Perry Maddox explores the massive risk of technological change outpacing organizational adaption and explains how leaders can close the gap.
I think about risk a lot.
It comes with the territory. Leaders must scan the horizon for opportunities and threats alike.
Our landscape is increasingly challenging. Between an extraordinary pandemic, economic turmoil and dismal politicians, we have plenty of risks to navigate these days. It’s our job to spot those risks and steer our work clear of danger.
But what to do when the biggest danger to our work lies in our hands?
Literally.
Neanderthals with iPhones: The Risk of Accelerating Technological Change.
New technology is changing the world like never before.
For all the benefits of technological innovation, we’re not always well-suited to cope with the change that it brings. That’s partly because our brains stopped evolving 200,000 years ago.
Making matters worse, many of the institutions that form the backbone of society – universities, churches, banks, judiciaries – took shape in the medieval era. Major political and economic systems – from capitalism to socialism to democracy – came of age hundreds of years ago.
We live in a very different world today, shaped by rapid, exponential technological change.
“The real problem of humanity is the following: we have Palaeolithic emotions, medieval institutions, and god-like technology”
Edward O. Wilson
Our brains simply don’t stand a chance. Our dated institutions aren’t keeping pace, either.
It’s easy to spot the damage when you look for it. Democracy strains under the weight of misinformation. People are radicalized by an algorithm without knowing it. From imported beef to cheap holiday flights, consumption facilitated by technological change fuels climate breakdown. Meanwhile technological change worsens inequality, as “every spurt of progress has been associated with sharper inequality between countries.”
Closer to home, the organizations we lead also evolve far slower than technology, as described by Martec’s Law.
This all adds up to trouble, leaders.
On one hand, technological change worsens many of the big issues we work on. On the other, our organizations are falling further behind in our technological capability to fight those problems.
That’s a widening gap of risk.
How to Close the Gap.
Don’t let this risk sink the ship. Here’s how:
- Mindset Shift. First accept the challenge. Instead of clinging to established business models, free yourself to look for opportunity and to chart new strategy in a changing world. Assume that if you’re running your current model 5 years from now, you’ll be out of date or out of business. Denial has no home in leadership. Early adopters and first movers have the best chance to keep their organizations apace with technological change.
- Assess the Risk. How will technological change impact your work? Begin with your mission. Will change harm those you serve or worsen the problems you exist to solve? Climate breakdown is an obvious example, where already vulnerable groups stand to suffer most. Now scan for operational and commercial risk. Are you resourced to invest into technology? Are your culture and people agile or rigid? Will your competition adapt better? The more specifically you define the risk, the better you will build your strategy.
- Prepare to Lead Change. Fight the temptation to buy that new tech platform. Our challenge is the rapidly changing world, not the tech itself. Success comes down to building dynamic organizations that test, learn and adapt at pace. Begin by educating yourself on change leadership, how to build culture and values that thrive in change, and how to care for yourself in a changing world.
- Start with the End. When the time comes for an IT upgrade or digital transformation, learn from what tech companies do best: begin with the end user. A tech solution is only a solution if it works for those who use it. A graveyard of unused non-profit websites, IT systems and apps tells the costly, cautionary tale of jumping to a solution before understanding user needs.
Lead with Wisdom.
Edward O. Wilson went on to say of our Palaeolithic problem:
“We are drowning in information, while starving for wisdom. The world henceforth will be run by synthesizers, people able to put together the right information at the right time, think critically about it, and make important choices wisely. “
Let’s break that down.
Gather the right information, then analyze it and use the insight to inform decisions. This isn’t rocket science. It’s adaptive leadership.
Leaders who build teams that analyze and adapt to a changing world, and leaders who frame the risk and opportunity of technological change to these teams, are well on their way to success.
Even a Neanderthal would agree.
