BG Process and Control:
Why Digital Transformations Fail
For manufacturing and engineering businesses, the desire for the latest tech isn’t anything new, however, economic turmoil and supply chain disruption has forced them to recognise that there’s now a real need for modern and flexible digital management systems for success and survival.
So, with that said, why do 70% of digital transformations still fail to achieve optimum results?
Difficulties adopting new technology would be the simple answer, but with the right training, this shouldn’t be an issue. Ultimately, the most common barrier to successful digital transformation is the age-old problem: resistance to change.
Barriers to Successful Digital Transformation
For businesses that don’t try to change, they can become more proficient in their outdated process– but they’ll never be optimal.
Businesses that do accept a need for change, but only half-heartedly, may change parts of the digital system, or request bespoke software that fits only their organisation. In the short term, this might work – however, upgrading further down the line will likely be equally, if not more difficult due to a tighter relationship with opposing technologies.
What’s needed is a company-wide commitment to change. Without it, transformations which aim for cost savings and less stress can lead to exhausted teams and budget overruns. Unless you have someone at a senior level understanding the need for change, and driving a company-wide effort, results will never truly be as good as they could be. Optimal.
Why Change Management Is Necessary
As digital transformations are more complex than simply changing technology and are an issue of change itself, there needs to be a genuine acceptance that old ways of working schools of thought can and should be thrown out. Change management is a discipline that organisations can employ to ensure a smooth digital transformation.
People often don’t want to adopt new ways of working and need an implied reward. With a strong team effectively planning, driving and defining change, organisations can overcome the challenges that come with digital transformation and receive the benefits of their investment.
Putting the effort into managing the change itself minimises the risk of a negative response internally – the most pressing resistance tends to come from the lower levels of a business. IT teams in manufacturing, in particular, can be largely reactive and comfortable with existing systems as, understandably, they’re often the ones who use them the most.
At this level of a business, employees are not required to set out long-term business goals and strategy, and thus, may not see the bigger picture – change management is there to make this into a non-issue.
Overcoming Resistance to Change
A digital transformation project doesn’t necessarily have an end goal – it’s simply a new way of doing business that offers countless benefits. As such, goals and objectives need to be clearly defined to ensure that everyone is on the same page, and for this, some specific areas need attention.
Leadership
Before any transformation can begin across an organisation, the leadership all need to be committed to, and aware of the process which is taking place. The success of a transformation is significantly more likely when people in key roles are more involved in the planning and general dialogue.
One of the various hurdles towards success is the fact that often, towards the start of the process, an organisation may get a period of being less efficient. While you might know that success doesn’t come overnight, in the short term, things may look concerning, and thus, an organisation should be ready for resistance, no matter how well-planned things are.
This is why commitment within leadership is essential. If things are to look less optimistic at points, you need the key players with a bigger picture in mind to keep the wheel turning.
Timing
With any type of change, a large and sudden transformation can be overwhelming, for both a business and the individual employees. While this does not mean that the transformation should be conducted with hesitation, it does mean that timing should be considered during planning.
If possible, changes should be implemented gradually rather than all at once. As keeping everyone on the same page is such an integral part of managing change, this will give people time to adjust to the new way of doing things.
For example, for one business it may be better to change the business processes first, and then change the technology being used.
A Team Effort
For many individual employees, protecting the bottom line isn’t motivational enough to get them on board with change. Legitimate and understandable reasons need to be conveyed to the team, and employees need to feel comfortable with articulating their own concerns.
As such, a culture of communication is required, in which HR can play a huge role. This can be the real backbone of change management, making sure that nobody has any ill feelings bottled up towards new processes.
Large organisations can comprise many different departments, some of whom are likely not thinking of the rest of the business when dealing with the changes in their own work. Encouraging a dialogue between all areas of a business can be what prevents future issues arising, and barriers between collaborative efforts across departments.
With great communication, change can present a positive opportunity for employees to have a say in how they could perform their roles more effectively in the future, alleviating any workplace frustrations they may have.
Specialist
A lot of attention needs to be put into a digital transformation project to ensure success. For many manufacturing and engineering businesses in recent years, this might mean creating a new role that oversees the transformation process – titles like ‘chief digital officer’ are increasingly common.
On the other hand, it may be better to look externally. Rather than entering the unknown on your own, digital transformation specialists can assist with the shift, through the experience with other transformations.
Change can be daunting, and as outlined, every member of an organisation needs to be given the attention they need to ensure that they are on board with their business’s journey.