Digital transformation is a big deal. Private, government, and third-sector organizations are trying to meet rapidly evolving customer expectations. Today’s user experience is centered around what digital technologies are capable of — more automation, real-time information, hyper-personalized messaging, and so on. To maintain loyalty, organizations need to deliver these digital experiences.
The amount of money companies are spending on digital transformation is indicative of this. In 2023, companies and entities around the world spent $2.15 trillion on implementing digital services and new technologies into their processes. Global spending in this area is forecasted to hit $3.9 trillion by the year 2027. This includes things like adopting cloud computing services, automating workflows, or making use of artificial intelligence and machine learning.
Leadership teams are the driving force for successful digital transformation initiatives. As consumer expectations change and companies become more digital, leadership needs to adapt accordingly.
How Digital Transformation Differs in Public vs. Private Sectors
Keeping up with ever-evolving customer expectations and digital solutions is tricky for any organization. The COVID-19 pandemic also sped up digital transformation.
Historically, public institutions are not exactly known for being trailblazers of digital modernization. However, private companies work in a much faster market. Private entities adopt customer-centric business models that require digital transformation to retain competitive advantage and profitability. They have the advantage of being able to work with early adopters and experiment with new technologies without the same constraints faced by public institutions. This allows private businesses to take calculated risks, iterate quickly, and, ultimately, gain a competitive edge.
With government and public institutions, there are two major factors that contribute toward a slower and trickier digital transformation process:
Lengthy approval processes and bureaucracy. Public institutions often have complex approval processes with multiple layers. This tends to discourage innovation and experimentation. Employees are afraid to put forward new ideas, knowing how long and painful it will be to adopt new processes.
Resistance to change and a risk-averse culture. The organizational culture within public entities tends to be more traditional. There tends to be more of an “if it ain’t broke, don’t fix it” mentality that discourages exploring new technologies or processes.
This doesn’t mean that digital transformation is any less important in public institutions. On the contrary, it presents a unique opportunity for government entities to better communicate with their constituents. Local government entities can use digital capabilities like dashboards or apps to keep an open line of communication with residents instead of leaving them guessing about neighborhood happenings.
For example, an increase in police presence can be alarming. But if citizens have access to information and open channels of communication, their concerns may be addressed. There could be more police on the street because of a targeted initiative to deter speeding in the school zone, a community policing program to increase foot patrols, or even a planned neighborhood event where residents can meet the officers stationed in their area.
The Changing Demands on Leadership in the Digital Age
Digital transformation success requires transformation on a leadership level. Leaders must cultivate or hone skill sets to navigate the digital transformation journey:
- Empathy and change management: Leaders need to understand and address employee concerns during digital transformations. This requires empathy to navigate resistance and guide teams through change. Being well-versed in change management principles is crucial.
- Innovation and experimentation: Any leader serious about digital transformation must foster an ecosystem that embraces creative solutions, encourages calculated risk-taking, and thrives on experimentation.
- Communication and transparency: Leaders must articulate the roadmap for their digital transformation efforts, communicate progress, and be transparent about challenges encountered.
- Collaboration and stakeholder engagement: Digital transformation requires both strong internal and external partnerships. Build bridges with stakeholders and foster collaboration to achieve shared business goals.
How to Develop a Transformation Mindset
In addition to new technology, digital transformation requires an evolution in organizational culture. A digital business or organizational culture is a culture that is:
- Easily adaptable to change and unforeseen events
- Innovative and welcomes experimentation
- Customer (or citizen) centric
- Transparent and collaborative
- Centered around data-driven decision-making
- Continuously learning and developing
Here are some key strategies leaders could use to cultivate a culture like this:
- Open communication and feedback: Establish clear communication channels and regular feedback loops. Clearly explain the “why” behind the transformation. It’s not just about ticking boxes. The idea is to create better customer experiences and optimize business processes or operational efficiency. Actively listen to employee concerns, address them openly, and provide support during the transition.
- Embrace experimentation: Create dedicated spaces like innovation labs or hackathons. Encourage employees to experiment with new ideas and celebrate small successes. This fosters a learning environment and helps identify valuable solutions or even new products or services.
- Cross-functional collaboration: Break down silos by building cross-functional teams. Encourage collaboration between departments to bring different perspectives together. This ensures alignment of your organizational or business strategy.
- Upskilling the workforce: Equip your employees with the digital skills needed to thrive in the new environment. Offer training programs, workshops, or online resources to bridge any gaps in digital proficiency.
- Using the right tools: Identify and use technology that fits your digital strategy. Tools like AchieveIt are great for streamlining communication, fostering transparency, and unlocking data analytics.
These strategies will encourage employee buy-in and set the tone for successful business transformation.
Unlock Exciting New Capabilities with AchieveIt
AchieveIt offers a wide range of functionalities to support your digital transformation journey, from designing your strategy to achieving the desirable business outcomes.
One successful example of digital transformation we have seen time and time again is with our public service clients. Many use AchieveIt to create and use public-facing dashboards. These are great for enhancing communication between citizens and governments and shaping public narratives.
Our team can also guide you with what to include on your dashboard in a consultative process. Have a look at some real-life dashboards that we’ve helped create:
- City of College Station, TX: Key performance indicators for the city. Explore the dashboard.
- Dubuque, IA: How the city is supporting economic development and growth. Explore the dashboard.
- Dubuque, IA: Resident engagement in city governance. Explore the dashboard.
- Washington State University: Annual objectives for the 2023-2024 academic year. Explore the dashboard.
- Macon-Bibb County: The county’s Code Enforcement department’s performance. Explore the dashboard.
- City of Torrance, CA: The city’s strategic plan and how AchieveIt aids in its execution. Explore the dashboard.
If you’re interested in learning more about how AchieveIt can become an integral part of your digital transformation journey, reach out to our team today.
