Digital Transformation and the Influence of Organizational Culture

Rapid digital transformation became essential for many organizations to survive the pandemic. Digital transformation programs centered on remote working helped to alleviate economic pressure. It also helps eradicate various previously unheard-of difficulties with managing the workforce. Yet, progressing beyond these challenges, the situation has changed.

Organizations must focus on ensuring long-term success and development through digital transformation. Successful programs can bring many benefits that will drive business growth, such as more personalized customer engagement and more intelligent data usage, as well as introducing new methods of employee collaboration across the business.

Business leaders must put culture and people at the center of their efforts to make it possible. In a McKinsey Global digital strategy survey, more than 70% of respondents said their company’s digital transformation projects have yet to gain the momentum required to produce the desired results.

Businesses must focus on cultural change to overcome weak and fragmented transformation efforts and ensure long-term success.

Create lasting change

The degree of influence that change leaders have on the process is one of the biggest obstacles to the success of those efforts. According to a recent survey, more than 40% of businesses feel that their IT department needs more influence to plan and carry out organizational measures to implement digital transformation.

Digital transformation initiatives still move forward at a quick clip despite this worry. This implies that projects designed to succeed might face hurdles if the IT team implements hasty, last-minute changes. The effects become more evident as businesses move away from the pandemic’s remote working model.

Employees frequently faced difficulties due to the quick shift to remote work, which often had long-lasting effects. The solitary work mode, in particular, had a dual impact on individuals and businesses.

As a result of their inability to unwind after work, remote workers started to experience mental health problems. Thus, isolation can become easily normalized if remote work extends. This can hinder productivity and employee development, in addition to damaging the well-being of the workers.

Boosting people-centricity

When projects involving digital transformation fail to consider how people will react to and adopt technology adequately, they are likelier to have unanticipated adverse effects. Most projects involving digital transformation are entirely concerned with the type of technology being used, with the users of the technology being treated as a mere afterthought. The potential of digital transformation can only be realized if it is tailored to individual users and updated in real time.

Business leaders must focus their efforts and resources on fostering a people-centered corporate culture for this to become a top priority. Fundamentally, this is based on appreciating the worth of employees, but it goes far beyond that.

Businesses driven by a people-centric approach will benefit from many advantages. Notably, an open culture where employees feel a sense of belonging that transcends silos and become motivated. As a result, there will be greater cooperation around a common goal in which each employee is actively involved.

A thorough strategy considering every aspect of an employee’s experience is necessary for true people-centricity. One factor is ensuring employees have the tools and support to advance and develop. Still, it’s also critical to consider people when developing business strategies. Business practices and a supportive workplace culture should collaborate at all levels.

If business leaders focus on achieving this goal, they can design an environment that encourages successful internal work and paves the way for successful external collaboration. At its best, people-centricity considers contractors, collaborators, potential employees, and permanent internal employees. Business leaders who hold a people-centric perspective must also be future-focused.

A strategic change accompanies this cultural change. People-centric leaders can distinguish between digital transformation plans that will have a long-term positive impact and those that will become unworkable quickly.

Employees adopting a digital-first mindset are more likely to consider the best solutions for resolving problems. They can raise these concerns with their managers, who can then discuss the benefits and drawbacks of each option and choose the best one for the team. Being flexible and agile allows organizations to explore various options and choose the one that will benefit their employees the most.

As a result of this, the decision-making process is much faster, and more accurate, which allows for a more agile adaption of the best possible solutions.

Issues with Creating a Digital Culture

Culture and digital transformation go hand in hand; thoughtful processes are required to have the most significant impact. Here are a few essential factors that can impede the entire transformation process:

• Employee resistance to change: Employee resistance to change often plays a significant role in failed digital transformation efforts since this hurdle holds them back from setting and achieving new goals that drive organizational growth.
• Prioritizing infrastructure costs above all else: Many tools can make employees’ lives easier, from having an Omni channel presence to ensuring employees’ goals align with the organization’s. But they are expensive, and since this price can be seen beforehand, it dampens the optimism for transformation.
• Inconsistent allocation of resources: Employees need to understand how the new resources added to workflows will simplify their lives. Paying attention to employees’ issues can shed some light on the points managers, and leaders should emphasize.
• Being wary of automation: When done carelessly, automation can give employees the impression that machines are taking over their jobs. The managers are responsible for ensuring that the staff knows the value of automating routine tasks and how doing so can free up time for developing original ideas.

Accelerating Digital Transformation

A McKinsey study discovered that an organization’s culture requires planning and a mindset of creating alternatives to handle emergencies. Here are some ideas that can help accelerate digitalization:

• Defining the digital transformation strategy: Every organization has unique processes that necessitate a unique approach to digital transformation. Clearly defining the organization’s position concerning its objectives can help leaders comprehend how to achieve them. Having complete clarity on the requirements for transformation, also gives complete transparency to the teams, and allows them to see the big picture.
• Cultivate leadership qualities in employees: For the proper planning of work required for the transformation, leaders must structure the efforts and keep the teams in the loop. When the need for change percolates among the employees, identifying employees who can lead the team in certain areas is an excellent way to implement it. All levels of leadership and management can serve as mentors for their teams.
• Divert focus from the job role: An organization can foster an innovative culture by outlining the qualities required to manage the job and hiring people who fit that profile. This culture should be bold and try new methods, resources, or opportunities.
• Adjust the organizational structure: The company’s operating models, review processes, feedback mechanisms, etc., should all be carefully examined by leaders and managers to pinpoint any surface issues that employees may be experiencing. This can lead to more substantial process improvements and infrastructure modifications that are more likely to be embraced by most employees.

Organizations can aid their staff in concentrating on the areas of their work that can be streamlined by approaching digitalization as a cultural shift. Effective leadership is required to persuade employees of the benefits of change. When executed correctly, it gently pushes staff members to leave their comfort zone and find the gaps in existing procedures.

These problems can be resolved at the organizational level, and staff members can concentrate on improving the system in which they work.