Embracing Digital Adoption for Effective Change Management

A Reflection on McKinsey's Change Management Insights?

麦肯锡 's Original Article in 2015 by Dr. Boris Ewenstein , Wesley Smith , and Ashvin Sologar : https://www.mckinsey.com/featured-insights/leadership/changing-change-management ?

OUTLINE

1) The State of Change Management?

• Digital Transformations and DAPs: Revolutionizing Change Management?
• Lessons from Successful Digital Change Management Initiatives?
• The Change Management Evolution?

2) Analyzing Digital Change Management Failures ?

• Use cases include Target’s Canadian and Healthcare.gov’s rollouts?

3) The Role of Digital Adoption?

• Digital Transformation’s High Failure Rate?

4) The Efficacy of Digital Adoption?

• Success Stories?
• Process Changes & Completion Rates?

5) DAP Implementation Best Practices?

• A Digital Adoption Center of Excellence?

6) Lessons from Successful Digital Change Management Initiatives?

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The State of Change Management Since 2015?

McKinsey's article, "Changing Change Management," published in 2015, highlighted a significant gap in how change efforts were being managed, especially in a rapidly digitizing world. The article underscored that traditional change methodologies were no longer sufficient in the face of digital transformation. Since then, there has been a noticeable shift in how organizations approach change management, primarily driven by the advancement of digital tools like Digital Adoption Platforms (DAPs) .?

Change management is shifting from a process-driven model to a more human-centered approach in modern organizations. This means appealing to the needs of individuals and following a more flexible set of principles to adapt to circumstances.

Digital Transformation and DAPs: Revolutionizing and Enhancing Change Management?

• Just-in-Time Feedback: DAPs have revolutionized feedback mechanisms, offering real-time, actionable insights. This aligns with McKinsey’s emphasis on timely feedback, which has been crucial in enhancing performance and adjusting behaviors. For instance, companies have utilized DAPs to provide instant feedback to sales teams, leading to improved performance and customer engagement.? ?
• Personalization of Experience: Personalization, as highlighted by McKinsey, is vital in change management. DAPs enable a tailored experience, ensuring that each user’s interaction is relevant to their role and objectives. This approach has been instrumental in increasing user adoption rates and reducing resistance to new systems.? ?
• Sidestepping Hierarchy: Digital tools have facilitated more direct and efficient communication within organizations, as recommended by McKinsey. DAPs have enabled employees to bypass traditional hierarchical structures, fostering quicker decision-making and problem-solving.? ?
• Building Empathy and Community: DAPs contribute significantly to creating a sense of community and shared purpose, crucial elements identified by McKinsey. They offer platforms for collaboration and sharing, enhancing team spirit and collective responsibility in change initiatives.? ?
• Demonstrating Progress: Consistent with McKinsey's advice, DAPs excel in showing real-time progress and individual contributions, making the change process more transparent and inclusive. This visibility has been key in maintaining momentum and ensuring everyone is aligned with the change objectives.?

Lessons from Successful Digital Change Management Initiatives

• Leadership Involvement: As reflected in McKinsey’s insights, successful digital change initiatives require strong leadership commitment. Leaders must not only endorse the change but actively participate in the transformation process.?
• Employee Engagement: Engaging employees at all levels and making them active participants in the change process has been a critical factor for success. DAPs have facilitated this by providing platforms for feedback and involvement.?
• Continuous Learning and Support: Consistent with McKinsey’s findings, ongoing support and learning opportunities are vital. DAPs offer continuous learning modules and support, aiding in the smooth transition and adoption of new processes.?
• Embrace Agile Methodologies: Flexibility and responsiveness to feedback are key, with an emphasis on iterative processes that allow for continuous improvement.

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The Change Management Evolution Since 2015?

Since the publication of McKinsey's article, there has been a significant evolution in how enterprises implement change management tactics. The increasing use of digital adoption platforms demonstrates a move towards more dynamic, responsive, and user-centered approaches to change. These platforms have not only helped in implementing the methodologies suggested by McKinsey but have also provided a framework for continuous improvement and adaptation in a fast-evolving business environment.?

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Analyzing Digital Change Management Failures?

Target's Canadian Expansion Use Case?

Target's failed expansion into Canada is a well-known example of a major corporation facing significant challenges in its digital transformation, partly due to employee issues and system integration problems. This venture, which ended in 2015, is often cited as a case study of how complex digital transformations, especially those involving supply chain and inventory management systems, can go awry if not carefully managed.?

Key issues in Target's Canadian expansion included:?

