Adjusting to Change in Digital Transformation 

Change is the only constant; as a species, we are constantly looking to improve, adapt, and evolve. So, why is it that change in business can often be met with apprehension and resistance?  

Adopting new digital technologies, especially as businesses look to adopt AI tools and solutions, can be a powerful growth lever for small and medium-sized enterprises (SMEs). Whether it’s implementing an AI-powered CRM, a generative AI platform that is able to link in with your business data, moving data to the cloud, or automating production workflows, these changes promise better efficiency, productivity and competitiveness in the market, whilst also supporting your business to grow and succeed.  

However, for many users, changing digital technologies can also introduce added complexity, especially as these technologies are introduced into the business, and team members are asked to learn new processes and systems. The most important thing to remember is that Digital Transformation projects can fall flat if the people and processes behind it aren’t prepared, equipped or willing to evolve. It is important that business leaders are conscious that enthusiasm for new tools and processes doesn’t always translate into effective adoption in the workplace. This is why businesses must consider effective change management processes when looking to adopt new technologies. 

What is Change Management? 

Change management refers to a structured approach used to guide employees and teams through business transitions successfully, including the adoption & training of new tools, technologies, and even processes. For business owners and senior managers, developing strong change management processes can be the difference between a high-impact transformation and a costly misstep, and is a core part of realising business value from digital investment. 

Why Change Management Matters 

Digital transformation is rarely just about implementing technology. It's about rethinking how a business improves productivity and efficiency, delivers value, empowers teams to collaborate, and improve the ways in which their customers are served. That might mean new tools, processes, workflows, altered roles, or entirely new service models. With this level of change comes uncertainty, and often, resistance. Addressing this resistance early can prevent widespread disengagement and disruption. 

According to McKinsey, around 70% of “large-scale” change initiatives fail to meet their goals, most commonly due to employee resistance, either with open push back or quietly doing things the “old way”, or lack of sufficient management support when implementing changes within the business.  

On the other side of the coin, businesses with robust change management practices are up to six times more likely to achieve their transformation goals and are also more likely to see faster returns on investment and sustain improvements over time.  

It is critical that businesses focus as much on their people and processes as on the technology itself. 

What are the common risks involved in Digital Transformation projects? 

Employee Resistance
As we have mentioned, change in the workplace can often trigger discomfort for employees, particularly if roles change or processes become automated. A sentiment that is more important now, with businesses looking to implement AI toolsets into their business to improve productivity and efficiency.  

In industries such as manufacturing, where practical know-how and structured routine are commonplace, changing tools and workflows can create anxiety among employees about job security or competence. This fear can be intensified when changes are introduced without adequate explanation or even reassurance about training or future roles. 

Operational Disruption
New systems often take time for users to gain a better understanding, training, and ultimately acceptance in the workplace. If people aren’t adequately trained or supported, adoption (and therefore, productivity) can suffer in the short term. Without contingency planning, performance dips can undermine trust the new services/solutions/processes, also meaning that a true performance impact of the transformation project cannot be effectively analysed. Delays, mistakes, and reduced service quality during this phase can also damage customer relationships and the trust that has been built over time. 

Leadership Gaps
Digital transformation without visible and vocal interaction from all members of senior leadership who are involved in the decision-making and implementation process is like a ship without a captain. Employees need to see that senior leaders are backing the change fully, both in words and actions. Additionally, implementing a focus group for testing and input on implementation within your employee base can increase interaction with your wider team and build trust with the adoption of new solutions. Without this, alignment to a common goal and commitment to make the transformation succeed can suffer.  

Communication Breakdowns
Lack of communication, and therefore confusion, can kill momentum in any digital transformation. If the rationale, impact, benefits, or timeline for implementing digital transformation solutions isn’t clearly communicated, employees will other will make incorrect and uneducated assumptions, filling in the blanks themselves, and potentially disengaging entirely. This is where rumours and anxiety are born. Consistent, transparent messaging throughout your entire team is vital. Listening to staff concerns and providing feedback should be a vital focus in ensuring that everyone has an educated understanding of what is happening, how it will impact them, and the benefits to their role and the business as a whole. 

Lack of alignment Across Functions
If departments or teams within a business are siloed, rarely interacting directly with each other, change can feel disjointed. Especially if a digital transformation project touches many points across a business.  

For example, A logistics company rolling out a digital tracking system may struggle if warehouse, delivery, and customer service teams aren’t aligned on new expectations or workflows within (or between) departments. Integration and coordination are essential to realising the full benefits of digital transformation.  

Implementing a focus group (and “champions”) as part of your digital transformation project, with key personnel from each department, can not only increase communication but also benefit the adoption and implementation process.   

What are the key principles of effective Change Management? 

Set a Clear Vision
This may sound simple, but clearly communicating the purpose of the transformation, the benefits for each department, as well as the business, is incredibly important.  

Clear communication of the strategic benefits of transformation projects ensures that everyone understands the value of the change and how it will align with business growth goals. 

Engage People Early & Often
With any internal project, not just digital transformation, it is important that businesses bring people into the process as early as possible.  

