Leaders from around the world consistently express the view that technological savvy will be a key competency for the global leader of the future. One trend on this issue is clear: The younger the participant, the greater the emphasis on the importance of technological savvy. Most young future leaders cannot recall a time in their lives when there were no computers or host of digital gadgets. Many present leaders, on the other hand, still view technological savvy as something that is important for staff people but not for the line officers who run the "real" business.
Technological savvy doesn't mean that future leaders will need computer programming or Web design skills to lead their companies to success. It does mean that leaders should understand how technology, used appropriately, can benefit their organizations and that they should put in place systems to build and retain a network of technically competent people. The technologically savvy leader will increase productivity through the effective management and use of technology.[1]
Unfortunately, in many long-established organizations there is an inverse correlation between an executive's rank in the organizational hierarchy and his or her technological savvy. Developing technologically savvy executives may be one of the great challenges faced by the organization of the future.
In order to develop an executive team that is technologically savvy, organizations will have to go well beyond sending the executives to a training program. Technology must become part of the executive's day-to-day life, not just a one-day program or event. As such, organizations will have to commit an ongoing investment of time and resources in order to maintain a competitive advantage.
Organizational change is coupled with technological innovation, not just in products, but also in planning, managing, communicating, producing, and delivering effectively. Information and communication systems have become the backbone of the global enterprise. Although most executives are not responsible for their information technology system, they are required to understand the strategic application of technology and to lead the company in using it. If they are planning to engage in electronic commerce, technological leadership is especially important. Imagine, for instance, a manager of a company with alternating shifts in San Francisco and New Delhi (as many companies do to maximize 24/7 productivity) not knowing the working of the communications network that allows the exchange of product information. Or, picture anyone in international finance not knowing, in a thorough way, how exchange rates are handled in real time by computers.
There's a whole new level of literacy—not just in languages, but also technological literacy.[2]
In addition, leaders will need to understand enough about technological infrastructures to determine their potential for adding value to the company. For instance, there are great new ways to communicate, and there are software packages that make it possible, but if the infrastructures are not set up properly or are not compatible with the software, if security measures are too tight or not tight enough, it's not possible to take advantage of the potential for adding value. Leaders must have enough knowledge to evaluate the information put forth by their teams on these issues so that they can make decisions that will benefit the company.
Accenture, for example, recently implemented an enrollment system for a large health services organization. Focusing on adding value to the company, Accenture attempted to increase the potential for the return on investment by lowering the cost of the implementation. Accenture proposed using offshore resources in India, which would save the company hundreds of thousands of dollars. Although the technology created value-added cost reduction, communicating was difficult due to the different time zones. An instant messaging system was set up so that the teams could talk to each other in real time. However, the client's technology infrastructure was laden with security and firewalls that made the instant messaging system ineffective. Even though they had the technology, the teams were competent, and they wanted to share information, the time delay caused by the client's security system became a huge burden, and the added value that had been anticipated by having an offshore team at a reduced price was virtually eliminated.
Organizations are more networked. Technology such as email allows instant communication. This creates both opportunities and challenges for executives. Executives can communicate instantly with all members of the organization or contact any one in particular without having to go through a formal procedure. The ease of communication and the low cost of corresponding with people around the world allow companies to operate around the clock. Information, such as the details of projects and support services, can be exchanged immediately between groups and individuals who are involved in business development. Technology makes it easier for an executive to influence the organization through personal communiqués in a variety of media. For instance, during the attacks in the United States of September 11, 2001, many senior executives used voice mail and email to distribute multiple messages daily. The national emergency broadcasting system was not used; news networks and community and business leaders supplied people with the information they needed via the Internet and electronic communications.
However, there is a downside to so much communication technology. Take, for example, the stressed young CEO who travels with her laptop, Blackberry, cell phone, and Palm Pilot. While she can do her work any time and anywhere, without thoughtfully managing this slew of communication devices, she becomes an on-call executive whose work is likely to envelope her 24 hours a day, seven days a week.