• Rapid Expansion and System Overhaul: Target attempted a rapid rollout of new stores across Canada, along with the implementation of a completely new supply chain and inventory management system. This ambitious plan underestimated the complexities involved in such a large-scale operation.?
• Supply Chain and Inventory Management Failures: The new systems faced significant issues. They were plagued with glitches and were not properly adapted to the Canadian market's nuances. This led to problems like empty shelves and overstock of unsold items, significantly impacting store performance.?
• Employee Training and Adaptation: There were challenges in training and adapting the workforce to the new systems. Employees, unfamiliar with the new technology and processes, struggled to keep operations running smoothly. This lack of engagement and resistance to new systems further compounded the operational issues.?
• Cultural and Market Misalignment: Beyond just the technical and employee-related issues, Target's strategy did not align well with Canadian consumer expectations and market realities, leading to a broader disconnect with the target audience.?

Target's Canadian venture serves as a cautionary tale highlighting the importance of thorough planning, understanding local market dynamics, effective employee training and engagement, and the need for robust and adaptable digital systems in international expansions and large-scale digital transformations.?

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In the context of Target's Canadian expansion, a Digital Adoption Platform (DAP) could have played a crucial role in several areas, particularly in addressing the challenges related to system overhaul, supply chain and inventory management failures, and employee training and adaptation.

Here's how a DAP could have been beneficial:?

Rapid Expansion and System Overhaul:?

• Guided Onboarding: A DAP could have provided step-by-step guidance for employees in navigating and understanding the new supply chain and inventory management systems.?
• Change Management: With real-time assistance and interactive walkthroughs, a DAP could have helped in managing the change more effectively, making the transition smoother for employees at all levels.?

Supply Chain and Inventory Management Failures:?

• Error Reduction: By offering in-context help and prompts, a DAP could have reduced the likelihood of operational errors.?
• Real-time Support: In instances of system glitches or uncertainties, the DAP could have provided immediate troubleshooting guidance, minimizing disruption.?
• Adaptation to Market Nuances: A DAP with analytics capabilities could have gathered data on system usage patterns, potentially highlighting areas where the system was not aligned with the Canadian market's requirements.?

Employee Training and Adaptation:?

• Personalized Learning Paths: A DAP could have offered personalized training for each employee based on their role and interaction with the system, ensuring more effective learning.?
• Continuous Learning: As employees continued to use the new systems, the DAP could have provided ongoing support and learning, helping to reinforce knowledge and reduce resistance to new processes.?
• Feedback and Improvement: The feedback tools in a DAP could have allowed employees to report issues and provide insights, which could be used to improve the systems continuously.?

Cultural and Market Misalignment:?

• While a DAP primarily addresses system adoption and proficiency, it could indirectly assist in cultural and market alignment by ensuring that employees are well-equipped to handle the new systems. This proficiency could enable them to focus more on market-specific strategies and customer engagement.?

A Digital Adoption Platform could have significantly mitigated the challenges faced during Target's Canadian expansion by enhancing employee proficiency with new systems, providing real-time support and feedback, and aiding in smoother transition and adaptation processes. However, it's important to note that while DAPs are powerful tools for digital transformation, they are part of a broader strategy that should include market research, cultural adaptation, and strategic planning.?

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?Healthcare.gov Rollout Use Case?

A notable example highlighting the decline in productivity post-transformation due to inadequate training and support for new software is the experience of the U.S. government's rollout of the Healthcare.gov website in 2013. This case, while not a traditional corporate example, serves as a significant instance where the lack of effective training and support in a major digital transformation led to considerable operational and functional issues.?

Key aspects of the Healthcare.gov case include:?

• Complex Transformation: The Healthcare.gov project was a massive undertaking, aiming to provide a digital platform for Americans to browse and enroll in health insurance plans under the Affordable Care Act. This transformation involved complex software integration, involving multiple government agencies and private contractors.?
• Initial Technical Failures: Upon its launch, the website was plagued with technical issues, including long loading times, failed logins, and error messages. These problems were partly attributed to software glitches and the system being unable to handle high traffic volumes.?
• Lack of Adequate Training and Support: One of the critical issues was the lack of sufficient training and support for both end-users (the public) and administrators (government employees and contractors managing the system). Users found the platform difficult to navigate and understand, leading to a decline in productivity in terms of the number of successfully processed insurance enrollments.?
• The Role of a DAP: In this scenario, a Digital Adoption Platform (DAP) could have significantly aided the situation. A DAP could have provided real-time, in-application guidance and support to help users navigate the new system, clarified complex processes, and offered immediate assistance for common issues. For administrators, a DAP could have facilitated better understanding and management of the system, thereby improving its overall functionality and user experience.?

