Digital Culture: The Driving Force of Digital Transformation JUNE 2021 Welcome! You are about to start a journey to digital culture or – most likely – you are already in the middle of it. This guide is designed especially for leaders like you: high-performing, busy, and looking for takeaways you can apply. You know there is no one-size-fits-all solution and that failure is a natural part of growth. But you also know how valuable it is to learn from others‘ experiences. That’s why this guide provides you with examples of leaders and companies on similar digital transformation journeys and shares what worked for them. You also know that as a leader, change at your organization often has to start with yourself. So, we have included a section for you to reflect on where you and your company currently stand when it comes to digital culture. Finally, you may want to put the information in this guide into action. We provide several suggested actions you can use right away to improve your own digital leadership and get your team involved in culture change. This document is interactive © 2021 World Economic Forum. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. World Economic Forum | Digital Culture Guidebook 2 What leaders are saying Click on the pictures to interact Reset Antonio Neri President & CEO, Hewlett Packard Enterprise Julie Sweet CEO, Accenture Stephen K. Klasko CEO, Jefferson Health President, Thomas Jefferson University Badr Jafar CEO, Crescent Enterprises Gisbert Ruehl Former CEO, Klöckner & Co SE Robert Smith CEO, Vista Equity Partners World Economic Forum | Digital Culture Guidebook 3 Guidebook Directory This interactive document will guide you through a digital office space. Each “room” presents a different way for you to learn about and accelerate digital culture: Reception • Learn what digital culture is • Learn how culture changes Stakeholder Impact Space • Learn how digital culture can drive stakeholder impact Mirror Room • Understand where you stand with a guided self-assessment Window Room • See what others are doing with trends and case studies Future Room • Get practical tips and guidelines on how to embed and strengthen the digital culture across your organization Contact Space • Submit a story for our case library or provide feedback on the guidebook Library • Reference additional cases and resources World Economic Forum | Digital Culture Guidebook 6. Library 4. Window Room 1. Reception e´ Click the labels below to enter a room 5. Future Room 2. Stakeholder Impact space 7. Contact Space 3. Mirror Room 4 Reception Back to Directory World Economic Forum | Digital Culture Guidebook 5 Reception What is digital culture? Click on the screens and flipchart to interact Back to Directory Why should you care about digital culture? Why is changing culture difficult? Which behaviours, mindsets and values promote digital culture? How can you as a leader foster digital culture? World Economic Forum | Digital Culture Guidebook 6 What is digital culture? Organizations with a strong digital culture use digital tools and data-powered insights to drive decisions and Customer-centricity while innovating and collaborating across the organization. When implemented purposefully, digital culture can drive sustainable action and create value for all stakeholders. Click for more info World Economic Forum | Digital Culture Guidebook Back to Reception Pillars of Digital Culture Collaborative Data-driven Customer-centric Innovative Collaborate across the organization and with ecosystem partners to co-create innovative solutions Use data to guide decisions and unlock value Create positive customer experiences through product and service offerings and relationships Adapt and continually improve products and processes; take risks and try new things Purposeful & Digital culture helps organizations integrate environmental, social sustainable and governance (ESG) commitments and action across the organization 7 Click on the blue boxes to interact Reset Back to Reception Why Wshhaot ius dldigityalocuultucrea?re about digitalWchyuilstduigrieta?l cOulturrgeaurngeizntantoiwons need it to stay competitive and relevant Digital culture is about being flexible and having a workforce that can respond to new challenges so your company doesn’t fall behind. According to our research, digital culture helps companies stay competitive in three ways: Adapt to rapidly changing business environments Effectively use technology Deliver (sustainable) stakeholder impact World Economic Forum | Digital Culture Guidebook 8 Back to Reception What is culture? Culture is like an iceberg, because only certain parts of it are visible. Organizational culture shows up in people’s behaviours and mindsets, which influence and are influenced by the company’s practices and values. It is “the way we do things around here”. Often, there is not a single organizational culture, but many, because it varies across departments, countries, etc. Visible Invisible Individual lens: Behaviours - Actions Mindsets - Expectations, beliefs and assumptions Values - Deeply held beliefs Company lens: Organizational practices* e.g. operating model, organizational design, business strategy, performance metrics, leadership KPIs & incentives as well as technologies & digital architecture. Company values (partially visible) The stated purpose, vision and values of a company, which are increasingly prominent in today’s value-driven business environment. Also covers the unstated rules and priorities that influence decisions. Ready to see how to apply this? Click here to see how culture changes *Note: While organizational practices are a key element of organizational culture, they are not the focus of this guide. You can find additional resources on how organizational structure can enable digital transformation in the library. World Economic Forum | Digital Culture Guidebook 9 Back to Reception Why is changing culture difficult? Cultural transformation is difficult because it requires changing many things: the behaviours and mindsets of your employees, the organizational practices that influence them and the company values that guide them. Company lens: Individual lens: Behaviours change more easily, but will revert if mindsets don’t also change. Ultimately, behaviours must be consistent with values. Mindsets take time to change because they are formed through experience. Values cannot be changed directly, but they are important to understand because they influence behaviour. When individuals’ values are aligned to those of an organization, it creates psychological safety and a feeling of belonging. Organizational practices* should be designed to encourage desired behaviours. This include performance metrics, leadership KPIs, incentives, and even your operating model and digital architecture. Company values should guide your strategy and transformation goals. Publicly stated can be updated in line with evolving ambitions, but changing the true priorities of your company, agreeing on its purpose, and aligning incentives and policies with these values, requires careful attention and honest conversations. Need to go back to the basics? Click here to see what is culture *Note: While organizational practices are a key element of organizational culture, they are not the focus of this guide. You can find additional resources on how organizational structure can enable digital transformation in the library. World Economic Forum | Digital Culture Guidebook 10 Click on the blue boxes to interact Reset Back to Reception Which behaviours, mindsets and values promote digital culture? Existing organizational culture is often at odds with digital culture (collaboration, innovation, data-driven insights and Customer-centricity). That’s why it is important to recognize the behaviours, mindsets, values and organizational practices that inhibit or promote its adoption. Collaborative Data-driven Customer-centric Innovative World Economic Forum | Digital Culture Guidebook 11 How can you as a leader foster digital culture? Individual lens Behaviours • Model from top, communicate desired behaviour, provide timely feedback • Discourage unwanted behaviours, address fears and resistance • Help your teams to understand current habits and build new ones in support of desired behaviour • Introduce behavioural nudges and incentives Mindsets • Communicate desired mindsets and how they impact specific behaviour (e.g. how to approach sales or how to approach giving feedback) • Discuss mindsets with your team (individually and/or as a group) to identify what is holding them back from the desired behaviour • Take a systems approach: If a team or individual is resistant, target the behaviours of those around them. (If they see others being rewarded for changes, then their attitude towards change will improve) Values • There is no direct way to change others’ values, so as a leader, focus on helping your team to understand the overlap of personal and organizational values to increase motivation • Use storytelling to share your own values (and how you discovered them), so your people can start the journey themselves World Economic Forum | Digital Culture Guidebook Back to Reception Company lens Organizational practices • Announce new policies, processes or ways of working • Realign incentives and KPIs to reward desired