It should be common knowledge by now that digitalization is not just an IT task. Oliver Foitzik explains in an interview why cultural factors are so crucial and which corporate culture contributes to companies benefiting from digitalization. Together with Katja Heumader, he wrote the article "The potential of digitalization: harnessing the intelligence of the many in the company" in the current issue of "Mastering transformation projects with the Enterprise Transformation Cycle" written.

Note from the TCI editorial team: Click here to go directly to part 2 of the interview with Oliver Foitzik - Crowdsourcing: harnessing the intelligence of the many

Digitalization: "Mindset plays a decisive role"

Beate Greisel: We often read that digitalization is not just an IT project, but that a digitalization-friendly culture is needed so that companies and employees can benefit. Why is it not enough to buy the right tools and then use them?

Oliver Foitzik: Digitalization means networking. By definition, a network structure is not hierarchical. Digitalization can therefore not be implemented with an authoritative management style. Transparency is also crucial: knowledge must be shared in the networks so that people can work together efficiently to solve problems. The mindset of the players therefore plays a central role.

Of course, tools are also important for a digitalization culture and the digital infrastructure must be provided. But they are by no means everything. The technology can only be used profitably if this infrastructure is also filled with the appropriate content.

Meeting individual employee needs

BG: How should such a digitalization-friendly culture be structured?

OF: As I just said, transparency, networking and a trust-based management style are important elements for a digitalization-friendly corporate culture. However, such a culture also includes a strong focus on employees and customers.

Digitalization means that information and goods are constantly available on a large scale. As a result Changing purchasing behavior and customer expectations. Customer experience is therefore becoming increasingly important and must be implemented across departments - in a networked way! - be implemented throughout the entire company. This goes hand in hand with the employee experience: it is the employees who create added value for customers. This creates turnover and profit for the company. Ultimately, employees, the company and, of course, customers all benefit from employee commitment and motivation. Because only enthusiastic employees who identify with the company and its goals can also inspire customers.

However, there is no one-size-fits-all solution: you have to create the optimal working environment for each individual employee - starting with a computer that boots up quickly and updates itself at night, through healthy and good canteen food, to flexible working hours and locations - depending on the needs of the individual. Employees need to feel valued by the company and their managers, who need to encourage and support them in a targeted manner - which brings us back to the topic of management style. The cultural elements go hand in hand and are mutually dependent.

BG: What role can the Enterprise Transformation Cycle (ETC) play in such a cultural change?

OF: With values and principles, strategy, processes, organization, employees, systems and process control, the ETC includes all factors that play a role in a cultural transformation process. In this respect, it is a suitable framework for initiating, managing and evaluating such a process. The topic of digitalization in particular, as a prerequisite for the use of new technological and structural possibilities, shows how important it is to review and renew all areas of the company, from value orientation to process control and technological infrastructure. Only then can the potential of digitalization be exploited profitably.

BG: The coronavirus pandemic has given digitalization a major boost, especially when it comes to mobile working and working from home. Where are the opportunities for employees in this development, and where can problems arise?

OF: Both the opportunities and the problems lie in the increased flexibility. Digital communication and the corresponding tools make it possible to work from anywhere and at any time. Of course, this makes many things easier: for example, reconciling work and family life when children need to be looked after at home. Or even the reduction of contacts when working from home.

On the other hand, there is constant availability or increased pressure due to standardized requirements. Especially when working from home, there is a risk that it will be difficult to separate work and private life. This becomes particularly problematic with standardized specifications and permanent monitoring. Differentiation is absolutely necessary here.

For this to succeed employees have the opportunity to shape their own work. A culture that focuses on transparency, flexibility and a high degree of autonomy can counteract overload and excessive demands, increase employee job satisfaction and at the same time boost productivity and efficiency.

Mr. Foitzik, thank you very much for the interesting interview. The second part of your interview is about crowdworking and crowdsourcing - two ways of working that require a digitalization-friendly culture.

The interview with Oliver Foitzik was conducted by Beate Greisel for the TCI editorial team.

"Mastering transformation projects with the Enterprise Transformation Cycle" - published August 2020

The Transformation Consulting International has been supporting national and international transformation projects in companies for many years. Based on this extensive wealth of experience in practical implementation, the second volume, entitled "The Enterprise Transformation Cycle", has been published after the first. "Mastering transformation projects with the Enterprise Transformation Cycle: successfully planning, implementing and completing projects" published by the renowned Springer-Verlag. As a continuation of the first volume, this one takes into account further wishes and suggestions from readers and presents concrete transformation projects and action situations of TCI experts in their daily application of the ETC. The editors of this 500-page volume are Mario A. Pfannstiel and Peter F.-J. Steinhoff. You will find numerous theoretical and conceptual contributions as well as practical case studies on the "Enterprise Transformation Cycle".

Source cover image: © Blue Planet Studio | Adobe Stock