Why – The core changes of digital disruption

Why – The core changes of digital disruption

Digitalization is a global mega trend that forces almost all companies to change significantly. But what are the main characteristics of those changes around us? If we understand better, what is changing in our environment, we have higher chances to work on the right adjustments within the organization in order to reach a better fit with the environment.

The starting point is technological progress: Binary code, microchip, internet, big data, internet of things, artificial intelligence, physical products (combi of digital and reality), intelligent personal assistants etc. have and will continue to change our day to day life.

This technological progress led to some main changes in how we work and live together. On the basis of Khan’s* work we identified 6 core changes:

  1. Interconnectedness
  2. Abundance of information
  3. Increased complexity
  4.  Increased transparency
  5.  Less hierarchical, more empowerment
  6. Man Machine cooperation

     


1. Interconnectedness

 

Billions of smartphone users can interact with each other without time delay. Experts are forming worldwide research networks, crowdsourcing allows to receive many ideas, financial resources etc. with little cost and time investment.

 

2. Abundance of information

 

It can be a blessing and it can be a curse. We can access most relevant info in our vicinity or from the other side of the world. Some people rather look at their Smartphone in order to see, how the weather is than looking outside the window. Highly paid software developers are pretty good in seducing us to spend more and more time with applications and to activate the push notifications.

 

3. Increased complexity

 

With the increased speed of change and more and more people sharing the same space, complexity goes up. In most cases, organizations need to increase internal complexity in order to get along with external complexity. E.g. a retail has to build up an online shop and blend the physical and online world, find a way to balance classical retail management with the agile world of online development …

speed of change in the digital disruption

With the increasing speed of change, the complexity goes up as well

4. Increased transparency

 

Nowadays it is very difficult to keep a higher level of privacy. Cameras everywhere in the city, iPhone search function, Google earth, Facebook etc. make our day to day life very transparent. If somebody wants to find out, whether the spouse has an affair, this should not be too difficult anymore 😉. At the same time, you can run a business on other continents with e.g. using Google docs, Yammer, Trello and many other kinds of cloud software.

 

5. Less hierarchical, more empowerment

 

In a knowledge economy, people want to have a say. And they also need to be empowered to make decisions close to the client or the technical challenge. Hierarchy is too slow. Laloux’s reinventing organizations, holocracy, lateral leadership etc. point at democratic alternatives. Hierarchy loses influence but will not fade totally.

 

6. Man-machine cooperation

 

Anorganic entities with some digital steering (programs, bots, robots) and humans work side to side. We find thousands of example in industry, medicine, business, travel etc.

In the metaphor of the Disruption Surfer, these 6 core changes describe, what the waves are made of. Each wave is unique. Nevertheless, waves have common patterns. If we know how to read them, we will be successful in picking and surfing the next wave.

 

Article written by Dominik Etzl und Gunther Fürstberger

*Shayan Khan/Tikkanen (Stockholm Business School 2016)

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The world we live and work in has become more and more fluid over the past few years. Changes are happening so fast that we can barely build on a solid ground. In the past, most companies worked like this: an industrial company, for example, built a factory that would work and exist for a few decades. Today, the most valuable companies, have – in comparison to the past – little-fixed assets. Current ideas, connecting resources, and a constant adoption became much more important. If we are looking for a metaphor for the modern leader, we should start with the underground. Nowadays, the underground of the modern leader would rather be water or air than a solid underground. Waves in the sea are a good metaphor for the waves of the disruption.

 

Waves instead of a solid ground

 

Often, these waves arise far away before they come to the coast, where their size is only predictable at short notice. Therefore, they can either be a threat or a great chance for the surfer. An experienced surfer observes the waves and chooses the right one for him. If the waves are not strong enough, you can’t really do a lot with it.

Waves of the disruption

Is the wave a threat or a great chance for the surfer? An experienced surfer observes the waves in the first place and chooses the right one for him afterwards.

