flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

Culture Eats Strategy in Digital Transformation

Editor's Note: Take a look at our featured best practice, Digital Marketing Agency Business Plan (344-slide PowerPoint presentation). Curated by McKinsey-trained Executives Unleash Your Digital Marketing Agency's Potential with Our Comprehensive Business Plan Toolkit Are you ready to launch your own digital marketing agency but unsure where to begin? Look no further than our complete **Digital Marketing Agency [read more]

Also, if you are interested in becoming an expert on Digital Transformation, take a look at Flevy's Digital Transformation Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

A lot of companies are at risk of becoming victims of digital Darwinism these days. Competitors in their industry are ahead of them in the digital arena. And there is always the risk of an outsider disrupting the entire industry. For many companies the words digital transformation ranks high on the list of priorities.

One of the key factors for succeeding with digital transformation is to get buy-in from top management. I’ve written about this before, if you want to learn more. The reason for this is obvious, without management backing any effort is doomed to fail.

But especially for larger companies the other side of the coin is just as important – to get employees to buy into the need for digital transformation. The reasons for this are obvious as well, if the whole company does not change its way of doing things it’s not a transformation. It’s business as usual with a thin layer of digital paint on the surface.

A Culture of Change or the Opposite?

Lack of digital knowledge among top management has often been quoted as an obstacle to digital transformation, but the same can be said for the rest of the company as well. Not everyone needs to embrace it, obviously, but a large part of employees do have to understand that integrating digital solutions into all aspects of the business is a necessity.

Getting employees to accept change is easier said than done. And this is where the company culture comes into play. If one aspect of the culture is a willingness to change that is a huge advantage. But the opposite, a reluctance to do so, can be the downfall of any attempt to transform a company. Drucker has taught us that culture eats strategy for breakfast, and if we are to avoid that fate we have to understand the reasons why reluctance to change can be so strong.

Adopting Innovation

In the final analysis companies are made up of people. If you were to divide the employees of a larger company according to their interest in all things digital you would likely see the same proportions as in the innovation adoption lifecycle model above. In other words, a small group would embrace it whole-heartedly and begin to innovate not only how they themselves use digital but also find new way for the company to make use of it. A larger group would adopt the new ways quickly and with a positive attitude. But those two groups would probably represent less than 20% of the total number of employees. More than 60% would gradually adopt digital tools and processes, but with a certain reluctance. And around 15% would resist any change at all.

All in all most companies would be facing reluctance and resistance to digital transformation from, with a conservative estimate, more than half of its workforce. And that in turn will have an impact on the culture as a whole.

There are two main reasons why people are reluctant or resist: Lack of interest or Fear of change

Lack of Interest

Even though digital tools and ways of working are used a lot in most companies I believe it’s fair to say that to many employees they are of little interest. Computers, software etc get the job done, and nowadays few can remember a time without these tools. But to many of your colleagues the idea that digital could do more, apart from certain areas like marketing and customer service, has probably not occurred to them.

This is interesting in itself, because at home they likely use digital more and more each year, and in areas of their lives where they could not have imagined it would play a part just a couple of years ago. But the difference there is that they can see real results. Tasks are done more quickly, shopping becomes easier, research and entertainment as readily available. To them digital in the workplace is often a very different experience.

In order to overcome the lack of interest I believe we have to do two things. The first is to improve the digital tools and processes already being used in the company today. In order to do this we will have to change or simply get rid of many of the rules and regulations in place around everything from hardware to software. Developing a more open-minded take on BYOD (Bring Your Own Device) is one example. If we can make our colleagues work experience more similar to what they already can do in their personal lives, they will see some real value to the change.

The second thing to do is to educate employees of what digital transformation means, and why it is a necessity for the company to change. Very often we expect them to understand this on their own, even though we know that very few people invest time in learning things unless it is something they are interested in or see as beneficial to their career or life. In order for this to happen some companies have created roles like Chief Digital Officer, charged with educating and inspiring internally, and I think this is a good way of starting the process.

