How to Digitally Transform a Hybrid Organization: Learn From a DT Expert

Ever been to a symphony orchestra and been amazed by the grand scale of harmony that exists between the members? Did you also notice how the conductor sets the tone and guides the overall performance, but each instrument section refines its part, bringing its unique voice to the music? Truth be told, large digital transformation programs also behave the same way. They demand a delicate balance between centralized control and decentralized agility. While a central function lays the groundwork, empowered, cross-functional teams deliver the magic. And while the orchestra has the luxury of being seated on the same stage and looking to the conductor for guidance or each other for support, resources in a hybrid organization don’t!

Let’s explore in deeper detail how digital transformations work in hybrid organizations, shall we? 

Centralized Command: Setting the Digital Direction for DT in a Hybrid Organization

The central function acts as the organization’s digital backbone, defining the roadmap to success. Think of them like the conductor in our orchestra analogy. Their key responsibilities include:

• Strategic Planning: Just like Spotify wouldn’t launch a classical music platform without understanding the market, the central team defines a clear digital strategy aligned with long-term business goals 
• Budget Allocation: Imagine the conductor distributing sheet music (resources) to each instrument section (decentralized teams). Similarly, the central function distributes finances effectively across various digital initiatives, keeping the broader strategic objectives in mind 
• Governance and Standards: Every orchestra needs to play in the same key. In an organization, it’s the job of a central team to do so, It establishes frameworks for data security, technology adoption, and change management, ensuring everyone plays by the same rules.
• Progress Monitoring: Keeping an eye on the tempo and course correction/improvisation as needed. That’s what the central team tracks. Their magic baton? Key performance indicators (KPIs) to measure the effectiveness of the transformation effort.

Decentralized Virtuosos: Owning the Digital Stage for DT in a Hybrid Organization

The decentralized pods, much like the instrument sections in an orchestra, bring agility and ownership to the forefront. These standalone units, typically comprising Product Managers, Business Heads, Marketers, Technology Leaders, and  Customer Success & Operations personnel, are the masters that bring transformations to life.

Here’s how they excel:

• Laser Focus on Strategy Execution: Each pod takes ownership of a specific digital initiative or parts of it, translating the central vision into concrete products, services, and experiences. Think of the violin section meticulously practicing their part of the symphony, even as the percussion section drums up a frenzy. Pun intended 
• Think Fast, and Do Faster: Unlike a rigid classical performance, the digital world demands flexibility. Pods are allowed to test, iterate, and fine-tune their solutions quickly based on user feedback and market trends. Imagine the adventurous conductor allowing the violin section to experiment with a new bowing technique to achieve a desired sound.
• Owning the Outcomes: Each pod is made accountable for the success or failure of its digital initiative. This fosters a sense of ownership and drives results, just like each section in the orchestra strives to deliver a flawless performance

How to Execute Digital Transformation Projects in Hybrid Organizations

No easy task, this. Driving multiple teams that are often spread across different time zones takes a lot of effort to ensure the music doesn’t fall apart. 

Three critical factors, to be more precise. 

1. Effective Communication is the Glue That Holds Hybrid Structures

• Regular Sync-ups: Frequent meetings between the central hub and pod leaders foster alignment and address roadblocks. Imagine the conductor holding section rehearsals to ensure everyone is on the same page
• Transparent Communication: Clear and consistent messaging regarding goals, progress, and challenges keeps everyone informed, just like the conductor keeping the orchestra apprised of the overall tempo and dynamics
• Knowledge Sharing: Collaboration tools like Slack or internal wikis facilitate knowledge exchange, best practice sharing, and cross-pod learning. Imagine the violin section sharing their bowing technique with the cello section, leading to a richer overall sound

2. An A-Team is Built Through Continuous Skilling

• Developing Leaders: Equipping leaders with the ability to navigate the complexities of digital transformation. Imagine the conductor needing to understand not just conducting but also music theory and the nuances of each instrument
• Increasing Data Literacy: Empowering all teams to understand, analyze, and leverage data for informed decision-making. This is akin to each musician being able to read sheet music
• Training on Agile Methodologies: Equipping pod members with agile practices like Scrum to foster a culture of continuous improvement. Imagine the orchestra being able to adapt to slight changes in tempo mid-performance

3. The Strongest Teams are Often Loosely Managed and Strongly Led

• Empowering Teams: Granting pods (and even individuals) the autonomy and resources they need to experiment and take ownership often results in increased innovation and ownership 
• Sharing Success (and Failure): Establishing metrics that measure pod performance based on impact and not output. That’s perhaps the strongest motivator for a distributed team to gel together 

What Could Go Wrong With Digital Transformation in Hybrid Orgs

• Miscommunication: Silos between centralized and decentralized teams can result in misalignment and hinder progress
• Lack of empowerment: Under-resourced or micromanaged pods can stifle innovation and ownership within the teams
• Inflexible centralized control: An overly rigid central structure can impede the agility needed to respond to market shifts

By adopting a hybrid approach that leverages the strengths of centralization and decentralization, organizations can unlock the full potential of digital transformation. By focusing on communication, skilling, and fostering a collaborative ecosystem, businesses can navigate the digital landscape with agility as well as ownership and, ultimately, achieve success.

And once successfully staged, there’ll be no lack of demands for encores! 

NOTE: The views expressed in this article are those of the author and not of Emeritus.