Why Digital Transformation Inspired by Higher Purpose Leads to Success.
Vitaly Geyman MBA, CEO Insights
CEO Muse | Growth Strategy | Team Development | High Performance Culture | Podcast Host | The Living Organization?
When Digital Transformation is combined with Higher Purpose the results are nothing short of remarkable. Not only are such organizations are revolutionizing their industries, create phenomenal economic growth, but they truly benefit society and the planet overall.
Just look at the valuation of companies such as :
· Google, Facebook, Tesla, Zappos, Apple
and many smaller companies such as
· Thrive (Organic Grocery Online),
· TOM’s Shoes,
· Beneficial State Bank,
· Etsy,
· The Honest Company.
(note: for more examples of such game changers watch documentary "Prosperity")
Why Digital Transformation Efforts Often Fail
Most recent CEOs surveys consistently show Digital Disruption on their top priority list. Digital Transformation has become the new wave that has the power to both destroy and create companies and even whole industries.
No company is immune to the impact of this wave and in many ways it has created a more even playing field between the larger and smaller organizations.
To clarify in this article digitization refers to applications such as e-commerce which creates new, more effective routes to market (RTM). Cloud Computing, Internet of Things (IoT) and exponential technologies such Artificial Intelligence (AI), Robotics and Augmented Reality (AR).
The irony is that many of the large well established organizations are struggling to adapt to this new internet era, as it requires a completely different mindset, culture and skill set.
Many of the Turn-Around CEOs that are brought into these organizations fail in their digitization strategy. The main reason being, they place way too much emphasis on processes and procedures and not enough on the culture fit, agile systems and most importantly measureable outcomes.
Few have the vision to predict where the market is heading. Most large organizations lack the agility to quickly rally their people into cohesive alignment with the new direction. By the time it is done a new iteration of technology has already hit the industry, superseding the old one.
In some ways the new entrants have a distinct advantage of having a beginner mind set, open and agile to experiment with completely new ways to serve the market.
Why Higher Purpose Succeeds
At the same time there is another tidal wave hitting organizations. People are chronically disengaged in their work place.
“ Worldwide, 87% of employees are not engaged.” Per 2016 reports from Bersin by Deloitte
This is especially so when it comes to millennial generation who no longer willing to be a cog in the wheel of a large machine like organization that only pays lip services to treating their people well.
Personally, they are seeking a higher purpose and meaning in work. They want to contribute to something greater, something that provides a benefit to society and the planet overall.
Most millennials (86%, in fact) believe “the success of a business should be measured in terms of more than just its financial performance.” EY and Howard University Study.
Seeing this trend some large organizations have adopted HR initiatives to address this issue. However once again they are struggling, as in many instances they attempt to bolt on “Purpose and Mission” on top of existing structure and culture, which is rarely effective.
Just like other management initiatives in the past, people are extremely sensitive to “Purpose Washing”, especially millenials, who have a much stronger BS detectors.
Aligning an organization around a common purpose takes a lot of effort and genuine commitment from the CEO, Board and all senior executives. It must be literally infused into the DNA of the organization and reinforced at all levels and systems (HRM, Strategy, Operations, Sales and Marketing, Recruitment etc).
The good news is there are now many great examples of truly purpose driven organizations and these originations drastically outperform their counterparts ( see above).
“Companies that are driven by higher purpose outperform their counterparts in stock price by a factor of 12.” decade-long study by John Kotter and James Heskett
Digital Transformation with Higher Purpose
When Digital Transformation is combined with Higher Purpose the results are nothing short of remarkable.
Not only are these organizations revolutionizing their industries resulting in phenomenal growth, but they also truly benefit the society and the planet overall. Another words they combine doing good with doing well.
Both their employees and customers become whole hearted supporters, empowered and excited to be part of something great.
Their vendors and even their shareholders are also delighted by being part of such venture.
In short these companies are not just transforming but transcending what an organization is capable and the kind of impact it can have on all of its stake holders.
It is not to say that such purpose driven companies do no experience setbacks along the way. The path is not easy, but that is even more reason grounded in a mission greater then themselves energizes the leaders of purpose inspired organizations to overcome such obstacles.
The synergy between purpose and digital transformation goes even further than that.
When powered by a higher purpose an organization is able to rally their people behind their digital strategy and become a true innovator in their industry.
Digitization allows companies to develop a much more intimate connection with its customers. Adapting quickly to their needs. Developing products and services on demand, based on their feedback.
Providing delivery, billing and collection just the way they like it and at much lower cost.
Creating completely new profitable revenue streams, that are quickly scalable to national and in many instances international level.
Agile and inspired both employees and their customers become zealous advocates, creating a ripple effect that rapidly reaches viral growth.
The reality is that technology by itself has no morals. It is a tool. Powered by purpose that truly benefits society and environment, it becomes a force for good. Technological transformation with a higher purpose not only ensures that a company survives but that it thrives.
If to succeed, choosing leaders that are capable of creating a vision that inspires their people to ride both the wave of digitization and purpose, should be the highest priority of any organization.
Vitaly Geyman B.Eng, MBA, Purpose Coach. I began my career developing the first iteration of Internet and Digital Applications, later moving into high tech strategic planning and marketing. In the last 20 years I have worked with over two hundred business leaders and numerous organizations worldwide in creating Purpose Inspired - Digital Transformation. My background in Strategic High Tech combined with Leadership Development allows me to integrate these two disciplines. This holistic approach provides a much higher success ratio of positive outcomes.
If you are a business leader of SME or a Larger Organization feel free to contact me for a private conversation on how I can help you move forward.
Email: vitalygeyman(at)gmail.com
Getting the job done...and more.
7 年A very eye-opening article Vitaly Geyman B.Eng. MBA ...thank you for sharing this.
MBA in Marketing | BS in Business Administration | Branding & Marketing Professional with Entrepreneurial Background
7 年With regards to common concerns and risks (i.e. confusion, indecisiveness, random moves, strategical or tactical faults, timing errors..), improved and real-time information, besides seamless integration and interaction act as today’s game changers. In this respect, digital transformation and information systems have a significant impact not only on brands’ sphere of influence and overall performance, but sustainability and velocity, as well. However, while trying to stay competitive and agile, besides being in compliance with their mission (=what they do), and purpose (=why they do), it is seen that challenges may deviate corporates from their original routes, especially when things get complicated. Besides, because digital transformation shapes business models, process steps, and working styles, besides affects how/when to react dramatically, without a doubt, enabling digital transformation requires having good and deep due diligence, integrating and internalizing the core ideas and benefits, besides a network of excellence. In this respect, while creating new and more effective routes, aligning the organization for its desired future, and defining the change agents willing to lead the change, digital driven efforts are expected to act as a solution maker and an accelerator, also create a leverage in the business transformation. On the contrary, poor formulation and execution will lead to communication gaps and trigger chain reaction and domino effect failures
As soon as everybody becomes aware of his or her purpose in life, this planet will become a great place to be for 7,5 billion people. Technology will make that happen. Technology follows Biology. Nature in itself is purposeful.
Relationship Marketing Specialist: I help Attorneys, Non-profits, Insurance, Real Estate, Dental & Financial Professionals Grow. *Coaching *LinkedIn *Email Marketing *Attraction Marketing *Gratitude & Follow-up Tools
7 年Terrific article! Teamwork is so important throughout the company. It creates support, camaraderie and a common, likeable goal. Once the team is on board with the purpose, it will flow down from the top executives and be celebrated within the organization and passionately be spread to the clients through the purposeful digital transformation as you discussed. Yes....not that easy, but certainly more powerful!