Why investing in people to help them grow is the key to your digital transformation’s success and winning the war for talent

Digital transformation is the business imperative of most, if not all, enterprises.?

The management consulting firm, McKinsey & Co., surveyed 1140 business executives, and "only 11% believe their current business model will be economically viable through 2023."

That statistic is astounding.?

As organizations embark on their digital transformation journey, they must reimagine how they create customer value.??

Ideally,? your CEO leads your digital transformation with a new vision for the business in partnership with CIOs, CHROS, and other senior leaders.

In his article, "What is digital transformation? A necessary disruption", Clint Boulton, senior writer with CIO magazine, writes the following about digital transformation:

"Digital transformation marks a rethinking of how an organization uses technology, people, and processes in pursuit of new business models and new revenue streams, driven by changes in customer expectations around products and services." He continues, "[i]deally led by the CEO in partnership with CIOs, CHROs, and other senior leaders, digital transformation requires cross-departmental collaboration in pairing business-focused philosophies with rapid application development models."

Cross-Departmental Collaboration

As technology is becoming part of the business strategy, CIO's are necessarily taking a broader leadership role.?

Paul Daugherty, Group Chief Executive for Technology and Chief Technology Officer at Accenture, calls for the inspirational CIO.

"The CIO needs to be about innovation. The "I" can be for inspiration. The CIO has to play a role around the inspiration and evangelism of technology and the education of the rest of the organization.

Like Alessandro Ventura, CIO and VP, Analytics and Business Services, CIOs lead successful digital transformation initiatives doing what Paul suggests. ?

Alessandro created a digital literacy program to help senior executives think differently about digital.?

He says,

"[p]eople need to understand and embrace the fact that the way they work is changing fast."?

Alessandro also includes their business partners in their enablement program.

Alessandro's approach is excellent because he's started his program with people.

Getting people moving in the right direction is the first step in transforming your organization.

The organizations that lead in innovation share organizational, leadership, and personal behaviors that enable them to learn faster, collaborate freely, and create more effectively.

Alessandro reiterates in his final point.

"There is a lot of technology available on the market that promises digital transformation. I receive around 15 emails a day saying, 'We're going to accelerate your digital transformation.' But no consultant or tool on the market can accelerate our digital transformation. We have to drive that change ourselves."

The Inevitable Resistance to Change

People are the key to digital transformation. Even with inspirational leadership, resistance to change remains a significant obstacle.

Global transformation and change expert Greg Satell often talks about how every change movement encounters resistance. People who actively oppose you will use every method available, no matter how devious, underhanded, or backstabbing to do so it.

The key to being successful is "understanding where the thresholds of resistance lie [so] that you can forge the connections you need to push through them," says Greg.

Building a movement for change will require harnessing the power of social connections, where influence is exerted and organizational power resides.

As the pace of change accelerates, it's mission-critical for digital transformation leaders to identify their spectrum of allies and forge a shared purpose and shared consciousness to power the movement forward.

Ultimately, it's your allies in the change, that will lead the movement forward and create the spark for your new digital business.

The partnership with the CHRO is most important for the CIO.?

Upskilling for Culture Transformation

The future of the organization's new digital business rests in the hands of the people.?

While the organization may acquire talent for a few key roles, the organization's digital transformation depends upon upskilling existing talent.?

Satya Nadella, CEO of Microsoft, identified the need for Microsoft to invest in its people seven years ago. The culture at Microsoft had to change from "know-it-all" to "learn-it-all" so that the people at Microsoft could build the thriving cloud-based business Microsoft runs today.?

Joe Whittinghill, corporate vice president, learning, talent, and insights at Microsoft, is the driving force behind that company's cultural transformation.

In an interview published in HR Executive, Joe shares his insights.

"The success of our cultural transformation starts with the success of our people," says Joe.

Joe says that Microsoft uses a portfolio of cutting-edge learning and development content, platforms, and services to create its culture.

Virtual Learning Experiences

Accelerating behavior change in your people is one thing that will accelerate your transformation.?

Joe says, "[n]ow more than ever, we're looking at bringing new ways of learning to our employees and ensuring that we continue to prioritize a learning culture by offering time and space for learning."

Microsoft has done an incredible job. Since Satya Nadella took over as Microsoft's CEO in 2014, its revenues have nearly doubled to $168 billion, and its market capitalization has increased 8-fold to roughly $2.5 trillion.?

How do you change the culture at a global organization with more than 170,000 employees worldwide??

Joe hints at Microsoft's formula for success.?

"We see virtual learning as an opportunity to continue to augment in-person learning, and in many ways, have the best of both worlds. Hybrid, also known as blended learning, will become as common as hybrid work."

Virtual learning that reinforces collaboration across geographic boundaries is mission-critical in the digital age. People must learn from one another in a social environment. That is how you create a culture of creativity that will drive digital transformation.

Investing in People

In 2021, thirty-eight million workers quit their jobs in the United States. ?

Many workers switched jobs to leave low-paying industries.

Millions more may have decided to remain on the sidelines instead of returning to the office.

The reasons are no doubt many.

The number of resignations is well above what it has been in the recent past and significantly more than what organizations have experienced historically.

While I don't have any hard evidence, I think it's safe to say that companies are in a panic for talent.

Organizations that invest in their people will retain them.?

In particular, CIOs, CHROs, and the learning and development team should focus on helping people grow by aligning career objectives with the organization's needs to drive its digital transformation forward.?The emphasis should be on development and retention rather than acquisition.

An employee experience focused on giving incentives and opportunities that help people learn, grow and provide for their families is the best investment the organization can make.?