Research reveals digital transformation projects failing due to disregard for company culture

Temporall | 21 Nov 2018|

Less than 5% of companies define culture, constantly communicate it and position it within the fabric of their company as a lever for growth and success.

London, Wednesday 21st November: Business leaders find it difficult to understand and measure culture as a key performance indicator, which is a leading contributor to the failure of digital transformation projects. The findings are from a new study by Temporall, which has been launched via Think with Google, Google’s source for insights, trends and research.

The research – of over 400 business leaders – was conducted to determine the cultural landscape of major UK businesses and if or how companies are adapting and changing their culture to meet external and internal pressures.

Among *high-performing businesses, 70% had a strong mission and purpose that was communicated clearly and regularly by the leadership team to all employees. This shows a strong correlation between high-performance business and organisational culture, which is central to successful digital transformation projects.

Yet, the majority of business leaders included in the study found it difficult to define ‘organisational culture’, incorrectly thinking it is primarily linked to inclusivity. And when asked what they would change about their company culture, responses were broad and centred around HR processes.

Structured culture management breeds success:

  • The small proportion of highest performing organisations had an average year-on-year growth of 46%
  • Of those, 70% had a strong mission and purpose that was communicated regularly by leadership
  • Two-thirds reported high-level employee engagement
  • 78% felt encouraged to take initiative and drive change

In addition, 41% of employees agreed that the technology department is not well integrated with the business and only works to find solutions to business problems.

Thomas Davies, founder and CEO of Temporall says. “Successful digital transformation means recognising culture as a strategy. To drive sustainable growth, business leaders need to get to grips with how to measure it, adapt and maximise it. Otherwise in the era of digitization, and in preparation for the fourth industrial revolution where you need to embrace collaborative innovation, and change to how organisations run your business won’t make it.”

Only 5% of companies understand culture, constantly communicate it and position it within the fabric of their company as a lever for growth and success. The research allowed the grouping of four key attributes to define culture: people, organisation, technology, leadership. The research has revealed that for successful digital transformation, organisations need to align all four attributes to create a culture that can absorb change and innovation. Worryingly, the findings suggest companies have a long way to go to achieve the right alignment between technology and culture.

Joris Merks-Benjaminsen, EMEA Head of Programmes at Google Digital Academy said, “Measuring your cultural learning curve is a powerful transformation enabler. It highlights what’s working. It keeps things on track that might otherwise slip. It provides focus. As a way to quantify the value and ROI of your people operations, culture of innovation and leadership really matters.”

View the official report here…

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