How people can make or break a digital transformation


21 Mar 2024

Image: Drew Morahan

Codec’s Drew Morahan explains the ADKAR method for successfully managing people during a transition.

It’s easy to forget that people are at the centre of any technology; they design it, they pay for it and they are the ones that use it. But often, organisations fail to consult the people involved and blindly implement state-of-the-art solutions. The result of which is that they fall short of their goals because they underestimate the human factor in digital transformation.

Undertaking digital transformation can be a substantial investment of time, resources and money. Organisations can plan a project to the nth degree when it comes to software, project management and timescales, but then fail to recognise the impact that the people involved in the project have on its potential success or failure.

In fact, a study by McKinsey in 2021 reported that 70pc of digital transformation projects fail, with one of the key contributing factors being organisations failing to get employees onboard. Without consulting the people at the heart of the business, technology roll-outs often have limited success.

Change management

This is where change management is crucial. Change can prove difficult for many people, so it’s important to engage with all stakeholders ahead of project roll-out, to understand their concerns and motivations, and to systematically address these.

Utilising tools to foster positive conversations around proposed changes helps organisations to minimise the fear factor and get all stakeholders moving through the change curve together in a positive and purposeful direction. Workshops are helpful in better understanding the needs of stakeholders and concerns, and in opening dialogue on ways to overcome these.

A stakeholder analysis sounds very formal, but it’s simply an opportunity to look at the human side of the project; getting to know those people who might be impacted by the project to gain a better understanding of their nuances can be the difference between a successful adoption and a failed project.

ADKAR methodology

It’s important to understand where people are within the change curve and guide them through the process while providing the support that they need.

Employing a process such as the Prosci ADKAR methodology gives a structure and formality to the project which can provide support.

Achieving each of the five outcomes of this process; awareness, desire, knowledge, ability and reinforcement is vital for change to be effective and consciously working through these outcomes puts stakeholders on the right path to successful adoption. Ultimately, the methodology aims to establish trust and allow change to be embedded faster and with a better rate of adoption.

The first step of the ADKAR methodology is to raise awareness of the need for change. Announcing the change to employees well ahead of time is important so that all parties can adjust, ask questions or make suggestions ahead of a roll-out. Highlighting the business case as well as the pain points that team members may feel helps to initiate the process. The key outcome for this initial stage is understanding; both for businesses to understand the concerns of team members and for team members to understand the proposed changes and why they are being made.

The second stage is desire. This is an opportunity to gauge reactions to the proposed changes and identify allies or champions within the organisation as they will be crucial to help adoption, particularly with those more reticent to change. Appealing to both the emotional and logical sides of all involved can prove challenging. However, identifying allies or advocates within the team can assist with this stage. Those engaged and excited to try new ways of working can often recruit more allies through their enthusiasm.

Knowledge forms the third pillar. Offering training or workshops on the proposed technology will help assuage the concerns of those who aren’t familiar with the software and identify any skills gaps that can be addressed ahead of a full roll-out. Fear is often attributed to the unknown, so introducing all parties to the new technology in a safe test environment helps build familiarity and recognition.

Ability is the natural progression from the knowledge phase; this is where you assess the abilities of stakeholders in relation to the new processes and technologies. This can prove a challenging period but a necessary one to gauge the capabilities, the required training and the overall attitudes of stakeholders.

The final stage of reinforcement ensures that the changes are successful and remain so. Measuring the adoption of the new technology and potentially incentivising it can help make the new way of working more ‘sticky’ now and in the future.

Fostering a transformation culture

Fostering a culture of innovation and adaptability is central to a successful digital transformation. Having team members who thrive on innovation and change leads to a more successful project and overall business success.

Often people are unsure of how much – if any – of their digital transformation budget to set aside for change management. This can vary from project to project, but the more that is invested, the increased likelihood of success. Some businesses may feel that if they don’t have a multiphase, multimillion project then there’s no point, but that’s certainly not the case.

When organisations investigate change, they see not only the benefits, but also the obvious risks that need to be addressed to ensure a successful transformation. This gives them an opportunity to alter the proposed design before implementation.

A business trying to roll out a digital transformation with no buy-in or understanding from its stakeholders is doomed to fail. However, with a managed approach, organisations and their digital partners can engage with advocates who in turn become change champions.

Communication is key

Communication is a fundamental pillar in overcoming resistance and encouraging adoption. Stakeholder engagement is key to better understanding the pain points and designing a solution that addresses and overcomes these. It’s important to evaluate the dynamics and needs of the various stakeholders, and to create a communications plan to meet these.

Adoption checkpoints are incredibly valuable in a roll-out as they give all parties visibility of the stages of the project. In advance of ‘go-live’, the checkpoints demonstrate the stage of the project, and adoption monitoring in the months after roll-out gives the technology partner a chance to check in and provide support to users.

The ultimate metric is a successful roll-out with user adoption and return on investment. The importance of bringing your people along on every step of the transformation journey should not be underestimated.

By Drew Morahan

Drew Morahan is head of business change and design at Codec Ireland, a leading IT company that delivers innovative solutions on the Microsoft low-code platform.

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