Pearl Zhu's Blog, page 1461
January 16, 2015
The Roadblocks to Applying Predictive Analytics in HR
Data-savvy mindset, business interpretation and clear link between HR data and business strategy are all key factors in building an analytics-driven HR.
Although data analytics is on the top agenda of any forward-thinking organization, the majority of companies only embrace data as an one time IT project, not an ongoing digital capabilities well embedded with their key functionality and the very fabric of organization. From talent management perspective, how to apply the abundance of information to creating a data-driven mindset in HR and how to build an analytics-based talent management in hiring, retention, predicting your talent demand, building alternative talent pipeline and performance management?
A lot has to do with creating a data-savvy mindset in HR. A lot of HR professionals are not used to using data to support the decision-making process. Regular discussions about HR data, reports, definitions and dashboards should go along way in creating a sense of awareness. Having the data isn't worth anything if HR is not conscious enough to provide the context and interpretations of the data. There is a positive shift around the business and beyond. Making data part of the talent conversation will invariable produce the required change over time. Reporting via dashboards has the potential for meaningful impact.
Data has to be "interpreted" including recommendations through business lenses. HR professionals need to look at HR requirements through the business lens to ensure their HR initiatives align more closely with critical business drivers. If it's only about computers spitting out some numbers...without interpretation, then why shall you do it? "sense-making" and application of judgement within the business context is the goal of any data analytics. HR needs to refrain from seeking to access/aggregate /analyze data until such time as you are able to translate business priorities into people initiatives. Hiring a "data scientist" or buying technology won't solve for that deficiency. Invest in sophisticated data analytics tools and technology that incorporate internal and external sources of information and add value on it. If you are not adding value to the basic data in this way then what are you doing? Hence, keep the end in mind, either HR analytics or any kind of analytics, the goal is to create synergy and achieve high performing business result.
Lack of the visible links between HR data and business outcomes and lack of overall strategy that binds them. HR data should be integrated with business information, but the biggest problems are not with IT or business complexity. The biggest issues are the lack of understanding of how the business operates, lack of building the "business logic" that links the HR/Workforce data to business outcomes and the lack of an overall strategy that binds them. Managers need to have confidence with the data and have at least a basic understanding of where it comes from and how it is derived. it doesn't always mean managers should have regular debates about data formulas, definitions etc...again they need to be comfortable with them, and have confidence in their validity, and managers have much more important things to debate, such as strategy, what to do about the outcomes, and how to make data-driven, evidence based decisions.
Overall, it is a journey to build a solid analytics capability in HR and the overall organization. Without concerted effort and consideration of the change management issues, then a culture of data driven decision making in HR and talent management will not just "spontaneously" appear. It needs hard work, persistence, resilience, and a deliberate strategy to make it happen. Furthermore, processes underpin business capability, you need a range of stakeholders and business processes to come together to make it happen, from senior management, to frontline managers, to HR, to IT. But it is worth the effort to build a data-savvy HR and manage talent not just as the cost, but as an invaluable investment for business’s long term growth and maturity.
Follow us at: @Pearl_Zhu
Although data analytics is on the top agenda of any forward-thinking organization, the majority of companies only embrace data as an one time IT project, not an ongoing digital capabilities well embedded with their key functionality and the very fabric of organization. From talent management perspective, how to apply the abundance of information to creating a data-driven mindset in HR and how to build an analytics-based talent management in hiring, retention, predicting your talent demand, building alternative talent pipeline and performance management?
A lot has to do with creating a data-savvy mindset in HR. A lot of HR professionals are not used to using data to support the decision-making process. Regular discussions about HR data, reports, definitions and dashboards should go along way in creating a sense of awareness. Having the data isn't worth anything if HR is not conscious enough to provide the context and interpretations of the data. There is a positive shift around the business and beyond. Making data part of the talent conversation will invariable produce the required change over time. Reporting via dashboards has the potential for meaningful impact.
Data has to be "interpreted" including recommendations through business lenses. HR professionals need to look at HR requirements through the business lens to ensure their HR initiatives align more closely with critical business drivers. If it's only about computers spitting out some numbers...without interpretation, then why shall you do it? "sense-making" and application of judgement within the business context is the goal of any data analytics. HR needs to refrain from seeking to access/aggregate /analyze data until such time as you are able to translate business priorities into people initiatives. Hiring a "data scientist" or buying technology won't solve for that deficiency. Invest in sophisticated data analytics tools and technology that incorporate internal and external sources of information and add value on it. If you are not adding value to the basic data in this way then what are you doing? Hence, keep the end in mind, either HR analytics or any kind of analytics, the goal is to create synergy and achieve high performing business result.
Lack of the visible links between HR data and business outcomes and lack of overall strategy that binds them. HR data should be integrated with business information, but the biggest problems are not with IT or business complexity. The biggest issues are the lack of understanding of how the business operates, lack of building the "business logic" that links the HR/Workforce data to business outcomes and the lack of an overall strategy that binds them. Managers need to have confidence with the data and have at least a basic understanding of where it comes from and how it is derived. it doesn't always mean managers should have regular debates about data formulas, definitions etc...again they need to be comfortable with them, and have confidence in their validity, and managers have much more important things to debate, such as strategy, what to do about the outcomes, and how to make data-driven, evidence based decisions.
Overall, it is a journey to build a solid analytics capability in HR and the overall organization. Without concerted effort and consideration of the change management issues, then a culture of data driven decision making in HR and talent management will not just "spontaneously" appear. It needs hard work, persistence, resilience, and a deliberate strategy to make it happen. Furthermore, processes underpin business capability, you need a range of stakeholders and business processes to come together to make it happen, from senior management, to frontline managers, to HR, to IT. But it is worth the effort to build a data-savvy HR and manage talent not just as the cost, but as an invaluable investment for business’s long term growth and maturity.
Follow us at: @Pearl_Zhu
January 15, 2015
How to Manage Digital Transformation in Systematic Way
A digital transformation is achieved via dynamic strategy-execution life cycle management.
Organizations large or small are on their digital transformation journey, although there is no one size fits all solution to ensure success, but what’re the principles or logic steps they shall follow in managing such transformation in more systematic way?
A Transformation framework which will contain the "people" considerations and organizational change components. A company or organization wanting to become more customer centric, the harder component of change will be the positive shift in the culture both during the transformation and also after. In addition to employees, this would include, stakeholders, customers and vendors. It replaces the tired traditional approach of treating each transformation as a separate project. Instead, it provides an investment transformation framework that exponentially reduces future transformation effort and one whereby the change is highly predictable and therefore less chaotic. It is made up of the following sections: 1). Determining the Business Visions, Goals and Objectives 2). Analyzing the Current State of the Business 3). Determining the Required Business Transformation 4). Developing the Business Transformation Design 5). Conducting Value Analysis on the Design
A digital transformation is achieved via dynamic strategy-execution life cycle management. Though it is not all linear steps, but clear vision and well defined business goals, the effective decision making and performance measurement are all important success factors. And more specifically, there are five follow steps: 1) Clarify transformation vision and objectives. But vision is more than a destination, it is also the way people envision change and look at things. So manage mindsets in a "growth", learning and open perspective. How can you look at things with different lenses? Why changing habits? What can you learn from the experience? How to be curious and nuanced and with enough relativity and reflection facing the transformation?
