Why Businesses Struggle With Digital Transformation

Digital transformation seems to be the answer to every business problem today. From the outside looking in, every other business has figured it out, implemented it effectively, and is realizing significant value. Have you found that your company struggles with new implementations? You absolutely are not alone, in fact, the majority of businesses struggle with digital transformation. Whether the technology is too complicated or implementations hit snags, many businesses find that employees are simply resistant. Solutions you thought would enhance business value are not the panacea you hoped for. This blog post will discuss one of the major reasons why businesses struggle to adopt and implement new technologies; employee resistance.

People are resistant to change in general.

In most cases, new technology results in significant changes to the way that employees work are accomplished on a day-to-day basis, potentially not only the tools but the process or structure of their workflows as well. Inevitably this creates frustration and resistance because people are hardwired to resist change. We all know that feeling of fear we get with the unknown, whether it be starting a new job or simply doing something new. Think about some of these times in your life, where I’d bet your mind conjured up every possible way it could fail. Even if you push through and accomplish what you set out to do, we all experience that fear of the unknown. When it comes to digital transformation in your business, your entire team is probably feeling this in some capacity or another. This presents a major psychological hurdle to overcome to create buy-in from the team overall.

This means having an open discussion with your team about their concerns and talking through the issues to make them feel more comfortable. It will likely be many conversations, both formal and informal, over a period of time as resistance will mount from different team members at different times. Some people will have concerns right away, wanting to troubleshoot every possible issue before the project gets started. Others will jump in the water headfirst with excitement, only to later find out they struggle utilizing the technologies getting frustrated later. Getting buy-in at the outset is vital, but equally important maintaining team morale as the headaches mount during implementation and rollout of new systems.

Employees don’t see the value, because the value is a long-term benefit.

Another major reason why digital transformation projects struggle with employee resistance is because employees don’t see the value in it. This can arise for a few reasons, but often it is because that they haven’t been sold on the benefits of the software to them personally. Plainly, they cannot see how it benefits their day-to-day work because they are comfortable with and understand the current state of operations. Sometimes it is difficult to grasp or fully appreciate what value they can realize for their own daily workload.

Care should be taken to sell your team on the value not only at the team level but for each team member individually. Otherwise, you’ll find resistance grows over time until a point you realize the new technology isn’t providing nearly the value you hoped. While employees will likely acquiesce because they aren’t given an option, they won’t fully embrace the technology to maximize the benefits. Without good team engagement/commitment, the technology will probably be severely underutilizing. It becomes a self-fulfilling prophecy that because employees didn’t see the value in it, they didn’t embrace it, and then they don’t realize its value.

It is a lot of work to learn new systems and processes

Implementing a new technology is hard work. Employees will need the training to learn how it affects their day-to-day job. This usually starts with a classroom-style training course for your team, which 1) takes time away from focusing on what’s already on their plate and 2) only teaches the basics. Employees will likely struggle for some time with errors and inefficiencies because they only have a limited understanding at the outset. Most of us have had the experience that it requires time actually working within a system to get comfortable and functional in its use. Until that point where team members get proficient, frustrations and resistance will recur. Further, to optimize new systems and realize the most value it takes a high degree of commitment and energy over a sustained period of time. When employees already feel overwhelmed with a full workload, asking to layer this on top may feel like too much.

It is no wonder that employees are resistant to something that 1) adds more work to an already overwhelming workload 2) they will not be comfortable with it initially and 3) there will be errors, inefficiencies, and issues to troubleshoot.

Using a piecemeal technology approach creates unexpected issues

Businesses often start with a piecemeal approach to implementing new software or technology. They’ll look at the functionality and benefits of each tool in a vacuum and choose the best solution. But this creates problems down the line as companies become more reliant on their tech stack being fully integrated. For example, if you have several tools that have slightly overlapping functions then your employees can become confused about which one to use in what situation. Multiple softwares need to be in sync with each other to allow data to flow seamlessly. Using a reliable tech stack that is commonly used together offers the benefit that the softwares have been optimized to function in harmony with each other. Additionally, if it’s a commonly used tech stack, other businesses have likely run into the most common problems you might encounter meaning it has already been fixed, or 2) someone has already figured out how to troubleshoot it and the solution is likely readily available.

When businesses don’t think holistically their digital transformation results in a hodgepodge of various technologies and when issues arise there aren’t nearly as many resources to rely on to troubleshoot. Having to figure out and solve problems when they arise is a lot more taxing mentally/emotionally on your team than following someone else’s steps that have already solved the problem separately. It also saves significant time because

It is better to optimize for the needs of the business or department as a whole rather than selecting any individual solution based on its merits alone. When softwares are selected and implemented without proper forethought, you’ll find that employees are resistant. It may not be at first, but resistance will mount over time as they continue to experience headaches because the systems aren’t functioning cohesively.

Employees fear being replaced by digital technologies

Employees are afraid that new technology will replace them. They’re not completely wrong to feel this way since many companies see technological advances as a competitive advantage and use them for cost-cutting measures. This fear is only amplified when management speaks about digital transformation but doesn’t provide specific details on how people’s roles might change because of these advancements.   Employees need to know what will happen if they embrace the coming changes and what they will mean for their role. Ideally, management has considered this and develops a plan to utilize the current staff with higher value responsibilities. Doing so offers a win-win for the business and employees because employees reallocating their energy to more valuable efforts enhances business value as well as allows employees growth. Framing digital transformation not as a cost-cutting measure but as a way to create opportunities for growth can make all the difference in whether employees resist or embrace digital transformation.

In conclusion, one of the primary reasons businesses struggle with digital transformation is because employees are resistant. The level of employee engagement and commitment is the primary driver of success with your digital transformation. Best practices for your department’s digital transformation must include consideration of these key pitfalls and avoiding them will go a long way to avoiding any employee resistance.

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