CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
D E S I G N I N G E X P E R I E N C E S F O R T H E
T H E O R G A N I Z A T I O N O F T H E F U T U R E
2 0 1 7 M I M I B R O O K S
@ L D S C o n s u l t i n gCONFIDENTIAL&PROPRIETARY
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
AGENDA• The 4th Industrial Revolution
• The Challenge
• Building the digital organization
• Designing the digital experience
• Design examples
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
The 4th Industrial
Revolution is upon us S E C T I O N 1
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Its speed, velocity and impact are unlike anything we have experienced
3D Printing
Sensors
Virtual and Augmented Reality
Machine learning
Drones
AI/Cognitive Computing
Blockchain and cryptocurrencies
Machine-to-machine Communications
Beacons
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Digital lowers barriers to entry,
strengthens competition, and
changes the rules governing how
business is done
+ Cross-border data flows are surging and connecting more countries
McKinsey Global Institute
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
But to be successful in the Digital Age…
... enterprises require far more profound change than merely investing in these latest digital technologies
Digital business models
Digital operating models
Digitally-literate leadership and a digitally-ready workforce
Resilient corporate culture that can deal with constant change
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
The new digital organization is more knowledge-intensive than capital- or labor- intensive
Digital businesses emerging characteristics
EFFICIENCYRESPONSIVENESS
HIERARCHIESNETWORKS
CONTROLLINGEMPOWERING
EXTRINSIC REWARDSINTRINSIC MOTIVATION
HUMAN WORK AND MACHINE WORK
HUMAN-MACHINE PARTNERSHIPS
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
MARKETPLACE
If the rate of change on the
outside
WORKPLACE=/
exceeds the rate of change on the inside
“
”the end is near- Jack Welch
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
More information can be found on the World Economic Forum site at digital.weforum.org
January 2016 32
World Economic Forum White Paper Digital Transformation of Industries: Digital Enterprise
Strategic recommendations
Attract and retain talent
Attracting and retaining talent starts by listening to what employees are saying about your firm, both externally and internally, and taking these sentiments into account. Organizations consequently need to ensure they monitor relevant discussions on social platforms such as Twitter, Facebook, LinkedIn and Glassdoor. Referred employees have a longer tenure and higher job performance.41
Organizations, therefore, should focus on incentivizing their employees to use online networks to refer potential employees. Creating an effective digital referral program, with the right incentives for internal employees to champion it, is vital to tap into this potential source of high-caliber workers.
To become the employer of choice for millennials, organizations need to:
• Formulate a multi-year workforce engagement strategy for millennials. Identify the places in your organization that will best suit their skills with digital technology and create adequate rotation programs.
• Jointly define your values by speaking with employees and taking on board their core aspirations and principles – do this throughout the ranks and preferably in person. “You don’t need to ask employees to publish their individual values on the company intranet … but you do need to convert these aspirations and values from implicit hints to explicit points.”42
• Empower and incentivize the workforce. For example, with employee stock-option plans, project leadership responsibilities or interesting training opportunities. Millennials cite development as one of their top priorities.43
• Build workspaces that attract digital talent. Employees appreciate customized work experiences, created through tailored design of physical workspaces or virtual workplace policies. Ricoh’s innovation team worked out of a collocation space in Santa Cruz for several months to observe how people work and where they hit pain points. Dynamic and flexible work environments encourage spontaneous collaboration and interaction in the workplace. Consider remote and flexible work options to mitigate the effect on recruitment and retention of being located in an undesirable location.
• Create polices that support collaboration and knowledge-sharing tools (e.g., Facebook@work, Salesforce Chatter, Slack, Yammer or Sprinklr among others) and hardware preferences (e.g., bring your own device) in the workplace to improve employee satisfaction.
Creating a workforce with digital skills
With the current and future talent shortages, organizations need to actively develop the skills they need in house by making training a critical component of their talent management strategy. Employers need to be ambitious in their efforts to train and develop their workforce. They need to:
• Develop required competencies within the workforce by assessing the skills that are currently needed and creating training strategies that are adapted to these. Do this through mapping out where the high-value work is in three years’ time versus today.
• Mine your own organization for hidden talent by regularly assessing employees’ competencies and match these with in-demand skills. Use digital tools such as Rexx systems to quickly and easily enter, retrieve and validate your employees’ skills.