The Healthcare.gov example illustrates how critical adequate training and support are in digital transformation projects, especially those on a large scale and public facing. It demonstrates the potential impact of DAPs in mitigating such challenges by enhancing user adoption and operational efficiency.?

The Critical Role of Digital Adoption in Transforming Change Management?

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In the digital transformation landscape, McKinsey's observation that 70% of transformation projects fail – and Gartner's estimate of an 80% failure rate in scaling digital businesses by 2025 – presents a stark reality. However, this challenge is being met head-on by enterprises successfully leveraging Digital Adoption Platforms (DAPs).?

Delving into Digital Transformation’s High Failure Rate?

Failure often stems from underestimating change management's complexity. Digital transformation is not just about technology; it's a complete operational overhaul that requires adoption for success. McKinsey’s “Changing Change Management” article underscores this, emphasizing the need for a comprehensive approach involving strategy, people, processes, and technology.?

The Efficacy of Digital Adoption Platforms?

DAPs have become crucial in bridging the gap between new technology and effective usage. They provide guided workflows, in-app support, and valuable analytics, ensuring effective system utilization.?

Real Success Stories?

• Microsoft: Implementing a DAP for its Office 365 suite, Microsoft saw significant improvements in user adoption and productivity. The platform offered tailored learning paths, driving efficient usage across various departments.?
• SAP: SAP used a DAP to streamline its ERP software adoption. This led to improved user proficiency, reduced support costs, and a faster realization of ROI from their ERP investment.?

Enterprise DAPs can further drive productivity with cross-platform guided experiences, features, integrations, and process completion prompts. For example, Apty’s DAP can take you from one platform to another to complete a full process.?

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Process Changes & Completion Rates: Cross-Platform Challenges for Digital Change Management?

During business process updates and digital changes, it’s difficult to mitigate change resistance.?

• Reduction in Error Rates: “By adopting intelligent automation, organizations expect to achieve an average cost reduction of 31 per cent over the next three years.” – Deloitte?
• Time Savings: According to a report by Deloitte, organizations that use automation technologies can reduce processing time by 20–60% on average.?
• Employee Satisfaction: “Nearly 70 percent of workers say the biggest opportunity of automation lies in reducing time wasted on repetitive work.” – Smartsheet?
• Change Management Success Rates: “Prosci's Best Practices in Change Management research consistently shows that initiatives with excellent change management are seven times more likely to meet objectives than those with poor change management.” – Prosci?

Which repetitive tasks would workers most like to see automated or streamlined??

Picture this... Imagine you're an HR leader responsible for onboarding a new employee. Traditionally, this process involves multiple systems: an acquisition platform for hiring, an HRMS for employee data, Jira for setting up work tasks, an ITSM tool for tech needs, a finance app for payroll setup, and an L&D system for training. This can be overwhelming, both for you and the new hire.?

When it comes to the everyday nuances of change management, hiring and upskilling your team is critical to achieving the fastest time to value. ?

Since the advancement of Digital Adoption Platforms (DAPs), organizations can significantly streamline and accelerate the change management process. These platforms offer intuitive, interactive tools for training and support, directly addressing the learning curve associated with new software and systems. By integrating DAPs, businesses can enhance employee proficiency, reduce the time required to realize the full value of digital investments, and foster a more adaptable and tech-savvy workforce, which is crucial for thriving in today's fast-paced digital landscape.

For example –

With Apty’s DAP, you can initiate the onboarding process in the acquisition platform. As soon as you're done, the DAP automatically guides you to the HRMS to enter employee details. Next, it takes you to Jira to create necessary work tickets, then to the ITSM tool for organizing tech setup. Without missing a beat, you're guided to the finance application to sort out payroll details and, finally, to the L&D system to assign relevant training modules.?

Throughout this journey, you receive helpful prompts and guidance from the DAP, making the entire process smooth and error-free.?

What does this mean for leaders, departments, and top performers for productivity...

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Streamline Departmental Workflows with Cross-application Integration Capabilities of a DAP

Cross-application workflows in Digital Adoption Platforms (DAPs) provide a seamless experience for department leaders, allowing them to navigate through various enterprise software and applications efficiently. Here's how different leaders can benefit:?

