Leading in the Digital
World

What digital does

In the digital epoch, organizational design and, more importantly, leadership, must be cognizant of the implications of this superfast bidirectionality. Most of all, it substantially raises the stakes for most decisions leaders make

Research shows that individuals from around the world favor leadership
styles that are consistent with their cultures.

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  1. Digital technologies reduce, or eliminate, the value of an elite group’s skills or knowledge and enable—and may even require—the automation of its work.
  1. Digital technologies augment the capabilities of less-skilled people, enabling them to undertake tasks they couldn’t earlier.
  1. Digital technologies enable—and may even require—work to be distributed over time and geography. 4. Digital technologies enable—and even require—work to be increasingly thought-driven instead of being muscle-powered.
  1. Digital technologies create needs that aren’t predictable and/or add disproportionately great value.
  1. Digital technologies expose organizations to radical transparency, which may—or may not —benefit them individually, or their networks or society at large.
  1. Digital technologies interact with and affect an organization’s external environment.

Ideas, processes, systems, values, and organizations that work beautifully in one epoch fail to be sufficient in the next. The same is true for leadership.

Others have seen what is and asked why. I have seen what could be and asked why not. —Pablo Picasso, Pablo Picasso: Metamorphoses of the Human Form: Graphic Works

Leading for Creativity

For example, the presence of women on boards of directors has been found to improve firm performance in America, Spain, and The Netherlands.

A 2017 McKinsey study that looked across one thousand companies in twelve countries—and within them, at the total workforce, executive team, and board of directors levels—found that the most gender diverse companies performed substantially better on metrics relevant to financial markets than the least diverse ones. The study also found similar results for ethnic and cultural diversity

Two digital-epoch Principles are also making the need for rapid change inescapable. Work is becoming more cerebral (Principle 4) and is being done across geography (Principle 3) in multicultural settings by men and women. Inclusionary mindsets, behaviors, and actions are essential because limiting one’s access to talent is unfathomably illogical. The history of long-arc-of-impact technologies suggests that mastering digital technologies won’t determine winners; making the necessary organizational and leadership changes will.

Developing the Abilities to Be Inclusive

You must first accept that people’s identities matter. People take pride in their respective genders, heritage, achievements, personalities, and a host of other related characteristics. Their perception of assumptions that others make about them can profoundly affect their ability to contribute effectively. Assumptions driven by societal, institutional, and individual biases are often grossly flawed.

You must be aware of possibilities, pick up cues, and make allowances for differences in behavior. Notice I’m urging you to “make allowances” and not “be clear about expected behavior.” The latter leads to useless advice such as “Have everyone sign off on a team charter that prescribes expectations.”

How to Learn What You Need to Know about Identity and Behavioral Diversity

Wherever and whenever possible, ask people about diverse behaviors and identities in an unthreatening way (“I noticed …” “Did I get that wrong?” “Help me understand …”).