Trust: The Key to Nurturing Your Organisation's Digital Transformation Leadership Capabilities [Part 1/7]

Are you looking to improve your company's digital transformation capabilities? In this, our first in a seven-part blog series, discover how to build trust, commercial outcomes, and integrate Māori and Pasifika worldviews into your change initiatives. Our experts offer insights gained from years of experience in transformation and change. By applying tirohanga toru-ao, the three-world views of Te Ao Pākehā, Māori and Pasifika, we reveal how trusted leadership is the key to successful digital transformation. Join us in exploring the seven essential areas for growth and discover helpful tips to get started. This post will set the scene and explore our first observation | te kitenga tuatahi.

The lack of strong digital leadership is a major business concern in New Zealand. It is not surprising that 70 percent of digital transformation initiatives fail, with management behaviour and employee resistance being the prevailing reasons. Our upcoming blog series gives insight into how cultural and digital transformation leaders make all the difference in the digital era. Strong leadership is crucial for organisations to unlock technology's potential and keep up with the pace of technological change. Developing and nurturing cultural and digital leadership capabilities is the foundation for sustainable growth and success in the digital age.?

“Strong leadership is crucial for organisations to unlock technology's potential and keep up with the pace of technological change.”

Our seven blog post series over seven weeks will provide seven observations leading to a critical question or pātai for each, followed by a set of actionable tips. These are our collective insights on:

‘how business leaders in Aotearoa New Zealand can foster, cultivate and grow great digital transformation capability in their organisations.’

The insights we share are based on many years of practical, hands-on experience operating in senior digital transformation and innovation management roles in New Zealand – businesses such as; Air New Zealand, Contact Energy, Mercury, InternetNZ, Vodafone, Auckland Airport, Datacom, Harrison Grierson and Fronde, to name a few.?

"In our State of Organizations Survey, 90 percent of respondents asked about capability building deem it to be something that their organisations need to act on now or soon. Yet only 5 percent feel that their organisations’ capabilities are already set." - McKinsey & Company | The State of Organisations 2023

In sharing our insights, summarised below in Figure 1: ‘Seven Challenges for Digital Transformation Leadership in Aotearoa New Zealand’, we hope to help build the foundation for sustainable growth and success in the digital age in Aotearoa by showing the importance of developing and nurturing our digital leadership capabilities.

The first observation | Te kitenga tuatahi: Digital transformations fail because leaders and leadership teams do not clarify the initiative’s 'why,' 'what,' and 'how'. A lack of connection with the overall strategy and buy-in from staff also contribute.?

“Gartner research shows that 89% of boards agree that digital is an implicit part of growth strategy, but 81% report that they have not made progress toward or achieved their digital business transformation goals.” - Gartner 2023

This raises our first question | pātai tuatahi: how might we better set or reset the foundations for success?

We offer six tips we hope might assist you:

• Tip #1: Deeply understand the problem(s) you are trying to resolve and ensure it is connected with the strategic objectives. To achieve successful digital business transformation, leaders must take time to unpeel the layers of issues to establish the root cause and clarify the "why," "what," and "how" of the initiative. Leaders must also be transparent and realistic about timeframes, gain buy-in from staff, and ensure a strong connection with the overall strategy. Research and experience consistently show that a lack of clarity and buy-in is why organisations fail to progress towards their digital business transformation goals.

"Organisational health is more than just culture or employee engagement. It’s a company’s ability to get everyone aligned on a common vision, execute the vision effectively, and renew itself through innovation and creative thinking." - McKinsey & Company | The State of Organizations 2023

How does this build trust??

When the organisation has a common understanding of the problem, this creates a shared foundation for change. People can see the need for change, and there is less risk of hidden agendas - real or perceived. Being upfront, honest and open about why there is a need for change, being clear on the problem(s) to solve together, linking this to your strategy and engaging people in the conversation will quickly gain the trust and confidence of your people.

• Tip #2: Actively build mechanisms for collaboration. The execution and impacts of digital transformations span multiple internal and external teams in the organisation, including customers and other stakeholders. Collaboration is the difference between success and failure. Co-design principles and design thinking can be powerful tools to harness collective creativity, expertise, and perspectives. Engaging stakeholders in problem-solving builds trust, increases buy-in, and leads to more sustainable outcomes that drive innovation and create value.

