How to create a culture that supports digital transformation

With disruptive technologies like artificial intelligence and machine learning drastically changing how firms operate, the connection between technology and cultural change is more evident than ever.

While leaders may understand the concept theoretically, terms like “culture” and “change management” are often dismissed as mere HR jargon. Despite the growing demand for change management, it is often under-invested in the period of digital transformations. This oversight leads to slower technology adoption, organizational disparities, and delayed return on technology investment, he shows McKinsey.

Why is cultural transformation essential during technological change?

Integrating recent technology into a company requires a fundamental change in perspective. This change requires a shift in mindset before any true adoption can occur.

Consider how the introduction of smartphones, email and social media have profoundly impacted our lives. Initially, many resisted these changes, clinging to traditional methods of communicating and consuming news, reminiscent of telephone calls and printed newspapers. However, as we have come to appreciate the efficiency and convenience these technologies offer, we have regularly adapted to them. Tests shows that social influence plays a significant role in technology adoption.

An necessary factor influencing this adaptation was peer pressure. Watching peers use recent tools has highlighted what we could also be missing, giving us a sense of “FOMO.” We realized that the use of recent technologies could improve our relationships, ensuring faster communication and exchange of knowledge.

This dynamic is also crucial for organizations.

In many firms, teams operate in silos, becoming too comfortable in an isolated environment. These separate systems and processes often foster resentment and competition between teams. As a result, frontline employees struggle to see the larger picture of the organization, limiting their overall understanding. Research from McKinsey highlights how isolated structures can hinder flexibility and responsiveness.

So when a company introduces recent technology designed to promote collaboration across silos, the results can often be disappointing. Without a collaborative mindset, there is resistance to adopting recent tools. Employees may stick with the established order, questioning the need for change when their existing systems seem to be working adequately. They may not realize how recent tools can profit downstream processes or feel motivated to change.

Particularly with AI and machine learning, there will also be a significant sense of uncertainty and fear about changing jobs and having to quickly learn recent skills and role requirements. This change can create tension inside the organization, requiring strong change management to help cope with evolving roles. To successfully implement these recent tools in the workplace, a culture of continuous learning, flexibility and data-driven decision-making should be established.

To eliminate cultural barriers to digital change, my change management approach focuses on establishing organizational cohesion and fostering a collaborative mindset from the start. Initially, this responsibility falls largely on leaders. The role of leadership is crucial during IT transformation, which is why our framework is called LEADER.

How to meet the challenges of digital transformation

Here are some strategies from our LEADER Guide to address the challenges of IT transformation:

1. Start early: : Engage stakeholders early through alignment workshops, all-party meetings, surveys, and lively two-way communication to gain buy-in before implementing recent tools. This helps minimize wastage of time and resources. Highlight the advantages of transformation by using each comparative industry data and compelling storytelling to build a strong business case.

2. Implement regularly: : Make changes regularly and efficiently to prevent them from being overwhelmed. Implement micro-learning and training in blended modes as needed for different user groups, collect feedback, and provide appropriate support to struggling teams. Ensure that communication and training are tailored to the needs and learning types of stakeholder groups and that feedback mechanisms are in place.

3. Mobilize early adopters: : Create a cross-functional network of early adopters who can support the recent initiative and help transform their functions. Change could be daunting and many employees prefer what is familiar.

4. Highlight early successes: : Create momentum for change by reaching for low-hanging fruit. Ensure that pilot activities are low risk and high reward, ensuring initial success that could be demonstrated to the organization to increase positive sentiment around the initiative. Fight change fatigue by often communicating each small and significant achievements. Maintain momentum with newsletters, intranet updates and word-of-mouth recognition from management.

5. Match incentives: Align performance metrics with desired behaviors to increase learning and adoption rates. Encourage users to adapt to recent processes, and have a good time and appreciate when they do so.

Creating a culture that supports digital transformation

The cultural shifts brought about by rapidly changing technology trends, including artificial intelligence and machine learning in the workplace, are profound and multifaceted. Organizations that rush to implement these technologies must also recognize the need to build a culture of support that prioritizes adaptability, continuous learning and ethical considerations. By supporting open communication, trust and collaboration, firms can alleviate resistance and increase worker engagement.

Ultimately, successfully navigating digital transformation requires a commitment not only to integrating advanced technologies, but also to enabling employees to thrive in a changing landscape. In this manner, organizations can unlock the full potential of recent tools while cultivating a resilient and modern workplace culture.