Twenty years ago, I joined a 10-person trek up Mount Kilimanjaro, the highest free-standing mountain in Africa. I packed some gear, read about what I was in for, and paid for accommodation, sustenance and support from a team of local Sherpas. Four of us made it to the summit. There is no way we could have without the expert guidance, infectious energy, quiet encouragement and endless patience of our Sherpas.
Since then I have worked on many complex IT-enabled business transformations in my corporate roles and in consulting engagements. I've learned that the transformation task is about so much more than having the right equipment, appropriate resources and adequate funding. The greatest successes I've seen benefited from someone who had been there before and could guide us through the inevitable ups and downs of these challenging journeys. In short, success was supported by the role of a Digital Sherpa.
While my personal mountaineering challenge was a vacation choice, today’s business leaders are compelled to embark on the digital transformation journey. With heightened expectations among users and customers and huge opportunities for operational excellence, digital capabilities are essential to every organisation – from a university to a health department, bank, super fund or energy utility.
But as most executives who have grappled with the task can attest, digital transformation is fraught with difficulty. Common problems include cost overruns, scope creep, loss of key staff, security vulnerabilities, privacy breaches and reputational damage. Unaddressed, these problems often add up to outright failure.
A critical challenge is to integrate the impacts of your transformation agenda through time and across people, processes, technology and governance, so that staff and customers experience a sustained and synchronised improvement in their experience.
In many transformation efforts, zealous and uncompromising project leaders, backed by executive sponsors impatient to see results, drive untested changes out to staff and customers in a disjointed manner, creating unintended consequences that makes their journey chaotic and frustrating.
In a survey of executives, only 14 per cent said their digital transformation efforts have led to sustained performance improvements, and only 3 per cent reported complete success at sustaining change. This is evidence that senior leaders are struggling to address the navigational, logistical, technical and people challenges of their transformation journey.
Leaders must embark on two distinct missions to their digital summit, as MIT’s Center for Information Systems Research has highlighted. Firstly, digital offerings for customers must be supported by a digital platform that acts as a foundation for personalisation and innovation. In tandem, leaders must digitise enterprise processes with an operational backbone that can unleash cost savings and enable transformation.
A Digital Sherpa can be vital to helping you reach your transformation goals, acting as an experienced sounding board and working from an independent yet empathic perspective.
Even the most talented mountaineers will use a Sherpa to guide their way to the summit.
A Digital Sherpa helps leaders succeed through deft and decisive actions:
Digital Sherpas will often engage with C-level leaders in their own domain – be it strategy, operations, technology, people and culture or risk and regulation. From this intimate understanding of the parts of the transformation task, they can support leaders to come together. The Digital Sherpa will highlight ways leaders can support each other, spot misalignment and help galvanise unity of purpose.
You may be tempted to commence your transformation unaided, waiting to decide on the need for help along your way. But a Digital Sherpa can add enormous value from the first moments of your transformation journey and even more so as your climb proceeds, by being with you from the start. From Sir Edmund Hillary in 1953 to Australia’s Alyssa Azar in 2018, most Everest summiteers have been supported by indomitable Sherpas. (Only those with an extreme appetite for risk, like Bear Grylls in 1998, succeed without one.)
And lest you think you can leave all the hard work to the Sherpa, just like climbing a mountain, you cannot simply contract it out and sit at the base camp. You must undertake that journey yourself.
When climbing a mountain, there is no single way to the top. Take Mt Kilimanjaro, the mountain I climbed in 2000 with an eclectic group of business executives and school leavers. There are seven routes to the top, some easy, some challenging. In our case, we took the Marangu Route (“the Coca-Cola Route”) to Uhuru Peak (5,895m), aligned with the skills, experience and fitness of our group.
Similarly, there is no single way to undertake a digital transformation. Approaches include:
In deciding on the right transformation route for your organisation, just as with conquering a difficult mountain ascent, you need to consider many factors:
As you can see, picking the right transformation route is a tricky yet critical step that can benefit enormously from an independent, informed perspective.
Nous is well positioned to serve as your Digital Sherpa, having guided many complex organisations through major digital transformations. We have shared both the inevitable pain of these journeys and the immense sense of achievement at the summit.
In the UK we partnered with a leading university to transform its technology capability to enable delivery of its new strategy and keep pace with rapid changes in the external operating environment. This work demonstrated the importance of thinking both operationally and strategically about the journey, and ultimately turning the ideas into action through a project management office.
We also partnered with Australian tourist park operator Discovery Parks to achieve its strategy through a better customer experience and uplifting its technology platforms and operational capability. The partnership showed the power of co-design activities with customers in the field, developing real-world prototypes for iterative testing and feedback. Our work was instrumental to improving user experience and helped significantly increase conversion rates.
From our experience, no matter which transformation route you choose, leaders on the digital climb focus on:
Success requires a candid assessment of your starting point. Managing costs, risks and revenues is just as important as supporting customers and staff. The need to build digital fitness and capability while you push upwards is inescapable. And a Digital Sherpa is an essential ally along the journey.
Get in touch to discuss how we can serve as your Digital Sherpa on your transformation journey.
Published on 4 February 2020.