Senior leaders are resistant to digital transformation. How will you navigate their hesitation?

Senior leaders are resistant to digital transformation. How will you navigate their hesitation?

1. CONTEXT

Some years ago, a BCG survey revealed that 80% of companies planned to accelerate their digital transformation efforts.  The value proposition is clear: digital leaders achieved earnings growth 1.8 times higher than their peers.  These dynamics are evolving.  As technology-savvy generations step into key management roles and the competitive edge from digital transformation diminishes with widespread adoption, the urgency for transformation will increase.

Moreover, regardless of which generation one belongs to, everyone will eventually face the reality of becoming a “senior leader” and navigating overwhelming new technologies.  Therefore, similar survey outcomes are likely to recur over time, emphasizing the persistent challenges and opportunities of digital transformation.

2. OVERCOMING PROCRASTINATION

Navigating senior leaders' hesitation requires addressing both the threats and the opportunities:

• Threat:

The marginal contribution of technology to business growth diminishes over time. Therefore, the window for transformation leading to significant income growth is narrowing.

• Carrot:

Inspire senior leaders with the opportunity to leave a legacy. The next generation of leaders will commend those who had the foresight and courage to embark on the digital transformation journey.

3. OVERCOMING THE KNOWLEDGE GAP

While the benefits are promising, the BCG survey also revealed that only 30% of digital transformations succeed in achieving their objectives. This sobering statistic can understandably heighten a senior leader’s hesitation.

To overcome this resistance, it’s crucial to reduce their mental and physical burden while empowering them through a structured approach:

1. Delegate through a Steering Committee:

   • Position senior leaders as sponsors of a steering committee on digital transformation rather than as direct implementers.

   • The committee can report progress, challenges, and successes during management meetings, seeking advice and support without overwhelming the leaders.

2. Seek Endorsement for Key Initiatives:

   • The digital transformation committee should secure buy-in from senior leaders on:

     • Transformation goals

     • Financial resource allocation

     • Nomination of members for an operationalization/implementation committee

     • A pilot project list for initial digital transformation efforts

3. Foster Collaboration Across Generations:

   • Pair senior leaders with next-generation leaders to create an environment of mutual learning.

   • This collaboration can empower senior leaders to embrace new technologies while feeling supported by fresh perspectives.

4. THE BIGGER PICTURE

By reframing digital transformation as an opportunity to lead, empower, and collaborate with future leaders, we can alleviate resistance and inspire senior leaders to champion meaningful change. Their legacy will be the foundation for the organization’s sustained success in a rapidly evolving technological landscape