It really will come as no surprise to regular readers of
this blog if I draw attention to the key finding from Capgemini and MIT’s
recent research into the impact of digital technologies on businesses across
the globe* – namely that the new digital capabilities are creating the
conditions to drive a third industrial revolution (a real digital
transformation). Despite this research
and the welter of anecdotal stories confirming the devastatingly
transformational power of emerging digital capabilities across UK industries a
recent survey by Russell Reynolds Associates (reported in the Telegraph**)
revealed that there are still a massive 308 of the FTSE 100 and FTSE 250
companies in Britain who currently have no “digital” board members at all. That
means a big percentage of our UK big businesses do not have at least one Board
member who claims to be “up to speed” on digital technology. Given the scope and pace of change this seems
like a significant handicap for UK PLC.
So
what I want to think about in the blog is this:
Is this finding
a) A
statistical non fact*** that can be deemed irrelevant as it doesn’t affect the current and/or future health and
well being of UK plc or
b) Are we
seeing a classic Canute-like, digital obfustication from the Boardrooms of a
country that struggles to establish high speed broadband links, deliver
comprehensive mobile coverage (even in London) and is steadily slipping behind many
other countries in the depth and breadth of the available commercial and public
applications of digital?
Now I know it sounds as if I might be slightly biased but let’s
pretend I’m not and analyse the issue a bit at a time. First let’s ponder a) whether or not this is indeed
a non-issue bought to life through the use of yet another non-fact. Let’s explore whether or not this is much ado
about nothing. So what if UK Boards do
not have board members who understand digital technology, as long as the Board
members understand finance and business process does it really matter? Well, what is very clear from the
Capgemini/MIT research is that Digital Leadership is a key component for those
businesses who wish to benefit from the 26% profit advantage available to the
Digirati**** and it would seem to be pretty difficult to provide the vision and strategy
necessary to become a Digirati without senior commitment in the Boardroom. Therefore, I think we can rapidly conclude
that not having capable digital leadership in the Boardroom is akin to shooting
yourself in the foot when running the global “digitally competitive” race. We desperately need digital leaders in the UK Boardroom's and we need them there now.
Having put to bed the “non-fact” argument (albeit rather
rapidly) let’s review b) the idea that this is just a classic case of the
Boardrooms of UK Plc being change resistant.
Now what is interesting and slightly worrying here is that, according to
Russell Reynolds, whilst the rate of digital non executive board appointments
is on the rise (hurrah), with around 4 per cent of 2012 newly appointed
directors in the FTSE 100 and FTSE 250 having digital backgrounds, the UK is
still lagging far behind the United States (oops), where 15 per cent of newly
appointed Fortune 100 directors in 2012 had digital backgrounds. If we also include the anecdotal “digital”
stories from the Nordics and the Asian world we can be persuaded to conclude that in the UK we are
moving more slowly than some of our closest competitors. In addition UK Boardrooms have “form” when it
comes to integrating new elements into their homogeneous ranks. As has been much discussed and debated, many
UK Boardrooms are still a long way away from having a representative number of
female members too. So it wouldn’t be
too much of a stretch to say that the lack of “digitally savvy” Board members
is merely another example of the maintenance of the status quo in the UK’s
white, male, finance orientated Boardrooms – ouch. Maybe we could call the condition digiphobia.
Ok, so looking at the above I think it’s fair to say UK Plc
has a bit of a problem. If we want to be
competitive in the global marketplace we have to get our act together, overcome
our digiphobia and enhance and broaden our digital leadership
capabilities at speed. In the UK we really need
to get our heads around the benefits of digital and we need our politicians,
business leaders and community leaders to start championing a positive digital
future for the UK. Not as easy as it
seems in a country that prides itself on its cynicism and conservatism (small
c). Ask yourself this question - when
was the last time you read a positive story about digital technology in the
press or saw one on the TV? Thought
so. Then ask yourself how many digital
scare stories you’ve heard or read recently (twitter trolls, wikileaks,
internet child abuse sites, etc). No
comparison is there? Do you see Digital
as something vital or slightly scary? And
yet when any sane, rational person sits down to consider the benefits that have
accrued to society as a result of the implementation of new digital
capabilities across all aspects of our lives the argument is overwhelmingly in
favour of digital.
So come on UK plc – let’s put aside our “Little Britain”
tendencies, ignore the doom laden messages of the Daily Mail for 10 minutes and
embrace, champion and invest in digital technology and infrastructure in the
full knowledge that if we don’t we will be ensuring our economy takes a further
step backwards. Let’s overcome our
digiphobia and whilst we are at it our homophobia and misogyny and bring into
the boardroom a new generation of digital leaders who can help us play on the
digital world stage. Rant over.
*Capgemini/MIT’s initial Digital Transformation research –
** Telegraph
article on Digital Leadership –
***A non-fact is a fact that sounds
interesting but in reality is deeply ambiguous or pointless, e.g. 78% of men in
the UK do not regularly use a microwave oven.
An interesting fact on the surface but one that is ultimately worthless
and in this case totally fabricated
****Capgemini/MIT’s research into the Digital Advantage –
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