Digital transformation is sweeping the business landscape. Leaders are embracing it wholeheartedly because they recognize its power. But as companies advance from pilot programs to wide-scale adoption, they often run into an unexpected obstacle: culture clash. Being a digital organization means not only having digital products, services, and customer interactions but also powering core operations with technology. Becoming one, therefore, requires a tectonic change in the activities employees perform as well as in their individual behaviors and the ways they interact with others inside and outside the organization.
When the concept of "digital transformation" came on the scene in the early 2010s, executives had visions of seamless electronic interactions replacing cumbersome manual processes. Many are still waiting for that result, a recent survey suggests. On average, 39% of business leaders today say they have the digital capabilities they seek to compete – the same level as in 2012. For leadership capabilities, only 35% of organizations today, on average, say they have the leadership capabilities required, down from 45% in 2012 (see Figure 1). While expectations have increased, many organizations have not kept pace.