Culture change is key in digital transformation

Culture change is key in digital transformation

Culture change is key in digital transformation

Culture change is key for any digital transformation initiative

Why is culture change essential for digital transformation

What is digital transformation? There is a lot of talk at the moment about this process, where an organization overhauls its capabilities in order to reach digital enlightenment.

Corporate culture plays the most important role in digital transformation

The shift from one business to another is often accompanied by a need for people in the organization to adopt new processes, ways of working, and approaches to break down silos and relate differently to customers.

“Organization”, in this context, means much more than the actual structure of the company, with its hierarchy of responsibilities and departments. Organization, in a digital transformation world, includes the work culture and the set of practices and attitudes that are key to executing digital transformations.

The hardest part of a successful digital transformation is the cultural piece

Shortcomings in organizational culture are one of the main barriers to company success in the digital age. That is a central finding from McKinsey’s survey of global executives, which highlighted three digital-culture deficiencies: functional and departmental silos, a fear of taking risks, and difficulty forming and acting on a single view of the customer.

Although culture change is critically important to transformation, it is difficult and time consuming to achieve. But there’s no way around that!

Culture change is key in digital transformation - Mind tha gap

Culture change is key in digital transformation

Building a culture of constant change – a state of constant revolution is key. Companies don’t make a change and then just sit back and wait for the next five years of business as usual – these days are long gone. There is a need to build a new momentum and rhythm in the business that reflects the new reality of the industry in which they are operating.

Digital strategy: It’s about company culture

Digital transformation isn’t really about technology it’s about organizational agilityorganizations culture plays a vital role in the digital transformation of any business.

Culture leads the adoption of technology. The ability to innovate depends on the impatience of the organizational culture.

Analog organizational culture vs digital organizational culture

Analog CultureDigital Culture
DefensiveAttack
Customers are distantCustomer centric
Data measures past performanceData used for live insights and decision-making
ReportingReal-time
Detailed business case requiredLean product canvas
Risk averseFail faster
Focus group insightsFrequent user testing
Market researchListening and learning
Org chartMinimum hierarchy
Department silosCross-functional teams
In-house is bestNetwork of expertise
Our offerCustomer needs

→ Make sure to read: 9 ways digitalization is disrupting your culture, and 3 ways you must respond

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About The Author

Torben Rick

Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement, development and change management. International experience from management positions in Denmark, Germany and Switzerland.

Blog Comments

Torben: Good article. My question, based on your chart, Analog vs Digital Culture, do you see a difference between implementing a digital culture and an organization/culture based on Agile?

Oh, you are absolutely right. Organizational agility is key to any transformation process. You would expect this in tech startups (and I guess in most of the cases you’re right to do so), but I’ve worked in two different startups, where you would tech-scepticism and rejection of modern concepts of work (like remote work etc.) behind a thin layer of young coolness.

So, thanks a lot for sharing this great article!

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