2). Make sure there is an effective decision process in place: the decision on sound basis, mixing feelings and reflection, inner wisdom and self-regulation. make sure decisions are being taken neither impulsively nor too late, in order to avoid uncertainty, the biggest threat to any transformation. And for the same reason, make sure decisions are being executed and not permanently questioned. Identify potential benefits and required changes to achieve the objectives, to find the "cause and effect" chain of intermediate milestones required to achieve end benefits and transformation objectives. This step also ensures these milestones and benefits are owned by relevant stakeholders.
3) Define transformation initiatives (projects and/or programs), respect and leverage motivations: There is no change without dopamine somewhere in the brains! There are so many theories here around, but at least do those few things: answer the "what's in it” question of any stakeholder; provide meaningful reasons or "purpose" to change; provide some rewarding experience along the transformation journey; bond people around small change initiatives; search for intrinsic motivations of participants and leverage them; provide continuous appreciation for all the "we don't like it but still need to do it" things; calm down intolerance by helping people think of the goals and of different point of views; be fair in all decision; respect status of people involved; provide maximum autonomy; celebrate the small wins
4): Animate the transformation and manage transformation initiatives: build up a positive emotional climate, foster positive relationships, communicate relentlessly, cool down stressed people before they stress others, be there at the crossroad of the transformation to make sure information and interaction flow in every direction, build up trust by bonding people around clear and benevolent intentions.
5) Manage performance and manage your own attitude or everything else would be undermined: be fair, be transparent, be energetic, have an open mindset, be reflective rather than reflexive, be an inspiring leader and a trustworthy partner. Without those 5 steps, you could miss even a simple transformation; but with these logic steps, there are better chance to reach great success even in very challenging transformation or restructuring;
“Three dimensions of transformation: The reason why some or many transformations fail - some soft factors and the challenge of complexity come into play. One thing is to implement certain best practice ingredients for a transformation. The previous sequence needs to be executed having in account simultaneously with three essential dimensions: D1 - Stakeholders, people and communication D2 - Business benefits and business value D3 - Program management, organizational structure and governance
From top down transformational leadership to bottom up culture of reflection, although you can not predict every event happening on the journey, surely you need to proactively create vision, make good strategy, and execute it via iterative continuum, and create business - talent synergy to accelerate the flywheel of digitalization.
Follow us at: @Pearl_Zhu
Organizations large or small are on their digital transformation journey, although there is no one size fits all solution to ensure success, but what’re the principles or logic steps they shall follow in managing such transformation in more systematic way? A Transformation framework which will contain the "people" considerations and organizational change components. A company or organization wanting to become more customer centric, the harder component of change will be the positive shift in the culture both during the transformation and also after. In addition to employees, this would include, stakeholders, customers and vendors. It replaces the tired traditional approach of treating each transformation as a separate project. Instead, it provides an investment transformation framework that exponentially reduces future transformation effort and one whereby the change is highly predictable and therefore less chaotic. It is made up of the following sections: 1). Determining the Business Visions, Goals and Objectives 2). Analyzing the Current State of the Business 3). Determining the Required Business Transformation 4). Developing the Business Transformation Design 5). Conducting Value Analysis on the Design
A digital transformation is achieved via dynamic strategy-execution life cycle management. Though it is not all linear steps, but clear vision and well defined business goals, the effective decision making and performance measurement are all important success factors. And more specifically, there are five follow steps: 1) Clarify transformation vision and objectives. But vision is more than a destination, it is also the way people envision change and look at things. So manage mindsets in a "growth", learning and open perspective. How can you look at things with different lenses? Why changing habits? What can you learn from the experience? How to be curious and nuanced and with enough relativity and reflection facing the transformation?
2). Make sure there is an effective decision process in place: the decision on sound basis, mixing feelings and reflection, inner wisdom and self-regulation. make sure decisions are being taken neither impulsively nor too late, in order to avoid uncertainty, the biggest threat to any transformation. And for the same reason, make sure decisions are being executed and not permanently questioned. Identify potential benefits and required changes to achieve the objectives, to find the "cause and effect" chain of intermediate milestones required to achieve end benefits and transformation objectives. This step also ensures these milestones and benefits are owned by relevant stakeholders.
3) Define transformation initiatives (projects and/or programs), respect and leverage motivations: There is no change without dopamine somewhere in the brains! There are so many theories here around, but at least do those few things: answer the "what's in it” question of any stakeholder; provide meaningful reasons or "purpose" to change; provide some rewarding experience along the transformation journey; bond people around small change initiatives; search for intrinsic motivations of participants and leverage them; provide continuous appreciation for all the "we don't like it but still need to do it" things; calm down intolerance by helping people think of the goals and of different point of views; be fair in all decision; respect status of people involved; provide maximum autonomy; celebrate the small wins
4): Animate the transformation and manage transformation initiatives: build up a positive emotional climate, foster positive relationships, communicate relentlessly, cool down stressed people before they stress others, be there at the crossroad of the transformation to make sure information and interaction flow in every direction, build up trust by bonding people around clear and benevolent intentions.
5) Manage performance and manage your own attitude or everything else would be undermined: be fair, be transparent, be energetic, have an open mindset, be reflective rather than reflexive, be an inspiring leader and a trustworthy partner. Without those 5 steps, you could miss even a simple transformation; but with these logic steps, there are better chance to reach great success even in very challenging transformation or restructuring;“Three dimensions of transformation: The reason why some or many transformations fail - some soft factors and the challenge of complexity come into play. One thing is to implement certain best practice ingredients for a transformation. The previous sequence needs to be executed having in account simultaneously with three essential dimensions: D1 - Stakeholders, people and communication D2 - Business benefits and business value D3 - Program management, organizational structure and governance
From top down transformational leadership to bottom up culture of reflection, although you can not predict every event happening on the journey, surely you need to proactively create vision, make good strategy, and execute it via iterative continuum, and create business - talent synergy to accelerate the flywheel of digitalization.
Follow us at: @Pearl_Zhu
To Celebrate 1500th Blog - Digital Master Tuning XII: The Profile of Digital Master
Digital Master refers to those high-performing, high-innovative and high-mature digital organizations or individuals.
After new year celebration, here comes the 1500th blog posting on 1/15/2015, and we continue the new book debut for Digital Master tuning - Who are the Digital Master, what’s The profile of being a Digital Master? And how to become a Digital Master?
On the cover of Digital Master, we illustrate a huge flywheel to symbolize the accelerating digital effect. We are at the digital dawn. Digital is not just about any digital technology, the cool products or the fancy website; it is the mind shift and business transformation. It requires re-organizing and orchestrating the entire organization because digital impacts every aspect of the business and it is the core of organizational strategy.
