by Kim McNany
Transformation. A word that has quickly become the focus of every business in the world. Transformation means the act or process of changing completely. Business process transformation, digital transformation, culture transformation are all common concerns of CEO’s and their vision for an organization’s success. It is projected that trillions of dollars will be invested in business transformation over the next year. The past year alone, has seen an acceleration of transformation processes. Almost overnight, businesses all over the world found themselves scrambling to change processes and technology in order to stay in afloat.
But what about culture?
As organizations continue to transform their business to meet demand, whether brought on by customer needs, competition or a pandemic, one thing is certain: A failure to align a business transformation vision with team members’ capabilities, expectations and behavior can sabotage its success. Without the support and capabilities of an organization’s team members, digital or process transformation will most likely fail.
Any kind of transformation in the workplace can cause fear and discomfort if not given the proper attention from the beginning. And let’s face it, the biggest challenge of any digital or process transformation is not technology or programs – it’s people. Misalignment, misunderstanding, conflict, mistrust, fear, resistance are all about people. And people can be the biggest sabotage of any transformation. Preparing workplace culture for transformation can be difficult. It requires a collaborative effort between Senior Leadership, Business Process Leaders, IT and Human Resources. Successful transformation starts by educating the workforce, understanding their capabilities, creating full alignment with the new vision, and creating a culture where team members will embrace and push the change forward.
Begin with a commitment to the vision. It is a given that senior leaders need to have complete symmetry on how a digital or process transformation will achieve the corporate strategy. But, for that strategy to work, they must also relate it to the cultural principles and values of the organization. Culture transformation begins with leadership. If senior leaders are not on the same page, they will sabotage process or digital transformation before it even begins. Alignment at the top will lessen confusion throughout the organization.
Confusion exists when:
Team Members hear different versions of the vision for the future.
Team Members see disagreement at the top when it comes to an implementation strategy.
Team Members receive different answers to their questions about the change.
Leaders show a lack of commitment to the change.
Leaders disagree on the need for accountability.
Leaders allow for hasty and sometimes unhelpful changes in the middle of the digital or process change. Some changes may be necessary, but too many work-arounds will add to confusion and may not get communicated to all team members.
Senior leaders must be committed to the change and be consistent with holding people accountable to push the transformation forward.
Communicate to build trust and understanding. The biggest complaint during a business transformation is the need for more communication. But frequency or quantity is generally not the issue. People want answers to these four questions:
What process or technology is being changed?
Why is the process or technology changing?
How is the process or technology changing?
And the important question- What does this mean for me?
People want to understand and they want to trust the decision to change. According to Gallup research, companies with high trust levels outperform companies with low trust levels by 186%. If you want to have successful business transformation processes, you need an organization of highly engaged employees who trust each other.
Team Members will get behind a process or a digital change (like a new ERP system) that will positively impact the things that are most important to them. If Team Members can not immediately answer the question, “ What does this mean for me?” , they may unintentionally disengage and create obstacles for change. Fear of the unknown, fear of learning a new skill and fear of not being heard all lead to a lack of trust. Without trust, company leaders will see misalignment between the transformation’s purpose/ end result and the employee’s contribution and value. Team Members gain alignment by understanding the process or digital change and how it will work for them. They are more likely to feel empowered and excited. They are more likely to trust the Leaders’ decisions and will embrace the change to drive transformation forward.
Talent Inventory. Do you have the right skill sets, in the right positions, within the organization to carry out the vision? When referring to skill sets, consider both technical ability and culture fit. If accountability is a company value, make sure you have people who lead themselves well on the implementation team.
If a gap exists between current and future state, what training, skill development or talent will be needed? Are you better served to train, hire or outsource the missing talent? Do you have a succession plan and does it account for the future state of the business? Business process change or digital transformation allows the leader to see, in advance, what skill sets are needed within the business culture and then to act to prepare the organization in a proactive and methodical way.
Senior Leaders should dedicate their top performers to the implementation team. It is critical to have team members who understand the need for change, can break down barriers, find solutions and make things happen. Subject matter experts should be involved from the beginning to make decisions on all processes. Too often people who are removed from the day to day operations are making key decisions on process or digital changes. If subject matter experts are not involved from the beginning, the implementation of change may take much longer. It will wear employees down and cause them to feel resentful. Winning together means we act in the best interest of the company.
Develop a detailed culture implementation plan and work the plan. Ask yourself these questions: What company principles and values will you rely on to achieve the digital or process change? Why is it an important part of successful transformation? What value is missing from our culture that could hinder or delay the transformation? Companies who choose to discount or overlook the value of a detailed culture plan, may be vulnerable to uncertainties and can jeopardize the success of transformation.
A culture who has team members committed to continuous improvement, who trust each other and who lead themselves by focusing on accountability can prepare its workforce for significant digital and process change much faster than a culture who has team members comfortable with (or stuck in) the current, who work in silos, keep their heads down, or hide mistakes
Business transformation process will see the most success if it’s first focus is to eliminate anxiety, confusion, and resistance to change. Investing in culture, having people alignment on the front end and then measuring the temperature of the culture during implementation, will ensure a smooth, supported and successful transformation of digital and business processes.
Is your organization preparing for a digital or process transformation? If you need assistance in determining the readiness of your culture or if you need assistance in culture transformation, please contact Ken Chapman & Associates, Inc.
