10 + 3 Capabilities for digital transformation
The framework 10 + 3 Capabilities, is an answer to the question; what do we need to master as an organization and what does it require of the leadership and the mindset to increase digital maturity and reach the highest levels of digital maturity? Many companies find it difficult to take the leap to Generation 3, and to 4 and 5. The leap to Generation 3 is probably difficult because it is here the way of thinking, the mindset, must seriously change, and the company must dare to think and act differently. The customer's and the citizen's needs must be at the center and in a way that the customer also finds relevant. And in Generations 4 and 5, they must seriously move away from the classic management virtues of the industrialization - careful planning, goal fulfillment, control, authority, value- and production chains, standardizations, etc. are no longer what it should be about. It requires change and transformation of known practice and the digital mindset.
Transformation does not mean that you as a leader must forget everything you have learned. The control, for example, that an account is correct and accurate, that laws are complied with, that IT systems are secure, etc., must of course still be in order. There are still several areas where planning and control make sense. But it does not go far in an unpredictable dancing, competitive landscape in which one must be able to move, even if one cannot look very far ahead. But if you have the right skills in the company and as a leader, you are well equipped to be able to dance with it.
The framework 10 + 3 capabilities are, as mentioned, an answer to what these capabilities are. The first ten capabilities must be widely available to the company or organization, while the last three are personal leadership capabilities. However, the leader cannot settle for the last three, but must accommodate them all. The capabilities are divided into the four areas: Strategy, Technology, Organization, and Leadership. In the following, the 10 + 3 capabilities are briefly presented. The capabilities are described more in depth in the book; "Digital Transformation - 10 capabilities your organization should master and 3 you need". You can read more about it here.
The main area, Strategy, is about the importance that digital and technological development has for the company's future existence, and its relationships with customers and partners. It covers the three skills Digital Visionary, End Customer Focus, and Ecosystem Mindset.
1: DIGITAL VISIONARY
Being Digital visionary means that the organization can assess the competitive dancing landscape, and rethink the organization so it is also relevant in 10 years and reconfigures accordingly.
It is the capability to have a longer strategic horizon, to be inspired by others' ways of using the digital opportunities and technologies, rethink the business model and reconfigure the organization so it is constantly relevant.
2: END CUSTOMER FOCUS
End-customer focus means that the organization is aware of what basic needs the end customer wants met, and then meet the demand in a way that lives up to the changing requirements and expectations.
It is the capability to focus on the end customer's basic needs, to be able to meet it in a way that always meets this customer's changing demands and expectations, and to build and maintain relevant relationships with customers (including the right data).
3: ECOSYSTEM MINDSET
Having ecosystem mindset means that the organization values and is able to enter into mutually rewarding partnerships, where value is created and shared, and sees this as essential to ensure strategic success.
It is the capability to enter close and mutually rewarding partnerships with others, both organizationally, technologically, and data-wise, to be aware of one's own attractiveness to others and to strategically select the right partnerships.
The main area, Technology, is about understanding what the company's digital technologies, IT systems and data management mean for the company's current and future opportunities. It covers three abilities Technological foresight, IT orchestration, and Data-driven.
4: TECHNOLOGICAL FORESIGHT
Technological foresight means that the company constantly and systematically monitors, evaluates, and applys the technological development and the digital signals for the benefit of the end customers, the business, and the organization. It is the capability to secure and place the responsibility for monitoring technological and digital signals, to be able to evaluate the technologies' potentials for the organization, and what it will require to use them, as well as to be able to make concrete decisions and act on that basis.
5: IT ORCHESTRA
IT orchestration means being both solid on the inside and flexible on the outside, and an awareness of how the IT architecture is and must be designed, about IT decision structures and the role of the IT department. It is the capability to be aware of the company's overall IT architecture and understand the opportunities and limitations it gives rises, to have and respect decision-making structures about IT, and to have clarity about what role the IT department should play.
6: DATA DRIVE
Being Data-drive means that the organization can manage, control, use, and present many types of data as an organizational and strategic resource - and establish the right data governance for this. It is the capability to see the opportunities, to create business and organizational value with data for the company, customers, and partners, to have the right competencies in the company and to prepare and ensure compliance with the company's data governance.
The main area of Organization is about having an eye for organizing the work, the relationship with, and the framework for the employees, so they constantly harmonize with the company's digital visions and ambitions. It covers the four abilities Ambidekstral, Agile, Competence-conscious, and Meaningful framework.
Ambidextrous means that the organization at the same time can exploit and improve the existing, and explore new and create change, and that the right structures and management practices have been established for both.
It is the capability to balance, two ways of working, the optimizing and the exploratory, to allocate resources to both, and to be able to handle the tensions and dilemmas that can potentially arise in the organization in relation to this.
Agile means that the organization can act smoothly and adaptat, the same time as decision-making competence is given to teams close to the customer, and that there is a widespread acceptance of being in beta.
It is the capability to allow and expect employees to respond quickly to change and inconvenience, to equip the organization to thrive in beta mode, and it is the capability to delegate responsibility and give and receive feedback and ensure ongoing learning in the organization.
9: COMPETENCE CONSCIOUS
Being Competency-aware means continuously recruiting and developing the competencies of managers and employees to suit the organization's current and future tasks, strategies, and business models.
It is the capability to assess what competencies are needed in relation to current and future tasks, to recruit and retain digital talent, and to invest sufficiently in the development of managers' and employees' competencies and digital mindset
10: MEANINGFUL FRAMEWORK
Meaningful framework means being aware of and attentive to the technological, physical, cultural, and structural frames that the organization offers employees and whether these are up-to-date and attractive.It is the capability to create and maintain a digitally attractive workplace, to adapt the framework conditions so they are up-to-date and establish manageable structures that promote the work with transformation, digital technologies, and data.
The main area of Leadership is about what managers, in addition to general management competencies, must master in an increasingly digital and technological environment with a corresponding diversity of realities, goals, and uncertainties. It covers the three skills of Multiplicity Management, Tech and Data Management, and Transformational Leadership.
11: MULTIPLICITY LEADERSHIP
Multiplicity leadership means being able to maneuver in many realities and with many bottom lines, where standard solutions do not work, and where everyone expects individual considerations and sustainable practice.
It is the capability to be able to take individual account of a diversity of both customers, partners, and technological interfaces and at the same time to be able to lead in relation to the many bottom lines, including sustainability, and it is the ability to take individual considerations into employment and job content.
12: TECH AND DATA LEADERSHIP
Tech and data leadership means respecting IT security policies and understanding what the potential is in the technologies, how they change the work which is done and the need for competencies, and leading implementation and realisation of benefits.
It is the capability to be able to assess opportunities and consequences associated with new technologies, to implement the technologies and ensure that the benefits are reaped, and IT security policies are complied.
13: TRANSFORMATION LEADERSHIP
Transformational leadership means being able to execute visions and making the purpose of digital transformation meaningful for the employees, and creating a burning desire among the employees to take part in a journey with many unknowns.
It is the capability to execute visions, create and convey a purpose that makes sense to the employees, and to be open about one's own learning needs.
Leadership is crucial in all generations. Because the technological possibilities affect the strategy and organization at each step, there is a need for a management that understands the interaction and can direct it competently.
A good starting point can be a mapping of how well your organization masters these capabilities to the top levels of maturity. It can give an overview of where you are in a strong position and where you are weaker. At the same time, it can provide an opportunity to discuss what is particularly important to you. You can read more about the self-evaluation test of the organization's capabilities here.