We suggest creating a focus group, with personnel from within each of a business’s key departments, and finding “champions” who can be the “go-to” for knowledge and training, as well as influence others in promoting adoption. This includes those on the front line of services, back of house, finance, HR, operations, production and more. Their insights are essential for identifying practical challenges and considerations within each department, and their involvement builds ownership.  

In the logistics sector, for example, frontline staff often provide valuable feedback on how new software, solutions or processes can impact daily operations. 

Train, Support, and Reinforce
Training across all departments is crucial in ensuring a seamless adoption process, making sure that from “go-live”, everyone understands what their new processes are, and how the software/solutions operate.

But it is also important to remember that, and training provided should be practical, done in plenty of time before “go-live,” and be role-specific. There is no point in ensuring that Joe in Sales knows how to do Accounting and Invoicing if it is not part of their role. Provide training and resources that reflect the new systems and processes for the people who will experience them.

In manufacturing, this might mean simulation-based training for new equipment, such as robotics or even stock management systems.

In professional services, it could involve peer-led workshops on AI tools and how these integrate into daily workflows to improve productivity and reduce time spent on previously time-consuming tasks.

And continuing to provide training and support after the “go-live” date to troubleshoot real-world issues. 

Lead from the Top
Leadership visibility throughout any significant change in process is essential, but with widespread digital transformation adoption, it can become even more important.

Executives should not only talk about the changes, but they should model them. Their enthusiasm, openness, and responsiveness will set the tone. Being a part of focus groups and helping your team to understand why changes are happening and how they will impact the business can help build trust throughout the business. But it is also important that the wider team sees and understands leadership involvement as changes are implemented. 

Monitor Progress and Adapt
Change within any business is rarely perfect on the first attempt. It is important that businesses gather data, observe behaviour, ask for feedback and more so that new solutions or services can be effectively implemented to enact positive change. For this, flexibility and responsiveness are essential.

Adjusting the plan doesn’t mean failure; it means learning and improving.  

Celebrate Successes
Recognise progress, even if it’s incremental. Celebrating early wins builds morale and reinforces the benefits of change. Highlight stories of employees or teams who’ve adapted successfully. These positive examples can serve as proof points for those still unsure or hesitant. 

Examples of Positive Change Management 

Logistics
Many logistics firms are now using AI-powered tools for route optimisation, considering additional factors including current and historical traffic conditions based on the time and day of the week (as well as weather conditions).  

These businesses have seen notable gains in delivery accuracy and fuel savings compared to traditional tools. However, those gains often follow initial challenges: training drivers on new handheld tech, coordinating shifts in dispatch protocols, maintaining morale during the adjustment period, and even convincing long-time drivers who know many of the routes that following the new processes will be better for the business in the long term. Overcoming resistance in these instances required time, empathy, and strong peer support. 

Manufacturing
Manufacturing firms implementing predictive maintenance systems with IoT (Internet of Things) sensors have reduced downtime significantly.

However, the success of solutions such as these hinges on IT and operations teams working closely together, ensuring systems are calibrated, maintained, secured, and understood by those who operate these systems on a daily basis. Collaboration across all key business areas involved is crucial to addressing system alerts and scheduling repairs effectively. 

Professional Services
In services such as law and accounting, AI and automation tools for contract review and comparison, or even for bookkeeping, are transforming workflows and improving productivity and efficiency. However, among long-tenured professionals, they may worry that these tools threaten their expertise and experience, resulting in a loss of jobs.

When changes such as these are framed and targeted as augmenting human skill to improve productivity and efficiency, reducing risks of human error, adoption is higher. It is important to remember that, much like the introduction of the computer, technology is a partner, not a replacement. 

Tech Industries
Even in tech industries, it is important to remember that many employees will be used to doing things in their own ways and using tools that they are familiar with.

In this example from Linus Media Group, their departments were disjointed, using different tools to accomplish similar tasks and goals, and have been making strides to use a centralised platform to manage their workflows. But as their own CTO admits in their weekly podcast, “there are entire companies that you can contract in for hundreds of thousands, or millions of dollars, to help you manage change.

And it’s tough; some people do better with it, and some people don’t. It is part of the process, and it is painful.” But for their business, it was important to unify the processes and tools that people were using across their business to improve productivity. 

How do we support your business with change? 

It is important to remember that transformation (digital or otherwise) is as much a people challenge as a technical one. New and improved tools/solutions can drive capacity and insight, but it is your people who are an essential part of earning that value. Embedding effective change management procedures into your business ensures that any transitions are meaningful, inclusive and have a lasting impact. 

For small to medium businesses, poor change management could result in a failed project with wasted time, resources, lost morale, and a solution that hinders rather than benefits your business. With clear leadership, inclusive planning, consistent communication and a focus on employee experience, business leaders can reduce the risk of resistance and ensure the success of transformation projects. 

We work with businesses to ensure that with any projects, whether that be AI implementation, change of service, adoption of a new solution, transitioning from another support provider and more, to ensure that their teams are involved in the change. By doing so, we can ensure a smooth transition and adoption throughout your business. It is not just about “selling a solution”; it is about ensuring that everyone within your business will see the benefit of new services or solutions.

Do you have questions about digital transformation and change management? Book a meeting with us at your convenience.