Since 1999, Bill has spearheaded the development of Parsec’s manufacturing operations management (MOM) platform, TrakSYS.
Technology companies have long helped their clients digitalize their businesses and embrace modern tools, but the pandemic served as a wake-up call for many companies that hadn’t sufficiently prioritized these efforts.
When digital transformation succeeds, the result tends to be the same regardless of the company: a connected, productive organization that leverages advanced technology to achieve its goals and drive lasting success. A failed digital transformation, on the other hand, can lead to any number (or combination) of ramifications: unhappy employees, diminished productivity, inefficient processes, lost business or a dulled competitive edge.
How can companies, regardless of industry, ensure their digital transformation efforts are successful? It takes more than just the low-hanging fruit of migrating to the cloud, installing new software and replacing analog with digital. It might seem counterintuitive, but the key to success for any organization’s digital transformation is its people.
Change Management Is The Crux Of Digital Transformation
People are at the heart of any organization; the success of a digital transformation effort will ride squarely on the team’s shoulders. Beyond purchasing a Slack license and adopting cloud-based file storage, digital transformation requires a holistic culture shift.
Tech leaders must guide their teams through the entire transformation process, help them learn about the new tools and explain why the end result will be worth any short-term struggle. This coaching includes both formal and informal training on new software and processes, especially those that will be used most heavily. Training should be offered at regular intervals to account for both new hires and any updates or new features. Without this hands-on assistance, business leaders won’t see the productivity and efficiency results they would otherwise expect from a digitalization initiative.
In my experience, companies with the most digital transformation success are those who appoint dedicated staff members to the change management process. These associates are the first to learn about new tools and technology; they master all new processes and workflows and serve as dedicated resources who are there for the long haul. If hired internally, these “change managers” will also bring interpersonal benefits since they’re already familiar with the company, its teams and its culture. For team members who may feel overwhelmed by the technological change, it can be helpful to have a familiar face guiding them along the way.
Reskilled Employees Won’t Feel Left Behind
Most digital transformations involve automating manual processes, which in turn leads to a change in some employees’ responsibilities. Leaders should work closely with employees who may be impacted by these changes to help them understand how their roles may be shifting. Time and resources must be allocated toward upskilling and re-skilling as needed. With one substantial organizational shift already underway, the last thing businesses need is a mass exodus of employees who no longer feel valued or appreciated. Preserving institutional knowledge, talent and support is crucial during any digital transformation.
Retention Is More Important Than Ever
If, despite their best efforts, leaders find that attrition is still occurring amid a digital transformation, they should take steps to determine why. Are team members leaving due to more attractive opportunities, or are there points of friction with company culture? Have they been given the resources and support they need to succeed? Do they feel the company is “moving on” without them?
One of the primary goals of embarking on a digital transformation is to attain new levels of efficiency. But no matter how advanced new technology is, it will be incredibly difficult to maintain efficiency with a volatile workforce and a brittle corporate culture. Leaders must ensure their workplace is resilient enough to withstand the pressures it may face during digital transformation.
Beyond technical training on new tools and processes, leaders must dedicate time to soliciting and addressing employee feedback. Are there workflow bottlenecks, and at what stage do they happen? Are communication breakdowns a regular occurrence? Overall efficiency goes beyond technology itself; teams must have all they need to operate, communicate and solve problems with ease.
If this sounds like a lot of work, that’s because it is. Digital transformation must be treated like a continuous, people-first process. Leaders must regularly reassess their organization’s tech stack and the ways their teams interact with it. Frequent pain points cannot be thought of as “the price we pay” for using a particular tool or technology. Leaders should work through these with their teams; if left unchecked, these pain points can accumulate and corrode over time into deep job dissatisfaction.
Technology Alone Can’t Get You Across The Finish Line
There is much more to digital transformation than meets the eye. Yes, cloud file-sharing and automation will indeed make a tremendous difference in an organization’s productivity and efficiency—and these initiatives should be undertaken thoughtfully and thoroughly. However, to effect lasting change, leaders must focus on the people.
Even the most advanced technology won’t deliver on ROI if the people charged with wielding it are untrained, unsupported or frustrated. To make the most of a digital transformation, businesses must help their people get to where they need to be. Through both overt communications and lead-by-example signals, businesses must prioritize employee experience to drive lasting success.
Ultimately, business leaders can tell their employees to use new technology ad nauseam, but effective change isn’t possible unless teams are guided with a helping hand. By treating their people as the top priority during digital transformations, leaders can maintain their organization’s competitive edge and drive lasting success.
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