A portfolio of lessons learned part 3 – organisational culture

Digital technology has revolutionised the way businesses operate, making digital technology projects essential for staying competitive and innovative. However, these projects extend beyond new technologies.?They also hinge on the organisation's culture. In the part 3 of this series, find out how that culture can impact on project success, and what to do as a sponsor, executive or project manager.

This article continues the mini-series on the top 5 criteria for maximising project delivery performance.?In this article, and in no particular order, I cover item 3 – organisational culture.

One of the most important areas we work with our clients on, is in ensuring they successfully deliver on their digital technology improvements and transformation.?For us, that means helping them govern, lead, manage and assure their Program and Project delivery.

I alone have reviewed, advised or managed hundreds of projects, and across our team it is a multiple of that. In other words we see a lot of case studies close up and personal.

The previous risk management article highlighted the need for risk management in project delivery, how it defines the ability for the project to manage ahead, creating the future it needs to succeed, and being conscious of the predisposition of the organisation in relation to risk management, whether this is good, bad, or otherwise.?My article on an Organisations get the Project Outcomes it Deserves, reinforces that view.

And this is what leads to this next performance criteria, which is organisation culture.

The digital era has revolutionised the way businesses operate, making digital technology projects essential for organisations to stay competitive and innovative. However, the success of these projects extends beyond the implementation of new technologies and processes; it also hinges on the organisation's culture. A supportive and adaptive organisational culture can significantly impact the success of digital transformation initiatives, fostering collaboration, resilience, and innovation.?The corollary of that, is the opposite is also true.?A poor culture can resist collaboration, resilience, and innovation.

In this article, we will explore the role that organisational culture plays in the successful delivery of digital technology projects, its importance, how it differs from culture in normal operations, and how organisations and project managers and sponsors can lead projects to ensure that culture is taken into consideration.

The Importance of Organisational Culture in Digital Technology Projects

Organisational culture is the collection of shared values, beliefs, norms, and practices that shape the behaviour of employees within an organisation. A positive and supportive culture is crucial for the success of digital technology projects for several reasons.?A good and healthy culture:

A.????Fosters collaboration and teamwork, leading to better decision-making and problem-solving.

B.????Encourages innovation and creativity, enabling organisations to explore new ideas and solutions.

C.????Enhances employee engagement and commitment, which can improve productivity and project outcomes.

D.???Facilitates change management, as employees are more willing to embrace new technologies and processes.

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Organisational Culture in Digital Transformation Projects vs. Normal Operations

Although organisational culture is essential in all aspects of business operations, it takes on a unique significance in digital technology projects due to the following factors:

A.????Adaptability and Agility.?Digital projects require organisations to be more adaptable and agile than during normal operations. A culture that embraces change and encourages flexibility can help employees navigate the uncertainties associated with digital technology projects more effectively.

B.????Innovation and Experimentation.?Digital technology projects often involve exploring new technologies and approaches, which necessitates a culture that supports innovation and experimentation. Employees should feel comfortable taking risks, learning from failures, and iterating on ideas to drive successful transformation and improvement efforts.

C.????Collaboration and Cross-Functional Teams.?The success of digital technology projects often hinges on the collaboration of cross-functional teams with diverse skillsets. A culture that promotes collaboration, open communication, and shared goals can help break down silos and facilitate more effective teamwork.

D.???Continuous Learning.?Given the rapid pace of technological advancements, digital technology projects are helped by organisations that foster a culture of continuous learning. This is a capability that can be built over time, helping employees stay up-to-date with the latest tools, technologies, and best practices, ensuring the long-term success of digital technology initiatives.

Managing Digital Transformation Projects with Organisational Culture in Mind

To ensure the successful delivery of digital technology projects, organisations must take their culture into consideration throughout the project lifecycle, and particularly, project managers need to assess, interpret and adjust for that culture, and sponsors play a critical role in demonstrating it. Here are some strategies for effectively managing projects with organisational culture in mind:

A.????Assess the Current Culture.?Before embarking on a digital technology project, it's essential to assess the current organisational culture to understand and plan for success with that culture. This may involve reviewing previous surveys, and studies, if available.?This could include previous lessons learned and past project experiences.?You may be able to talk to people who have successfully navigated or currently navigate the existing culture and gain their insights.?And it will be important to be aware of the culture that you are seeing and experiencing to make adjustments as the project progresses.?

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B.????Develop a Clear Vision, Strategy and Objectives.?Having a clear vision, strategy and objectives for the digital technology project can help align the organisation's culture and project goals. Communicating the objectives of the project to all employees, and the project demonstrating its commitment to those objectives will emphasise the desired cultural values and behaviours that will support the initiative's success.?This demonstration of that alignment through the actions of the project team is critical.

C.????Demonstrate Leadership.?Leadership plays a crucial role in shaping organisational culture, and its involvement in digital technology projects is paramount. To the extent possible, help and encourage leaders at all levels of the organisation to demonstrate their commitment to the project's success, embodying the desired cultural values and behaviours.?Importantly, the project itself needs to lead in this area, as should the project sponsor/s.?

D.???Support Collaboration and Desired Behaviours.?Promote a collaborative environment by providing opportunities for cross-functional teams to work together on digital technology initiatives. ?To help employees and project team members embrace new technologies and processes, organisations can provide training and support. This grows the capabilities for the current project and is an investment in future project delivery also.?And recognising and rewarding team and employees who exhibit desired cultural values and behaviours can also help reinforce their importance.

E.????Monitor and Adjust.?As the digital technology project progresses, continuously monitor the organisation's culture, and the way the actions of the project land on the organisation.?Then make the necessary adjustments to ensure alignment with the project's goals.

Just like there is a current state and a future mapped for the technology, processes, data and other elements of a project, there can be a current state and future state to consider for organisational culture.?The balance for the project is living within the existing culture, while leading and demonstrating a culture that could be different but necessary for project success.?There is a need for stretch….to stretch the organisation to perform better…. but not stretch so far that you break away, isolating yourself and the team.?That outcome never works.

Conclusion

Organisational culture plays a critical role in the successful delivery of digital technology projects. By understanding the importance of culture in an organisation, and actively managing projects with culture in mind, organisations and project managers and sponsors can create an environment within the project and across the organisation that fosters collaboration, adaptability, and innovation.

Assessing the current culture, ensuring clarity of objectives, engaging leadership, and promoting, recognising and rewarding desired behaviours are just a few of the strategies that can help navigate the complex landscape of an organisation, to successfully deliver digital technology projects.

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