On Digital’s FrontlineHow Company Culture can Make or Break Digital Transformation

Prof. Dr. Peter Vogel / www.petervogel.org / info@petervogel.org / @pevogel

© Monique Mardus

DIGITAL TRANSFORMATION

INSIGHTS

Global use of digital technologies

Digital Transformation Insights

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Source: wearesocial (01/16)

Global monthly mobile data usage (in Exabytes = billion billion bytes)

Digital Transformation Insights

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Data: Cisco

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

5

10

15

20

25

30

35

CAGR 53%

DIGITAL TRANSFORMATION

AFFECTS OUR LIVES

The way we learn and teach…

The way we interact as a family…

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The way our children spend their leisure time…

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Huffington Post: “Our kids are getting less time outside than chickens or prisoners”Telegraph: ¼ of UK children spend less than 30 minutes outside playing… PER WEEK!!!

DIGITAL TRANSFORMATION

AFFECTS THE WORKPLACE

The way desks look like…

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The way professional training works…

How Digital Transformation Impacts World of Work

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The way call centers work…

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The way knowledge diffusion works…

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HERE COME THE

DIGITAL NATIVES…

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Data: Cisco Connected World Technology Report 2012

Digital Natives

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Are now entering the workforce!

Source: Pew Research Center

Digital Natives Baby Boomers

Wireless Internet 62% 35%

Texted in the past day 80% 35%

Median # daily texts 20 5

Have a social network profile 75% 30%

Posted to profile in past 24h 32% 9%

Active multi-tasking 87% 67%

Digital Natives

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Source: UCLA

Internet naive

Internet savvy

Reading book Internet search

Technology changes our brain structure…

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Data: Cisco Connected World Technology Report 2012

WHY DOES DIGITAL

TRANSFORMATION MATTER

TO ORGANIZATIONS?

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Benefits of using mobile devices to connect employees and work

Data: HBR, 2015

How Digital Transformation Impacts World of Work

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Executives’ perspectives on which technologies are, or will be…

Source: HBR, 2015

How Digital Transformation Impacts World of Work

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“Digerati” firms outperform their peers in terms of…

Source: Capgemini Report 2014

Revenue Generation Profitability Market Valuation

DigeratiFashionistas

ConservativesBeginners

Effects of Digital Transformation on Lives & Work

The World of Work is Changing Fast…

30

Source: Dachis Group 2013

2012 2020

Lifespan of S&P 500 company 15 years 9 years

Portion of Digital Natives in Workforce

35% 75%

Speed at which data in the world doubles

2 years 3 months

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Information overload

Constant distraction

Digital Dementia

Social media anxiety

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Source: naldzgraphics.net

Digital Technology Affects Us & Our Employees

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Text neck syndrome

Gameboy back

“Sitting is the new smoking” (Forbes, 2015)

Individuals use their smartphone 100-150 times per day

Sleep texting

Text claw

More• Digital Burnout• Phantom Phone Vibration• Depression• FOMO / FOBO /

Nomophobia• 2nd effects: Obesity,

cardiovascular problems

Gallup suggests employers lay off the workplace efficiencies for a minute and think about their employees' mental health. "Make well-being an organizational strategy” in order to combat disengagement.

Disengagement due to Burnout

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Source: Gallup State of the Global Workplace 2011-2012

2008-2009

2011-2012

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

27

24

62

63

11

13

Actively Disengaged Disengaged Engaged

Productivity loss due to active disengagement

Disengaged Employees are Expensive!

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United States $ 450 – 550 bn per year

Germany $ 150 – 190 bn per year

United Kingdom $ 85 – 115 bn per year

Source: Gallup State of the Global Workplace 2011-2012

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Series1-70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30%

22%

21%

10%

-25%

-28%

-37%

-41%

-41%

-48%

-65%Low-Turnover Organizations

Safety Incidents

Patient Safety Incidents

Quality (Defects)

Absenteeism

Shrinkage

High-Turnover Organizations

Customer

Productivity

Profitability

Disengaged Employees are Expensive!

Source: Gallup State of the Global Workplace 2011-2012

MANAGING DIGITAL

TRANSFORMATION &

OVERLOAD

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Develop a Holistic Strategy for Digital Transformation

Physical: opportunities to regularly renew and recharge at work

Emotional: feeling valued & appreciated for their

contributions

Mental: opportunity to focus in an absorbed way on most important tasks & define when & where they get their work

done

Spiritual: doing more of what they do best and enjoy most, and by feeling connected to a higher purpose at work.

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Source: NY Times & HBR, 2013

Employees are happier / more productive, when four needs are met:

Performance rather than presence Inspiring work environment and engaging colleagues Shared / flexible office desks Split between office & home work Opportunities to learn and self-develop Opportunities to “leave a dent in the (company) universe”

Digital detox culture & advisors Inhouse health consultants Services to boost work-life-balance Sabbaticals

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This becomes highly relevant for Digital Natives

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Sources: McKinsey, 2011, Alexandra Samuel, HBR 2015

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- Focused work- Digital “distraction”- Digital detox

Example of a Daily Routine, combining…

Make digital detox part of your employee value proposition & recruiting Develop email policies (e.g. VW turns off servers after 5pm)

Put in place effective vacation policies

Teach your employees to delegate

Develop clear paid-time-off (PTO) policies

Make sure other employees respect each others time off

Managers must resist after-hour or weekend mails to their employees

Most importantly: Start at the top, and walk the talk yourself!

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Help your Employees to Unplug

Intel’s 8-week mindful awareness program: designed to develop… Better focus Emotional intelligence Stress management

Insurer Aetna, retailer Eileen Fisher, Twitter, and others introduced… Yoga Self-hacking practices to help employees cope with fast-moving,

always-on workplace

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Digital Detox Support at Work

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Prof. Dr. Peter VogelPeter Vogel Strategy Consulting

Seuzach - Switzerland

Mail info@petervogel.orgTwitter: @pevogel

Web www.petervogel.org

Thank you for your attention

Acknowledgements: design work by Susanna Vogel