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Why OCM Is Critical To Digital Transformation

Digital transformation requires significant organizational change that impacts employees' behaviors and culture. Change management is critical to address employee resistance and ensure success. There are different levels of change from small developmental changes to large transformational changes that require shifting an organization's overall strategy and mindset. Transformational changes in particular necessitate active stakeholder engagement, two-way communication channels, and addressing leaders to develop a supportive culture for an emerging and uncertain transition. The first steps are to assess the level of change and an organization's change management capabilities to determine the appropriate approach.

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Putu Aditya
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80 views20 pages

Why OCM Is Critical To Digital Transformation

Digital transformation requires significant organizational change that impacts employees' behaviors and culture. Change management is critical to address employee resistance and ensure success. There are different levels of change from small developmental changes to large transformational changes that require shifting an organization's overall strategy and mindset. Transformational changes in particular necessitate active stakeholder engagement, two-way communication channels, and addressing leaders to develop a supportive culture for an emerging and uncertain transition. The first steps are to assess the level of change and an organization's change management capabilities to determine the appropriate approach.

Uploaded by

Putu Aditya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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WHY ORGANIZATIONAL CHANGE

MANAGEMENT IS CRITICAL TO DIGITAL


TRANSFORMATION
DIFFERENT VIEWS OF “CHANGE
MANAGEMENT”
WORKING DEFINITION OF CHANGE
MANAGEMENT
WHAT IS DIGITAL TRANSFORMATION?

“The realignment of, or new investment in,

technology and business models to more

effectively engage digital customers at every

point in the customer experience lifecycle.”


 “All I’m saying is,
now is the time to
develop the
technology to deflect
an asteroid.”
WHERE DIGITAL TRANSFORMATION AND
OCM BISECT

Digital transformation is a

reaction to either disruption or

dislocation

Think about what that

means to the people in

your organization...
WHERE DIGITAL TRANSFORMATION AND
OCM BISECT

Common activities that result from digital strategy


 Program to manage all multiple projects
 New roles created
 Mobile Application
 New site
 Updated ecommerce engine
 Multiple rollouts of new tools and systems
 Unification of in store and online experience
 Unification of web and mobile experience
CHANGE IS HARD

• The reality is that change is hard – people are

naturally resistant to change.

• When we talk about digital transformation, we’re

talking transformative change. That’s big change.

• Think behavior change. Think culture change. We’re

not just adding a new widget to our system.

• Change happens one person at a time. It’s not group-

think, and we’re not lemmings!


START WITH STRATEGY
DIGITAL ROADMAP
TRANSFORMATIONAL CHANGE & APPROACH
TYPES OF CHANGE
• Improvement of what is

• New state is a prescribed enhancement of

the old state


• Design and implementation of a desired new state

• Requires management of the transition process to

dismantle the old state while putting in the new state

• Managed timetable

• New state is largely unknown – emerges from visioning, trial

and error discovery, and learnings

• Requires a fundamental shift in mindset, behavior, and culture to

support new business direction

• Critical mass of organization must operate from

a new mindset and behavior for initiative to be sustained


APPROACHES TO TRANSITIONAL CHANGE

We generally approach transitional changes with relatively “straight forward” change


management.

  Well-communicated case for change

  Job impact assessment

  Clear change plan

  High employee involvement in designing and implementing plan

 • The significant factor for success is an engaged sponsor

  Sound communications and training plans  Adequate support and integration


time
DEEP DIVE INTO TRANSFORMATIONAL
CHANGE
• Defined as a “radical shift of strategy, structure, systems, process, or
technology, so significant that it requires a shift in culture.”*

• The new state that will evolve will largely be uncertain at the time of project
inception

• Transformational projects create instability and uncertainty in an organization

 1)  We are pursuing an emerging target

 2)  Because we don’t know the end game with 100% certainty, resistance goes
up. As resistance goes up, commitment and performance levels become
uncertain.

• Human and cultural issues thus become key drivers


DIGITAL TRANSFORMATIONAL CHANGE

• Digital change is designed to change the way we work – it’s not a new application, a new

system or a new process. It’s all of those!

• Digital transformational change requires a behavior change


APPROACHES TO TRANSFORMATIONAL
CHANGE
• Change leaders must formulate strategies and methods to transform mindsets and culture for
digital transformation projects to be successful.

  Address leaders and change targets

  Engage stakeholders very actively

  Build two-way communications channels

• Listening is critical

• Developing a culture of openness and authenticity

  Ensure vision is grasped and understood via the case for change

  Turn resistance into commitment


HOW TO TAKE THE FIRST STEPS

 • First, you must assess what “type” of digital transformation and change
you are undertaking at the program and project levels.

 a) Developmental (Small) b) Transitional (Medium)


c) Transformational(Large)
 • Then, you must assess what your change management capabilities
and capacities are – what’s available to you?
FINAL THOUGHTS ON CHANGE MANAGEMENT
FOR DIGITAL TRANSFORMATION

 Digital transformations are life changing – for an organization and its people

 Change management is all about protecting the investment in the project and

 achieving the target ROI

 There are ways we can calculate and quantify the impact of change management has
on the target ROI

 You can’t start change management work too early, but you can start it too late!

 Change management is not send an email on Monday, train on Tuesday, and

 implement on Wednesday

 All projects will include some form of change management – the question is, who
will do it and how well will it get done?

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