behaviours (e.g. include metrics like hours of learning, feedback from team members) • Alter strategic directions, business models or operating models • Upgrade systems, introduce new technology Company values • Articulate a vision for your organization’s desired societal impact and employee experience • Set goals to bring current stakeholder impact into alignment with your vision and openly discuss trade offs and priorities • Use storytelling to highlight core company values, so your people (and prospective employees) can ask themselves if they are a good fit for the company Learn more about Responsible Leadership 12 Stakeholder Impact Space Back to Directory World Economic Forum | Digital Culture Guidebook 13 Stakeholder Impact Space Click on the screen to interact Back to Directory What is stakeholder impact? How can digital culture drive stakeholder impact? What should my company watch out for? Click the cushions for deep dives on each digital culture pillar Collaborative Data-driven Customer-centric Innovative World Economic Forum | Digital Culture Guidebook 14 Back to Stakeholder Impact Space Deep dive: Examples of collaborative culture enabling stakeholder impact Sustainable and responsible supply chain Work with suppliers to reduce environmental impacts, ensure human rights and support Diversity & Inclusion Behaviours • Partner with suppliers to improve their environmental and social impact Organizational practices • Seek preferred suppliers with strong ESG credentials • Regularly audit suppliers for social and environmental standards • Create a supply chain “control tower” for safe and fair working conditions and environmental sustainability Mindsets • “Suppliers are critical partners” Company values • Company commitments, e.g. no use of prison labour, no child labour, no forced labour See cases Inclusive workplace Ensure diversity, equity and inclusion at work Behaviours • Centre and empower diverse talent through inclusive language and interactions • Seek inter-generational feedback Organizational practices • Use technology to understand employee experience and engagement levels • Train and incentivize managers to enhance inclusion and belonging • Standardized performance evaluations to increase objectivity • Use digital tools to improve accessibility, e.g. voice-assistants Mindsets • “Diverse teams perform better” • “Psychological safety improves performance” Company values • Respect, compassion, fairness • “Our company is a great place to work for all our people” Openness and collective action Drive ESG impact through cross-industry engagement and collaboration with external partners Behaviours • Share data and work with others beyond the company Organizational practices • Examine how your company influences laws and institutions, e.g. political contributions, participation in industry fora • Check that policies are in line with values, e.g. UN SDG target for zero instances of bribery • Join industry pacts for best practices • Partner with NGOs and start-ups to speed innovation and promote fair practices Mindsets • “Social licence to operate can be revoked” Company values • Corporate citizenship World Economic Forum | Digital Culture Guidebook 15 Back to Stakeholder Impact Space Deep dive: Examples of data-driven culture enabling stakeholder impact Real-time ESG insights Embed ESG data into core systems to enable real-time performance tracking Behaviours • Measure environmental and social impacts across lifecycle of products and services, in supply chain and in local communities • Benchmark DEI across the organization, e.g. employee diversity at level, percent of employees earning a living wage, gender pay gap Organizational practices • Enable data-sharing across organizational silos to understand aggregate social and environmental impacts in production, operations and supply chain • Utilize standardized metrics facilitate cross-industry comparisons Mindsets • “What isn’t measured isn’t managed” Company values • Continuous focus on improving ESG KPIs ESG Transparency Define ESG KPIs and actively track performance towards goals Behaviours • Track progress towards stated goals • Flag when at-risk of missing targets and implement plans to get back on track Organizational practices • Establish KPIs, e.g. Scope 1, 2 & 3 carbon emissions, gender balance of workforce Mindsets • “Stakeholders appreciate honesty about our progress” Company values • Set time-bound targets and communicate them across the company, e.g. gender balance across all levels of management, 100% of employees earn a living wage, net-zero carbon emissions See cases Stakeholder value Use ESG metrics to inform business decisions Behaviours • Guide decisions and strategy with ESG considerations • Openly discuss how to treat potential financial and sustainable trade-offs Organizational practices • Ensure that dashboards and key decision documents include ESG metrics • Integrate ESG KPIs into performance evaluation Mindsets • “Sustainability is a key priority” • “We should strive to select the most sustainable manufacturing inputs” Company values • Financial performance must not come at the expense of stakeholders World Economic Forum | Digital Culture Guidebook 16 Back to Stakeholder Impact Space Deep dive: Examples of customer-centric culture enabling stakeholder impact Response to customer ESG demands Meet evolving customer expectations by centralizing ESG in value proposition Behaviours • Build positive impact into value proposition, including • Impact on customer (e.g. healthy foods, financial well-being) • Links to additional services (e.g. purchase of eyeglasses supports access to vision care in rural communities) • Sustainable products (e.g. recycled or organic inputs) • Label products with ESG information Organizational practices • Partner with environmental or social certification providers • Review existing products/services for bias or insensitivity and implement plan to rebalance (e.g. rebrand offensive brands) Mindsets • “Diversity is an asset and differentiator that enables meeting nuanced customer needs” Company values • Communicate ESG value to customers See cases Incentives for sustainable behaviour Encourage customers to make more sustainable choices during & after purchase Behaviours • Encourage customers to make more sustainable choices during and after point of purchase such as through delivery, reuse, recycling • Deepen customer relationship by educating customers on responsible use of products and services (e.g. less use of water, safe use of addictive products, etc) Organizational practices • Engage customers on sustainability (e.g. platforms, blogs, app displaying CO2 impact of products) • Offer sustainable options, e.g. carbon offsets Mindsets • “The market for sustainable products and services can be expanded through customer engagement and education” • “Reducing scope 3 emissions requires customer engagement” Company values • Scope 3 emissions targetsnet-zero carbon emissions Target under-served markets Provide products/services for unmet consumer needs, e.g. base of the pyramid, marginalized customer segments Behaviours • Authentically reach new customer segments by aligning regional and cultural expectations • Develop new products, services and go-to-market strategies for under-served groups • Centre and empower diverse talent to create new customer offers and deepen customer relationships Organizational practices • Diversify delivery channels to reach a range of customers • Review product/service portfolio for coverage across geographies and social groups Mindsets • “We can tailor products and expand delivery channels to reach new customers” • “Even groups who have not bought our products before are potential customers“ Company values • Encourage out-of-the-box thinking and application of ideas to new contexts World Economic Forum | Digital Culture Guidebook 17 Back to Stakeholder Impact Space Deep dive: Examples of innovative culture enabling stakeholder impact Sustainable products and services Improve ESG performance of products/services Behaviours • Prototype ideas for more sustainable or impactful products and services, e.g. • Healthier foods, ed-tech • Battery electric vehicles, plastic-free packaging • Hold innovation sessions to reimagine products and services • Apply circular economy principles Organizational practices • Fund research and development for improved impact of products (e.g. for energy efficiency) • Provide employee incentives for contributions towards improved sustainability Mindsets • “Sustainability challenges are value-enhancing opportunities that require innovation and creative solutions” Company values • We can create solutions • Recognize employees for their contributions towards sustainability goals Engineering and technology Use technology to improve efficiency, guarantee human rights in supply chain, etc. Behaviours • Innovate engineering to improve sustainability in production e.g. use less water, reduce emissions by simplifying and shortening supply chain, etc • Innovate in production to increase health and safety of workers Organizational practices • Automate intelligent workflows and processes to create measurable efficiency gains and improve resource utilization • Use blockchain and other technologies to ensure a responsible supply chain, e.g. verifying that mined or farmed supplies