The Visionary leader welcomes the Vigilant leader’s vigilance as inspiration to turn the “what is” into an image of “what could be”, and then paint a picture of the company’s “to be” state (i.e. “what should be”) from a strategic point of view. They combine weak signals, ideas, and experiments with great imagination and foresight into a winning business aspiration. Great visionaries tell engaging and energising stories of the organisation in the digital age. Rather than focusing on the financial and performance narratives – which often feel empty for most employees – the Visionary leader aligns purpose, principles, and profit. Through their stories, Visionary leaders nurture a shared focus and commitment to the company, advocating the adoption of digital technologies to attain a competitive edge and capture business value at scale. They choose to compete with an ecosystem lens as they understand the innovation potential associated with digital partnerships, collaborations, and overall co-creation. In short, Visionary leaders help realise digital transformation by:
— Telling a purposeful and inspirational transformative story of competitive advantage, advocating the empowering use of digital technologies
— Boldly rethinking the organization’s core capabilities and operating model for achieving digital-age customer-centricity
— Envisioning success by combining the organization’s critical digital assets and those of ecosystem partners
The Vested leader enables the company to move beyond experiments and visionary tales and, steadily and progressively, turn these into a productive, yet flexible, organisational machinery. They put the entire organisation on a roadmap to successful digital transformation by creating organisational mechanisms to swiftly mobilise skills and resources from a variety of disciplines and bring them together to plan, develop, improve, and redevelop organisational capabilities. Vested leaders of the digital era are champions of crowdsourcing. They deploy a different concept of what a company is by focusing much more on self-learning and fostering networks. In doing so, they take a clear step back from outdated learning practices, the deeply ingrained command-and-control organisations, and both design and promote an agile architecture that builds on employee empowerment. Briefly, Vested leaders help realise digital transformation by:
— Keeping the entire organization, rather than individual elements, on a roadmap to successful digital transformation
— Mobilizing the right skills and resources for timely exploration and exploitation
— Facilitating the learning and adoption of digital technologies, work and organizing practices at scale for an empowered workforce
CHECKLIST FOR VIGILANT DIGITAL TRANSFORMATION LEADERSHIP
If you now wonder whether signs of Vested digital transformation leadership can be spotted within your company, you can reflect on the following set of statements: At [your company name], we are curious, as we … regularly ask ‘why?’ are wary of the curse of comfort and don’t settle for the default.
challenge colleagues according to their curiosity levels. understand people’s preferred curiosity mindset. value others’ creativity and curiosity. remain open to and stimulate learning experiences. adopt a beginner’s mind. stimulate the organisation, the people, and the self. embed curiosity into our daily routines. embark on journeys of discovery.
… remain vigilant for bias and noise, as we … recognise bias and noise understand where noise could come from. foster noise awareness in the organisation. watch out for signals of habitual thinking. identify the potential biases at play in any context. interrupt biases. engage open-minded. slow down and investigate. increase decision accuracy by means of decision hygiene.
… manage time and information, as we … protect against the information fatigue syndrome. correctly interpret the value of information. know when (not) to send information. know how (not) to send information. respect people’s time and respect their capacity to engage.
avoid contaminated time.
EXERICSE: ARMOURED VS. DARING DIGITAL TRANSFORMATION LEADERSHIP
Armoured leadership
Daring Leadership We
try to manage/control
We get stuck by setbacks/disappointments/failures and put time in reassuring the contribution of team members
We avoid tough conversations, including giving honest and productive feedback
We don’t take the time to celebrate
collect gold stars for ourselves
We zigzag and avoid challenging conversations
Total score =
We address the fears and feelings that show up during change
learn from setbacks/ failures and discuss with team members what we learned
We hold tough conversations, including giving honest and productive feedback
straight talking and take action
How did your team score? The closer you are to -55, the more armoured leadership is present in your team. The closer you are to +55, the more daring leadership is present in your team. Is there a difference between how your team scores and the rest of the organisation?
On which aspects can you still improve?
EXTERNAL VULNERABILITY
External vulnerability is the exposure and openness of an individual or company to outside influences and changes that might be beyond their direct control. Consider certain economic fluctuations, actions from competitors, changes in regulation, and – of course – technological advancements. If fostered correctly, external vulnerability can be deployed as a tool for strategic awareness and readiness for interactions. Voyager leaders, in this regard, embrace their company’s position of external vulnerability to navigate the organisation through certain uncertainties in a more effective manner, leveraging new opportunities.
DID YOU KNOW?
