The Change Dude’s Blog

Home to Bob Caruso Beware the Shiny Object

Digital Transformation: Real or Marketing Jargon?

Digital transformation—it sounds like the latest buzzword cooked up in a marketing lab, doesn’t it? But when you peel back the layers, you realize it’s far more substantive than flashy jargon. Let’s dig in.

A Little History

In my career I’ve been fortunate to grow and change at the pace of technology. In college I used a typewriter and carbon paper to author assignments and punch cards to program mainframes. So, I get the whole digital transformation thing deeply. But hasn’t it been going on since the mid-20th century? Understanding the contemporary version of digital transformation demands a look at history. The transition from analog to digital processes has been happening for decades. From the introduction of computers in the workplace to the rise of the internet, the shifts have been profound and continuous.

Take the Industrial Revolution, for instance. It was a period of tremendous change, with new machinery and technologies altering the way work was done. Similarly, the advent of computers in the mid-20th century marked the beginning of a new era. Businesses began to automate tasks that were previously manual, leading to increased efficiency and productivity.

Digital Transformation Evolution

The term “digital transformation” itself might feel new, but the concept is rooted in these historical shifts. Today, it refers to integrating digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. This transformation is driven by the rapid advancement of technology and ever-increasing customer expectations.

In the 1990s, the rise of the internet brought about the first wave of contemporary digital transformation. Companies began to create websites, explore e-commerce, and digitize some of their operations. Some of us have scars to show from these early experiments where the website was the only digital part. Orders or inquiries may have been posted to the website but behind the scenes it was “rip and read” where we would rip the paper from the printer and read the internet result then manually execute the rest of the process. The early 2000s saw the rise of social media and smartphones, further pushing businesses to adapt. The current wave of digital transformation goes beyond mere digitization—it’s about rethinking and reimagining how businesses function in a digitally-driven world.

Not Just Marketing Hype

So, is digital transformation just marketing language? The evidence suggests otherwise. True digital transformation involves significant changes to business processes, culture, and customer experiences. It’s not about slapping a digital interface on an old process; it’s about fundamentally rethinking how to use technology to drive growth and efficiency.

Real-World Impact

Consider companies like Netflix and Amazon. Netflix started as a DVD rental service but transformed itself into a streaming giant by embracing digital technologies. Amazon, once an online bookstore, now dominates e-commerce and cloud computing thanks to its relentless focus on innovation and technology.

In manufacturing, digital transformation is manifesting as the Industrial Internet of Things (IIoT), where machines communicate with each other to optimize production, and digital twins allow virtual simulations of supply chain automation. In healthcare, digital transformation means better patient engagement through electronic health records and telemedicine.

Final Thoughts

Digital transformation isn’t just a shiny new term invented by marketers. It’s a continuing evolution that requires businesses to integrate digital technologies at their core. It’s about embracing the future while learning from the past. While the term may be relatively new, the concept is deeply rooted in the historical progression of technological innovation. So next time you hear the phrase, know that it’s more than just a buzzword—it represents today’s challenges and the future of business.

Over the next few weeks, I’ll be sharing tips and tricks to aid in the identification and adoption of digital technologies that drive transformations efforts.

October 23, 2024 Posted by | Uncategorized | , , , , | Leave a comment

The Price is Right: Cracking the Code of Productivity

Leading a highly productive organization—that’s every executive’s dream, isn’t it? But here’s the catch: it’s like herding cats. I mean, have you ever tried to herd cats? Exactly.

In my line of work, productivity issues pop up like whack-a-mole. Weak leadership, lousy tools—you name it. Clients think tech can magically fix these bumps and potholes on the productivity road. Some even go all out on training programs, as if a few webinars will turn Bob from accounts into Steve Jobs. Spoiler alert: it won’t. Enter Price’s Law.

Understanding Price’s Law: The Square Root of Productivity

Price’s Law—the square root of productivity. Sounds fancy, right? Derek J. de Solla Price, who probably had too much time on his hands, came up with this in ’65. He basically said that if you have 100 employees, about 10 of them will do half the work. So, next time you’re in a meeting with 100 people, look around. Ten of them are actually doing something. The rest? Well, they’re probably forwarding memes.

This isn’t just office gossip. It’s everywhere! Academia, business, creative industries—yep, same story. It’s like we’re all part of one big, inefficient sitcom.

Then there’s the Pareto Principle—the 80/20 rule. It’s like Price’s Law’s less nerdy cousin. It says 80% of the effects come from 20% of the causes. Both say productivity is uneven, but Price’s Law is more like, “Hey, let me give you a precise math equation to show you just how much everyone else is slacking off.”