 

As a leader in the digital transformation, you should definitely keep an eye on the approaching waves of change. Many companies are drowning because they ignore the changes, which are often coming from an unexpected side. If they do not ignore them, they often only recognize them when it is already too late. In the meanwhile, others could perceive the opportunities and the creative potential of the changes and are often surprised by the unexpected possibilities which suddenly arise.

 

The surfboard – a tool of agile leadership

 

Basically, a surfer only needs the right surfboard as a tool. The material entry barrier for this sport is very low. This applies to the digital economy as well. Many of today’s largest Silicon Valley companies were founded by students with little equity. As an agile leader, you have a variety of tools at your disposal. We’ve already worked out the most important key tools, you should have as an agile leader in a previous blog article.

Surfboard as a tool for disruption

As with the digital economy, the material entry barrier at surfing is very low – all you need is a surfboard, basically. Some of Silicon Valley’s top companies were founded with little equity as well.

Next to the tool-set, the associated skills want to be developed as well. A surfer’s main skill is the ability to balance on a moving surface which can only be achieved by a constant and balanced movement. This is cognitively difficult. As a surfer, you develop a sense of balance through a lot of practice. The same applies to an agile leader. The key to stay on track is the ability to react quickly and adequately to the many and rapid changes. Doing this by himself is quite difficult. Therefore he needs additional collaboration skills, such as creating transparency and visualizing things.

 

Attitude and skillset

 

Both, the surfer and the agile leader, are only able to gain mastery when tapping into creative potential.

Even more important as a tool-and skillset is the right mindset: the disruption surfer sees a change as an opportunity, acts with others at eye level and with much openness. Even if the disruption waves look threatening to many people in the first place, the disruption surfer says, with brightness in his eyes: “Wow, this wave I’ll take!”

Article by Mag. Gunther Fürstberger, CEO of MDI Management Development International.

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The framework – its origin and background

 

The main idea of the cynefin framework was developed by the Welsh management consultant Dave Snowden, who has worked for IBM for many years. The knowledge management system is supporting us in identifying and understanding different situations based on their complexity. In this way, suitable ways of acting can be derived. The framework detects in which situation agile management tools should be used and when it is better to refer to classic management methods. Not every problem requires agile solutions and methods. Therefore the Cynefin framework should always be applied BEFORE deciding which management method to use.

 

The four domains of the framework and their fields of application

 

All in all, the framework can be divided into 4 different fields:

  • Simple: in this field, the relationship between cause and effect is clear and obvious for everybody. Simply said: “if you do this, you can expect this response”.
  • Complicated: there is a clear relationship between cause and effect, but an analysis and/or expert knowledge is required.
  • Complex:  the relationship between cause and effect can only be identified afterwards, which is why it is not possible to make predictions about the future but only about the past.
  • Chaotic: there is no relationship between cause and effect.

With this framework, situations can now be divided into this four different domains. This gives me a clear and situation-specific instruction on what to do. The framework helps you to quickly analyze situations and to find the right management style. It makes a huge difference, for instance, if I am in a complicated or complex business environment.

In the complicated environment (classic management methods), an analysis should be carried out, whereas – in the complex environment – agile methods should be used. This helps companies not only to find the right management tool in a quick and efficient way but also explains why problem X, for instance, should be solved with agile methods, whereas problem Y shouldn’t.

Uschi Cynefin Framework Trainer
About the author

Ursula Weixlbaumer-Norz is always looking for new solutions for leadership challenges of our time. She is working as a trainer and coach for many years already and is specialized in team development, negotiation techniques, conflict and crisis management, intercultural competences, communication, motivation, change management and management strategies.

Since when are you working with the cynefin framework?

Ursula: About 1 1/2 years ago I came across the cynefin framework and immediately liked the idea of the framework really much. This year I was attending a further education in London on this topic.

 

What are your experiences with the framework?

