Eng
Eng
It's hard to find a black cat in a dark room, especially if it isn't there.
Confucius
I first heard the phrase “Are we looking for a black cat in a dark room?” during a discussion among several scientists about the rationality of a research hypothesis.
The search for a black cat in a dark room, especially when no cat is there, expresses the idea of futile effort. It symbolizes a pursuit of something that likely does not exist and is ultimately absurd. Although this phrase is attributed to Confucius, it is more of a philosophical concept than a direct quote. Applying this idea to the context of Organizational Behavior creates a powerful metaphor, reflecting the wasteful expenditure of energy and resources in organizational management, leading to inefficiency.
In this article, I will try to answer the following questions:
Why do organizational leaders search for a black cat in a dark room, losing consistency and harming the organization in the process?
Why do intelligent people make elementary and absurd mistakes?
To answer these questions, let's consider several theories.
Fear of Missing Out (FOMO)
Do you remember the anxiety in school while waiting for an invitation to a classmate's party? Or the feeling of missing an important event? These emotions are linked to anxiety and regret, commonly referred to as the Fear of Missing Out (FOMO).
The Fear of Missing Out (FOMO) has been a part of human nature and our daily lives since ancient times. Early humans instinctively understood that missing out on food, shelter, or a suitable mate could jeopardize the survival of their species. Therefore, this fear is universal and present in every person, race, generation, and gender. However, with the advent of technology, particularly social media, FOMO has significantly intensified.
Herman first highlighted FOMO in 2000 (Herman D, 2000), using the term to describe consumer behavior. However, after the COVID-19 pandemic, the term became more generalized, with modern authors using it to explain anxiety. Given this growing trend, people are often referred to in literature not as HOMO Sapiens but as FOMO Sapiens.
In the context of Organizational Behavior, FOMO reflects human anxiety and fear of missing out on an opportunity, innovation, or trend that may be crucial. Here, we talk about a leader who, under the influence of FOMO, is constantly searching for new initiatives and losing consistency.
FOMO can manifest in the following forms:
Copying every new trend that may be less relevant or inappropriate for the business.
Constantly implementing innovations and initiatives when core business processes are not yet established.
Making hasty decisions that are not aligned with the company's long-term strategy.
Taking unjustified risks, such as investing significant resources based on current trends and intuition without prior market analysis.
In today's world, the pursuit of new ideas is essential. However, decisions fueled by FOMO can lead to impulsive and unpredictable leadership, much like searching for a black cat in a dark room—even when it isn’t there.
Fast Thinking (System 1) vs. Slow Thinking (System 2)
According to Daniel Kahneman's book «Thinking, Fast and Slow», people use two different thinking systems when making decisions. When the outcome is easily predictable or when we encounter something familiar, we make fast, intuitive decisions; this type of thinking is called System 1. On the other hand, when faced with a complex task or unfamiliar environment, we start applying more deliberate and slow thinking, activating System 2.
Fast thinking, or System 1, is the brain's automatic mode, which conserves effort and energy. It is formed based on previous experience, decisions, and the environment in which we grew up. Often, System 1 is helpful as it saves energy, helps us navigate our environment, and avoids constantly reconsidering details. For example, in everyday life, we use System 1 more frequently, while System 2, which involves slow thinking, can be tiring and irritating when used often.
However, it's important to note that System 1 has its drawbacks—it is prone to errors, subjective judgments, and biases. System 1 does not account for important details and relies on existing experience.
The choice between fast thinking (System 1) and slow thinking (System 2) is fully conscious; a person chooses which system to rely on when planning. It is also worth noting that System 1 operates automatically, like an autopilot, so in stressful situations or when fatigued, a person is inclined to make decisions with minimal energy expenditure, using System 1.
This is why intelligent people sometimes make very simple mistakes and, based on System 1, may instruct their team to search for a black cat in a dark room, as it worked in the past. In such cases, we encounter a pattern-based approach and a rigid attitude toward the surroundings ("don't miss the important stuff"). As a result, the company may stagnate instead of correctly utilizing and developing new opportunities.
How can this be changed?
Fear of missing out (FOMO) can be a powerful and legitimate motivator for both leaders and teams. However, it's crucial to recognize its potential downsides. Striking a balance between fast, instinctive thinking (System 1) and slow, analytical thinking (System 2) is essential for effective decision-making.
