Lessons from Everest
Lessons from Everest
It was 11:30 AM on Friday, May 29, 1953, when two men achieved what was thought to be impossible until then. Their strength was at its limit; the challenge of enduring winds of up to 160 km/h and withstanding temperatures of -27 ºC at over 8,500 meters above sea level made them question whether their goal was achievable. They decided to focus and continue, repeating systematically, “one step at a time, one step more,” and that’s exactly what they did. Step by step, Edmund Hillary and Tenzing Norgay became the first humans to reach the summit of Everest, or Sagarmatha in Nepali—head of the sky. Thanks to this legacy, over 3,000 climbers in more than 30 expeditions attempt each year to reach the summit, hoping to fulfill one of the greatest dreams of any mountaineer.
What do you think Hillary and Norgay would have thought if they had been asked overnight to reach the highest peak in the world? What would you think if you were asked?
A likely response would be, “It’s an uncalculated risk,” and indeed, it is. Expecting such a radical change without a proper process would fall into the realm of irrationality. So why do organizations view digital transformation as an on/off decision? Why does this concept intimidate and confuse? Why is there a perception of having to do everything today or simply discard technological evolution?
A successful digital transformation must be understood as a true journey, and as the Chinese proverb states: “A journey of a thousand miles begins with a single step.
As the organization progresses along this path, it will become the challenge of senior management to channel efforts and translate the process into achievable and incremental goals, while maintaining a focus on creating value and generating the right amount of tension within the organization. This understanding was evident in companies like Falabella, which ventured into e-commerce at the end of 1999 with a modest investment of around US $2 million, and today projects investments exceeding US $1.2 billion to strengthen its omnichannel strategy. Similarly, Codelco implemented autonomous truck operations in its Gabriela Mistral division in 2008, achieving a 25% increase in system productivity over six years.
However, there are still companies in Chile and around the world that remain entrenched in the pre-digital era, diminishing their competitiveness in increasingly dynamic markets. In conservative industries, there is still a perception of risk associated with innovation, and the incorporation of technological solutions in back-office and sales processes is often questioned. According to Eurostat data, Utilities, Construction, and Real Estate industries maintain levels of digitalization well below the global average. This is further supported by a 2017 study published by HBR and Microsoft, which found that out of 750 companies surveyed, less than half had a well-developed and communicated digital strategy.
In our experience, it is essential to begin the transformation journey with concrete and well-defined projects that, once successful, inspire a desire to innovate and modify entrenched processes within the organization. Below, we describe some initial steps to start the path toward digital transformation for your company.
1. Ask yourself what are the key needs of your customers and your company that could be addressed through digital changes
Define what digital proposal would improve the perceived value for your customers. At the same time, remember that digital tools can also enhance company productivity through automation, machine learning, and other applications.
Montblanc Experience
We assisted a postal and courier services company in redefining their business proposal. Technology was integrated into their logistics chain to improve the value proposition to customers. Simultaneously, the company decided to start an automation process for transactional processes.
2. Review digital options available in the market
There are solutions closer than you think. Options will vary in complexity and initial investment, which may confuse the selection process. To avoid this, we suggest starting the transformation journey with simple tools, easy to implement, and with a limited budget.
Montblanc Experience
In an automotive company, we proposed incorporating QR codes in workshops to measure and manage service times. A simple tool is more actionable and allows progress without waiting for a perfect solution.
3. Select a prepared area and an empowered team to start the challenge
Don’t put the cart before the horse. Forming a high-performance team is key to achieving the proposed goals. Ensure you have the capabilities suited to the challenge. Leadership, proactivity, and resilience will be some of the required competencies.
Montblanc Experience
In our experience, the main driver of success in transformation processes is the team. Therefore, we always recommend conducting an executive assessment and an organizational maturity evaluation before starting this journey.
4. Invest time and resources. Stay present throughout the process
Avoid being absent during project milestones. Stay present and monitor resources, ask about progress, engage with your team’s concerns, and congratulate them as you observe achievements. Communicate to the organization that this is an important step in the change process.
Montblanc Experience
In a large mining company, we proposed the active participation of the Vice Presidency in key kick-off events, progress meetings, and the launch of improvement initiatives, achieving commitment and motivation from the team, especially during critical stages.
5. Measure results. Compare with the initial situation to highlight the value created and package the success story
Establish a measurement structure for progress. Compare the results with the initial situation to then convince the organization of the impact this initiative could have on other areas. This will stimulate the rest of the organization and build trust in the team.
Montblanc Experience
In a logistics company, we conducted a pilot test to optimize 4 branches of the network. We measured results, compared them with the initial situation, and prepared the success story to replicate in the 200 branches nationwide.
6. Communicate the achievement and start the next process
Communicate to the organization that this initial success is just the beginning. Use this motivational boost to incorporate new areas and tackle new challenges. The goal is to build a virtuous circle that self-perpetuates until achieving total transformation across all business units.
Just as Hillary and Norgay did, advancing step by step will avoid anxiety and uncertainty about your company’s digital future. The peak or change aspiration will be defined by the organization itself according to its needs and those of its customers. Small and simple initiatives will begin to expand, leading to a gradual and continuous change, motivating your team with achievable objectives that will translate into concrete results and thus a privileged strategic position.