Digital transformation is a vital process for any organisation aiming to stay competitive in today’s environment. It involves integrating digital technologies into all areas of business, fundamentally changing how you operate and deliver value to customers. Despite its importance, many digital transformation initiatives fail, often because they overlook the human element. Organisations around the world are expected to spend almost $4 trillion on digital transformation by 2027 but on average, 87.5% will fail to meet their objectives.

What Is Digital Transformation?

At its core, digital transformation involves shifting from traditional processes to more modern, tech-driven ways of working. This might mean adopting cloud computing, leveraging AI, or rethinking communication through digital collaboration tools.

However, digital transformation isn’t just about technology, it’s about reshaping the culture of your organisation, enhancing the way teams collaborate, and aligning systems to business goals.

Why Current Approaches to Digital Transformation Fail:

Many digital transformation efforts fail because they focus purely on the technical side of things and overlook behavioural insights.

Here are some key reasons why:

1. Lack of Behavioural Insight:

Many organisations don't take into account how managers and teams respond to change, before rolling out a piece of digital transformation, which is a significant oversight. It is imperative that you understand how your people need to receive change, and then deliver the digital transformation in line with that for maximum integration.

2. Change Fatigue:

If an organisation has already gone through several changes (restructuring, new tools, etc.), team members can experience change fatigue. This is particularly true for teams with high levels of reflective behaviours, who may feel overwhelmed by constant changes without the necessary time to adjust.

3. Top-Down Approach:

Digital transformation efforts are often rolled out as top-down mandates without much input from managers or teams. This neglects the fact that often middle managers and team leads can add valuable insight about their teams that can significantly impact how a digital transformation project is rolled out.

4. Failure to Align with Daily Realities:

Digital tools may promise efficiency, but they often don’t match the specific workflows or day-to-day challenges people within the organisation face. This mismatch causes frustration and limits adoption. By taking the time to really understand team behaviour, you can then understand how tasks are approached, allowing you to tailor digital tools to their specific needs.

Behavioural Insights: A Key to Successful Digital Transformation

To overcome these barriers, it’s crucial to conduct behavioural work before rolling out any digital transformation project. Understanding behaviours can provide a roadmap to ensuring smoother adoption and long-term success.

Key Behaviours to Consider:

Understanding the behaviours in your leaders and managers who often lead change roll out, and the team members who are then receiving the change, is imperative in building a successful change rollout plan.

1. Initiation vs. Reflection:
   • Initiation managers jump at the opportunity for change, but without proper guidance, they may push the transformation too quickly, creating resistance in their teams.
   • Reflective managers, who take a 'wait-and-see' approach, are often more cautious. Involving them in the early stages of transformation allows them to raise valid concerns and test solutions in real-world settings before widespread implementation.
2. Internal vs. External Frame of Reference:
   • Some team members rely heavily on external validation, needing data or approval from others before committing to a decision. Digital transformation strategies should highlight success stories and clear, evidence-based benefits to really engage these people.
   • Team members with an internal frame of reference may be more inclined to trust their own instincts, so your communication needs to focus on how digital changes will personally benefit them and their work.
3. Choices vs. Procedure:
   • Team members who are 'Choice thinkers' thrive in flexible environments where they can explore different paths. These individuals may prefer more open-ended tools that allow customisation.
   • On the other hand, 'procedure thinkers' work best with clearly defined steps. For them, digital transformation must be accompanied by detailed guidance on how to use the new technology, complete with best practices and training.

Preparing Your Team for Digital Transformation:

By conducting behavioural work beforehand, you can address concerns before they turn into barriers.

1. Assess Behavioural Readiness:

Conduct a behavioural audit to uncover your team's behavioural strengths. This will help you understand how each team is likely to respond to change and allow you to design a tailored approach to the digital rollout.

2. Engage Managers Early:

Instead of a top-down digital transformation mandate, engage managers early in the process by asking for their input. This will make the transition feel more collaborative and less like an imposition, especially for managers who prefer a team-oriented approach.

3. Incorporate Behavioural Insights into Roll Out and New System Training:

Any digital transformation rollout should incorporate behavioural insight for maximum adoption. For instance:

• Procedural teams will require step by step processes for new systems or tools.
• Initiation teams might prefer on-demand, self-paced learning modules on training of new systems.
• Reflective teams may need smaller training sessions or rollouts with time in between to reflect and analyse before a follow up activity.

Conclusion:

Digital transformation is as much about people as it is about technology. To truly succeed, organisations must move beyond the standard top-down approaches and integrate behavioural insights into their transformation strategies. By doing the behavioural work before implementation and understanding your team's behaviours, you can ensure a smoother transition, mitigate resistance, and set your team up for long-term success.

If you want to discover more about how behavioural insights can transform your team and help drive digital change, book a demo above today.

‍