Nine aspects of Culture that enterprises need to build to succeed in the Digital Age

1. Decision making balancing data and intuition. The Digital Age is characterized by an abundance of data. Executives need to get comfortable with using the exploding volume and variety of data and make decisions using it. Data-driven decision making is a culture that is necessary to build specially to cut out obvious mistakes. At the same time, in the Digital Age when data and decision-making tools are available to everybody, how do you differentiate and make superior decisions? I believe along with data; intuition has a very important role to play. This might sound contradictory, but it is one of the many paradoxes that executives need to master in the Digital Age.
2. Speed of Action under Ambiguity. Speed of action is one of the critical requirements to succeed in the VUCA world especially as most markets are changing very fast and business and product cycles are becoming shorter. However, large organizations often have a problem in operating with speed. It is of course the complexity and additional processes that come with size. But, even more than that, sometimes a risk-averse culture can develop, which slows speed of decision making and of actions. Accelerating speed of action is as much about simplifying processes and structure as it is about a culture change. Now the nuance is that in a VUCA world you have to operate at speed but under ambiguity; the picture is often hazy, so navigation becomes even more difficult. Decision making in such situations is an acquired skill, and enterprises need to create a safe space for executives to hone their skills.
3. Audacity and Intelligent Risk-Taking. One of the most inspiring aspects I took away from Flipkart was a culture of Audacity, of daring to dream big and to execute at scale that had rarely been seen in a large and complex market like India. In the Digital Age, when new opportunities are getting created at a rapid pace, entry barriers are low and incumbent positions count for less, Audacity is a critical success factor. Some leaders might be intrinsically more audacious, but for most this is an acquired skill. However, like the previous point about speed of action, audacity is not a free pass. Risk-taking is essential but it has to be ‘intelligent risk-taking’ and not just playing the casino. This is another example of duality or paradoxes that leaders and enterprises need to master in the Digital Age.
4. Innovation and Creativity. Need to go out of the box is absolutely essential to compete in the Digital Age, which is characterized by hyper-competition at one end and abundant new opportunities at another end. Innovation and Creativity has to be not just about a stroke of genius but part of the organization culture. Innovation is relevant for every part of the business and has to happen across levels. Culture of Innovation and Creativity has to be built systematically. It requires not just specific investments in new capabilities but often re-designing of processes and infrastructure. As an example, as innovation became a greater priority at Fidelity, we went through a major facelift of our offices – more open design, more collaboration spaces, and even a change in the color schemes!
5. Technology DNA. Technology is at the heart of the Digital Age and building a Technology DNA is one of the most critical competencies an enterprise needs to build. However, this is also the competency that is most difficult for traditional enterprises to build. In many businesses, technology has been a support function focused on infrastructure provisioning and maintenance. The journey from there to building a cutting-edge technology capability is a long one. You have to bring in the right leaders. For example, in a couple of our own clients at Incedo, I have seen that CIO/CTO function (which did not exist earlier) has been established over the past 3-4 years and senior leaders brought in. You have to supplement the leadership by bringing the right talent. Technology is an area where the difference in output between the top quartile and median talent is very significant. This naturally leads to a war for talent and implies that you have to be not just customer-centric but also employee- centric. This calls for a shift not just in philosophy but has to be translated in processes and procedures. This is not a quick fix; it is a very substantial change that has to be persevered over a period of time.
6. Continuous Learning and Humility. The Digital Age is characterized by a very high velocity of change – markets, products, channels, competition, of course technology, in fact every possible aspect of business. With so much change, continuous learning is absolutely critical both at the enterprise and individual levels. The biggest challenge to learning is hubris, that you know it all and/ or I know best. Successful enterprises and leaders are even more prone to hubris. This hubris can be the kiss of death! Antidote to hubris is to inculcate humility. I strongly believe humility is the necessary ingredient to ensure long-term success. Now the question is how to inculcate humility? I have seen that going ‘out of your box’ and getting a broad set of experiences and working with Masters in different areas gives you a ‘reality check’ and is a good way to inculcate humility.
7. Inspiring, less managing. The Digital Age is so complex and dynamic that no one individual, however brilliant, can manage it all. There is just too much happening, it is impossible for one person to keep track let alone drive execution on all the threads. This implies that not only can an individual or ‘hero’ centric culture not work but even the traditional command- and-control cultures will not work. You need teams at different levels, and they have to work in a relatively autonomous fashion so they can respond and adapt to changes quickly. However, there also needs to be some alignment and common direction across these autonomous teams. I call it the need for ‘Aligned Autonomy’. There are multiple aspects that go into enabling Aligned Autonomy, but the most important is a culture and leadership style that is more inspiring than managing. It is less about defining and tightly managing, and more about providing direction, alignment to a common purpose and then a safe space to experiment and make mistakes.
8. Humane, Centered in chaos. The Digital Age is characterized by the irresistible march of technology with Artificial Intelligence (AI) as its torch bearer. When our world is dominated by machines and remote working is becoming the norm (accelerated further because of Covid 19 pandemic), the human touch is becoming even more important. Deep human connections not only enable employee loyalty and retention, but they also strengthen a sense of common purpose. One of the key reasons for the amazing success of the McKinsey Knowledge Centre were the incredibly deep human connections and team spirit that got developed. At Fidelity India, our seminal moment of the year used to be Family Day, a gala celebration where we would get families (including children) of all our employees together. Genuine engagement in community service is another powerful way I have seen that builds great human connections and loyalty for the company. Above are but a few illustrations, I am convinced that in the world dominated by machines human connections become even more important. This is another paradox that enterprises and leaders need to master in the Digital Age.
9. Resilience and Adaptability. Volatility and Uncertainty is a given in the Digital Age. Therefore it is almost certain that you will face many headwinds and setbacks in your journey, both at the enterprise and individual levels. It is critical that you develop the resilience to bounce back and the adaptability to make the necessary adjustments. A key enabler for this is to have a long-term view, which allows you to face the ups and downs with equanimity. Another important enabler is to have support networks, both at the organizational and individual level.

Nitin’s insights:

I was very fortunate that I spent the first twenty years of my career in great firms like McKinsey and Fidelity, which showed me how Culture was the bedrock of their enduring success and how it brought consistency and common purpose across sprawling global firms. Last five years, I have had the opportunity to be at the cutting edge of the Digital Age. My time at Flipkart, which is a true Digital Native, and the last three years at Incedo where I have been having the opportunity to support some of the largest companies in the world on their Digital Transformation journeys has given me an intimate understanding of the culture needed to succeed in the Digital Age.

Marshall Goldsmith’s famous motto, ‘What got you here won’t get you there!’ rings very true for enterprises making a transition to the Digital Age. Succeeding in the Digital Age requires some distinct attributes, which enterprises need to build very consciously into their culture.

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