While it's natural to rely on fast thinking for routine tasks, navigating complex situations requires the deliberate approach of slow thinking. It's important to remember that both FOMO and fast, automatic thinking are intrinsic parts of us. They can be managed through self-reflection, continuous development, seeking feedback from your team, and maintaining a healthy work-life balance. These practices help ensure that you don’t overlook critical details due to stress or incomplete information, avoid making decisions driven solely by FOMO or Fast thinking, and most importantly, resist the temptation to chase a black cat in a dark room, especially when it isn’t there.
Did you know that nearly 60% of employees report feeling emotionally drained by the end of each workday? With the evolution of the labor market, focusing on employee well-being has ceased to be a luxury or a one-off initiative—it has become a necessity for survival and the foundation for long-term success.
The driving force behind a company is its strong employees. The viability of an organization depends on the realized potential and well-being of each worker. Experience and international empirical research show a direct link between employee well-being and their productivity, effectiveness, and commitment to the organization. The higher the employee's well-being, the more they are a team player, show empathy toward others, and are more productive and effective in their work processes, which is the cornerstone of organizational success.
Given this situation, it has become evident to modern HR specialists and managers that well-being is not an additional but an integral value of the company. Consequently, for proactive, development-oriented organizations, one of the primary tasks is to implement a human-centered culture, ensure a safe environment for employees, and promote their well-being. This involves increasingly frequent and prioritized adoption of various supportive approaches and interventions.
The Concept of Well-Being
Well-being is a comprehensive concept that, according to the perspective of positive psychology, extends beyond rational factors to include psychological aspects such as socio-emotional, mental, and cognitive resilience. Various theoretical reviews and empirical studies suggest that achieving employee happiness and well-being in an organization is contingent upon providing various motivational factors and circumstances:
Emotional Well-Being: Numerous studies confirm that employees' emotional resilience, ability to self-regulate and adapt emotions, optimism, and positive attitude toward work significantly influence work motivation, approach to tasks, and the quality of work performed. Conversely, a combination of negative emotions such as anxiety, tension, and irritation can lead to emotional burnout and professional exhaustion. These symptoms often become primary or at least indirect causes of job departure.
Social Well-Being: Considering that employees spend a third of their time at work, the style of interaction in the work environment, opportunities for receiving and exchanging support and empathy, are particularly important. Factors such as cooperation, shared joy, a sense of belonging, pride in achievements, and belief that the environment supports and values you, are guarantees of a safe environment and healthy social interaction, which, in turn, forms the basis for employee retention and the accumulation of positive capital in the long term.
Professional Well-Being: An employee’s perception of their activities and role is a critical component of well-being. Organizations need to be aware: is the employee passionate about what they do? Do they believe in the importance of their work? Do they consider their work valuable? How competent do they feel? Do they have a sense of autonomy? Do they see their contribution to achieving the company's overall goals and vision? These questions determine internal motivation, interest, productivity, and ultimately, employee effectiveness. Providing career paths, opportunities for continuous learning, and recognizing employee achievements are effective strategies for enhancing professional well-being.
It is clear that a high level of professional well-being is key to employee productivity and, consequently, to the effectiveness and success of the organization.
Physical Well-Being: Beyond physical endurance, a crucial aspect is the feeling of safety and security in the workplace. It is also important for the organization to understand how work conditions and the environment contribute to employees feeling good and being productive.
Financial Well-Being: The importance of this aspect relates to how employees' financial security, fairness, and adequacy of compensation compared to the work performed significantly impact their motivation, attitude toward work, and desire for long-term collaboration with the company.
Thus, focusing on individual aspects of well-being, as well as the overall picture, improves indicators of resilience, engagement, and productivity; strengthens organizational loyalty; creates a healthy and positive work climate; fosters a high-performance culture; and ultimately enhances the organization's internal success, ecosystem, viability, as well as productivity and reputational resilience.
Well-Being Diagnosis
We believe that the first step towards creating a human-centered, safe environment in an organization is assessing the components whose combination is essential for achieving well-being. Well-being diagnostics allow the organization to understand what employees think and feel, identify issues in organizational climate and culture, and determine which well-being parameters require more attention and targeted interventions.
To this end, ACT has developed a unique model—the Employee Well-Being Matrix—which is based on a holistic view of well-being and symmetrically provides organizations with data on both overall and specific well-being indicators—where it is stable and where it requires support.
The Matrix: A Compass for Employee Well-Being
The Well-Being Matrix is like a lens that allows you to see even the most challenging organizational well-being issues. In this labyrinth, the matrix is not just a diagnostic tool but a symbol of balance and clarity. Research identifies pain points, and targeted responses to them make strategic interventions much more effective.