Ursula: Nowadays, you get the impression that agile methods are everywhere. During my coachings and trainings, I often deal with leaders who do not know where and how to use all those new agile methods. This is exactly where the cynefin framework can support them, which makes the decision which problem-solving method to us, much easier.

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Whereas the business world used to be rather steady and predictable before the digitalization, it is increasingly volatile, uncertain, complex and ambiguous (VUCA).

Nevertheless, many leaders still employ practices, strategies, and tools that were common in times before digitalization, where leadership was long-term, bureaucratic, hierarchical, directing and instructive.

But – this leadership model is no longer up to date due to the changes in the business world. Specifically, this means that

  • the “internet of things” is real
  • information is accessible to everyone instead of a small group only
  • old businesses close down and new ones open up every day
  • former constants now underlie regular change
  • expertise shows in a well-developed resource-network rather than mere theoretical knowledge

 

 What are the consequences of the digital revolution for leaders?

 

Due to the changes in our business world, a lot must change on the leadership level as well. Leadership must be adapted to constant changes and keep track with the latest technologies and trends. But what are now the specific consequences for leaders?

  • Traditional development is expensive and time-consuming
  • Teams need to be empowered; collaboration is essential
  • Development often requires customers to be involved in the process
  • Requirements are constantly changing
  • No clear conclusion, development continues

 

In short: a new leadership approach is needed.

 

We need a leadership approach that is natively adaptive to change – and does not build upon past conditions. An approach that does not assume that the world is stable and predictable – but rather is aware of the fact that the fundamental conditions have to be questioned again and again during a project. After all, the future of business-success belongs to those, who know how to use the changes for themselves and to turn challenges into opportunities.

 

Agile leadership as a new leadership approach

 

Agile leadership originates from the IT industry, which is an industry that is constantly changing. This leadership approach is designed for fast changing cycles and is using shorter sprints, iteration cycles, and continuous feedback. Agile leadership is driven by transparent processes and developments and supports team-collaboration, communication, and interaction within the team.

What do you need as an agile leader to be successful in today’s world?

agile leader in digital transformation
  1. A new mindset, to see change as an opportunity to create an agile organizational culture, to communicate the „big picture“ and to always be one step ahead of the competition.

Individuals & interactions instead of processes & tools

Working software instead of comprehensive documentation

Customer collaboration instead of contract negotiation

Responding to changes instead of following a plan

2. A new skillset, to create the framework and infrastructure for an individual development of each employee.

Skills, an agile leader needs to have

 

  • Entrepreneurial thinking
  • Strong customer focus
  • Employee focus
  • Teamwork
  • Self-leadership and reflection
  • Tolerance for ambiguity
  • Flexibility
  • Change management competencies
  • Solution competency
  • Leading virtual teams, leading from distance
  • Knowing agile work and management methods
  • High communication competency

 

3. A new toolset, to successfully implement the theory into practice and maintain an agile organizational culture.

What are the concrete consequences for you as a leader?

 

Due to the digitization, roles and responsibilities have changed within companies. The market is changing daily and the world is becoming increasingly uncertain. Agile leadership is indispensable in order to be able to assert itself as a company on the market in the long term. However, the successful transition to an agile leadership model requires the full support of everyone involved.

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South Africa – also called the rainbow nation – is famous for its beautiful beaches, an impressive wildlife, the warm hospitality of the people and much more. The country doesn’t have an easy past though. Uncertainty and intercultural conflicts are still noticeable. We talked to Gerard Le Sueur from South Africa, who is working as a trainer for almost 20 years about the current challenges, differences to Europe and the being a trainer in times of digitalization.

The current situation: a challenging environment and the Seta system

 

According to your opinion: What is currently the biggest challenge for organizations in South Africa?

 

Gerard: There are a few: the political uncertainty/turmoil, corruption and ethical issues involved in that, economic climate and uncertainty, including uncertain and changing economic policy, a political economic atmosphere that is unfriendly to business, navigating the volatile and the uncertain environment every day.

