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Digital Leadership and Governance of IT in the Third Sector

Explore the evolving landscape of the digital era and its impact on leadership and governance in the third sector. Learn from past digital catastrophes and successful digital transformers, and discover the keys to effective digital transformation.

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Digital Leadership and Governance of IT in the Third Sector

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  1. Digital Leadershipand Governance of ITin the Third Sector Mark Toomey Project Editor: ISO/IEC 38500:2008 Author: Waltzing with the Elephant Managing Director Infonomics Pty Ltd Australian ICT Professional of the Year 2012 Forthcoming: Digital Leadership Manifesto 0:00/1

  2. Looking over our shoulders… 0:01/1

  3. It started long ago… 0:02/1

  4. Evolution in the way we do things…In every field of endeavour 0:03/1

  5. The way we make things… 0:04/1

  6. The way we communicate… 0:05/1

  7. The way we store and access knowledge 0:06/1

  8. We are in an interesting situation BYOD Ubiquitous high speed communication Mobility Dawn of the Digital Era Massive, ubiquitous storage and processing capacity SaaS Social Media Cloud Big Data, Analytics Internet of Things Page 8 0:07/2

  9. What is the Digital Era An unfolding landscape where we can do better things we have always done and do things we have never been able to do, because digital technologies enable us to capture and manage information in ways not previously possible. It begins with a time of profound, ongoing change, enabled by digital technologies. 0:09/3

  10. The digital era brings a paradigm shift.We have seen such shifts before. • Each such paradigm change has seen: • Old jobs disappear • New jobs emerge • Resistance to change (workers, community, leaders) • Inflexible organisations fail • New companies emerge • Flexible organisations adapt and transform • Until stability returns in a new order. 0:012/2

  11. Digital Era Response Modes • Digital Disruptors • Amazon • Seek • Realestate • Facebook • LinkedIn • Digital Deniers • Harvey Norman • Westpac • Digital Catastrophes • Kodak • HMV • Borders • Blockbuster • Fairfax • Digital Wannabes • Myer • Digital Transformers • Burberry • Commbank • GippsTafe 0:014/3

  12. Consider the contrast • Past era successes • Digital catastrophes • Kodak • HMV • Borders • Blockbuster • Fairfax • Digital Transformers • Burberry • Commbank • GippsTafe 0:017/1

  13. Digital Catastrophes - despite brilliant technology advice and insight • Fairfax • “Almost every time a company fails or stumbles, industry experts saw the fall coming before the board. The board is often the last to know that its company has serious problems.”.. Eric Beecher to Fairfax • “I don’t ever want anyone coming into this boardroom again,” he told his colleagues as he held up a copy of one of Fairfax’s hefty Saturday papers, “and telling us that people will buy houses or cars, or look for jobs, without this.”… referring to Roger Corbett, now chair of Fairfax. • HMV • "The three greatest threats to HMV are online retailers, downloadable music and supermarkets discounting loss leader product”… the MD was visibly angry… "I have never heard such rubbish, I accept that supermarkets are a thorn in our side but not for the serious music, games or film buyer… …downloadable music is just a fad and people will always want the atmosphere and experience of a music store rather than online shopping". Classical Leadership Failure: beyond blindness 0:18/2

  14. Digital Transformers – major change in outlook with top level leadership • David Murray, CEO 199x – 2005 • blamed technology sector for the “tech wreck” in 2002 • Mainstream $300 m • IT-driven innovation hard won. • Ralph Norris CEO 2005 – 2012 • We are going to rebuild this bank • Total systems replacement • Total banking process overhaul • Total executive focus on goal • From 2008 to 2013 • Profit up 8%(13), 11%(12), 13%(11) • Share price up 31% (1y) 79% (5y) • Satisfaction – market leader Classical Leadership Success: Delivering a Vision 0:20/2

  15. Digital Transformation Digital Transformation is an ongoing and long-term process of rapid and disruptive evolution in society, markets, business and government, enabled by innovative use of new digital technologies, which changes established orders of control, creates new perceptions of value and associated value propositions, and destroys many pre-existing notions of good practice. -> New and evolving capability -> New and evolving expectations 0:022/2

  16. Evolving capability... ...enabled but not solely delivered by IT! • Business capability development and change • Process • Technology • Structure • People Business Capability New or Improved Capability People People Process Structure Process Structure Tech- nology Tech- nology • Four key elements of business capability • People – who participate in business events • Process – what business events take place • Structure – where business events happen • Technology – enabling and recording events • IT enables your business capability • Your entire value chain • Your supporting capabilities • But it is not autonomous, or omnipotent • Digital transformation involves more than just adopting digital technology! Based on H.J. Leavitt’s Model of organisational change, published in 1965. 0:23/2

