-By Sairam Bollapragada
Every Organization is wanting to go Digital but having its own share of challenges on route to the Digital Transformation. The struggle is not so much with technology which is a given. The challenge is with the DNA of the organization which has been in existence for more than 2 decades and the standard operating procedures (SOPs) have got ingrained into the constituents of the organization. Change is a hard reality and people naturally resist. The resistance is not just about the change, but is more about being compelled to accept the change pushing them off their comfort zones.
When we talk about digital transformation, it is about the journey straddled with the change in human behavior, the cultural change, the change in communication, the change in offerings, the change in skill-sets needed to service the digital client, the change in mindset and leadership, etc. Change happens one step at a time but here we need to bring in a phenomenal change across the organization- many steps at once, across the skills, the mindset, the ways in which we plan and execute, the way we design and create the solutions for the future, etc.
While everyone is aware of the benefits, lets refresh the salient 5 benefits here:
- 63% improved customer satisfaction
- 49% increased lead generation
- 75% lift in engagements
- 46% better client conversations
- 53% higher traffic
Some facts and figures to refresh the challenges to Digital transformation journey: While 35% of the companies are >80% digital, 68% are hoping to reach there in the next 5 years; while 39% of the challenges are in establishing the right operational and governance model, 39% are around evolving the company culture; as common drivers, 50% evolve around customer expectations, while 45% are due to rapidly changing competition in the market; and the list continues…
Let’s look at 5 Digital Strategy points (one should look for while stepping into the digital strategy):
- A Digital Strategy positioning Technology as a potential differentiator:
Digital is more about how fast an organization is able to adapt to the changing expectations of the market and prove you have the sustaining technological ability and agility to change at that speed. Hence a good and sound strategic plan to prepare the organization for the upcoming technological change that is not only vital but absolutely critical for survival. 80% of the companies report that their companies are getting processes and tools to expedite Digital roadmap, but actually only 46% aim to overhaul customer services. Digital is a space where Technology can both be a solution and a problem.
- The CxOs would need to lead from the front: The leaders must play a very critical role in this Change management with nothing less than absolute involvement to demonstrate their willingness to learn and drive the change themselves. The leaders must spend a lot of time with the digital strategy team to understand the context and lead the future blueprint from the front. Every part of the organization must be so synchronized in the blueprint, that it would become a seamless means of accomplishing the singular organizational Digital objective! Though 88% of companies report undergoing Digital transformation, actually only around 29% have mapped digital customer journey and know where they stand.
- Create an Organization structure that will be built for Speed, Agility and innovation: Decision making should be given top priority and right people should be moved to the right positions in order to create a very strong sustainable structure – challenging the traditional and the obvious challenging organization constituents and their conventional standard operating procedures. One should target to remove all the potential silos (read threat) not allowing the politics of the organization to hamper the future prospects and final successful end-goals. As an organization every client wants you to innovate uniquely and exclusively for them. Hence the need to pick the right (enabled)leaders who can take smart quick and compelling decisions, though hard, in a very timely fashion.
- Outside in view: For two plus decades now, the IT industry has been working in a community manner which has built very strong intertwining relationships between team members with various flavors of emotions, bonding, sentiments and strong linkages. However, the casualty of such organization is its being detrimental in the transformation. Hence to bring in required changes, professionals with immense unlearning and re-incarnation mindset are the need of the hour. Hiring/positioning creative consultants or even workforce, with innovative mindset is more critical than just the experience. This is more observed in larger entities where the larger and longer the team’s existence, the harder to resistance to change.
- Cultural change: The thinking of the new generation which has channeled so many startup entities around is a mix of forceful strategy, fearless thinking, innovation through Technology and creative market offerings. An organization marred with Legacy – non-digital businesses and annualized (operational based) economy, these traits will be hard to get from within. Resistance to adoption of new ideas, accepting the new market expectations, creating disrupting growth strategies, coupled with new disruptive generation thinking will double the challenge for the legacy entities – culture being the biggest challenger. Unfortunately, only 63% of the companies feel that culture is a major challenge while remaining 34% sort of agree.
With the complexities of cultural inertia, organizations are being compelled to get the Change Agents outside the organization. This trend has become inevitable when the leaders realize that there is a dearth of talent of such kind within the organization. In many places majority percentage of strategy looks at hiring innovative talent from outside where you can bring in an outside-in viewpoint with dispassionate recommendations of building a potential digital organization of the future. Many experts believe infusion of external talent can ignite the digital transformation much more easily. However, there should be heavy involvement of HR to ensure the moves are not abrasive in nature and the sensitivities are handled with utmost caution.
In addition to the above, the learning and training teams would also need to play a critical role by launching few initiatives like:
- Digital by Mentoring: Bring in mentoring of batches of folks under capable Digital leaders. These mentors should have a true capability with knowledge and ability to transform handful of associates.
- T-C-H: Training+Certification+Hands-on: mere training of employees may not be a great help but a good certification (internal or external) to gain confidence (self and others), added with hands-on experience in the digital labs would greatly benefit the individual and organization.
I would pause here for you to take a note and will come back with the metrics on Digital transformation of the Organizational Change Management in the next sequel of this….Till then, Happy Digital Transformation!!