Digital transformation requires organisational culture change

This blog post is part of a 4-part series on the future of digital innovation inspired by the 4th Public Sector Innovation Conference* held on the 8th March 2022 in London. The conference looked at the core principles of rapid digital transformation and adoption in the public sector, including interoperability, platforms, data, and emerging technologies. These blog posts are based on the notes I took during the event. Follow the hyperlinks below to explore specific themes:

Introductory post: what's the future of digital innovation? (link here)

Theme 1: We need to take care of the future through responsible innovation. (link here)

Theme 2: We need to break down organisational silos and promote joined-up thinking (link here).

Theme 3: Digital transformation requires initiating and embedding organisational culture change (this post).

Theme 4: The COVID-19 pandemic has helped us to rethink what is possible for digital innovation (to be posted 31.05.2022).

Culture change alongside technology change

To be successful in the long-term, digital innovation requires a clear vision and mission. This can sometimes require initiating and embedding an organisational culture change, particularly in large organisations.

Organisational culture change is the process by which an organisation’s culture and environment is changed by altering the vision, mission, goals, processes, roles, and/or practices. In other words, describing the movement of an organisation from the known (current) state to the unknown (desired future) state. This can involve encouraging employees to adopt behaviours and mindsets which are consistent with the organisation’s (desired) values and goals. Culture change may be necessary to better align the behaviours of employees with current and future organisational objectives, such as more responsible innovation, joined-up thinking, and collaboration.

In a panel discussion on innovating with platforms, including Laura Gilbert (Director of Data Science, 10 Downing Street), Paul Morrison (Director of Planning and Transformation, DLUHC), and Satpal Biant (Head of Public Sector at SAP), breaking down silos and encouraging cross-collaboration was a clear theme.

As we explored in the previousblog post in this 4-part series, barriers to digital innovation can include organisational silos which create barriers for sharing skills, data, technology, and so forth. In the public sector, it is essential that government departments, agencies, and public bodies are not siloed and are brought together over common issues.

‘Culture change alongside technology change’ is essential for the future of digital innovation - Laura Gilbert (Director of Data Science, 10 Downing Street).

Any culture change requires action from the top-down (e.g., from managers) and bottom-up (e.g., from members of staff). When it’s possible to do so, stakeholders should also be involved in the setting of organisational priorities and strategy. To create a movement of change, we need to connect different areas of organisations and bring people together around a common goal. This requires shared understandings (e.g., of organisational goals and how to achieve them), a shared language (e.g., of technical or specialist terms), shared skills (e.g., both technical and non-technical skills), and so forth.

The panellists (Laura Gilbert, Satpal Biant, and Paul Morrison) reflected that there can sometimes be too much focus in the public sector on technology and not enough consideration for organisational business culture, the associated challenges and opportunities, and the impacts of this on digital innovation. It is possible to create organisational change over time, and we can use technology to facilitate this.

Promoting digital transformation

To be successful in the long-term, it is essential that strategies for digital innovation require a clear organisational vision and mission. Some of these concerns were echoed in the final panel of the conference, which included Thalia Baldwin (Director Geospatial Commission), Alexander Holt (founder of the CivTech Alliance, Scottish Government), and Priya Guilani (UK President of the Government Blockchain Association). The panellists raised the issue that there can be too much focus on digitisation as opposed to digital transformation – it’s important to understand what ‘transformation’ means, what the aims/goals are, and how to achieve them. For example, are processes just being automated for efficiency and profit, or does this influence long-term outcomes and changes?

Central to these debates is understanding the difference the terms ‘digitisation’, ‘digitalisation’ and ‘digital transformation’, which are often confused and used interchangeably. Contrary to popular belief, digital transformation is less about technology, and more about people. 

Organisations’ abilities to adapt to an increasingly digital future depends on investing in the development of relevant skills and expertise. Even the best digital innovation is irrelevant if we are not skilled enough to use it. In other words, digital transformation is a state of mind and a way of working, not just as a team, but at an organisational level through a holistic and joined-up approach (e.g., as part of an organisational culture change).

In the panel discussion, Priya Guilani explored some of these issues by reflecting on the tendency of some organisations to use technology to ‘digitise’ (rather than ‘transform’) services, and the importance of open data to achieve this. This requires the development of key skills and improving  digital literacy across the sector:  

‘I can develop any technology I want to, but it’s about whether or not you are all ready to embrace it… The hype may be over, but the technology is here to stay’ - Priya Guilani (UK President of the Government Blockchain Association). 

Issues with organisational cultures can create barriers to successful digital innovation and transformation. This can include organisational and sectoral silos, as well as a fear and aversion to taking risks. The future of digital innovation is not just about technological development. It requires long-term investment in people - ensuring staff have the right skills, resources, and confidence needed - alongside initiating and embedding an organisational culture change.


*While these posts are inspired by the discussions at this conference, they are my personal interpretation of key themes and are not necessarily reflective of the event as a whole. I have also supported the points made by referencing additional sources and added my own reflections.