• IT Leader: Starts by setting up user accounts in the identity management system, then moves to the ITSM platform to manage technical support tickets, and finally to the security software to ensure compliance and data safety, all while maintaining a seamless transition between these systems.?
• HR Leader: Begins in the recruiting software to finalize hiring, transitions to the HRMS for employee data entry and documentation, and then to benefits management software to ensure all employee benefits are accurately set up, simplifying complex tasks across multiple platforms.?
• Learning & Development (L&D) Leader: Initiates in the L&D platform to assess training needs, then switches to the content management system to curate specific learning materials, and finally to the employee performance tracking software to monitor progress and outcomes.?
• Sales Leader: Moves from the CRM to capture client interactions and sales data, to Jira for logging and managing customer-related issues or requests, and finally to the Supply Chain Management (SCM) system to oversee and finalize order processing, ensuring a cohesive workflow across customer management and fulfillment.?
• Procurement Leader: Starts in the procurement software to initiate purchasing requests, moves to the inventory management system to check stock levels and needs, and finally to the financial management system for budget tracking and approvals, making the procurement process more efficient and integrated.?

By leveraging cross-application workflows in DAPs, leaders in IT, HR, L&D, Sales, and Procurement can efficiently manage their tasks across different systems, ensuring a smoother and more cohesive process completion.?

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Implementing DAPs: Best Practices?

• Customized Experience: Providing tailored experiences for different user groups via DAPs ensures higher engagement.?
• Data-Driven Insights: Analytics from DAPs help identify usage patterns and areas needing further support.?
• Feedback Loops: Continual improvement using feedback within DAPs refines the digital transformation process.?
• Build a Digital Adoption or Digital Center of Excellence (CoE): Learn more about building a Digital Adoption CoE .?

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A Digital Adoption Center of Excellence for Digital Transformations & Change Management?

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A Digital Adoption Center of Excellence (CoE) specifically addresses the unique challenges and opportunities presented by digital adoption initiatives. The business case for establishing a Digital Adoption CoE includes:?

• Ensuring Successful Digital Transformation: The CoE provides focused leadership and expertise to guide digital adoption strategies, ensuring they align with and support broader digital transformation goals.?
• Maximizing ROI on Digital Investments: By promoting effective use and maximizing the potential of digital tools, the CoE helps the organization realize a higher return on investment from its digital assets.?
• Driving User Adoption and Proficiency: The CoE develops comprehensive training and support programs, directly impacting the speed and effectiveness of user adoption across various digital platforms.?

Regarding its composition, a Digital Adoption CoE should include:?

• Executive Sponsor: A senior leader who provides strategic direction and ensures alignment with organizational goals.?
• IT Representatives: Specialists in technology infrastructure and digital platforms to provide technical guidance.?
• Training and Development Professionals: To design and implement effective training programs.?
• Change Management Experts: To address the human aspects of digital adoption and manage resistance to change.?
• Representatives from Key Business Units: To ensure the CoE’s initiatives are relevant and beneficial to different parts of the organization.?
• Analytics and Data Experts: To track, measure, and report on the effectiveness of digital adoption initiatives.?
• Digital Adoption Expert: This expert specifically focuses on best practices, strategies, and methodologies for ensuring successful adoption of digital tools across the organization. ?

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The role of a digital adoption expert involves

• Identifying and addressing specific challenges in user engagement with digital platforms.?
• Providing insights into the latest trends and technologies in digital adoption.?
• Crafting tailored adoption strategies that align with both user needs and business objectives.?
• Including a Digital Adoption Expert ensures that the CoE remains at the forefront of effective digital adoption strategies, contributing specialized knowledge that complements the broader skills of the team.?

Including a diverse group from various organizational areas ensures the CoE addresses the multi-faceted aspects of digital adoption comprehensively.?

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Lessons from Successful Digital Change Management Initiatives?

Drawing from McKinsey's insights, successful initiatives often include:?

• Leadership Engagement: Top-level commitment is crucial for driving change.?
• Employee Involvement: Involving employees at all levels ensures buy-in and addresses resistance. Making learning accessible, streamlined, and easy reduces churn and poor experiences during these change initiatives.?
• Clear Communication: Transparent communication about the goals and benefits of the transformation is key.?
• Ongoing Support and Training: Continuous support and learning opportunities are essential for sustained change.?
• Digital Adoption Strategy: Implementing Digital Adoption Platforms effectively to guide, train, and support users through changes in technology, thereby enhancing user adoption and minimizing disruption to workflows.

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Conclusion?

Reflecting on McKinsey's insights and the subsequent advancements in digital transformation, it's evident that the successful implementation of change management tactics has been significantly bolstered by digital adoption platforms. These tools have enabled organizations to address the challenges of change management in a digital era more effectively, leading to higher success rates in transformation initiatives. As we move forward, the continuous evolution and integration of such digital tools like software adoption platforms will be paramount in shaping the future of change management and creating successful digital transformations.?