As more and more companies turn to digital to transform their business, it has become clear that successful digital innovation will not happen without a digital organizational culture.
What is a digital organizational culture?
Culture, the common beliefs, values, norms, and behaviors shared by members of an organization, develops over time. It can be shaped or influenced by leaders in the organization or may simply grow and develop on its own. There are various types of organizational culture, with the most common type being a hierarchy culture where a formal and structured work environment is run by leaders who are seen as the organizers of work. This culture is managed through rules and policies, is predictable and efficient. Other types of cultures such as a clan culture is built on loyalty and tradition. The work environment is friendly, and leaders are perceived as mentors. A market culture is driven by competition and results and the goal is to always win, whereas an adhocracy culture promotes freedom, experimentation, and innovation. It emphasizes creativity and risk taking.
A digital culture incorporates attributes from these various cultures, as well as some unique variations to enable new ways to digitally innovate. Here are five ways to drive a digital culture in your organization:
Digital cultures support strong internal as well as external collaboration
- Take away functional boundaries and establish internal cross-functional teams with representation from all enterprise functions to work on any major strategic initiatives. The integrated view allows for faster time to market and reduces conflict and confusion. IT must be part of any cross-functional team to bring “digital materiality” (or as we see it – connecting design through production or execution using digital capabilities).
- Physical office spaces, as well as virtual environments should promote collaboration.
- Teams closer to the customer must be agile and fast moving to allow for evolutionary or break through innovations.
- Collaborate with customers to co-create products or services.
- Look to partners or start-ups to assist in getting to market faster.
Digital cultures support failure
- Encourage feedback and experimentation.
- Create ways for employees to contribute ideas to help solve customer or internal problems.
- Reward employees for new innovations.
Digital cultures encourage a start-up mentality.
- Act like a startup. Start-ups are less hierarchical and can adapt faster to change. They have a strong focus on customers and drive collaboration since most employees wear multiple hats.
Digital cultures hire for digital skills and create digital learning environments internally.
- Recruiting and interviewing should focus on the digital skills your company needs.
- Create employee learning journeys to include digital skill development.
- Reward employees for certifications and successes in these areas.
Digital cultures have a digital atmosphere.
- Look around at companies who excel in digital innovation. They provide the best technology to make it easy for employees to do their work.
- Drive decision-making down within your organization so managers, supervisors and even employees can react faster to change.
- Offer conveniences like those found in start-ups such as ping pong tables, snacks and beverages, easy access to coffee shops, unlimited time off and flexible working arrangements.
A digital culture won’t happen overnight but incorporating these five ideas into your day-to-day operations will put you on a great path toward developing a digital culture.
Not sure where to start? Contact us today to learn how Argano can set you on the right path for digital transformation.
For more insights for leading successful change, download our whitepaper Business Transformation 2.0: Building Your Digital Foundation with a Mindset for Change.
