To stay competitive, today’s engineers need a completely different way of thinking about their work. Thankfully, the digital mindset can be learned.
Digital transformation isn’t like flipping a switch. It’s a slow and often messy process, but for those that pull it off, it can make your business more efficient, more productive and more profitable.
I’m here to help. As the author and instructor of the Watspeed Digital Transformation Certificate Program at the University of Waterloo, I’ve studied organizations big and small to learn what makes for a successful transformation—and how to avoid problems that lead to a digital dead end.
Every month, I’ll share a new lesson on how to steer your organization through the rough waters of digital transformation. Yes, there will be homework. But if you pay attention and put in the effort, it won’t be long before you start seeing real results.
Mindsets are how we see ourselves (our self perceptions) and the world (our beliefs). All of our behavior is based on our mindsets—how we act and respond to situations at work and in our broader lives. Mindsets can support digital transformation or impede it.
In recent years there has been growing interest in mindsets as part of the explanation for digital transformation failure. It is argued that mindsets which may have been a very positive factor in slowly changing organizations are a negative factor in the digital age. For example, a mindset that is very effective and disciplined at managing repetitive processes may not be comfortable with, or appropriate for, continuous improvement or radical change.
Tsedal Neeley and Paul Leonardi have worked to understand digital mindsets. Their 2022 book, The Digital Mindset: What It Really Takes to Thrive in the Age of Data, Algorithms and AI, describes the areas they think are important in digital mindsets. This article is intended to build on their work, expanding understanding of digital mindsets and providing a practical model for action.
Understanding your own digital mindset as an individual will help you add value that will benefit your career. Understanding it for your workforce will enable you to understand a major constraint of digital transformation and allow you to plan how to address it.
Assessing your digital mindset
At the University of Waterloo I have developed a model for the assessment of digital mindsets in organizations. The model is based on a review of publications discussing both digital mindsets and digital culture that would support successful digital transformation. The review identified characteristics that were frequently referred to, and these were consolidated into six categories for the assessment:
- Working with others
- Working with data
- Working with change
- Working better
- Working with society
- Working with technology
Individuals can use the assessment model to understand their own digital mindset, and organizations can aggregate individual responses to understand collective mindsets in units, functions and whole organizations.
The assessment can also be used to consider how the existing culture and practices in your organization are supporting the development and exploitation of digital mindsets, and enable the development of your own culture that supports and develops digital mindsets.
The digital mindset categories
Working with others
Successful digital transformation activity requires comfort in working with people and machines. Employees need to collaborate well with people online, working between and across organizational silos. They must work well with others outside the organization, establishing and operating within new digital eco-systems.
In organizations that were changing slowly, departments or units could focus mostly on their own work, with little need for interaction with others. More rapid change requires close collaboration to understand and manage its impact across the organization.
Working with data
Most organizations have had data available to decision makers for a long time, and this has been applied effectively by many. Today, information technology can greatly increase the volume of data available at all levels in the organization. The potential for improved, data-based decision making is great, but requires mindsets and processes.
In the past, when data was less available, experience and “judgement” were valued in decision making. Establishing the discipline that adherence to data-based decision making requires is a substantial mindset change.
Working with change
Change is often thought to be difficult in organizations and it often fails. Part of the reason for this is that the mindset needed for managing a slowly changing organization is very different from that needed for radical digital transformation. Manager appointments and employee recruitment have been based on the expected contribution to stability and reliability.
This is compounded by organization processes, practices and culture that support slow change. Silo structures, risk intolerance and long approval processes are not helpful here, for example.
Working better
Technology-based change requires engaged participation in improvement from all employees. New processes and work activities will need to be developed and refined when new technologies are introduced in the workplace. Innovation and continuous improvement activity will support this with appropriate creativity and motivation.
New technologies also require new skills. A learning mindset, with a willingness to learn and take responsibility for personal skills development is needed, along with organization management of skills development.
Working with society
The ethical implications of digital transformation are important for society—we should all act ethically in our use of technology. For organizations, ethical issues are also important commercially. Unethical behavior has negative financial consequences, either through lost sales or legal penalties. While ethical mindsets have always been desired, digital transformation creates frequent new ethical dilemmas that require earnest attention to the societal impact of technology and its application.
Working with technology
Competence and confidence with information technologies throughout the organization usually needs to be improved for digital transformation. This requires a good understanding of the technologies the organization is using now and a good level of appropriate technical skills. Discretion and caution as far as cybersecurity and data privacy are concerned is essential. Awareness of and curiosity about the technology the organization might use in the future will promote acceptance of technological change.
Organizations must actively enable these elements, providing training and education.
The digital mindsets radar chart
Consider your strength in each of the digital mindset categories and rate it out of 20. You can easily visualize and share your assessment with a digital mindsets radar chart like the one shown below. The chart allows you to plot your own individual digital mindset and your organization’s digital mindset.
If you need extra help scoring yourself, I’ve developed an assessment questionnaire that is available for organizations to use. For details and to access it, contact me or leave a comment below.
Digital transformation homework
Your digital mindsets homework has three important parts: First, assess your own digital mindset. Then, develop your own plan to address the areas where there is more room for improvement. Finally, implement your plan—it will better prepare you for your own career future, making you more valuable to your organization.
For additional credit, apply the framework to your organization, considering whether your culture and practices support or constrain digital mindsets amongst employees. Removing your organizational mindset barriers will strongly contribute to digital transformation success.
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Peter Carr is the author and instructor of the University of Waterloo Watspeed Digital Transformation Certificate Program, available globally online, and focused on overcoming the challenges of successful technological change. The program is jointly offered with the Ontario Society of Professional Engineers.
