Digital Transformation: Best Practices For Managing Change
By Paul Whitelam, ClickSoftware
Seasoned leaders at software organizations know the rise of the digital experience means they must reevaluate their operations to effectively leverage digitally-connected products and services, assets, people, and trading partners. With worldwide spending on digital transformation technologies — including hardware, software and services — hitting $1.3 trillion in 2017, it’s clear this is a priority. But with change, especially in digital transformation, strategic management is necessary to achieve lasting results and meet long-term business goals.
It’s not easy though; McKinsey and Company reported 70 percent of all transformations fail, citing lack of employee engagement and inadequate management support as the top reasons. Forrester surveyed 1,559 business and technology decision makers and found digital transformation efforts are running into “roadblocks amid confusion, delusion and resistance to change.” While it’s human nature to resist change, this is a challenge software leaders must consider and prepare for when planning a digital transformation.
Successful change management requires a great deal of planning and should account for role and behavior changes of employees, the effect on customer relationships, and company culture. Effectively managing change in a software company is not an overnight process, and software leaders who employ a change leadership mindset and envision long-term goals are more likely to achieve success than a quick fixer.
Planning For Change
The biggest challenge when introducing new technology or process adoption is not the technology itself, but rather how it’s introduced to end users. Software companies can overcome this through planning and prioritization early in the process. One of the most important steps in the process is putting the why before the how. Adding new technology to a problem won’t solve the problem if it isn’t deployed strategically. Similarly, change for the sake of change isn’t productive. To assess where change is most needed, business leaders should look at the overall functioning of the company and determine where efficiency improvements are needed.
Additionally, the reason for change often differs for different stakeholders in the organization. Having a plan allows software leaders to think through how the change will affect each group, why each of them may need it, and how to approach it. The readiness of employees to embrace change may influence implementation plans. Employees need time to warm up to the idea of a change and the more willing they are to accept it, the less time they need to prepare.
Connecting And Empowering Employees
Planning also allows for ample time to prepare employees, who appreciate an inclusive culture within the organization and generally want to know about changes sooner rather than later. Throughout an organizational shift, it is essential to communicate proactively with teams and solicit their input. That way employees can feel included and more willing to adopt a new solution because their needs are addressed.
Employees also will feel more invested in the initiative if clear expectations are established. Determine what success looks like for each role and set meaningful milestones so employees know when to measure progress. Encourage employees by celebrating those milestones organization-wide to reinforce and magnify the behavior — when people see their peers praised they often seek the same recognition. Continue to tap these “change agents” to help fellow employees and support them as leaders.
Often overlooked in the change management process is company culture. According to a PwC study, 84 percent of respondents report culture as critically important to the success or failure of a change management strategy. Many initiatives either do not take culture into account or fail to recognize the cultural cues that can inspire adoption. Software leaders who seek to understand the company culture can achieve the desired change by approaching it in a method achievable to employees.
Training And Support
Prioritize training early and often during a change. This could mean training employees on a new technology before it goes live, allowing them to become comfortable and troubleshoot problems in early stages. Revisit training even after the technology has gone live to uncover any additional problems and improve usage plans. Forrester also recommends developing workshops to not only collect feedback, but to address unresolved issues in a collaborative setting.
Not every person learns the same way, which means not every person will need the same kind of support. Be sure to provide tools that support a variety of learning styles to ensure all employees have access to the same resources.
Solidifying Change For Lasting Impact
Ultimately, an organizational change relies on the participation and acceptance of the people it impacts. As Greg Gibbs, VP Global Customer Transformation, Service Council said, “By planning thoughtfully and preparing the right stakeholders for their appropriate roles in the change, the likelihood of success is much greater.”
Thinking in terms of a “change leadership” mindset promotes long-term change and lasting business impact. Software leaders who effectively communicate the value of the new solution and then implement it, can move to reinforcing the new strategies. Executives can continue to present the change at a high level and remind employees how their individual successes play into the bigger picture. Change agents can solicit feedback and relay it to management to continuously adjust, even months after implementation.
About The Author
By Paul Whitelam is Senior Vice President, Global Marketing for ClickSoftware.