Understanding The Challenges Of Leading People In A Digital Age

When Covid 19 struck the world, leaders were suddenly challenged with the titanic task of steering business resiliently amidst the pandemic. The Swedish Giant IKEA had always been digitally inclined, and a plan for their next large-scale transformation was in place for 2022 - 2023, but the health crisis spurred the furniture giant on. They hired a Chief Digital Officer who transformed their existing technological infrastructure, gave a boost to their online presence, converted the shops that were closed down because of the pandemic into order processing units, and business was back to more than usual.

Even though companies recognize how critical it is to be technology up-to-date and also understand what it takes to get there, translating the knowledge into action is a different story. Many companies like Ford, GE, PWC have struggled with digital transformations in the past, only to hit roadblocks. A 2020 study by Boston Consulting Group found that 70% of digital transformation projects fall short of their goals, even when leadership is aligned.

Leaders alone cannot create the magic; to be well prepared to deal with the boom of the digital age, there is need for a buy-in from the workforce too. While the digital age has made things automated and easier in many ways, regrettably, it has also taken away the human touch that existed during the pre-digital era. The meetings over meals, the get-togethers with families by your side, the annual Christmas party or office picnic; all this is now replaced with impersonal meetings over Zoom and Skype, emails and so on. It is imperative for organizations to foster digital leaders who can drive the change that the environment today expects, while at the same time, on-board staff to embrace the change and keep them inspired too.

The environment around us is changing rapidly and a plan for tomorrow may not work when tomorrow comes. Leaders need to be agile and adapt to what the ecosystem tomorrow is about and an outside-in perspective can be quite effective for this cause. The IKEA case is an example in point.

Any organization has a mix of people of different ages, gender and skills set, but if the organization is geared to go digital, everyone needs to be on the same page. A good leader is one who is sensitive to generational issues, manages these multiple demographics well and connects with each person, so that staff is as invested in the process as their leaders.

While the `old school' staff may be resistant to adopt digitalization, the younger generation is born digital and embraces change more easily than their senior colleagues. This creates a workforce culture of people with different approach to, and speed of, adopting digitalization. Leaders feel challenged handling this mixed bag of people in their workforce, but they need to adapt to accommodate both ends of the spectrum.

Digital transformation is a double-edged sword. On the one hand, change is the only constant and helps businesses grow and become competitive, but it could also drive employees out of work. A good leader would ensure training programs to keep staff relevant to the job and maintain his own digital edge as well by attending workshops and training programs.

The Digital Age allows for teams to collaborate and deliver outstanding results remotely, without any face-to-face interaction. In such a scenario, effective communication is critical; hence leaders need to be well equipped with updated tools like Video conferencing, Google Docs and others.

It might be apt to say that true leaders derive their power from the people they lead, and they will be able to lead people only when they can effectively communicate with them and inspire them to be in sync with their vision. The Digital Age has robbed us of that personal touch in communications. It's easier to send text messages or an email devoid of emotions. This type of communication style creates confusion, misunderstanding and unnecessary hurt feelings. Perhaps a zoom call might bridge the gap, or even better, just pick the phone and talk and dispel all matters.

Successful digital transformation requires a holistic approach across the organization. Teams and leaders must not only coordinate but also understand the outcome for the business as a whole. Those who don't, fail at digital transformation. The fact that Ford Smart Mobility was designed to be a separate entity rather than fully integrated into the existing ecosystem doomed the project to failure from the start, resulting in millions of dollars lost, stock prices plummeted and the CEO had to resign.

Key Takeaway

Digital sea changes are happening at an exponential level and organizations are facing unprecedented pressure to ride the digital wave and individuals too are striving to remain relevant to this situation. The digital terrain is endless, the road is bumpy but opportunities are limitless. For a digital transformation to be successful, a change in culture, business practices, strategy and how work is done is inevitable. This can only happen when everyone in the organization, leaders and their employees, are all equally invested and have the same vision.

References:

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