The digital revolution, further accelerated by the global pandemic that has affected us, is forcing business leaders to think differently about strategies, investments, and corporate culture. But above all, it is challenging them to rethink themselves and their own roles.
The conversations that managers in every sector are having are increasingly infused with technology, from new value propositions, to investments in start-ups, to discussions with “disruptive” competitors.
Digital issues are no longer the exclusive (and comfortable) domain of marketing or IT teams.
For leaders with a limited technological background, this can lead to a side effect that is often overlooked, namely a threat to their role identity and, consequently, an obstacle to the innovation process.
Digital revolution and paradigm shift
A recent study by Harvard Business Review set out to identify the main obstacles and challenges that arise when the identity of a business leader is undermined by the advancement of the technological universe.
The changes brought about by the digital revolution can be so profound that they do not allow for a mere evolution of past experience, but instead require a deep transformation in the very foundations of what it means to be a leader today: no longer the keeper of all the answers, but someone who is capable of asking the right questions and opening up to new possibilities.
The questions that the digital revolution brings with it.
A fundamental point for success in the digital revolution is being able to engage in uncomfortable conversations more regularly, by asking oneself questions such as:
- What opportunities and threats does digital pose for our organization?
- How should we evolve our strategy and our business model?
- Are we investing correctly?
- Is our team capable of understanding how to think differently?
- What do our customers really want and expect now?
Digital Revolution: What to Avoid?
For leaders without a strong digital background, acting as the spokesperson in these discussions can be disorienting and worrisome. It can result in a state of anxiety, not only due to the sheer scale of the change that appears imminent, but perhaps most importantly because of the uncertainty regarding their role in this future. If overwhelmed by these feelings, leaders may, often unconsciously, undermine the digital transformation of their companies by engaging in behaviors such as:
- Anchoring to one's (own) certainty: "I'll show everyone that they're wrong (and I'm right)!"
- Masking insecurity: "I'll find my way by bluffing in this area."
- Seeking comfort in arrogance: "My experience is unparalleled and automatically translates into the new environment."
- Denial: "This digital revolution is no different from what we have always faced. Our organization has always managed major changes, and I don't believe this one is all that different."
4 recommendations for tackling the digital revolution
The authors of the cited study have thus identified four recommendations for leaders to tackle the digital transition and break free from these unproductive dynamics:
- Facing the threat
- evolve your identity
- recognize and resolve based on interests
- adopt a new identity
1. Facing the Threat
The beliefs around our identity guide and orient – often unconsciously and automatically – our behavior.
For this very reason, facing threats to one’s identity is extremely difficult - even discussing "identity challenges" can be complex. However, being able to bring them to the surface and clearly recognize which identity beliefs are at risk in a given scenario is the first step toward renegotiating with oneself. This process enables the search for a perspective where such threats no longer hinder one’s effectiveness. A good starting point is to ask yourself:
- What story do I tell myself about who I am?
- Which part of my identity do I feel is at risk right now?
- What would it mean for me if a part of my identity story were no longer true?
2. Evolve your identity
One of the biggest challenges to changing identity beliefs is that they often take on a totalizing nature: I am either completely competent or completely incompetent; I either have all the answers or know nothing. This leaves little room for growth and evolution.
A more evolved identity, on the other hand, allows for the incorporation of a sense of growth, recognizing that we are immersed in a constellation of events, situations, and people around which our life and career unfold in a complex, varied, and often unpredictable manner.
The authors suggest using what are called **“AND stance”** positions: “I am an expert in finance AND a digital novice; I am a capable and confident leader AND I have less control than ever before; My instincts are phenomenal AND my team always has new insights to offer me.”
In short, leaders must think about the story of who they are, notice the identity aspects at risk in a given context, and try to identify those **“AND stance”** that allow them to regain their footing in the digital transition.
3. Recognize and Resolve Based on Interests
In a digital transformation, it is not only the leader's identity that is at risk. Often, there are other tangible costs, such as:
- Loss of resources, status, or power;
- Loss of energy and time as the leader works to understand the new domain;
- The cost of negotiating expectations, dismantling familiar structures, and realigning incentives to support progress.
Generally, when facing these risks, the natural response is to seek greater control and become fixated on one’s position, clinging rigidly to what is familiar and thus becoming highly resistant to change. It is essential to renegotiate with oneself the space for transformation.
Behind every position, there are interests, needs, goals, hopes, pressures, and concerns that drive us to maintain that particular stance. Understanding these underlying interests allows us to expand the number of ways in which they can be met, opening up the possibility of change without losing what is most important to each individual.
4. Adopt a new identity
Adopting a growth-oriented identity in the digital revolution is something everyone needs, whether digital natives or not. This implies accepting three assumptions:
- It is no longer about making big bets on what the future might look like. It is an immediate and urgent reality that requires a response.
- The lack of digital mastery is not an individual failure. It is the natural result of the speed of digital transformation.
- Everyone still has more to learn. The strategy itself must be focused on a continuous learning process.
The responsibility of leaders is no longer to have all the answers but to facilitate these three shifts by encouraging changes in perspective and successfully learning while leading a company:
- From “I know everything” to “Learning is a sign of strength, not weakness.”
How can I learn new strategies in the digital revolution? Who can I learn them from? - From “I must have all the answers” to “My years of experience allow me to ask the right questions”.
How can I apply my existing experience to this new world without anchoring myself to old beliefs and patterns? - From “Change and uncertainty make my job more complicated” to “Managing uncertainty and complexity is my job”.
How can I expand my personal conversations to create a culture that fosters insight and learning within my organization?
[1] Jolie Okata, Elaine Lin Hering, & Ryan McManus (2021), Learning While Leading: The Digital Leadership Challenge.