• Bring new skills into the organization by hiring digital leaders and digital natives. Quickly tap into skills from outside the company for ‘just-in-time’ competencies by running employee exchange schemes with other digital
Source: Accenture
Develop employees’ competencies to meet digital transformation
demands or acquire talent via M&ADigital workforcetransformation
Company’s strategic reorientation toward
digital
Employees’ new needs and expectations
Market transformation and shift of customer
expectationsMarket
TransformationCompany
Transformation
Evaluate the evolution of existing jobs
Define future skills required for existing jobs
Define skills required for future digital
jobs
Assess current competencies of
employees
Digital competency framework
Identify jobs that will appear
or disappear
Higher priority is needed to build
the digital organization if
we are to reach our digitalization
goals
WEF White Paper: Digital Enterprise Jan. 2016CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
To win in the marketplace, we need to be digital in the workplace
GROWTH MINDSET
PEOPLE-CENTRICITY
CULTURE OF
INNOVATION
PURPOSE-DRIVEN
ORGANIZATION
EXPERIMENT & ITERATE
SENSE & INTERPRET DISRUPTION
SOCIALLY-CONSCIOUS
BEST IDEAS WIN
DATA-CENTRIC DECISIONING
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Why are we lagging behind in our digitalization of the organization?
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
The challengeS E C T I O N 2
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
The obstacle to digital
transformation is organizational, not
technological
SOURCE: Harvard Business Review Analytic Services Survey, December 2016
54
52
38
18
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
We see four fundamental challenges to building the digital organization
Building:
• Aligned leadership
• The right organizational capabilities
• A mechanism for organizational agility
• The right culture
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
For most CEOs, digital transformation is a longer-term challenge that will play out over the next decade, not an urgent risk to competitiveness in the next 1–2 years.The Conference Board CEO Challenge® 2017 survey
Leadership must collectively tackle the digital imperative today
Why?
• Short-term focus dominates
• Relevant pain points not viewed in context of digital strategy
• Digital seen as evolutionary
• Lack of clarity on how to move forward
• Lack of leadership consensus / operating as silos
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Companies must identify their critical organizational capabilities and determine how they will build them
Emerging capabilities Elements that constitute organizational capabilities
What is critical to strategy? How to build them?
• Customer experience management• Product and service design• Human development• Digital asset management• Business model agility• Experimentation and innovation• Digital-first leadership• Knowledge identification, creation and sharing• Market evaluation and sense-making• Risk and business resiliency• Sustainability management• Systematic learning and exploration• Technology integration into work
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Organizational agility and culture are two halves of
the same coin
Responding to an open-ended question about digital threats, 3,700 business leaders globally cited as a top concern the lack of agility and cultural complacency
MIT Sloan aligning the Organization to its Digital Future
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Digital agility is a new
animal
• Companies are:
• Still adapting organizationally by old ways of organizational planning
• Going digital at the edges – no enterprise perspective
• Focused on efficiency and effectiveness
• Cost of digital transformation cannot be easily assigned to cost centers
• Technology is prioritized as digital strategy
A new dynamic approach to organizational design is needed
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Dimension Traditional Culture Digital Culture
Strategic• Is product and finance focused• Has a rigid planning mindset
• Is customer obsessed• Disrupts effectively by introducing external insights and
rethinking assumptions
Operational• Expects clear definition of process and
roles• Pursues incremental improvements
• Is comfortable with ambiguity, disruption and continuous change
• Drives innovation (work design)
Practices
• “Plays it safe”• Wants to “solve problems myself”• Seeks out perspectives “like my own”• Has unconscious people biases
• Is curious and transparent• Seeks diversity of insight / unique perspectives• Actively participates in knowledge creation and sharing• Recognizes, rewards and promotes based on performance• Best ideas win
Human Development
• Expects explicit and defined career paths, job training and leadership development programs
• Sees feedback as discrete, reflective
• Embraces idea of the “learning worker”• Takes ownership for one’s career• Sees feedback as continuous and integral to work• Has a people development mindset
Organizational culture must shift
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Building the digital
organizationS E C T I O N 3
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
What is the digital organization?The hallmark of a digital organization is digital dexterity – the capability to dynamically deploy and reconfigure human and capital resources apace with rapidly changing technology and market conditions.
