To be a ‘value-creator’, leaders should avoid four deadly traps of digital change that can ‘rob’ their organization of important value.

Organizations can be described as three pillars of capacity – people, process and technology. For an organization to be effective, it must effectively respond to both internal constraints (such as strategy or operational priorities) and external constraints (such as government regulations and market demands). To achieve this, there must be sufficient capacity in each organizational pillar. Most importantly this capacity must integrate together.

A simplified example… any increased capacity in the technology pillar must align with business processes and be supported through the right level of people capability.

So, what is the impact of increasing your organization’s digital investments?

A strategy to increase investments in digital technologies is a decision to increase capacity in the technology pillar. Organizations will usually require some work effort in the integration of new technology within the organization before value can be realized (better customer experience, improved efficiency, lower costs for example).

But where should leaders focus their efforts? The most obvious area of focus is the integration of new technology with existing. It’s a technology project after all! Right? Well… kind of… At an organizational level, the implications of new technology can be just as large in the process and people pillars. A lack of understanding about the importance of integrated digital changes can result in leaders falling for four common traps in judgment.

Trap 1

Failing to assess the impacts of digital investments on their organization’s workforce composition. Substantial digital investments can alter a business model. A new business model may require people with a different range of skills and experience. Without appropriately addressing the workforce-related impacts of digital change, confusion about people’s roles and responsibility can lead to reduced organizational effectiveness and associated cost issues.

Trap 2

Failing to create sufficient alignment and integration of business process with digital systems. Too often people falsely believe that systems and processes are the ‘same thing’ – they use digital systems with minimal awareness about the impact of cross-functional work within the organization. Without the integration of systems with business processes, your organization’s digital investments will rarely create their intended value.

Trap 3

Assuming that people change will ‘take care of itself’. What is the value of a system that doesn’t get used? Not much. Systems require that people in the organization utilize the system in its intended way before the value in these systems can be realized. Too many leaders assume that people will see the benefits of the digital changes – just like they do. ‘Poor judgment’ about change adoption is the number one reason behind the appalling record of IT departments around the world to create value instead of ‘techno-gadgets’.

Trap 4

Don’t assume that leaders know the importance of their role in supporting digital change. Leaders clearly play an important role in supporting the vision for change in their organizations. Digital change is no different. Leaders in all parts of your organization must have ‘the language’ to express the importance and reasons behind any digital changes. Failing to equip fellow executive colleagues with the confidence, language and an understanding of their role to support digital change can be a big mistake! When it comes to creating effective digital transformation – it’s a team effort.

So, here you have the four deadly traps of digital change. Which traps are causing your organization to lose-out with its digital change?

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