Technology Implementation – “Ignore human capital at your peril”
Technology Implementation – “Ignore human capital at your peril”
Embarking on technology implementation and more specifically digital transformation is not for the ‘faint hearted’. Success should realise a return on investment and reinforce a competitive advantage but there are risks. Ensuring the digital transformation aligns to the organisation strategy is vital as is ensuring the selected technologies will achieve specified goals (Deloitte, 2023). However, while these activities are important the real challenge is implementation of the strategy which requires focusing on human capital (Fernandez-Vidal, 2022).
For example, without strong leadership and tight management of everyone impacted by implementing an ERP, many aspects of daily operations can quickly go wrong, and diminish any expected ROI. Success is not solely about implementing the right technology, but also the organisation’s ability to adapt and adopt new processes, resources, behaviours, and ways of working. This change capability is a value catalyst (Deloitte, 2023).
So, what can organisations do to mobilise human capital and deliver the expected ROI?
Leadership
For employees to accept change and new ways of working requires managers at all levels to inspire people, making it clear ‘what is in it for them’ and providing a captivating and inspiring vision that resonates. Leaders need to control the agenda by explaining their vision, providing meaning to the need, and framing the future in a way employees are inspired and positively influenced (Ruben, 2016). Implementation also requires a strong coordination and collaboration effort across the whole organisation’s management team. It’s not just the CIO’s responsibility.
Organisational Routines
While managerial processes may be codified the reality is organisational routines, the way the business really works, develop informally as employees develop their own processes. If these variances are not captured correctly, assumptions will be made as to how the organisation operates. Mapping and then analysing the ‘as is’ and working out how technology will affect organisational routines will minimise problems with adoption by employees.
Roles and Norms
Large scale technology implementation may result in the new business model changing the organisation’s structure. Roles may change, teams may change, and people may leave. Employees may feel unsettled. Leaders must be sensitive to this situation, by valuing the opinion of their team, being transparent and honest, and building trust.
Skills and Knowledge
Not all the skills and knowledge to exploit the technology will be codified. While a supplier of the technology will provide generic training it is the uniqueness to the organisations way of operating the technology that may not initially be known. That ‘new’ knowledge needs developing and transferring. A learning culture needs to be created so that knowledge and best practice can be exploited.
Organisations may not have the experience or skills to implement a major technology change, such as ERP, as such they may need external support. Nine Feet Tall have the experience, knowledge, and skills to provide that support. Whether it is help with creating the strategy, managing the change, mapping organisational routines, developing new organisational designs, or developing effective communication plans, Nine Feet Tall can help. Get in touch today.