We believe that just as the matrix creates balance, sequence, and structure in complex and sometimes chaotic data, the Well-Being Matrix will bring similar clarity and a clear vision to organizations, serving as an important compass on the path to creating a human-centered, positive climate.
When it comes to powerful storytelling in advertising, few stages are as prominent as the Olympics. Brands like Nike and Coca-Cola have long understood the value of emotional connection during such high-stakes global events. But as we’ve seen in recent Olympics, the way emotions are used in advertising can be the difference between just grabbing attention and truly moving people to action.
Take Nike’s “Winning Isn’t for Everyone” ad, for instance. At first glance, it seems like a perfect match for the Olympic spirit with its portrayal of athletes driven by a relentless, almost ruthless ambition. However, there’s a catch. The ad starts with a provocative question: “Am I a bad person?” and then goes on to link greatness with traits like deception, obsession, and a lack of empathy. On paper, this fierce drive looks compelling, but it misses the mark in some key ways.
The problem lies in the ad’s portrayal of greatness. By associating success with negative traits like ruthlessness and a lack of compassion, it creates a misleading picture. True greatness, whether in sports or any other field, is not about trampling over others or losing one’s humanity. It’s about fierce determination balanced with respect for others and a strong sense of personal integrity.
Nike's intention might have been to highlight the relentless drive required to achieve greatness, but the execution fails to address the importance of maintaining a balance between ambition and ethical conduct. Great athletes are known for their dedication and intense focus, but they also understand the significance of compassion, respect, and a well-rounded approach to success. The best athletes manage to channel their drive without compromising their core values or well-being.
In stark contrast, Coca-Cola’s “It’s Magic When the World Comes Together” ad excels by weaving a story of unity and upliftment around South African swimmer Tatjana Schoenmaker. Rather than simply showcasing competition, this ad evokes hope, redemption, and togetherness—emotions that connect on a deeply personal level. This approach not only engaged audiences but also fostered a strong emotional connection with the brand. It shows that empathy and shared human experiences can be as powerful as intensity and competition.
So, what can brands learn from these two contrasting approaches? The key takeaway is that while competition is a powerful theme, how it’s presented can make a huge difference. Nike’s ad had intensity but lacked the emotional depth needed to create a lasting impact. Coca-Cola, on the other hand, reminded us that the most memorable ads are those that go beyond competition and touch on universal human experiences.
As we look forward to future Olympic advertising, there’s an opportunity for brands to not only celebrate the triumphs of competition but also to explore the softer, more relatable sides of these stories. Whether through humor, hope, or the simple act of coming together, the ads that leave a lasting impression are those that connect with us on a human level.
In the end, the most effective creative work doesn’t just tell us who won—it shows us why it matters. And that’s a lesson worth remembering, not just for the Olympics, but for all brand storytelling.
In Estonia, replacing the traditional, non-digital model of providing public services with an electronic model is a clear example of good governance. With the X-Road initiative, implemented in stages since 2000, Estonia has successfully digitized 99% of public services offered to citizens, saving 2 percent of its gross domestic product (GDP) annually (2004). .-s., 2004) (Organization for Economic Co-operation and Development – OECD, 2020). In 2023, the savings amounted to 754 million euros.
A New Model of Public Administration in the Post-Soviet Space
With independence from the Soviet Union, the Estonian public sector faced a new challenge, which in turn meant an urgent need to modernize the public services offered to citizens. In 1992, the objective of the public administration reform dictated by the new constitution was to prepare for future sector and national initiatives by strengthening the principles of accountability, efficiency and transparency in public institutions (Office of the United Nations High Commissioner for Human Rights – OHCHR). In parallel with the problems in the public sector, the Estonian authorities began to care about universal access to the Internet. In 1996, within the framework of the so-called Tiger Leap (Est. Tiigrihüpe) program, the Estonian government provided Internet access to all public schools in the country within five years. Although the aforementioned program was implemented only in public schools, it is considered fundamental in the process of building a digital society (Education Estonia, 2024). The significance of the Tiger Leap is emphasized by the government's reference to the achievements in the field of education in 1998 when drafting the document defining the Principles of Estonian Information Policy (Electronic Governance Academy – EGA, 1998). The document outlined the future directions of the development of the digital society in Estonia.In order to raise public awareness of the rapidly changing situation in the public sector and reduce scepticism towards e-governance, the government established the Data Protection Inspectorate (Estonian: Andmekaitse Inspektsioon) in 1999.
