Telecom & Technology Consulting
CIOs understand that transformation is essential for company growth and longevity. In fact, transformation provides the guiding light for nearly every initiative they lead. Change, whether it is on the micro or macro level, has the potential to increase efficiencies, improve customer satisfaction, and foster competitive advantage.
But transformation doesn’t exist in a vacuum – every action sparks a reaction, and the results aren’t always positive. Transformation can come at an unforeseen cost.
For example, a digital transformation may require you to modify specific products or solutions. That’s just the surface. Because changing technology inherently causes a chain reaction – in this case, there needs to be a corresponding cultural transformation, which requires significant time to bear fruit. The cost is the massive effort needed to get people authentically on board with the new way of working and doing business.
Humans don’t automatically change overnight. If we’re being honest, most people are naturally reluctant to change. Couple that with that fact most are initially inefficient with new technology, and we can see how long it takes for true transformation to yield results. CIOs must recognize these truths, and be prepared to be patient over the long haul. Be happy with incremental change.
It’s also critical to acknowledge that cultural transformation is not only the most important aspect of digital transformation, it’s also the most costly. That’s because every single employee needs to realign their vision to match the goals of the transformation. And doing so means educating people on the rationale for the transformation, explaining the respective roles, and most significantly, clearly pointing out the benefits (both personally and organizationally) of the change.
As we can see, nearly all the hidden costs of transformation are related to a cultural shift. It’s not enough to provide training on how to use new tools and technologies. It’s not enough to get them up to speed on new processes. They have to adopt new ways of thinking, and buy-in to the philosophy behind the new approach to work.
But generating the new mindset can’t be undertaken in an organic manner. There must be a detailed structure, for even the most advanced technology will fail to create the desired change when people resist the transformation. As such, you will inevitably experience delays in the transformation, which in turn leads to people returning to the old way of carrying out their functions.
Avoid these negative ramifications by developing a thorough communication and training plan, including timelines and resource guides. Also be clear that you don’t expect people to embrace the change right away, and that you understand it will take time to learn the new approach. In this light, both in written and oral form (even with training video) convey that you encourage experimentation, understand that mistakes will be made, and offers opportunities for ongoing learning.
Employees will recognize your patience and empathy implied in these communications. Learning a new approach can cause stress, which leads to a downgrade in enthusiasm and overall staff morale. The last thing you want is confused, burnt-out employees.
Transformation often includes some manner of organizational restructuring, evolving roles, and even entirely new job functions. These bring their own set of hidden costs for which you need to prepare. Keep in mind that in many cases, digital tools drastically change workflows and, in turn, alter how responsibilities are assigned. That means that some roles may become obsolete while others may require certain employees to develop entirely new skills. Accordingly, you may have to reassess organizational charts, how teams are structured, and the underlying assumptions of performance metrics.
Any major organizational change doesn’t just require a vision of the end-goal – you must also anticipate the potential ramifications and know what may need to be adjusted. So before undertaking a transformation, be prepared for all of the necessary micro-changes.
