Written by Sara Kraemer, PhD
Why the Human Element is Essential in Digital Transformation
Most organizations approach digital transformation from technology and business-centric lenses. However, human and organizational elements also play a critical role in the design, implementation, and operation of digital technologies in a business or enterprise. In fact, how well the people and the organization are supported through the change process can make or break a digital transformation initiative.
To highlight the critical role of the human element in digital transformation, let’s consider two contrasting case studies. These examples underline how different approaches to managing the human aspect of technological change can significantly impact the success or failure of digital transformation initiatives.
Case Study #1: A Company that Ignored the Human Element and Pushed Forward with Technology
Consider a medium-sized medical device manufacturing company that purchased an expensive robot to add to their production facility. The company’s objective was to increase productivity and output with the introduction of a faster, more efficient machine to perform the rote tasks previously done by a human operator. However, the management did not plan for the role changes and training that the robot operators would require.
The company asked for volunteers from the current assembly line. Instead of experienced operators with considerable institutional knowledge of the assembly plant volunteering for the role, younger operators with little experience stepped forward. Additionally, management communicated very little about how the change would take place and whether current operators would be replaced by the robot. Furthermore, the robot operators were not trained on the robot – instead, they “figured it out as they went.”
This company struggled to realize the productivity and efficiency gains they hoped for with the robot. Instead, the assembly lines were stalled multiple times as operators troubleshot problems with the operation of the robot. Management’s unrealistic production timelines, combined with insufficient job transition support and training, frustrated assembly line operators. Consequently, many operators – both new and veteran – either quit or retired, negatively impacting production time and contributing to an already serious workforce retention issue at the company.
Case Study #3: A Company Culture that Supports Digital Transformation Changes
Contrast the previous case study with a space aeronautical company that continuously brings new technologies to their operational lines. Instead of ignoring how people and their jobs will be affected by the changes, they anticipate how the change will impact people at different levels (operators, supervisors, managers, etc.) and develop process trainings for every role.
A key consideration in their process training is the impact on operator job design. Before a technology change occurs, they understand how it will impact the operator’s current job. Many times, with the introduction of a new technology, operators’ tasks become more complex and less repetitive. For example, a robot will automatically perform a sorting task previously done by an operator – but with the new system, the operator now must program the robot and problem-solve any issues that arise. Furthermore, this company creates new trainings and process documentation necessary to support the changes for the new operator task or role.
Another notable difference is the organizational culture around communication. While there may be some legacy thinking in “how things are always done,” it is usually not a barrier. Instead, the culture supports a communication style that is direct, informative, engaging, and actively involve the operator in a conversation about the change itself. This approach results in technological changes that are readily adopted by people and improves the process because problems were anticipated and addressed before they became serious issues.
How Can Leaders Build Their Capacity to Support People in Digital Transformation?
Leaders can build their capacity to support the people in their organization and strengthen the likelihood that the investment in digital transformation pays off. There are at least three ways leaders can learn and strategize a more holistic digital transformation change process:
- Develop an Understanding of Readiness: Understanding where the company or organization is on the spectrum of readiness for digital transformation is essential. While many digital transformation readiness assessments focus on the operation and technology elements, a more robust diagnostic also incorporates human and organizational factors such as culture, leadership, communication, job design, coaching and mentoring, training and professional learning, and social support.
- Determine the Focus of the Digital Transformation Project: Determining the focus of the digital transformation project within the enterprise or organization provides additional clarity on where to begin. If a company has attempted digital transformation initiatives in the past but has not realized gains, they might focus on a current or past initiative to investigate and improve what has not yet worked.
- Develop Human-Centered Approaches: Using the findings from digital transformation readiness assessments coupled with a digital transformation focus area, leaders can develop employee engagement initiatives, job redesign protocols, communication and awareness-building campaigns, and training programs. These human-centered approaches strengthen the likelihood of technological adoption and reduce the risk of failure in implementation.
Human-Centered Digital Transformation for Leaders
One way to strengthen leaders’ capacity for digital transformation is to engage in high-quality, mission-driven professional learning experiences. The Organizational Agility in Digital Transformation short course focuses on holistic, human-centered strategies to build leaders’ capacities for successful change and implementation. The course features a holistic digital transformation readiness assessment, strategic frameworks for human-centered digital transformation design and implementation, peer-to-peer discussions on problems of practice, and action planning for a digital transformation or capacity-building project.
This three-day course is designed for leaders and small teams who are looking to build their capacity and plan for holistic digital transformation. Upon completion, attendees will leave with concrete next steps that they can apply within their own organization. They’ll gain decision-making insights, collegial connections for future discussion, and individualized feedback from Course Instructor Sara Kraemer, PhD.
Learn more about this upcoming offering and bring digital transformation centered around human elements to your organization.