Digital Master refers to those high-performing, high-innovative and high-mature (less than 15%) digital organizations; they have both clear digital vision and well-crafted digital strategy; they are courageous to be in the vanguard of digital transformation with a quantum lead. But they also proactively develop more advanced and unique digital capabilities step-by-step, and build a digital premium into their very foundation of business, such as digital thinking, culture, agility, intelligence, and structure, and they achieve high performing results through strong digital governance discipline and reach its zenith as the digital world continues to expand and diversify. At individual level, Digital Master are those cross-generational digital professionals who are equipped with the advanced digital minds and build unique set of digital capabilities, climb to the top of Maslow’s Pyramid 2.0.
The Digital transformation, like the computer technology revolution itself, is a long journey. The outlines of the fully digitalized world have long been sketched, now the phenomenon of digital is reaching the inflection point, yet we are now entering an even more rapid and extensive period of change. As this notion of “digitization” is now affecting all aspects of business operations from innovation within and around business ecosystem, to customer engagement, to business models and processes – and no industry is exempt. Hence, most companies naturally aim to move into a more advanced stage of digital deployment by tailoring their own unique strength and business maturity. They hope to outstrip competitors and eventually become the digital masters.
“Digital Master” is the guidebook to perceive the multi-faceted impact digital is making to the business and workforce; there are following nine chapters to help businesses navigate through the journey and avoid the “rogue digital.” It also instructs digital workforce on how to shape game-changing digital mind-set, and build the right set of digital capabilities to compete for the future.
Digital vision: Digitalization is a constant game changer for the organization. It is the age of customer; empathy is the core foundation in customer-centricity. The organizations of the future are increasingly exhibiting digital characteristics in various shades and intensity.
Digital mind-set: The mind-set is far more important than talent. Talent can always be developed by those with an open and right mind-set. Leaders and talent with digital transformational mind are in higher demand, as transformational leadership is all about change.
Digital strategy: The whole is superior than the sum of pieces. A strategic vision for how digital will transform the business, understand the whole before you build out the pieces, and create a roadmap for implementing such transformation.
Digital culture - The right culture is a prerequisite for implementing digital strategy. A great culture can support a weak strategy, but a weak culture cannot support a great strategy. A strong digital culture promotes inclusiveness, empathy, creativity and agility.
Digital Capability – Have an in-depth understanding of the “recombinant” nature of digital capabilities. The maturity of a business capability would be based on the ability to deliver on customer needs; or to achieve the desired capability outcome, catalyze organizational maturity and business competitiveness.
Digital Innovation – Make a relentless commitment to innovation with expanded scope. Innovation is more often composed with the full spectrum of light, focus on not only the “hard” innovation such as products or services revolution, but also the “soft” innovation such as culture or communication evolution.
Digital Intelligence – Intelligence is nothing but the ability to solve problems. A hallmark of digital age is the proliferation of data being generated. As businesses are moving slowly into an era where Big Data is the starting point - not the end. Digital Transformation concentrates on defining a comprehensive scope of change and then figuring out how to execute it with intelligence and speed.
Digital Workforce – The “work is what you do, not where you go” shift is unstoppable. And businesses must be alert to the digital dynamic environment, adapt their workforce planning and development strategies to ensure alignment with future skill requirements.
Digital Maturity – The purpose of such radical digitalization is to make significant difference in the overall levels of customer delight. Digital makes profound impact from specific function to business as a whole, the truth is that both the digital world and the physical one are indispensable parts of the business. The real digital transformation taking place today isn’t the replacement of the one by the other; but harmonizing the hybrid nature of digitalization and making the well combinations that create wholly new sources of value and achieve high level digital maturity.
The shift to digital cuts across sectors, geographies and leadership roles, the digital transformation is now spreading rapidly to enable organizations of all shapes and sizes to reinvent themselves. But dealing with the challenge of digital change requires an accelerated digital mindset, taking an end-to-end response, building a comprehensive digital strategy, and rethinking the business and operating models, etc.
The book “Digital Master” is based on numerous professional digital debates and enriched brainstorming. From doing digital to being digital, may this book share a few insights, throw some light on digital transformation, and create the value for encompassing your digitalization journey. It is the book which was born in digital era, targets to reach the broad and diversified digital audience, from business leaders and managers to digital professionals and knowledge workers, to help them navigate through the adventurous digital journey and become the ultimate Digital Master.
Digitalization is like a flywheel, and Digital Master are the one riding above it. Surf more Information about Digital Master:
Digital Master Kindle Version Book Order URL
Digital Master Introduction URL
Digital Master Author URL
Digital Master Video Clip on YouTube
Digital Master Fun Quiz
Follow us at: @Pearl_Zhu
After new year celebration, here comes the 1500th blog posting on 1/15/2015, and we continue the new book debut for Digital Master tuning - Who are the Digital Master, what’s The profile of being a Digital Master? And how to become a Digital Master?
On the cover of Digital Master, we illustrate a huge flywheel to symbolize the accelerating digital effect. We are at the digital dawn. Digital is not just about any digital technology, the cool products or the fancy website; it is the mind shift and business transformation. It requires re-organizing and orchestrating the entire organization because digital impacts every aspect of the business and it is the core of organizational strategy.
Digital Master refers to those high-performing, high-innovative and high-mature (less than 15%) digital organizations; they have both clear digital vision and well-crafted digital strategy; they are courageous to be in the vanguard of digital transformation with a quantum lead. But they also proactively develop more advanced and unique digital capabilities step-by-step, and build a digital premium into their very foundation of business, such as digital thinking, culture, agility, intelligence, and structure, and they achieve high performing results through strong digital governance discipline and reach its zenith as the digital world continues to expand and diversify. At individual level, Digital Master are those cross-generational digital professionals who are equipped with the advanced digital minds and build unique set of digital capabilities, climb to the top of Maslow’s Pyramid 2.0.
The Digital transformation, like the computer technology revolution itself, is a long journey. The outlines of the fully digitalized world have long been sketched, now the phenomenon of digital is reaching the inflection point, yet we are now entering an even more rapid and extensive period of change. As this notion of “digitization” is now affecting all aspects of business operations from innovation within and around business ecosystem, to customer engagement, to business models and processes – and no industry is exempt. Hence, most companies naturally aim to move into a more advanced stage of digital deployment by tailoring their own unique strength and business maturity. They hope to outstrip competitors and eventually become the digital masters.
“Digital Master” is the guidebook to perceive the multi-faceted impact digital is making to the business and workforce; there are following nine chapters to help businesses navigate through the journey and avoid the “rogue digital.” It also instructs digital workforce on how to shape game-changing digital mind-set, and build the right set of digital capabilities to compete for the future.
Digital vision: Digitalization is a constant game changer for the organization. It is the age of customer; empathy is the core foundation in customer-centricity. The organizations of the future are increasingly exhibiting digital characteristics in various shades and intensity.