  17. Evolving expectations... the landscape of Digital Transformation People Pre-digital Post-digital Local Local Process Structure External Supplier Customer Tech- nology Regulatory Market Your digital transformation touches and is influenced by your entire market context. Ultimate success is not solely about the technology! Public 0:26/3

  18. Achieving Digital Transformation requires… • Comprehend the current and future change in the market: • As others are driving it; • As you will influence it; • Accounting for uncertainty; • Conceive your evolving business model and capability: • Place in the market; • Value proposition; • Mode of operation; • Continuously updating as change unfolds; • Orchestrate transformational change: • In your business; • In your business ecosystem; • Addressing the four fundamental pillars of change; • Constantly adjusting for external events. • Effective Digital Leadership! 0:29/2

  19. So what is Digital Leadership • Digital Leadership is the capability of (business) leaders to identify and realise opportunity for (business) growth and value through effective, efficient and acceptable use of Digital Technologies (IT). • Digital Leadership: • seeks technology enabled opportunity to reinvent the business; • seeks technology enabled opportunity to expand and disrupt markets; • understands how customers, suppliers, competitors and regulators are using technology to advance their own interests; • energises and focuses the organisation on a new and evolving vision; • does not need deep technology skill – just the ability to see the potential in technology; • understands that success is not in technology delivery, but technology enabled business transformation; • organises, engages and focuses the organisation for change; • activates all resources for change. 0:31/3

  20. Reframing ISO 38500 Governance of ITfor Digital Leadership & Transformation Business Needs Business Pressures ISO 38500 Definition: • (Corporate) governance of IT is the system by which the current and future use of IT is directed and controlled. Governance Evaluate • Proposals • (Current and • Future use of IT) Monitor Direct Performance Conformance Plans, Policies Management of IT – demand & supply IT enabled business change projects IT enabled business operations 0:34/2

  21. Reframing ISO 38500 Governance of ITfor Digital Leadership & Transformation Business Needs Business Evolution Business Pressures Market Evolution ISO 38500 Definition: • (Corporate) governance of IT is the system by which the current and future use of IT is directed and controlled. • The current and future use of IT includes digital transformation of the organisation and the organisation’s participation in digital transformation of the marketplace. Governance Digital Era Governance Evaluate Evaluate • Proposals • (Current and • Future use of IT) Monitor Monitor • Digital Era • Strategy, Policy, • Plans, Initiatives Direct Direct Performance Conformance Plans, Policies Digital era Performance Conformance Digital Transformation Plans & Policy Business Evolution Market Evolution Management of IT – demand & supply Management of Digital Business Transformation - Digital Leadership IT enabled business change projects IT enabled business operations Digital Transformation Initiatives Digital Business Operations 0:36/2

  22. Reframing ISO 38500 Governance of ITfor Digital Leadership & Transformation Conformance Performance Responsibility Human Behaviour Acquisition Strategy 0:38/1

  23. Some questions for you to ask, derived from the principles • Responsibility • Do your executives, managers and staff have a clear understanding of their role in respect of planning, building and running a successful 3rd sector organisation in the digital era? • Who are the significant actors external to your organisation who will play a significant part in setting and realising its digital era agenda? • Strategy • How is your organisation tackling the essential task of planning its journey into a digital future over which it has little control? • How complete is your understanding of the evolving landscape in which you, your peers, your clients and other actors are moving inexorable toward the digital future? 0:39/2

  24. Some questions for you to ask, derived from the principles • Acquisition • How do the plans for evolution of your organisation exploit new digital opportunity to create improved business capability, with particular reference to evolving the business model and practices? • How do the decision-making arrangements in your organisation enable timely and decisive action to invest in, redirect and terminate technology-enabled change initiatives? • Performance • How deeply are your organisation’s leaders engaged in oversight and control activities to ensure success of initiatives that are delivering digital era capability and digital transformation? • To what extent do gaps in capability and weakness in currently used technologies limit the ability of your organisation to remain relevant and be successful as the digital era unfolds? 0:41/2

  25. Some questions for you to ask, derived from the principles • Conformance • How is your organisation tracking, responding to and influencing the evolving conformance demands as your market evolves into the digital era? • How are the internal policies and controls of your organisation adapting to enable an effective approach to digital transformation? • Human Behaviour • What are the characteristics of the significant human communities involved and affected by your organisation’s approach to the digital era? • What impact has digital era human behaviour already had on your organisation, and how is it expected to affect your organisation in the future? 0:43/2

  26. An opportunity to consider Public Can this model help you to understand the landscape for your organisation's journey into the digital era? Market Regulatory Customer Supplier Local Responsibility Performance Conformance Strategy Acquisition Human Behaviour 0:45/1

  27. Resources • & Questions www.infonomics.com.aumtoomey@infonomics.com.au@digitalleaderau Digital Leadership Manifesto details at www.infonomics.com.au 25% off pre-publication purchases 0:46/14

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