Digital Transformation, what is it about? As supposed to what most people think, digital transformation is not a technology issue. It’s not about cleaning up IT legacy; this transformation is necessary to reshape every aspect of a business so it can deal with the volatile digital developments. Digital is deeply rooted; in culture, governance, operations, workforce skills, product usage, distribution and so on. Most of all, the customer experience is at the heart of digital transformation. How do you keep up with changing business environments brought about by the changing customer demand and the accelerating technology developments?
Leadership
Organisational readiness: dealing with eternal change
Many businesses put a lot of effort into writing extended long term plans, short term plans and yearly targets. Unfortunately, nine out of ten times it lacks the answer to that one question that matters the most. What if everything changes with suddenness? What if you are completely disrupted? These things come up like a tornado and leave your organisation in a situation it – in this case- wouldn’t be prepared for. How can you make sure your business is prepared for almost anything and, at the same time, is able to drive innovation?
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Disruption is a mindset, disrupt your own business
Many companies accept the status quo when it comes to operating models. They have done stuff in a certain way for a long time. It works, so why change? Because you want a flourishing future, I guess? If you don’t disrupt yourself, a competitor or new start-up will. The impact of both options is the difference between a chameleon or a dinosaur. Therefore always challenge your status quo. Don’t be caught by surprise, surprise yourself. How? Start by improving the usage of business intelligence. Create competitive advantage and start to operate smarter.
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Psychological contract: knowing how to read between the lines
The technology driven changes in work environment and social translucence will implicate contractual relations, causing a upheaval in the concept of doing business and maintaining partnerships. Co-creation is key. The advantages of co-creation will only evolve out of perceived loyalty, because this will lead to engagement and an increase of productivity. More and more effective leadership will be defined by the degree of compassion, trust, respect, fairness, empathy and objectivity that organisations radiate. Whether it involves employees, partnerships or suppliers, the psychological contract is an important building block within any ecosystem.
We’re all familiar with ecosystems in the natural world: organisms interacting with each other and their particular environment consisting out of air, water, mineral soil, and/or other relevant elements. This doesn’t differ so much from the atmosphere of businesses in current society. Businesses need to join or create ecosystems. In the early phase of this new digital age it seemed to be about business ecosystems, but now it becomes clearer every day that a successful business doesn’t evolve around the business but around the story behind the business. In other words, about the brand. Recently I shared my vision on contract management as a strategy and why brand ecosystems are best build on the foundation of the forces of nature: the psychological contract.
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The difference between innovation and leadership
This interesting article describes a few lessons on how students learn to create an environment where innovation thrives. Being intellectually curious is crucial in that perspective. Exploring for the information you need and connecting with people who can guide you in learning essential skills is important. This doesn’t only apply to being innovative, also to being a leader. What are the values and behaviours of leaders who are responsible for big innovations that disrupt?
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