Digital mind-set: The mind-set is far more important than talent. Talent can always be developed by those with an open and right mind-set. Leaders and talent with digital transformational mind are in higher demand, as transformational leadership is all about change.
Digital strategy: The whole is superior than the sum of pieces. A strategic vision for how digital will transform the business, understand the whole before you build out the pieces, and create a roadmap for implementing such transformation.
Digital culture - The right culture is a prerequisite for implementing digital strategy. A great culture can support a weak strategy, but a weak culture cannot support a great strategy. A strong digital culture promotes inclusiveness, empathy, creativity and agility.
Digital Capability – Have an in-depth understanding of the “recombinant” nature of digital capabilities. The maturity of a business capability would be based on the ability to deliver on customer needs; or to achieve the desired capability outcome, catalyze organizational maturity and business competitiveness.
Digital Innovation – Make a relentless commitment to innovation with expanded scope. Innovation is more often composed with the full spectrum of light, focus on not only the “hard” innovation such as products or services revolution, but also the “soft” innovation such as culture or communication evolution.
Digital Intelligence – Intelligence is nothing but the ability to solve problems. A hallmark of digital age is the proliferation of data being generated. As businesses are moving slowly into an era where Big Data is the starting point - not the end. Digital Transformation concentrates on defining a comprehensive scope of change and then figuring out how to execute it with intelligence and speed.
Digital Workforce – The “work is what you do, not where you go” shift is unstoppable. And businesses must be alert to the digital dynamic environment, adapt their workforce planning and development strategies to ensure alignment with future skill requirements.
Digital Maturity – The purpose of such radical digitalization is to make significant difference in the overall levels of customer delight. Digital makes profound impact from specific function to business as a whole, the truth is that both the digital world and the physical one are indispensable parts of the business. The real digital transformation taking place today isn’t the replacement of the one by the other; but harmonizing the hybrid nature of digitalization and making the well combinations that create wholly new sources of value and achieve high level digital maturity.
The shift to digital cuts across sectors, geographies and leadership roles, the digital transformation is now spreading rapidly to enable organizations of all shapes and sizes to reinvent themselves. But dealing with the challenge of digital change requires an accelerated digital mindset, taking an end-to-end response, building a comprehensive digital strategy, and rethinking the business and operating models, etc.
The book “Digital Master” is based on numerous professional digital debates and enriched brainstorming. From doing digital to being digital, may this book share a few insights, throw some light on digital transformation, and create the value for encompassing your digitalization journey. It is the book which was born in digital era, targets to reach the broad and diversified digital audience, from business leaders and managers to digital professionals and knowledge workers, to help them navigate through the adventurous digital journey and become the ultimate Digital Master.
Digitalization is like a flywheel, and Digital Master are the one riding above it. Surf more Information about Digital Master:
Digital Master Kindle Version Book Order URL
Digital Master Introduction URL
Digital Master Author URL
Digital Master Video Clip on YouTube
Digital Master Fun Quiz
Follow us at: @Pearl_Zhu
January 14, 2015
What are the Characteristics of a Robust Performance Management System (PMS)
Modern PMS shall encourage creativity and innovations, not only count "doing" (efficiency), but also measure "thinking"(innovation & effectiveness) performance.
Although almost all organizations understand how crucial their people factors are for the ultimate business success. Still, many of them treat their talent as cost and resource only, their performance management is process driven and out of dated to assess, motivate and measure staff performance objectively. What are the characteristics of robust performance management system (PMS) more specifically?
PMS needs to be transparent and objective, understood by the entire organization. Performance systems are usually owned by direct boss (line management), enabled and facilitated by HR, outcomes are openly communicated to individuals, frequent follow-up on agreed actions; focus on top performers and low performers; differentiate between future leaders and experts. Have new hires on the radar screen. Take “inclusiversity” (in a broad sense such as cognitive difference) into account. They are not seen in isolation, but linked to succession planning, job rotation, capability building ... So PMS -Performance management system have to be objective and impartial. The assumption has to be that most employees want to do a good job, and if they're not, it might have to do with a skills gap, management issue, or another factor outside of "trying to get over" on management.
A good PMS is something that is OUTPUT instead of PROCESS driven. Many PMS had been focused on measuring the performance of the employees on the basis of how they have followed the rules or implemented the policies and procedures giving less relevance to the services that has been delivered and how it created relevance and impact to the end-users. Moreover, a PMS that is output based will encourage creativity and innovations, given that employees recognize the empowerment to provide their own strategies towards the common goal. The talent managers shall recognize that each employee has his own uniqueness and the success of the organization truly depends not on the existing resources but on its ability to unleash the talent of each and everyone and develop their natural best for sustainable growth.
Performance Management should be sustained and monitored at constant intervals to ensure robustness. It should strongly encourage employees to self-evaluate the performance. PMS is a process to know about the concerned person him/herself where he/she stands and also his/her boss comes to know the strengths and weakness where he/she has to help or enable him/her fill the gaps one has aligned with organizational goals. Performance management should have measurable, clear, and mutually agreed upon goals based on the organization's tactical and strategic plan. It should be clear on measuring what it intends to measure and it helps if broken down in quarters and then combined at the end of the period. Compensation may be more regional or depending on external factors and the person's own motivation.
PMS -Performance management process’s main goal is motivation and retention. There needs to be a baseline process defined across the organization to allow for consistency of the ratings...manager performing at the same level should have consistent ratings based on their experience.#1- Goals should be clear and obtainable. Regular feedback is a must and incentives should be comparable to expectation set. #2 - Consistency throughout organization and competitive within the market.#3 - A performance rating should never be a surprise to the person receiving the rating. There should be regular touch points between the person and the performance rater.
PMS also promotes teamwork, rather than for micro-management. The basic fact is that Performance Management System (PMS) is a working tool that improves performance/productivity within an organization. it should not be used to "get back" at employees, but should develop employees leading to a self driven team rather than a micromanaged one. Ensure that the system measures goal achievement, the way they were achieved (the competencies that best reflect the culture of the organization) and the core responsibilities of each employee (aligned with each department mission).- The PMS also assists to identify strengths and weaknesses of which, the latter is dealt with through mentoring, coaching and development. - The system must have buy-in from all participants. If either party feels there is any unfairness it will fail. It reduces the 'olden days' top down communication and the finger pointing approach; objectives are drawn, discussed and agreed upon; the difficulties encountered are identified and communicated timely between the concerned parties in order to take corrective action. -Do not consider performance management as a once/twice a year process. It is a daily process and managers/supervisors need to be trained in how important this is.
A robust performance management system needs to be designed with end users in mind, more output driven, not process-driven; be positive in nature, the goal is not for micromanaging, but for motivation and retention, to encourage critical thinking and innovation, and to well align employees’ strength with organization’s goal, to create synergy and optimize overall organizational maturity.
