Why Digital Transformations Fail

Business transformation efforts historically have a poor track record of success, yet today, more and more companies are taking on transformation initiatives than ever before in the form of digital transformation.?

Research definitions for business or digital transformation and you will soon come to realize that no two definitions are the same. It would seem that we do not understand what taking on transformation is.

The chances of success for digital transformation efforts is low because the real cause of failure has gone unnoticed.

The word Transformation, by Oxford languages definition, is described as "a thorough or dramatic change in form or appearance."

Most business and digital transformations fail because they do not include changing the form of the organization.

Acronyms of form are: structure, arrangement, embodiment, bring into being, organize.

Any business transformation requires dramatic changes in organizational structure and the embodiment of new approaches by everyone associated with the organization.

To transform a business, you have to be willing to let go of everything you know, everything you have always done, and everything you expect based on past experience.?

You have to be willing to let it ALL GO.?

It is common for people to think “If we DO this, then we will HAVE that, then we will BE ______” (successful, happy, fill in the blank.)

The DO, HAVE, BE concept is out of order.

Transformation starts with changing who and what you are BEING. How you BE determines the outcome.

Start BEING the outcome you desire, and what to DO will naturally unfold, and with that you can HAVE a different outcome.?

To take on transformation, everyone in the company needs to BE willing to adopt new ways of working and that means letting go of all the outdated ways we manage people and model, structure, operate, and assess our organizations.?But when we believe something works, we will not let it go.

Transformations fail because companies layer new practices and technology on top of old, outdated practices and structures. Most approaches to transformation are like taking a mud pie and topping it with whipped cream - still not an impressive outcome.

We humans tend to stick with what we know, with what is ”normal”, with what is comfortable, even if a practice doesn’t serve us.

Take daylight savings for example. Have you ever wondered why daylight savings exists??

There are various reasons that have been presented in support of daylight savings:

• Farmers need it. That is just funny. I was raised by farmers. Farmers get up when the sun does (or the animals do) and they stop working when the sun sets (or when the animals are taken care of or the crop is off the field). Farmers do not care what time it is.
• It saves energy. Getting up in the morning when it's dark out does not save energy. Over the course of the day we are still using the same energy.
• For the railway system to better align timetables. Really?

Why do we endure the pain of one week - twice a year - of lowered productivity due to misaligned calendars and meetings? Of lost sleep? Of missed appointments? Because Daylight Savings has become a normal practice and the status quo falsely accepts it as a good practice.

This is how easy it is for practices to become tradition, even when they are painful and ineffective, and once practices become tradition the next generation usually adopts them without question. The Great Resignation is happening because a new generation is unwilling to take on antiquated business practices - they can more clearly see that these practices are ineffective and refuse to adopt them!

The natural tendency to accept the status quo has most folks believing that traditional business practices are just the way business is done and the myriad of problems that are caused by these practices are just “part of doing business.”?

Traditional business practices are simply unquestioned evolution.?

Ultimately, traditional business practices have never been proven to be effective, and in reality these practices create multitudes of problems - common problems EVERY organization on the planet is experiencing on some level. By following the status quo, you are negatively impacting the health of your organization, the people working in it, and the people doing business with you.

The impact of everyone following status quo business practices is prevalent in society:

• Leaders unnecessarily struggle with productivity, profitability, employee engagement and alignment, execution of strategies and goals, customer acquisition and retention, scalability, adaptability, flexibility, being innovative, and creating reliable cash flow.
• A large percentage of employees do not feel appreciated, nor do they enjoy their workplace. Depression and suicide related to passive aggressive work environments is rising.
• The Great Resignation is simply the result of (mostly younger) people challenging the status quo - recognizing the harm caused by old ways.
• Less than 50% of startups survive the 4-year mark - this is due to following “standard” business structures and practices and creating excessive burn rates.?
• Layoffs and re-organizations are commonplace today, with people losing their livelihoods due to leaders following the status quo.?
• The recent world-wide pandemic has surfaced what has been an ever-present need for organizations to be innovative, adaptable, and flexible and many businesses failed to adapt to changing times.

I have had the rare experience of being commissioned to bring positive change to organizations of every industry and size. Having noticed the same patterns and the same problems in every organization (be it a business, healthcare system, government entity, or educational institution) that I have worked for, worked with, or been a customer of, I chose to get to the root of these common problems.?

To create a new Future of Working Together we need to consider there may be far better options available to us. Just like Daylight Savings Time, we grew up with certain beliefs and assume there is a smart reason for what exists today.

Transformation happens when you are willing to challenge norms, and recognize and accept new approaches to promote evolution.

You cannot transform an organization by continuing to practice outdated business models and management approaches. You cannot keep hanging on to old ways and expect to produce new outcomes. The school of hard knocks as well as the top business schools are still teaching old ways. Even the top consultancies are missing the mark. The traditional practice of change management is bankrupt, for when you structure an organization to naturally deliver value, adapt easily and collaborate effectively, “management” of change is unnecessary.

Business Transformations fail because outdated ineffective organizational practices that have existed since the start of the industrial revolution (some since the dawn of man) still live on in our organizational DNA, even after much transformation effort has been expended.

In Part One of my book - What CEOs Need to Know: The #1 Reason Startups Fail and All Organizations Underperform - I reveal 14 common business practices and demonstrate the harm these practices cause to the organization and all people associated with it.?

I will present a series in this newsletter to address the 14 common business practices I have identified as key to transformation, and allow you to see how detrimental they really are, and what to do instead.

It all boils down to taking on a different organizational focus, structure, and mindset.

1. Focus: It is critical to define the desired end result and be able to have everyone in the organization embrace that vision. Focus not on money, but on purpose.
2. Structure: The traditional organizational chart needs to be retired. Department based hierarchies create myriads of problems. Structure to deliver on your purpose.
3. Mindset: Stop assigning the task of managing change and transformation to the HR department. Everyone needs to understand, accept and personify a collaborative and generous way of BEING.

Unraveling our belief systems is the start of Transformation!

Here are three ways you can begin to challenge status quo thinking NOW and save time and precious resources in the process:

1. Support the elimination of daylight savings time as a practice (sign the Eliminate Daylight Savings petition on change.org at https://chng.it/2c9dQS7pdZ)
2. Do not support the construction of new commercial real estate - let’s not waste any more resources on new buildings and parking lots - this is the digital age.?
3. Take a 3-minute Assessment to discover how close your business is to meeting its maximum potential (and therefore understand the odds of your being successful with transformation) at wildlysuccessfulenterprises.com.?
4. Let's talk! I want to hear about your business challenges and offer value. Book a 15-in call here https://calendly.com/3dvalue/insights-call.

Business transformation need not be difficult or expensive! You don't need to hire a team of consultants, you just need to know what to do to set your business up for success!

Different doesn't mean difficult.

Welcome to The Future of Working Together!

#thefutureofworkingtogether #digitaltransformation #businesstransformation