{"id":21299,"date":"2017-08-17T00:00:00","date_gmt":"2017-08-17T00:00:00","guid":{"rendered":"http:\/\/global2020prd.wpengine.com\/insights\/cultural-and-behavioural-challenges-are-the-biggest-barriers-to-digital-transformation\/"},"modified":"2020-05-18T10:01:25","modified_gmt":"2020-05-18T10:01:25","slug":"cultural-and-behavioural-challenges-are-the-biggest-barriers-to-digital-transformation","status":"publish","type":"post","link":"https:\/\/www.global-integration.com\/insights\/cultural-and-behavioural-challenges-are-the-biggest-barriers-to-digital-transformation\/","title":{"rendered":"Cultural and behavioural challenges are the biggest barriers to digital transformation"},"content":{"rendered":"<p>Jeff Bezos briefly topping the world\u2019s richest person list symbolizes just how far reaching Amazon now is. Amazon is, and always has been, a company driven by data and powered by software. It\u2019s seemingly unstoppable rise is just one example of how digital firms are leading the way, with more traditional firms desperately trying to implement their own digital strategy to keep up. But many are finding it\u2019s not that easy.<\/p>\n<p>Cultural and behavioural challenges are the biggest barriers to meeting digital priorities, according results recently published from <a href=\"https:\/\/www.mckinsey.com\/business-functions\/digital-mckinsey\/our-insights\/culture-for-a-digital-age?cid=other-eml-alt-mkq-mck-oth-1707&amp;hlkid=559fbf4a5ac241e89305f9dddb0b477b&amp;hctky=10039637&amp;hdpid=5a4c36db-3406-4e57-aede-172eec72efeb\">McKinsey\u2019s 2016 survey of 2,135 global executives<\/a> (see Figure 1).<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-19327 alignleft\" src=\"https:\/\/www.global-integration.com\/wp-content\/uploads\/Capture-2-300x207.jpg\" alt=\"\" width=\"609\" height=\"420\" \/><\/p>\n<p>Figure 1: The most significant challenges to meeting digital priorities according to Global Executives (source: McKinsey Digital 2016)<\/p>\n<p>\u201cExecutives must be proactive in shaping and measuring culture, approaching it with the same rigor and discipline with which they tackle operational transformations. This includes changing structural and tactical elements in an organization that run counter to the culture change they are trying to achieve\u201d, say the digital experts at McKinsey.<\/p>\n<p>The McKinsey survey identified three digital culture deficiencies: silos, fear of risk-taking\/too much central control and lack of customer-centric thinking across the business. These also give leaders a clear plan for how to update their culture for the digital world.<\/p>\n<p>We couldn\u2019t agree more. We\u2019ve observed many attempted transformations to more horizontal, cross-functional and digitally enabled ways of working stymied because of legacy cultures of centralized control and decision making. Digital is supercharging the move to more matrixed \u2018horizontal\u2019 ways of working.<\/p>\n<p>So how can companies relax control and break their legacy power structures? The McKinsey report gives us some ideas.<\/p>\n<p>First a change in escalation procedures is required. For example, the CFO at one global FMCG has now empowered business units to take their own large investment decisions and now only authorizes expenditure over $250,000. Before this change, the limit was $1,000.<\/p>\n<p>Secondly, managers and leaders need to learn to let go. For example, at ING, \u2018agile coaches\u2019 have helped managers set the overall direction and then get out of the way.<\/p>\n<p>Thirdly, empowering others further down the business also involves giving them the information and tools to make smart choices. For example, giving call-center employees real-time analysis on account profiles or data on profitability allows them to modify offers or deal with complaints on the spot \u2013 and makes the job a lot more engaging than just reading from a script. Technology augmentation can help too \u2013 in manufacturing predictive maintenance algorithms mean the front line can decide what needs to be done without the authorization from senior managers.<\/p>\n<p>Finally, \u2018thoughtful management rotation\u2019 can help. Getting managers and leaders to work in different areas of the business builds their internal and external networks, broadens their perspective and means they can get things done without having to resort to legacy power structures.<\/p>\n<p>A lack of understanding of digital trends was the second biggest barrier to meeting digital priorities. This is backed up by a <a href=\"https:\/\/www.mulesoft.com\/ty\/wp\/whats-going-wrong-with-digital-transformation\">benchmarking survey conducted by technology specialists MuleSoft<\/a> with 802 IT directors, with 82% of them highlighted \u2018going paperless\u2019 as one of their top initiatives in their digital transformation. But as MuleSoft argue, \u201cIt\u2019s not about going paperless; it\u2019s about the IT team enabling the whole business to innovate faster than the competition and adapt quickly to market changes.\u201d Just like Amazon did (and still does).<\/p>\n<p>See an interactive graphic of our <a href=\"https:\/\/www.global-integration.com\/agile-and-digital-training\/\">agile &amp; digital leadership learning path<\/a> and module contents.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jeff Bezos briefly topping the world\u2019s richest person list symbolizes just how far reaching Amazon now is. Amazon is, and [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":21268,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-21299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","type-blog","training-agile-and-digital"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cultural and behavioural challenges are the biggest barriers to digital transformation - Global Integration<\/title>\n<meta name=\"description\" content=\"Jeff Bezos briefly topping the world\u2019s richest person list symbolizes just how far reaching Amazon now is. 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