Follow us at: @Pearl_Zhu
Although almost all organizations understand how crucial their people factors are for the ultimate business success. Still, many of them treat their talent as cost and resource only, their performance management is process driven and out of dated to assess, motivate and measure staff performance objectively. What are the characteristics of robust performance management system (PMS) more specifically?
PMS needs to be transparent and objective, understood by the entire organization. Performance systems are usually owned by direct boss (line management), enabled and facilitated by HR, outcomes are openly communicated to individuals, frequent follow-up on agreed actions; focus on top performers and low performers; differentiate between future leaders and experts. Have new hires on the radar screen. Take “inclusiversity” (in a broad sense such as cognitive difference) into account. They are not seen in isolation, but linked to succession planning, job rotation, capability building ... So PMS -Performance management system have to be objective and impartial. The assumption has to be that most employees want to do a good job, and if they're not, it might have to do with a skills gap, management issue, or another factor outside of "trying to get over" on management.
A good PMS is something that is OUTPUT instead of PROCESS driven. Many PMS had been focused on measuring the performance of the employees on the basis of how they have followed the rules or implemented the policies and procedures giving less relevance to the services that has been delivered and how it created relevance and impact to the end-users. Moreover, a PMS that is output based will encourage creativity and innovations, given that employees recognize the empowerment to provide their own strategies towards the common goal. The talent managers shall recognize that each employee has his own uniqueness and the success of the organization truly depends not on the existing resources but on its ability to unleash the talent of each and everyone and develop their natural best for sustainable growth.
Performance Management should be sustained and monitored at constant intervals to ensure robustness. It should strongly encourage employees to self-evaluate the performance. PMS is a process to know about the concerned person him/herself where he/she stands and also his/her boss comes to know the strengths and weakness where he/she has to help or enable him/her fill the gaps one has aligned with organizational goals. Performance management should have measurable, clear, and mutually agreed upon goals based on the organization's tactical and strategic plan. It should be clear on measuring what it intends to measure and it helps if broken down in quarters and then combined at the end of the period. Compensation may be more regional or depending on external factors and the person's own motivation.
PMS -Performance management process’s main goal is motivation and retention. There needs to be a baseline process defined across the organization to allow for consistency of the ratings...manager performing at the same level should have consistent ratings based on their experience.#1- Goals should be clear and obtainable. Regular feedback is a must and incentives should be comparable to expectation set. #2 - Consistency throughout organization and competitive within the market.#3 - A performance rating should never be a surprise to the person receiving the rating. There should be regular touch points between the person and the performance rater.
PMS also promotes teamwork, rather than for micro-management. The basic fact is that Performance Management System (PMS) is a working tool that improves performance/productivity within an organization. it should not be used to "get back" at employees, but should develop employees leading to a self driven team rather than a micromanaged one. Ensure that the system measures goal achievement, the way they were achieved (the competencies that best reflect the culture of the organization) and the core responsibilities of each employee (aligned with each department mission).- The PMS also assists to identify strengths and weaknesses of which, the latter is dealt with through mentoring, coaching and development. - The system must have buy-in from all participants. If either party feels there is any unfairness it will fail. It reduces the 'olden days' top down communication and the finger pointing approach; objectives are drawn, discussed and agreed upon; the difficulties encountered are identified and communicated timely between the concerned parties in order to take corrective action. -Do not consider performance management as a once/twice a year process. It is a daily process and managers/supervisors need to be trained in how important this is.
A robust performance management system needs to be designed with end users in mind, more output driven, not process-driven; be positive in nature, the goal is not for micromanaging, but for motivation and retention, to encourage critical thinking and innovation, and to well align employees’ strength with organization’s goal, to create synergy and optimize overall organizational maturity.
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A Design-Centric Digital Organization
Design is an art. Like all art there is both a technical aspect and a subjective aspect.
Being "design-centric" means design is the differentiating feature or innovation in the product or brand. It implies an organizational hierarchy wherein design is the dominate force and all other decisions or compromises are subordinate, deferring to design rather than engineering or economics.
Design does not necessarily mean aesthetics, though it often does. Design could be focused on making something more accessible or easier to use rather than making it symmetrical and pretty. Design is an art. Like all art there is both a technical aspect and a subjective aspect. Good design can never be proven, it can only be judged.
In most organizations, there is the tension between "design centric" and "feature centric." Cultures dominated by systems engineers tend to place feature implementation concerns above design concerns, thus design is subordinate to implementation. Design = forming human-made objects to be pleasing and preferred by humans.Engineering = making things work as efficiently and correctly as possible.
Embrace design-centered development when you have a highly competitive environment around functionality. When the check-boxes on the back of the cereal box are no longer sufficient to drive margins; you should reinvent the category by focusing on design. That trick used to work better than it currently does because nowadays there are so many studios doing excellent design work that design is no longer a binary differentiator. It's not something you either have or don't have, it's something that you get judged at...which makes competition really hard.
The big advantage to being design centered is that you prioritize in making things likeable vs. just making them work. The ability to systematically measure audience response to design and innovation is no proof of one’s ability to predict that response; nor one’s ability attribute modulations in audience response to individual design treatments and innovations. Being design-centric certainly changes the types of innovation one gets, but doesn't make you more innovative in all perspectives.
Being design-centric is when innovation meets the products/services to fit the design proposed as long as costs meet the criteria, not over engineer for sure, with performance meeting expectations likely defined. Though design is not for its own sake, the ultimate goal is to delight the users and end customers, to improve customer experience & satisfaction, hence, a design-centric organization shall also be a customer-centric business. Follow us at: @Pearl_Zhu
Being "design-centric" means design is the differentiating feature or innovation in the product or brand. It implies an organizational hierarchy wherein design is the dominate force and all other decisions or compromises are subordinate, deferring to design rather than engineering or economics.
Design does not necessarily mean aesthetics, though it often does. Design could be focused on making something more accessible or easier to use rather than making it symmetrical and pretty. Design is an art. Like all art there is both a technical aspect and a subjective aspect. Good design can never be proven, it can only be judged.
In most organizations, there is the tension between "design centric" and "feature centric." Cultures dominated by systems engineers tend to place feature implementation concerns above design concerns, thus design is subordinate to implementation. Design = forming human-made objects to be pleasing and preferred by humans.Engineering = making things work as efficiently and correctly as possible.
Embrace design-centered development when you have a highly competitive environment around functionality. When the check-boxes on the back of the cereal box are no longer sufficient to drive margins; you should reinvent the category by focusing on design. That trick used to work better than it currently does because nowadays there are so many studios doing excellent design work that design is no longer a binary differentiator. It's not something you either have or don't have, it's something that you get judged at...which makes competition really hard.
