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The carnage intensified last year. “There were 15 shop closures a day across the UK in the first half of 2016 and the number of new openings has fallen to the lowest level for five years” writes Graham Ruddick, senior business reporter at The Guardian. And the carnage is continuing this year. “Brick and mortar stores are suffering due to competition from online sales and the closures just keep coming” according to Daniel Kline in MotleyFool. What is happening? Where are the retail leaders?
The advent of eCommerce, mobile shopping, interactive social media and marketing automation caused a ‘digital disruption’ in the retail industry. However, many established retail brands failed to adapt to the fast changing behaviors and high demands of their consumers. The digital age has come for them and moved on. As a result, retail leaders that couldn’t cope with the disruption have capitulated. But what type of retail leaders does the sector need during these turbulent times?
Retail leaders in the digital age
Leadership is a process whereby an individual influences a group of individuals to achieve a common goal 1. But how can retailers lead and influence their staff during this digital disruption? Maybe it’s time to challenge retail leadership says Ken Silay, Partner, Innovator’s Equation. Ken suggests writing for Innovative Retail Technologies that “The truth is retail is run by old thinking and old metrics” and “difference between the old and new thinking in business creates a gap in retail leadership that will continue to get wider”.
Dr Ganesh Shermon, Managing Partner for “R for C Talent Management Solutions” (North America) recently highlighted the challenges retailers face. He said that retailers are confronted with dramatic managerial changes, given the convergence of the human mind, (Intellect), behavioral psychology (Cognitive), smart machines, and deep learning science and knowledge (Neural networks) as the basis for management actions. That’s really a mouth full!
Indeed, the truth is that the old way of leading a retail business does not work anymore. But what should retailers do to get their businesses on par with the digital age?
Strategies that leaders should consider in the Digital Age
Prof Kamal Kishor Jain, Head of HR and Business Psychology Department at IIM Indore, recently said digital age leaders need to acknowledge the limits of their expertise. Additionally, the leaders should build a reliable network of knowledgeable experts to help them navigate through their choices. Prof Jain suggests the following:
- Speed – is the most distinguishing characteristic of the digital age. No matter how fast you are moving to transform your business; the depressing reality is that you still probably aren’t moving fast enough.
- Knowledge creation – we need to become more right brained to compete and survive. Leadership is not a noun, it’s a verb. The real charismatic leader is one who disseminates knowledge into his subordinates.
- Primarily leadership qualities – leaders should be daring, caring and sharing. ‘Failing fast’ and ‘falling forward’ are critical precursors to success in the digital era. Such disruptive change requires leaders to be caring about people are affected by such changes. It is only by caring that a leader can elicit support from followers.
The Global Center for Digital Business Transformation, an initiative of IMD business school and Cisco, and HR consultancy metaBeratung, have identified four competencies (HAVE) that business leaders need in order to excel in the era of digital disruption:
- Humble – in an age of rapid change, knowing what you don’t know can be as valuable in a business context as knowing what you do. Therefore, digital leaders need a measure of humility, and a willingness to seek diverse inputs both from within and outside their organisations.
- Adaptable – in a complex and changing environment, an ability to adapt is critical. After all, the global reach of digital technologies has opened up new frontiers for organizations, shrinking once insurmountable continental divides and erasing traditional boundaries between territories. Dealing with the cultural and business impacts of this requires adaptability.
- Visionary – in times of profound disruption, clear-eyed and rational direction finding is needed. Therefore a clear vision, even in the absence of detailed plans, is a core competency for digital leaders.
- Engaged – painting visions for the future, successfully communicating these visions and being adaptable enough to change them, requires constant engagement with stakeholders. Hence, this broad-based desire to explore, discover, learn and discuss with others is as much a mind-set, as it is a definable set of business-focused activities or behaviors.
How can leaders change their retail business to digital?
It is impossible for retailers to change overnight from doing their things the old way to embracing the digital economy. Indeed, the process must get started and in quick time. Therefore, the ability to digitally re-imagine the business is determined in large part by a clear digital strategy supported by leaders who foster a culture able to change and invent the new 3. Kane et al proposed the following strategies for retailers to use getting their business to the digital age:
- Create a strategy that transforms – when developing a more advanced digital strategy; the best approach may be to turn the traditional strategy development process on its head.
- Get the right people for job – just as important as developing talent is reducing the risk of losing it.
- Take risks – to boost risk taking in their companies, executives need to change their mind-sets.
- Sparking new ideas – many new ideas arise through collaborative efforts among people of different backgrounds.
- Telling the story – storytelling is becoming a popular means of gaining employee buy-in and organizational traction for digital transformation.
After all, it will probably require an extraordinary retail leaders to facilitate the move of their businesses from analogue to digital.
Watch this video: “A successful leader must be a global leader, says Marshall Goldsmith.”
[signinlocker id=”2294″][/signinlocker]
Concluding
“If something isn’t working within your organization, challenge it. And if your leadership steps on your challenge, find someone to work for who isn’t afraid of a challenge. An organization that doesn’t try to define their future isn’t moving forward anyway” advises Ken Silay. Therefore, if you are one of the retail leaders raising your hand to lead your company into the digital age, make sure that you have the right qualities.
Lastly, a well researched and written Business Plan helps to get your business started the right way.
Read also:
- Crossing the digital threshold – adding Clicks to Bricks for sustainable retail outcomes
- How your Leadership Style Impacts the Success of your Business
Notes
1 Saint, S., Kowalski, C.P., Banaszak-Holl, J., Forman, J., Damschroder, L. and Krein, S.L. 2010. The importance of leadership in preventing healthcare-associated infection: results of a multisite qualitative study, Infection Control & Hospital Epidemiology, 31(09):901-907.
2 Shermon, G, 2017. Bringing disruptions into the workplace, Human Capital, p44. March, 2017.
3 Kane, G.C., Palmer, D., Phillips, A.N., Kiron, D. and Buckley, N., 2015. Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press, 14.
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I’m thinking about creating my own but I’m not sure where to begin. Do you have any points or suggestions?
Thank you
Hi,
Visit WordPress to start a blog and Problogger for tips on blogging.
Regards,
Douw
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