Employees’ Fear of Change Putting Competitiveness of British Firms at Risk
October 30 2017 - 8:01PM
Business Wire
Organisations failing to realise value of
digital transformation programmes due to a lack of investment in
cultural reform
Employees’ fear of change is putting British businesses at risk,
according to a new research report unveiled today by Microsoft.
The study – conducted in collaboration with Goldsmiths,
University of London, and YouGov – found that the majority of
businesses investing in digital transformation programmes face a
common challenge in realising value from their investments: the
human factor. Findings reveal that moves to improve how people work
by introducing new technologies creates anxiety among employees
(61%), the automation of tasks creates fears about job security
(59%) and staff express a fear of change when digital
transformation initiatives are introduced (49%).
The report, entitled Creating a Culture of Digital
Transformation, is based on interviews with more than 1,000
business leaders and employees in organisations across the UK,
making it one of the most extensive reports on the country’s
digital transformation to date.
“Digital transformation is not just a technology deployment or
an IT exercise, it’s a people exercise. Leaders of all
organisations must therefore embrace cultural transformation from
the top and explore the behavioural shifts needed to bring about
lasting change,” said Cindy Rose, Microsoft UK Chief Executive.
“This comprehensive report shows there is a deep-rooted connection
between those organisations that invest in nurturing cultural
change and those that are able to fully unlock the value of their
technology investments.”
Despite the concerns shown by employees and the impact this is
having on organisations’ ability to boost productivity, less than a
quarter (23%) are investing in cultural change programmes to help
their workforces adapt to changing working practises and realise
the value of investments in technology.
Clare Barclay, Chief Operating Officer, Microsoft UK, says: “We
are seeing a growing divide between those organisations that are
geared towards driving the cultural change that supports technology
investments, and those that aren’t. This is a major concern –
evidence suggests that if you don’t address the human elements of
change, successful transformation is unlikely to happen.
Organisations must have the right culture and change programme in
place to unlock the true value of technology. Creating a culture in
which technology blends with human potential is where the magic
happens.”
The report also reveals that just 53% of organisations are
currently investing in digital transformation programmes, despite
the same number (53%) expecting their industries to face disruption
within the next two years.
Carol Dweck, Professor of Psychology, Stanford University, says:
“Some people are afraid of the technology, don’t want to use it,
don’t feel comfortable with it, and want to keep using their old
skills as long as possible. It’s vital to shift the ethos from
being outcompeted or sub-genius in a genius culture, to the idea of
a shared struggle where mistakes are inevitable and your team
members and company have got your back.”
Patrick Murphy, Director of Finance and Corporate Services,
British Medical Association, said:
“Four years ago, our workforce had not experienced technological
change like what we hoped to undertake. We needed to pave the way
for change and invest significantly in change management to see the
transformation required. It takes time to embed itself into
people’s daily work lives but, by getting an insight into how
people use our systems, we reframed the way our staff do things. It
is critical to create an environment that allows for positive
engagement so people are more informed, know what’s going on around
the business and what we’re saying to the outside world. We created
a sense of engagement, which enriches the experience of working in
any organisation.”
To download the full report please visit
aka.ms/digital-transformation-strategy.
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and
productivity company for the mobile-first, cloud-first world, and
its mission is to empower every person and every organization on
the planet to achieve more.
Note to editors: For more information, news and
perspectives from Microsoft, please visit the Microsoft News Center
at http://news.microsoft.com. Web links, telephone numbers and
titles were correct at time of publication, but may have changed.
For additional assistance, journalists and analysts may contact
Microsoft’s Rapid Response Team or other appropriate contacts
listed
at http://news.microsoft.com/microsoft-public-relations-contacts
*All figures, unless otherwise stated, are from YouGov Plc.
Total sample size was 1,003 Business leaders in middle management
or above in UK businesses with 500+ employees. Fieldwork was
undertaken between 22nd September - 3rd October. The survey was
carried out online.
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