- By Anna Kopp is the Director of Microsoft Digital at Microsoft Germany
The mantra I am most famous for is: Digital Transformation is not a hobby; it is an investment area! I believe digital transformation is not a buzzword, but a journey. People, places, and technology need to come together in harmony for the new workplace to be a successful place where everyone can deliver their best work.
But the transformation does not have standalone value in a business; it needs to lead to solid business results, either gains or savings. Included in this thesis is also the gain of talent; we need the best people to want to work for us, right? If someone else provides the best workplace, they will get the best talent, being more competitive in innovation, customer service, and efficiency.
It is the motor of that transformational journey. You can’t just implement new technology and expect it to land, adopt, and integrate itself into an organization; it needs to be accompanied by change management. IT in transition means taking people with you, developing a learning culture, providing technological support for new ways of working, and ensuring security, data protection, and compliance where flexibility is also desired. There are 5 pillars of Digital Transformation that I have spoken about to hundreds of customers, if not thousands, and this gets full agreement all the time.
Change Management: Transformation is an Investment Area, not a Hobby
At the heart of any successful digital transformation initiative lies a robust change management strategy. It’s essential to recognize that transformation is not a one-time project but an ongoing investment in the future of the organization. Leaders must cultivate a culture that embraces change and fosters adaptability at all levels. This requires clear communication, stakeholder engagement, and a proactive approach to addressing resistance.
So, the big question is: how do we do this? The most important thing is to consider establishing a Transformation Officer. The skills for driving change are project management, influencing, accountability, and results-oriented thinking. Without an independent body for transformation, very often the transformation only happens to the advantage of the owning department, not the whole organization. The Chief Transformation Officer should report to the Board of Directors to ensure this neutrality, and of course, the best investment is to cascade the transformation organization down into countries and daughter companies depending on how the company is set up.
Cloud Adoption and Technology Platforms
It should still be no surprise that the word Digital in Digital Transformation is the basis for moving your organization into the future and building competitiveness. If you don’t do it, someone else will! Fact! Cloud computing has revolutionized the way businesses operate, offering scalability, flexibility, and cost-efficiency.
Embracing cloud adoption is not just about migrating data and applications but also reimagining business processes and leveraging advanced technology platforms. By harnessing the power of the cloud, organizations can drive innovation, streamline operations, and gain a competitive edge in the digital age. At its core, though, it is important to mention that you have to place security. Cybersecurity is an attitude that needs to be ingrained in every individual in a company, and most importantly, at the top. Security is costly, but even more costly if you try to save money here.
Data and Communications Transformation: One Source of Truth
In the era of big data, organizations are inundated with vast amounts of information from disparate sources. Achieving data and communications transformation requires establishing a single source of truth and implementing robust data governance practices. This enables informed decision-making, enhances collaboration, and ensures consistency across the organization. Moreover, organizations must adopt the right communication channels and technologies to facilitate seamless collaboration and information sharing.
Culture Shift: Focus on the Manager Community
Perhaps the most challenging aspect of digital transformation is driving a culture shift within the organization. Often, the company leadership looks at the people managers in the middle management layer to “fix it.” And guess where employees look?
To their managers. People managers play a pivotal role in shaping the organizational culture and driving change from the top down just as much as the bottom up because a company has goals, but so does the workforce, with the individual having personal goals both for performance and career.
Leadership principles underscore the importance of leading by example, empowering employees, and fostering a supportive work environment. By prioritizing the manager community and equipping them with the tools and resources they need, organizations can catalyze cultural transformation and drive sustainable change. It is crucial to have a few universal principles to adhere to but also to allow managers the freedom to manage the teams the way needed because, for example, a sales leader is managing a different cultural environment than an engineering lead.
The first principle is to create clarity and transparency: what are our targets and goals, where are we going and how are we getting there, and most importantly, clarify ownership, who does what, timelines, and deadlines. The manager is also the person responsible for building a trusted environment for people to feel they can do their best work, and enjoy what they are doing because, and this is not just obvious but surely statistically proven over and over again: People enjoying their work do a better job. And last but not least, accountability for the outcome: the work needs to lead to agreed-upon results, simple as that.
Workforce Transformation: Learning/Skilling and Performance Models
Empowering employees with the skills they need to thrive is paramount. Investing in learning and development initiatives enables employees to adapt to new technologies, embrace change, and drive innovation. Moreover, implementing performance models that align with the organization’s strategic objectives ensures that employees are equipped to deliver value and drive business outcomes while at the same time having a forum to discuss their personal goals and next career steps.
By prioritizing employee transformation, organizations can unlock the full potential of their workforce and fuel long-term success, but the key here is to bring company goals and employee goals into harmony, and this is done by establishing a framework for performance with documented agreements and regular check-ins.
In conclusion, digital transformation is not merely a technological endeavor but a holistic journey that encompasses people, processes, and technology. By addressing key pillars such as change management, cloud adoption, data transformation, culture shift, and employee transformation, organizations can navigate the complexities of digital disruption and emerge stronger, more agile, and more competitive in the digital age.
About the Author:
Anna Kopp has been Director of Microsoft Digital at Microsoft Germany since 2015 and has been with the company since 2004 in different leadership positions. She is the branch manager of the large main office in Munich, EMEA Lead of Women@Microsoft, member of the Advisory Board of the Munich Business School Vice Chair of the Board of Directors for Muenchner Kreis, and founding member and on the steering committee of the Female CIO Circle.
Anna comes from Sweden, where she studied International Communication at the University of Stockholm, and has been in Germany since 1992. In 2020, she was voted one of the most inspiring women in Germany and has won several technology and industry awards. She is a specialist in the new world of work from a cultural, political, and practical perspective, advocates flexible working models, and is a Gender Equality Role Model in the German Tech Industry. In her spare time, she does offroad motorbiking and sings in a rock band; she even won a Rock Oscar as Germany’s best singer once upon a time!
