Digital Transformation: The Solutions Are Within

Given the torrent of new technologies driving product and process innovation and efficiency, for most companies maintaining the status quo is no longer an option.

This is an era where roboadvisors will soon become the norm, where digital insights will change the face of marketing forever, where back-office administration will be transformed by technologies and where new products and services will develop at a speed never seen before.

To make things even tougher for established companies, not only is there hot competition from the usual places, technology has also removed barriers to entry, forcing incumbents to question their operating models and their hold over once loyal customers. But in this rapidly changing digital economy, could it be that the biggest threat to your business isn’t the competition but the organisation itself?

The disruption we are now facing on a massive scale requires organisations to transform in the fastest possible time. While many companies immediately look towards costly investments in hardware and software solutions in an effort to keep up, it is only the more astute companies that reflect on the organisation’s ability to quickly identify and evaluate relevant innovation and to rapidly evolve in response.

One thing that we have heard a lot in the past from large multi-national clients is that “unlike startups, here it takes a long time to turn the ship”. Our question is, is that lack of organisational agility an inescapable characteristic, built into the DNA of large organisations, or is adaptability a matter of choice?

Our Design Leads have addressed complex systemic challenges at both ends of the business spectrum, from startups to market leading incumbents. This work has certainly highlighted the characteristic strengths, aptitudes and behaviours of each: It will come as no surprise to readers that young, innovative companies tend to take more risks, are more reactive and more willing to fail; an advantage for sure, if harnessed effectively. They are also comfortable in emergent situations, which means that Innovation Arts’ approaches to problem solving – including Design Thinking and cross-functional collaboration – tend to already feel natural to the people who work there. This is not always the case in more established companies, whose cultures have evolved away from entrepreneurialism towards the need to protect and grow brands and meet shareholder expectations. But there is a reason companies cultures evolve as they do. When working with engineering clients who design and build aircraft engines, or the aircraft themselves, for example, we have not been shocked to find that a need for precision, caution and paramount safety have also influenced the way business processes are managed. Yet here too, digital transformation is an imperative, and leaders have found ways to exploit cultural strengths while still embracing new, accelerated ways of thinking and working that save thousands of hours of effort and rework.

Some incumbents choose to fast track their development of targeted innovation by combining forces. Our work in the Financial Technology sector has involved partnering with startups and established big names who, recognising each others’ strengths, search for symbiosis to exploit emergent Fintech markets. But even there, innovation cannot be kept distinct from the rest of the organisation and ultimately the ship still has to be turned. The question is how? At Innovation Arts we are convinced that the solution lies not in a book or a consultancy report, but within your existing organisation.

No matter who comprises your organisation, from millennials to experienced old-hands planning their retirement, every person within it will have lived through an extended period of highly intensive and accelerated change – as a child. Children face transformation constantly: physically, mentally, emotionally and in the expectations family and society have of them. Children are extraordinarily resilient and adaptable, and every new change strengthens them for the next. By drawing on this to recreate three key conditions that make thriving in change possible in your organisation, we can rediscover that strength:

1. Questioning everything, but not needing to provide all the answers yourself.

Traditional hierarchical control and decision-making will not work. In some cases the more experience we have with things working well, the harder it is to access breakthrough thinking. Leadership teams must have the courage to acknowledge that we are in a new, unexplored era, and that their leadership requires resourcefulness – seeking answers from those who know, those who decide and those who do. This culture of trust and delegation will give employees in turn the courage to pose questions and offer suggestions they otherwise would have kept under wraps. Bring the right people together at the right time to answer important questions, and sometimes -in periods of intense transition – consider a temporary focal ‘hub’ to accelerate and align.

2. Creating a safe space to experiment, to fail, and to learn.

One of our core beliefs at Innovation Arts is that failure always precedes success. Modelling, testing and iteration are as key to Design Thinking as they are to technological advancements. If your company has a culture that punishes failure, innovation will never flourish; a learning culture is key to agility. You will also need to rethink cumbersome ‘traditional’ processes for decision-making, communicating and aligning/realigning – you simply don’t have time. A good design is never finished, but good enough for now can be good enough for now: operating models, action plans and communications strategies that meet immediate needs and can be iterated later are appropriate in this fast changing world.

3. Playfulness.

If you can’t have fun with the problem, you’ll never solve it: If disruption is seen as a chore or something to be feared rather than as an exciting challenge then your organisation’s response will be lacklustre at best. Adopt collaborative approaches that engage employees and make working together on complex challenges tough but pleasurable. That doesn’t mean you can’t acknowledge employees concerns – people still need to understand what changes means for them. One thing that can help is keeping a constant focus on your values. Games Science can help you keep focused on who you are as a company even when you face a perpetually moving target.

These practical changes can tap into your organisation’s innate ability to adapt and embrace the opportunities that digital transformation presents for your business. Talk to us about how we can help you release the solutions within.

Innovation Arts is a hybrid strategy consultancy and design agency. Innovation Arts brings a fresh and highly effective approach to stimulating ‘group genius’ through design practices that stretch people’s thinking and initiate ideas. 
Described by GQ as the ‘management consultant of the future’, the Innovation Arts team is a mixture of strategists, management consultants, designers, advertisers, branding and communications experts and artists, all skilled in helping organisations make change happen. It’s a unique blend that helps an organisation think differently about the challenges it’s facing, as well as address them.
Based on their experience of working repeatedly with some of the leading FTSE100 and Fortune 100 companies, governments and civil society organisations, their clients engage them because they deliver systemic, high-quality, sustainable outcomes with less risk, more certainty and in a fraction of the time compared to conventional approaches.
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