Weighing the true cost of transformation

“Cultural transformation is the most significant and costly part of digital transformation because it’s essential to bring the entire company on board,” Dimitri says. “You need to explain the reasons behind the project, share the vision for the future, and explain that the company doesn’t exist without its people. Technologies can be scary because we’re immersed in a culture of alarmism, but management’s role is to reassure people that the goal is to do better and that people are always central to any organization.”

Avoiding the hidden costs

According to Nabil Moussli, technology strategist at Accenture, almost all the hidden costs of transformation are tied to cultural change, like comprehensive training, for instance, and a few hours’ course or an intuitive interface isn’t enough. Employees must not just learn to use a new tool, but adopt new ways of thinking since training shouldn’t be a one-off, but an ongoing commitment, he says.

Without a structured approach to change, even the best technological tools fail as resistance manifests itself in subtle delays, passive defaults, or a silent return to old processes. Change, therefore, must be guided, communicated, and cultivated. Skipping this step is one of the costliest mistakes a company can make in terms of unrealized value.

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