The big advantage to being design centered is that you prioritize in making things likeable vs. just making them work. The ability to systematically measure audience response to design and innovation is no proof of one’s ability to predict that response; nor one’s ability attribute modulations in audience response to individual design treatments and innovations. Being design-centric certainly changes the types of innovation one gets, but doesn't make you more innovative in all perspectives. Being design-centric is when innovation meets the products/services to fit the design proposed as long as costs meet the criteria, not over engineer for sure, with performance meeting expectations likely defined. Though design is not for its own sake, the ultimate goal is to delight the users and end customers, to improve customer experience & satisfaction, hence, a design-centric organization shall also be a customer-centric business. Follow us at: @Pearl_Zhu
January 13, 2015
Digital Master TUning XI: How to Build an Engaged Digital Workforce
Organizations need to do a better job of communicating the "why."
Although every organization declares people are the most invaluable asset. However, about 70% of employees are not engaged in their work.Why is that? Is it a matter of a low level of motivation? What does the term motivation even mean and how to build an engaged workforce?
There any correlation between engaged leadership and engaged employees or any combination of the two elements. People are not engaged when effective Leadership is not practiced, and people are not appreciated in a heartfelt way for their contributions. All leaders must either do it naturally or be shown how well this works. Try to encourage, motivate, and support them to success on a daily basis.When they know the leaders care about them and their contribution, then they can work to reach our common goal together. The simple act of just showing courtesy and empathy can go a long way if you want to be successful in engaging a team. Engagement is assured, and excellence in performance is virtually guaranteed when people know their unique gifts are appreciated.
Organizations need to do a better job of communicating the "why." How does each employees work, accountabilities, and efforts support and contribute to the overall organization goals and strategy. Organizations need to make a concentrated effort to connect the dots for everyone and provide clear communication about the goals at each level. It's interesting that decades of global effort have gone into developing and promoting different ways and means of communication, leadership, motivation etc. in an endeavour to improve engagement. In this time educational standards have improved, the volume of research in these areas has/is increasing, as is professionals sharing knowledge. With all this effort, it seems odd that engagement is not passing 70%. Perhaps this indicates there is something else at work, something are missing. So it is important to figure out such big WHY.
In reality, the engagement falls on a full spectrum and is subject to variation over time. But a binary state of engaged or not is more often being portrayed. Fluctuation of engagement level applies to most if not all of people and is normal. Reasons for these natural fluctuations will have a variety of causes. The key is to ensure that everyone is fully engaged in an appropriate number of areas and willing to follow the leader in others. No one should always lead just as no one should only follow. If everyone is fully engaged on every topic and looked for input / acceptance, it is not clear how any actual work will get done as you would have a room full of zealots. In the same way if no one is engaged, nothing gets done as there is no leadership. The extremes do not work.
There are many different views of employee engagement. The very goals are to well align corporate goals with employees’ career goals, encourage talent growth, create synergy by putting the right talent at the right position, invite employees to brainstorm and contribute for either strategy or innovation, and explore the best practices & next practices for building an engaged and high performing digital workforces.
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Digital Master Introduction URL
Digital Master Author URL
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Digital Master Fun Quiz
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Although every organization declares people are the most invaluable asset. However, about 70% of employees are not engaged in their work.Why is that? Is it a matter of a low level of motivation? What does the term motivation even mean and how to build an engaged workforce?
There any correlation between engaged leadership and engaged employees or any combination of the two elements. People are not engaged when effective Leadership is not practiced, and people are not appreciated in a heartfelt way for their contributions. All leaders must either do it naturally or be shown how well this works. Try to encourage, motivate, and support them to success on a daily basis.When they know the leaders care about them and their contribution, then they can work to reach our common goal together. The simple act of just showing courtesy and empathy can go a long way if you want to be successful in engaging a team. Engagement is assured, and excellence in performance is virtually guaranteed when people know their unique gifts are appreciated.
Organizations need to do a better job of communicating the "why." How does each employees work, accountabilities, and efforts support and contribute to the overall organization goals and strategy. Organizations need to make a concentrated effort to connect the dots for everyone and provide clear communication about the goals at each level. It's interesting that decades of global effort have gone into developing and promoting different ways and means of communication, leadership, motivation etc. in an endeavour to improve engagement. In this time educational standards have improved, the volume of research in these areas has/is increasing, as is professionals sharing knowledge. With all this effort, it seems odd that engagement is not passing 70%. Perhaps this indicates there is something else at work, something are missing. So it is important to figure out such big WHY.
In reality, the engagement falls on a full spectrum and is subject to variation over time. But a binary state of engaged or not is more often being portrayed. Fluctuation of engagement level applies to most if not all of people and is normal. Reasons for these natural fluctuations will have a variety of causes. The key is to ensure that everyone is fully engaged in an appropriate number of areas and willing to follow the leader in others. No one should always lead just as no one should only follow. If everyone is fully engaged on every topic and looked for input / acceptance, it is not clear how any actual work will get done as you would have a room full of zealots. In the same way if no one is engaged, nothing gets done as there is no leadership. The extremes do not work. There are many different views of employee engagement. The very goals are to well align corporate goals with employees’ career goals, encourage talent growth, create synergy by putting the right talent at the right position, invite employees to brainstorm and contribute for either strategy or innovation, and explore the best practices & next practices for building an engaged and high performing digital workforces.
Digital Master Kindle Version Book Order URL
Digital Master Introduction URL
Digital Master Author URL
Digital Master Video Clip on YouTube
Digital Master Fun Quiz
Follow us at: @Pearl_Zhu
January 11, 2015
Analytics vs. Statistics
According to Wikipedia: “Statistics is the study of the collection, analysis, interpretation, presentation, and organization of data. In applying statistics to, a scientific, industrial, or societal problem, it is necessary to begin with a population or process to be studied. Populations can be diverse topics such as "all persons living in a country" or "every atom composing a crystal". It deals with all aspects of data including the planning of data collection in terms of the design of surveys and experiments.” “Analytics is the discovery and communication of meaningful patterns in data. Especially valuable in areas rich with recorded information, analytics relies on the simultaneous application of statistics, computer programming and operations research to quantify performance. Analytics often favors data visualization to communicate insight.”
Analytics and statistics are not substitutes but complements. Analytics is increasingly emerging as the convergence of statistics, information technology, problem-solving, and insights discovery. analytics was defined as “the use of data, information technology, statistical analysis, quantitative methods, and mathematical or computer-based models to help managers gain improved insight about their business operations and make better, fact-based decisions.” Using this definition, analytics is understood to be broadly divided into three categories, descriptive – using data to understand past and present performance, predictive – analyze past performance to predict the future, prescriptive – focused primarily on optimization (identification of best alternatives to minimize or maximize desired objectives). Statistics play a role in all the three categories as follows: descriptive – statistical measures, probabilities, distributions, sampling, and estimation; predictive – regression, forecasting, simulation, and risk analysis; prescriptive – linear, non-linear, integer etc. optimization. However, analytics cannot be confined to the application of statistics because it goes beyond quantitative analysis.
