According to a report by PWC, four out of five CEOs rank technological advances as one of the top three drivers that will transform their business. But only 27% said their business had actually completed or initiated an innovation-focused change programme. CEOs and business leaders recognise the power of technology. They know it will have a seismic impact on their business. Why then is there such an apparent reluctance to embrace it?
Take a look at this report in HR magazine about research carried out by Accenture. 9 out of 10 businesses understand the importance of future-proofing. 77% expected to be a digital business within three years from the time they were surveyed. Yet less than half had a digital strategy. 45% recognised a lack of digital skills was a significant barrier yet they aren’t doing much about it with only 34% of organisations regarding themselves as well prepared when it came to recruiting for those skills.
This issue has been highlighted in plenty of other research too. The same messages are emerging. Leaders know that digital technology is important. They anticipate it’s going to have (if it isn’t already having) a massive impact on the way they do business. It’s also a significant opportunity. Yet when it comes down to taking action, companies are stalling. They’re not quite sure what to do and they’re looking increasingly reluctant to be at the forefront of it.
This is the point where we could suggest that all the hesitation and reluctance is down to fear of the unknown. In some instance that’s correct. That is a completely rational fear?
However, companies are the sum of talented and committed employees and that means within many companies there’s already an army of digital experts evaluating this hesitance. Let’s not forget that outside the working environment, employees have been undergoing digital transformation for years. They’ve embraced it and integrated it seamlessly into their own lives. This is key to both increasing the likely hood of employee adoption, but also employee dis-satisfaction.
The Accenture report mentioned above found that 57% of employees think digital technologies will make their lives better as opposed to 8% who think it’ll become worse. People have chosen to use technology because it benefits them at home. Give them anything less at work, like outdated technology, and a lack of technological vision could start to make regular appearances on the ‘top reasons why your employees are leaving you’ lists.
What a moment for HR. As the function that specialises in harnessing people’s behaviours to maximise benefit for the company they work for, this is a golden opportunity to take the lead. Not only by helping others understand the opportunity technology presents, but by applying their people knowledge and implementing technology that makes a difference. Whether it’s improved customer or employee engagement, automation of operational processes or enhanced internal communication processes, HR has a key role in painting the picture and deepening the understanding about how technology can be used to transform the workplace.
It cannot be driven by one part of the business on its own of course. But who better than HR to support an organisation through the process of examining how it could work and who better than HR to facilitate engagement when it comes to making these types of changes? HR must also remind their organisation of the need to recruit the best. Adoption of the right technology creates far greater flexibility and mobility; factors that will be fundamental in attracting a new generation of employees.
Globally the business environment is evolving at a staggering rate. Companies that get left too far behind will leave themselves vulnerable. Employees are hungry for the digital transformation, and it is going to put business leaders in an increasingly uncomfortable spotlight.
What are your thoughts? Join the discussion here.
Read more on this topic over on the Workstars blog.
