Each time a technology trend sweeps across the corporate landscape, lots of money gets spent. Executives, often at dysfunctional or struggling organizations, hope that dropping lots of new systems and software on top of their realms will deliver overnight success. These days, such is the case with companies seeking some form of digital transformation.
That's the word from a recent survey of 450 executives by Celonis, which found a sizable number of executives aren't quite sure where to begin with the whole thing. At least 45% don’t know where to start when developing their transformation strategy. Worse yet, more than four out of ten (41%) senior leaders believe that their business transformation has been a waste of time.
It's a matter of leaping before they look. Almost three quarters, 70%, intend to invest in AI, machine learning and automation. Yet, only 32% intend to invest more in getting better visibility of their processes. In addition, 79% admit they do not review their internal business processes to understand what needs to be prioritized when setting initial goals and KPIs for a transformation effort. Sixty-seven percent agree, however, that things would go smoother with their digital initiatives.
Such a lack of visibility leads to low levels of confidence as well. "The danger is that with a lack of focus and visibility comes a perception that business transformation projects have not delivered," the report's authors point out. "Those leaders wanting greater visibility are also more likely to believe their efforts have come to nothing, whereas those on the frontline are less pessimistic, with just 32% (versus 44% of the C-suite execs surveyed) believing it has been a waste of time."
Eight out of ten executives go further to admit they do not review internal processes before setting transformation goals. That's because too "many businesses are rushing into costly initiatives that they do not necessarily even need to embark on," the survey's authors state. A good place to start, they add, is "developing a better understanding of inefficiencies in underlying business processes, to invest wisely to provide the best possible service for their customers.”
To get there, open and deep communication is key, the survey's authors urge. "For true change to be realized, C-suite execs need to talk to their employees, and involve them in the identifying, analyzing and designing of processes. If the transformation is siloed from the workforce, any processes that aren’t user-friendly will simply be circumvented by unofficial workarounds."
Of course, open communication lays the groundwork for other steps that need to be taken to make digital transformation a moneymaker, not a money pit. For more insight on what further actions need to be taken, we turn to recent research from McKinsey, which provided some guidelines as well:
Have the right, digital-savvy leaders in place: "Less than one-third of all respondents say their organizations have engaged a chief digital officer to support their transformations. But those that do are 1.6 times more likely than others to report a successful digital transformation."
Build capabilities for the workforce of the future: "Companies with winning transformations have a better-funded and more robust approach to talent than others do. Transformation success is more than three times likelier when respondents say their organizations have invested the right amount in digital talent."
Empower people to work in new ways: "Respondents who say their organizations established at least one new way of working, such as continuous learning or open work environments, as part of their change efforts are more likely than others to report successful transformations."
Give day-to-day tools a digital upgrade: "An increase in data-based decision making and in the visible use of interactive tools can also more than double the likelihood of a transformation’s success."
Reimagine your workplace: "The workforce implications of digitization, automation, and other technological trends are significant, and companies will need to invest in and hire for radically different skills and capabilities."
Upgrade the organization’s hard wiring: "Since not all leaders will have the experience to support or enact such changes, dedicated leadership-development programs could help leaders and employees alike to make the necessary shifts in mind-sets and behaviors."
