How to Create a Culture That Supports Digital Transformation

In the wake of groundbreaking technology like AI and ML drastically changing company operations, the connection between technology and culture change is more apparent than ever.

While leaders may grasp this concept theoretically, terms like “culture” and “change management” are often dismissed as mere HR jargon. Despite the growing demand for change management, it frequently receives inadequate investment during digital transformations. This oversight leads to slower technology adoption, misalignment within the organization and delayed returns on technology investments, as shown by McKinsey.

Related: Digital Transformation Means Adopting a New Culture: Here’s How To Do It

Why is cultural transformation essential during technology transitions?

Integrating new technology into a company necessitates a fundamental shift in perspective. This shift requires changing mindsets before any real adoption can occur.

Consider how the introduction of smartphones, email and social media profoundly impacted our lives. Initially, many resisted these changes, clinging to traditional methods of communication and consuming news, like phone calls and printed newspapers. However, as we recognized the efficiency and convenience these technologies offered, we gradually adapted. Research shows that social influence plays a significant role in technology adoption.

A significant driver of this adaptation was peer pressure. Observing peers engage with new tools highlighted what we might miss out on, giving us a sense of “FOMO.” We realized that embracing new technology could enhance our relationships by providing faster communication and information sharing.

This dynamic is crucial for organizations as well.

In many companies, teams operate in silos, becoming too comfortable in their isolated environments. These separate systems and processes often foster resentment and competition among teams. Consequently, frontline employees struggle to see the bigger picture of the organization, limiting their holistic understanding. Research from McKinsey highlights how siloed structures can hinder agility and responsiveness.

So, when a company introduces new technology designed to promote collaboration across these silos, the results can often be underwhelming. Without a collaborative mindset already in place, resistance to adopting new tools arises. Employees may cling to the status quo, questioning the need for change when their existing systems seem to function adequately. They may not recognize how new tools could benefit downstream processes or feel motivated to change.

In the case of AI and ML especially, there can also be significant feelings of uncertainty and fear about job displacement and needing to learn new skills and role requirements quickly. This shift can create tension within the organization, requiring strong change management to help navigate evolving roles. A culture of continuous learning, agility and data-driven decision making needs to be embedded in order to successfully implement these new tools into the workplace.

To address the cultural barriers to digital change, my approach to change management focuses on establishing organizational alignment and fostering a collaboration mindset from the outset. Initially, this responsibility falls heavily on leaders. The role of leadership is vital during IT transformations, which is why our framework is named LEADER.

Related: How to Get Your Company to Adapt to New Technologies

How to navigate the challenges of digital transformation

Here are some strategies from our LEADER Playbook to address the challenges of IT transformation:

1. Start early: Engage stakeholders early through alignment workshops, all-hands meetings, surveys and active two-way communication to get buy-in before deploying new tools. This helps minimize wasted time and resources. Emphasize the benefits of transformation, using both comparative industry data and compelling storytelling to build a strong business case.

2. Implement incrementally: Introduce changes gradually and in an agile manner to prevent overwhelm. Deploy micro-learnings and trainings in blended modes as needed for different user groups, collect feedback, and ensure appropriate support is available for teams facing difficulties. Ensure communications and trainings are customized to the needs and learning styles of stakeholder groups and that feedback mechanisms are in place.

3. Mobilize early adopters: Create a cross-functional network of early adopters who can champion the new initiative and help lead transformation for their function. Change can be daunting, and many employees prefer the familiar.

4. Highlight early successes: Create momentum for the change by going for the low-hanging fruit. Ensure pilot activities are low-risk and high-gain, giving initial success that can be demonstrated to the organization to increase positive sentiment around the initiative. Combat change fatigue by regularly communicating both small and significant achievements. Keep momentum alive through newsletters, intranet updates and word-of-mouth recognition from leadership.

5. Align incentives: Align performance metrics to desired behaviors to boost learning and adoption rates. Incentivize users to adapt to new processes, and celebrate and recognize when they do.

Related: How Strong Leaders Deal With Pushback on Technology Initiatives

Creating a culture that supports digital transformation

The cultural shifts brought about by rapidly changing technology trends, including AI and ML in the workplace, are profound and multifaceted. As organizations rush to embrace these technologies, they also need to recognize the need for building a supportive culture that prioritizes adaptability, continuous learning and ethical considerations. By fostering open communication, trust and collaboration, companies can mitigate resistance and boost employee engagement.

Ultimately, successfully undergoing digital transformation requires a commitment to not only integrating advanced technologies but also empowering employees to thrive in an evolving landscape. By doing so, organizations can fully unlock the potential of new tools while cultivating a resilient and innovative workplace culture.