Team Rules: Managing Change in the Digital Era

DIGITAL HR^[11] AND IMPROVING TEAM PRODUCTIVITY IN A DIGITAL ENVIRONMENT

Previously, the objectives of corporate digitalization primarily revolved around processes such as setting up communication systems and systematizing data. Today, essential elements of digitalization encompass the development of a digital culture and the creation of a digital employee profile, teaching the employee relevant digital skills that leverage technologies and improve the overall quality of their work.

From the employer's perspective, some of the most relevant competencies for employees include data processing and analysis, designing production systems, coding, and application development.

Not only does digital literacy shape the behavioral patterns required to drive change, but it also equips an organization to address the critical challenge of transformation with improved performance.

INTERNAL MARKETING: INCREASING EMPLOYEES’ LOYALTY AND BUILDING A TEAM OF LIKE-MINDED PEOPLE

Employees are regarded as the primary target audience for the organization along with clients and prospects. The goal is the same: to generate interest in the brand and increase involvement and a sense of ownership.

The principal methods are:

• identifying shared values, discourses, and beliefs that give rise to a team of like-minded individuals who are engaged, loyal, and move in the same direction;

• strengthening the competitive advantages and attractiveness of the brand as an employer;

• moving away from formalism and establishing new, convenient methods for organizing both physical and digital workspaces;

• gamification of the learning and development process, often referred to as edutainment which is a blend of education and entertainment;

• a coaching management style that emphasizes openness, mutual trust, mentoring, developing a growth-oriented atmosphere, and maintaining positive attitudes (for instance, focusing on finding solutions to problems rather than apportioning blame).

At Yota,^[12] the workspace is closely linked to Russian culture. The meeting rooms are named after great figures: Pushkin, Tsiolkovsky, Kandinsky, etc. The relaxation zone is an interactive space filled with art objects and youth culture items: bicycles, longboards, and skateboards. You can ride around the office, dine at a table, play on the console, or practice boxing with a mannequin in order to relax and unwind.

The office ambiance is an integral aspect of the organization's internal marketing. Now, when many people have switched to a hybrid work format, there is an opportunity not only to reduce office costs but also to transform the workspace for new purposes. This adaptation may include incorporating co-working spaces, comfortable meeting rooms, important communication features in communal areas, and digital technologies for the streamlined monitoring of KPIs and facilitating online interaction.

LIFELONG LEARNING (RE-SKILLING) AND META-COMPETENCIES

Today, the competency framework is relevant for the entire team as a whole, rather than being limited to just the leader.

What is required for success in an era of change? Firstly, the acquisition of new digital competencies: proficiency in smart gadgets, communication skills, a grasp of business intelligence (BI), and generating reports using digital channels and tools (cloud, CRM, etc.). Secondly, there are what we refer to as meta-competencies: sociability, proactivity, the power to persuade, and other skills related to self-organization, teamwork, etc. We are talking about skills that “go beyond the limits,” those that form the foundation for self-adaptation, behavior adjustment, and personal transformation. They enable individuals to take a systematic and comprehensive approach to learning by pushing the boundaries of their capabilities.

Increasingly often we see coaching as part of employee development plans aimed at altering personal attributes and challenging constraining beliefs. HR specialists leave this responsibility to professionals, providing colleagues with a broader perspective and a more comprehensive approach to personal growth. There is a rationale to this: by removing limiting attitudes, a person becomes more open and gains confidence, which subsequently has a positive impact on all aspects of their life. This is particularly advantageous for professionals who have transitioned to team management roles. Despite having high-quality professional expertise, they may encounter challenges in mastering fundamental managerial competencies like delegation, persuasion, time management, and providing constructive feedback, among others.

With the above processes underpinning the changes, the very approach to self-improvement and advanced training is undergoing a transformation. The concept of lifelong learning – continuous learning throughout one's life – is becoming increasingly popular.

TEAM HEALTH AND PREVENTING EMPLOYEE BURNOUT

Survey results show that in organizations that prioritize this aspect, labor productivity is 20 % higher. According to the WHO (World Health Organization) data, healthcare reduces the time spent on vacation and sick leave by 27 % and reduces the cost of health services by 26 %^[13].

These activities can vary significantly: from group yoga classes, bike rides, and wellness-oriented menus in corporate canteens to medical facilities and extended insurance coverage. Some organizations have even introduced cafeteria benefit plans that allow employees to select from a “menu” of options that align with their interests and motivations, such as medical insurance, fitness, food, or travel expense compensation. This represents a positive trend since tasks and priorities tend to evolve with age.

The resourcefulness of the team also depends on constructive communication and well-established processes that directly affect the long-term performance and outcomes of the organization.

