Riz Khaliq, CEO at Assima, global leader in systems training solutions
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Talk surrounding digital transformation can get pretty dramatic. We hear words like “survival” and “disruption” thrown around a lot.
Digital transformation doesn’t have to be nebulous or panic-inducing.
Similar to the “end of fintech experimentation,” as stated by Ron Shevlin, banking execs are moving away from hype and focusing on value first when it comes to digital transformation projects. I also believe a grounded view, one anchored in the lives of flesh-and-blood people, cuts through the noise and gives us a more practical course of action.
Here are three basic principles that will help you turn technology into tangible business value.
Start small, refine, iterate.
Digital transformation projects are often touted as these all-encompassing, all-or-nothing initiatives. With financial upstarts grabbing headlines, banking executives are pressured to respond in turn, play catch up and innovate at all costs. This knee-jerk reaction forces them to stake everything on big moves.
This is a mistake.
The bigger the threat, the more calculated the response should be. Approaching banking transformation in increments minimizes risks, costs and gives you small wins to build momentum on.
Discovery-driven planning (DDT) is a strategic approach that encapsulates this idea. Start small, experiment with multiple processes, refine your assumptions and iterate. Step-by-step, an optimal solution will crystalize. You can then ramp up your efforts armed with more accurate metrics, enthusiastic supporters, and proof of real impact.
A good starting point is your core processes. Whether it’s mortgage lending or your support center, choose a manageable opportunity, perform pilots, gain experience and expand your digital road map from there.
This is something that larger firms can do better than startups. While the ability of fintech to pivot fast and disrupt incumbents can’t be overstated, large corporations have advantages of their own. They don’t have to bank on a single idea. They can leverage their larger resources, customer base, data and talent pool to explore multiple ideas simultaneously.
This more meticulous approach also prevents cultural transformation from failing before it starts. Go in too strong, people get spooked. But ease into it. Build digital competencies gradually. Show concrete wins. And you’ll be on your way to winning buy-in at all levels.
Instill new habits.
Our lives are governed by habits. Brushing your teeth, checking your phone — we perform these actions on autopilot. They are ingrained through repetition until they become second nature. Just like people are the sum of their habits, so are businesses.
What transformation does is disrupt habits, good and bad, that are embedded in your workforce’s daily lives. For you to introduce a completely new way of doing things, a sense of ownership for widespread acceptance has to exist.
But remember, before habits are embraced, they need to be experienced, learned and practiced. They shouldn’t be forced on employees. That’s when resentment, apathy and the proverbial resistances to change manifest.
Bad habits can keep your organization locked into the status quo. Without the right direction, people default to the path of least resistance. It’s so much easier to do and think as we’ve always done, despite lofty goals of transformation.
Simply, your workforce needs the resources, support, skills and tools to make habits in sync with transformation — so attractive, easy and natural that they have no choice but to do them. It’s become instinctual.
Again, forget massive action right off the bat. Don’t underestimate the impact of small improvements performed daily. Keep in mind that digital transformation is a multiyear process. Just like compounding interest, thousands of tiny gains from thousands of people, accumulated over time, will create exponential results. Organizations that can instill the right habits will maintain an edge and reap disproportionate rewards over time.
Empower your workforce with future-proof capabilities.
According to the McKinsey Global Survey on digital transformations, investing in the right amount of digital capabilities makes transformation success more than three times likelier. Their research confirms that developing talent and skills throughout your organization is one of the biggest levers for success.
If employees truly are the lifeblood of your business, then you must empower them with the skills to meet customer expectations and deliver real business value.
From a tactical standpoint, employee empowerment practices include:
• Programs to develop coaching skills.
• Identifying skills gaps.
• Multisession learning programs to train employees on new behaviors and mindsets.
• Individual learning modules for specific skills.
The phrase digital transformation is “about people more than technology” is a cliché because it is so true. The work that has to go into “people” transformation won’t suddenly vanish whenever the next technological leap surfaces. It will only get exacerbated.
Bottom line: Positioning employee training as a secondary priority is a sure way of introducing significant risk into the ultimate success of a digital transformation journey.
Leaders and laggards have the same goals. Both claim to be “transformational” and “innovative.” Both want to wow their customers with novel and seamless experiences. What distinguishes one from the other are actions performed by their workforce, every day, and the systems and leaders in place that shape those habits.
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