7 reasons why all leaders should be interested in technology

I was talking to a team leader the other day and our conversation turned to the topic of digital transformation. What she said, shocked me at first.

„I do not really care about technology. It is something IT does. I am just a receiver.“

I was too surprised to say something and we continued talking about something else, but afterward, it got me thinking. Many leaders outside of the formal IT organization think like that. Not only that is destructive for the team. It is also one of the reasons why so many digital transformation initiatives fail. I strongly believe that we need more digital-savvy leaders.

Who do I think should be interested in the general trends of technology development? Everybody. Especially all leaders. Here is why:

1. Understand the strategy and its development

“Surprisingly large numbers underestimate the increasing momentum of digitization, the behavioral changes and technology driving it, and, perhaps most of all, the scale of the disruption bearing down on them. Many companies are still locked into strategy-development processes that churn along on annual cycles. Only 8 percent of companies we surveyed recently said their current business model would remain economically viable if their industry keeps digitizing at its current course and speed.“

McKinsey

Why digital strategies fail | McKinsey

Essentially, any strategy development today requires at least some understanding of the technology landscape and trends. Companies that fail to respond to digital challenges, risk becoming irrelevant.

I am sure that leaders find it relevant – if not crucial – to understand where their organization’s strategy is developing towards. If that is the case, at least moderate interest in technology is unavoidable.

2. Understand your industry and the potential moves of competitors

“Any business in any era must be able to rapidly adjust to the ebb and flow of currents in its industry – or, better still, to anticipate and stay ahead of them. This is doubly true in the digital age, since the pace of transformation is such that any service provider standing still risks being swept away by the changing tides of customer preferences.”

World Economic Forum, 2015

Just like their own strategy, most leaders in one way or another must understand their competitors. What do they do? Has a competing company just got digital twins? Implemented a cool chatbot to talk to their customers. You might think it is a stupid idea – but even if it is, how can you evaluate it if you do not understand it?

3. Understand your future customer

I do not know any leaders that would even dare to say “I do not care about our customers”. Customers are the reason your role even exists!

However, it is not just the current customers that matter. They will be exchanged with a newer generation eventually. Then what? Then it is too late. This future customer must be considered now, perhaps before it is even born.

4. Find better ways of working for your team

As humans, we love looking for efficiency gains, becoming more productive, and doing more for less. Moreover, the current trends are driving us to do it: the great resignation means we have fewer employees to satisfy the same (or higher) demands, and quiet quitting means nobody wants to work crazy hours as before. Do not even get me started on the 4-day work week.

Technology can absolutely be a friend here. Not every technology. Naturally, some of it will require MORE work (perhaps give other benefits though). But carefully selected tools can save many hours and remove many frustrations.

I personally get sad when I see teams that do a lot of manual, repetitive work or spend many hours correcting human errors (typically coming due to the boring, repetitive nature of work). This type of work can easily be outsourced to machines, leaving people working with something much more fun.

5. Contribute to the success of digital transformation projects

Digital transformation projects are everywhere. Their success depends on much more than IT or a good project manager. In fact, according to McKinsey, the number one factor is “having the right, digital-savvy leaders in place”. Note their wording, “digital-savvy”. Not technology professionals, not ex-developers, and surely not “those that focus on doing the things as we have always done”.

No, what is required is a general understanding of what technologies, their applications, and trends are there. No wonder, according to the same article, 70% of the companies undergoing digital transformations report that their leadership teams changed. Successful transformation projects simply require that the right people are on board. Those that contribute to the success, rather than go against it.

6. Help your team with the right personal growth opportunities

One of the responsibilities of a leader is to help their team to find the right personal growth tools and opportunities. Technology can really help with that.

First of all, there are many tools, apps, and approaches that enhance learning and make it easier to get into new subjects. It is no longer needed for a colleague to have that skill and train it by sitting next to you or to have classroom training nearby. Training is also not the only thing. There are apps that teach you new personal growth techniques (Pomodoro, anyone?), coach you, help you find a mentor etc.

On top of that, technology itself can become a new focus area, even for those with no previous technological education. All that is required, is to be digital-savvy and motivated to learn new things. The trends like citizen development are coming at full speed and I do not believe they are going to disappear any time soon. What is likely to disappear though, are the jobs with no digital touch to them.

7. Stronger career opportunities for you as a leader

Maersk CEO, Søren Skou, recently said in an interview, that the types of leaders he is looking for have changed. Maersk, the shipping giant, is now more of a technology company than just another shipping company. Therefore, it needs digital-savvy leaders that can make decisions related to the newest developments and digital opportunities.

I do not think Maersk is an exception. Most companies will start seeing digital as their core capability if they have not already done that. Leaving technology for IT limits your opportunities as a leader. Going hand-in-hand with the newest trends, even without being a specialist, opens a lot of doors. Which option would you like to choose?