Russian Railways, together with corporate members of the Russian Union of Industrialists and Entrepreneurs, offers an annual medical examination program for employees. Additionally, the company has also set up Health 360, a public organization that implements leading corporate practices from Russia and globally. These efforts are aimed at safeguarding the health of the workforce^[14].

Many organizations promote healthy and active lifestyles through discounts on fitness classes, participating in affiliate programs, and organizing marathons and bike rides. These measures not only contribute to a positive attitude, and nurture collaboration, but also strengthen teams by making the employer brand more appealing.

FOCUS ON COLLABORATIVE SUSTAINABLE DEVELOPMENT WITHIN THE ECOSYSTEM, SYNERGY, AND COLLABORATION OF BRANDS

The sustainable development of the entire ecosystem ultimately depends on the performance of each member of the organization. This is another demonstration of the company being viewed as a living organism. It signifies a shift towards long-term thinking, taking into consideration not only market trends but also environmental conditions, societal benefits, and universal human values.

Leroy Merlin's^[15] mission aligns with societal interests. According to its mission, in addition to improving housing conditions, the company also improves the quality of life, and promotes responsible consumption and environmentally friendly solutions for home renovation and improvements.

Investing in the future is more effective than reaping the immediate benefits of strategies that prioritize current profits. This approach guarantees the company's stable growth in future turbulent environments.

An increasing number of projects are emerging on the market based on the principles of cooperation and collaboration, such as delivery services like Yandex.Delivery or Delivery Club, which have brought together a huge number of restaurants and food chains on their platforms. These projects should also include marketplaces such as Ozon, Yandex.Market, SberMegaMarket, and others, where you can purchase a wide range of products, from budget items to luxury goods. Digital subscriptions and online entertainment services are also following this trend. They are no longer limited to movies and music, but now include offerings like internet, TV, and mobile communication packages. The market is evolving into an ecosystem with interconnected elements that ensure mutual growth and development.

The future is already here, and it is primarily about people. Technology serves as a tool, albeit a significant one. Therefore, it is important to align with the organization's discourses and strategy, understand the need to transform multiple aspects of business, and select the appropriate digital tools that deliver tangible improvements and align with the defined objectives.

This is not a digital race, but a deliberate decision with an emphasis on qualitative changes and team engagement: without the team’s participation, even the most brilliant ideas and strategies may remain unimplemented or merely exist in the form of impressive presentations.

For all the importance of digitalization, the thread of human communication, relationships within the organization and ecosystem, and the unification of people around values remain valuable (see Figure 5).

02. 10 STRATEGIES FOR A SUCCESSFUL MANAGER IN A DIGITAL ENVIRONMENT

Chapter 1. Involving the team in strategy development

RETHINKING EXPERIENCE AND APPROACHES

In times of turbulence, the strategic development process speeds up, with shorter planning periods. It is difficult to predict the availability of certain resources and possible limitations. Decisions must be made very quickly because while we search for the ideal way to implement an idea, it may already be outdated or achieved by competitors.

For example, we initially hoped to return to traditional office work after the pandemic. Now the hybrid work format and telecommuting are here to stay, and new challenges continue to arise that require a reevaluation of business forecasts and strategies for the coming years.

In the face of an unstable external environment and numerous diverse factors influencing the organization, flexible strategic development systems are proven to be effective.

FIVE PRINCIPLES OF STRATEGIC FLEXIBILITY

1. Speed is more important than striving for perfection. In an age of high dynamism, opportunities come and go quickly. Responding to, launching, and configuring new tools often entails sacrificing a rigorous approach. For example, during the pandemic, while most film studios were waiting for cinemas to reopen to continue their screenings, Huanxi switched to Bytedance services that included TikTok^[16]. This decision, despite being less than perfect, resulted in more than 600 million views and gained immense popularity.

2. Adaptability and rolling planning are more effective than traditional planning. Strategic planning is often seen as a sequence of tasks that are either designed in the present or planned for the future to reach a specific goal. The solutions integrated into the plans are designed and approved well in advance, spanning multiple years. However, during the frequent turning points that the 21st century presents, rigidly sticking to these predetermined scripts can act as an anchor, hindering progress. In contrast, being open to adapting and even abandoning a strategy when necessary can provide greater benefits, demonstrating flexibility and maneuverability.

“

ELENA GLUKHOVA, DEA expert, Doctor of Business Administration, business consultant:

– Imagine a yacht sailing with a set course. While it aims to reach a specific destination, the captain must continuously make adjustments to its trajectory based on factors like wind and unforeseen obstacles. The course and destination remain the primary focus, but deviations are essential to avoid potential accidents on the way to the goal.

