To expand opportunities as well as increase relevance and revenue, it’s important to be good at –
- Anticipating and Satisfying Rising User Expectations
- Look Ahead …. ie: determining where the $ are going to be
- Strategic Thinking
- Innovating for Impact – to create significant new value and monetize value creation to make good on opportunity
- Benefitting from the Impressive Capabilities of New Technologies (ie: AI, XR, etc.)
- Leveraging Data and Current Information Services
- Recognizing and Managing Risk
- Attracting and retaining top talent
Since these attributes are reshaping the business landscape, many leaders are challenged to make good decisions when assessing opportunities and managing change. Especially since the windows of opportunity are opening and closing more quickly and business world isn’t just changing – it’s undergoing multiple simultaneous revolutions that is impacting how organizations are transforming and creating new value. And as leaders identify and pursue new initiatives and navigate change to move forward, they’re making decisions that will either take the organization to new heights -or- fatally undermine their future.
To improve the probability of success going forward, avoid making the following mistakes to benefit from change (versus being a victim of it) –
Mistake 1 : Under Estimating the Role of Technology
For example, many leaders are treating AI as either a magic solution or just another IT project, missing its true transformative potential. They’re investing heavily in AI solutions without understanding the fundamental changes needed in business processes, decision-making frameworks, and organizational structure. Some are rushing to implement AI without clear use cases, while others are dangerously underestimating its disruptive impact on their industry. Forward-thinking leaders are taking a more nuanced approach, seeing AI as a transformative tool that requires careful integration with human expertise. They’re creating frameworks that combine AI’s analytical power with human judgment, ensuring AI augments rather than replaces human decision-making while carefully managing the expectations of their Boards, Stakeholders, Associates, Partners and Customers.
Mistake 2 : Not Being Good at “ Business Innovation “
To create significant new value and meaningfully improve outcomes from innovation requires a new mindset, the ability to deliver new value and evolve the business model, great insight on trends and future opportunities, portfolio thinking, being able to identify and leverage new technologies, having the competencies needed to be accomplished at addressing the points above, etc. To better manage change by Innovating for Impact by being good at Incremental (H1), Adjacent / Sustainable (H2), and especially Disruptive (H3) Innovation, see additional information at www.cail.com/BI and other sources.
Mistake 3 : Mishandling Workforce Transformation
Organizations are struggling to navigate the human side of technological change. With leaders implementing AI, XR automation, etc. technologies without adequately preparing their workforce, this is creating resistance and anxiety instead of enthusiasm and engagement. Further, with many companies not encouraging entrepreneurship, having a lack of technology knowledge in the C-Suite, clinging to the status quo and outdated organizational structures that stifle innovation, training programs failing to keep pace with technological change and new notions of value, etc. – the skills gap is widening ! To get past these challenges, future oriented organizations are taking a people-first approach to transformation, investing in comprehensive reskilling programs, creating opportunities and new career paths in an increasingly digital environment, demonstrating an open-minded culture by actively involving employees in the transformation process, etc. They understand that the key to successful automation isn’t just about technology – it’s about building a workforce that can thrive and benefit with it.
Mistake 4 : Neglecting Data Leadership
Despite years of discussion about data-driven decision-making, many leaders are still failing to treat data as a strategic asset. They’re allowing their organizations to operate with fragmented data strategies, unclear data ownership, and inadequate data governance. This short-sightedness is particularly dangerous as AI and other technologies becomes central to operations and decision-making. Leading organizations are elevating data strategy to the Board level, investing in data quality and accessibility as well as creating clear frameworks for data ethics and privacy. Leading organizations recognize data strategy isn’t just an IT concern – it’s fundamental to a good business strategy.
Mistake 5 : Trivializing Sustainability
Too many leaders are treating sustainability as a PR exercise rather than a fundamental business imperative. They’re making token gestures toward environmental responsibility while failing to prepare for incoming climate regulations, changing consumer preferences, and supply chain disruptions. Forward-thinking leaders are embedding sustainability into their core strategy, investing in genuine carbon reduction, and preparing for a radically different operating environment. They understand that sustainability isn’t just be about compliance or reputation – it is a key determinant of business viability.
Mistake 6 : Maintaining Rigid Structures
Don’t cling to traditional hierarchies and working models in a world that demands flexibility and rapid adaptation. Don’t resist – the evolution to hybrid work, adapting to changing and new business needs, rising User and different expectations, removing bureaucracy and inefficiencies, addressing evolving cultural / market needs, etc. Progressive organizations are creating more fluid structures that can adapt to rapid change, embracing distributed decision-making, and building cultures that attract and retain next-generation talent. They recognize that going forward, agility and the ability to deliver new capabilities will be very challenging without organization and cultural transformation.
Mistake 7 : Not Satisfying Rising Customer Expectations
Many leaders are making questionable assumptions about their Customer’s needs or how they will behave in the future. They’re over-automating customer interactions, ignoring growing privacy concerns, and misunderstanding the balance between personalization and intrusion. Some are pushing ahead with digital-only strategies while underestimating the continued importance of human touch points. Smart organizations are taking a more balanced approach, using AI, XR, etc. to enhance rather than replace human interactions, respecting privacy boundaries, and maintaining multiple channels for customer engagement. They place a high importance on providing a great customer experience and finding the right blend of digital efficiency and human connection.
Mistake 8 : Ignoring Geopolitical and Technological Risk
Many leaders are unprepared to deal with geopolitical and digital transformation complexities. They’re treating international tensions as temporary disruptions rather than permanent features of the business landscape. Some are maintaining vulnerable single-region dependencies for critical operations, while others lack contingency plans for technology driven paradigm shifts or sudden regulatory divergence between major markets. Forward-thinking organizations are developing sophisticated geopolitical risk frameworks, diversifying their strategic partnerships across regions, and building adaptable business models that can weather political instability. They understand that going forward, geopolitical awareness and being savvy with technology is essential for any business to be successful in an interconnected world.
Conclusions
Avoiding these mistakes is required to mitigate operational missteps and strategic failures – that unnecessarily increase risk and undermine success. The leaders who succeed will be those who recognize these challenges and view change as an opportunity for transformation to meaningfully improve outcomes – rather than a threat to be minimized. And realize there is a gap between organizations that get this right (by developing and expanding their Innovation competencies as well as being technology savvy) and those that don’t (by not changing or developing the new competencies and mindset needed to create meaningful new value).
Because of this, the question for every leader is – Will you drive change, or will change drive you ?
Dec 4, 2024 Bernard Maw / CAIL info@cail.com www.cail.com 905-940-9000