To stay competitive in a global market, organizations need to strive to change their digital landscape to the characteristics of Digital Transformation, which implies the adaptation of a Digital architecture that includes integration of the entire value chain and breaking of silos across the organization. With increasing adoption of digital lifestyles by consumers, it is crucial for organizations to change how they operate and interact with their product/service consumers on a day to day basis. Long-term strategies are no longer sustainable, and change has become the new constant.

Great Software Laboratory’s defined digital advancement assessment methodology highlights five axes of change to help organizations move towards turning complex information into actionable insights.

MIDAS Polygon

In one of our blog (Reference: What is your MIDAS?), we discussed the importance of 4 pivotal axes – Data Digitization, Process Digitization, Digital Optimization and Digital Transformation of the defined digital advancement assessment methodology.

In today’s blog, I would like to discuss the importance of the 5th axis ‘Organizational Behavior’ and why it is essential for Digital Transformation. During my interaction with numerous organizations across industries, I came across one common determinant of successful digital transformation ‘Organizational Behavior.’ Today’s organizations can change technologies, their infrastructure, and even processes with ease, but without addressing the human element, driving the organization towards a lasting change would always be a challenge.

Organizational Behavior is like an operating system of the organization. It is there managing and coordinating with the entire organization to make sure each function gets what it needs.”

Building an organizational behavior for the successful adoption of digital technologies across the organization requires everyone from leaders to front-line employees to work transparently. Undergoing digital transformation with organizational behavior built in silos is hard.  Based on my observations (interaction with 60+ companies from manufacturing industry) and after understanding several examples of successful digital transformation, organizational behavior needs to be addressed before one begins the digital transformation process. Organizational behavior is driven by people’s belief which often ties into the underlying emotional construct, hence it is vital for the organization’s leaders to convince people that the change is necessary; then help people construct and internalize an alternative belief system that would drive the new belief system.

Bottom line: ‘Organizational Behavior is the key enabler of digital transformation. Without people, even right tools & technology won’t make any difference.