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Recent surveys show only about 30% of enterprises have a formal digital transformation strategy currently defined or being executed. So the vast majority of enterprises are not taking full advantage of the opportunities that digital transformation can offer. (Ref. Gartner 2023 CIO Agenda: Priorities and Planning Insights)
Digital transformation is considered essential for the modern enterprise (across both public & private sector). Organisations that want to remain relevant or competitive in the digital age need to improve their operating efficiency, productivity, and customer experience.
So why is there a formal digital transformation strategy in only 30% of enterprises? Some of the commonly cited roadblocks include:
Understanding: What is digital transformation and how it can benefit our business?
Resources: It can be a costly and time-consuming process.
Leadership: The change requires strong leadership from the top to get buy-in from employees and other stakeholders.
Culture: A culture of innovation and experimentation is essential but not all organisations are ready for this kind of approach.
Strategic planning is the process that provides a road-map for business success. It outlines goals, objectives, and strategies for achieving them. It is a well recognised and familiar process. Various national surveys show about 60-65% of SMEs will have a written strategic plan. It helps ensure their business is aligned and focused on the priorities. If strategic planning is done well it provides a route through the roadblocks and helps develop and execute a digital transformation strategy.
Broadly the strategic planning process is:
Defining the organisation's mission and vision.
Conducting a SWOT analysis.
Setting goals and objectives.
Developing a strategy for how the organisation will achieve its goals and objectives.
Planning for strategy implementation. Including resource allocation, scheduling and specifying implementation programs and projects.
Evaluating and revising the strategy. To keep it relevant and effective.
However, to overcome the roadblocks that otherwise prevent the development of a digital transformation strategy and to actually assure delivery, it is important that leaders bring their emotional intelligence (EQ) to the strategic planning process. EQ will help business leaders successfully:
Understand the needs of employees. One of the most important aspects of any digital transformation strategy is understanding the needs of employees. EQ can help leaders to do this by understanding how employees are feeling about the change, and by building relationships with employees so that they feel comfortable sharing their thoughts and feelings.
Build trust and credibility. In order to be successful, digital transformation strategies need to be supported by employees. EQ can help leaders to build trust and credibility with employees by being transparent about the change, and by listening to and addressing employee concerns.
Communicate effectively. Effective communication is essential for any successful digital transformation strategy. EQ can help leaders to communicate effectively by being mindful of the emotional impact of their words, and by tailoring their communication style to the audience.
Motivate and inspire employees. Digital transformation can be a challenging process, and it is important to have motivated and inspired employees who are willing to embrace the change. EQ can help leaders to motivate and inspire employees by understanding what motivates them, and by creating a positive and supportive work environment.
Only by using EQ to underpin the critical thinking that is the pillar of strategic planning, can enterprise leaders succeed in establishing a digital transformation strategy that will actually be adopted and achieved.
In addition, delivering the digital transformation strategy needs EQ coaching and support for the Program and Project Managers who will be responsible for implementation. For example a quality digital transformation program needs the PM to:
Build strong relationships with stakeholders: EQ can help program managers to build trust and rapport with stakeholders, which is essential for gaining their support for the project. By understanding the needs and concerns of stakeholders, program managers can tailor the project plan to meet their needs and ensure that the project is successful.
Manage change effectively: Digital transformation projects often involve significant change, which can be disruptive and stressful for employees. EQcan help program managers to manage change effectively by understanding how people react to change and by providing support to employees during the transition.
Resolve conflict constructively: Conflict is a natural part of any project, but it can be particularly challenging in digital transformation projects, which often involve multiple teams and stakeholders. EQ can help program managers to resolve conflict constructively by understanding the different perspectives of the parties involved and by working to find solutions that are acceptable to everyone.
In addition to these specifics, EQ can also help program managers be more effective in general by improving their communication skills, decision-making skills, and stress management skills. As a result, EQ makes a very significant contribution to the success of digital transformation project delivery.
Enterprise Leadership and Stakeholders can coach and encourage Program Managers to use and grow their emotional intelligence for program delivery by:
Communicating openly and honestly. Stakeholders should be open with program managers about their expectations, concerns, and needs. This will help program managers to better understand the emotional climate of the project and to adjust their approach accordingly.
Providing feedback. Stakeholders should be willing to provide feedback to program managers, both positive and negative. This feedback can help program managers to identify areas where they can improve their emotional intelligence skills.
Modelling emotional intelligence. Stakeholders can model emotional intelligence by demonstrating the ability to:
Understand and manage their own emotions.
Be aware of the emotions of others.
Communicate effectively with others.
Build and maintain relationships.
Resolve conflict.
Providing opportunities for development. Stakeholders can encourage program managers to develop their emotional intelligence skills by providing them with opportunities for training and development. There are a number of resources available to help program managers improve their emotional intelligence skills, such as books, articles, workshops, and online courses.
By following these suggestions, stakeholders can help program managers to use their emotional intelligence and improve program delivery performance.
The program manager themselves also needs to consider stakeholders’ expectations and perceptions to identify any specific concerns that might need to be addressed. It can be useful to focus on the key quality dimensions defined by the standard SERVQUAL model. Once any gaps have been identified, the program manager can then develop and implement actions to help close them:
Tangibles: Physical aspects of the program, such as the appearance of the program delivery environment, the people used, and the systems used. For example, if the program manager is delivering a new digital platform, they may need to ensure that even the early deliverables are easy to use and understand, and that it has the expected modern and professional look and feel.
Reliability: The ability of the service provider to consistently deliver the promised service. For example, if the program manager is delivering a new client service VC environment, they will need to ensure that the VC workspaces are able to work for users from the first experience easily, simply and quickly.
Responsiveness: The willingness of the program manager to help the client and to resolve problems promptly. For example, if the program manager is delivering a new mobile app, they will need to ensure that there is a team of customer support staff available to help users with any problems they may experience (for Day 2 support).
Assurance: The knowledge and competence of the program delivery team, and their ability to instil confidence in the client. For example, if the program manager is delivering a new training program, they will need to ensure that the trainers are experts in their field and that they are able to deliver the training in a clear and engaging way.
Empathy: The caring and individualised attention that the service provider provides to the client. For example, if the program manager is delivering a new internal product development tool, they will need to ensure all planned users feel valued and appreciated (not just product development).
By taking these steps, the program manager can improve the overall service quality of the digital transformation program and deliver a better experience for their customer, stakeholders and sponsor.
Applied EQ is the all too often missing ingredient from strategy planning and successful delivery of the Digital Transformation program.
Interested in improving the Planning and Delivery of your Digital Transformation program? Interested in qualifying the benefits Emotional Intelligence brings to you and your team during program planning, and build and run? Contact Applied EQ Services to discuss bespoke online coaching, mentoring and consultancy services.
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