Similarly, an organization can change its approaches to strategy development and planning, taking into account trends and internal developments. For example, it can maintain a flexible planning of three years, 12 months, or 12 weeks without rigidly adhering to the calendar year, making adjustments to timing as needed.

The practice of adhering to the traditional calendar grid (January 1 to December 31) is replaced with rolling planning, when a plan is formulated at the end of January for February 1 through January 31, and so forth, with actual figures versus planned figures and factor analysis and subject to all the adjustments in events, trends, and tendencies that might occur during this time. This approach offers the advantage of allowing organizations to maintain a trajectory while making more frequent and smaller adjustments, or larger ones in response to unexpected developments or force majeure situations.

It is important to establish this practice as a habit, which involves continuously monitoring the overall course and its deviations, and then translating them into weekly and monthly tasks.

”

3. A self-organizing team responds faster to extreme changes compared to a hierarchical system. In situations where multiple layers of management are involved in defining tasks and objectives, the time it takes for the individual executing the task to understand and act upon it can be prolonged. In a short management structure where teams are driven by personal interests and motivation rather than external rewards or punishments, the speed of reaction is significantly higher.

When a team is empowered and operates without rigid constraints and excessive formalism, it becomes more receptive to rapid changes. Then, even employees at lower levels can take on the role of change initiators. Within this flexible framework, innovation and transformation become a natural element of corporate life, spreading faster across departments and gaining more support. In this case, the leader does not always have to be the initiator of change, as innovative impulses can originate from the team itself.

4. A balanced motivation system that considers the interests of employees and key stakeholders is more effective than looking for someone to blame for mistakes. The organization develops as a healthy organism, in which all functions work together, and energy is not wasted on fruitless blame games after a failure. Mistakes serve as opportunities for growth and are discussed in the context of results-oriented changes and what could have been done differently to avoid similar issues in the future.

“

ELENA GLUKHOVA, DEA expert, Doctor of Business Administration, business consultant:

– We need a balanced system of motivation for specific tasks that ensures timely completion. Take, for example, a scenario where a department head is required to track and process timesheets, but constantly puts it off. Traditional incentives for task completion do not serve as effective motivators, there is a lack of personal engagement in tracking and completing documentation, and the individual is unable to self-regulate.

On the other hand, debriefing can work as a factor analysis: what tasks were planned and for what time frame, but were not completed for whatever reason. This transition shifts the focus from “Who is to blame?” to “What should we do?” It is essential to figure out how to prevent the recurrence of mistakes and ensure that tasks are accomplished correctly and within the designated time frame.

Furthermore, instead of shifting responsibility to subordinates, it is necessary to foster motivation that aims at achieving a collective outcome, when the head of a unit or team has a sense of duty not only towards higher authorities but also towards their subordinates. Such motivation should be driven by the aspiration for progress rather than the fear of punishment.

As for an employee who regularly lets the team down, undermines the team's efforts, and reduces the overall performance, despite posessing the requisite knowledge and competencies along with access to necessary resources, it becomes essential for both the leader and other team members to take a firm stance.

The key is to avoid letting the situation stagnate, as this won't resolve the problem but instead make it worse. With proper team management and motivation of not only individual employees but the entire team, it becomes significantly easier to achieve the desired deliverables within the designated time-frame. Every employee should understand that everyone has the right to make mistakes and can ask for help from colleagues and management. However, in a well-balanced team, driven and motivated to achieve the best results, concealing mistakes or problems with the hope that they will disappear is simply not tenable.

”

Positive motivation should be employed wherever possible. Criticism has its place but should be used sparingly, mainly in crisis situations. When a surgeon needs a scalpel, and a nurse gives him tweezers, there's no time for explanations; the surgeon simply demands the correct tool be given to him immediately. Criticism can be constructive and oriented towards future changes. In such situations, rather than venting frustration, one must focus on the goal and propose a plan of action. For instance, one could say, “I would appreciate it if, next time, you could…” or “How do you think this issue could be resolved …” This approach provides an understanding of how to act and what competencies it takes, encouraging the exchange of ideas and active participation in the planning process.

5. A system composed of interchangeable elements (modules) is better than a rigid structure. When key processes, resources, and tools are concentrated in a few locations, the loss of any of them, even for a short time, can cause significant damage, and a Meccano-type system is far more advantageous. A prime illustration of this is 1C, which offers a high degree of customization for various purposes. If one of the applications becomes obsolete, the company can seamlessly transition to others without incurring losses.

The same principle applies to corporate culture: if there are standout individuals in the team who handle numerous processes themselves, they are difficult to replace, so involvement and ensuring the continuity of expertise, a topic I will discuss in Chapter 4, are essential.