A recent survey of directors, CEO’s and senior executives concluded that the risk associated with Digital Transformation (TD) was the main concern of this group in 2019 *. However, about 70% of all Digital Transformation (DT) initiatives did not achieve the proposed objectives, so it is estimated that of the $ 1.3 Trillion ($ 1.300 billion) spent last year, $ 900 Billion was, in the absence of a better word, wasted .
Why are some digital transformation efforts successful and the vast majority failing?
Digital transformation and acceleration has as its main standard the increase in efficiency and proximity to the customer, therefore, it will work in the same way that anabolic steroids work with athletes: it will amplify and accelerate everything, and may even negatively expose the existing gaps if not there is adequate planning and monitoring.
If people within organizations do not have the necessary monitoring, so that they have the right mentality to change, and current practices have flaws and / or weaknesses, these will be amplified, accelerated and consequently exposed, with the repercussions associated with this type of exposure. Often, new technologies may fail to improve organizational productivity – not because of fundamental flaws in the technology, but because intrinsic internal knowledge has been overlooked. Especially in relation to larger companies, typically when a digital transformation plan starts, one of the first orders of business (if not the first), consists of hiring the services of a small army of external consultants, who in the vast majority sometimes it implements a “one size fits all” approach, under the banner of so famous good practices.
However, these consultants do not have an in-depth knowledge of the day-to-day lives of companies, the difficulties and challenges that people face in their daily lives, that is, they may even have a general knowledge of the problem to be solved, but that is not the case. it is enough.
The recommended approach to digital transformation challenges in organizations is, still in its initial phase, relying on insiders: employees who have an intimate knowledge of what works and what doesn’t in their daily tasks, asking and listening to the opinion about potential difficulties they feel and propose technological leverage to implement. Thus, we guarantee not only that the focus is on solving constraints to real productivity, but also that we can increase the receptivity to change on the part of those who will actually feel and use the new tools that are identified and implemented.
The fear of being replaced is real!
When people within an organization feel that this transformation can threaten their jobs, whether consciously or unconsciously, they can resist change. If it is not effective, management will eventually abandon its implementation and their jobs will be safe (at least this is the line of thought). It is imperative that leaders take into account that this thought exists: that fear on the part of people is there and is very real.
In order to minimize this mindset, it must be communicated in a clear and continuous manner, that the digital transformation processes are an opportunity for people to update knowledge, increase their value in organizations and be able to meet with anyone else in the market current and future work that, as we know, is increasingly competitive.
There is no formula that works for all organizations, because like people, each case has its own unique points and, from experience, I venture to say that each organization has its very strong and unique personality, which still holds plus the concept that there are no formats that apply to all companies.
For the transformation to result in its maximum exponent, it is necessary that the leaders, before starting the process, stop to think, breathe and focus on the basics: change the mentality of the people who collaborate in the organization, look at the existing culture and organizational processes, so that it is possible to find the right tools and how to use them in the most optimized way.
Taking into account people, their “pains”, ideas and suggestions, their feeling is that the digital transformation and vision of the organization’s future was driven by them, offering a feeling of personal appreciation, ownership and responsibility to the detriment from fear and resistance to change.
*Source: Blog WSJ