The secret behind a successful Digital Transformation – Managing change better!

The secret behind a successful Digital Transformation – Managing change better!

A.Organisation Structure should be different

Many digital transformations are perfect examples of “Old wine in New Bottles”- where businesses have rushed headlong into using technology without considering the impact on processes and organisation structure. A Consumer Goods company enabled Digital Sales without establishing an Omni channel strategy. The result was overlapping customer interactions and confusion.

Some of the world’s leading companies are addressing this in a systematic manner. Jesper Brodin, CEO-IKEA Group says ” …We have given ourselves three years … to push out digital across the world. We have been making massive investments in organisational structures in the past few months …”.

Check if your transformation is on track with these three questions:

  1. Is the CEO visibly involved in the transformation?
  2. Are the Old and new Org structures different?
  3. Are financial delegation powers changing with only significant exceptions managed at the original level?

B. Training has to be Extensive

“…Birds fly, Fish swim, Humans think and learn …”

John Holt

A Responsibility assignment matrix (RACI matrix) is imperative for a successful transformation. Consulting widely with stakeholders in the Ideation / Build stages is actually the start of the end-user training. Training a worker to handle CNC presses in a machine shop is very different from enabling a Wealth Management Representative in a Private Bank. While Digital systems supported by Artificial Intelligence (AI) provide many potential options, the representative needs to think about his client, learn the system and further the business.  

Check if your transformation is on track with these three questions:

  1. Does the plan have training both during and after the implementation?
  2. Is there a formal feedback system with reviews by the Sponsor?
  3. Do the training plans place an equal emphasis on data along with process?

3. Identify and Fill Capability Gaps

Capability gaps in the organisation will become apparent during the digital journey. Ability to use smartphones and laptops does not automatically translate to digital savvy. Employees will need to be proficient in the idiom of analytics, technology and business.

A Fortune 500 CEO identified that over a third of the employees would not make the cut in a digital environment. Organisations will have to cast their nets, far and wide, to identify and employ such talent; sometimes on a “gig” basis.

Check if your transformation is on track with these three questions:

  1. Is there a process to evaluate and action capability Gaps?
  2. Does it dovetail into the Performance Management System?
  3. Are the teams diverse across dimensions ?

Summary

To ensure a successful Digital transformation you need to ask these nine questions across the three critical areas ; importantly the answers need to be evaluated and follow-on actions enabled swiftly.

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