Your Digital Modernization and Transformation may need some Tough Love?

For over two decades, organizations have recognized that technology is no longer a support tool to run their business. The Leaders that will lead tomorrow's top companies have recognized that their businesses are digital and their products are sold through technology. Some organizations continue to spend thousands (and millions) on digital transformations, yet remain in the chasm of change and not getting the required momentum. Through many lessons learned, here is a checklist to evaluate if your company is ready to move through transformation and modernization.

1. Case for Change: Is there a compelling reason to make the change? We know we need to change is not enough.

2. Employee Buy-In: They will be executing the change. Are they ready or will they resist?

3. Amount of Change: Do you have a lot or a little change to make? Are you changing strategy, technology and culture? You may need to consider the support needed to drive change quickly.

4. Leadership Team Style: Are they comfortable in allowing change to happen or do they need certainty and control of outcomes?

Case for Change

Do you have a compelling case for change? If you are unable to deliver a compelling vision, it will be difficult for your leaders and employees to know what decisions should be made differently. If you don't have a compelling case of change (beyond, we want to be relevant) then take the time to evaluate the reason for change. Reasons for change may include -

• Change to Strategy - Are you losing market share? Is there a start-up about to eat your lunch?

• Change to Technology - Are you on needing to move to supported and secure platforms? Are you able to protect the privacy of your data/clients? Are you able to adapt to market changes quickly? Are you able to extend your offerings easily? Is your on-premise infrastructure too expensive?

• Change to Culture - Do you need to change to an adaptive and growth-minded workforce? Do your employees continue to stay current on technology, products and growth opportunities?

Depending on the amount of change, and dire need for the change, will help guide you to next steps. If you have a compelling case then create a crisp message. If not, consider the change as 'projects' and avoid the label of 'digital transformation'. Evolving in place, may give you the right path of success without disrupting or distracting your organization with a red-herring. You may not have 'digital transformation' on your resume - but a successful set of outcomes may be a greater win than a failed transformation.

Employee Buy-In

You may have a dedicated and loyal workforce. As Marshall Goldsmith suggests, "What got you here, may not get you there". This does not mean that people are unable to participate in the journey. It does mean that you'll want to ensure that you have a high-level of trust and willingness of change. Some questions to ask yourself -

• Is there trust in your organization?

  • Do people meet in person? (Formally or Informally or Both)

  • Do people turn on their camera?

  • Do you have 'direct' questions in your Townhalls?

  • If an employee is upset, are they comfortable in reaching out to their leaders directly for a frank conversation? And are leaders accepting of these frank conversations?

• Is there openness to change?

  • Do people understand and appreciate the case for change?

  • Are people willing to adopt to new processes?

  • Are people willing to adapt their current roles to meet the implementation of new strategies and new technology?

  • Are people willing to accept help from the outside and willing to open their kimono and make outsiders successful?

  • Are people talking directly to their managers about their fears or concerns on change ... if they are 'grieving change' in open forums, they may not be open to change.

  • Are leaders willing to share their fears about the change?

Amount of Change

The greater the change, the more external support that you will require as "what got you here, won't get you there" (Marshall Goldsmith). This is usually hardest part for leaders to self-evaluate. Consider asking your clients and distributors this question and seeking an external, unbiased perspective. Based on the amount you need to change to stay or gain a leadership position, consider if you need an internal or external change leader.

Should you go internal?

If changing only one aspect of your organization, you can typically leverage an internal change agent. The person leading the change will know the people, current technology and current products/markets best.

• Does your strategy need to change? Does being a digital company change how you position yourselves in the market? Do you have new and upcoming digital competitors? (e.g. you are no longer selling insurance. You are selling a new driver - an experience or efficiency or new digital features. Insurance is your secondary driver )

• Does your culture need to change? Is your culture skilled, willing and able to adopt, adapt and execute the new strategy and know the new technology?

• Does your technology need to change? Are you still using monolithic platforms? Have you adopted cloud and AI?

If you are changing more than one of strategy, culture or major technical platforms, consider external support.

Leadership Team Style

Leading change is about transformational leadership. This is another 'tough love' reflection point for most leaders that want to take their organization into the future. For most leaders, their success over the last few decades was to speak with certainty and to 'guarantee success with the following changes'. True digital transformation is not about guarantees, it is about managing an adaptation workforce who can adopt new technologies and respond to change quickly. Evaluate your style and your leaders' styles to determine if you have the right team to bring you forward. Are they looking for certainty on dollars spent, release dates and controlled risks? Consider staying with 'projects to evolve your strategy'. If your leaders consider the following questions and statements comfortable, you have the team to support the transformation.

• "We're heading in the right direction" -- this means that employees are moving solutions forward in the right direction. It means that they may be adapting and responding to a better outcome. If your leaders are asking employees to guarantee that they will have the expected result, they or the organization may not be ready for this level of transformation

• "We'll get close to releasing in Q3" -- there are no guarantees in life so ensure leaders are asking what is needed to build their confidence or remove roadblocks faster

• "We'll be ready to respond to client feedback" -- with no guarantees, there are also unexpected surprises with the speed that technology can change one's course so help teams set-up for responding to change without always having to reach out for leadership support.

• "You are safe to try" -- this means that your employees and teams can leverage a couple of sprints to determine if an idea will make a difference. If you don't have 'wiggle room' to give your employees, your leaders may not be able to lead your employees through digital transformation

Are they ready to hear that their strategy needs to change? Are they able to hear that their loyal and dedicated staff are not willing or skilled to make the

Next Steps

Before you begin discussing Digital Transformation with your teams, take a moment for self-evaluation, reflection and planning. Create a compelling and crisp case for change, ensure employee buy-in, understand the support you need and ensure your leadership style changes from certainty to directional. Next, set-up quarterly checkpoints and be willing to adapt and adopt new strategies as needed.