Mindset, culture and skills: three essential elements for a digital (HR) transformation
The coronavirus offers many organizations a glimpse into a future world. A world in which organizations were forced to transform themselves digitally from one moment to the next. The coronavirus puts HR in the spotlight, and one thing is clear: technology will be an important component of the 'new normal' within organizations. That is why the coronavirus is seen as a catalyst for digital business transformations.
Contrary to popular beliefs, digital transformations within organizations are less about technology and more about people. Technology is always about doing more with less, but that combination is only effective if you combine technology with the right human skills. The most brilliant technological innovation is irrelevant if we are not competent enough to use it.
Mckinsey: 70% of digital transformation projects do not achieve the intended results
In this digital age, many companies realise that they can use technology as a tool to achieve the best results. If the right technology is available, it may not be supported by the organization and its employees.
As a result, the technology is pushed aside because the intended results have not been achieved. The remaining question is: ''Was it due to the technology or the employees that the intended result was not achieved? You can buy almost any technology, but the ability to adapt to a more digital future depends on making your organization future-proof by means of: mindset, culture and the right skills that fit the organization of the future.
Mindset
Mindset is the first hurdle in the field of digital transformation. Organizations cannot successfully implement technology without first understanding whether their people have the right mindset. A mindset that embraces opportunities for change and innovation, brought about by digital transformation. Since transformations in this digital age revolve around constant adaptation, experimentation and development, all individuals with a growth mindset can make a big difference. People with a growth mindset have the motivation to learn and to do things in a new way, while also possessing the resilience that helps them overcome challenges. Both management and workforce must have the right mindset for a successful digital transformation. A change in mindset starts on an individual level, before it affects the entire corporate culture.
Culture
The company's culture reflects the deepest and closest convictions and values of an organization. Some companies have a culture where people are quickly satisfied with the current state of affairs. Why change if things are going well? Hereby, there might be a lack of a growth mindset. For these types of organizations, there is a challenge to adapt their corporate culture to the digital age. In today's digital world, it is important to build a corporate culture that is open to constant adaptation.
Source: https://www.linkedin.com/pulse/harnessing-uncertainty-how-prosper-unknowable-new-normal-dave-ulrich/
Uncertain times, such as the coronavirus, call for an agile organization that can respond quickly to change. Dave Ulrich advocates the need for companies to exploit uncertainty and link this to a realistic optimism, in order to find a way through the current crisis. This can be achieved by transforming the threat of an 'unknown future' into opportunities. This requires a proactive attitude, focus, psychological safety and agility. The figure above shows six principles for exploiting uncertainty (Harness Uncertainty). These principles can form the basis for a corporate culture that fits in with today's digital world, enabling organizations to quickly adapt to technological opportunities.
Skills
Because of the coronavirus, organizations were forced to implement digital tools to keep the organization running in this special time. This increased the urgency for organizations to transform themselves digitally from one moment to the next. This transformation could lead to a shift in the needed skills. Using more technology is only effective if you combine this technology with the right human skills. The combination between human and technology should be a complementary relationship. In which the cooperation between human and technology will be the formula for success in the digital age.
Here lies a challenge for HR to take stock of which skills are crucial for the organization of the future and to take stock of which skills the workforce currently has. From this inventory, HR can conclude whether there is a gap between the current and required skills. It may seem counterintuitive in the midst of a global crisis, but this is the time for companies to increase their learning budgets and focus on training so that the skills and roles of employees fit the 'new normal'.
It's about people
So digital transformation is not so much about technology but more about people. It all starts with the individual mindset of management and workforce. Preferably a growth mindset, with which individuals embrace the opportunities for change and innovation that a digital transformation brings. From this individual mindset, you can build your corporate culture as an organization. Today's digital world requires a corporate culture that is open to constant adaptation and actively takes this into account. Moreover, a digital transformation also requires the appropriate skills of your employees. Without its proper use, the technology will ultimately not come into its own.
Success depends on the use of your employees
In our previous blog, we took you through some digital possibilities with which you can set up the organization for the 'new normal'. The most important implication we would like to give is: ''A digital transformation is not just about implementing new technologies, because success depends on the use of these technologies by your employees''.
The key to success is not just having the right new technologies. To get off to a good start, ask yourself the following questions:
Why do we have to transform?
What does a successful transformation look like for us?
Do we have the right skills and resources inhouse?
Are we aware of the challenges?
Is the organization ready for the changes?
Are you curious about more questions that are important before starting a digital HR transformation? Feel free to contact us and we will be happy to have a digital cup of coffee with you!