An indirect result of the productive work of the said agency was the adoption of the legal framework for electronic signatures in Estonia in 2000, which, together with the electronic tax system (e-Tax) approved in the same year, significantly changed the financial situation in the sector (EUR-Lex, 2000). Currently, more than 95 percent of tax returns in Estonia are completed electronically, which in turn reduces the bureaucratic and financial resources spent on this process (Invest in Estonia, 2024).
The first stage of digital transformation in Estonia in 2001-2002, with the start of preparations for e-elections and within the framework of the United Nations Development Programme, the Government of Estonia, the Open Society Foundation (OSF) and the Bratislava Regional Support Centre (Bratislava Regional Support Centre (BRC) Within the framework of the common initiative, the non-governmental organization “E-Governance Academy” was established (National Interoperability Framework Observatory – NIFO, 2017). It is significant that in the parliamentary elections held in March 2005, the majority of votes - 51 percent - were recorded online, using the “i-Voting” system (e-Estonia, 2023).
X-Road Initiative: Digital Citizen in a Digital State
With the advent of digital information systems in Estonia, the authorities began to care about creating a secure data exchange ecosystem. The new “X-Road” platform, created in 2001, in addition to regulating the databases necessary for the provision of public services, also ensured their safety.
The success of the initiative has led to its implementation in other countries. Today, the platform is used not only by Estonia, but also by more than 52,000 entities from 20 countries and more than 3,000 services offered by them. The efficient data exchange process provided by the initiative is on average 1,407 times faster than it would be without the platform (e-Estonia, 2024) (E-Estonia, 2019).
Among the services provided by the Estonian platform, the following have the status of “critical importance”:
• The digital taxation and settlement system (e-Tax), created in 2000 by the Estonian Customs and Tax Board, which allows citizens to fill out financial declarations online. The said system not only ensures greater transparency, but also - significantly reduces the time required to complete the said procedure to an average of 3 minutes (Invest in Estonia, 2024);
• Electronic health system (e-Health), which aims to provide health services to users anywhere in the country by exchanging data from private and public health service providers. In addition to digitizing 99 percent of patient health data, Estonia began issuing digital medical prescriptions and referrals in 2019, allowing its citizens to receive fast health services in other EU Member States (Council of Europe, 2024);
• Digital justice system (e-Justice), implemented by the Estonian Ministry of Justice in first and second instance courts, which allows citizens to apply to city and appellate courts at any time, twenty-four hours a day (e-justice). Estonia, 2024);
• The Digital Residence (E-Residency) program, established in 2014, which provides over 100,000 foreign citizens with the right to remote access to Estonian services and the opportunity to register and manage a business in the European Union, adding 60-70 million euros to the Estonian budget annually (Enterprise and Innovation Fund – EISA, 2024);
• The Estonian Data Embassy in Luxembourg, based on the Vienna Convention on Diplomatic Relations, is an outstanding example of innovative use of cloud technology. The aforementioned data center, located in Luxembourg under the fourth level of protection, allows the authorities to safely host state information outside the country, which in turn ensures the continuity of state processes in the event of a cyberattack on Estonian infrastructure (Electronic Estonia, 2019).
The digital identification (e-Identity) and electronic signature system, created in 2002, helps citizens use the above-mentioned services. It provides Estonian citizens, regardless of their place of residence, with a state-issued digital identity document. Using an electronic signature speeds up the receipt of the above-mentioned services, which allows each citizen to save an average of 5 days a year (e-Estonia, 2024).
Improving the digital landscape in Estonia
Despite the successes achieved in the area of e-government, the Estonian authorities are actively working to eliminate the problems that have arisen in the context of improving the country's digital ecosystem. Among the main problems that exist today, the following are significant:
• Improving data security - with a high level of "digitization" of the population, which, in turn, is evidenced by the active use of electronic ID cards by 98 percent of citizens, the Estonian authorities are aware of the cybersecurity risks associated with large-scale transformations (Electronic Estonia, 2017). In order to combat cyber threats, the NATO Joint Cyber Defence Training Centre (CCDCoE) operates in Estonia in cooperation with Western partners, which has a positive impact on the country's National Cyber Security Index (NCSI). According to the index, Estonia's level of national cyber security ranks fifth after the Czech Republic, Poland, Belgium and Australia (NCSI, 2024);
• Strengthening digital equality - despite the high level of successful access to public services offered to them electronically by a significant part of the population, the Estonian authorities take into account a small group of citizens who do not have access to the above-mentioned services. In this direction, the framework document developed by the Estonian Ministry of Economic Affairs and Communications - "Digital Agenda 2030" (eng. Digital Agenda 2030) focuses on increasing the digital awareness of citizens (Estonian Ministry of Economic Affairs and Communications, 2021);
• Creating conditions for technological progress. In line with the above-mentioned digital agenda, the Estonian authorities are aware of the potential of integrating artificial intelligence into the provision of public services and e-governance. At this stage, state and public institutions are actively using the virtual assistant “bureaucrat” (Estonian: bürokratt), created on the principle of artificial intelligence, the purpose of which is to “track” citizens in the process of receiving digital services. It is significant that today the mentioned initiative is enjoying great success and 68% of Estonian citizens rate the “bureaucrat” as positive and safe (e-Estonia, 2023).
