Intervention

Why change management is essential in corporate digital transformation

The correct approach to organisational change is crucial for the success of technological innovation projects in the company

by Pasquale Lambardi*.

5' min read

5' min read

70% of digital transformation projects in companies fail because they are not accompanied by a proper change management approach. This figure from a McKinsey research immediately gives an idea of the importance of a change adaptation path for the success of any technological innovation project in a company: a path that, to be truly effective, must start with people, before processes and technologies.

Without involving people, the introduction of new technologies risks not achieving the desired objectives. And it may happen that technologies are 'suffered' rather than welcomed as agents of transformation. Acting correctly on culture, on the other hand, makes it possible to make people understand the logic of the new processes, to bring together different roles and to make people an active part of the change, overcoming obstacles that are almost always organisational rather than technological.

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People in the Centre

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For this reason, even before hardware and software solutions, it is necessary to start with the 'human factor', that is, the education of people, with training, sharing, listening, active involvement, which make them touch the technologies from a practical point of view, based on the use cases of the specific company. In this way, it is possible to understand the concrete advantages of digital technology and overcome the resistance even of those who are afraid of the new, fear losing their position or, trivially, find it difficult to leave their comfort zone.

It is often thought that the introduction of technology in a company is primarily a matter for IT. But in a process of this kind, different corporate functions must be involved, creating cross-functional teams that speak a common language. In addition to IT, this must include human resources and, necessarily, top management, which must be the first sponsor of the initiative. Key-users" and "change agents" must be identified and brought into the project team to be promoters of change.

But how does one structure a change management process to support digital innovation projects? It depends from case to case, depending on the specificities and challenges of each company. There are organisations that are ready for innovation, others where resistance is encountered, so it is important to carefully set objectives and tools according to the specific situation. However, based on our experience as digital transformation partners, there are some common steps on a structured and consistent path to successful change.

The first stages

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The first step is an initial analysis, mapping the current state of the organisation and assessing the readiness for change, i.e. the level of preparedness and readiness for transformation. At this stage, it is crucial to appoint a top sponsor and ensure the full support of top management, with alignment from the very beginning.

The second stage is the definition of a clear and shared vision of the change, designing in detail the initiatives needed to achieve it. This stage requires setting clear and measurable 'smart' objectives on the actions to be introduced and identifying some key stakeholders to be involved in defining performance indicators. Without these conditions, it is not possible to ultimately measure the success of the project.

The third phase involves communication and active involvement of staff. It is essential to inform people in a timely and transparent manner of the transformation taking place, to collect and listen to feedback from employees, and to motivate them to participate as protagonists. With the involvement of corporate HR, training is activated, with a participatory approach, to reduce resistance and ensure that everyone understands the 'why' of the project and their role in the process.

Implementation, consolidation and revision

At this point, the time comes to introduce the digital solutions and new practices in a progressive manner: an initial pilot project is built, followed by a staggered roll-out, to field-test the new solutions in a controlled environment, making corrections if necessary before extending the change on a large scale. In this phase, 'super-users', i.e. trained and experienced users who represent reference points for colleagues, can be involved to facilitate the adoption of the new practices and encourage the spread of expertise. It is crucial to understand whether there are any 'early adopters' of the new practices, integrating them into the project team and making them advocates.

Once the new digital solutions are introduced, the results must be reinforced by offering continuous support. A feedback culture is crucial. And in the post-implementation phase, it is indispensable to highlight and valorise the so-called 'quick wins', small successes achieved, which fuel confidence and involvement in the change. But constant coaching through targeted coaching of teams is equally imperative, so that the new practices are permanently integrated into day-to-day activities and the transition is sustainable in the long term.

The change management process cannot be said to be finished without a final evaluation, which allows learning from the experience. At the end of the project, it is necessary to measure the results achieved, e.g. through ROI analysis, verifying the return on investment and the achievement of set objectives. Lesson-learned sessions are then useful to identify key lessons. This phase culminates with a formal closure of the transformation project, which sanctions the transition of the change and provides a knowledge base for subsequent projects.

Change management and AI

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A change management process is indispensable in projects to introduce artificial intelligence into organisations. Advanced technologies such as generative AI - capable of revolutionising the very way we work - require a important change of mindset on the part of people, who must fully understand the benefits of the new tools, use them in the most effective and conscious way, and also avoid potential risks on privacy and cybersecurity, based on the AI Act.

Managers called upon to introduce AI into organisations often find it difficult to fully understand the technology, due to a lack of skills and experience, but also because adoption involves stepping outside established habits and procedures, leaving the comfort zone. The challenge is precisely this: to accept the change, to set the corporate culture, to make people participate and to ensure that, at the end of the process, the adoption of AI falls within a comfort zone.

A training course that aims to promote change from within, after classroom courses and workshops, can end with project work by the company's own people, who become promoters of the innovation enabled by artificial intelligence. Through a structured change management course, people can accept the challenge of AI and make its use an integral part of their daily activities, entering the company's core business, making work more efficient and truly improving productivity.

*Chairman of Relatech SpA

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