Digital Transformation and Crisis as a Chance

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Our Knee-Jerk Reaction To Crisis

Digital transformation is a valuable solution to address crisis. But not everyone has the same approach when it comes to unwanted situations.

We have all seen the headlines. A crisis hits a company, and the first thing they think about is their shareholders and profits. Protect the money at all cost, and so they take a knee-jerk reaction and start to lay off their staff.

Initially, all goes well as this has shown to be the most cost-effective way of reducing cost. But what about the mid or long-term impact?

The loss of staff, especially those who have been with the organisation for any length of time, means losing their wealth of skills and knowledge. Eventually, you will see a loss of growth and credibility.

One prominent example is when a South American country expressed its reaction by laying off 50,000 employees in one month. This incident made massive employment history.

Below are some of other national and global impacts:

  1. Exchange rates weakened by 8%.
  2. The economy faltered, and the situation led to demonstrations.
  3. A loss of credibility for the government.

The question remains: where does Digital Transformation come in all of this?

Digital Transformation to Alleviate Crisis

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We are not suggesting that digital transformation is the magic wand to be waved and all a company’s problems are solved. Job losses are inevitable.

However, job creation within the digital world has proven that profitability and growth are achievable. Those people with their skills and knowledge of the organisation are the people you need to develop digital transformation.

Adjusting business processes to incorporate digital automation does require investment in products and people. 

With functionality-based processes and a consolidated, well-trained workforce, any organisation, big or small, increases their chances of performing profitably in today’s economic climate.

Challenges With Digital Transformation During Crisis

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We observe that so many stay just like frozen or inactive, waiting that the Covid-19 disappears or a government help program through these challenging times.

However, many people are resistant to change, especially those with skills acquired over many years.

This is where consultants and coaches specialising in change-management can provide expertise and guidance to organisations. 

Their understanding of digital transformation and its impact on people within an organisation gives them a great understanding of changes that need to be made, not just with processes but with people. 

Resistance to change may be caused by something as simple as a lack of communication within the organisation to major changes. 

Some other examples include routine changes, leadership style, training needs, or a perceived lack of management confidence. These lend themselves to a reluctant or maybe even recalcitrant workforce.

Moving Forward

We are forced to change and work from home-offices for a long time, and it seems it works.

By investing in proficient consultants who can work with CEOs, managers, and team-leaders in identifying and facilitating the fundamental changes required, embracing Digital Transformation no longer needs to be daunting and unobtainable.

With the global economy operating in the digital world, the future for any successful organisation has to incorporate R&D, specialised software, programming, and a changing marketing strategy.

But the biggest investment is in people. Giving them the skills in a new way of cooperative and collaborative thinking and working. Valuing their loyalty and trust in you and your managers acknowledges the need to enter into the Digital Transformation world and all that requires them.

So what are you waiting for? Digital Transformation is the future, and we are there to help you achieve it.

Contact us if you have any questions.

Klaus Knops

Klaus Knops

Klaus is an experienced manager, CEO and entrepreneur with over 30 years in the construction industry as a manager and consultant, having lived in Europe and Latin America.

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