• Tip #3: Engage with Māori and Pasifika stakeholders - working towards a co-design approach to cultural transformation. Genuine engagement with Māori and Pasifika stakeholders and incorporating their learnings enables authentic collaboration towards co-designing cultural and digital transformation tailored to the needs and perspectives of your people and a growing number of people in our communities.?

"...it is essential to emphasise teams more than individuals, create and empower small, entrepreneurial squads, and establish psychologically safe conditions in which all team members can contribute to their full potential." - McKinsey & Company | The State of Organizations 2023

How does this build trust??

Leaders must promote collaboration and inclusivity to build trust and confidence in and across teams. Actively building mechanisms for cross-functional collaboration shows a commitment to working with internal and external teams, including customers and stakeholders. In addition, actively seeking the perspectives of Māori and Pasifika stakeholders and other diverse groups demonstrates a commitment to understanding their needs which can help build trust and foster more collaboration, co-design, and enduring relationships.

• Tip #4: Assess whether you have the right expertise internally to lead the programme. If not, look to external sources for the skills and experience in a fixed-term arrangement. This could be a good opportunity to develop someone in a shadow or second-in-charge (2IC) role, but not the scenario to put an inexperienced person in and see if they “sink or swim”.?

• Tip #5: When considering your broader stakeholders, consider engaging experts to help you uncover the Te Ao Māori and Te Ao Pasifika art of Wānanga and Talanoa. By genuinely incorporating Māori values and perspectives in establishing the 'why,' 'what,' and 'how' of the project, particularly through true wānanga (forum) and talanoa (dialogue), it aligns with Te Ao Māori and Pasifika principles of including diverse voices and perspectives in decision-making. This may help you engage more broadly and deeply with your audiences.

• Tip #6: Proactively develop mentoring ‘tuakana-teina’ relationships. Pair staff with different levels of expertise and experience so they can learn from one another. This is a traditional concept where an older or more experienced person (tuakana) guides and supports a younger or less experienced person (teina). The equivalent in Te Ao Pasifika is the concept of va fealofani.

“Leaders need to move beyond being a controller who operates through detailed analysis and planning to being a coach who operates through short cycles of quick decision making, experimentation, and learning. This form of leadership helps organisations to better respond to challenges and uncover opportunities, and it enables them to stop experiments that underperform and scale up those that are thriving." - McKinsey & Company | The State of Organizations 2023

How does this build trust??

Providing opportunities for learning and development demonstrates a commitment to investing in staff and their growth. This can build trust and loyalty among staff and foster a culture of learning and collaboration within the organisation. In addition, the power of wānanga and talanoa brings out different perspectives and views. Genuinely including Māori and Pasifika values and perspectives demonstrates an inclusive approach and respect for diverse perspectives. This can help build trust with Māori, Pasifika stakeholders, and other diverse groups.

How might we measure progress? | Ka pēhea tātau e waihanga i te tūāpapa kia eke kairangi ai?

Successful digital transformations unlock value for organisations and ensure they are well-placed to win in a fast-changing landscape. However, as we have seen, the journey towards digital transformation is often fraught with challenges, and the importance of measuring progress throughout this journey cannot be overstated. By assessing critical aspects of digital transformation, particularly commercial outcomes and trust, organisations can ensure they are on the right track, identify potential obstacles quickly, and adjust their strategies accordingly to maximise success.

Measuring progress in digital transformation helps organisations maintain focus on goals, fosters a culture of continuous improvement, and promotes accountability among leaders and team members. It also enables organisations to evaluate the effectiveness of strategies and efforts, prioritising the right stuff and ensuring the efficient allocation of resources to drive meaningful change.?

“Digital transformations are 80% soft skills and 20% technology.” - Forbes 2020

Research organisations like McKinsey, Deloitte, and KPMG have identified various measures to assess the success of digital transformation initiatives. Based on our experience of ‘hands-on’ transformation, some of the most commercially-related measures include:

1. Business outcomes: measuring the impact of digital transformation on business outcomes, such as revenue growth, customer satisfaction, and operational efficiency.
2. Adoption and utilisation: tracking the adoption and utilisation of digital tools and technologies across the organisation.
3. Effectiveness: measuring the effectiveness of digital strategies and initiatives in achieving their intended goals.
4. Innovation and adaptability: monitoring the organisation's ability to innovate and adapt to changing market conditions.
5. Digital capabilities and maturity: evaluating the organisation's digital capabilities and maturity level.
6. Employee engagement and readiness: measuring employee engagement and readiness for digital transformation.