Fear of Change

Digital transformation by its very nature disrupts the way a company works and how it’s organized. Naturally, it will mean that certain tasks and roles will disappear either in part or entirely. Small wonder then that a lot of people fear the consequences it will have on their jobs, their standing and their future. In an MIT/Sloan Management survey 20% of respondents said that internal politics, including fear of losing power, impeded digital transformation. I believe that figure in reality is much higher.

A couple of months back I attended a seminar on digital change where a former CEO of a large corporation spoke. One thing she said that stayed with me was ”We have to transform with the people we already have employed”. What she meant is that most companies will either have to teach and convince their current employees of the necessity of transforming, the solution of letting them go and hiring new talent is rarely an option.

So the fact of the matter is that companies that want to transform are going to have to convince existing employees that this is necessary. And in order for this to work I believe that they need to do two things:

Once again education and inspiration is a key factor. In order to overcome fear and resistance to change, companies need to educate employees both on the necessity to transform and on the dire consequences that staying the same will have. The Chief Digital Officer I mentioned earlier can play an important role here as well.

The second thing is to make digital transformation part of each manager’s scorecard, i.e he or she is measured on willingness to change and adapt. That is one of the few things a company can do to come to have an impact on internal politics.

Culture Always Beats Strategy

Lack of interest and fear of what may come are two underlying reasons why a company may have a corporate culture that resists change. I believe that visible improvements, education and measurements are key factors in addressing both of them, and thereby having an impact on the corporate culture. One thing is certain, we will never succeed with a digital transformation if we don’t have the corporate culture on our side and employee buy-in.

Over to You

What cultural factors or employee attitudes do you see that can have an impact on a necessary digital transformation? Leave a comment below.

34-slide PowerPoint presentation
Are you looking for an effective digital marketing template plan for 2024? Look no further! Introducing our new and improved digital marketing template plan designed to capture your audience's attention, generate interest, create desire, and prompt action (AIDA model). This template [read more]

Want to Achieve Excellence in Digital Transformation?

Gain the knowledge and develop the expertise to become an expert in Digital Transformation. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

Digital Transformation is being embraced by organizations of all sizes across most industries. In the Digital Age today, technology creates new opportunities and fundamentally transforms businesses in all aspects—operations, business models, strategies. It not only enables the business, but also drives its growth and can be a source of Competitive Advantage.

For many industries, COVID-19 has accelerated the timeline for Digital Transformation Programs by multiple years. Digital Transformation has become a necessity. Now, to survive in the Low Touch Economy—characterized by social distancing and a minimization of in-person activities—organizations must go digital. This includes offering digital solutions for both employees (e.g. Remote Work, Virtual Teams, Enterprise Cloud, etc.) and customers (e.g. E-commerce, Social Media, Mobile Apps, etc.).

Learn about our Digital Transformation Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources


118-slide PowerPoint presentation
Introducing the Ultimate Digital Marketing Business Toolkit: Propel Your Online Success Today! Are you ready to unlock the secrets of digital marketing and supercharge your business's online presence? Look no further! Our comprehensive Digital Marketing Business Toolkit is here to revolutionize [read more]


 
78-page PDF document
 
 
17-slide PowerPoint presentation

About Pontus Staunstrup

Pontus Staunstrup an experienced strategist, focusing on digital/content strategy, content marketing, social media, native advertising and digital transformation. He has worked in Communications and Marketing for close to 25 years for a number of global companies in management and consulting roles. You can visit Pontus's website here and connect with him on LinkedIn.

, , , ,



Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  

The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.
  


OUR CORE OFFERINGS
Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com



CONNECT WITH US!
       
TOP 100 TRENDING TOPICS
Acquisition Strategy
Agile
Analytics
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
CMMI
COBIT
Change Management
Cloud
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

BROWSE BY FUNCTION
Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
ESG
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hiring
Hoshin Kanri
ISO 27001
ITIL
Information Technology
Innovation Management
Integrated Financial Model
Kaizen
Kanban
Key Performance Indicators

ADDITIONAL RESOURCES
Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Leadership
Lean
Lean Manufacturing
Logistics
M&A (Mergers & Acquisitions)
Manufacturing
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management


Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Restructuring
Risk Management
Robotic Process Automation
SWOT
SaaS
Sales
Scrum
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Sustainability
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety


Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy


© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.