Digitally Focused
Digitally focused articles in support of changing and innovating global organizations
through digital technologies, processes changes and enhanced people skills.
How Change Management can Support Digital
Transformation
March 27, 2017
When I meet with clients or colleagues I like to ask them for their definition of
digital transformation. It varies widely from department to department and
leadership to rank and file. The definition I share with them is "comprehensively
changing business processes and or experience journeys by integrating digital
technologies, processes changes and people skills, with the intent to create
competitive advantages and accelerate profitable growth."
Comprehensively is the key work. The online definition of comprehensive, "in a way
that includes or deals with all or nearly all elements or aspects of something." So
digital transformation is about big change across a process, line of business,
division or company.
Digitization is about automating processes. Applying technology to do things faster,
smarter and with a higher quality than humans can do. This is more limited
execution versus a transformational effort.
Another angle of digital is application modernization, which is about upgrading
frameworks, language and relationship to an architecture. This could be a piece of
digital transformation as part of a larger transformational effort.

As the core of digital transformation, technology will enhance an existing process,
replace an existing process, or it could be an entirely new business process. In any
of these three possibilities, process is going to be effected. When processes are
changed or introduced, they will affect people at some level too. This could be a
reduced role, an enhanced role or a completely new way of someone doing a job. In
any of these scenarios, training and or awareness will be needed.
Unfortunately, many companies don't realize the complexity of digital
transformation. According to PwC's Global Digital IQ Survey, more than 50% of
executives say their businesses are not focused on executing their strategies, and
few are able to bring their digital ideas to market in line with their vision. See my
article Digital Delivery: Closing the Business­IT Gap
In this article I talk about the gap between business and IT, and the lack of an
enterprise view and lack of detailed use cases. The lack of a change management
plan is the third reason why companies are not able to bring their digital ideas to
market. The recommended enterprise view provides vision for the technology, and
use cases provide detail around processes and people. A change management plan
puts it all into action.
Change management as the name states is the management of change. While
transformation is comprehensively changing something. The two efforts are
intertwined by change. In order to increase the chances of success when introducing
digital transformation, you need to have a strong change management plan.
Companies and individuals inherently resist change. Here are Eight Reasons for
Resisting Change (Schermerhorn, Hunt, & Osborn, 2005):
Fear of the unknown
Lack of good information
Fear of loss of security
No reasons to change
Fear of loss of power
Lack of resources
Bad timing
Habit
The good news though is that even though "we" have these reasons not to change,
we are also wired at the same time to be able to change and adapt. We can change

and adapt by repeated experience of the experience itself. The key is to get the new
experience introduced in the first place. Therein lies the need for a solid change
management plan that addresses the reasons like those stated above, and gets the
change into the hands of those affected by the change.
So a change management plan that parallels a digital transformation effort is
critical. The following is a framework for a change management plan.
1. Defining measurable stakeholder goals ­ What are the sets of quantitative and
qualitative goals by stakeholder? How can each functional area point to and
understand the benefits they will get.
2. Creating a business case which is continuously updated ­ What is the rationale
for a digital transformation initiative in the first place? What is the overall
benefit to the company and the employees short and long­term. Show the
plan and how the company is going to be able to execute.
3. Monitoring assumptions, risks, dependencies, costs, return on investment, and
cultural issues ­ Digital transformation is dynamic so keeping track in real­
time will help to keep the efforts from being derailed. Show progress and any
wins along the way.
4. Creating communications that informs various stakeholders of the reasons for
the change, the benefits of successful implementation, as well as the details of
the change ­ This is absolutely critical to execute well since it can address
many of the reasons for resistance to change. Communicate to all of those
affected.
5. Devising an effective education, training and/or skills upgrading scheme for
the organization. ­ Digital transformation affects people, so show in detail the
plan for those affected in getting up to speed.
If you want to be in the 50% group that are able to bring their digital ideas to
market in line with their vision, then a robust change management plan should be
created in parallel to a digital transformation effort. The two efforts are intertwined.
Use change management plan each and every time, and adoption will go smoother
and quicker.
change change management digital digital transformation scott alexander
Location: Philadelphia, PA, USA

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SCOTT ALEXANDER
Scott Alexander is a Creative Digital,
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