MIT Initiative on the Digital Economy (2016)
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
To be dexterous, digital organizations
require: A digital-first mindset
Aligned to management systems
Digital-age work practices
A digitally-enabled workforce… all shaped by
technology tools, experiences, and
resources
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
A “digital first” mindset is more than technology
“Digital first” is multi-faceted:
• Embracing all forms of digital wherever possible
• Customer and employee digital experiences prioritized
• Innovation, product development, service delivery, etc. realized through digital
• Behavior and expectations shaped through technology
• Digital experiences deployed that attract and enable talent
• Development of new digital abilities and mindsets in employees prioritized and enabled digitally
An instinctive, positive, and proactive attitude toward digital possibilities
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Established management
systems are a powerful
opportunity for digital
enablement• Priority organizational capabilities
• Key common enablers of work
• Opportunities for innovation and optimization in the digital experience
Enterprise“horizontals”
Methodology and practices of:• R&D• Human development• Strategic change management• Information technology• Operations
Business Areas
• Business strategies• Key business goals• Major initiatives• Critical enablers
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
• Roles, relationships• Process / activities• Required abilities• Tools, assets• Structure, staff levels• Enabling technology
Creating new work practices requires a deep exploration of new work design and human behavior … and an iterative approach
WorkPractices
Actual People Behaviors
New Work Design
(Digital) culture
• Abilities• Mindset• Knowledge
Discrete, observable actions or activities taken by individuals, shaped by:
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Vital new work practices emerge at the fusion of human and machine
HarvardBusinessReviewAnalyticServicesSurvey
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
ABOUTME
Moving people is tremendously difficult, particularly in legacy businesses
Building the digital workforce requires substantial new skills
s
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Companies don’t become digital overnight – they evolve
Digitally-equippedDrivenbyTechnology
Digitally-capableDrivenbytheBusiness
Digitally-modifiedDrivenbyStrategy
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Designing the digital
experienceS E C T I O N 4
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
The Employee Experience emerges from strategy and business design
Driving behaviors• Transparency
• Risk-taking
• Empowerment
• Customer-centric
• Design thinking
• Knowledge sharing
• Networked / connected
• Experimentative
• Multi-disciplinary
Business Strategy
Business Design
WorkDesign
Experience Design
LeadersManagersTeamsIndividuals
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
The Employee
Experience models the
digital organization
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
A compelling experience enacts new work practices and makes culture actionable
Contextualizes my
relationships to my digital
counterparts
Helps me to “be digital” intuitively
Learns from me and with
me
Employee Experience
Knows me, and
responds and adapts
to me
Alerts me to action
Provides critical
support to my reasoning
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Design for shaping culture
Designing the digital experience
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Culture needs to be designed into the experience
“CULTURE IN ACTION”Me as a member, common language, mission and value proposition
Growth MindsetShared purpose, bold ideas, support for leadership behaviors, managerial courage,
pursuit of diverse perspectives
People SituationsDesign addresses common people situations –providing context and relevant intelligence that “live out” the cultural commitments of the organization in these scenarios
PracticesDesign makes sense of concepts; educating and reinforcing ideas, behaviors, language in the context of work practices, concepts such as:
EmpathyLeadership momentsCustomer-centricityDiversity of teams and ideasShared approaches / behaviors
InitiativesDesign creates awareness and promotes engagement and personal develop-ment opportunities where culture is present, such as:
Programs of recognitionCulture of Health Culture of InclusionGlobal citizenshipAmbassadorship
Shared ResourcesArtifacts of commitment, paths to engagement, cultural resources, manager/leader toolkits,
process and program “maps” and collateral
Experience Attributes (outcomes)Part of a community, engaged, connected, motivated, empowered, aligned
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Assimilate early, reinforce in action
Shaping Culture
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Inspire participation
Shaping Culture
©2017CONFIDENTIAL&PROPRIETARY
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Build a culture of continuous
learning
Shaping Culture
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Demonstrate the value of
journeys
Shaping Culture
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Promote bold ideas and elevate innovation
Shaping Culture
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
Encourage connectivity & personal branding
Shaping Culture
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
CONFIDENTIAL&PROPRIETARY.LOGICALDESIGNSOLUTIONS©2017
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