Cultural Transformation

Company culture has various definitions. The culture, which is set in companies over time and takes a certain period of time to change, consists of shared beliefs, acceptability patterns in minds, and unwritten rules learned through experience. In an organization where employee engagement is high, systems are in place, and Company Values reflect the culture, things may run, even better, without the intervention of the General Manager or the CEO.

Digital transformation is talked about in companies today. However, it would be better for companies to implement an innovative Business Transformation program before attempting a digital transformation. Because if your strategy, business model, leadership approaches and culture are not in the right place, a digital transformation initiative will only accelerate the confusion! Perhaps for this reason, according to various studies, 70% -85% of digital transformation initiatives cannot achieve their goals. It is wrong to think that companies are ready for a thorough digital transformation in every field.

For example, “silos” representing various functions in a company undergone digital transformation have little or no role. This means a devastating change in management. The role of management is not of previous importance either. Decision making systems are based on advanced analytical algorithms. Customers, suppliers, employees are connected through systems. Machines have replaced manpower wherever possible. For such a scenario to have a chance to be implemented, the human factor has to be key. Otherwise, there is a risk that the internal resistance that may arise will cause failure. Of course, no matter how digital a company becomes, the humans will still play a critical role.

When it comes to digital transformation, large companies in traditional sectors come to mind. A digital transformation is not valid for “Digital Born” companies like Google, Apple, Amazon, or even IBM. However, it is not right for the big established companies to say we should do exactly the same as these companies are doing. Things that are valid in that culture may not work exactly elsewhere. In fact, companies like Amazon and Google are discovering and adjusting the parts of their culture that don't work well. Amazon, for example, used to be a high-tension and highly competitive business environment, but now it has turned to a culture that emphasizes collaboration. Google is a company that is constantly trying to fix some of its problematic applications.

One of the biggest mistakes companies can make is attempting a total digital transformation initiative while still having a traditional rather than innovative culture. Do not do this. In fact, don't use the word digital at all. Digitalization should not be something that is done because it is a goal or fashion in itself. If the aim is taken as improving business results and productivity of the company, the right way is found easier. Take a step-by-step approach to weave between the current state of the company and its target, while keeping the vision in mind. Be prepared to make changes with respect to your original plan as you progress towards the goal. Avoid departmental projects. Transformation attempts made in silos are doomed to failure. In particular, do not announce the matter as an IT initiative.

While doing all these, communication and cooperation should be at the forefront. Because here we are talking about an initiative towards organizational change. First of all, it is important for the team to understand why there is a need for change. One of the ways to ensure adoption in the Middle Management and employees is to prioritize projects that will make their lives easier. For example, some projects that will keep the pulse of employees and give them "forward-notifications", or applications that contain social technologies that facilitate communication and collaboration among employees.

Digitalization is something that is already moving step-by-step in many companies, although it may not be named. Today we are not working like ten years ago. We use and will continue to use developing technologies. Digital transformation takes them into consideration as a whole. It's not just about technology, it's not even about technology as the right starting point. It includes business activities, processes, business models, partners, assets, customers, management and employees. It affects decision making processes, connections, and transfer of work to machines. It focuses on the extremes. It is not something to be avoided, but it is not something to be attempted without serious consideration of its implications and a comprehensive preparation. It is a subject open to overestimation and exaggeration. What matters is that a cultural transformation in traditional companies should take priority.