 

“Nice to have” or a strategic factor of success: How do you experience that South African organizations view (international) leadership development at the moment and how will that be in the future?

 

There are different levels or hierarchies. Multinational companies, like European ones will very often follow the global trend to focus on their core business and outsource product and service delivery. This delivery is mostly global and from one or few sources; one global delivery. The same is true in South Africa, where multinationals will drive delivery of leadership training from a single point, often outside of South Africa. Large South African organizations follow the trend in that they will follow the Leadership technology that is trending and they don’t fall far behind. Here these South African organizations will often use Business schools or very well-known consulting companies to delivery programs. The fact that in South Africa there is a system for delivering training that is acknowledged officially via Seta’s (points), which can collect towards an official qualification or access to university programmes, means that there is often collaboration with business schools or officially recognised Seta providers. Locally there is is also a tendency to developing leadership skills in levels, basic management (upskilling people who have little “technical” management experience), where one would say the leadership is not new or sexy, but as the leadership level and experience increases there is more strategic and personal process side of Leadership that is found, like you do globally.

Training designs in South Africa & “African leadership”

 

As we all know international leadership development is a lot about intercultural awareness and empathy. For a training professional doing a leadership program in South Africa: What would you as the expert recommend and are there important things he/she shall pay special attention to?

 

You are never an expert, just another person in the room. We are different and the same. Don’t pretend to be the same, when you aren’t and don’t be totally different (better or not from here). When you engage deeply in South Africa it stretches you. Concepts like VUCA are everyday real experiences, you need to be able to feel totally uncertain, listen deeply and say you are sorry without losing your center. A friend says, “It’s the choice between being right or happy.” In Africa, this choice will confront you!

 

People from many different cultures are living in South Africa and there are eleven official languages which are probably not always easy: Are there any typical challenges when it comes to the cultural differences of the participants of a leadership program and did it change a lot in the last couple of years?

 

In South Africa, there is a huge discussion going on about “what is African leadership?”  This comes from the colonial inheritance, which involves EVERYONE, even Europeans coming over to work in South Africa. So we need to be very open to questioning and discussing what works for South Africa. Even if you agree to come up with the same result, the discussion and questioning are important. Don’t bring your powerpoints and say this is how the world works.

There is a higher level of volatility and dissatisfaction, this between cultures. Meaning that the sensitivity and “aggression” is higher, but the energy generated by openness and warmth is also much higher. So never be afraid, unless you think you know better.

Design tips for your international leadership program

In South Africa, the rainbow nation, people from many different cultural backgrounds are living which is not always easy

People from Europe who don’t know South Africa may underestimate how developed South Africa actually is – in your opinion: are there any major differences between leadership development in South Africa and Europe for instance and if yes, can you tell us something about them?

 

We are talking about African leadership (maybe a more globally accepted form of leadership), inclusivity and equality on a very deep level. Europe is not really anywhere near the same depth of this discussion. The Status quo in Europe is very strong to the point that nobody really recognizes it, “They don’t see, that they don’t see what they don’t see”, whereas in Africa there is real disruption here. Chaos and lack of clarity too, but rigorous discussion and challenging.

 

Being a trainer in times of digitalization

 

What do you think of the following: In times of unstoppable digitalization – Are classroom trainings – which means face-to-face – still up-to-date or will they vanish soon? And why/why not? Can you think of any differences between Europe and South Africa?

 

The University of Stellenbosch Business school has been doing very advanced virtual classrooms for many years, including people who sit “in the room”. Running webinars, online (with presence via media tools) is very common and developing itself very professionally, using IT technology to engage and connect in very practical ways. Here I would say Europe is actually behind in some ways, partly because it’s closer and easier to bring people together, geographically and economically. This, however, does not take away the need for “presence” programs but drives the ingenuity required to deliver impactful programs that are a mix, holding the engagement over longer periods of times, using a variation of technology.

