Digital technologies (e.g. social, mobile, cloud, big data, etc.) have dramatically improved how businesses operate. MIT’s Center for Digital Business purports that digitally transformed businesses are 26% more profitable than their peers. According to MIT, these digital organizations do more than simply invest in digital technologies, however. They also invest in the leadership capabilities necessary for digital transformation.
Digital leadership can’t be delegated to a consultant, a tech-savvy board member or even Chief Digital Officer. CEO’s themselves must lead digital transformation. However, most CEO’s progressed through the ranks long before the term ‘digital’ even entered the business lexicon. How can these executives get up to speed? Here are 5 fundamental ideas.
- Admit You Don’t Know
It’s tough to admit you don’t know, particularly for executives who are expected to always have an answer. In fact, research shows that the smartest people often have the toughest time learning because their identity is based on the fact that they’re the expert.
But many executives are facing similar challenges. Be vulnerable. Ask “What social media platforms are trending, how do they work, and how can they be used most effectively in our organization?” and “What are the emerging technologies that will help the organization remain not only relevant, but innovative?” After all, in the words of Socrates, “The only true wisdom is in admitting you know nothing.”
- Reverse Mentor
CEOs are often involved in mentoring relationships. Typically, though, they are the ones sharing their insight. Conversely, in reverse mentoring, it’s the CEO who is doing the learning. He or she is mentored by younger, more technically-savvy employees. In the 90’s Jack Welch used this strategy at GE when he asked 500 of his most senior executives to learn how to navigate the web from their more junior colleagues. Subsequently, multiple companies, including Ogilvy & Mather, Hewlett Packard, and Cisco Systems have all employed reverse mentoring.
- Keep Up With Social Media
Although most CEOs are relatively savvy with today’s major social media platforms, new social technology is always on the rise. Keeping up with the latest, and understanding the evolving ethical and cultural sensitivities that can be associated with social, is essential. Social media can be a great way for CEOs to interact with investors, customers and employees while learning about digital technologies. Netflix CEO Reed Hastings, for example, caused the company’s stock to rise 6% when he posted that monthly online viewing had exceeded 1 billion hours. What’s more, research indicates that CEO’s use of social media makes their employees feel inspired and technologically relevant.
- Embark on a Digital Learning Journey
Too often C-suites suffer from ‘group think.’ CEOs and their executives continually reinforce the same ways of thinking and reject new ideas as not invented here. A great way to combat this tendency is through a learning journey. In a learning journey executives leave their traditional environment and tour different contexts to experience new perspectives and fresh ideas.
Learning journeys are a valuable way to learn about how other companies are using digital technologies. Visit customers, suppliers, or peer companies to see how they use digital to interact with the marketplace, accelerate business processes, and improve decision making and employee collaboration.
- Host a Digital Disruption Summit
Digital technologies are transforming virtually every industry. At a recent CEO2CEO Digital Transformation Summit, for example, experts suggested that the introduction of virtual reality could eventually reduce air travel by as much as 30%.
Conduct a Digital Disruption Summit to consider how digital is, and potentially will continue to, disrupt your industry. Bring together subject matter experts to share their perspective on digital transformation, identify the opportunities and threats to your business, and prioritize areas for further exploration.
Like the transformation from steam to electricity, digital is a disruptive force that will continue to change how every business operates, and it will be ever evolving. CEOs owe it to themselves, their employees, and their investors to make keeping up with the latest a high priority so they can lead the way rather than get left behind. The time to start learning is now. Never have John F. Kennedy’s famous words been more true: “Leadership and learning are indispensable to each other.”
