Article

The key to digital transformation is not managing change, it’s leading it

Nov. 4, 2022 · Authored by Jessica Drexler, Kate Hernandez

Successful digital transformation in today’s environment can feel like trying to hit a moving target. Even the most well-planned and executed projects can miss the mark as much as 84% of the time and leave us wondering what went wrong. This leads us to question – what sets successful digital transformations apart from those stuck in the status quo?

Most organizations gauge the success of a digital transformation solely by quantifiable measurements such as efficiency gains, quality improvements and growth. Although these are important markers to validate ROI, unfavorable results can be a lagging indicator of underlying factors related to leadership, culture and organizational structure. No matter how well an initiative is executed at the technical level, lurking organizational issues pose risks to not only the project but also the success of future ventures. Navigating digital transformation in today’s complex environment requires a more holistic approach to change than ever before.

Managing change vs. leading change

If there is only one constant for any organization, it is change. How you handle it will profoundly impact your organization’s resilience to current and future changes. If you are preparing for an upcoming digital transformation the most essential question is not how well your organization manages change but whether you are truly prepared to lead change.

Although the practice of change management is still uncharted territory for many organizations, we have seen maturity towards this discipline in recent years. Companies of all sizes are initiating tactics like appointing change leaders and teams to support communications and training programs for new initiatives. Additionally, leaders are beginning to understand that their active and visible support of these changes play a vital role in bringing people through a transition more effectively. These steps are all positive indicators that the value of change management is realized and deserves a place at the transformation table.

But is it enough?

Leading change requires a mindset different from managing change. Even organizations seasoned in change management principles tend to associate this process as a tag-along activity to project management, often beginning when the project is underway and reacting to a committed change. Organizations leading change start the change process from the beginning. These organizations realize that people are more willing to support something they helped create. They bring people to the center of the conversation, assessing the influence of culture and experience on desired outcomes, and letting those insights guide pivotal decisions. Starting healthy conversations around whether an organization and its people are ready to drive change takes place at the executive level. These companies don’t just manage change; they empower their people to lead them into the future.