Passages of business transformation
How to react to digitalization challenges?
We make decisions based on feelings, practices, and facts. The following blog will provide an overview of how the style of decision making is changing. We can sort the decision process in three basic categories: historically founded, information dominated and Zero to One approach.
Historically founded decisions
The great tradition of managing the change is based on learning. Leaders start their preparation for the later challenges in the school. The behavior of today's acting leader is grounded by common subjects related to human history, philosophy, and natural sciences. These subjects are not only determining the thinking of students but building the frame of behavior and how we react to challenges in any situations including businesses. What practically happens when a decision is made is that we try to find examples from our education history or later from our experience inventory. The decision will be made by a combination of answers what our well-known examples dictate. New approaches driven by trendy management schools and methods sound good to know but the real reaction is encoded somewhere deeper in the human mind. Take out-of-the-box thinking as an example. Many times when we think we are out of the box we only have one or two other options created for making decisions but those are basically coming from the same sources. It is only another way of justification that the management follows fresh trends.
Information dominated decisions
We are leaving a great time where information is limitless. This is a powerful and mostly cheap source that can support new and efficient decisions. The reason why this resource injects new energy into leading the business is clear. We access more information this way than from any meetings, conference calls or events organized for professionals. The surplus of this content opens a new way of decision making. Managers read customer filtered information from online sources and use business analytics applications that aggregate information about the company on a daily base. The collection, sorting, and delivery of extra data is robotized for many convenient forms of consumption. The receiver of information is still the same. An educated human who relies on his memorized patterns but the amount of information can break the common barriers of taking action. The more the new business leaders adhere to the digital environment the more they are stimulated by fresh facts. These up to date set of information can dominate the next step in the business and makes us less dependent on our traditions. Tradition will always play an important role but timely information becomes more valuable as the situations change so rapidly.
Zero to One approach
The leader of our new business economy is coming from the school, they are young, talented and have fun for creation. Make something new is becoming our everyday practice. So do the energetic and young leaders who are by role having an impact on their own business community. In that sense anybody is a leader but changing the definition of it might be the scope of another blog. Why shall we create new things and not be satisfied with our existing processes, micro-processes in the closer business environments? The common routine that we follow protects us even if we make failures as we can point to the precedence when our decision worked. Sometimes the failure is determined and well known in advance but we play the safe game though. We feel protected in our network because we have good reasoning behind us. That self-protection mechanism is less important for the young generation as they are at the beginning of their career and dear to try out new. They are digitally native and talented so they are allowed to drive the businesses. The flat and transparent culture of an increasing number of companies also supports this trend. The way the decision is made takes into consideration bold pursuit of radical renewal even in micro teams, in micro situations. This new leading principle spreads through working teams and organically shape new collaboration cultures. It is high time to happen because the business environment reshapes itself at high velocity.
Summary
How can different generations of leaders work together and build up a healthy synergy on a smaller and larger scale? The need for social safety is embedded in our nature and it motivates our business behavior. The code of digital transition for corporates is to enable creators and innovators to be impactful. Learn from them the good practices even if it seems to break the safe perimeters that we stick to for too long. Keeping up the step with changes seems to be the best and safest choice even if we need to learn how.
We make decisions based on feelings, practices, and facts. The following blog will provide an overview of how the style of decision making is changing. We can sort the decision process in three basic categories: historically founded, information dominated and Zero to One approach.
Historically founded decisions
The great tradition of managing the change is based on learning. Leaders start their preparation for the later challenges in the school. The behavior of today's acting leader is grounded by common subjects related to human history, philosophy, and natural sciences. These subjects are not only determining the thinking of students but building the frame of behavior and how we react to challenges in any situations including businesses. What practically happens when a decision is made is that we try to find examples from our education history or later from our experience inventory. The decision will be made by a combination of answers what our well-known examples dictate. New approaches driven by trendy management schools and methods sound good to know but the real reaction is encoded somewhere deeper in the human mind. Take out-of-the-box thinking as an example. Many times when we think we are out of the box we only have one or two other options created for making decisions but those are basically coming from the same sources. It is only another way of justification that the management follows fresh trends.
Information dominated decisions
We are leaving a great time where information is limitless. This is a powerful and mostly cheap source that can support new and efficient decisions. The reason why this resource injects new energy into leading the business is clear. We access more information this way than from any meetings, conference calls or events organized for professionals. The surplus of this content opens a new way of decision making. Managers read customer filtered information from online sources and use business analytics applications that aggregate information about the company on a daily base. The collection, sorting, and delivery of extra data is robotized for many convenient forms of consumption. The receiver of information is still the same. An educated human who relies on his memorized patterns but the amount of information can break the common barriers of taking action. The more the new business leaders adhere to the digital environment the more they are stimulated by fresh facts. These up to date set of information can dominate the next step in the business and makes us less dependent on our traditions. Tradition will always play an important role but timely information becomes more valuable as the situations change so rapidly.
Zero to One approach
The leader of our new business economy is coming from the school, they are young, talented and have fun for creation. Make something new is becoming our everyday practice. So do the energetic and young leaders who are by role having an impact on their own business community. In that sense anybody is a leader but changing the definition of it might be the scope of another blog. Why shall we create new things and not be satisfied with our existing processes, micro-processes in the closer business environments? The common routine that we follow protects us even if we make failures as we can point to the precedence when our decision worked. Sometimes the failure is determined and well known in advance but we play the safe game though. We feel protected in our network because we have good reasoning behind us. That self-protection mechanism is less important for the young generation as they are at the beginning of their career and dear to try out new. They are digitally native and talented so they are allowed to drive the businesses. The flat and transparent culture of an increasing number of companies also supports this trend. The way the decision is made takes into consideration bold pursuit of radical renewal even in micro teams, in micro situations. This new leading principle spreads through working teams and organically shape new collaboration cultures. It is high time to happen because the business environment reshapes itself at high velocity.
Summary
How can different generations of leaders work together and build up a healthy synergy on a smaller and larger scale? The need for social safety is embedded in our nature and it motivates our business behavior. The code of digital transition for corporates is to enable creators and innovators to be impactful. Learn from them the good practices even if it seems to break the safe perimeters that we stick to for too long. Keeping up the step with changes seems to be the best and safest choice even if we need to learn how.
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