Summary
The Estonian e-governance model is exemplary in the world in terms of taking into account the interests of citizens. Since gaining independence from the Soviet Union, thanks to the successful transformation of the public sector, Estonia has created a constantly evolving national digital landscape that provides citizens with simple, fast and effective means of accessing public services.
Resources used:
e-Estonia (2024). E-Governance Portal;
Organisation for Economic Co-Operation and Development (OECD) (2020). Seizing the Productive Potential of Digital Change in Estonia;
Office of the United Nations High Commissioner for Human Rights (OHCHR) (nd). Estonia's Constitution of 1992 with Amendments through 2015;
Education Estonia (2024). Tiger Leap;
E-Governance Academy (EGA) (1998). Principles of Estonian Information Policy;
EUR-Lex (2000). Estonia;
Invest in Estonia (2024). Estonia’s Advantageous Tax System Brings Companies to Grow Here;
National Interoperability Framework Observatory (NIFO). Estonia Shares its e-Governance Practices;
e-Estonia (2023). How did Estonia Carry Out the World’s First Mostly Online National Elections;
e-Estonia (2019). Data Economy in Estonia and Public-Private Collaboration;
Invest in Estonia (2024). e-Tax System;
Council of Europe (2024). Digital Health System – Estonia;
e-Estonia (2024). Justice & Public Safety;
Enterprise and Innovation Foundation (EISA) (2024). Estonian E-Residency Success Metrics are Impossible to Verify;
e-Estonia (2019). Data Embassy – the Digital Continuity of a State;
e-Estonia (2017). Estonian e-ID Card: Entering the Contactless World;
National Cyber Security Index (NCSI) (2024). Order = Rank;
Estonian Ministry of Economic Affairs and Communication (2021). Digital Agenda 2030;
e-Estonia (2023). #bürokratt.
Appendix 1. To illustrate the article. Author: Eiko Ojala
In the dynamic landscape of the digital economy, businesses increasingly recognize the need for digital transformation to remain competitive and meet ever-changing customer expectations. However, the road to digital transformation is full of challenges. We have been told many times that starting this process without a clear digital strategy can result in misaligned processes, untargeted use of resources, missed opportunities, and high failure rates. A strong digital strategy not only provides a roadmap for organizations but also develops a vision plan for digital transformation that aligns with the organization's overall goals. This ensures that all digital initiatives are targeted and deliver results.
According to the teleological doctrine, every object has its purpose - "telos" - the fulfillment of which determines its success, effectiveness, and significance. Applying Aristotle's concept of telos to the context of digital transformation means recognizing the importance of foresight in digital strategy development. This approach encourages organizations to anticipate future trends, technological advancements, and assess emerging market dynamics. This proactive stance allows them to strategically position themselves in the digital landscape, fostering resilience and adaptability in the face of uncertainty.
By adapting teleological principles to their digital strategy, organizations cultivate clarity and confidence in their transformation journey. They have the ability to make informed decisions, prioritize initiatives, and mobilize resources to succeed in the digital age. This philosophical foundation not only sets the strategic direction of the organization but also enables alignment of digital transformation goals with overall business objectives and ensures concerted action at all levels of the organization.
Thus, based on Aristotle's concept of telos, the essence of digital strategy goes beyond operational planning. It is a transformational effort that aligns the overall purpose of the organization with the goals of digital initiatives. That is, the digital strategy should be developed taking into account a clear vision of the desired future state of the organization. This approach helps organizations envision a future where digital capabilities not only improve operational efficiency but also create a significant impact in a rapidly changing digital ecosystem.
