (and Don’t) Connect to Data-Savviness

Where to Start

Use data to create a common culture for understanding employee and customer views

Build digital skills at both a personal and a leadership level

Don’t neglect the execution element – to convert data insights into operational plans

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Leading with Data-Driven Decisions

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Don’t overlook empathy, connectivity, and collaboration – strengthen awareness of the human side of data gathering and use

Implement Agile project management techniques to flow Big Data into actionable use

Prepare for AI – efficient and ethical artificial intelligence use needs a critical mass of data-savvy leaders

Leading with Data-Driven Decisions

What Does a Digital, Data-Savvy Organization Look Like?

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Experimentation MindsetEmbrace Failure While Innovating

Strong Company CultureSeen as Agile in the Eyes of Leaders

Collaborative LeadershipAligned Toward Future Vision

Data Over Instinct for DecisionsGroups Work Synergistically

Analytics-based Leadership ProgramsHigh-Quality Development Plans

Learning Experience ManagerPersonalized, On-Demand Learning

Leaders Accountable to Grow OthersDiagnostic Tools for Skills/Personality

Peer Coaching CultureMore Leader Hours in Development

How They Operate How Leaders Grow

The Rise of the Digital Natives Are Millennials Ready to Lead?

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> As a Leader, How Prepared Are You to Meet the Following Business Challenges for Your Organization?

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The Rise of the Digital Natives Are Millennials Ready to Lead?

Where to Start

Build programs that leverage Millennial strengths in digital literacy and comfort with using data to guide decisions can enhance digital success rates

Use reverse mentoring to promote cross-generational learning on digital literacy, social media savvy, and organizational knowledge

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Define your company’s current digital capabilities and what’s needed to move the organization forward – then articulate a plan for leader skill-building

Ensure that leaders can lead with digitization - involve a cross-generational group to develop a digital talent strategy

If additional expertise is needed, evaluate options for building or acquiring it

The Rise of the Digital Natives

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Growth + Potential

Top 5 Types of Learning Most Sought-After by Leaders

Meeting the Needs of the Modern Learner Technology gains its footing, but it’s a slippery slope

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5 Types of Learning Leaders Want More than They’re Getting

1. Personalized Learning

2. Coaching from External Mentors

3. On-Demand Learning

4. Long-Term Developmental Assignments

5. Mobile Device-Based

Meeting the Needs of the Modern Learner Technology gains its footing, but it’s a slippery slope

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4 Types of Learning Leaders Get More than They’re Wanting

1. Coaching from Manager

2. Internally-Developed Learning Material

3. Books/Articles

4. Self-Study

Where to Start

Pursue personalization, by far the most dominant feature learners want most

Restore the brand of manager coaching – currently neutral but doesn’t need to be

Understand the learning problems technology will –and won’t – solve for learners

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Meeting the Needs of the Modern Learner

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Make learning more on-demand and tailored; less self-study and generic

Experiment with gamified learning –it’s sought-after by Millennial leaders

Extend learning beyond the classroom –tech prompts, practice make learning stick

Appoint a dedicated Learning Experience Manager (designs and sequences personalized, engaging learning)

Meeting the Needs of the Modern Learner

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5.3x

2.5x

2.6x

With this Role in Place, How Much More likely to…

Outperform Peers Financially

Have a Strong Leadership Bench

High Leadership Program Quality

37%

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With Critical Positions Unfillable, The Risk is Real

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>Only 43% of

Critical Positions Can be Immediately Filled by Internal Candidates

Rethinking Leadership Potential Why Broader Is Better

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4 Practices Specific to Managing High-Potentials

1. Unbiased HiPo identification2. Personalized HiPo

development3. Consistent HiPo

identification4. Objective assessments of

HiPo capabilities, readiness

Rethinking Leadership Potential Why Broader Is Better

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6 Practices Spanning All Leaders

1. Fair/objective talent review2. Fair/transparent

performance management3. Competency-centric talent

management4. Leader strengths/

weaknesses diagnosed5. Systematic/strategic talent

planning6. Up-to-date talent status

Less effective when focus is on replacements for senior leader and executive roles

More effective when focus is on the full pipeline—from front line to executive

DDI GLF 2018

More About HiPo Programs…

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Where to Start

Broaden the potential pool – it’s financially irresponsible to limit this view to the top level

Target gender diversity, not just numbers in hi-po pools

Don’t invite more without building data-driven objectivity and transparency

Use scalable tools for diagnosis deeper into the pipeline

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Rethinking Leadership Potential

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Prioritize hours over dollars: hours spent on hi-po development have a stronger link to outcomes than money

Prioritize immersive, personalized learning to boost hi-po success rates

Use analytics to track return on the potential investment – few currently do

Rethinking Leadership Potential

The HR Opportunity

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HR’s New Role Are They Up to the Challenge?

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> Frequency of HR Roles: HR Self-Perceptions and How Leaders See HR

Fewer Business Leaders see HR in a Strategic Role

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45% Decrease in number of leaders who view HR as Anticipator

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8 Practices that HR Anticipators Do More Effectively

Percentage of HR that report a strong link between strategic business and talent planning.

Where to Start

Take a step back and gauge which of the three roles best reflects HR at your company?

Adopt this research’s eight evidence-based HR practices to move to the Anticipator role

Ensure HR’s deep involvement in strategic planning

Give business leaders skills and tools to grow self and others

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Ensure that you’re building stronger predictive analytic team capability

Consider rotating respected line leaders through the HR function

Reinforce HR ownership for creating business value through talent

Deploy smart technologies to free up HR professionals’ time to focus on the value-added tasks that their businesses require

HR’s New Role

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> HR Leaders Versus Other Leaders on Key Challenges

HR Under Pressure Falling Behind in the Race to Transform

Where to Start

Build capability in business acumen, advanced analytics, and new technologies – the areas where HR feels pressured and has a poor reputation

Stop the pattern of HR leaders under-investing in their own continuous learning as they strive to meet the learning needs of other functions

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Improve HR’s digital leadership skills –in which they are less prepared than leaders in other functions

Advance HR’s technology and data capabilities to guide development of others and manage impending radical changes in HR technologies

Establish HR’s clear ownership for their companies having the talent to meet future business challenges

HR Under Pressure

Join the Conversation:#GlobalLeadershipForecast

Learn More and Get the Report: www.ddiworld.com/glf2018

Documents

Why Digital Transformation Fails ATD 2018 · 'dwd )urp 0ruh 7kdq /hdghuv 5hyhdov :k\ 'ljlwdo 7udqvirupdwlrq )dlov 'hyhorsphqw 'lphqvlrqv ,qwhuqdwlrqdo ,qf $oo uljkwv uhvhuyhg