“When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.” George Westerman, principal research scientist, MIT Sloan Initiative on Digital Economy
Digital transformation is something we’ve all heard about. By now, many of us have gone through versions of digital transformation, both good and bad. Some notable examples include the automation of manufacturing, mobile banking, contactless transactions, ordering goods through smart home assistants and the rise of virtual collaboration platforms and even email.
A Range of Skills
One digital transformation project will differ drastically from another, even within the same company. That influences the kind of skills that are needed to make it a success. Because the best digital transformation strategies can be undone if you don’t have the right people, with the right skills, in place to make it a reality.
That’s why the butterfly analogy mentioned by George Westerman is so appropriate: A caterpillar transforms into a butterfly by becoming a pupa. If you look at this stage from the outside, it looks like nothing is really happening. But a whole load of prep work is being done behind the scenes. Without this groundwork, your digital transformation will not take flight into a truly impactful initiative for your business.
Building the Right Skills
So how can you build your team’s digital transformation skills?
I would argue that digital transformation skills are built in the same way that any skill is acquired (through learning, experiences, reinforcement and feedback). However, “digital transformation skills” is a somewhat loaded term — probably because there’s a lot riding on it. Two years ago, almost three-quarters (73%) of all companies did not have a digital roadmap. Now, half of organizations have a digital roadmap that aligns with their business plan. Direct digital transformation investments have accelerated and are expects to be 55% of all IT investments by the end of 2024.
Evidently, there’ll be a lot of eyes on your upskilling program. But if you get it right, skills will be the building blocks to greater innovation and business growth.
Knowing What’s Needed
Let’s start with identifying the skills you need. These will change depending on the nature of your transformation and current market trends.
To understand the skills required for your project, you need to have close alignment with the project leader. This might be a chief information officer, chief technology officer, chief digital officer or other C-suite executive.
If you know the digital transformation strategy and priorities, you can break it down into roles and tasks, then skills and competencies based on these roles and tasks. You can map this against your existing workforce skills to see where there are gaps that can be filled through upskilling and reskilling.
Power Skills Will Uplevel Your Transformation
Remember, the skills needed might not always be technical. Power skills such as change management, communication and team building really come into their own when a workforce is undergoing digital transformation. It’s how you equip your people to work alongside a new technology. Take the consumer goods company Unilever, for example: At its FMCG factory in Dapada, India, the leadership team recognized that knowledge and skills were a core part of its digital journey. By upskilling factory workers in analytics, machine learning (ML) and 3D printing, it accelerated their adoption of the new technologies and processes.
Picking the Best Learning Tactics
Once you know your required skills, you can assess the best methods to build those skills. Some skills are best learned on-the-job, others through talent academies or classroom-based learning and others through online learning platforms. You can also use a range of methods to suit individual learning styles.
Don’t underestimate the critical role that managers play in upskilling. In organizations with positive learning cultures, employees are 515% more likely to have discussed growth opportunities with their manager, and are 379% more likely to have had their manager seek out assignments for employees to practice their skills. Equip your managers to succeed in upskilling their teams by enabling them to find L&D opportunities for team members. Give them access to skill and learning data to inform development and career conversations. Finally, upskill them so they’re ready to mentor and coach their teams — they might need a host of new power skills too!
Overcoming Barriers to Learning
There might be barriers to learning that are unique to your workforce. These should be brought up to the leadership team when your digital transformation is in the planning stage. This will give you enough time to overcome the barriers before the skills are critically needed by the business. Common barriers include time and culture (especially if senior leaders aren’t seen to support learning). Equipping managers with coaching skills will help to address the latter, and clearly communicating upskilling as a business priority will combat the former. If that fails, rewards can really grab someone’s attention. Make sure you regularly recognize individuals and teams who are building business-critical skills.
Infrastructure is another consideration. What do you need to provide to enable your team to learn? Time is obvious, but what about devices for front-line and deskless workers? In some places, people will also need internet access. Additionally, think about the accessibility of online learning versus in-person, classroom-based learning.
Off to a Flying Start
When a butterfly first emerges, it can take hours before it’s ready to fly. It needs to wait until it’s fully dry and prepared to take that first leap into the air. In the same vein, you need to have the skills in place before your digital transformation gets off the ground. Equip your team with the right tools, content and culture to learn the necessary skills, and your digital transformation will start on a strong foundation.
