A Management Team for The Time of Digitalization
Digitalization and AI are rapidly reshaping how value is created and how work is organized. That imposes new minimum requirements on knowledge and ways of working for everyone in a management team. This article captures the essentials: why change is necessary, how digitalization differs from digital transformation, and the four competence domains that define the competent management team going forward.
Why now?
Technology has always driven productivity and competitiveness. Consequently, people in leadership positions have always needed to add new competencies to support the technological advances required for their organizations to stay relevant. In the 1800s it was the steam engine, later electricity. Today, software and machines are sufficiently intelligent and accessible that an increasing share of practical and cognitive tasks can be automated. Organizations that delay risk higher costs, weaker service experiences, and declining attractiveness—both relative to competitors and in the eyes of citizens.
For the public sector, competition is not the primary challenge. Instead, productivity gains are a social-sustainability issue: without them, people will lose confidence in society and suffer in very practical ways. In short, there is no alternative but to explore new technology now. To do that, management teams need a blend of skills—some timeless, others especially relevant today.
Four competence domains for the competent management team
1) Technological literacy – understand what is possible now and soon.
Build a shared, basic understanding of what AI, machine learning, and generative AI can—and cannot—do, especially in your domain. You rarely need to code, but you do need a common vocabulary and mental map of the tech. That improves discussion quality, decision‑making, and the ability to inspire employees—particularly in cultures that meet technology with caution.
2) Data‑driven ways of working – make insights measurable and recurring.
As more processes leave digital traces, data becomes a new “sense” for perceiving reality. Start by inventorying existing data, define meaningful metrics, and establish simple, regular follow‑up. The goal isn’t to measure everything—but to enable better decisions, faster learning, and clearer priorities
3) Innovation management – methodology, not luck.
Digitalization and sustainability ambitions require turning ideas into implemented reality. Research shows that organizations working systematically with innovation become far more successful over time. A management team should understand core processes (from idea and prototype to scaling), foster a test‑and‑learn culture, and allocate capacity to run multiple tracks in parallel.
4) Leading more self‑organizing teams – increase speed, ownership, and collective intelligence.
Transformation is more expedition than package tour. The organization must explore several paths while operations keep running. Heavy central micro‑management becomes a bottleneck that dampens initiative and collective intelligence. Self‑organizing teams—even with very light formal leadership—can deliver strong effects but require:
- Clear goals in an anchored strategy (where we’re going, not exactly how), and
- A clear culture with norms for mandate, transparency, and collaboration.
Questions for the next leadership meeting
- Which concrete customer/citizen value can we improve fastest with AI in the next 6–9 months?
- Which three data flows would best support decisions if visible every week?
- Where is central control a bottleneck today—and how do we test self‑organization there?
- What innovation process do we use – if any? How many ideas are in test right now?
- What minimum level of tech understanding should every leader reach—and how will we assess it?
A beginner's mind-set is a great place to start
Tomorrow’s competent management team is curious, data-driven, methodical about innovation, and comfortable letting go of micromanagement. The courage to prioritize, a willingness to learn, and the ability to apply technology are the keys to higher productivity, better services, and an organization that delivers today while learning faster than the world around it. That’s easier said than done. If your organization is far from where it needs to be, the management team will benefit greatly from adopting a beginner’s mindset. Add psychological safety, and your management team can bring its full capabilities to bear.