These measures can help organisations assess the success of their digital transformation initiatives, identify areas for improvement, and make data-driven decisions to drive business outcomes and stay competitive in a rapidly changing digital landscape.?

But, as Forbes identified in 2020, digital transformations are 80 percent soft skills and 20 percent technology. In our experience, measuring the levels of trust your people have throughout your journey is equally important. This blog post series will provide a potential framework for you to use when evaluating your people’s trust in your digital transformation. The framework provides a set of questions and covers critical areas such as; fostering cross-functional collaboration,? improvement in digital skills, empathy and integrity development, growth in culturally-responsive competencies, strengthening diverse partnerships, leadership adaptability and agility, and the balance of soft vs technical-focussed leadership.?

Measuring performance across commercial and trust is essential to make data-driven decisions and achieving success. As Peter Drucker said, "What gets measured gets managed." Measuring trust is crucial for success because of the importance of leadership and trust in transformation and change. Our final blog post, in week seven, will deep-dive into this crucial area.

Where to next? | Ki hea a muri ake nei?

In our second blog post in this series, Terri, Jason, Raniera, Lynette, and I look at our second observation: that most organisations don’t empower their most significant asset, their people, to their fullest potential. Stay tuned, and thanks for your interest.?

As a business leader in Aotearoa, if this post sparks your curiosity and you’d like to know or kōrero over a kāwhe or tii, then feel free to reach out to Terri, Jason, Raniera, Lynette or me. We’d love to hear from you.?

Go well, ngā manaakitanga and fa'afetai tele lava ^Terri, Jason, Raniera, Lynette and Kerry

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About Terri, Jason, Raniera, Lynette and Kerry

Terri Carajannis

Terri is a dynamic leader with a unique blend of experience in digital marketing, tech & strategy. With nearly 20 years of experience, Terri has a proven track record of leveraging the latest technologies to drive innovation, increase efficiency, and reduce costs. Her empathetic leadership style has enabled her to build high-performing teams that deliver exceptional results.

Connect with Terri, here.

Jason Delamore?

Jason is an outcomes-focused leader with a wealth of experience in large technology projects. He excels at building capable and collaborative teams, managing risk, and optimising vendor relationships to deliver measurable results. Jason is a strategic and visionary leader with a track record of success in driving business growth and innovation.

Connect with Jason, here.

Raniera Albert (Ngāi Tūhoe, Te Whānau a Apanui, Ngāti Porou)?

Raniera is Tumu Whakarae Managing Director of Kirikawa, a kaupapa Māori advisory practice providing cultural intelligence training to organisations who are seeking a more profound understanding of the role of Tangata Tiriti in Aotearoa.

Raniera is a graduate of Te Panekiretanga o Te Reo Māori, an elite Māori language academy. He strives to reach the pinnacle of the Māori language in all facets of his personal and professional development. Raniera is both astute in Te Ao Māori and Te Ao Pākeha. As one of New Zealand's youngest top senior public servants, he has dedicated more than 10 years in many senior executive and board roles within the public and private sectors. Raniera continues to provide quality and comprehensive cultural advice to meet the requirements of organisations.

Connect with Raniera, here.

Lynette Reed (Ngāti Hāmoa)?

Lynette founded Hybridges and currently heads up Diversity and Inclusion at Auckland Transport. Lynette pioneered Auckland Transport’s first Pasifika strategy and oversaw the crucial Future of Work and Hybrid Ways of Working strategy.

Having completed her Master of Technological Futures degree at The Tech Future Lab, Lynette is now bringing Pasifika engagement models from the academic world into the workplace.

Connect with Lynette, here.

Kerry Topp (Ngāti Airangi, Ngāti Pākehā, Tangata Tiriti)

Kerry is Kaiwhakahaere Founder of The Kerry Topp Collective, a boutique, open innovation and collaboration practice specialising in collective impact. Kerry is an innovative leader with over 20 years of experience in the technology industry. As a Pākehā and Tangata Tiriti leader, Kerry's approach to leadership is informed by the principles of Te Ao Māori, which he incorporates into his work. Kerry is talented at identifying emerging trends and developing innovative solutions to complex challenges. He is known for his ability to impact businesses and communities positively.

Connect with Kerry, here.

#DigitalTransformationLeadership | #LeadershipDevelopment | #DigitalSkills | #CulturalTransformation | #PeopleCentricLeadership