Digital transformation & employee readiness

Successful implementation of any initiative is only possible when employees see the value it adds

Today, almost all boardroom discussions are buzzing with the phrase “digital transformation”. Strategies are in place, roll-outs are underway, with much focus on agility and speed-to-market. In the recent past, what we have witnessed is dispersed implementation of technology, primarily focusing on operational efficiencies. This is certainly going to change at a pace only a few can foresee. These roll-outs will be more ambitious, changing the business dynamics completely, further revolutionising the way we interact as a customer or as a provider. 

Digital transformation will help us unlock new revenue streams, deliver an experience-based interaction and create new business models with shorter product life-cycles driven by self-destructive technology. To most, it sounds like a picture-perfect situation. However, who exactly is going to roll out these plans.

Typically, digital transformation-related discussion revolves around technology, infrastructure and processes with very little or no mention about employees. As leaders, do we have a plan in place to get the teams from the top floor to shop floor engaged in this entire process? Most change management initiatives revolve around employees with well-crafted interventions to address the mindset change required and ensure high engagement levels. Somehow, I feel this aspect needs to be addressed more prominently while we talk about digitisation.

Companies like Apple, Netflix, Google, and Dell are 40 per cent more productive than the average company, according to a research from the leadership consulting firm Bain & Company. What sets them apart is the engagement level of the employees - here, I am just talking about an engaged team, leave alone what an inspired team can do! There are many research reports that highlight how engaged employees can boost productivity, drive innovation and enhance profitability. And if we are talking about a change that will revolutionise every aspect of our businesses, without engaging employees, we will face the risks associated with resistance, impacting the entire transformation agenda. 

What needs to be addressed?

First, we need to help employees understand that digitisation is not about IT, but revisiting and redesigning the existing processes powered by technology to make them more efficient in order to deliver a unique customer experience. This is a critical aspect to address, as a lot has been written and spoken about people losing their positions and jobs, creating a hostile environment. These insecurities and uncertainties can derail the process. Once we address the “mindset-related” changes, this transformation agenda needs to address “skillset-related” aspects with a clear roadmap of upskilling and reskilling the existing employees while we hire the digital native talent. I think the starting point is to assess our “employee readiness” towards digital transformation.

Successful implementation of any strategy or change initiative is only possible when our employees see the value it adds and acknowledge that disruption caused by this change is good for them. We as leaders understand that disruption is imperative and see this as an opportunity to move up the value chain. But it's when our employees, the key catalysts, act as a tailwind instead of a headwind, the change towards digital transformation will witness the right traction and speed to gain the advantage that your organisation envisages.

The writer is CEO, South Asia, South-East Asia, Middle East and Africa, TÜV SÜD