came from designated partners Mindsets • “Technology is a key lever for sustainability” Company values • Constantly pursue incremental improvements See cases Sustainable business models Develop new revenue models to unlock value while improving sustainability Behaviours • New ways of working to reduce negative and increase positive impacts, such as PaaS to shift incentives toward reduced resource use by extending useful product life Organizational practices • Utilize sustainable business models, such as X-as-a-service, which can promote repairing rather than replacing items and buying only what is used; or pricing models that promote purchasing only of what is needed to reduce waste • Use cradle to cradle or circular economy design principles to shape strategy Mindsets • “Sustainability challenges are value-enhancing opportunities that require innovation and creative solutions” Company values • Company purpose intertwined with sustainability goals World Economic Forum | Digital Culture Guidebook 18 Mirror Room Back to Directory World Economic Forum | Digital Culture Guidebook 19 Looking into the mirror – where you stand on digital culture Click here to start a guided self-assessment Back to Directory World Economic Forum | Digital Culture Guidebook 20 Back to Mirror Room Guided self-assessment Click the boxes below to navigate Introduction Collaboration Data-driven Customer-centric This assessment is intended as a rough guide to help you judge in which pillars you and your organization have strong digital culture behaviours, mindsets, practices and values, and where there is room for improvement. To take the assessment: 1 For each question, select the statement that best describes you or your organization. 2 Get immediate feedback by revealing which statements foster digital culture. Self-Assessment Innovative 3 Get insights on your answers and guidance for the next steps. Stakeholder impact Reflection World Economic Forum | Digital Culture Guidebook 21 Reset Back to Mirror Room Self-Assessment Collaboration Click the boxes below to navigate Introduction Collaboration Data-driven Customer-centric Innovative Stakeholder impact Reflection Individual Level Click the below circles to interact Statement A I think ideas should only be shared once they are somewhat solid. I tend to work alone and to solve problems by myself. Statement B I think it is valuable to involve many people when developing a new idea, even at an early stage. I tend to co-create and share solutions even o utside my team or company. Organizational Level In our orgaInnoizuartiorng,aenxipzaetritosnt,epnedrftoormkeaenpckenisow ledge to measuretdhebmy isnedlviveids.ual KPIs. In our organization, performance is measured by team KPIs. In our oInrgoaunrizoartgioann,izeaxtpioenr,tsextepnedrttsoteknedeptoknkeoewpledge to knowledthgeemtosetlhveems.selves. In our organization, experts act as “knowledge hubs”, i.e. sharing their knowledge openly and enabling other people. Click here to reveal the statements fostering digital behaviour, mindsets, practices or values World Economic Forum | Digital Culture Guidebook 22 Reset Back to Mirror Room Self-Assessment Data-driven Click the boxes below to navigate Introduction Collaboration Data-driven Customer-centric Innovative Stakeholder impact Reflection Individual Level Click the below circles to interact Statement A I typically use my and others experiences and practical evidence to prepare a decision. Statement B I typically use all data sources available to prepare a decision. I tend to wait until a technology has really proven to work somewhere before I use it. I like to be an early adopter for new technologies. Organizational Level I(nNoewur) otergchaniozlaotgioiens, eaxnpdedrtastateancdcteosskeaerep pkrnoovwidledgteo tao selected tghreomupseolfvesm. ployees. All our employees are trained in basic technical understanding/new technologies. WIen toruacr koragnadnisztaotrioenc,uesxtpoemretsr taennddotothkeer ereplekvnaonwt ldeadtgae, btout it cannot be easily qthueemriesdelovresin.tegrated to answer strategic questions. We use data platforms to answer strategic questions and extract business value from data Click here to reveal the statements fostering digital behaviour, mindsets, practices or values World Economic Forum | Digital Culture Guidebook 23 Reset Back to Mirror Room Self-Assessment Customer-centric Click the boxes below to navigate Introduction Collaboration Data-driven Customer-centric Innovative Stakeholder impact Reflection Individual Level Click the below circles to interact Statement A I integrate customer feedback which I regard as valuable. Statement B I take all customer feedback into consideration when building solutions. I develop solutions with my team of experts. I co-create with customers. Organizational Level WIneouvar louregsatnaizbailittioyna,nedxpcoernttsintueintydatondkedeopnkontocwonlesdtganettlyo questiothnetmhesesltvaetsu.s quo. We constantly question our products and processes in order to keep up with potentially changing customer requirements. In our orgaWneizraetsiopno,nedxptoeratsndtelnedartnofkroemephkignhowledge to priotrhiteymcsoemlvpelsa.ints. We always respond to complaints, which we believe leads to continuous improvement across the organization and its ecosystem partners. Click here to reveal the statements fostering digital behaviour, mindsets, practices or values World Economic Forum | Digital Culture Guidebook 24 Reset Back to Mirror Room Self-Assessment Innovative Click the boxes below to navigate Introduction Collaboration Data-driven Customer-centric Innovative Stakeholder impact Reflection Click the below circles to interact Statement A I tend to perceive failure as not being an option for me and my team. Statement B I tend to perceive the option to fail as part of the game. Individual Level I see myself as someone who prefers to work in familiar situations. I typically expect my team to flawlessly run existing solutions/processes. I see myself as someone who regularly leaves their comfort zone. I typically invite my team to challenge existing solutions/processes. Organizational Level IInnoouurroorrggaanniizzaattiioonn,,epxepoeprltes tend to dkeisegpuiksneomwilsetdagkest.o themselves. In our organization, it is “safe to fail”. Click here to reveal the statements fostering digital behaviour, mindsets, practices or values World Economic Forum | Digital Culture Guidebook 25 Reset Back to Mirror Room Self-Assessment Stakeholder impact Click the boxes below to navigate Introduction Collaboration Data-driven Customer-centric Innovative Stakeholder impact Reflection Individual Level Click the below circles to interact Statement A Social and environmental sustainability initiatives come at the cost of financial performance. Statement B Social and environmental sustainability initiatives can help us reduce costs, drive value, and manage risk. Organizational Level Our organization primarily uses financial metrics to make decisions. In Wouer doorgnaontizmateioans,uerexptheertsditveenrdsittyookfeoeuprkwnoorwkfleodrcgee. to themselves. Our organization uses environmental, social and governance metrics as well as financial metrics to make decisions. We have time-bound targets for achieving diversity at all levels across the organization. In ouWr oerghavneizatitoena,mexthpaetrtms atennadgetos okeuer psokcnioalwalendge to environmental initiativtehseimn saedldveitsio.n to our product and service management teams. Social and environmental sustainability considerations are central parts of our products and services value proposition. Click here to reveal the statements fostering digital behaviour, mindsets, practices or values World Economic Forum | Digital Culture Guidebook 26 Back to Mirror Room Self-Assessment Reflection Click the boxes below to navigate Introduction Collaboration Data-driven Customer-centric Innovative Stakeholder impact Reflection I have answered the questions – what now? • Note whether you selected “Statement A” or “Statement B” more often (generally and for certain pillars). Also note whether you selected “Statement B” more often for individual or organizational questions. • “Statement B” represents stronger digital culture at an individual or organizational level. “Statement A” options are generally associated with behaviours, mindsets and practices that may inhibit that pillar of digital culture from fully emerging. • Answers are meant to be indicative. They are not comprehensive and they should be interpreted within the context of your organization. Which pillar is the most digital and which has the most room for improvement? • The pillar in which you selected the most “Statement A” options may have the most room for improvement, so be sure to focus some attention on encouraging digital behaviours, mindsets and practices in this pillar. • The pillars in which you selected the most “Statement B” options may be the strongest aspects of digital culture in yourself or your organization. Keep this is mind, as you can build on these strengths by identifying what in your organization may have enabled these behaviours/mindsets to flourish. What does it tell me if scores for individual and organizational level are different? • If you noted that you selected more “Statement A” for the individual questions than organizational questions, this suggests that focusing on your own digital behaviours and mindsets would be a good place to start. Launch one of the “organizational initiatives” and get involved as a participant. You can also prepare to lead change with the “personal actions.” • If you notice that you selected more “Statement A” options for the organizational questions, then focus on “organizational initiatives” in the Future Room. Click to see suggested actions in Future Room World Economic Forum | Digital Culture Guidebook 27 Window Room Back to Directory e´ World Economic Forum | Digital Culture Guidebook 28 Looking out the window – what others are doing to foster digital culture Reset Back to Directory Get inspired Best practices Collaboration Data-driven Innovation Customer-centricity Stakeholder impact Additional Cases in the Library World Economic Forum | Digital Culture Guidebook 29 Back to WinBdaocwk Rtoomomenu Best practices: What you can learn from successful companies Although every organization must undertake cultural transformation in line with its own priorities and context, we note that successful companies tend to follow these eight actions that you can apply in your organization. 