Digitization and Change Management: The Need for Speed

It often feels like technology has taken over our world. Many of us can think back to the “good old days” when paper and pencil were the norm and a fancy calculator and phone on your desk were high tech.

The world is faster, people are busier and digital transformation is changing the way companies do business. The need for speed is essential in giving us a competitive edge in many areas of our life. To grow and stay competitive in today’s marketplace, digitizing manual tasks and processes and introducing new technologies is critical. But, with digitization comes change. These changes are complete culture shifts. According to Zippia, 97% of executives say that the COVID-19 pandemic sped up digital transformation efforts. Many employees in the current workforce have not only adjusted to the rapid speed of technology, but changes in the way they have always done their job and conducted business.

Digital transformation needs change management to succeed. Installing new software and developing new technologies won’t improve the business if they are not being used. It is more important than ever for leadership to engage and include all levels of employees in the changes within an organization if they want long term success. Technology change is accelerating, which means customers expect more and expect it faster. But new technologies can introduce complexity. Understanding the benefits, how they work and how to utilize them is instrumental for both employee and business success. Research done by Brookings shows 90 percent of the U.S. workforce as needing digital skills to perform their job. Many workers who have serious digital skill gaps are nevertheless employed in jobs that require them to use computers. Research done by National Skills Coalition indicates nearly 1 in 3 workers lack those foundational digital skills needed.

Companies need to embed digital skills training and expand access to high quality digital skills instruction that meets industry and employees needs when planning digital transformation initiatives. Employees today want to be heard, they want transparency and collaboration, they want to know they have a purpose and that they have an impact. Starting discussions early about the type of changes that are coming and educating and training employees along the way can be beneficial in sustaining change. Technology is not going anywhere. Digital transformation is not a check the box activity. It is the start of added technologies, advancement in current technologies and changes built on changes.

Digital transformations are often large and expensive initiatives, and sustainability is important. It is the leading indicator of improved profits in many companies. According to Zippia $1.5 trillion was spent on digital transformation globally in 2021. Digital transformation change management efforts often fail because outdated models and change methods are fundamentally misaligned with today’s business landscape. Change management practices have had to adjust to the fast-paced nature of business, and traditional change management methodologies are being replaced with faster models like lean and agile.

Change has become even more constant and advancements in new technologies are not slowing down anytime soon. Change management today requires a higher level of active leadership, a faster pace, more employee inclusion and integrating new behaviors and skills that many people are not familiar with. But faster does not always mean better. Companies need to be cognizant of their culture and how the changes are affecting their workforce and factor that in when planning any new changes.

Communication has always been a hallmark of change management but with the rapid rate of technological advancements people are being asked to completely change how they do business, how they interact with people within the organization, how they interact with customers and how they do their jobs. Utilizing two-way communication empowers employees to provide their input. It is important in today’s business landscape to understand what employees think, what tools would make their lives easier, and what ideas they can bring to the table. Digitization can make our lives easier if it is introduced right. McKinsey found that companies with input from only management reported 3% success in their transformation, whereas those that engaged and empowered both management and front-line workers saw success rates closer to 28%. Engaging everyone leads to greater success. Front-line workers are often the ones that know the most about day-to-day operations and how things run and they are a wealth of knowledge when understanding how digitization and new technologies can best be utilized while helping identify skill gaps that may occur by the changes.

Know your employees. Every company has champions, those that embrace change and are excited to work in new ways. Those people should be identified to work with those and help create strategies to offset risk of employees that are not onboard with the changes. Not only is digitization changing the landscape in new and faster ways of doing business, but we are also working with a more diverse workforce and multiple generations. While employees entering the workforce may already be adept at the latest technologies, employees who have been on the job or in the workforce for a long time may not. There are employees in many companies around the world that remember when laptops, cellphones and the internet were new technologies. Factoring in the skill sets and understanding of employees when introducing new technologies can make or break a successful implementation.

Digital Transformation is beyond using new technologies. Organizations need to align its values with the digital process to help foster a culture of understanding to advance digital transformation. At the end of the day, change management is about getting people to work in new ways and with new tools to achieve true business value. Integrating change management efforts into all digital transformation initiatives will give companies a greater chance at long term success.