Not paying attention to these factors can derail your transformation plans
Many companies don’t transform at the speed or scope they’d like. Despite diverting a lot of resources to a transformation effort, they wind up much less further along than they expected – or maybe even in the same place as when they started.
I think there are some definable reasons why these attempts don’t work out.
Not understanding the problem
There are organizations that have heard the term “Digital transformation,” and they know it’s cutting edge, so they get very excited and jump right in.
But what’s missing is the, “Why?” Transformation needs a purpose beyond just doing what the cool kids are doing. To be purposeful, you have to understand the problem you’re trying to solve and be directing efforts towards that. At a minimum you need to have a good understanding of how your business sits today and an idea of what your desired result is.
What are the gaps and pain points in your current systems and processes? It’s crucial to speak with the people who are using the system regularly, whether they’re consuming end results or actively working with (or supporting) the system. What’s easy to use, what’s not? What do they wish they could do that they can’t do now? What can they do now that they don’t value?
Gather your information from feedback forms, help tickets, forums, surveys, focus groups, as many different channels as you can. Don’t forget to check out informal networks like chat groups or social media if they exist. These are important sources of unfiltered and unbiased information.
Many times, needed improvements aren’t even technical issues. They’re matters of tweaking the process so that it works with the existing tools. If so, fix it fast and concentrate your energies on something else. But you will never know if you don’t ask – and listen.
Not understanding the scope
Another place where digital transformation runs into problems is not understanding the size of the job. Transformation is a process, and the process needs time and effort. The more things you want to change, the longer it will take, and the more work it will require.
Who will do the transformation work? You can move some of your current employees around, but you’ll probably be hiring or bringing in contract help, which costs money. And what about the technology needs? Even with cloud solutions, there will be an expense.
Add it up – and I recommend being conservative and including some padding. If you underestimate costs and need to come back to the table later for more, you may not get it.
And make sure you’re allowing sufficient time. How much work is there and how long will the project workforce take to accomplish it? Being overly optimistic is going to result in unrealistic timelines. When you start missing them, it’s going to hurt your credibility, and it’s going to hurt the morale of the people on the team. Make sure you’re talking to your experts and getting their input.
A final consideration – how much sticking power does your organization have? If you’re talking about a multiyear effort, will your company stay the course? Are you confident that leadership will continue to support your program even if the players change?
Not understanding the appetite
One more blocker to successful transformation is misjudging the organizational capacity and appetite for change. Digital transformation requires a lot more than technology. It’s a fundamental cultural change for an organization.
People don’t change without motivation, and if your people aren’t motivated the transition will not succeed. Make sure that employees understand the change, what is expected of them, what the results will be, and most importantly, how it will affect them personally.
Another factor to think about – are other things in your organization transitioning at the same time? People only have so much bandwidth for change. If too many things are happening at once, it may be beyond their abilities to cope. Do an organizational readiness analysis before you commit to making any changes.
If you find that you’re risking overload, something needs to give. Is there work that can be differed? Can big changes be broken down into more manageable pieces?
Want more? Check out my course on LinkedIn Learning, “Effectively Leading Digital Transformation,” for the extended story – a prime example of the digital transformation of training leading the digital transformation of business!