Another benefit of technology is that the hoarding of information for political or defensive reasons becomes more difficult, since more people are included in the communication network. This can have great benefits, as illustrated in the following example. Recently, a large company implemented a SAP (systems, applications, and products) in data processing to replace its manual procurement system. The electronic system added value to the company and reduced costs for the different departments by automating all ordering, tracking all inventories, and curtailing vendor use. When the company implemented the SAP, department heads put their manual purchasing files into the SAP system. One individual had been embezzling money from the company by writing checks for services to artificial companies that he had set up under false names with bank accounts that he had opened. As long as the system was manual, this was possible; however, when the SAP system was implemented, it became apparent that there were some vendors not in the system but still receiving checks. After an investigation, it was found that these vendors didn't exist. This is just one instance in which it is apparent that any kind of system that requires individuals to communicate over a network will uncover information. To be effective, companies and leaders need to share information and data, yet openness can be vulnerable, so firewalls and other security measures must be used. Knowledge of these technologies is required to strike a happy balance so safety doesn't impede effectiveness.
Technology is driving change. Now, we communicate person-to-person much of the time. In the future we will work with people we seldom see. Therefore, we will need to be effective with the new technology so that we can connect with people in different geographic areas. For example, we will use email, faxes, cell phones, et cetera to help employees feel close to the headquarters even when they are located far away and we see each other face-to-face only once a year. Future leaders must adapt themselves to the changing technology.[3]
The global leader will use technology systems as communications tools, but not in the traditional, simple sense of sending and receiving messages and directives. More so than in the past, leaders will take advantage of these communications systems as natural checks and balance measures. Unlike a hard copy, interoffice memo, these systems allow for more two-way communication in which each individual receiving the communication has the opportunity to rebut, add to, and question what the leader has said via the same technology. This supports a natural environment of growth and creativity, and allows team members to build trusting, supportive relationships that benefit the company.
Future leaders will use these systems to extend their presence throughout the organization—that is, they will replace the traditional "management by walking around" approach with valuable "anytime, anyplace" communication, enabled by multiple technologies ranging from the Internet to videoconferencing and digital wireless networks.
For instance, as businesses expand across the globe, the advent of videoconferencing brings people who work in different countries "face to face." It gives leaders the opportunity to see the people with whom they are doing business, their mannerisms and facial expressions, things that they would otherwise never see. This lends an element of trust to a crossglobal relationship that might not be possible sight unseen.
Another growing technological advancement is the evolving and improving Blackberry advanced wireless handheld communication system, which allows for virtual conversations through the use of multiple technologies. Leaders will take advantage of these new and existing technologies because they are not going to be in as many face-to-face situations. They will have to be able to communicate any place, any time, and they will have to know which communication mechanism to use to do so. The better a leader is at understanding how to communicate with people and understanding what information they need, the better he or she will be at using the technical components of communication mechanisms.
With so many communication tools currently at our disposal, to be effective, the global leader must know not only how to use the tools, but also which tool to use at what time, which medium requires what tone of voice, who to send the information to, and what type of information is required. For instance, if financial information is needed, a voice mail probably wouldn't work, but an email would.
One ongoing communication challenge that leaders face is being available to answer questions and discuss ongoing projects and progress with employees. Many executives set aside blocks of time each day for phone calls and meetings to discuss ongoing projects with team members; however, the imbalanced ratio of one leader to many employees often results in missed or hurried appointments that do not benefit either party. The effective use of today's technology tools, such as email and the Internet, has the potential to increase communication between leaders and their teams by making it possible to conduct business from a variety of places any time of day. In addition, it is possible to post progress updates, give assignments, and deliver information about departmental and business-wide policies and initiatives to people around the world.
Another challenge for many current executives is that they feel intimidated by new technology. They are embarrassed to admit that their children, or even their grandchildren, often know more than they do! How many of you have ever burned a CD off the Internet?
