Why Traditional Change Management Fails in Digital Transformation

Change resistance has become a significant barrier to successful digital transformations, causing many initiatives to falter.

According to Forrester’s 2022 Business and Technology Services Survey, 21% of global services decision-makers identified the implementation of new processes and capabilities as a top challenge in digital transformation efforts.

The struggle to manage this resistance highlights a critical flaw: traditional change management methods simply aren't effective in the context of digital transformation.

Organizations have recognized the importance of change management for successful transformations, but Forrester’s research suggests that the conventional approaches are not up to the task.

To lead a successful digital transformation, leaders must embrace the following truths:

1. Change is Ongoing, Not a Destination: In digital transformation, there’s no end point where change ceases and stability begins. The very goal of digital transformation is to create an organization that is continually evolving—more adaptive, innovative, and resilient. Traditional change management, which aims to guide an organization from one stable state to another, falls short in this context. Leaders must realign incentives to reinforce new behaviors rather than clinging to outdated practices.

2. Transformation Comes with Winners and Losers: It's natural to avoid delivering difficult messages, but effective leadership requires honesty. Employees are acutely aware that not everyone benefits from transformation; some skills become obsolete, team structures shift, and the possibility of layoffs looms. When leaders focus solely on the positive aspects of change and ignore the potential downsides, they lose trust and credibility with their workforce.

3. Incentives Must Align with New Behaviors: Organizations develop ingrained habits—ways of doing things that are reinforced by performance measurements and incentives. If these incentives are not adjusted to support new behaviors, meaningful change is unlikely to occur. Success is more attainable when organizations reward and incentivize the behaviors they want to see.

4. Overcommunication Can Be Detrimental: The old adage that “you can’t overcommunicate” during change is misguided. Many change management strategies rely on overwhelming employees with repetitive messages, hoping something will stick. However, the most successful leaders prioritize listening over talking, tailoring their communication to address the specific concerns they've identified through active listening.

5. Middle Management is Key: Senior executive support is crucial, but it’s not enough on its own. Middle managers are essential in driving and contextualizing change within their teams. Transformation leaders need to secure buy-in from these managers and equip them with the necessary tools and information to lead their teams effectively through the transition.

Change Management as a Core Skill, Not a Challenge

Leaders who recognize these challenges approach change management with a fundamentally different mindset. They prioritize listening, involve all stakeholders in shaping the future, and build credibility through transparent communication.

They understand that fostering trust requires honesty, even when delivering difficult messages, and they adjust incentives to encourage the behaviors that will drive successful transformation.

Crucially, these leaders don’t see change as a problem to be managed but as a vital skill that organizations must develop to thrive in an increasingly unpredictable world.

They establish a continuous feedback loop that assesses, addresses, measures, and refines the organization's approach to change, fostering a culture that embraces transformation with confidence.?

About Me: Jason Ledbetter is a Life long Classic Monster's fan, Digital Upskilling Scrum Master and Network Information Security practitioner with PwC experienced in Artificial Intelligence, Go-to-Market Products & Technology, Gen AI, Controls, Change Management, Compliance, Risk Management & Mitigation Planning, Scrum, Agile, Network Information Security, and Program - Project Management. He is also pursuing a PhD in Computer Science with a focus on Artificial Intelligence (AI) and Machine Learning (ML).

Connect with me on www.dhirubhai.net/in/jasondledbetter to discuss all things Digital Change Management.