According to a McKinsey survey, less than 30% of all transformations are successful, and this percentage is much lower for digital transformations. But why is the success rate of digital transformation so low?
Well, Beth remarked, “You can have the best technology or the greatest ideas to succeed in your digital transformation activities, but if your people don’t support these transformation initiatives, they’ll ultimately fail.”
This is why the following is the key to a successful digital transformation:
People * Technology = Success
People typically reject anything novel that could in any way alter how they go about their daily lives. This is due to:
Push yourself to ensure that what you’re releasing is superior to what people now have as you work on your digital transformation activities. They will be forced to adapt to the new technology as a result, and they will shift freely to what you’re selling. Resistance will vanish once people understand that the change is for the best.
When Tesla debuted electric cars, a significant embodiment of the digital transition, they used this tactic. The first electric vehicle was unattractive to look at and had a top speed of 38 mph and a range of 40 miles. Tesla had a difficult time persuading consumers to accept electric cars since they preferred internal combustion engines and thought electric cars were slow and unsightly.
They had to convince people that the new technology was superior to what they already had in order to overcome this obstacle. Thus, Tesla unveiled its first electric vehicle, which was stunning to look at and had a 0 to 60 mph time of 3.7 seconds and it could travel 245 miles. Despite being pricey, the vehicle did alter people’s perceptions of how attractive and fast an electric car can be. This sparked interest in purchasing electric vehicles. Tesla, therefore, continued to expand on this method and released the Model S, their next vehicle, which had a wicked acceleration of 0 to 60 in 4.4 seconds and a range of 265 miles. Additionally, this type was quicker, smoother, and safer. The idea was to convince them that it is superior. They demonstrated that it was the safest automobile on the market with a 5-star crash rating in every area for people who sought a secure vehicle. It was also the most technologically advanced vehicle that improved with time as new technology was developed. And when a small group of individuals realized that an electric car was superior, it won over other individuals as well.
Due to the fact that what Tesla was delivering was superior in many ways, they came to the conclusion that there was less opposition to change.
The second challenge is how to respond to reservations and objections. The ideal response to objections or worries is to completely address the matter, making the complaint irrelevant.
When Tesla released the Model S, concerns regarding charging issues on longer trips surfaced. Tesla made the decision to address this criticism by introducing “superchargers,” which could fully charge a car in 20 minutes. These superchargers were purposefully placed along busy roads and close to facilities.
These tactics, which Tesla employed to extend its digital transformation to customers, can also be used for internal digital changes. Here are a few instances of how Tesla used similar tactics internally.
People were working 24 hours a day in the early years of the Tesla production in 2011, therefore the company needed to provide food options. A factory cafeteria was desired by the workers. However, the Tesla team was aware that a cafeteria wouldn’t suffice because they required a system that could run continuously. As a result, they ultimately decided to build a 24/7 self-serve automated lounge for the staff. Giving folks something superior to what they requested was the goal in this situation.
Another instance is from 2014 when workers at Tesla insisted that computers be installed in the break rooms so that individuals can research issues such as inquiries about corporate policies or benefits online. Once more, Tesla made a decision to provide them more than they requested and developed an application for employment. Therefore, the goal was to give them access to the answers in the palm of their hands. Employees might receive notifications using this app for things like safety, video messages from executives, real-time shuttle information, etc. All of this was superior to what they would discover online. There are opportunities to improve upon things when initiatives like this one have an effect on personnel. And resistance vanishes once you can convince your workers that the change would benefit them.
Align your entire human resources strategy with embracing digital advances. In other words, if you prioritize welcoming change and declare that you want people to do just that, then everything else you do must support that change.
“You’re less likely to have people go to your organization if everything doesn’t lean towards embracing digital transformations. Create the frameworks that will assist your digital transformation. Everything people hear and see must be supportive of the changes you wish to see in the world. They need to understand that this is really non-negotiable”.
These three lessons from Tesla on digital adoption were the important ones. You can use these tactics to persuade people to support the change you are bringing about. You will soon have people at 100, technology at 100, and 100 times 100 of each will bring you great success!
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