1. Have a clear vision and purpose Know where you want to go. How do you want to influence your industry, stakeholders, and the world? Articulate this with a clear vision and purpose and set priorities accordingly to maximize impact. 2. Get leaders on board Cultural transformation requires CEO sponsorship and business leader engagement. Make sure the team is aligned on the desired outcomes and reasons for undertaking this process. Identify champions who can help to promote and be role models for change. 3. Define KPIs What gets measured gets managed. Define KPIs to measure progress towards the desired outcome, in line with priorities and clearly linked to your vision and purpose. Make sure people understand how the KPIs will be used and who is responsible for them. That will not only tell you where the organization stands, but will also make it easier to convince others to follow when they see tangible progress. 4. Understand your gaps Conduct a detailed analysis to understand your current culture, how the behaviours, mindsets and practices in your organization align (or not) with company and individual values. This will help you target specific aspects of your culture that may be preventing the desired digital culture from emerging. 5. Don’t bite off more than you can chew Cultural transformation is incremental, and it requires patience. Changing too much at once can cause confusion or even a drop in morale. Calibrate your ambition and make sure that you have adequate resources in place. Recognize your obstacles and manage them proactively. 6. Align support structures and systems Make sure that organizational practices support the desired cultural change. Structure performance metrics, incentives, technology and digital architecture to enable and encourage the desired behaviours and mindsets. Establish teams and processes to enable new ways of working. For large transformations, consider creating a transformation office to drive changes and track progress. 7. Reinforce desired behaviours Encourage engagement through behavioural experiments, which can be used to create a safe environment for people try new things. Reinforce good outcomes by positively calling them out and integrating them into common practices. 8. Track and scale Track progress using established KPIs. Share success stories and adjust where needed. Once momentum is gained in smaller pilots, think bigger and scale to other teams, units, and geographies. World Economic Forum | Digital Culture Guidebook 30 Future Room Back to Directory World Economic Forum | Digital Culture Guidebook 31 Shaping the future – start creating a digital culture today! Click on the screen to interact Back to Directory The big picture: Cultural transformation journeys Suggested actions World Economic Forum | Digital Culture Guidebook 32 Click the pins to see typical practices Reset Back to Future Room How you can implement cultural transformation – the big picture As you undertake a transformation journey, you should consider allocating dedicated resources and programmes. Stages of a transformation journey Experiment Digital transformation and the cultural changes that make it successful are a multi-stage process that require in-depth planning and oversight. C-level leaders are positioned to implement these changes at scale. The practices listed on this page are common parts of a transformation journey. Upskilling your people and realigning performance KPIs are especially critical for lasting behavioural change, because they create the ability and willingness to change. Assess current culture Define target future state See how a Transformation Office guides the culture-change journey *Note: Many of the practices listed here must be calibrated for each organization and require detailed analyses and actions that are beyond the scope of this guidebook World Economic Forum | Digital Culture Guidebook Scale Iterate & embed 33 Click the menu items to go to the desired action Back to Future Room Menu of suggested actions Personal actions You want to lead by example You want to ignite the spark for change Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Organizational Initiatives You want your people to help each other develop new digital behaviours and mindsets You want to encourage & ingrain specific behaviours Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, track and scale the suggested actions About the suggested actions The suggested actions presented here were selected to be widely accessible. Though they are a small piece of the transformation puzzle and cannot replace the organizational practices listed on the previous page, they are relevant for leaders at all levels to create culture change within their teams by targeting behaviours and mindsets. These actions can be started immediately, and can be implemented: • At any stage of your transformation journey, especially the experiment stage • In organizations of all sizes and industries • Virtually and in person • In parallel - they are complementary and will reinforce each other Personal Actions apply to culture change broadly, including digital culture. Use them to work on your leadership style and to motivate your team. Organizational Initiatives can be launched within teams to target specific pillars of digital culture. Use the results of your self-assessment to help you decide how to tailor them. • If you selected mostly “Statement A” choices for yourself, be sure to participate in these initiatives • If you selected mostly “Statement A” choices for your organization – check which pillars were the weakest and focus on those first Click to go back to the Self-Assessment World Economic Forum | Digital Culture Guidebook 34 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Acknowledge you are human Be open to showing vulnerability and be honest about your development areas, but do so in the right context. This demonstration of self-awareness will help others connect with you. As you ask others to change, show them that you are also willing to do so. Detailed steps: Know yourself and your values • Reflect on yourself as a leader –your communication style, how your approach has changed over time, your strengths and weaknesses. Recognize how you have evolved and what has worked well for you in which situations and why. • Different situations call for different approaches and levels of vulnerability – a trade-off between being approachable and authoritative¹. By reflecting on your own style and history, you can calibrate your actions to the needs of the situation while still maintaining your sense of self and authenticity. • Offer advice and share how you have overcome difficult situations. Push yourself to keep growing • Ask for and incorporate feedback. At senior levels, feedback tends to address leadership style, which can feel like an attack on who you are. But recognize that this feedback can help you calibrate, earn trust, and grow. • View yourself as a work in progress. You must continually evolve your leadership style to meet the changing needs of your organization. • Don’t assume you have all the answers, but instead ask for input from others, so you can view decisions from several perspectives. • Look for diverse role models – consider aspects of others’ leadership that you would like to emulate and put them together for your own personal style¹. • Set learning goals – experiment with different styles and try new things that make you uncomfortable but help you become more dynamic. 1. https://hbr.org/2015/01/the-authenticity-paradox Organizational Initiatives World Economic Forum | Digital Culture Guidebook 35 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Review your communication style Communication is a subtle part of company culture. Through choice of words, you can foster an open, collaborative culture, make your people feel included and address your customers effectively. Detailed steps: Build awareness of your personal communication pattern e.g. situations when you use more collaborative vs. more competitive language. Challenge yourself to change your style over time by focusing on one aspect at a time. Say Rather than Because Empowering: “I choose to...