It requires a change in some core beliefs, for leaders to go digital (via HBR)

Digital Transformation

Published last week on Harvard Business Review, this post by Barry Libert, Megan Beck and Yoram Wind explains that “digital transformation halts, or fails, for many reasons”. Quote:

digital transformationIdentify how your core beliefs manifest themselves in your business. Consider your guiding principles, time and capital allocation patterns, and the key metrics that you track. For the leader of an asset building company, most of these dimensions would revolve around the efficient production and management of physical goods.

Uncover the core beliefs that motivate these behaviors. This step usually takes some ongoing reflection, and industry best practices likely influence your thinking. Focus on your beliefs about assets, value creation, and business model. For example, a core belief could be, “Physical assets are durable and reliable; people are volatile and risky.”

Invert your core beliefs and consider the implications. For example, in response to the belief about physical assets above, one could think, ‘Physical assets are actually riskier than other assets.’ Find an inversion that resonates with you—one that you think might actually be true—and consider how this new belief would change your behavior.

Extrapolate what implications these new core beliefs would have on strategy, capital allocation and key metrics. Reflect on whether others in your industry are operating under these different core beliefs, and how they might lead to disruption. Consider the implications these beliefs would have for your customers, employees, suppliers, and investors.

Act on your new beliefs and share them with your peers. Consciously change your actions until new habits form—particularly with capital allocation, but also more broadly with items like hiring, training, and KPIs.”

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