Assessing the digital landscape through market and competitor analysis is crucial to transforming a philosophical vision into an actionable strategy. This involves conducting market analysis to identify trends, consumer behavior, and competitor strategies. Noise Analysis is a valuable tool that provides a structured framework for identifying competitive advantages and areas for improvement.
By utilizing NOISE analysis, organizations can identify both internal and external factors that can influence their digital strategy. This approach focuses on needs, opportunities, improvements, strengths, and exceptions, allowing organizations to comprehensively assess their current state and identify actionable steps to capitalize on areas for improvement and strengths. This holistic view ensures that digital strategies align with real-world conditions and organizational capabilities, enabling targeted and effective initiatives.
The advantages of noise analysis include:
- Comprehensive overview of the business: It offers a 360-degree view, leveraging strengths to address immediate needs, improvements, and opportunities.
- Accurate prioritization of tasks: Identifying potential opportunities alongside urgent needs helps strategically allocate resources such as time, budget, and team members.
- Identification of competitive advantages: Recognizing what sets a company apart from its competitors helps capitalize on unique strengths.
- Increased efficiency: Comprehensive analytics uncover potential bottlenecks, enabling proactive strategies rather than reactive solutions.
Following a thorough understanding of the digital landscape, organizations can then develop detailed action plans to implement their digital strategy. These plans define the initiatives, projects, technologies, timelines, and milestones necessary to achieve strategic goals. Strategic planning methodologies like Hoshin Kanri ensure alignment between strategic goals and operational performance at all levels of the organization, promoting consistency and efficiency in digital transformation efforts.
The Hoshin Kanri model, also known as Policy Deployment, is a strategic planning process that aims to systematically implement and operationalize an organization's goals at all levels. This model harmonizes strategic goals with day-to-day operations by establishing clear goals, developing actionable plans to achieve them, and continuously revising and refining those plans. By adopting the Hoshin Kanri approach, organizations can consistently align their digital transformation initiatives with long-term strategic goals, facilitating coordinated action and efficient use of resources.
(Akao, 1991)[1]
Building a successful digital transformation requires a highly skilled and diverse team. This team should include digital leaders, digital transformation managers, IT experts, data analysts, and change managers, all bringing specialized expertise. The collaboration between these different roles is crucial for the strategic planning and execution of digital initiatives.
To assemble a team with these skills, organizations can adopt a resource-based approach (RBV). The RBV approach emphasizes the importance of leveraging unique skills and capabilities within an organization to gain a competitive advantage. By focusing on internal resources that are valuable, rare, inimitable, and non-substitutable (VRIN), organizations can establish a strong foundation for digital transformation.
(Barney, 2011)[2]
Utilizing the RBV approach allows organizations to strategically build a digital team that can effectively seize opportunities. This approach ensures that the team is not only capable of implementing digital strategies, but also sustaining them in the long run. The integration of diverse skills and perspectives fosters innovation, operational excellence, and continuous improvement.
In the digital age, a successful digital strategy relies on the integration of advanced technologies. These innovations are not only crucial for enhancing operational efficiency, but also for enabling personalized customer interactions and fostering innovation.
Therefore, technologies play a crucial role in the process of digital transformation. By analyzing vast amounts of data, organizations can make data-driven strategic decisions. This includes understanding consumer behavior, optimizing the supply chain, predicting market trends, and improving product development. As a result, organizations can identify opportunities and challenges early on and respond swiftly and effectively.
Automation and intelligent systems are revolutionizing the business landscape by simplifying complex processes, empowering decision-making, and driving innovation. These systems can analyze patterns, make predictions, and offer recommendations, significantly enhancing efficiency and accuracy across various business functions.
The concept of technological determinism highlights the transformative impact of technological advancements on business operations and strategic outcomes. It suggests that technological progress shapes societal structures and cultural values, leading to change that is often beyond the control of individual organizations. In the context of digital strategy, this means that adopting and integrating advanced technologies can modernize business processes, create new business models, and alter competitive dynamics
(Orlikowski, 2008)[3]
By embracing technological determinism, organizations recognize that technology is more than just a tool; it is a catalyst for transformation. This perspective encourages businesses to proactively adopt technology and constantly explore new developments to stay ahead of the game. It also emphasizes the need for a strategic approach to technology implementation, ensuring that technology investments align with overall business goals and deliver measurable results.
