This post explores how a modern company culture can help (more than hinder) when trying to drive digital transformation (DX) adoption in an organization.
We’ll highlight some essential elements of company culture to help fuel successful change management. The goal is to understand better how business culture impacts successful DX adoption so you know what to look for as you plan your initiative.
Surprise! Company Culture is not just a buzzword!
![[Incoherent business buzzwords]](https://media.giphy.com/media/3pYdSkUKgyA1w6x0Vd/giphy.gif)
Company culture (sometimes known as organizational culture) occasionally sneaks onto our radar. This time, as companies try modernizing and adjusting to our “post-COVID” world, it has paired up with digital transformation. It is necessary to know because, in research and practice, cultural change is perceived as essential for successful digital transformation in companies, especially when dealing with disruptive transformations brought about by new technologies (Westerman et al., 2019).
Company Culture vs. Digital Transformation
Let’s consider this: How can organizations cultivate a “modern mindset and environment” to embrace change and leverage digital technologies effectively?
Below is what to look for or pay attention to.
Foster Innovation and Experimentation
The look of modern company cultures varies from business to business. One of the “looks” encourages innovation and experimentation as an essential driver of DX.
What do I mean by that?
In general, more agile companies can better embrace and adapt to this type of mindset. At the same time, they may be able to foster a culture of innovation more easily. Why? By default, they empower employees to think creatively, challenge the status quo, and generate new ideas.
Think of it this way: companies that can foster this type of culture don’t treat their employees like cogs. They don’t have a “timestamp” culture. They rely on their internal talent pools to move the needle forward.
Ultimately, orgs that foster innovation and experimentation provide resources (training, low-code or no-code platforms, etc.) to empower employees to test and iterate digital solutions. They can participate in the process. This culture fuels a continuous innovation cycle, enabling organizations to adapt to market changes, anticipate customer needs, and realize new opportunities.
Embrace Agility and Adaptability
This one goes hand-in-hand with the above example.
If it is not apparent, modern organizational culture emphasizes digital agility and adaptability. Furthermore, organizations that successfully embrace these principles seem more adept at responding to market shifts, customer demands, and emerging technologies.
To do that, leaders must recognize digital transformation as a strategic and fundamental paradigm shift that requires instilling a culture that supports change while enabling the overall company strategy (Hemerling et al., 2018).
Of course, more than one type of company CAN adopt this mindset well, especially in the face of uncertainty.
The challenge is whether or not a company can maintain this mindset and ideals outside of those periods.
For example, consider how we responded to companies that “changed their tune” once vaccinations were released during COVID-19 or when a State lifted masking mandates.
Ultimately, we’re all naturally resistant to change, but think of what the world would be like if we were just stuck with campfires to cook meals, rejected cars, or unplugged the internet and never looked back.
Cultivate Cross-Functional Collaboration
Digital transformation thrives in inclusive, collaborative, and cross-functional business cultures. When organizations nix information/communication silos to help foster collaboration across teams (including digital teams), departments, and management, it unleashes their workforce’s collective knowledge and expertise. Then, effectively encouraging cross-functional collaboration, being inclusive, sharing insights, and leveraging diverse perspectives enable new communication opportunities.
Ultimately, it promotes knowledge sharing to drive organizational creativity and innovation. Don’t believe it? Check these out:
- How Diversity Can Drive Innovation – Harvard Business Review
- Diversity Confirmed to Boost Innovation and Financial Results – Forbes
- Diversity Wins: How Inclusion Matters – McKinsey & Company
Digital Transformation is NOT About Technology
Businesses that flawlessly collaborate cross-functionally can more easily build their digital transformation efforts.
Why?
Because DX is more about communication than integrating new functionalities into existing or new technology stacks, it requires a fundamental shift in organizational culture that begins with communication—between everyone.
Of course, digital transformation has its challenges and is not a “set it and forget it” project. It’s ongoing. Forever.
Continuous Learning and Growth Mindset
A culture of constant learning and growth is integral to successful transformation. Modern companies encourage employees to acquire new skills, embrace emerging technologies (like AI), help improve business operations (through Citizen Development), and stay updated on industry trends.
Orgs that award employees for continuous learning milestones and growth empower individuals to adapt and proactively drive creativity and innovation by contributing to digital transformation projects.
Have a Customer-Centric Focus on Company Culture
Modern business culture places the customer at the center of DX efforts. When organizations prioritize a customer-centric approach, it helps to foster empathy, a deeper understanding of customer needs, and a commitment to delivering excellence. They intentionally avoid falling into the toxic positivity trap.
This culture relentlessly focuses on improving customer interactions, personalizing offerings, and leveraging customer insights to drive decision-making—not an easy feat! At the same time, we must consider the need for more psychologically safe checks and balances that don’t demoralize and dehumanize employees by discounting internal dialogues and reality. I’ll save that for another post.
Leadership and Change Management
DX requires strong leadership and effective change management. Moreover, modern business culture emphasizes leadership qualities that inspire and guide teams through the transformation journey. Leaders who promote a shared vision can better communicate the value of DX and create a safe space for innovation.
Lastly, companies must understand that leadership and change management go hand in hand. Leadership drives change by fostering transparency, managing resistance, and empowering employees to better themselves through their careers.
The Takeaway: Company Culture + Digital Transformation = Possible
Modern company culture plays a pivotal role in driving successful DX. By fostering a culture of innovation, embracing agility and adaptability, promoting collaboration and continuous learning, prioritizing customers (and employees), and empowering leaders, orgs can create an environment that embraces change and leverages digital technologies effectively.
The transformational power of digital technologies gets harnessed when coupled with a culture that supports and nurtures the mindset, behaviors, and practices needed for digital success. Through adopting and implementing modern business culture perspectives, organizations can unlock the full potential of digital transformation, achieve strategic goals, and thrive better.