There are reasons for this: Global leaders have generally achieved a great deal of success in life and often do not want to play a game they feel they cannot win. These leaders must understand that technological savvy does not require winning a competition or being an expert, and must learn how to understand the impact of technology and to recruit and communicate with technical experts.
Global leaders may be averse to technology because they have seen what happens when private emails between executives and their team members get dragged through the courts; because emails and attachments don't always transfer properly and calendaring systems sometimes don't set up an important appointment; or because cell phones are capable of losing a connection at the most important point in a negotiation with a key client. These leaders must realize that technological savvy involves discretion, patience, a developed understanding of the impact of technology, and the ability to recruit and communicate with technical experts. In other words, global leaders do not need to become technical experts, but they should be adept enough to hire people who are.
The marketplace is much different now than it was a decade ago. There is more of a demand for talented and educated people with a technical background. The global leaders need to attract new talents and keep existing talents. They must create an environment where young people are constantly learning new things and where they have a clear and visible career path.[4]
This can even be true in "high-tech" organizations. Most people believe that Lou Gerstner, former CEO of IBM, did a fine job of leading the corporation. He has often noted that he is not a technical expert, but he has clearly demonstrated the technological savvy needed to lead IBM. Scott McNealy, CEO of Sun Microsystems, did not have the technical vision that led to the creation of the Java programming language. He did have the technological savvy needed to work with technical visionaries and ultimately see the business value of their efforts. Leaders who understand the difference between technological savvy and technical expertise are much more willing to begin acquiring the new skills needed for the future success of their organizations.
A main function of the global leader of the future will be to effectively hire advisers who not only understand new technology, but also can explain how it can help businesses to gain a competitive advantage.
Collaborative leadership failings occur when we don't take the time to involve the right technical expertise and when we don't build the team spirit; when we don't have a common objective or understanding; and when we don't have good communication.[5]
Hugh McColl, former CEO of NationsBank, has noted that in the past he could develop a vision for the bank and communicate his vision to employees. He focused on collaboration by soliciting the input of valued technical advisers before communicating the vision. He has been successful by applying both internal and external expert advisers on business plans and technological strategies.
They must be able to effectively use a team of technical experts. We need to be able to access the expertise of others and use them for decision making. [6]
Individuals with the proper support, training, and education can maximize the use of technological savvy to achieve goals otherwise unattainable. For instance, the technological savvy of a team of 12 United States Special Forces was critical to the collaboration between the Northern Alliance and the US military in Afghanistan. The Special Forces team members, armed with just their technological knowledge, knowledge of the region's history, religion, and culture, and limited combat experience, were able to leverage the impact of strategically placed bombs with great accuracy and thus help defeat the Taliban and Al-Quaeda forces in Afghanistan. [7]
Finding people who have technical talent, business knowledge, and effective communications skills is extremely difficult—and expensive. For example, the going rate for beginning salaries in Silicon Valley can be 30 percent to 50 percent higher than in the rest of the United States, and the same sort of disparity exists, to a degree, in the other technological centers of the world. Even for companies that are not technology companies themselves, the skilled labor comes higher simply because the demand for such talent remains high. Future leaders will have little choice but to make the investment, because for some, technical skills will be more important than language skills.[8]
Global leaders of the next generation should focus on the technological capacities and competencies that are coming with the next generation of the workforce. Many companies, while they have created and installed the necessary technological infrastructures, have not had a workforce that was motivated or capable of using the tools. The incoming workforce has been brought up with technology. These young people have the competence and the capability to use the technological infrastructures in which companies have been investing.
Almost all the high-potential leaders surveyed believe that the global leader of the future will need a far deeper knowledge of the benefits—and limitations—of technology.
