Leadership Insights: How to Guide Teams Through Transformation in the Era of Tech

Transforming businesses at any scale is a complex challenge that requires careful planning and execution. In a recent conversation with Paul Pickman , an experienced leader in business change and transformation, we explored essential strategies to help leaders navigate transformations and prioritise their teams in today's technology-driven world.

Paul brings over 20 years of experience guiding businesses through key changes across the business lifecycle, collaborating with stakeholders at all levels, including C-level and board. He has built and led high performing transformation teams and his expertise has helped numerous businesses navigate complex changes, from implementing new Target Operating Models, digital platforms, and business intelligence solutions, to driving essential operational and cultural shifts as companies grow.

Understanding Business Transformations in 2024

Many associate transformation with projects that are large and complex, but ‘transformation’ can also be achieved through targeted and incremental changes within a business. For example, a company might have a statistically diverse workforce, but is it fully leveraging this diversity? Implementing a cultural dashboard can help identify areas for improvement, ensuring the company maximises its talent and capabilities.

Transformation is not exclusive to large corporations; it is often a crucial undertaking for organisations of all sizes as they adapt to challenges, such as changing customer and market expectations, or seek to drive efficiencies in the way they work. The key is understanding the complexity of the changes needed and the desired outcomes. Even minor adjustments can become challenging or costly if objectives are not clear and not carefully planned, especially the impact of changes to existing systems and processes or how people work and what skills they will need.

In today’s fast-changing environment, with shifting customer expectations and demands for quick results, companies often struggle to prioritise and implement changes due to limited time and resources. However, my experience has shown that successful transformations are invariably anchored by strong leadership and top-level support, which are always crucial for sustainable success.

What challenges does technology pose for business change?

We are increasingly familiar with the rise of machine learning, artificial intelligence (AI), and augmented reality (AR), and how this is revolutionising how businesses and consumers interact.?Despite the allure of new technologies, organisations shouldn’t rush to adopt the latest tech just because it is available.

Driving transformative change in a tech-driven era is expensive and comes with risk. What is cutting-edge today may be outdated by the time it's fully implemented. Businesses should always carefully assess specific problems they are looking to solve, and it might be right to consider changes to their existing systems before investing in new technologies. Transformation initiatives should always be guided by a simple question: “Why are you doing this?”. If this question can't be answered clearly, reconsideration is most likely necessary.

How can the rise of AI help businesses and their teams?

Most employees want to do more challenging work, so utilising AI to automate mundane or administrative tasks will allow teams to deepen their expertise, enhancing service delivery and overall job satisfaction.? To do this effectively, organisations must always consider how the introduction of new or enhanced technology will be delivered alongside effective skills training. Also, as technology evolves, it is crucial to ensure that a portion of your team is dedicated to understanding how the technology works and how it ‘learns’ and evolves.? For some organisations who are heavily dependent on technology, it is important that they have a ‘foresight’ team, staying abreast of tech trends and what might be needed ‘tomorrow’. This will ensure that your business is well equipped to introduce new tech as well as maintain it.

What essential leadership qualities are needed for effective change management?

Successful leaders will have a blend of skills to drive change effectively.? Arguably the most important is having a clear vision and purpose for the change. Clarity helps them answer the central “so what” question, ensuring each initiative has a clear rationale and aligns with the organisation’s broader goals.

Strong communication skills are also essential. Transparent communication reduces uncertainty and fear among stakeholders, which is often the biggest reason behind resistance to change within an organisation. Leaders must be adept at explaining how changes will affect individual roles and reassure that proper training and support will be available.

?Adaptability and openness to feedback are also crucial. Leadership teams must be willing to listen to objections and adjust plans if they reveal unconsidered aspects and potential improvements. This flexibility demonstrates their commitment to the team’s well-being and the success of the project.

?Finally, effective leaders also need strong engagement skills. They must understand the importance of involving the team in the transformation process and balance engagement with decisive action to navigate transformation complexities.

How can businesses address ESG concerns when it comes to tech transformations?

In today’s business world, you’re rarely going to drive a self-contained change, and businesses must recognise this from the outset. ‘Real’ transformation is never easy, so it's important to speak to the right people and seek input accordingly.

As AI and data technologies advance, they bring with them increased risks, particularly in the areas of cyber and information security. Businesses will need to consider these challenges when introducing new tech by seeking advice from experts in the field or incorporating them into their transformation teams. This proactive approach helps safeguard against potential breaches and data mishandling.

Also, as data analytics and predictive AI become integral to business strategies, it’s crucial to train teams to identify and address biases that come from historical data. This is essential to prevent unintentional discrimination against certain segments of their customer base or wider society.

Given that our understanding of AI is still evolving, businesses must remain cautious, as its risks and benefits aren’t fully known. However, history shows that societies have successfully navigated technological shifts before. With appropriate regulations, seeking diverse perspectives, and committing to ethical standards, businesses can utilise AI and other emerging technologies for positive impact.

What advice would you give to leaders embarking on a transformation?

Be clear about why and what you are trying to achieve, and communicate this as openly as possible. Don’t accept setbacks and problems as a reason not to do but as a challenge to overcome. In my experience, there is always a solution to every difficulty, and while they may not always be palatable, it is about a willingness to adapt and say, “I’m not sure what to do about this; what do you think?”. It’s about engaging with each other. When you don’t have the answer, someone else might, and having a collaborative cultural environment will encourage that.