People tend to remain attached to a certain choice they made in the past, even though it might no longer be a good choice anymore. The sunk cost effect is attributed to high-stakes decisions across a variety of contexts and often involves a wide range of costs that can be “sunk” – i.e., money, time, effort, emotion, and/or belief.
“We already put so much in, why not continue?”
More specifically, external vulnerability builds on the idea that no individual or company can operate in isolation nor control all variables. This means that we must recognise our dependencies on and influences from external stakeholders. Additionally, external vulnerability requires a certain openness to external input – consider the value you might derive from seeking feedback and insights from outside your organisation and, perhaps, industry. This could mean that you actively engage with experts, incorporate customer feedback into product development, or consciously collaborate with others, such as tech companies, startups, and academia in favour of new perspectives and capabilities. By doing so, you are more likely to better understand and be prepared for potential risks in the environment. By means of portraying external vulnerability, you can make a more realistic assessment of the external environment: it might help you identify risks and, more importantly, mitigate them by developing contingency plans to manage them effectively. For example, certain industry trends, competitor movements, or technological advancements might fly below your radar if your company’s external vulnerability is not calibrated correctly.
WHY STORIES
Stories cannot be underestimated. They have an amazing power to drive your emotions. Your heart rate increases, and your brain produces chemicals that induce empathy. When you show colleagues a PowerPoint presentation, perhaps some graphs, two areas of the brain light up. But up to five times as much of the brain lights up when you tell them a story about the same facts. And these facts are more likely to become part of people’s long-term memory. “Neurons that fire together, wire together”, Hebbian theory says.159
In today’s world, the power of the narrative helps us build organisational resilience in the face of constant change. Storytelling helps you portray inspirational leadership, and you don’t have to be in the C-suite to seize vision-creation opportunities! As journalist and lecturer Rebecca Knight writes, “At some point in your career, if you’re not a salesperson, you’re going to have to sell something – whether it’s your idea, your team, or yourself.”160
A story is a means of transmitting information and has existed since the “human revolution” occurred between 40,000 and 50,000 years ago. Stories predate writing. “Where humans are is where stories are. Everywhere in the world at every time in human history in every known culture, humans have told stories,”161 writes historian Clint Johnson. Stories are so fundamental to your humanity that Jonathan Adler,162 professor of psychology at Olin College, considers the narrative mode the default mode of your human cognition. Stories shape how you see yourself, and they also empower you to shape others and effect change. The founder of positive psychotherapy, Nossrat Peseschkian, writes that,
“Stories don’t appeal to the rational, the pure logic […], but on intuition and fantasy. For a long while it was a tradition to weave stories into education. They were vehicles with which certain values, moral views and behaviours were transmitted and anchored into people’s consciousness […] There are plenty of examples of how stories were used to handle problems.”163
DID YOU KNOW?
Scientists can measure the amount of oxytocin released in our brains as a result of a story.164 They can then use this measurement to forecast how much money people might donate to charity.
For example, the parable of the Good Samaritan teaches that we should show mercy and compassion to others; the story of Little Red Riding Hood can be considered a warning about trusting strangers; leadership trainings often rely on the Hero’s Journey narrative that portrays employees as heroes who must overcome certain obstacles; and JFK’s Moonshot story inspired an entire generation of scientists and engineers to innovate and push beyond boundaries.
Stories are more than just a source of idle entertainment; they help you find alternatives and solutions that were previously beyond your horizons. They help you confirm existing norms and values, but also help you relativise them. They promote a switch of perspectives and offer you examples of different ways of thinking, that might result in an “aha!” moment. Furthermore, stories help you win over people’s hearts and minds: the emotional connection boosts energy levels, empowers, and spurs people into motion. As such, stories help you create identity, find purpose, and embrace new behaviours and even entirely new mindsets.
REFLECTION
— What is your experience with stories? Do you love them or hate them? What kind of stories did you like as a child? Why? Can you remember situations (i.e. at work, at a conference, or at a family dinner) in which stories were told to make sense of radical digital change? How did you feel?
What story do you spontaneously think about when confronted with AI? Who is your favourite science-fiction author, director, …?
— Which stories do you sometimes use (or could you use) to address important technology-related change?
THE IDEA IN THE GOLDEN CIRCLE
People sometimes believe that a story rises or falls with the narrator’s speaking style or multimedia mastery. But this is just the cherry on top. The cake itself is the quality of your idea, your narrative, and how passionate you are about it.
