Recovering from a Digital Transformation False Start
Published on : Saturday 03-07-2021
Learning from a false start is vital for successful transformation, says Mario Casoni.
The only real mistake is the one from which we learn nothing. – Henry Ford
When Henry Ford made that famous statement, he may well have been referring to his company’s early attempts at reinventing the traditional assembly line in the pursuit of mass production. After all, meaningful change is rarely achieved on the first try. It takes a certain degree of focus and resilience to keep working on a problem, even when initial efforts have fallen flat.
Today, just as in Ford’s time, we’re at an inflection point in industrial production. And, parallel to the early 20th century, companies seeking to transform their operations are likely to face several false starts before they get it right. A ‘false start’ can take various forms, and while there is no single reason why businesses succumb to one, it’s important to recognise and learn from them. Typically, it’s not the case that the concept was wrong, rather the execution didn’t align with objectives.
While it may be difficult to come to terms with a false start, those companies that recognise when things aren’t going to plan, take reconciliatory action and get on the right path will typically bounce back stronger.
Defining failure
The ‘failure’ of a transformation project can be defined in many different ways. For example, the project may not deliver on previously determined metrics, be too costly to enact, or simply suffer from poor planning and execution. The divergence between the intention and reality can often be subtle at first, but with honest self-analysis the signs of a breakdown can be identified early in order to limit the damage.
Understanding the reasons for failure is more important than just recognising them. Perhaps the company was too conservative in its approach, or prioritised cost-driven decisions over value-driven ones. In any case, once momentum has been halted and doubt has crept in, it is almost impossible to rectify. Once you know what the cause of the problem was, you’ll be better positioned to adapt future strategies to avoid the same mistakes again.
Another main cause of failure is due to imitating or copying a competitor’s approach towards digital transformation. The impetus for change has to be orientated around your specific situation and needs. One transformation blueprint will not work for everyone, as perspectives and capabilities will all differ from business to business, so the approach your organisation takes needs to reflect this.
Rebuilding
How a company approaches the process of recovery will depend on the type of digital transformation it’s striving for. Some companies are seeking digital optimisation, i.e., making production processes more efficient, while others are seeking digital innovation, i.e., reinventing their existing business model. Depending on these approaches, the notion of what constitutes a failure will be significantly different, yet starting from the perspective of “why” is equally key for both types of digital transformation.
Starting from “why” results not only in much bigger success rates overall and in more successful recoveries, but also in a faster and more effective selection of the technologies that support transformation. With clear objectives in mind, the selection process becomes purpose-focused as opposed to generalist (rather than “we want the best IoT technology” the focus becomes “we want the best IoT technology to do ABC and then XYZ”), typically resulting in a smaller failure rate due to technology shortcomings.
In rebuilding, organisational mind-set is key. Any prospective changes should be approached from a positive and growth-oriented perspective, as one false start should not lead to becoming overly cautious, otherwise you will simply fall further behind.
A false start can still provide key learnings to be put towards a future digital transformation. By analysing the data you have collected during the previous attempt, your learnings can help better inform the next one. Better quality data leads to better decision making and therefore a digital transformation approach more closely aligned with business goals.
Bouncing back
Having the plan for digital transformation is one key step, with the next one being proper communication with all stakeholders, regarding both why and how it will be done. Everyone needs to buy in to the strategy, so explaining why it’s being done can help energise the second attempt, build momentum, and produce a greater understanding of the bigger picture for all employees.
Part of the initial reason for a false start will likely have been people not connecting with it or feeling like it doesn’t apply to their role. Everyone needs to be fully aware of the opportunity, the ambitions behind the approach and the impacts it will have on the business as a whole.
Transformation, of course, is an ongoing process and so the rebuild requires a commitment to continued development. There will likely be training needed as familiarity with the digital technology is a core pillar of success. This should also be seen as an intelligence-gathering opportunity, taking onboard areas where employees are struggling in order to build those learnings into the transformation strategy.
Getting there in the end
One false start is not emblematic of failure. Rather, it can lead to sustained success down the line if the right steps are made afterwards and the right learnings are taken from it. The key is not to shy away from the risk of failure, but instead to recognise the reality and be open-minded towards recalibrating – and even pivoting – your approach in line with new information. This type of approach will rely on data analysis, proper planning and executive-level buy in. Being willing to accept the challenges head-on and adjust course will help engage and instil your organisation with the necessary motivation to enact a successful digital transformation programme on the next attempt.
A false start is just that; it doesn’t mean you can’t start again, but instead presents a chance to build on the learnings in order to redirect efforts towards more productive ends. As Ford realised over a century ago, as long as you learn from the mistakes then you’ll ultimately be more successful the second time around.
Article courtesy: Rockwell Automation
More information on how to make a success of the digital transformation is available at the Management Perspectives hub – a wealth of resources for executive industrial decision-makers, providing the information needed to thrive in the evolving digital landscape:
https://www.rockwellautomation.com/en-gb/capabilities/connected-enterprise/management-perspectives.html
Mario Casoni is Director, Digital Transformation Group, EMEAI & APAC at PTC, a Strategic Alliance Partner of Rockwell Automation. He is a knowledgeable and transformative business leader in the Software Industry, finding excitement and contentment in turning high-stake business challenges and opportunities into shareholder value. Casoni has built a history of success in helping customers solve complex business problems and generate new revenue streams through the deployment of software applications and tools across sales, engineering, manufacturing and service processes.
