progressive leadership in the digital age

Berwick Partners

mailto:[email protected]

mailto:[email protected]

The components of a perfect storm

● Huge market disruption caused by technology

● Customer / supporter behaviours have changed radically

● Reputational integrity of the sector is under threat

● Channel shift in retail - massive challenge for charity shops

● Skills exodus - talent moving out of the sector

Progressive leadership in the digital age

“Digital technology has fundamentally changed two things: the dynamics of the markets in which you operate and the speed needed to remain competitive and relevant.”

Forrester Research, December 2015


“A key challenge identified in the 2015 Index is the

continued lack of engagement with digital amongst many

charities. Over half of all charities do not believe that having

a website would help increase their funding and nearly 70%

state the same about social media. With the level of basic

digital skills falling, in contrast with UK trends, attitudes

are of key concern.”

Lloyds Bank UK Business Digital Index 2015


UK: Charities marketing spend vs total marketing spend: 2007


● For 77% of the overall marketing spend, DM has represented 9% of overall annual growth in voluntary income

● For 2% of the overall marketing spend, Digital has represented 6.2% of overall annual growth in voluntary income

Source: Institute of Fundraising 2013 Fundratios Report


● Rise of the Chief Digital Officer in commercial sectors

● No equivalent roles in charity sector (a few CIOs)

● In 2015 alone, 10 CDOs have gone on to become CEO

● Charities Aid Foundation (CAF) Social landscape study: sector CEOs ranked digital as 16th out of 18 in their strategic priorities


● Sector leadership isn’t currently demonstrating vision or bravery in digital transformation

● Responsibility for the process has been delegated away from senior levels

● Digital leaders and champions within the sector are often focused on delivery not strategy

● Trustees are failing to support proactive change

source: The New Reality, 2015 - newreality.info


Question:

Why is technology and digital so under-represented within senior

management?


● Very patchy tech / digital representation at board level

● Only 2.1% of all charity trustees are under the age of 30, with the average age being 57

● Tendency to risk aversion - tech investment usually has a chunky price tag

● Specialist recruitment is a challenge but essential


Question:

Has anyone got an example of a successful digital / tech trustee appointment they can share?


Does your organisation:

● Have the right skills and capabilities?

● Ensure that audience needs drive commissioning?

● Have a consensus around organisational priorities?

● Have effective workflow in place?

● Have good internal comms and collaboration?


● The lines between digital, marcomms and IT are becoming increasingly blurred - this is largely a good thing

● However, this causes conflict and uncertainty and needs to be managed carefully

● Conduct a RACI Matrix between digital and IT to define the relationship and communicate this clearly


● Take full ownership of the digital agenda

● Open up the pathways to senior management for digital and technology ‘natives’

● Bring digital planning to the heart of the strategic process

● Set yourself and your leadership team clear KPIs around digital transformation


● Seek guidance and mentoring from your peers in retail, publishing and financial services - who has adapted well and how?

● Bring in industry expertise at board level - actively address the skills imbalance

● Acquire enough knowledge to be comfortable with the strategy, not the implementation - and the semantics!


● This is the hardest part - if your organisation is over 50 years old, the cultural behaviours will be hard to change

● Be brave - it is no longer acceptable for people to be fearful of or obstructive to technological innovation

● Lead by example: develop pilot innovation programs that meet specific needs and demonstrate how you can evolve


Berwick Partners


Dealing with the perfect storm

● Profound change requires cultural readiness

● Cultural readiness requires engagement, adaptability, consistent vision, courage and tenacity

● It’s useful to know where you’re starting from

An organisation may…

● be left behind and lose competitive edge● become irrelevant● fail to attract or retain staff, customers, partners, donors,

volunteers…● lose public trust, interest and/or reputation● worst case – suffer a catastrophe


Where are you starting from?


Some ideas on measuring how much risk lies within culture. Consider where typical behaviours in your organisation lie:

How Why

Cost Impact

Poor comms Effective

Analysis paralysis Bias for action

Tactical Strategic

Silos Joined up

Introvert Extrovert

Accountability is obtuse

Accountability is clear

Avoid failure Learn from mistakes

Engagement - none Visceral

● Find a way to clearly articulate “digital transformation” across the entire organisation

● Identify the particular current cultural strengths and weaknesses of your organisation, and internal attitudes to and adoption of digital technology

● Place effective “digital champions” at key points throughout the organisation and ensure they are clear as to what’s expected of them, and fully supported from the top


● Ensure your digital and IT teams are aligned and interlaced – with board level representation

● Require this team to continuously research, articulate and deliver the “art of the possible”

● Ensure that any technology-based change project has effective senior sponsorship and excellent communication at every stage


● Applicable to everybody● Cultural & universal● A reflection of the world as is● Collaborative, silo-averse● Incremental and constant● Audience-led● Innovative● Long term


● A silver bullet● Just about technology● Just about Fundraising & MarComms● Optional● Temporary● Simple


● Successful change is easier when people want it, and are excited by the possibilities

● People choose to engage – you can’t make them – but you can create an environment that will encourage them to choose

● For many organisations change will be a complex, slow process measured in years, needing focus, discipline and stamina!


progressive leadership in the digital age

Government & Nonprofit