digital leadership and governance of it in the third sector

©2014 Infonomics Pty Ltd Digital Leadership & Governance of IT

Digital Leadershipand Governance of IT

in the Third Sector

Mark ToomeyProject Editor: ISO/IEC 38500:2008Author: Waltzing with the Elephant

Managing Director Infonomics Pty LtdAustralian ICT Professional of the Year 2012

Forthcoming: Digital Leadership Manifesto

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Looking over our shoulders…

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It started long ago…

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Evolution in the way we do things…In every field of endeavour

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The way we make things…

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The way we communicate…

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The way we store and access knowledge

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We are in an interesting situation

Mobility

Social Media

Cloud

Internet of Things

BYOD

SaaS

Ubiquitoushigh speed communication

Massive, ubiquitous storage and processing capacity

Big Data, Analytics

Dawn of

the Digital

Era

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What is the Digital Era

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An unfolding landscapewhere we can do better things we have

always doneand do things we have never been able to do,

because digital technologies enable usto capture and manage information

in ways not previously possible.

It begins with a time of profound, ongoing change,

enabled by digital technologies.


The digital era brings a paradigm shift.We have seen such shifts before.

Each such paradigm change has seen:• Old jobs disappear• New jobs emerge• Resistance to change (workers, community,

leaders)• Inflexible organisations fail• New companies emerge• Flexible organisations adapt and transform

Until stability returns in a new order.

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http://s1029.photobucket.com/user/Fun2goFish/media/Renovation%20Examples/4992Hack01_zpsa2e4f2fa.jpg.html


Digital Era Response Modes

Digital Disruptors• Amazon• Seek• Realestate• Facebook• LinkedIn

Digital Wannabes• Myer

Digital Catastrophes• Kodak• HMV• Borders• Blockbuster• Fairfax

Digital Deniers• Harvey

Norman• Westpac

Digital Transformers• Burberry• Commbank• GippsTafe

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Consider the contrast

Digital catastrophes• Kodak• HMV• Borders• Blockbuster• Fairfax

Digital Transformers• Burberry• Commbank• GippsTafe

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Past era successes


Digital Catastrophes - despite brilliant technology advice and insight• Fairfax

– “Almost every time a company fails or stumbles, industry experts saw the fall coming before the board. The board is often the last to know that its company has serious problems.”.. Eric Beecher to Fairfax

– “I don’t ever want anyone coming into this boardroom again,” he told his colleagues as he held up a copy of one of Fairfax’s hefty Saturday papers, “and telling us that people will buy houses or cars, or look for jobs, without this.”… referring to Roger Corbett, now chair of Fairfax.

• HMV– "The three greatest threats to HMV are online retailers, downloadable music

and supermarkets discounting loss leader product”… the MD was visibly angry… "I have never heard such rubbish, I accept that supermarkets are a thorn in our side but not for the serious music, games or film buyer… …downloadable music is just a fad and people will always want the atmosphere and experience of a music store rather than online shopping".

Classical Leadership Failure: beyond blindness

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Digital Transformers – major change in outlook with top level leadership

• David Murray, CEO 199x – 2005– blamed technology sector for the

“tech wreck” in 2002 – Mainstream $300 m

• IT-driven innovation hard won.

• Ralph Norris CEO 2005 – 2012– We are going to rebuild this bank– Total systems replacement– Total banking process overhaul– Total executive focus on goal

• From 2008 to 2013– Profit up 8%(13), 11%(12), 13%(11)– Share price up 31% (1y) 79% (5y)– Satisfaction – market leader

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Classical Leadership Success: Delivering a Vision


Digital Transformation

Digital Transformation isan ongoing and long-term processof rapid and disruptive evolution

in society, markets, business and government,enabled by innovative use of new digital technologies,

which changes established orders of control,creates new perceptions of value

and associated value propositions,and destroys many pre-existing notions

of good practice.

-> New and evolving capability-> New and evolving expectations

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Evolving capability...

...enabled but not solely delivered by IT!

Four key elements of business capability• People – who participate in business

events• Process – what business events take place• Structure – where business events happen• Technology – enabling and recording

events

IT enables your business capability• Your entire value chain• Your supporting capabilities• But it is not autonomous, or omnipotent• Digital transformation involves more than

just adopting digital technology!

• Business capability development and change

• Process• Technology• Structure• People

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People

Tech-nology

Process Structure

Business Capability

People

Tech-nology

Process Structure

New or Improved Capability

Based on H.J. Leavitt’s Model of organisational change, published in 1965.


Evolving expectations... the landscape of Digital Transformation

External

Local

People

Tech-nology

Process Structure

Market

Regulatory

Customer

Public

Supplier

Local

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Pre-digital Post-digital

Your digital transformation touches and is influenced by your entire market context.

Ultimate success is not solely about the technology!


