Cultural Issues Hinder Digital Transformation At Workplace: Study

by CXOtoday News Desk    Jun 08, 2017

Workplace

Getting employees involved is critical for shaping an effective digital culture and accelerating the cultural transformation of the organization. Leadership and the middle management are critical to translating the broader digital vision into tangible business outcomes and rewarding positive digital behaviors. Failing to engage employees in the culture change journey may be a big impediment to that.

According to a study by Capgemini and digital analyst Brian Solis, 62 percent of respondents see corporate culture as one of the biggest hurdles in the journey to becoming a digital organization. As a result, companies risk falling behind competition in today’s digital environment. Furthermore, the data shows that this challenge for organizations has worsened since 2011 by 7 percentage points.

The report, which includes more than 1,700 respondents in 340 organizations across eight countries, uncovers a significant perception gap between the senior leadership and employees on the existence of a digital culture within organizations.

Key report findings show that there is a profound disconnect between leadership and employees on all the dimensions of digital culture:

-   Innovation is still not a reality for many organizations. Only 7 percent of companies surveyed feel that their organization can test new ideas and deploy them quickly.

-  There is strong disagreement on collaboration practices. The findings reveal a divide between senior-level executives and employees on collaboration practices.

-  Leadership believes they have a digital vision, employees disagree. The research found considerable differences between what leadership and employees perceive as a clear digital vision. 

Digital culture leaders set themselves apart

The research identified a group of digital culture ‘front-runners’ (34percent of organizations surveyed) who performed consistently well across the seven dimensions of digital culture and whose leadership has largely succeeded in aligning the wider organization to the desired culture. The UK, Sweden and the US have a strong representation of digital culture leader organizations (63percent, 60percent and 56percent respectively), while automotive (43percent), consumer products (38percent), and telecoms (32percent) have the highest proportion by industry sector.

These digital culture front-runners tend to hire differently than their digital slow-moving counterparts, consciously looking for behavioral traits such as creativity and autonomy when recruiting - 83percent of front-runners compared to 29percent of the digital slow moving counterparts; adjusting role descriptions and KPIs to align with overall digital transformation (75percent compared to 17percent) and aligning their compensation structure to digital transformation objectives (70percent compared to 13percent).

How to create a digital culture?

Creating a digital culture and affecting change requires patience, tenacity and constant vigilance. The new report sets out some key elements needed for organizations to adopt a digital culture:

·         Deploy digital change agents and empower employees to drive a digital culture

·         Design new digital KPIs that focus on behaviors

·         Make digital culture change tangible

·         Invest in the digital skills that matter

·         Clearly communicate a digital vision and have visible leadership involvement

·         Use digital collaboration tools to increase transparency and to reach out to employees

·         Take a systematic thinking approach to culture change