The Origins of Price’s Law

In the 60s, Price noticed that a few scientists were making most of the significant contributions. So, while everyone else was pretending to read their emails, these folks were doing all the actual work. Thus, Price’s Law was born and applied everywhere. Sales teams, coding departments, universities—you name it.

Organizational Structure Implications

Businesses can learn a thing or two from this. In a sales team of 100, about 10 people will close half the deals. The rest are probably just updating their LinkedIn profiles. Managers should identify their top performers and maybe, just maybe, reward them. Shocking idea, I know.

As companies grow, the number of genuinely productive people doesn’t keep pace. You end up with more dead weight, and things slow down. So, the key is to create an environment that keeps those top performers happy. Maybe don’t give them an open-plan office right next to the kitchen, yeah?

Real-world examples? Sure. In a research lab with 100 scientists, about 10 will come up with the groundbreaking stuff. The rest? Well, someone’s gotta make the coffee. In a tech company with 200 developers, about 14 will write the code that actually matters. The rest are probably arguing over tabs vs. spaces. In academia, out of 40 professors, around 6 will publish the papers that get all the citations. The rest are perfecting their PowerPoint animations.

Critics argue that Price’s Law simplifies complex human behavior. No kidding! But, even with its flaws, it’s a handy way to understand productivity.

Take Aways

Price’s Law offers a compelling perspective on productivity and performance within groups. By recognizing that a small number of individuals often drive a significant portion of the results, organizations can better allocate resources, identify top performers, and create environments that foster high performance. While it is not a one-size-fits-all solution, Price’s Law provides a valuable framework for understanding and refining productivity in various domains.

So, takeaway time: Price’s Law tells us that a small group often drives the bulk of the results. Spot these people, reward them, and don’t let the other ones drag the whole thing down. Easy, right? Well, it’s a start.

October 16, 2024 Posted by | Uncategorized | , , , | Leave a comment

Disaster Communications

Hurricane Helene hit my hometown of St. Petersburg, Florida as well as much of the Gulf Coast, with a record storm surge.  Power in my neighborhood was down for four days and is still being repaired.  Our utility provider was prepared and ready to jump on the issues with hundreds, if not thousands, of technicians to get on the remediation actions.  Well, done!

We had access to an outage portal to report against and watch progress, sort of.  We had numbers to call for updates, sort of. We got SMS updates on progress, sort of.  The key here is sort of.  All the pieces are in place to communicate to ratepayers effectively again I say well, done.

Despite the readiness of the utility to respond and communicate I felt the result was anemic.  The first status update on my neighborhood for power to return was 36 hours post event, cool.  Well, that estimate passed and nothing was updated until about 24 hour later that power would be restored in about 6 hours, how exciting.  Yet another estimate was inaccurate and the following day there were no updates.  So basically, after the last update which was about 60 hours past the first update there had been no additional updates. I called customer service; they had no additional information other than the portal’s stale estimate. Hmm…no update, no trucks in the area, no power, no hope.

Miraculously, 96 hours after the initial estimate had passed, we had trucks in the neighborhood.  The portal status update remained stale.  Were these big trucks just visiting? I don’t know.

Without power the neighborhood went old school, people walking around asking each other what they knew.  We all knew the exact same information, absolutely nothing current. Being the proactive dude I am I asked the crew lead about their assignment. He was clear, they were sent to evaluate the issues and remediate.  Any timing update? Nope! They could fix the problems but had no control over energizing the power. OK then.  Still no change in status on the portal or an SMS update. Hmm…

Finally, with no warning over100 hours past the stale update we had power.  Amen!! Thank you, Mr. Utility Man.

Recommendations for Utilities

Customer experience management is my primary competency, I’ve been working with businesses to improve their customer experience for near 30 years.  I could not have been more disappointed with my utilities and their ratepayer communication during this disaster.  It was a big fat ZERO on a ten-point scale.  There was not one piece of useful information available during the outage other than we were in an outage area, already knew that piece.

Tips for Utilities

  • Use the tools you have.  Have your teams update status for ratepayers at reliable intervals.  Even it there isn’t a change in status.  Hearing from you in anyway is a comfort.
  • Be honest. If the end point for remediation is unknown, say that.  Try not to provide estimates based on pure speculation.
  • Be present. Not having had a whiff of a utility truck in our area for four days after the event was disheartening. Our neighborhood felt forgotten. Send an ambassador or some sort to give comfort that you exist with a physical presence.

I can’t say enough about the competency of the utilities in solving the myriad of problems when a natural disaster occurs.  They do incredible work around the clock.  With a few little communication tweaks my personal ratepayer experience would have been so much better.

October 2, 2024 Posted by | Uncategorized | , , | Leave a comment