In an earlier post we spoke about the critical organizational and leadership capabilities needed to become a disruptive company. But how do you govern such a new model, can you build on same mechanism, operating principle for your 3rd industrial revolution business vs. your 4th industrial business? Simple answer NO! Read why…
Agility, working as a network, innovation, connectedness etc. All are CORE capabilities needed for the new world.
So how do you want to govern your new agile and extremely fast paced business, innovation or startup with old mechanism which are building on a 3 year business plan. These plans are already outdated the moment they leave your inbox or after they got presented to the board.
There is simply no way trying to measure your new business with old tools. It is like you would try to measure how much hay your car consumes as your previous vehicle was driven by a living organism called a horse.
It is like you would try to set the speed of your music player as your previous device was a 33/45 disc.
Leaders: If you are serious about innovating, transform your business for the 4th industrial revolution then you need to forget nearly everything about governance. You need to learn to measure impact, success in a different way. You can’t measure anymore the variance to budget compared to a 5 year business model. You need to look suddendly at net promoter score, referals, share of voice etc which become your new KPI to see if you are on track.
Forget a balanced scorecard with 1000+ metrics on it which will keep everyone extremely busy finding argument to explain data which are driven by old fashion ways. They will keep you away from what matters most. Connecting with your customer, with markets, trends and people.
Your network of capabilities, your team, your organization becomes your balanced scorecard giving you real time insights and not just data.
Don’t get me wrong. I’m not telling you to throw over everything out of the window. Don’t throw the baby with the water. BUT you can’t try to govern an innovation, digital based business with old tools. You need to create new mindset, new customer centric metrics and new frequencies.
Measure what matters in the new world, not what you are used to!