“ “I will...“ “I feel..., when you...“ Limiting: “I should...“ “I must...“ “You make me...“ Innovation cannot thrive in a limiting environment. Create a space in which you and your team are actively making choices instead of being victims of circumstance. Accountable: “I feel...“ “I believe...“ Non-accountable: “We feel...“ “We believe...““ Establish a culture of accountability that will lead to trust, openness and collaboration – which in turn is a prerequisite for innovation. Collaborative: “Yes, and...“ “...the team did a great job..“ Competitive: “Yes, but...“ “...[One person] really pulled this off...“ “But” discounts what was mentioned before. Using “and” instead creates a more positive tone and builds on what others have said – fostering collaboration. Check what type of stories you are telling, and if they are displaying the type of culture you would like to establish. E.g. are you telling stories about the lonesome hero, or about the winning collaborative team? Specific: “...often in situations like x...“ Generalized: “...always...“ “...never...“ Generalizations and stereotyping can hinder establishing trustful relationships. Trust is a prerequisite for a powerful digital culture. Weekend-Language: “I listen when my team has a concern.“ Non-Weekend-Language: “Empathy is unlocking value.“ Use conversational, simple, clear language to get your messages across instead of abstract terms. That way, you come across more authentically and can reach team members and customers more effectively. Organizational Initiatives World Economic Forum | Digital Culture Guidebook 36 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Communicate the vision and direction Share your vision and the direction for the organization widely and transparently. This will help people to understand the broader picture and to connect their day-to-day work with that vision and their own values. This will boost morale and motivation for undertaking change. Detailed steps: 1. Share the vision • Why are you pursing culture change? It is important to explain the impetus for the change and the expected benefits. • Tell stories of why this journey is personally meaningful to you. Paint the picture of what it feels like when you and your colleagues have reached your goals. • Chart a path for your journey – communicate the key stages and next steps. 2. Define success • Set audacious goals that excite people to get on board, embrace change and reimagine the possible. • How will you know when success has been achieved? • Use indicators and KPIs to track your progress and course-correct dynamically. 3. Make it personal • Encourage people to make the journey personal for themselves by tailoring the story and showing the value for each person. • What will the employee experience during and after the transition? How will their work and expectations change? • Include your workforce in the communication, e.g. by showcasing testimonials from people on how they understand the vision and what it means for them. • Tailor the story to resonate with and be relevant for different stakeholders (employees, investors, customers, etc. Organizational Initiatives World Economic Forum | Digital Culture Guidebook 37 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Create a sense of empowerment Many of the pillars of digital culture work best when people have the autonomy to make decisions and take actions that drive positive changes and outcomes for customers and shareholders. To promote this healthy functioning, foster an inclusive, safe environment where individuals are empowered to use their initiative, insight, skills and experience. Detailed steps: 1. Build a culture of trust Make sure that you not only say you trust your colleagues, but that your behaviour and management style demonstrate that trust. Make it safe to experiment and fail. Trust people to integrate information from many sources and make decisions that reflect the needs of the customer and the organization. Use mistakes as opportunities to learn 2. Delegate responsibilities and tasks Communicate that you trust people, and back this up with your actions. For example, delegate a meeting and then don’t attend. Encourage team members to take over new responsibilities and tasks 3. Support growth opportunities Enable learning and growth opportunities for your employees, even if it is not immediately beneficial for you or the project at hand. Communicate your confidence and, tell them that you believe in them 4. Deliver honest feedback Because people focus on negative more than positive feedback, try to highlight strengths and deliver 4-5 times more positive feedback than negative. Take time to prepare, speak in specifics, save time for inquiry and focus on the future Organizational Initiatives World Economic Forum | Digital Culture Guidebook 38 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Launch an a mbassador network Similar to the “influencer” model of social media, you can leverage specific people in your organization to drive culture change. Ambassadors help to spread the message and get others on board with the new behaviours and mindsets you want to promote. They are particularly useful for creating engagement around a discrete topic or programme: e.g. a new software systems rollout (e.g. SAP) or a new organization/department-wide initiative. Detailed steps: 1. Define purpose and scope • Which behaviour(s) do you want to promote? Click here to see examples for each pillar • How many ambassadors and from which departments? • How will they collaborate and interact within the network? • Consider adequate remuneration (monetary or non-monetary) and appreciation of the value of ambassadors’ extra work 2. Select ambassadors • Based on team lead´s input, invite specific employees to join. These should be people who others trust or who are natural leaders within their teams (suggestion is to select ~75% of participants this way) • Put out a call across the organization for additional interested employees to join the network, and make selections in order to balance the network based on region, gender diversity or other criteria 3. Launch On-board members and give them information and tools to promote the envisaged behaviourin their teams; e.g. lead planned workshops, host info sessions, or showcase how they are using new tools on social platforms 4. Maintain and collect feedback Organize regular network calls and events to give the ambassadors a platform to share their lessons learned and best practices, and to develop new material. Ambassadors bring the voice of the initiative to their teams, and they bring the voice of their teams back to the initiative organizers Organizational Initiatives World Economic Forum | Digital Culture Guidebook 39 Click the menu items to go to the desired action Back to detailed steps Reset Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Launch an ambassador network Similar to the “influencer” model of social media, you can leverage specific people in your organization to drive culture change. Ambassadors help to spread the message and get others on board with the new behaviours and mindsets you want to promote. They are particularly useful for creating engagement around a discrete topic or programme: e.g. a new software systems rollout (e.g. SAP) or a new organization/department-wide initiative. Example ambassador initiatives Click below to interact Collaborative Data-driven Customer-centric Innovative Stakeholder impact Organizational Initiatives World Economic Forum | Digital Culture Guidebook 40 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Reverse mentoring Reverse mentoring pairs senior leaders in an organization with less experienced workers to mentor each other on various topics of strategic and cultural relevance and ways of working. It helps leaders adopt new skills and understand the perspectives of those at junior levels, who are often closest to customers and stakeholders, and fosters collaboration across levels. Detailed steps: 1. Define scope and set expectations • Determine the audience, duration of the programme, format and frequency of meetings • Assign responsibilities for managing the programme • Set guidelines: e.g. no reporting relationship between mentor and mentee • Set expectations: What is the goal of this relationship? What are our expectations? What topics will (not) be covered? Click here to see examples for each pillar 2. Match mentors and mentees • Pair mentors and mentees to maximize diversity, learning, cross-department collaboration, or other criteria • Communicate that for the programme to be successful, both parties must be open and willing to learn about the other’s perspective 3. Conduct meaningful sessions • Mentor and Mentee: Conduct regular mentor sessions (30-60min) with a clear goal for every session and following the predefined scope • Set the expectation that mentor and mentee take the time to get to know each other and build a foundation of trust and respect in intial meetings to enable deeper, more honest conversations in which both mentee and mentor can challenge their own assumptions and push their boundaries 4. Reflect and Improve • Ask participants to reflect on the insights gained and try to incorporate them into daily work and to share their insights with others • Collect feedback on the initiative Organizational