 

Let’s talk about international leadership trainings in general: what is the most important thing when working as a trainer on an international level and what are the typical challenges? Can you give us any tips?

 

An Old bushman told me, “You white people (meaning westerners) are really stupid. First, you dig/build the hole you want, then when you lie in it, you cry that it isn’t right and you need to change it. He said, “There’s nothing to change. Everything is exactly as it should be.”

I understand that it is a huge arrogance and disservice to humanity, to think we know what to do and what must change. Don’t go to a leadership training thinking you are going to “fix” something or somebody. Rather stay at home and plant some veggies, if that’s your attitude.

 

According to your opinion: What will be the biggest challenge for the training & development industry in the next 5 to 10 years?

 

Global roll-out, that suits the local requirements, including finding the right level of collaboration to make this work for both the central organization and the localized.

Our interview partner

Gerard Le Sueur is living close to Cape Town, South Africa and has more than 18 years of experience in Consulting and Organisational change development, including topics such as Agile Leadership development and development of teams. He loves to be a development guide because it is his way to stay in a relationship with the world. His personal preference regarding development fields? “Whatever moves me and pulls me towards it. I love coaching at present.”

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Interview with expert Darko Tot

Darko Tot has more than 10 years of experience in leadership development. We wanted to know more about the biggest challenges for organizations in Serbia at the moment, intercultural awareness and empathy and the future of classroom trainings.

According to your opinion: What is currently the biggest challenge for organizations in Serbia?

 

I would list two.

Due to quite low average salaries and high unemployment rate, it is quite easy to find new employees for the majority of positions. Very often the approach is that it is easier (and less expensive) to replace someone than to invest into his development, to dedicate time and effort, to coach etc.

On the other side, due to the opening of new positions, we were eye-witnessing that some positions were having extremely fast expansion. Someone started as a salesperson in one company, then the new company entered the market so s/he applies for a supervisor position and, due to some experience, got it. And then a new company came looking for a sales manager, so s/he appeared to be a good candidate. Soon after that, that person became, for example, sales director (similar can be applied to HR, etc.), with just a couple of years of experience. Now, being there it is difficult to acknowledge that development was too fast (actually I hear that only from one person in my about 15 years of experience). And this situation creates a lot of difficulties…

 

“Nice to have” or a strategic factor of success: How do you experience that Serbian organizations view (international) leadership development at the moment and how will that be in the future?

 

When I started to work in leadership development, back in 2003, participation in trainings was seen more as “punishment” and a sign that “I must be doing something wrong” than an opportunity to improve and develop.

The situation has changed a lot ever since.

However, my impression is that most of the companies are still on the level “nice to have it” or “when others do it, then we will do it, too”. Although it is not necessarily the wrong starting point, it appears in many cases that development programs are not well prepared, goals are not clear, everything is done in the last minute, just to tick the box. The selection of the participants is either too narrow or too wide. As a result, occasionally, in some companies, you might hear “training, oh not again please”.

The future will depend on a couple of factors out of which I would highlight the two: quality of HR people in the companies and quality of providers. The first one plays the key role in preparation, development of internal processes, creating a proper climate, understanding costs of both training and non-training and available options. The second one is interlinked very much with the first one. Simply quality on the demand side will set up the quality of the supply side. Or, to paraphrase famous Lewis Carroll quote: If you don’t know what you want from the training, any training will get you there.

 

You are a trainer and professional for many years already. According to your experience: What are the differences between development measures (trainings, digital learning etc.) in Serbia and, for example, in Austria or Germany?

 

I would say that it is the approach, attitude and consequently impact. My impression is that when working with participants coming from Austria or Germany investment into development is seen as critical for their personal success and therefore they are showing a higher level of commitment. This might be also linked with better understanding and existence of wider opportunities on the market and better preparation of development measures. At the same time, there are also bright examples in Serbia, so everything is having a strong cultural component.

 

What is most important when working as a trainer on an international level and what does it take to be an international training and development guide? What are typical challenges and do you have any tips?

