Enterprise transformation it requires technology to work and people to embrace it. The “people” component of enterprise transformation can make or disrupt digital transformation. If people in the organization are given the right tools and are allowed and empowered to use them, they can achieve the desired intent of technological transformation. IT directors facilitate adoption by supporting comprehensive, people-focused change programs. Organizations that do not have enough budget to bring about change fail in the transformation of the enterprise because people do not adopt the new technology, instead return to previous processes or find alternatives.
While the strong return on investment is convincing, the fact that problems with people are one of the biggest risks for the company. In 2020, the SEC presented and supported the International Organization for Standardization, the first regulatory standard (ISO 30414), which prescribes employee experience as part of the value of the enterprise. ISO 30414 reflects the company’s risks of neglecting the aspect of people in corporate activities and sheds light on the contribution of the organization people.
How do organizations start to deal with people’s problems as part of the transformation of the enterprise? To avoid failure by underestimating the human component, resolving the change should start from the beginning – when identifying the project. Stakeholders need to be involved in the initial talks on technological transformation. They are valuable because they offer perspectives on the impact on job functions, which opens up a dialogue for guided support and adjustment.
Resist
To ensure the successful activation of change with a shared risk approach, organizations need to:
- Commit to changing from the C-suite level down
- Create a North Star, which is the key to measuring success in an organization
- Match the strategy to the vision
- Set up a transformation management office right from the start
Start with a commitment to change from above
Having an executive leadership team that is committed to the transformation from the beginning is crucial to the success of the transformation. Sharing progress towards KPIs and indicators reinforces this commitment. People in the organization need to feel important players in the rewards and risks of transformation, and CEOs are constantly communicating the difference people make and their impact on the brand or customer experience, driving the needle toward accepting and increasing return on investment.
Create opportunities for frequent conversations about digital transformation. We urge leaders to continually strengthen their commitment to transformation through town hall meetings and frequent inter-office communications that illustrate indicators of progress and impact.
Create a North Star
A strong vision, the North Star, which informs the direction, supports the possibility of change, emphasizing the desired future state, what change will achieve and how it affects the organization. The main elements of the vision should include:
- Return on expectations – Focus on financial transformation, indicators and results of the desired state, based on investment and business impact
- structure – The operational transformation structure and the aspirations of the organization to the future state
- culture – The heart and soul of an organization
- Client – Why customers choose to do business with the organization
- Employee values – Organizational value and management of people needed for the strongest experience of employees
Match the strategy to the vision
The strategic goals allow the vision to become applicable so that results can be achieved. Analyzing indicators and KPIs during the transformation helps in making decisions towards this strategy. When the cascade of vision, strategic goals and indicators are aligned, organizations are well positioned for optimized return on investment.
A dashboard with KPIs and indicators to demonstrate people’s progress and efforts to make a difference supports vision and transparency. They are tangible tools that demonstrate and track progress and can be used to explain the reasons for bypassing or modifying the path of transformation.
Set up a transformation management office right from the start
Implementing the opportunity for change at the very beginning of the transformation is essential. The introduction of the possibility of change late in the trip, such as during implementation, makes people separate and do not feel a sense of ownership. As a result, implementation often fails, budget overruns affect return on investment and the benefits of transformation are reduced. The overall transformation processes need to focus on activities and results that:
- Identify and align
- Document and map
- Design and develop
- Apply and accept
- Facilitate feedback and improvement
The Transformation Office consists of a role change support team to ensure the most effective implementation possible. Ownership and responsibilities are determined by team members working in unison with a single plan for the highest level of commitment, ownership and acceptance of change.
Roles in the Transformation Office may include change manager, change agent, change champion champion team, training coordinator, training developer, communication coordinator, and communication developer.
The joint role of the C-suite
IT directors should have a direct place in the C-suite decision table, instead of reporting indirectly through another CEO. CIOs need to speak the language of business, focusing on the “why” of change and linking it to business needs.
C-suite and other leaders should be a role model, and C-suite members should be in line with the CEO. People watch and swallow, even if they do not express their thoughts. The C-Suite should monitor for signs of detachment and adjust accordingly to maintain people’s interest and ensure that they feel seen and heard.
To strengthen support, leaders must demonstrate resilience, energy, support, patience, ethics, courage and trust. Leaders and those who allow change must be accessible and open to feedback. Managers must also ensure that their communications are consistent with their actions and that everything is linked to strategic goals, vision and corporate values.
What should companies do now?
Implementing the opportunity for change with adequate funding at the beginning of the transformation of the enterprise is essential, which allows greater participation of people and increased return on investment. It is equally important that the coordination of activities and results with the vision of the organization, strategic goals and indicators positions companies for successful transformation of the enterprise. To move forward, organizations need to know where they have been. For this reason, organizations need to evaluate past change initiatives in order to assess past approaches of “people” and make appropriate adjustments.
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Managing Director, Digital Transformation
Director, Operations Improvement
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