Initiatives World Economic Forum | Digital Culture Guidebook 41 Click the menu items to go to the desired action Back to detailed steps Reset Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Reverse mentoring Reverse mentoring pairs senior leaders in an organization with less experienced workers to mentor each other on various topics of strategic and cultural relevance and ways of working. It helps leaders adopt new skills and understand the perspectives of those at junior levels, who are often closest to customers and stakeholders, and fosters collaboration across levels. Example discussion topics Click below to interact Collaborative Data-driven Customer-centric Innovative Stakeholder impact Organizational Initiatives World Economic Forum | Digital Culture Guidebook 42 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Exchange circles An exchange circle is a small group of colleagues (8-12 members) that meets regularly to learn from one another, build their skills, and provide input. Peer feedback provides guidance and helps to make employees more open to changing their behaviours. Detailed steps: 1. Define scope • Define scope (audience, duration, size, composition - within or cross team, etc.), responsibilities and owner Click here to see examples for each pillar • Outline expectations and rules: What is the goal of the exchange circle? What are the expectations? What topics will (not) be covered? What is the desired duration of the programme, format and frequency of sessions? • Prepare the discussion content: One topic per session, which could be on a pillar of digital culture or more specific. Often, the specifics of the content is left up to the group participants, and they can determine organically what they would like to focus on within the broader guidelines of the programme • There is no hierarchy within the circle 2. Launch programme • Publicize the exchange circle programme, scope and intent and ask interested people to sign up. • Allocate participants to groups of 8-12 members based on their field of interest (they would like to exchange and learn) and with a focus to create diverse (gender/age/ functions etc.) groups • Each circle should have an “admin” or “host” who manages the scheduling and feedback for the group • Keep in touch with participants and collect feedback to share with other circles 3. Reflect and improve • Conduct frequent retrospectives to outline lessons learned and best practices on team as well as on an individual level Organizational Initiatives World Economic Forum | Digital Culture Guidebook 43 Click the menu items to go to the desired action Back to detailed steps Reset Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Exchange circles An exchange circle is a small group of colleagues (8-12 members) that meets regularly to learn from one another, build their skills, and provide input. Peer feedback provides guidance and helps to make employees more open to changing their behaviours. Example discussion questions Click below to interact Collaborative Data-driven Customer-centric Innovative Stakeholder impact Organizational Initiatives World Economic Forum | Digital Culture Guidebook 44 Click the menu items to go to the desired action Back to Future Room Personal Actions Organizational Initiatives Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Behavioural experimentation Behavioural experiments are individually designed challenges that target a specific behaviour or goal. They help to de-risk the idea of doing something differently and help individuals to feel they are part of the change rather than having it forced upon them. Sharing stories of success can create a sense of envy, which is a very powerful tool in driving change. Detailed steps: 1. Define scope and gather participants • Determine who should participate, duration (usually 2-3 weeks), designate responsibilities and ownership • Decide the goal of the behavioural experiment – e.g. to become more comfortable using a particular software, to be more collaborative, etc. • Invite your team to participate in order to achieve the goal Click here to see examples for each pillar 2. Design experiments Each participant should design their own experiment in line with the goal of the group, and commit to following it for the duration. Criteria they should use: • Mindset: Think of behavioural experiments as a small test, targeted at one behaviour at a time, that helps you to learn • Relevance: Does the experiment really foster the envisaged digital behaviour? • New for you: It’s not something you’d normally do. It should excite you and push you out of your comfort zone a little • Quick to get started: You can make it happen in two weeks without sign-off or investment 3. Launch it Participants run the experiments 4. Reflect and share As a group, participants share their experiences and lessons learned • What surprised you? • What would be beneficial to be included in this experiment? What could be removed? • What lasting changes will you make as a result of the experiment? World Economic Forum | Digital Culture Guidebook 45 Click the menu items to go to the desired action Back to detailed steps Reset Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale Behavioural experimentation Behavioural experiments are individually designed challenges that target a specific behaviour or goal. They help to de-risk the idea of doing something differently and help individuals to feel they are part of the change rather than having it forced upon them. Sharing stories of success can create a sense of envy, which is a very powerful tool in driving change. Example experiments Click below to interact Collaborative Data-driven Customer-centric Innovative Stakeholder impact Organizational Initiatives World Economic Forum | Digital Culture Guidebook 46 Click the menu items to go to the desired action Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale 30-Day Challenge A 30-Day Challenge can help kick-start change and embed new habits. Based on the principles of neuroscience and behavioural psychology, a series of daily micro challenges for 30 days can nudge new desirable behaviours, which become habits over time. Ultimately, these new habits can shape our mindsets. Detailed steps: 1. Design the programme • Decide on the specific behaviour(s) you are seeking to establish or strengthen – target these in your design • Work with stakeholder groups to co-create 30 challenges – one for each day • Individual and group challenges • Mix up the type of challenge – trying a new behaviour, reading an article, participating in a micro-challenge • Develop a platform where the users can share their insights and discuss their lessons learned • Determine the format for the challenges and communication (app/web or email based) Click here to see examples for each pillar 2. Build awareness • Create a communication plan including pre-launch communication, a promotion campaign, and update feeds to increase awareness • Appoint “champions” to spread awareness of the challenge and encourage involvement during the 30 days • Set up daily emails/notifications to be sent out to colleagues early so that they can look at the challenge first thing every day 3. Launch • Send the daily challenges and advertise the challenge on social platforms such as Teams and Slack to create buzz • Encourage participants to share their lessons learned on the platform 4. Reflect and share lessons learned • Collect feedback from participants and collate lessons learned – have the challenges led to lasting behaviour change? • Reflect on any broader lessons that can be implemented or shared across your organization Organizational Initiatives World Economic Forum | Digital Culture Guidebook 47 Click the menu items to go to the desired action Back to detailed steps Reset Back to Future Room Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale 30-Day Challenge A 30-Day Challenge can help kick-start change and embed new habits. Based on the principles of neuroscience and behavioural psychology, a series of daily micro-challenges for 30 days can nudge new desirable behaviours, which become habits over time. Ultimately, these new habits can shape our mindsets. Example challenges Click below to interact Collaborative Data-driven Customer-centric Innovative Stakeholder impact Organizational Initiatives World Economic Forum | Digital Culture Guidebook 48 Organizational Initiatives Personal Actions Menu of suggested actions Acknowledge you are human Review your communication style Communicate the vision and direction Create a sense of empowerment Launch an ambassador network Initiate reverse mentoring Create an exchange circle Set up behavioural experiments Start a 30-Day Challenge Iterate, Track & Scale World Economic Forum | Digital Culture Guidebook Click the menu items to go to the desired action Back to Future Room Iterate Track Scale Goal Key Activities Use lessons learned to improve and solidify new behaviours • Continue to experiment and iterate based on the scaling plan • Reflect after each cycle • Celebrate and share success stories/showcase and communicate the progress (between different cycles) Determine the success of the actions • Define behavioural KPIs • Continuously measure against behavioural KPIs • Set framework for regularly investigating behavioural data, continuously