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In the wake of innovative technology such as AI and ML drastically changing company operations, the connection between technology and culture change is more evident than ever.
While leaders may understand this concept in theory, terms like “culture” and “change management” are often dismissed as mere HR jargon. Despite the growing demand for change management, it often receives insufficient investment during digital transformations. This oversight leads to slower technology adoption, inconsistency within the organization, and delayed returns on technology investments, as shown by McKinsey.
Related: Digital transformation means adopting a new culture: Here's how to do it
Why is cultural transformation essential during technological transition?
Integration of new technology in a company requires a fundamental change in perspective. This shift requires a mindset shift before any real adoption can occur.
Consider how the introduction of smartphones, e-mail and social media profoundly affected our lives. Initially, many resisted these changes, clinging to traditional methods of communication and news consumption, such as telephone calls and printed newspapers. However, as we recognized the efficiency and convenience these technologies offered, we gradually adapted. research shows that social influence plays an important role in technology adoption.
An important driver of this adaptation was peer pressure. Watching colleagues engage with new tools highlighted what we might be missing out on, giving us a sense of FOMO. We realized that embracing new technology could improve our relationships by providing faster communication and information exchange.
This dynamic is also essential for organizations.
In many companies, teams operate in silos, becoming very comfortable in their isolated environments. These particular systems and processes often foster resentment and competition between teams. Consequently, frontline employees struggle to see the bigger picture of the organization, limiting their holistic understanding. Research from McKinsey highlights how covered structures can hinder agility and responsiveness.
So when a company introduces new technology designed to promote collaboration across these silos, the results can often be overwhelming. Without a collaborative mindset already in place, resistance to adopting new tools arises. Employees can stick to the status quo, questioning the need for change when their existing systems appear to be functioning adequately. They may not understand how new tools can benefit downstream processes or feel motivated to change.
Particularly in the case of AI and ML, there can also be significant feelings of uncertainty and fear about job displacement and the need to quickly learn new skills and role requirements. This change can create tension within the organization, requiring strong change management to help navigate evolving roles. A culture of continuous learningagility and data-driven decision-making must be incorporated in order to successfully implement these new tools in the workplace.
To address cultural barriers to digital change, my approach to change management focuses on establishing organizational alignment and fostering a collaborative mindset from the start. Initially, this responsibility falls heavily on leaders. The role of leadership is vital during IT transformations, which is why our framework is called LEADER.
Related: How to make your company adapt to new technologies
How to navigate the challenges of digital transformation
Here are some strategies from our LEADER Playbook to address IT transformation challenges:
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Start early: Engage stakeholders early through outreach workshops, joint meetings, surveys and active two-way communication to get shopping before deploying new tools. This helps minimize wasted time and resources. Emphasize the benefits of the transformation, using comparative industry data and compelling stories to build a strong business case.
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Apply gradually: Introduce changes gradually and nimbly to prevent overwhelm. Deploy micro-lessons and mixed-mode training as needed for different user groups, gather feedback, and ensure the right support is available for struggling teams. Ensure that communications and training are tailored to the needs and learning styles of stakeholder groups and that feedback mechanisms are in place.
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Mobilize early adopters: Create a cross-functional network of early adopters who can support the new initiative and help lead the transformation for their function. Change can be scary and many employees prefer the familiar.
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Highlight early successes: Create momentum for change by going for low-hanging fruit. Ensure that pilot activities are low-risk and high-return, providing initial success that can be demonstrated to the organization to increase positive sentiment around the initiative. Fight change fatigue by regularly communicating small and significant achievements. Keep the momentum alive through newsletters, intranet updates and word-of-mouth recognition from leadership.
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Connect incentives: Align performance metrics with desired behaviors to increase learning and adoption rates. Encourage users to adapt to new processes and celebrate and recognize when they do.
Related: How strong leaders deal with the postponement of technology initiatives
Creating a culture that supports digital transformation
The cultural changes caused by rapidly changing technology trends, including AI and ML in the workplace, are profound and multifaceted. As organizations rush to embrace these technologies, they must also recognize the need to build a supportive culture that prioritizes ELIGIBILITYcontinuous learning and ethical considerations. By fostering open communication, trust and collaboration, companies can mitigate resistance and increase employee engagement.
Ultimately, successfully transitioning to digital transformation requires a commitment to not only integrate advanced technologies, but also empower employees to thrive in an evolving landscape. By doing so, organizations can fully unlock the potential of new tools by cultivating a resilience and innovative workplace culture.