André Rizzo, McGill Executive Institute Faculty Member and Digital Transformation and Emerging Technologies Advisor, contributed to this story.
In the Digital Age, People Come First
Digital transformation is reshaping industries across the globe, redefining how businesses operate and compete. From AI-powered automation to advanced data analytics, organizations now have powerful tools to enhance productivity, efficiency, and customer satisfaction.
Yet, despite the promise of technology, studies indicate that over 70% of digital transformation initiatives fail to achieve their objectives. Not surprisingly, it isn’t technical challenges that typically cause these failures — it’s the human element.
When organizations prioritize technology over the people who will use it, they create an imbalance that often leads to friction, resistance — and ultimately —failure. A human-centered approach to digital transformation shifts the focus to align technology with people’s needs, skills, and values.
This method not only improves the adoption rate of new technologies but also boosts employee satisfaction and productivity. In other words, successful digital transformation isn’t solely about adopting the latest tools; it’s about creating a culture that empowers people to harness these tools effectively.
The Leadership Role in a People-Centered Transformation
Often overlooked because it seems so obvious, leadership plays a pivotal role in human-centric digital transformation. Leaders are responsible for setting the tone, articulating a clear vision, and fostering an environment where employees feel valued and included. In human-centered transformation, leaders go beyond making decisions and issuing directives; they actively engage with employees, listen to their concerns, and involve them in the process.
When leaders articulate the “why” behind digital transformation and connect it to employees’ daily roles, they help bridge the gap between technology and people. This transparency reduces fear of the unknown and helps employees understand how the transformation will benefit them personally and professionally. Leaders who embrace this approach understand that their role is not only to manage change but to lead it, fostering a culture where adaptability and innovation thrive.
Three Pillars of Human-Centric Digital Transformation
While the topic is complex, one may argue the success of a human-centric digital transformation rests on three critical pillars: early involvement, digital literacy, and a culture of adaptability. Each of these components works together to create an environment where people feel prepared and motivated to embrace change.
Early Involvement
Involving employees from the beginning of the transformation process is vital for fostering buy-in and reducing resistance. When employees feel they have a say in how new tools and processes will be implemented, they’re more likely to support them. In practice, early involvement can take many forms, including workshops, pilot programs, and regular feedback sessions. For instance, if a company is considering adopting a new project management tool, it can start by inviting employees to test various options, provide feedback, and voice their preferences. This approach builds a sense of ownership, making employees feel valued and respected.
Early involvement also helps ensure that technology solutions are well-suited to the organization’s unique needs. Employees who use tools daily can offer valuable insights into what features or functionalities would improve their workflows. Leaders who listen to and act upon this feedback are better equipped to make technology choices that genuinely benefit their teams.
Investing in Digital Literacy
As companies increasingly adopt digital tools, the need for digital literacy grows. Employees who lack confidence or skills in using new technology are more likely to feel overwhelmed or resistant. Providing comprehensive training and support is essential to ensuring that all employees feel capable and empowered to leverage digital tools. Digital literacy training should cover the technical aspects of new tools and focus on their strategic benefits, helping employees see how these technologies align with broader company goals.
Offering multiple formats for training, such as workshops, e-learning, and one-on-one sessions, accommodates diverse learning preferences and skill levels. When employees feel proficient and confident, they’re more likely to embrace digital transformation confidently and constructively. Additionally, organizations that invest in ongoing digital literacy initiatives foster a culture of continuous learning and adaptability, preparing employees to tackle future challenges with resilience.
Creating a Culture of Adaptability and Innovation
The third pillar, adaptability, is crucial for sustaining digital transformation. In a human-centered approach, adaptability is encouraged and rewarded, creating a growth-oriented culture where employees feel safe to experiment, take risks, and share ideas. By recognizing and celebrating adaptability, companies signal that flexibility and innovation are valued behaviors.
For example, some organizations dedicate “innovation hours” for employees to explore new technologies, test new ideas, or brainstorm improvements to existing processes. This approach provides a structured opportunity for employees to contribute to the organization’s digital transformation, fostering a sense of ownership and creativity. Furthermore, a culture that values adaptability doesn’t expect employees to become experts in every new tool immediately. Instead, it promotes a mindset of learning and continuous improvement.
Leadership’s Ongoing Role in Supporting Transformation
In a human-centric transformation, leaders don’t simply implement change; they support and sustain it. Effective leaders create open channels of communication, where employees can voice concerns, ask questions, and seek guidance. This transparency builds trust, helping employees feel secure as they navigate changes.
Clear communication from leadership is particularly important during times of transition. Leaders should take time to explain the rationale behind each change, address misconceptions, and provide frequent updates. By remaining visible and accessible, leaders show employees that transformation is a shared journey, not an isolated mandate.
Looking Ahead: Embracing Change with Confidence
The evidence is clear: companies that prioritize people alongside technology will be the ones that succeed. Human-centric digital transformation is about more than adopting the latest tools; it’s about creating a culture where people feel empowered to embrace change. By involving employees early, investing in digital literacy, and fostering adaptability, organizations can pave the way for sustainable growth and innovation.
In the next article in this series, we’ll explore how companies can navigate the hype surrounding emerging technologies to make informed, strategic investments. By focusing on practicality and alignment with business goals, organizations can adopt technologies that deliver lasting value rather than short-lived excitement.