 

Readiness to learn and constantly develop, openness to new experiences, flexibility to understand and approach different personality styles, the capability to motivate people, to help them in becoming better persons and professionals.

And all these elements have their positive and challenging side. The biggest risk is to think that you know it all and to stop focusing on the people in front of you. All in all, you simply have to love it, to enjoy working with and for the people.

Leadership development

The most important thing when working as an international trainer? Motivate people, help them in becoming better persons & professionals: you simply have to enjoy working with and for the people

International leadership development is a lot about intercultural awareness and empathy. For a training professional doing a module of a leadership program in Serbia: What would you as the expert recommend? To what shall he/she pay special attention and what is important? What are your tips for success in order that the training is really beneficial for everyone?

 

I have learned with one of my first clients that you are not the expert just because you say so or because you have some internationally recognized certificates. One of the things I have learned during my study at the Chartered Institute for Personnel and Development (CIPD) in London is that as a professional trainer you need to “enter into their shoes”.

Being able to establish head-to-head and heart-to-heart communication with an individual and a group is the prerequisite of the success. And always to be aware that you are there for them and not the other way around. It is not about you being smart but helping them to do what they are doing faster and better.

Once people recognize that, you are on your way to succeeding.

 

What do you think of the following: In times of unstoppable digitalisation – Are classroom trainings – which means face-to-face – still up-to-date or will they vanish soon? And why/why not? How to deal with that situation?

 

My humble opinion is that we should invest in the new forms, without abandoning the traditional ones. Technology development is faster than evolution dynamic. If, just because we have new modern ways of communication, we stop meeting people in the real world, having coffee with them etc. – then we will face many psychological challenges that a training or coaching will hardly be able to solve.

As new modern cars should not prevent walking, possibility to see every corner of the planet from our sofa shouldn’t replace visits to new places or computer sports games shouldn’t stop real sports activities, also digitalisation should not lead to the end of face to face trainings. After all or before all, we are social beings and ultimately we like meeting other people, discussions, interaction etc.

 

According to your opinion: What will be the biggest challenge for the training & development industry in the next 5 to 10 years?

 

In the era in which we are receiving so much information per day everybody knows or have read something about almost any topic no matter if this is climate change, economic development, time management or leadership.

Although superficial, such knowledge creates the impression, yes I know that. And as a result, I believe that we will have more and more of this “I know it all” approach. Overcoming that and motivating people to really invest in themselves and go beyond the first page on Google or  2 minutes video on YouTube will be more and more difficult. Already today we have to deal with “I want it all and I want in now” and we all know that training is not that sort of the game. It is not a short sprint, it is rather a marathon.

Darko Tot leadership development in Serbia
Our interview partner

Darko Tot has more than 10 years of experience in international leadership development. His passion is to meet new people, hearing their personal stories and learn more about their jobs. He likes to work in the leadership development field because it gives the biggest opportunity to influence in a broader context, to provoke people to make changes and to achieve some impact.
His motto? When started to work and opening my own consultancy business the motto set up was “Your success is our mission!” And that’s how I act ever since then (And, by the way, it sounds much better in Serbian)

What serves you next?

Leadership development in Greece

Leadership development in Greece

International training and development expert Sotiris Karagiannis tell us more about the current situation of leadership development in Greece, the typical challenges at international leadership trainings and much more.

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Leadership development in Brazil

Leadership development in Brazil

Silke Körner is originally from Germany but worked in Brazil as a trainer and L&D consultant for many years. In this post, she reveals how she experienced leadership development and training in Brazil and how digitalization and leadership 4.0 are influencing the country.

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International leadership development with Mondi

International leadership development with Mondi

Mondi’s new leadership training program will be launched in the fall of 2017 and will focus on intercultural leadership and the preparation of leaders for international challenges. We talked to the head of The Mondi Academy, Birgit Höttl, and our MDI Training & Development Consultant, Helena Gutierrez about the program.

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