In a digital transformation context, the Visionary leader tells the story of the transformation journey ahead. You invite colleagues to imagine how they can operate in this new environment. To accomplish this, you can craft a compelling story based on Simon Sinek’s Golden Circle principle: people don’t buy what you do, but why you do it – remember the importance of purpose. Here, as well, you concentrate on three aspects – the What, the How, and the Why.
Will’s eagerness to entertain everyone’s suggestions, adapt to each department’s individual demands, and misunderstanding that people experienced this news of change quite differently, was causing significant problems for the company. When Will is asked to present his progress to the board, he suddenly feels like he is in very tight shoes as leadership starts to doubt his capacity to manage this crucial initiative.
CHANGE COALITION
Successful organisations recognise that change is inevitable and essential for an organisation’s growth and development. However, implementing and sustaining a healthy dose of change within any organisation is easier said than done. It requires careful planning and strategic execution. As such, it becomes crucial to build a well-positioned team that helps in gaining buy-in and support from other employees – the guiding change coalition.
“A change coalition is a group of influential and diverse stakeholders within the organisation who share a common vision and goal for the change, and who can help communicate, motivate, and empower others to adopt the change. A change coalition can include leaders, managers, employees, customers, suppliers, or any other relevant parties who have a stake in the outcome of the change. A change coalition is not a fixed or formal structure, but rather a dynamic and flexible network that can adapt to the changing needs and challenges of the change initiative.”200
Surrounding yourself with the power of the many is considered a powerful tool, particularly in times of change. Consider the learnings and insights you could derive from a wide range of perspectives, experiences, and skills that not only compliment but also amplify yours. Together with people from different departments, levels of hierarchy, you form the guiding change coalition, consisting of multiple influencers – people, who despite their diverse backgrounds and expertise, might also possess and share several characteristics.201
— Credibility. Influencers are respected by their peers and have earned the trust of others, making them effective advocates for change. Coaching. They possess the ability to guide, mentor, and support colleagues in a supportive and empathetic manner. They are good at motivating and energising others, helping them navigate the complexities of transformation.
This is the only aspect that the organisation
— Linking. They act as connectors, linking pins, who facilitate communication and collaboration across teams and departments, often operating quietly but effectively below the radar.
— Position power. Influencers hold positions that enable them in making decisions or influencing others, which helps in driving transformation forward. Expertise. They have a deep knowledge in their respective fields, which allows them to provide valuable insights and solutions during the transformation journey. These can be skills related to project management, change management, or specific technical skills.
Plan. Influencers know how to plan, execute, and manage well.
These abilities help influencers in engaging other people, having colleagues ask questions, and expressing their opinions and concerns. Vested leaders identify and recruit these influencers in time and, together, the coalition plays two key roles:
Assisting others in understanding the why, where, and how of the digital transformation journey.
— Unfreezing old attitudes, values, and beliefs, and freezing new ones. They help to avoid that people revert back to the old ways.
Prior to creating such a change coalition, the active change agent – that is, the Vested leader – assesses and maps potential support and resistance within the organisation. During a period of digital transformation, a workforce typically consists of four groups: 20% resisters, 60% bystanders, 10% helpers, and 10% champions.202
Whereas the Vested, Voyager, Visionary, and Vigilant leaders are most likely to play active champion roles, making up (part of) the core change team, it might sometimes be difficult to properly identify some influential others. When they do manifest as resisters – becoming rebels, raising their fists to the change at hand –
FAILS TO PARTNER.
— … only looks after the company’s own interest. … believes whatever the company does itself it does better. … is secretive.
Outcome: The organisation lacks strong partnerships that would provide access to essential resources and innovative ideas. This stalls its ability to adapt to rapidly changing landscapes and meet customer preferences. As the overall success of the digital transformation effort is compromised, the organisation starts to lose its competitive edge and market position.
ANTIPATTERNS FOR THE VESTED DIGITAL TRANSFORMATION LEADER
FLIES SOLO.
— … neglects key influencers.
… leaves passive resistance unaddressed.
… has a lone wolf attitude.
Outcome: The organisation misses a leader that benefits from a strong support to effectively navigate challenges. Instead, fragmented efforts appear that further delay progress. Employees feel disconnected from the digital transformation journey and because of limited buy-in, growing resistance to change, and unaligned execution, the journey becomes rigid and more likely to falter.
IS UNAWARE OF ABSORPTIVE CAPACITY.
… ignores concerns.
— … doesn’t allow for a breather.
— … adheres rigidly to preset timelines and plans.