If Analytics is the best tool, then statistics provides a framework for understanding sources of uncertainty. There will always be a space between the observations and what actually occurs in the world and so there will always be uncertainty no matter how precise of measurements. So as long as you are concerned with uncertainty and variation you will be concerned with incorporating that uncertainty into the predictions and the reasoning about your decisions. Statistics provides a framework for thinking about those kinds of problems, so it will have a seat at the table for the foreseeable future; though there is and will continue to be debate about what the best methods are for modeling a given scenario. Optimal decision making comes from understanding sources of uncertainty. The only completely representative and accurate model of the world is the world itself. Even data is only a quantitative representation of some aspects of the world. However, we will never have the universe of data to interpret. we are lucky to have much larger samples now. but we still have to understand how the quantitative data is a subset of reality, and that what happened yesterday will not be a perfect image of today or tomorrow. We do need to modify our tools and understanding to accommodate the larger datasets available today, but contextual understanding and the implications of our assumptions is still critical. Statistics has been doing that for more than two centuries. If one is going to declare the end of statistics, they better have a replacement that is not just a rebranding of statistics, because uncertainty is not going away.
Inferential statistics are still and always will remain important; in particular modeling paradigms such as (logistic) regression, etc. even on 'big data' sets - when build predictive/inferential models and/or understand the impact of certain effects on various response variables. There seems to be a misunderstanding because predictions and forecasts, which are fairly common terms these days, are quintessentially inferential methods. statistical literacy is needed more than ever to make sense of the results. There is a danger with the current analytics/big data trend in that many business people without the appropriate background may be increasingly required to make decisions based upon 'advanced' reports, predictions, models, etc., which, ideally, require a reasonable appreciation and understanding of statistics. As a scientist, you're trained from a very early stage to do this, as it's the basis of basic scientific method and all observation depends upon it. Analytics and big data might, potentially, bring with it the misconception that this kind of understanding is not required, but it always will be. You can use more advanced analytics and visualisation tools to render things more accessible, but the underlying logic (statistics) will never go away.
Data Science does not equal statistics. It is much broader than that: Mathematical Science + Computation + intuition for the real data/domain expertise. These three pieces are all critically important. The mathematical sciences of course includes statistics, but also includes much, much more. Algebraic topology, variational analysis, partial differential equations, geometric measure theory, probability and information theory are just some examples of areas of mathematical science that can be used for data science/data analysis. Even more broadly, the academic disciplines/mathematical sciences having strong intersection with data science include at least mathematics, statistics, computer science, electrical engineering, physics and economics.Computation is obviously important -sometimes the computational effort to get the data from the truly raw state to something that can be analyzed is most of the work!The last piece, of intuition for the data -- a feeling for the data -- is critical as well. This is something that is also not controversial to those that have a lot of experience with the analysis of data. Especially when the data comes from measurements of some physical system, whether it be time series or video streams or both, you must use prior knowledge / expert knowledge to make analysis possible. One caveat -- it is true that certain types of data analysis go after such low hanging fruit that some of these more intricate types of questions are not encountered. This is especially true of business data from companies that have loads of data that they have not even begun to exploit. So the domain expertise will be important.
Analytics = Applied Statistics + Domain Expertise + Logical thinking. The best definition of modern data analytics is statistics at speed. statistics in earlier years said computation is difficult and data is scarce, but both of which in today's world is different. Contemporary analytics tools have enabled applied statistics and inferences sharing easier. Information technology has provided capability to analyze entire populations instead of samples in some scenarios but certainly not all. Business Analytics is not end of statistics. There are dangers that may befall executives in situations where analytics/Big Data is construed to be an end in itself rather than a means to an end. This can be attributed to an influx of off-the-shelf solutions (some of which are highly customizable) that are being aggressively marketed. As a result of the competitive pressures, some of the vendors are increasingly creating the impression that such solutions will substitute decision making yet they should remain as decision support solutions. Some of the solutions can facilitate complex decision making but the human element cannot be eliminated. It only takes decision making to a whole new level.
Analytics is not the end of statistics...rather statistics is the beginning of analytics!! Indeed, we will need a deeper understanding of statistics to enhance the value of analytics.
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From Mind flow to Life Flow
We love water when it is flowing in a river and merge to the sea; we love the air when the breeze is flowing, and the cloud is flying; we love the thoughts when they are flowing out from our mind; and we love the life when energy is flowing all around ... So it is the flow that casts its glow, sparkling a radiance all around.
Life means movement; and all you need is your choice of path and strategy with honest intent and work to honor your commitment. What if you are at critical point or cross road, which path shall you choose, to let the flow of life force moving to the right direction? Or even your life seems to be in a stagnation point, how about your mind? Though, what is right or wrong, just let you mind flow clearly, and drive your life move naturally.
When there is movement..there is circulation and energy. Continuous movement is what makes things happen. In every walk of life. Life is continuous process and in this continuity flows the life force, and you keep flowing with the life force, you shall be alive and bubbling with positive energy.
The nature flow means you have to move and keep on moving towards your goal or purpose in life. Continuous movement in the desired direction will take you towards your goal rather than fastness without direction. Values cannot and should not change. They have been preserved through millennia and each one should play the part in preserving them to.
Grow not at the cost of others but surpass others with your strength..Life is good or bad. In the process of life journey never look back in dismay, but keep reminding yourself that where you are today is because of continuity of every step taken.
Keep your mind flow, so your life can flow as well. It is important to remain active all the time. Your body can sit still..but your mind can not. unless it is through a conscious effort (as in meditation). Active and stimulated minds always think better, and lively relationships always thrive..
The time is flowing, water is flowing, information is flowing, your mind is flowing, and keep your life flow as well. But one should keep moving and growing mentally, emotionally and spiritually.
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Shall All Employees Understand Business
Digitization makes the business and world more interdependent and hyper-connected. However, most of organizations are still running in industrial silos, employees are just like the nuts/bolts who only know what they are doing, but have not so much clue about what the full business wheel try to achieve, and where is the destination. So how to align talent’s personal growth with business’s ultimate goal to improve employee engagement and create synergy? So shall all employees understand business.
Understanding is a very good basis for employee and business success. Obviously the employee needs the information that firstly, helps them deliver against their own direct outcomes and secondly, how they contribute to other parts of the business, especially the "core business". The more people within an organization interact and have an idea of what the other does within the total picture they elaborate and collaborate towards a coexistence within the organization with benefits for all. Although not all information can be or, is necessary to be shared, the point is how to enforce cross-functional communication and collaboration. If new processes are being put in place, invite people to open meetings to get their input. Really think through who will be affected when decisions are being made.
The more transparent a company can be with their employees the better. People like to know what is going on with the company they have chosen to invest their time with, and they want to know that the contributions they make to the company are valued. Failure to communicate changes and shifts in the company that will affect your employees often times lead to rumors, speculation, and assumptions, all of this will certainly result in a drop in morale. Businesses today are no longer in a segregated work environment, companies today are more focused on interpersonal relationships, and transparency has become a huge focus in the effort to maximize production by allowing employees the opportunity to be informed as well considered when it comes to making strategic plans for the company of today.
