The Psychology of Change in Digital Transformation #2

In the first blog, we examined the three forms of resistance in digital transformation. Let’s briefly revisit the definitions of these forms:

• Inertia: A passive attitude where employees take no action to change, but do not actively resist either. They remain in the status quo because they do not see the need for change.
• Scepticism: A critical attitude towards changes, where employees question the value, feasibility, or necessity of the proposed adjustments.
• Reactance: Active and emotional resistance to change, often driven by a sense of loss of control or autonomy. This can lead to public resistance and negative reactions.

Understanding and recognizing these forms of resistance is essential for the success of digital transformation. In this blog, we will explore how organizations can implement interventions to address these forms of resistance. While the interventions mentioned are not exhaustive, they provide a clear example of how they can be effectively applied. 

To address inertia, defaults are a powerful intervention. Defaults, also known as opt-outs, are standard options that guide behaviour by pre-setting the desired choice. This principle leverages the human tendency to choose the path of least effort. Defaults are particularly effective in change management because they subtly shift passive behaviour towards the desired action.

Other interventions can also be used, such as positive framing. Positive framing highlights how simple and achievable a change is while emphasizing the benefits that can be gained from it.

Practical example

A company faced the challenge of adopting Agile. Many teams had been working with the waterfall methodology for years and were resistant to change. The management decided to implement the change using a combination of defaults and positive framing.

First, defaults were introduced. Agile workflows were automatically set up in project management tools, allowing teams to start working with sprints right away. Stand-ups and retrospectives were automatically scheduled in calendars, so no one had to take extra steps to participate.

At the same time, management emphasized the benefits through positive framing. They focused not on what changed, but on what improved: faster results, more control and opportunities for personal growth. A pilot team was presented as a success story, with tales of innovation and better collaboration.

Within three months, most teams were fully operating with Agile. Employees reported that the default settings and positive communication helped them transition smoothly.

Effective management of scepticism can be achieved through the use of formal authority. This principle suggests that people who doubt the arguments for change are more likely to be convinced by a credible individual with formal power.

A leader or (external) expert with significant authority is often seen as a reliable source of information. Their involvement can help reduce employees' doubts and make them more open to the proposed changes. This works well in combination with the intervention of engaging in dialogue where sceptical employees feel heard, helping to alleviate their concerns.

Practical example

A municipality wanted to implement a new digital reporting system that would allow citizens to easily submit complaints and requests related to issues such as nuisance or maintenance. Employees from the Public Services department were sceptical. They feared that the system would increase their workload as reports would come in faster and be more easily tracked by citizens.

The municipal secretary explained that the new system would help structure reports more efficiently, which would reduce workload in the long term. She pointed out that the current system would create more backlogs if retained. She shared examples from other municipalities where the system reduced the number of phone calls, as citizens could track the progress themselves.

Finally, she asked employees to actively contribute their ideas to ensure the system aligned well with their work processes, emphasizing that their involvement was essential for the successful implementation.

Reactance can be reduced through the use of choice architecture, where employees are presented with choices that allow them to take small, easy steps first before larger requests are made.

The idea behind choice architecture is that by offering small, easy choices, employees are more likely to accept larger changes later on. This is partly due to their need for consistency: they want to justify their previous choices by continuing to engage in similar behaviour. It is important that the first choice is directly related to the change process, so employees feel involved from the outset.

This intervention can be effectively combined with co-creation, where employees are actively involved in shaping the change. By allowing them to make small choices and engage in the process, they feel more ownership of the change and are more willing to take larger steps.

Practical example

A municipality introduced a new digital planning system for the urban planning department, but many employees resisted. They felt controlled by the system and feared it would restrict their work processes too much. The municipality decided to tackle the system's implementation using choice architecture and co-creation.

The department manager first provided employees with small choices by having them fill out a short survey about their concerns and expectations. This allowed them to gradually adjust to the new system without feeling immediately controlled.

Next, employees were actively involved in co-creating the workflow around the system. They worked with developers to tailor the system to their work processes, which increased their sense of ownership.

By offering employees small choices and involving them in the process, their resistance was reduced, and they ultimately accepted the system without significant issues.

In this blog, we have discussed various interventions that can help organizations overcome resistance to digital transformation. If you want to apply these interventions in your organization, start by identifying the key forms of resistance within your team or organization. Ensure that you apply the right interventions based on the specific resistance you encounter. It's also important to continue communicating with employees and gather feedback to improve the change process.

We would love to hear about your experiences applying these interventions in your organization. Have you already used any of these techniques to overcome resistance? Share your insights and feel free to contact me at: kyra.koper@highberg.com.