3 Ways Digital Transformation Affects Company Culture

March 22, 2023

Digital transformation tackles a lot of touch points within the organization. It’s heavy on improving business processes, but it also involves instilling an adaptive work ethics and reforming company culture.

I talked about digital transformation and its various pillars, agents, and types before. It basically refers to the integration of modern technology to optimize internal and external operations in order to improve competence, lower company costs, and ideally serve customers better.

Now, I’m putting the spotlight on its other unexpected aspects such as the Cultural Transformation. Why is it important? Simply because tools and assets can be easily changed, but company culture is harder to build.

What is company culture?

Forbes defined it as the collective visions, values, and assumptions of the company. It includes the norms, beliefs, language used, and many more.

Going beyond as an HR issue, having a solid structure of company culture can bolster business performance by motivating, engaging, and retaining employees to the right direction. In fact, a global report by Deloitte mentioned that 82% of their respondents believe that it can be a competitive advantage to stand out in the market.

No matter what industry you’re in, a company with a strong culture will be more in demand both internally and externally as it reinforces its employer branding. People would want to work for your company and they would love to support your products and services, too.

To add to that, it can even save the entire firm in turbulent times such as unprecedented economic crises—all due to transparency, open communication, and fluid collaboration. However, it’s easier said than done. You might be surprised to know that 53% respondents from the same report have a hard time measuring or managing their corporate culture.

Digital Transformation can help in this regard. Through proper implementation and effective leadership, it can affect company culture significantly.

Realigns employee purpose

Since digital transformation is an extensive process, it requires the upper management to communicate all changes in detail. This can be done through a monthly meeting, town hall, or even by producing a company guide.

This gives the whole team better understanding as to what the company wants to do and where they sit in the bigger picture. This will give them a sense of belongingness that, ultimately, promotes longer tenures and higher employee retention rate.

Promotes employee engagement

Acquiring new tools and technologies bring efficiency to its maximum potential. How? By increasing work productivity, which lets employees fulfill their purpose in the organization.

Fulfillment at work is a big drive to perpetuate motivation and job satisfaction. It’s a strong force that can yield powerful results from each individual. As long as the employees are actively engaged and generating output, it will boost self-esteem from accumulative achievement and contentment.

Fosters innovation

Digital transformation can also turn the company into a hub for innovation. As contemporary automation are introduced, it will allow employees to learn new things—be it hard skill or soft skill.

Depending on the industry, cross-departmental collaboration might be needed, so having the right skill sets is necessary. Train your staff and let them grow. This will give them value and have the perception of getting an equivalent exchange for the brand.

You can also utilize tools that show comprehensive reports and analytics from relevant data to know what areas need to be improved and so forth.

Who are the key leaders in cultural digital transformation?

It’s really up to the CEO or the founders to lay out the foundation of the company culture that they envision for the organization. Whatever they decide on will cause a ripple effect that will flow to the very bottom of the pyramid and impact entire operations from the inside out.

You would also need to train managers to be the herald of changes. This will enable continuous monitoring of development and makes it easier for communication should there be any feedback or suggestions to make the entire set-up better.

It will be easier for staff to express themselves and unleash their creativity to their direct manager. From there, the said supervisors can bring it up to the management and report important news or ideas, if any.

In summary, digital transformation is not all about technology. It also discusses the reshaping of the company culture under compelling leadership.

Understanding such changes—why it’s being conducted, what’s the goal, who’s it targeting—will bring clarity and a clear direction for all that leads to long-term business success.

Get in touch with the team and source the talent your digital transformation needs!