A SWOT analysis can be a good business education for all employees, either you are a techie or a customer contact. A summarized SWOT analysis (strengths, weaknesses, opportunities and threats) should be completed/reviewed/explained by all employees as part of their onboarding with the company. Perhaps such an exercise would at least give the new employee beginning insight to the business. As for silos, when you find the sledgehammer that effectively breaks them, can others borrow it? The organization needs employees to understand how its business works. This will help its employees to add real value to its business. Also, it will enhance the organization's culture as everyone will understand the perspective of the other department. In addition, it will let all employees work toward a one goal that's adding value to the organization.
Return on Human Assets is a subset of Return on Total Assets. There is certainly a move to putting Human Assets on the balance sheet although initially as a balance sheet note. This will open up a new set of balance sheet measures that again will be across different functions like Return on Human Assets as a subset of Return on Total Assets. Employees need to have an understanding of the business that is relevant to their work. A delivery driver for a gas supplier has significant influence over the Gross Profit margin on a day to day basis. Therefore an understanding of the "cost per drop" and how this impacts on the profit margin will empower the employees, especially if you utilize an envelope approach to the performance measures, what is the targeted cost per drop and also just as important what is the "risk point". With this information you will create a empowered and motivated team working together - dispatch, loading, maintenance and drivers/delivery all working together to achieve a shared measure.
Engaged teammates are what makes an organization successful year after year. Statistically, more than 70% of employees are disengaged in the work, it significantly decreases employees’ productivity. Engaged teammates understand what the company does, how it achieves profitability and what each department or business unit does and how it supports the company and finally they understand their own impact to the organization's success. Then management has to fully enable teammates: ideas are more important than status. Then real engagement and empowerment occurs and magic happens- the ultimate business success for the long term. It is really important for an employee to understand revenue generation and cost process so that they could understand how their role helps in achieving revenue targets and cost optimizations.
In summary, the “T-shaped” digital talent is on demand, the business executives and managers are more likely the specialized generalist who has strategic insight about the holistic business and domain expertise for their organization; the digital professionals are generalized specialist, who has broad understanding of business, regardless of their specific skillset in order to see the trees, without ignorance of forest; not only do things right, but also do the right things, in order to improve overall business efficiency, effectiveness and agility.
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January 10, 2015
Digital Master Tuning VIIII: From Innovation Life Cycle to Innovation Best Practices
Innovation is the very light every organization is chasing now, but for many, it is still a serendipity. With just about every company in every industry out there touting "Innovation" as part of their strategy or one of their core values, it's become confusing what innovation means. many companies go with the word 'innovation' these days and in some way, this word has become a catchphrase for many; just to project their companies as innovative game changers. What does innovation mean to you? And, what qualifies a company to call itself innovative? What’re the special traits of digital innovation. In the chapter VI of Digital Master, we introduce the 9-step innovation life cycle and 10 innovation best/next practices,
There are different flavors of innovations: disruptive innovation, evolutionary innovation and incremental innovation. There are “hard” innovation such as product/service innovation or “soft:” innovation such as management or culture/communication innovation. Innovation can happen anywhere across the organization and its ecosystem. Be it related to IT, procurement, operations, logistics, sales & marketing, services, HR, Finance, etc. Any particular function across the value chain can change the way it works or delivers services / products to its customers which includes its internal next functional block as well. For a big, established organization, it will be all about the game changing, market winning products it develops. These very concepts / products can turn out to be disruptive for their own products. That's disruptive innovation. For a very small start-up firm, doing something efficiently (improved internal processes, better technology and well developed organizational culture) can also mean innovation. Incremental Innovation is all about small leverage giving larger benefits. If you want to measure the ROI of innovation, It's all about how efficient you have become in serving / selling your products & services. These very services / products can increase your topline.
If innovation doesn't create that value, it's not innovation. Technology is changing constantly. If you do not innovate your competitors will and make your current successful product obsolete. Brands who want to establish a strong presence in a market have to innovate constantly, i.e. design products that fulfill consumer needs better, cheaper or differently. Many established brands become too comfortable and forget to innovate and by the time they wake up their market disappears. People come up with new ideas all the time ... once an idea happens the challenge is (in this order) making the case, attracting the investment, exciting the market and producing the product in a way that generates profit. Innovation starts with an idea but only becomes true innovation in the marketplace (whether it be product-focused or operational improvement). Innovation can be large and disruptive, or small and incremental so long as it creates tangible value that didn't exist before.
^Depth + ^Breadth = ^Probability for Innovation. Innovative ideas are one thing... Execution is a whole different matter. Innovation is the mechanism through which you grow and evolve something to something better (higher value-add) or something new (mostly based on a combination or modification of previous attributes/approaches). Innovation can happen everywhere - it is our gift as humans - a great deal of what defines us as humans actually.. whether new products, services, solutions, new sounds and music, new way of reading and publishing, new ways of educating future of generation, etc. Innovation, as an individual process or collective process helps us adapt, improve, grow and integrate. Lots of tools are available to help us think differently, assess problems and come to solutions in novel ways. When looking at business/organizations, the most powerful of these processes involves tapping the organization's ecosystem (people!) for the collective perspectives/insights of those who make up (and know intimately their parts of) the system.
People are innovators, neither process nor the technological tool which are enablers. Innovation should always be associated with anything and any work that drives better results. But more than that, innovation is a manifestation of a unique trait in some people who unconsciously or consciously strives to do or feel better through change. This is why business today desires more innovate thinking people to create an innovative culture in the workplace. Innovation can be brought in by anyone right from blue collar worker to C-suite personnel. Only through innovation do we create better products and ways of doing things. You ask why such word is found in many corporate statements..this is precisely the point and desired outcome. The fact is everyone, for all-time, has tried to be innovative in some capacity. Products have consistently been designed to solve a problem, the best companies sometimes "create" problems that people didn't even know existed then solve them. Innovation is not only externally oriented (relative to markets, customers, consumers) but can also be focused on the operations side (within a firm as well as industry structure). Innovation involves new ways of bringing together ideas and resources to create something novel. Identification of the novel is only the beginning, the heavy lifting starts as a firm aligns resources and executes ... and hopefully the firm can manage innovation life cycle and executes in a manner that provides sustained competitive advantage.
Change is accelerating all around us,.. innovation is the only way to succeed.. as a company, and as a person..Not every innovative company or individual is a digital master yet, but being a digital master means that you are an innovator or mastering on managing your innovation life cycle systematically. The main point here though is that it is really hard to be a consistently innovative company ... it requires an organization and culture that nurtures new ideas and is able to profitably execute on those ideas. This is not easy, and companies that strive for innovation (with products, services or operations), continuously struggle to achieve and sustain it. Here are two
Digital Master fun quiz to tune your creativity.
7. There are two “P”s in the innovation life cycle (the first letter of each innovation step). What do they stand for? A: Platform B: Process C: Product D: Performance
8. The high performing business innovators’ best practices are decoded as: A: SuperStars B: DataGurus C: ScoreChamps D: TopArtists
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