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The role of leadership and employee well-being in digital business develpoment Reser 2016

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Riitta-Liisa Larjovuori
Riitta-Liisa Larjovuori

The document discusses a research project that explored how leadership and employee well-being can support organizational digitalization. It aimed to create a theoretical framework to understand these relationships and guide an employee survey. The framework examines the roles of digital leadership, employee techno-work engagement and techno-stress, and organizational digital maturity. It also outlines interesting questions for future research, such as how measures of these concepts will work with empirical data and how prerequisites for successful digitalization may vary between organizations.

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THE ROLE OF LEADERSHIP AND EMPLOYEE WELL- BEING IN ORGANISATIONAL DIGITALISATION Riitta-Liisa Larjovuori ,Laura Bordi, Jaana-Piia Mäkiniemi and Kirsi Heikkilä-Tammi. University of Tampere,School of Management
THE CONTEXT OF THE RESEARCH USCO (Using digital co-creation for business development) –project conducted by Laurea - University of Applied Sciences and University of Tampere, School on Management in 2016-2018. • How digital business development in Finnish organisations could be supported and accelerated by co-creation with both employees and customers? • How can co-creational practices and employee attitutes and behaviours be enhanced by leadership and organizational culture? Co-funded by Tekes (the Finnish Funding Agency for Technology and Innovation) and eight Finnish organisations (including SME’s, large companies and two public sectors organisations)
THE PURPOSE OF THE PAPER To create a theoretical framework for • understanding and exploring the role of leadership and employee well-being in the context of organisatinal digitalisation • Understanding and exlpoing how organisational digitalisation could be measured and operationalised To structure and guide the following empirical study (an employee- survey for 8 organisations conducted twice during the project) 1/11/2017
1/11/2017 The emerging framework for exploring the connections between leadership, employee well- being and organisational digitalisation
THE ROLE OF LEADERSHIP IN DIGITAL BUSINESS TRANSFORMATION Strategic leadership of digitalisation the leaders’ ability to create a clear and meaningful vision for the digitalisation process and the capability to execute strategies to actualize it. Moreover, it is assumed that digital leadership implies the capability to involve all members of the organisation in the digitalisation process, as well as to recognize and to develop the skills and abilities needed to carry it through. Example items (modified from Westerman et. al. 2014) The IT unit’s performance meets the needs of the company. The company is investing in the necessary digital skills. Servant leadership: “demonstrated by empowering and developing people; e.g. by expressing humility, authenticity, interpersonal acceptance, and stewardship and by providing direction to followers (Mittal & Dorfman 2012).” Good and especially so called servant leadership during organisational change was linked with more positive employee experiences (Hakanen, Harju, Seppälä, Laaksonen, & Pahkin, 2012). Under uncertain circumstances servant leadership was associated with experiences of work engagement (de Sousa & van Dierendonck, 2014). Example items (van Dierendonck): My manager encourages me to use my talents. My manager keeps himself/herself in the background and gives credits to others. 1/11/2017
THE ROLE OF EMPLOYEE WELL-BEING .Technology-related work engagement (Techno-work engagement) Techno-work engagement is a novel concept, describing a positive motivational state towards the use of technology at work Modified from the concept of work engagement (Schaufeli & Bakker, 2006) Example items: I am enthusiastic about using technology in my job. When I’m working with technology, I always preserve, even when things do not go well. Techno-stress Technostress is a form of work stress associated with the use of ICTs at work or the threat and fear of having to use it in the future. Example items (Ragu-Nathan et al., 2008): I have higher workload because of increased technology complexity. I feel tense and anxious when I work with ICT. 1/11/2017
A digitally mature organization: “an organisation where digital has transformed processes, talent engagement and business models”. (Kane et al. 2015) Our definition: the organisation’s capability to recognize and utilize the business opportunities provided by the development of digital technology and the capability to carry out strategies to execute the vision. Example items: My organization has a clear and coherent digital strategy I am confident in my organization’s readiness to respond to digital trends. The use of digital technologies in e.g. customer service, co-operation etc. 1/11/2017 DIGITAL MATURITY OF THE ORGANISATION
INTERESTING QUESTIONS FOR THE FUTURE WORK • How will the novel concept of technology-related work- engagement work and how does it corralate with other variables? • How will the measures of organisation’s digital maturity and digital leadership work in empirical data? • To what extent do the organizational prerequistites for succesfull digitalisation vary from one organisation to other? • To what extent do the judgements of e.g. digital maturity of strategic leadership of the digitalisation differ between diffenent organisational levels? Do e.g. managers judge the organisation’s state more positively than lay-workers?
REFERENCES Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press. http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/ Kræmmergaard, P., El Sawy, O., Amsinck, H., & Anders, V. (2015). Building the foundations and enterprise capabilities for digital leadership: The Lego experience. 2015 Society for Information Management. http://dinst.dk/UserFiles/Artikler/LEGO_SIM_Digital_Leadership_Paper_-_SIM_WIN.pdf RaguNathan, T. S., Tarafdar, M., RaguNathan, B. S., & Tu, Q. (2008). The consequences of technostress for end users in organisations: Conceptual development and empirical validation. Information Systems Research 19(4), 417433. Schaufeli, W. B., Salanova, M., González-Romá, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: A two sample confirmatory factor analytic approach. Journal of Happiness studies, 3(1), 71-92. van Dierendonck, D. (2011). Servant leadership: A review and synthesis. Journal of management, 37(4), 1228- 1261. van Dierendonck, D., & Nuijten, I. (2011). The servant leadership survey: Development and validation of a multidimensional measure. Journal of business and psychology, 26(3), 249-267. Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.
THANK YOU! You can change the world only if you know how it works. 1/11/2017