Much as automobile companies have invested in improvements in the combustion engine since Etienne Lenoir patented the first practical gas engine in 1860, leaders must assess and invest in information and technological infrastructures as the distribution of knowledge becomes an increasing component of organizational success. It's not necessary that they understand all the technological details, but they will need to be able to make informed decisions as to whether or not proposed investments in technology will lead to beneficial changes in performance, activity, and procedures. For instance, does a technology investment result in added revenue, reduced expense, or better customer service?
Such understanding will need to be integrated into the core of the business to help the organization maintain a competitive advantage. Developing this knowledge will include an exploration into the specific applications that will have the most impact on each part of the business. For example, the future leaders will need to use the entire range of communication modes and skills as they guide their organization through dramatic change. They must select which communication tool will be the most effective for each situation, whether it be email, telephone, teleconferencing, face to face, et cetera.[9]
It is important to learn what different technologies can make a difference to the organization. For example, if a leader is constantly traveling, desktop videoconferencing may eliminate the need for many face-to-face meetings and save huge amounts of time and money. If a leader manages people who work in different time zones (or on different shifts), then asynchronous data conferencing—essentially, electronic bulletin boards—may be effective.
The key is to be selective: Understand which technologies can offer clear benefits and focus on those in the short term. The pressures and expectations will be to leverage the technological changes. For example, it's actually cheaper to send people overseas. It's better using the Internet.[10]
Developing a technologically savvy executive team will require an investment—in time, in money, and in commitment. As with any investment, the organization will need to conduct a cost-benefit analysis to determine priorities. As new technology becomes more and more a part of the core process of the organization, the benefit of this investment increases, as does the cost of not making the investment.
With the highly decentralized way of doing business today, in which people are scattered all over the world, there is a challenge. At BellSouth, they use technology to communicate to the local offices instead of having someone travel all over the place. They use television broadcasting to carry the message forward to even the remote places.[11]
Successful organizations of the future will do whatever is needed to equip their leaders with the skills needed to effectively increase productivity in the information age. However, the psychological commitment to developing a technologically savvy leadership team has often lagged behind the financial commitment. Many organizations today are investing billions of dollars in new technology and investing almost nothing in developing the technological savvy of the leaders who are ultimately responsible for making the resource allocation decisions. This can lead to grave problems when it comes time to incorporate the software into the workplace. Take, for instance, the company that invests thousands of dollars in a new customer accounting system, only to find that the software is not compatible with the old system. Not only has the company paid for the new software, it must pay to train employees to use it, and it must pay the many hours of overtime that it will take to manually input the old data into the new system.
A future global leader who is not able to use global electronic mail and conference systems, laptop computers, and modems will be a rarity. These leaders need to be fully conversant with technological tools and advances, and able to use them. There is a great need for global leaders who are technologically capable, both individually and organizationally.
The development of technological savvy will require much more than the halfhearted efforts that many organizations have made in the past. Even many nontechnical organizations are finding that the wise use of new technology is becoming a critical key to their survival. As the impact of new technology increases in importance to the business, the strategy of hiring a few technically gifted people and expecting them to "carry" the rest of the organization will no longer work. In the future, technical knowledge will have to be successfully integrated into the core of the business in order to help the organization achieve a competitive advantage. Leaders at all levels, especially executives at the top. will need to understand this integration.Organizations that invest the necessary time, money, and commitment into the development of executives who are committed and competent in the management of new technology will have a huge competitive advantage in tomorrow's new world.
1. M. Goldsmith & C. Walt. "Developing Technological Savvy." In Leader to Leader. Jossey-Bass and the Drucker Foundation: San Francisco, Winter, 1999.
2. Technology, United States, 35.
3. Products and services, Mexico, 46.
4. Products and services, United States, 24.
5. Products and services, United States/England/Norway 49.
6. Pharmaceutical, United States, 41.
7. Information from interview with MG CMDT USAWC Robert R, Ivany conducted by Cathy Greenberg. December 2002. This information does not represent the opinions of the United States Army.
8. Government, United States, 27.
9. Investments, United States, 27.
10. Telecommunications, United States, 36.
11. Telecommunications, United States, 34.