optimizing culture Achieve behavioural change across the whole organization • Implement an iterative scaling process across the organization • Experiment, test and tweak with every process loop • Collect data to optimize the approach • Incorporate lessons learned and any course corrections needed 49 Contact Space Back to Directory World Economic Forum | Digital Culture Guidebook 50 Contact Space We invite you to share a case of your digital transformation experiences, lessons learned and best practices with us. Exemplary cases will be added to the case library in future editions. We also welcome feedback on this guidebook. What was most useful? Was anything missing or unclear? Let us know! World Economic Forum | Digital Culture Guidebook Back to Directory Click here to submit cases or feedback 51 Library Back to Directory e´ World Economic Forum | Digital Culture Guidebook 52 Library Click below to see further insights Back to Window Room Back to Directory Case Studies: Collaborative Case Studies: Innovative Case Studies: Customer-centric Case Studies: Data-driven Case Studies:Use of technology Case Studies: Leadership Additional Resources Thank you and Acknowledgments World Economic Forum | Digital Culture Guidebook 53 Back to Library Case studies: Collaborative Digital Driver Community Organization: LANXESS Situation • LANXESS defines success of its digital transformation process by its workforce’s activation and engagement. • At the early start of the transformation journey the official Digital Project Team established an informal Digital Driver Community. • The LANXESS internal Community has participants from all functions, levels, and regions of the company. Outcomes • The Digital Driver Community have been instrumental in signaling pain points where digital technology can help solve problems and spearhead ideas. • Community member-initiated projects and success stories spread much faster than via the usual internal communication channels. • While at the beginning of the transformation process, the corporate vision was key, later the storytelling, success, and failures of users applying digital technology became a gamechanger in acceptance and motivation for the entire company. School and Job-Based Learning Organization: Global Citizen Capital Stakeholder impact Situation • It is often the case where, after a few years of on-the-job learning after graduation, an employee will choose to return to school to upskill and stay relevant apropos to the future of work. • What if this choice no longer needs to be made? Global Citizen Capital put in place a dual-pronged programme which accomplishes two objectives. • First, interested employees are offered the opportunity to select an online Masters or MBA course, with financial support offered. • In return these employees will start an intrapreneurship venture which allows them to complete the daily tasks associated with their full-time positions while maximizing experience-based education through their chosen academic programme. Outcomes • The programme led to friendly competition amongst the employees to not only fulfil the requirements of their chosen course, but also to find innovative ways to integrate their work with their learning to more than a few surprisingly positive results. • Global Citizen Capital have witnessed minimal employee turnover and a few intrapreneurship ventures have even blossomed into new revenue-generating business divisions. World Economic Forum | Digital Culture Guidebook See deep dive on collaborative stakeholder impact 54 Back to Library Case studies: Data-driven AI-Enabled Sustainable Design Organization: Fluxus Stakeholder impact Situation • Recognizing that the essence of digital transformation is to empower their people with the ability to shape the built environment, Fluxus demonstrated that higher levels of automation can drive productivity and collaborative intelligence. • FluxHouse™ Generative, an AI-enabled digital toolkit for developers to design, assess and deploy housing projects is built around the company’s proprietary prefabricated building system. Outcomes • The algorithms help generate optimized solutions at speed, enabling architects and designers to work smarter, freeing the workforce from time-and-energy-consuming tasks. • The digital toolkit makes jobs more enjoyable, and enables designers to unleash another dimension of creativity to provide elegant solutions for a more sustainable building future. • In addition, the company is working with multinational corporations throughout the supply chain to reduce carbon footprint and build better products. • Its digital platform supports a collaborative process for partners across the globe to work together. Sustainable Procurement Hub Organization: Accenture Stakeholder impact Situation • Accenture has invested in a global Sustainable Procurement Hub to collaborate with its suppliers, partners and the broader ecosystem to cultivate a culture of responsible buying, taking into consideration tailored and targeted information requirements and interventions for small, medium and diverse enterprises. • The Hub is a two-sided data sharing and blockchain-enabled sustainability hub where suppliers create their own account, populate their ESG data and consent to share these certified credentials with multiple buyers. • Buyers use the certified credentials and underlying data to drive granular visibility to supplier inclusion and sustainability practices across the supply base and drive adherence to responsible buying and supplier development practices. Outcomes • This Hub will help to better assess, score and drive transparency on Accenture suppliers’ ESG performance, including in relation to modern slavery and human trafficking. • Using the Hub, buyers gain insights into their supply chain, helping them make more sustainable procurement decisions while also incentivizing suppliers to operate more sustainably. • The Hub will be rolled out globally, eventually reaching thousands of suppliers at scale. • Supplier performance will be tracked over time to encourage co-innovation and continuous improvement across buyers and suppliers. See deep dive on data-driven stakeholder impact See how digital culture helps you deliver stakeholder impact World Economic Forum | Digital Culture Guidebook 55 Back to Library Case studies: Customer-centric Adapting to the Pandemic: Personalised Digital Events Organization: Netguru Situation • Since 2017, Netguru has been running Disruption Forum, a series of events for innovators, hosted in innovation hubs all over the world, including New York, Paris, London or Berlin. • After the pandemic emerged, the team decided to achieve their goals by moving the series 100% online. Outcomes • Using software platforms like Hopin, StreamYard and LinkedIn Lives, Netguru developed an online community of innovators engaged in industry areas like retail, fintech, or enterprise innovation. • Thanks to running marketing activities and hosting the event online, the team was able to reach wider audiences, repurpose video content, and deliver a personalized event experience to every attendee. Sustainability Cloud and Sustainability S ervices Organization: Accenture and Salesforce Stakeholder impact Situation • In response to the growing demand from customers to proactively manage stakeholder impact, Accenture and Salesforce expanded their partnership to help companies embed sustainability into their business. • The combination of Accenture’s Sustainability Services, Salesforce Sustainability Cloud, and Salesforce Customer 360 brings sustainability to the front office and provides the C-suite with true visibility into their company’s historical and real-time ESG data. Outcomes • Salesforce Sustainability Cloud offers features to help companies measure and manage their environmental impact, including 360-degree view of environmental impact to manage carbon footprint and investor-grade climate data for transparent reporting. • The Salesforce Sustainability Cloud will be integrated across the suite of Salesforce Customer 360 products to leverage ESG insights to meet evolving customer needs. • Accenture Sustainability Services helps customers leverage Salesforce Sustainability Cloud and use ESG data holistically by integrating sustainability into their strategy, operating models, processes and technologies; developing ESG insights that can be scaled across organizations and their ecosystems; and transforming business models to realize value for business and society. See how digital culture helps you adapt to the changing business environment See deep dive on customer-centric stakeholder impact World Economic Forum | Digital Culture Guidebook 56 Back to Library Case studies: Innovative Makers Lab – Collaborative R&D Organization: Tech Mahindra Stakeholder impact Situation • Makers Lab, the premier R&D wing of Tech Mahindra was set up to solve problems for not just customers, but society at large. • Over the past 6 years, the lab has developed a rich innovation ecosystem that is both collaborative and Customer-centric. • They apply co-innovation with customers, academia and government, and have researched topics including core AI, Robotics, and quantum technologies. Outcomes • Makers Lab has worked with the Indian government‘s Principal Scientific Advisor to build cutting edge solutions