Last week, the importance of organization culture in effecting change was examined in the article: The 8 Types of Company Culture and Their Relationships with Change. As a subset of that discussion, incumbents seeking to digitally transform will need to create specific cultural elements as well. A research by Harvard Business Review revealed the 6 cultural elements typically observed in successful digital reinventors.
The 6 elements of organization culture needed for successful digital transformation.
- The organization must be obsessed about digital turbulence. Companies that remain in their comfort zones are more resistant to change; subsequently, companies that are aware and seriously concerned about digital turbulence are more motivated to go on the offensive.
- The organization is attuned to all risks of disruption, not only from startups. While most may assume that digital disruption comes from startups, incumbents who have digitally transformed assume that disruption may come from other incumbents as well, which lends additional urgency.
- The organization delivers a dual offensive: core and diversification. Successful digital reinventors are able to strike a balance between protecting their core business performance and driving diversification efforts such that it progress is made.
- The organization fixes leadership skills first. Successful digital reinventors have their leadership teams actively driving change as opposed to managing change.
- The organization prioritizes demand-centered business play. Organizations that are seeking to digitally transform have a higher chance of succeeding by focusing on platform-based business models centered at the demand side of their value chain spectrum.
- The organization experiments with frontier technologies. Successful digital reinventors apply all digital tools that are at their disposal. However, the key takeaway here is experimentation: digital competencies are accumulated through a learning culture that enables and sustains the mastering of multiple digital platforms.
Click on the image below to read the full research findings.