Transformation is not exclusively technology, even if the initiative is often tied to the term ‘digital’. It is also not always what people thought it was at the beginning. And while technology is important, it is not the be-all and end-all of any transformation journey.
In an article on Harvard Business Review, Harmit Singh, executive vice president and chief financial officer at Levi Strauss & Co., wrote that digital transformations are more than turning on new solutions or digitizing platforms and workstreams.
“They’re about transforming your workforce to think in an agile and digital-first mindset and encourage the creation and adoption of technology that is new for the team and sometimes new for the industry overall.” Harmit Singh.
FutureCIO spoke to Peter Man, general manager – Hong Kong, Taiwan & Macau at Red Hat, for his take on the kind of leadership leaders need to evolve into to capitalise on the latest trends in technology and innovation.
He acknowledged that business leaders had already started their digital transformation journey years before the pandemic began to keep pace with the fast-changing world.
For much of 2020, how did they respond to the pandemic?
Peter Man: The pandemic has abruptly changed the way we live and how the business operates. For the first 6 months of the pandemic, many were more conservative and took a “wait and see” approach. Business leaders were focused mainly on enabling remote work with the required IT investment and security measures.
As time passed, the pandemic was affecting the business in two ways. First, was the need to find new ways to interact with customers and deliver the experience and services they need. Second, was the need to maintain employee morale and mental health as we could no longer meet in person.
When people realised that the pandemic would last for a while, they started to shift their focus to the creation and delivery of digital channels for business continuity. Apart from accelerating the digital transformation journey, business leaders were actively seeking new ways to survive under the new normal.
We saw more pilot projects springing up and new ideas brought into production faster than before. There was also an increased demand for automation-related initiatives.
To ensure a positive employee experience and mental well-being, leaders tried their best to keep people engaged as the pandemic worsened and the virtual fatigue grew. Employees need to be equipped with a different mental readiness for a new normal that most of us have not experienced.
Can you name three leadership lessons in 2021?
Peter Man: As mentioned earlier, the two key impacts of the pandemic are business continuity and people management. The three leadership lessons help to address these impacts.
The first leadership lesson we have in 2021 would be related to the people factor: How to maintain a strong team and encourage a positive mindset. These are the most important elements to ensure the longevity and success of any company.
Personal priorities have changed as the pandemic brought about new perspectives. Every business leader now needs to learn how to consider the work-life balance of their employees, ensuring that they have the time and ability to take care of themselves and their families.
The second lesson is to plan proactively ahead of any uncertainties. We do not know what the worst-case scenario with this pandemic would be. No one expected it to last for this long and we cannot be sure if it will be around for another 2, 5 or 10 years.
However, we can proactively plan for future go-to-market routes for the business, actively seek new markets for the business and develop entirely new operating models, instead of waiting to see what will happen next. Remain agile and flexible so businesses can react to the changing market instead of being left behind.
The third and most important lesson is to understand your business and be willing to try fast and fail fast. The abrupt disruption to the world has taught us those businesses cannot rely on a steadily healthy growing market anymore.
Instead, businesses need to create their unique position in the market and act on plans quickly before the competitors do. If not, it will be very difficult for the business to survive in a highly dynamic business and economic landscape.
What is your prediction for 2022?
Peter Man: Looking ahead to 2022, automation will still be a hot trend as it helps businesses to handle repetitive mundane tasks and increase the speed of transformation. We can expect to see many activities in the technology space, especially around big data and e-commerce.
Cybersecurity and data privacy concerns will continue to grow as digital payments become increasingly popular and more data is shared online. Given the global shortage of semiconductors, companies will see stiff competition in 2022 to emerge as the next superpower in their domain.
IT leaders will still be looking into how to securely scale the business, leveraging multiple clouds to provide flexibility and agility while maintaining full control and avoiding lock-ins.
It is not surprising to witness the continued disappearance of businesses and the scaling back of industries, especially in aviation, retail (brick-and-mortar shops and shopping malls) and oil.
However, we can expect the emergence and growth of new industries, such as gaming and entertainment i.e., virtual reality, which will result in a surge of demand in edge computing.
It will be important for IT leaders to ensure that the clouds they invest in today will give them the option of connecting to other environments as the edge evolves.
How should leaders lead in 2022?
Peter Man: For me, leaders need to take care of their people first. Companies cannot succeed in the long run without the support of great talents and a dedicated team. As we step into the third year of the pandemic, IT and business leaders should continue to work closer as one team.
As mentioned earlier, businesses need to be able to create new opportunities and a unique position for sustained growth. Correspondingly, leaders need to set new visions and communicate the future of the business to their employees.
Help employees understand the context for their work and how their job helps the company succeed. This will help to inculcate a sense of belonging and purpose in a highly uncertain and dynamic world.
