cover photo Reflect Blog
Ingo Kallenbach

How HR can advance the digital transformation

All organisations are in transformation because the world is in transformation“ (Sean Miller 2017). The quote makes it clear that the world is undergoing constant change due to the digital transformation, characterized by uncertainty and complexity. For organizations, this means that each of them is affected and must find a way to adapt to these changes. Human Resources (HR) can and should play a central role here and point the way to be able to react appropriately to precisely these changes.

 

Change Management: What role should HR play with regard to transformation pressure?

Regardless of the type of change - be it the change at the top of the company, technological change, the introduction of new values... - organisations must find a better way to deal with these challenges. A recent survey (Ipsos 2017) shows that 70% of employees understand the need for change in their organisation and most of them would support it, but only half of all employees think that the changes are well managed. A clear challenge for professional change management.

This is where HR comes in. HR should feel responsible for finding a better way to deal with these changes. The task and function of HR lies in the role of the driver of transformation, HR determines the way in which the path of transformation is taken. Two things are particularly important:

  1. Employees should feel integrated into the process and not confronted by it. True to the motto: "Most people like change, but nobody likes to be changed".
  2. HR should have the ability to influence decisions and link them to the strategy and goals of the business.

 

In which three fields HR can promote the necessary changes

Organizational agility

It is one of three fields in which HR can have a positive influence. The first thing to do is to avoid increasing complexity by creating a culture focused on speed and simplicity. The study by Ipsos Mori and Cirrus (2017), which you can request from us below, shows that an organisation can react more easily and quickly and thus be successful if it is in an ongoing learning and innovation process and adapting to changes is an important part of your thinking.

Creating this agility is an important goal for managers. HR can help to achieve this by ensuring that the objectives of the organization are clear and have a broad understanding. Experience has shown that it is helpful to concentrate on only one or two goals.

"Empowerment of Managers" - Leadership Development

A second important field is that leaders can grow through change to develop their self-confidence, full potential, resilience and optimism. In doing so, they should share the positive feelings of growing through change with their employees and carry them along.

To achieve this, it is important to make it clear to managers that they are not to blame if mistakes happen in the course of adapting to change, but that they may not yet have the right skills to deal with the situation appropriately. The aim is to build a positive and optimistic attitude that can withstand the occasional failures that inevitably come.

Positive image of the future

The heart of any organization is its customers and employees. Customers are no longer prepared to wait long for decisions that have to pass through the hierarchy. The task of making decisions must therefore be entrusted to the people who are closest to the customers. In this way, the employees' need for work is fulfilled with meaning. In response to the need for meaningful work, Cirrus' research shows that a credible and convincing vision is particularly important and beneficial for an employee's commitment and "commitment" to the organization. All too often, procedures, processes and systems are given too much attention, time and attention in comparison to the attitude and thinking of the employees.

 

The "right mind-set" as a key factor in digital transformation

Giving the work a deeper meaning that goes beyond purely economic interests is an important part of a suitable “mind-set”. HR must ensure that the organization's intentions are visible and communicate that these intentions and goals can make an important difference in the lives of customers and employees. Because, as Tickner noted, people prefer to work for a certain purpose rather than for an organization.

For this reason, the employee experience, such as talent identification and induction, is crucial to the degree to which people identify with the organization.

Furthermore, empowerment, i.e. the transfer of decision-making and cooperation, are important factors on the way to an agile organization.

Expectations of leadership have changed over time from traditional behaviours characterised by determination and perseverance to the need for cooperation and agility. Cooperation is defined as a kind of attitude that ensures that all actions are beneficial to the entire organization. This form of cooperation is facilitated by progressive digitization.

 

Tool set, skill set und mind set

As Figure 1 shows, “mind set” is the most sustainable factor in terms of change, unfortunately with the least effort invested at the same time. The investment in the development of a suitable "mind-set" is therefore the most effective way of achieving the desired change. Nevertheless, in change processes a lot of attention is often paid to "tools" and the development of "skills", to the development of a corresponding attitude, i.e. the mind-set, which should be as positive and optimistic as possible, unfortunately far too little. As long as the attitude does not fit, tools and competencies do not bring lasting success. HR can play a clear key role in promoting the development of an appropriate mind-set.

 

ROI_change

 

What do we learn from these findings?

HR should take advantage of the opportunities that arise in times of change. HR can advance an organization by becoming a real business partner and helping to find the right mind-set, without which all tools, tools and abilities will not become fully effective. Only when the attitude corresponds to the new working environment and rapid changes can these help and really support.

 

To meet these complex requirements and rapid changes, we offer you our expertise. Find out about our workshops or our concept of change management. Please do not hesitate to contact us if you have any questions or would like to know more about our services.

 


 

Literature:

Leadership Connections 2017 - HR driving business transformation (Ipsos MORI und Cirrus)