The Human Factor in Digitalization – A Change-Oriented Culture
Johan Elsner
Strategist transforming chaos into order by aligning tech with core business goals
Digitalization creates vast opportunities, and whether we talk about automation, AI, cloud solutions, or new types of software, there is an expectation that technology will make us more efficient, innovative, and competitive. Yet, we see many digital initiatives fail. Often, the issue is not the technology itself but how people within the organization relate to it. The greatest challenge is therefore rarely the technical solutions but rather the behavioral changes, attitudes, and expectations that must be in place for the transformation to truly yield results.
But... we want results...
Getting people on board the journey requires fostering a culture where change is seen as natural and valuable. Two organizations can implement the same tool or face the same market challenges, yet one achieves outstanding results while the other sees little to no impact. The explanation often lies in the perception of learning, development, and collaboration. In a culture characterized by curiosity and openness, there is a greater capacity to absorb and adapt to change. Employees who feel included and understand the purpose behind changes are more likely to invest time and energy in adapting to the new situation.
The more complex the change, the greater the need for cross-functional collaboration, knowledge sharing, and mutual support during the transition. A change-oriented culture is characterized by people being ready to experiment and not viewing mistakes as setbacks but as a natural part of the learning process. This experimental mindset is encouraged when the organization fosters a safe environment and when leadership demonstrates commitment and understanding of the change process.
What human aspects need to be addressed?
Regardless of how promising the expected results of a change may be, resistance will always arise, especially when it affects work processes or demands new skills. Resistance is often rooted in fear or skepticism—concerns that technology may replace jobs or doubts about one’s ability to meet new requirements. In such cases, it becomes even more crucial to communicate clearly why the change is happening and what it aims to achieve. When employees have a clear understanding of the benefits, not only for the organization but also for themselves, they are more likely to embrace the change.
Another key factor is involving employees in the transformation. By allowing them to test the tools early, provide feedback, and contribute their own ideas, they become co-owners of the change and are more likely to take responsibility for its success. To cultivate a change-oriented culture, continuous competence development is essential. Given the rapid pace of technological change, organizations must ensure that knowledge is continuously updated. This may involve formal training, but more importantly, it means enabling knowledge-sharing and learning while work is being performed.
Who is responsible for creating these conditions?
As discussed in previous articles, leadership plays a crucial role in fostering a change-oriented culture. By ensuring psychological safety for employees and encouraging risk-taking and innovation, senior management can send a clear message that new ideas and bold experimentation are valued. Rewards and recognition should not only be given to those who adhere to traditional metrics and safe strategies but also to those who seek to break new ground. It is within such an encouraging environment that real change occurs—where employees feel empowered to use their creativity and are allowed to make mistakes without fear of punishment.
To reduce resistance and build engagement, it is also necessary to track the actual effects of new ways of working. When employees see concrete examples of how solutions have simplified processes or improved customer satisfaction, a positive momentum is created. It becomes clear that the tools are not being imposed from above but have real value in daily work. Additionally, if leadership is attentive and willing to adjust processes and systems based on feedback, it demonstrates that people’s needs are truly being prioritized.
Isn't budgeting for "change management" in the project enough?
As indicated above, a thriving change culture is built on integrating learning into daily work. When knowledge is freely shared, problems are openly discussed, and employees are encouraged to take initiative in improving work methods, conditions are created for an organization that lives and breathes innovation. An effective approach is to provide time for collective problem-solving or mentorship, where experienced colleagues support newer employees. At the same time, it is essential to create an environment where employees feel comfortable asking for help and discussing what isn’t working—only then can the right adjustments and interventions be made.
It is also critical to clearly demonstrate how new knowledge contributes to personal development. When employees see that gaining new skills opens up more opportunities, both within the company and in the job market, their motivation to learn increases. Therefore, leadership must communicate how these new competencies not only benefit the company but also strengthen employees' professional futures.
A successful transformation journey is not just about technology. It is about building a culture where people feel included, motivated, and equipped to embrace new ways of working. Achieving this requires clear communication about the purpose of change, active involvement in the process, systematic learning, and leadership that fosters a safe environment for experimentation and innovation. When people in the organization feel that they are active participants in the journey—not just passive recipients of new instructions—the likelihood increases that new technology will be utilized in ways that make a real difference.
In the end, it is only when technology meets curious, collaborative, and continuously learning people that change truly takes root. That is when it becomes a driving force for competitiveness, job satisfaction, and ongoing development that benefits the entire organization.
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V?ster?s 2024-01-07
(Translated using ChatGPT 2025-02-16)
Other articles in the series "Prerequisites of Digitalization"
Article 10 - Ethical and Responsible Digitalization: A Necessary Reflection in the Age of Technology
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