Agility refers to an organization's ability to quickly respond to unforeseen challenges and seize new opportunities. Taking this approach ensures that the digital strategy remains relevant and effective in the face of changing market dynamics, technological advancements, and competitive pressures
(Rigby, 2018)[4]
Continuous improvement is the foundation of an effective digital strategy. Regularly measuring digital initiatives against key performance indicators allows organizations to refine strategies, strengthen processes, and achieve better results. This approach, based on the Kaizen philosophy, promotes continuous improvement and innovation in products, services, and operations (Imai, 2012)[5]
Kaizen, which means "continuous improvement" in Japanese, is a philosophy that focuses on making small, incremental changes to increase efficiency and quality. In digital strategy, applying Kaizen principles means regularly reviewing and refining digital initiatives to ensure they align with organizational goals and market conditions. Such a focus on continuous improvement helps foster a culture of innovation and excellence that leads to long-term success in digital transformation efforts.
Implementing digital initiatives is a critical step in digital strategy. It not only boosts stakeholder engagement, but also establishes a strong foundation for long-term success. However, sustaining momentum beyond the implementation phase necessitates continuous innovation, evolution, and expansion of digital capabilities. This ensures that each subsequent phase of digital transformation delivers even greater value and impact.
Essentially, a well-crafted digital strategy serves as the foundation of an effective digital transformation. By seamlessly integrating market and competitor analysis, strategic planning, technology innovation, agility, and continuous improvement, organizations can effectively navigate the complex digital landscape. Utilizing comprehensive digital readiness assessments as a diagnostic tool ensures that an organization remains agile, responsive, and prepared to tackle future digital challenges and capitalize on emerging opportunities.
This comprehensive approach not only facilitates the achievement of transformational objectives but also establishes a solid groundwork for sustainable growth and competitiveness in the digital era. By adhering to these principles, a business can chart the appropriate course, attain long-term success, and position itself as an industry leader.
[1] Akao, Y. (1991). Hoshin Kanri: Policy Deployment for Successful TQM. Productivity Press.
[2] Barney, J. B., Ketchen, D. J., & Wright, M. (2011). The Future of Resource-Based Theory: Revitalization or Decline? Journal of Management, 37(5), 1299-1315.
[3] rlikowski, W. J., & Scott, S. V. (2008). Sociomateriality: Challenging the Separation of Technology, Work and Organization. The Academy of Management Annals, 2(1), 433-474.
[4] Rigby, D. K., Sutherland, J., & Noble, A. (2018). Agile at Scale. Harvard Business Review, 96(3), 88-96.
[5] Imai, M. (2012). Gemba Kaizen: A Commonsense Approach to a Continuous Improvement Strategy. McGraw Hill Professional.
For almost two months, our country has faced a serious political crisis. By initiating the so-called "Russian law," the government has openly opposed the Georgian people's desire to join the European family and democratic world. This decision was finalized on May 27. Growing up in the Soviet Union, I understand the realities of authoritarianism, restricted freedom, and inequality. Having witnessed and participated in the collapse of the Soviet Union and the building of a free Georgia, I deeply grasp the significance of democracy and European values. Based on experience, I can assess our country's risks and opportunities if the people's will does not prevail in this struggle. This is why all my thoughts and emotions now revolve around our country's fate and this political crisis.
The article addresses the challenges faced by organizational leaders during political crises. In light of current events, I aim to explore and answer several critical questions: What implications does a political crisis hold for leaders of private organizations? How can leaders manage stress effectively? How can they maintain or restore their leadership strength when they themselves are facing difficulties? And, how can they guide their team and organization through such turbulent times?
First, we must agree that a political crisis within a country is significantly different from other types of crises, such as an economic crisis or a war with an external enemy.
During an economic crisis, the rules of the business game change, market conditions shift, and the private sector's status quo is altered. Businesses need to recognize the symptoms of a crisis in time, quickly adapt to changes, think creatively, and take bold steps.
In a war, all the factors of an economic crisis are present, with the added threat to organizations and people's lives. Faced with an existential threat, all other threats pale in comparison. Fighting an external enemy stimulates patriotism, unity, and mutual support. In this situation, business interests, ambitions, and goals take a backseat, and leaders focus primarily on the survival of the people and the country.
A domestic political crisis is very different in nature. There may not be an immediate economic or existential threat, but it is a war of values. Values are the foundation of our "self," and our identity and belonging (to relatives, colleagues, friends, or country) are under attack. If the crisis is not overcome in time, there is a long-term risk of an economic crisis, loss of freedom, and existential danger. In such a situation, people may have to fight for survival not against an enemy but with a loved one, as we have seen in recent Georgian history.
