Digital Transformation: The power of employees
Putting people first – the key to successful digital transformation
Digital transformation is critical.
Technology is continually evolving, and organisations and leaders must keep up with the latest advancements to remain competitive. Integrating digital technology into all areas of a business fundamentally changes how organisations operate and deliver value to customers – which for many is an outcome critical to survival.
However, it is difficult to get right.
Our research shows that only 25% of businesses that have gone through the process think it was successful. And for those that did succeed? The rewards can mean doubling turnover and overtaking competitors with revenue growth of up to 10%.
So, what drives success?
Successful digital transformation requires people to adopt new technology and use it for its intended purpose. Implementing the technology itself is not enough. FTI Consulting’s new report, ‘The Power of Communications: Unlocking Growth Through Digital Transformation’ points to two key ‘people’ factors that can increase the chance of implementing a successful digital transformation.
Engage employees so they feel like they have skin in the game
8/10 organisations believe that the success of a digital transformation relies on engaging stakeholders. This must be done at the start of the change process to understand issues and produce solutions in real time.
Nearly a third of survey respondents cite ‘poor communication of decisions and the case for change’ as a reason why most digital transformation efforts fail. Employees need to understand the reason behind the change, what it means for the organisation, and how it will benefit them. And they need to know this from the outset, not when it’s time for them to change.
Employees who understand the reasons for change are likely to be more invested in the process. 41% of organisations that have successfully managed a digital transformation cite ‘feedback from informed employees as a trigger for implementing a successful digital transformation’.
41% of organisations have utilised employee feedback as a trigger for implementing a successful digital transformation.
Adapt cultures and behaviours in the workplace
Our research reveals that a third of the respondents believe in the importance of an ‘open and honest culture of personal and collective accountability towards the change’. This points to the need to shift towards more agile ways of working and a ‘growth mindset’. This means prioritising behaviours that support openness to experimentation, continuous learning, and collaboration, within an environment where fear of failure or repercussion doesn’t exist.
Leaders must therefore ensure their organisational culture can evolve to not only match these behaviours but also ingrain them in everything the business says and does.
36% of businesses told us that culture is a key condition to enable successful digital transformation.
Put people first to ensure you don’t come second
For business leaders embarking on a digital transformation, there are plenty of things they need to get right to succeed. The prioritisation of those things, in particular the ‘people’ factors, has never been more important.
At FTI Consulting, our People and Transformation practice helps business leaders and transformation offices successfully and sustainably navigate the people side of change. Please get in touch if you would like to learn more about how we can support your organisation and leaders on your digital transformation journey.
Research Methodology
The research was conducted online from 20th to 27th January 2023 by FTI Consulting’s Strategy Consulting and Research team and surveyed n=600 C-suite and senior managers at large companies across the United Kingdom, France and Germany. Respondents in our sample employ a sum in excess of 7 million workers, and have a combined annual revenue of over £/€1 trillion globally.
For more information, please contact [email protected]
Source: “The Power of Communication: Unlocking Growth though Digital Transformation” – FTI Consulting, April 2023.
The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.
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