for agriculture and to research coronavirus. • Makers lab is making technology more accessible by developing BHAML (Bharat Markup Language), an open source platform to write HTML code in 12 Indian languages, which they hope will enable a wide array of children in rural and urban India to write code. Circulars Accelerator Organizations: Accenture, Anglo American, Ecolab, Schneider Electric, World Economic Forum, UpLink Stakeholder impact Situation • The Circulars Accelerator is a cross-industry initiative that focuses exclusively on circular innovation by supporting early to growth stage entrepreneurs on their journey to scale. • In its premier year, the Accelerator has a cohort of 17 entrepreneurs who are deploying cutting-edge technologies such as AI, predictive analytics, machine learning, blockchain and others to enable solutions. Outcomes • These innovations will transform material product inputs, alter the relationships between supply and demand and production and consumption, and ultimately drive tangible ecosystem change. • Throughout the programme, Accenture and partners will leverage capabilities to provide the cohort with bespoke support - from business strategy and commercialization planning, marketing and story-telling support, deep technological development expertise, pilot opportunities and more. • The Circulars Accelerator aims to foster collaboration across the circular ecosystem, brokering connections between innovators and multinationals, facilitating the development of partnerships that will have a tangible impact on the circular economy agenda in this all important Decade to Deliver on the UN Sustainable Development Goals. World Economic Forum | Digital Culture Guidebook See deep dive on innovative stakeholder impact 57 Back to Library Case studies: Leadership Transformation Office as the Driver of Change Organization: Hewlett Packard Enterprise Situation • In June 2019, HPE’s CEO announced that HPE would deliver its entire portfolio as a service by 2022. • A Transformation Office, led by the Chief Operating Officer, was created to serve as the driving force behind the company’s pivot to an edge-to-cloud platform as-a-service company. • The remit of the Transformation Office is to design and implement the comprehensive roadmap to evolve HPE’s business models, accelerate the speed of change and ensure a common and consistent customer experience for as-a-Service offerings. • Concurrently, a new cultural blueprint was launched encouraging innovation, speed of execution, and a One HPE way of thinking. Outcomes • An important role of the Office is to solidify alignment across the entire executive committee to help break down silos and enable closer collaboration in budgeting, investment decisions, execution, and visioning for the future. • Recognizing that “resistance is really just an ask or a need” the Office supports mediation between business units to help prioritise the best interest of the company overall. • A ‘waves of transformation’ strategy was adopted, with 6-month sprints to focus execution and adopt a ‘fail fast, learn and improve’ agile mindset. • A persistent pulse of communications is delivered to reinforce awareness of the transformation. Every HPE team member is encouraged to ask: “Is what I am working on helping the company to pivot?” See the digital transformation journey Creating a Learning Culture Organization: LANXESS Situation • The Digital Transformation era initiated an entirely new view on the aspect of Learning for LANXESS. • While it has always been recognized as an important topic, Learning was frequently limited to a particular and isolated competence enhancement field. • Since digital technology has changed or is about to transform every function in a large corporation, it is now needed to create a new Learning culture. Outcomes • The CEO, the Board of Management, and the Leadership Team in particular recognizes the need to learn about the new technology to use it for the company’s successful future development. • It is essential to not only talk about it once but to address Lifelong Learning as one of the significant company culture aspects. • It is a leadership task to ensure that employees get enough time to learn and check that this is encouraged and provided everywhere, at all times. World Economic Forum | Digital Culture Guidebook 58 Back to Library Case studies: Effective use of technology Digital Customer Interactions Organization: Zurich Insurance Company Ltd Situation • In the face of the pandemic, the Group’s digital transformation that started several years ago proved to be an important asset for employees working from home. • The Group established the Global Business Platforms unit to develop innovative services and product offerings, the first of which is LiveWell, a global platform providing health and wellbeing services, which was launched during the year. Outcomes • Employees working from home were able to deliver fully digitalized services to customers. • This included providing video-based claims reporting, the use of electronic signatures, and remote risk assessments for businesses by the Group’s risk engineers. • The Group grew its customer base in 2020 and customer satisfaction, as measured by net promoter scores, increased across its major retail markets, reflecting the rapid and flexible payment of claims and delivery of financial relief measures. Data Ecosystem Organization: Netguru Situation • As a product design and software consultancy, Netguru has always had remote work embedded into their DNA. • In order to scale up fast and healthy, they needed to ensure that all key stakeholders, including team members, leaders, clients, or partners, had access to the right information and collaboration tools. • Netguru developed a data ecosystem that leveraged powerful integrations between most tools they use, from time tracking applications and communications platforms to project management tools and CRM to key software solutions used for certain clients, allowing their distributed teams to communicate and collaborate effectively. • The ecosystem is reviewed on a regular basis to make sure there are only as many tools & data points as needed to make smart business decisions. To maintain high efficiency, teams and champions implementing certain tools publish manuals and best practices on an internal blog, and very often organize internal webinars and AMA sessions to ensure quick and seamless onboarding of their colleagues. Outcomes • As a result, nearly every aspect of their operations can be run digitally, from recruiting and onboarding new talent, to hosting online events with speakers from top companies worldwide, to delivering innovative technologies in cooperation with their clients based anywhere in the world. See how digital culture helps you use technology effectively World Economic Forum | Digital Culture Guidebook 59 Additional Resources World Economic Forum | Digital Culture Guidebook Back to Library Building a digital culture (Heidrick & Struggles, 2019) Honing your digital edge (Accenture, 2020) Responsible leadership for a sustainable and equitable world (World Economic Forum, 2020) Digital Transformation: Powering the Great Reset (World Economic Forum, 2020) Building Digital-Ready Culture in Traditional Organizations (MIT Sloan, 2019) work.lead.space (Accenture, 2020) 60 Acknowledgements Back to Library We would like to thank members of Accenture, the World Economic Forum, and the World Economic Forum Digital Transformation Leaders Network for their contributions to this paper. We would also like to thank the members of the Digital Transformation CEO Champions Group for their role in inspiring this paper. Lead collaborators: Daniel Englberger Chief Operating Officer, Zurich Insurance Group Richard Gough Vice President, EaaS Transformation Lead, Hewlett Packard Enterprise Joerg Hellwig Chief Digital Officer, Lanxess Kenneth Kwok Founder & CEO, Global Citizen Capital Fanyu Lin CEO, Fluxus Sibylle Mutschler Head of Transformation, Clariant Val Rupp Human Resources Vice President, Transformation, Hewlett Packard Enterprise Wiktor Schmidt Executive Chairman, Netguru Nicolas Simone Global Executive Director – Digital Transformation & Innovation, Petrobas Scott Snyder Senior Advisor, Heidrick & Struggles Mark Spelman CEO, Spelman Cormack Sara Sutton Founder & CEO, Flexjobs Tan Yinglan Founding Managing Partner, Insignia Ventures Partners Digital Transformation CEO Champions: Badr Jafar CEO, Crescent Enterprises Stephen K. Klasko CEO, Jefferson HealthPresident, Thomas Jefferson University Manny Maceda CEO, Bain & Company Additional contributors: Antonio Neri President & CEO, Hewlett Packard Enterprise Gisbert Ruehl Former CEO, Klöckner & Co SE Robert Smith CEO, Vista Equity Partnersl Julie Sweet CEO, Accenture Martin Wallin Professor of Innovation Management and Head of Division, Entrepreneurship and Strategy, Chalmers University of Technology Prof. Dr. Martin Högl Head of Institute for Leadership and Organization, LMU München Thorsten Petry Professor of General Management, HSRM, Hochschule Rhein-Main For any enquiries, please contact: Nokuthula.Lukhele@weforum.org World Economic Forum | Digital Culture Guidebook 61 Thanks for reading The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.
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