Therefore, in my opinion, an internal political crisis is the most difficult situation for leaders. To navigate it, leaders must have great inner strength, caution, and courage.
Fear, stress, anger, irritation, emotional agitation, a complete lack of energy, difficulty focusing on work, a feeling of weakness, a sudden desire to fight, the desire to give up everything, a sense of responsibility and shame for one's weakness, calling out to oneself, taking action, and then again fear, stress, anger... Do these emotional roller coasters sound familiar? If so, I'd like to reassure you that this is a natural reaction to the challenges described above. Moreover, this emotional background is common to everyone, not just leaders.
Now imagine an organization where all employees and leaders are in this emotional state... It's a bleak scenario indeed. Every leader realizes that finding a way out of this situation is their responsibility, but the main question is how. How do we lead effectively in such chaos? How do we maintain our emotional equilibrium, clarity of thought, and resilience? More importantly, how can we harness the energy of stress within our organization and transform it into a force for positive change and growth?
Reflecting on these challenges, I've embarked on a personal quest to uncover strategies that enable me to fulfill my leadership duties with clarity and purpose each day. And now, I invite you to join me in this exploration. Let's share our insights, our triumphs, and even our struggles. Together, we can navigate these turbulent waters and emerge as transformational leaders, guiding our organizations through the storms towards calmer shores.
1. Accept Reality: If there is no problem - there is no solution. Therefore, not recognizing what is happening to us—both the current events in the country and our emotional stress—means leaving reality. The first step is to accept reality. We must correctly assess the scale of the crisis, the risks facing our organizations, and the degree of stress on ourselves and our team members. Acceptance of an unwelcome reality serves as the foundation for effective problem-solving.
2. Stay Informed: In times of crisis, staying informed about current developments is imperative for making well-informed and prompt decisions.
3. Prioritize Self-Care: To support others, the leader must be resourceful himself/herself. Leaders often make the critical mistake of focusing solely on solving problems during a crisis and forgetting to take care of themselves. A leader's physical, mental, and emotional well-being is directly related to their resourcefulness. Self-neglect weakens and exhausts the leader, diminishing their ability to make effective decisions. Even amidst high stress, dedicating time to self-care routines can provide surprising strength. For instance, incorporating daily exercise, meditation, or pursuing personal interests can significantly contribute to maintaining physical and emotional resilience.
4. Create A Supportive Environment: Leaders, like everyone else, experience fears, anxieties, and vulnerabilities. During times of crisis, it's essential to surround oneself with a supportive network of individuals who provide strength and energy. Whether it's family, friends, partners, or professional support like psychologists, drawing upon external sources of support is crucial for resilience.
5. Share Responsibility: Effective leadership entails sharing both power and responsibility with the team. Particularly in times of crisis, leaders should not bear the burden alone. Trusting the management team, fostering open discussions about risks and challenges, making collective decisions, delegating tasks, and jointly assuming responsibility for outcomes are vital strategies for navigating crises and managing stress.
6. Empathy and Effective Communication: Internal political conflict is one of the most difficult crises because society is divided and opposed to each other. We should not forget that an organization is also a community—a community united around one idea and goal. Consequently, the division that exists in society is likely to appear in the organization as well (especially in large organizations). If the responsibility for stabilizing society and the situation across the country falls on the government, within the organization, this responsibility rests with the leader and the management team. Therefore, the leader and management team must ensure effective communication within the organization, eliminate conflicts and restore or strengthen trust among employees. This can be achieved by bringing common interests to the fore and relegating differences to the background. For example, “We all want this country to develop”; “We all want more stability and security”; “We are all in this crisis together, and the consequences (both good and bad) will affect everyone”.
7. Leading by Example with Values-Based Decisions: In the context of internal political controversy and such an underdeveloped democracy as Georgia, publicly stating an opinion contrary to the government's position is risky. The leader of any private company is aware of this risk, which is not only related to the potential loss of business or income but also to the jobs and safety of employees. Therefore, leaders who do not share the ruling power's position on the "Law on the Transparency of the Influence of Foreign Powers" (the so-called Russian law) face a big dilemma. If they raise their voice and openly protest the government's decision, they risk their own and the organization's well-being. On the other hand, if they do not speak out or support the ruling force contrary to their beliefs, they lose self-respect and the trust of their employees, ultimately morally destroying the organization.
Advising leaders on this issue is challenging. However, one thing remains clear: leaders will have to make a choice and assume responsibility for the associated consequences