#51: Why 70% of Digital Transformation Projects Fail
In this episode of Stay Sharp with Razorleaf, Maria Morris from SharePLM joins Jonathan and Jen to discuss the importance of Organizational Change Management (OCM) in digital transformation projects. OCM goes beyond system training, emphasizing clear communication, stakeholder engagement, and creating a strong narrative to minimize resistance and ensure successful adoption of new technologies.
Key Topics Discussed:
- The Importance of Organizational Change Management (OCM):
OCM is a crucial element in digital transformation projects, yet often overlooked. Maria shares how OCM helps people adapt to changes, whether they involve new technologies, processes, or organizational structures. She emphasizes the importance of aligning stakeholders and creating a clear narrative to drive successful adoption. - Beyond Training – The Full Scope of OCM:
Training is often considered the final step in a change process, but Maria explains how OCM starts much earlier. From the initial stages of a project, OCM involves engaging key stakeholders and ensuring they understand and support the vision behind the transformation. System training alone is insufficient; organizations must focus on role-based, process-centered training that explains not just how to use a new system but why it matters. - Communication Strategies for Success:
Effective communication is key to OCM. Maria outlines how communication should be continuous and tailored to different audiences, from executives to end-users. A well-crafted narrative should resonate with each stakeholder group, addressing their unique concerns and motivations. Frequent and transparent communication helps prevent rumors and resistance, making it easier for people to embrace change. - The Role of Leadership in Driving Change:
Leadership plays a critical role in OCM. Maria discusses the challenges of gaining buy-in from senior executives, who are often the champions of change. She stresses the importance of aligning leadership with the change vision to set the tone for the entire organization. - Why Digital Transformation Projects Fail:
Maria references a statistic from McKinsey that 70% of digital transformation projects fail due to employee resistance. This failure is often linked to a lack of effective OCM. By focusing on the people aspect of change and ensuring proper alignment, organizations can dramatically increase their chances of success.
If you enjoyed this episode and want to dive deeper into OCM and its role in digital transformation, subscribe to the podcast and follow Razorleaf on social media. Have questions or ideas for future episodes? Reach out to us!
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