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The role of leadership and employee well-being in digital business develpoment Reser 2016

  • 1. THE ROLE OF LEADERSHIP AND EMPLOYEE WELL- BEING IN ORGANISATIONAL DIGITALISATION Riitta-Liisa Larjovuori ,Laura Bordi, Jaana-Piia Mäkiniemi and Kirsi Heikkilä-Tammi. University of Tampere,School of Management
  • 2. THE CONTEXT OF THE RESEARCH USCO (Using digital co-creation for business development) –project conducted by Laurea - University of Applied Sciences and University of Tampere, School on Management in 2016-2018. • How digital business development in Finnish organisations could be supported and accelerated by co-creation with both employees and customers? • How can co-creational practices and employee attitutes and behaviours be enhanced by leadership and organizational culture? Co-funded by Tekes (the Finnish Funding Agency for Technology and Innovation) and eight Finnish organisations (including SME’s, large companies and two public sectors organisations)
  • 3. THE PURPOSE OF THE PAPER To create a theoretical framework for • understanding and exploring the role of leadership and employee well-being in the context of organisatinal digitalisation • Understanding and exlpoing how organisational digitalisation could be measured and operationalised To structure and guide the following empirical study (an employee- survey for 8 organisations conducted twice during the project) 1/11/2017
  • 4. 1/11/2017 The emerging framework for exploring the connections between leadership, employee well- being and organisational digitalisation
  • 5. THE ROLE OF LEADERSHIP IN DIGITAL BUSINESS TRANSFORMATION Strategic leadership of digitalisation the leaders’ ability to create a clear and meaningful vision for the digitalisation process and the capability to execute strategies to actualize it. Moreover, it is assumed that digital leadership implies the capability to involve all members of the organisation in the digitalisation process, as well as to recognize and to develop the skills and abilities needed to carry it through. Example items (modified from Westerman et. al. 2014) The IT unit’s performance meets the needs of the company. The company is investing in the necessary digital skills. Servant leadership: “demonstrated by empowering and developing people; e.g. by expressing humility, authenticity, interpersonal acceptance, and stewardship and by providing direction to followers (Mittal & Dorfman 2012).” Good and especially so called servant leadership during organisational change was linked with more positive employee experiences (Hakanen, Harju, Seppälä, Laaksonen, & Pahkin, 2012). Under uncertain circumstances servant leadership was associated with experiences of work engagement (de Sousa & van Dierendonck, 2014). Example items (van Dierendonck): My manager encourages me to use my talents. My manager keeps himself/herself in the background and gives credits to others. 1/11/2017
  • 6. THE ROLE OF EMPLOYEE WELL-BEING .Technology-related work engagement (Techno-work engagement) Techno-work engagement is a novel concept, describing a positive motivational state towards the use of technology at work Modified from the concept of work engagement (Schaufeli & Bakker, 2006) Example items: I am enthusiastic about using technology in my job. When I’m working with technology, I always preserve, even when things do not go well. Techno-stress Technostress is a form of work stress associated with the use of ICTs at work or the threat and fear of having to use it in the future. Example items (Ragu-Nathan et al., 2008): I have higher workload because of increased technology complexity. I feel tense and anxious when I work with ICT. 1/11/2017
  • 7. A digitally mature organization: “an organisation where digital has transformed processes, talent engagement and business models”. (Kane et al. 2015) Our definition: the organisation’s capability to recognize and utilize the business opportunities provided by the development of digital technology and the capability to carry out strategies to execute the vision. Example items: My organization has a clear and coherent digital strategy I am confident in my organization’s readiness to respond to digital trends. The use of digital technologies in e.g. customer service, co-operation etc. 1/11/2017 DIGITAL MATURITY OF THE ORGANISATION
  • 8. INTERESTING QUESTIONS FOR THE FUTURE WORK • How will the novel concept of technology-related work- engagement work and how does it corralate with other variables? • How will the measures of organisation’s digital maturity and digital leadership work in empirical data? • To what extent do the organizational prerequistites for succesfull digitalisation vary from one organisation to other? • To what extent do the judgements of e.g. digital maturity of strategic leadership of the digitalisation differ between diffenent organisational levels? Do e.g. managers judge the organisation’s state more positively than lay-workers?
  • 9. REFERENCES Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press. http://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/ Kræmmergaard, P., El Sawy, O., Amsinck, H., & Anders, V. (2015). Building the foundations and enterprise capabilities for digital leadership: The Lego experience. 2015 Society for Information Management. http://dinst.dk/UserFiles/Artikler/LEGO_SIM_Digital_Leadership_Paper_-_SIM_WIN.pdf RaguNathan, T. S., Tarafdar, M., RaguNathan, B. S., & Tu, Q. (2008). The consequences of technostress for end users in organisations: Conceptual development and empirical validation. Information Systems Research 19(4), 417433. Schaufeli, W. B., Salanova, M., González-Romá, V., & Bakker, A. B. (2002). The measurement of engagement and burnout: A two sample confirmatory factor analytic approach. Journal of Happiness studies, 3(1), 71-92. van Dierendonck, D. (2011). Servant leadership: A review and synthesis. Journal of management, 37(4), 1228- 1261. van Dierendonck, D., & Nuijten, I. (2011). The servant leadership survey: Development and validation of a multidimensional measure. Journal of business and psychology, 26(3), 249-267. Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.
  • 10. THANK YOU! You can change the world only if you know how it works. 1/11/2017