Advances in digital technologies (e.g. social, mobile, cloud, big data, etc.) are dramatically improving 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 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 simply ideas.
1. 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 digital technologies are new to all of us. Be vulnerable. Ask “What’s the Internet of things?” and “What’s the difference between social media and social networking.” After all, in the words of Socrates, “The only true wisdom is in admitting you know nothing.”
2. Reverse Mentor
CEOs are often involved in mentoring relationships. Typically, though, they’re 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 employee. Jack Welch used the strategy at GE when he asked 500 of his most senior executives to learn how to use the Internet from their more junior colleagues. Subsequently, multiple companies, including Ogilvy & Mather, Hewlett Packard, and Cisco Systems have all employed reverse mentoring.
3. Use Social Media
Although CEOs use of social media is on the rise, most still use the digital tool less than one hour per week. This is unfortunate as social media is 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 advanced. So, if you haven’t already, create a social networking account, post a YouTube video, or start an external blog.
4. 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 have they use digital to interact with the marketplace, accelerate business processes, and improve decision making and employee collaboration.
5. Host a Digital Disruption Summit
Digital technologies will ultimately transform every industry. At last year’s CEO2CEO Digital Transformation Summit, for example, experts suggested that the introduction of virtual reality could reduce air travel by as much as 30%.
Conduct a Digital Disruption Summit to consider how digital might 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 ultimately change how every business operates. CEOs owe it to themselves, their employees, and their investors to get smart about digital 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.”