Setting expectations: The bedrock of digital transformation success
ITWeb sat down with Bruce Moepye, MD of Gen2 Enterprise Services, a division of the Gen2 Group, to talk about how important it is for a business to set expectations upfront when embarking on a digital transformation journey.
Moepye starts out by drawing an analogy with his endeavours to hire a new gardener a few years ago. He says: “During the interviews, the gentlemen were upfront about their requirements: a daily rate, breakfast, lunch and even a bar fridge for fresh milk. This was new to us, as previous workers had always brought their own lunch. However, these clear expectations ensured a smooth working relationship. This experience often makes me ponder why, in the realm of technology investments, we sometimes fail to set clear expectations upfront.”
Digital transformation is a strategic endeavour, driven by organisations with clear outcomes in mind. The team is carefully selected, and the tools are chosen for their ability to deliver these outcomes. However, how often do companies set their "price" upfront when embarking on digital transformation projects? Here, setting the price refers to establishing guardrails regarding resources, ROI, timelines, benefits tracking and focusing on the people aspect beyond just technology.
The importance of clear expectations in digital transformation
Since the COVID-19 pandemic, many organisations have had to adapt quickly to new technologies. Those without a digital transformation strategy were caught off guard, facing psychological and emotional barriers and resistance to new technologies. Investments in tools must be accompanied by a clear understanding of how value will be tracked, what benefits will be derived and the timeframe for realising these benefits.
KPMG's 2023 Global Tech Report highlights the impact of digital transformation. According to the report, most financial services executives surveyed noted improved performance and profitability over the past 24 months due to digital transformation. The greatest improvements came from investments in data and analytics and anything as a service (XaaS) tools.
Challenges in maintaining continuity
“As a consultant in both the private and public sectors, I am often puzzled by how a new appointment to a leadership role can disrupt an organisation's digital transformation journey. Despite the potential benefits – such as increased productivity, improved efficiency and cost-cutting – new leaders can easily abandon these efforts. These disruptions are rarely data-driven, but often stem from personal preferences and unfamiliarity with existing systems.”
Addressing the disruption caused by leadership changes requires effective communication, strategic planning and proactive management of transitions. Organisations can mitigate negative impacts by providing clear guidance, fostering transparency and engaging stakeholders. Investing in leadership development and succession planning ensures smoother transitions by grooming potential successors and preserving institutional knowledge.
The role of centres of excellence
Centres of excellence play a crucial role in managing digital transformation projects. They ensure continuity and effective change management. However, proactive transition management often excludes existing tools, leading to frustration among users. Continuous measurement and feedback are essential for assessing progress and making necessary adjustments. Research suggests that organisations monitoring key performance indicators (KPIs) related to their digital transformation initiatives and using feedback to adjust strategies are more likely to succeed.
Combining human and technological factors
Successfully combining human factors with technology components is key to meeting organisational strategic objectives. As implementing partners in digital transformation efforts, how can we help our clients stay the course? Digital transformation requires a strategic vision, commitment and flexibility. By following an agreed roadmap, organisations can navigate challenges and achieve significant improvements in efficiency, customer satisfaction and competitive advantage.
To achieve these benefits, strong governance structures are essential. A digital transformation office and a steering committee provide oversight and continuity during transitions. Developing succession plans and comprehensive onboarding programmes for new leaders minimises the risks associated with management changes and ensures continuity.
In conclusion, setting clear expectations upfront is crucial for the success of digital transformation projects. By establishing guardrails, focusing on both technological and human factors, and maintaining continuity through strong governance, organisations can realise the full potential of their digital transformation efforts.
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