Putting People at the Heart of Digital Transformation Leads to Greater Success – But What Does This Really Mean?

By Emma O’Brien, Founder and CEO of people-first business transformation consultancy, Embridge Consulting

Despite widespread digital transformation investment, success rates remain staggeringly low. According to a 2024 KPMG and Forrester study on public-sector transformation, for instance, just 17% of decision-makers who have adopted digital solutions to transform their services consider the move to be completely successful. Failures are most often attributed to a lack of strategy, skills and budget, as well as process inefficiencies and governance. At its core, however, the challenges all boil down to people.  

Digital transformation is too often viewed through a technology-first lens, with organisations investing in the most sophisticated software and systems available on the market, without really understanding how these solutions will integrate with existing operations and people. Nevertheless, success amongst employees and staff is critical to determining whether these investments will ultimately succeed or fail, with true transformation centred around ensuring that everyone – from key C-suite decision makers to frontline employees – are equipped, engaged and empowered to make change work.  

More than just technology 

After surveying 148 decision makers in the UK public sector, KPMG and Forrester were able to shed light on the multifaceted barriers to successful digital transformation. Whilst technology itself often presents difficulties – with 49% of respondents citing a lack of technology strategy, 37% citing complex software and 28% citing poor cross-departmental interoperability as their struggles’ cause – these issues are merely symptoms of deeper-rooted organisational challenges.  

Process inefficiencies further compound this struggle. Security concerns (37%), organisational silos with conflicting priorities (26%) and a lack of agility to adapt to new capabilities (23%) all indicate that digital transformation is being stifled by structural inertia. Once again, these problems arise due to a lack of preparedness at people level, highlighting the urgent need for cultural support and training alongside technology.  

On a more direct people level, then, the study found that 42% of decision makers reported a lack of technology-specific skills or knowledge within their organisations, with 37% pointing to inadequate training and 23% citing a reactive, risk-averse culture as a major roadblock to successful transformation. Similar patterns can be seen across the private sector, too, reinforcing the need to integrate human considerations into each and every step of the digital change journey.  

A human-centric approach 

Whilst it is evident that people must remain a key focus, the majority of leaders nonetheless struggle with what it actually means to put people at the heart of digital transformation. At its core, it’s a case of shifting mindset. Technology must not be imposed on employees as a solution in which they have no input or choice. Rather, organisations must engage their teams from the outset, asking team members about the problems they encounter and wish to resolve. Decision-making leaders can then demonstrate how the digital tools they have chosen respond to these challenges, proving to end users that the investment is intended to enhance, rather than threaten, people’s roles.  

Instead of introducing new systems with little explanation, leaders must invest in comprehensive training, which is equally as important as the new technologies themselves. It’s imperative that they do this to foster a culture where employees feel comfortable asking questions and feel capable of adapting to change. If people don’t understand the value of digital, they will resist it and perhaps even leave the organisation, leaving leaders with a lack of skills as a result. If they are included in the conversation and given the skills to navigate continual shifts, however, they become active participants in company success – giving greater engagement, enthusiasm and productivity in their roles to drive the results that the business really wanted when purchasing the technology.  

Naturally, this principle extends beyond employees to decision makers themselves. Governance-related challenges remain a key barrier according to the KPMG Forrester study, with 44% of public-sector respondents citing budget constraints as a major hurdle. Those responsible for making digital investments often lack the understanding and knowledge required to choose wisely, often rejecting valuable opportunities because they feel the solutions presented to them are beyond their grasp. This needs to be challenged, as does the 24% of decision makers highlighting an absence of a formal system to prioritise digital transformation activities within their organisations, alongside the fact that 23% lament a lack of structured change management environment. Effective transformation needs strong leaders, dedicated change management teams and a clear forward strategy that aligns investments with the organisation’s longer-term goals. Without this, budgets will be wasted, faith will be lost and even the most advanced transformation efforts will fail.  

People and business 

The UK digital transformation market is experiencing explosive growth at the moment, with even public-sector organisations like the NHS jumping on board with major overhaul projects. Valued at approximately £28.5 billion in 2022, experts estimate that the digital change market will reach £191 billion by 2030, reflecting a staggering 27.7% compound annual growth. Nevertheless, investment alone cannot guarantee success. The key difference between failure and progress is still people – and how well organisations align and integrate their chosen technologies with their teams. A study by EY and Saїd Business School found that organisations that place humans at the centre of their transformation efforts are 2.6 times more likely to succeed than businesses that do not, underscoring the importance of blending people and technology strategies for the success and sustainable growth of the business rather than prioritising digital upgrades alone. Neither people nor technologies can succeed in isolation.  

Practical steps for low-risk success 

Translating this into practical strategy, organisations must prioritise expert training and advisory services, equipping teams to adapt to rapid change rather than leaving success to chance. Enterprise Resource Planning (ERP) systems, including SAP, show just how tech can make jobs easier – provided that leaders remember that these systems can only deliver value when implemented as part of a clear strategy, supported by skilled teams.  

To truly put people at the heart of digital transformation, leaders must consolidate their strategy and vision, defining clear objectives that are communicated at all levels of the organisation. They must engage employees in initial decision making, too, encouraging feedback from those who will be using proposed solutions daily. With comprehensive training provided on top of this, the challenge of ensuring teams have the confidence and skills to embrace new tools soon dissipates – especially when management teams have learnt to confidently align digital initiatives with existing workflows themselves, to reduce potential disruptions. With new solutions emerging daily on the market, this must be incorporated as an ongoing process, with organisations encouraged to monitor progress with data and analytics to track adoption and performance. This enables them to identify any areas for improvement and swiftly take corrective action.  

People make things work 

Ultimately, organisations must stop focussing solely on the latest innovations and recognise that true digital transformation is driven by the individuals who adopt, implement and optimise these tools in their daily work.  

Human-centric strategies separate the weak from the strong, with the key to long-term success lying, not just in purchasing new digital solutions but creating a culture where people are actually empowered to use them, to the full potential of the organisation.