Outcome: The organisation meets resistance to new technologies and processes as employees experience increasing symptoms of change fatigue. Employees now fail to effectively learn and integrate new systems, which has caused the transformation journey to hit an abrupt pause. The organisation has committed a broad range of resources, such as time and money, but without achieving any tangible return on their investments. New technological tools are left unused or remain stuck in development, gathering dust.
DOES NOT BREAK SILO BEHAVIOUR.
… discourages cross-functional or -department initiatives.
— … makes decisions in isolation.
— … shows favouritism.
Outcome: Colleagues catch each other in the act of actively hoarding information and guarding data access. Teams refrain from collaborating across silos. The organisation risks significant fragmentation and inefficiency. Decision making is being delayed week after week and departments hunt for misaligned objectives. These isolated acts
— Mental models: the deeply held beliefs, assumptions, and values that shape how people think and behave.
As such, the Iceberg Model not only depicts various levels of a problem, but also provides us with numerous insights into how we can effect change within a system. These changes can be driven by means of certain leverage points – the locations within a system where a small shift in one level can result in changes in the overall system. The further below the surface you dive – and the deeper you go into the iceberg – the more impact a leverage point is likely to have. Given this, changing your structures and mental models has a greater impact than merely reacting in the moment and putting out fires as they arise. In a sense, events merely signal smoke and warn you that a fire might be burning somewhere. If you focus only on the smoke, you’ll soon notice that the fire is burning even hotter.
Let’s reflect on the Iceberg model and how to apply it to a digital transformation journey. In the following example, a manufacturing company recently rolled out a new AI-powered software tool to streamline operations. Things, however, aren’t going as leadership expected – on the contrary. Issues have emerged and the successful adoption of the tool has stalled.
Event: A sharp drop is noticed in employee engagement soon after implementing the AI-powered tool. Several employees are frustrated with the new system, and some outright refuse to use the software, preferring to stick to their old ways of working.
Patterns: HR noticed that this is, in fact, not an isolated incident. Over the past year, multiple digital tools and systems were introduced. Each time, excitement seemed high at the initial launch, but was soon followed by confusion and dissatisfaction, resulting in technology un-adoption.
System Structures: Employees frequently mention that they feel overwhelmed. The pace of change is too fast, and they are not provided with sufficient training opportunities. What’s more, employees are expected to learn about the system on the job. A formalised support or training process for new technology rollouts seems to be missing. Overall, tools are implemented without consulting teams, and there’s limited opportunity for feedback. This leads to a lack of technology ownership and a general sense of being disconnected to the digital transformation journey.
Mental Models: Leadership considers digital transformation to be a disruptive force that people must simply cope with. “Those who can adapt, will adapt,” they say, “those who resist change, simply do so out of laziness or fear”. They struggle with changing their perceptions about colleagues. On the employee side, many employees consider the AI-powered tool a threat to their job and don’t believe themselves capable of learning to work with it.
STRUCTURE
MODELS
• Markers in time
• (multiple) variables are observed
• Most of the world spends its time at this level
• Changes in variables that (re)occur over time
• Indicate that an event is not an isolated incident
• This levels allow us to anticipate, plan and forecast
• Written or unwritten rules that support patterns (norms, guidelines, policies,...)
• Allows to understand and address solutions
• People’s deeply held beliefs and assumptions that drive behaviour
• Thoughts and processes of reasoning that exist and maintain the structure
• Often learned subconsiously from our family, society, company...
Reaction Something happens and we fix it immediately using per-existing solutions that worked in the past
Anticipation
When we notice a pattern of events, we have the option to anticipate and plan for events. We wonder what causes the pattern.
Design
We begin to see where we can change what is happening and we identify the thinking and the mental models.
Transform
Changing a paradigm can lead to real transformation with the possibility to totally restructure the system
Iceberg analysis: By analysing issues through the Iceberg Model, the company can see that the visible event – employee disengagement – stems from deeper patterns of inadequate support during technology rollouts. These patterns are reinforced by system structures that neglect the importance of training, communication, and employee feedback and involvement. At the deepest level, biased mental models around self-change and technology hint at a strong fixed mindset spreading its roots.
Solution: To address this, the company must work on shifting the mental operating model of both leadership and employees from a fixed mindset to a growth mindset. Furthermore, system structures need to be shaped to include comprehensive training, involve employees early in the process, and create feedback loops.
The four digital transformation leaders – the Vigilant, Voyager, Visionary, and Vested leader – must collaborate, each bringing their unique perspective and ap-
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