Achieving Digital Transformation requires…• Comprehend the current and future change in the market:

– As others are driving it;– As you will influence it;– Accounting for uncertainty;

• Conceive your evolving business model and capability:– Place in the market;– Value proposition;– Mode of operation;– Continuously updating as change unfolds;

• Orchestrate transformational change:– In your business;– In your business ecosystem;– Addressing the four fundamental pillars of change;– Constantly adjusting for external events.

• Effective Digital Leadership!

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So what is Digital Leadership

• Digital Leadership is the capability of (business) leaders to identify and realise opportunity for (business) growth and value through effective, efficient and acceptable use of Digital Technologies (IT).

• Digital Leadership:– seeks technology enabled opportunity to reinvent the business;– seeks technology enabled opportunity to expand and disrupt markets;– understands how customers, suppliers, competitors and regulators are

using technology to advance their own interests;– energises and focuses the organisation on a new and evolving vision;– does not need deep technology skill – just the ability to see the

potential in technology;– understands that success is not in technology delivery, but technology

enabled business transformation;– organises, engages and focuses the organisation for change;– activates all resources for change.

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Reframing ISO 38500 Governance of ITfor Digital Leadership & Transformation

ISO 38500 Definition:• (Corporate) governance

of IT is the system by which the current and future use of IT is directed and controlled.

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Business

Pressures

Governance

Management of IT – demand & supply

Evaluate

Plan

s, Po

licie

s

Pe

rform

ance

Conf

orm

ance

Direct MonitorPr

opos

als

(Cur

rent

and

F

utur

e us

e of

IT)

IT enabled business change

projects

IT enabled business

operations

Busin

ess

Need

s


Management of IT – demand & supply

Governance

Business

Pressures Busin

ess

Need

s


ISO 38500 Definition:• (Corporate) governance

of IT is the system by which the current and future use of IT is directed and controlled.

• The current and future use of IT includes digital transformation of the organisation and the organisation’s participation in digital transformation of the marketplace.

Market

Evolution

Digital EraGovernance

Management of Digital Business Transformation - Digital Leadership

Digi

tal

Tran

sfor

mat

ion

Plan

s & P

olicy

Busin

ess

Evolu

tion

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IT enabled business change

projects

IT enabled business

operations

Digital Transformation

Initiatives

Digital Business

Operations

Plan

s, Po

licie

s

Pe

rform

ance

Conf

orm

ance

Digi

tal e

raPe

rform

ance

Conf

orm

ance

Prop

osal

s (C

urre

nt a

nd

Fut

ure

use

of IT

)

Digi

tal E

raSt

rate

gy, P

olicy

,Pl

ans,

Initi

ativ

es

Monitor

Evaluate

Direct

Evaluate

Direct Monitor

Market

Evolution Busin

ess

Evolu

tion


Responsib

ility

Strateg

y

Acquisition

Perfor

mance

Conformance

Human

Behaviour


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Some questions for you to ask, derived from the principles• Responsibility

– Do your executives, managers and staff have a clear understanding of their role in respect of planning, building and running a successful 3rd sector organisation in the digital era?

– Who are the significant actors external to your organisation who will play a significant part in setting and realising its digital era agenda?

• Strategy– How is your organisation tackling the essential task of planning its

journey into a digital future over which it has little control?– How complete is your understanding of the evolving landscape in

which you, your peers, your clients and other actors are moving inexorable toward the digital future?

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Some questions for you to ask, derived from the principles• Acquisition

– How do the plans for evolution of your organisation exploit new digital opportunity to create improved business capability, with particular reference to evolving the business model and practices?

– How do the decision-making arrangements in your organisation enable timely and decisive action to invest in, redirect and terminate technology-enabled change initiatives?

• Performance– How deeply are your organisation’s leaders engaged in oversight

and control activities to ensure success of initiatives that are delivering digital era capability and digital transformation?

– To what extent do gaps in capability and weakness in currently used technologies limit the ability of your organisation to remain relevant and be successful as the digital era unfolds?

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Some questions for you to ask, derived from the principles• Conformance

– How is your organisation tracking, responding to and influencing the evolving conformance demands as your market evolves into the digital era?

– How are the internal policies and controls of your organisation adapting to enable an effective approach to digital transformation?

• Human Behaviour– What are the characteristics of the significant human communities

involved and affected by your organisation’s approach to the digital era?

– What impact has digital era human behaviour already had on your organisation, and how is it expected to affect your organisation in the future?

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An opportunity to consider

Responsib

ility

Strate

gy

Acquisition

Perfor

mance

Conformance

Human

Behaviour

MarketRegulatoryCustomerSupplierLocal

Public

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Can this model help

you to understand the

landscape for your

organisation's journey

into the digital era?


[email protected]@digitalleaderau

Resources& Questions

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Digital Leadership Manifestodetails at www.infonomics.com.au25% off pre-publication purchases

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