1 00:00:03,880 --> 00:00:05,240 To identify the key factors 2 00:00:05,240 --> 00:00:06,280 that drive success 3 00:00:06,280 --> 00:00:08,160 of a digital transformation, 4 00:00:08,160 --> 00:00:10,080 BCG recently surveyed 5 00:00:10,080 --> 00:00:12,200 over 800 senior executives 6 00:00:12,200 --> 00:00:14,760 globally across all major industries 7 00:00:14,760 --> 00:00:15,600 and studied 8 00:00:15,600 --> 00:00:18,080 more than 70 digital transformations 9 00:00:18,080 --> 00:00:19,480 supported by BCG. 10 00:00:19,480 --> 00:00:20,600 The study showed 11 00:00:20,600 --> 00:00:23,800 that only 30% of digital transformation efforts 12 00:00:23,800 --> 00:00:24,960 achieved success. 13 00:00:25,000 --> 00:00:25,880 However, 14 00:00:25,880 --> 00:00:27,720 there are six key factors 15 00:00:27,720 --> 00:00:29,360 that, if addressed adequately, 16 00:00:29,360 --> 00:00:32,800 can flip the odds of success in a digital transformation 17 00:00:32,800 --> 00:00:35,480 from 30% to 80%. 18 00:00:35,720 --> 00:00:37,840 One of these six success factors 19 00:00:37,840 --> 00:00:39,800 is an agile governance mindset that 20 00:00:39,800 --> 00:00:41,720 drives broader adoption. 21 00:00:41,720 --> 00:00:42,560 BCG research 22 00:00:42,560 --> 00:00:45,040 reveals that companies that adopt an agile mindset, 23 00:00:45,040 --> 00:00:48,560 principles, and culture throughout the organization 24 00:00:48,560 --> 00:00:53,200 are over 40% more likely to succeed in their digital transformations 25 00:00:53,200 --> 00:00:55,280 than those that do not. 26 00:00:56,360 --> 00:00:58,560 One crucial element of an agile mindset 27 00:00:58,560 --> 00:01:01,720 is the ability to continue despite setbacks, 28 00:01:01,720 --> 00:01:05,000 to treat failures as opportunities to learn and pivot. 29 00:01:05,280 --> 00:01:06,720 This is so critical that,— 30 00:01:07,160 --> 00:01:08,000 as our research found,— 31 00:01:08,600 --> 00:01:09,360 leaders 32 00:01:09,360 --> 00:01:11,240 who displayed such perseverance 33 00:01:11,240 --> 00:01:15,120 were four times more likely to deliver their intended outcomes 34 00:01:15,480 --> 00:01:16,800 than those who did not. 35 00:01:16,960 --> 00:01:19,240 What does it take to go beyond the buzzword 36 00:01:19,240 --> 00:01:21,440 and adopt a truly agile mindset? 37 00:01:21,880 --> 00:01:23,960 Based on our empirical research, 38 00:01:23,960 --> 00:01:25,360 we have developed a set of 39 00:01:25,360 --> 00:01:27,160 Yes/No questions 40 00:01:27,160 --> 00:01:29,240 that define the components 41 00:01:29,240 --> 00:01:30,560 of an agile mindset 42 00:01:30,560 --> 00:01:32,160 for digital transformation. 43 00:01:34,720 --> 00:01:35,760 These questions 44 00:01:35,760 --> 00:01:39,760 can help you assess whether your organization can embrace this mindset. 45 00:01:40,040 --> 00:01:41,400 And BCG has a structured approach 46 00:01:41,400 --> 00:01:43,480 to help you answer 47 00:01:43,480 --> 00:01:46,040 "Yes" to these defining questions. 48 00:01:48,400 --> 00:01:50,280 There are a few other considerations 49 00:01:50,280 --> 00:01:52,800 to keep in mind regarding an agile mindset 50 00:01:52,800 --> 00:01:55,360 as you progress with your digital transformation: 51 00:01:55,760 --> 00:01:56,880 Start with why. 52 00:01:57,040 --> 00:01:58,680 Agile is a means to an end, 53 00:01:58,680 --> 00:02:00,040 not the goal in itself. 54 00:02:00,400 --> 00:02:02,920 Leaders must set forth a clear vision, 55 00:02:02,920 --> 00:02:05,000 demonstrate its urgency and value, 56 00:02:05,000 --> 00:02:08,720 and guard against backsliding into old ways of working. 57 00:02:09,360 --> 00:02:10,720 Adopt the principles, 58 00:02:10,720 --> 00:02:12,120 adapt the practices. 59 00:02:12,120 --> 00:02:13,720 Agile is a set of values, 60 00:02:13,720 --> 00:02:15,080 principles, and behaviors. 61 00:02:15,240 --> 00:02:17,960 Leaders must adopt and actively promote 62 00:02:17,960 --> 00:02:21,080 a company-wide cultural and behavioral shift, 63 00:02:21,080 --> 00:02:24,400 but adapt the practices to their specific needs. 64 00:02:25,280 --> 00:02:27,000 Change your leadership behaviors. 65 00:02:27,280 --> 00:02:30,000 Agile transformations require from executives 66 00:02:30,000 --> 00:02:31,800 something even more challenging 67 00:02:31,800 --> 00:02:33,680 than learning new behaviors. 68 00:02:33,800 --> 00:02:35,680 They must also unlearn 69 00:02:35,680 --> 00:02:38,520 behaviors that have historically led to success, 70 00:02:38,520 --> 00:02:41,040 but will not be effective going forward. 71 00:02:41,640 --> 00:02:42,920 Align to empower. 72 00:02:42,920 --> 00:02:45,120 The ability to act autonomously 73 00:02:45,120 --> 00:02:47,120 spurs ownership and creativity, 74 00:02:47,240 --> 00:02:49,640 allowing agile teams to move fast. 75 00:02:49,640 --> 00:02:52,320 The more alignment that leaders can establish, 76 00:02:52,320 --> 00:02:54,640 the more autonomy they can afford to give. 77 00:02:55,240 --> 00:02:56,280 Learn and adapt— 78 00:02:56,600 --> 00:02:57,280 at speed. 79 00:02:57,280 --> 00:03:00,040 Agile puts a premium on feedback and learning. 80 00:03:00,040 --> 00:03:01,360 Willingness to adapt 81 00:03:01,360 --> 00:03:03,600 is more important than following a plan. 82 00:03:04,800 --> 00:03:06,920 As one of the executives that I have worked with 83 00:03:06,920 --> 00:03:07,560 puts it: