{"id":16000,"date":"2023-10-02T14:36:41","date_gmt":"2023-10-02T14:36:41","guid":{"rendered":"https:\/\/mysourcefunding.com\/leadership\/people-problems-plague-digital-transformation-kpmg-survey-finds\/"},"modified":"2023-10-02T14:36:42","modified_gmt":"2023-10-02T14:36:42","slug":"people-problems-plague-digital-transformation-kpmg-survey-finds","status":"publish","type":"post","link":"https:\/\/mysourcefunding.com\/?p=16000","title":{"rendered":"People Problems Plague Digital Transformation, KPMG Survey Finds"},"content":{"rendered":"<div>\n<p>Despite massive investment and c-suite agenda prominence, digital transformation initiatives are sliding from trumpeted strategic imperative to the latest \u201cover-budget, underwhelming IT project\u201d status.<\/p>\n<p>KPMG\u2019s 2023 US Technology Survey revealed a majority of US businesses have not \u201cincreased performance or profitability from digital transformation investments\u201d over the past two years. That\u2019s hardly what boards envisioned, IT leaders pitched and CFOs can tolerate.<\/p>\n<p>When executives ranked the challenges \u201cmost likely to slow transformation,\u201d people problems topped the list. Respondents widely cited inadequate tech function leadership, poor cross-functional coordination, key talent gaps and stubborn work cultures. If companies can\u2019t swiftly solve those age-old riddles, little may be left for modern technology to transform.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Open Secrets<\/h2>\n<p>So what\u2019s really behind the tepid tech investment yield, workplace inertia and adrift digital strategy aspirations? KPMG\u2019s survey results pinpoint the drivers:<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<ul>\n<li>Executives remain entrenched in compliance mindsets. When asked about the \u201cmain triggers of digital transformation in your business,\u201d regulatory obligations or security concerns finished first. Further, 66% of respondents indicated that \u201ccomplex regulatory developments\u201d made the business \u201cless confident\u201d in investing in new technology. Those eye-opening results strongly suggest that many senior leaders still do not distinguish IT modernization from the business re-invention potential inherent in digital transformation.<\/li>\n<li>Executives widely lack sufficient proactive and practical understanding of tomorrow\u2019s tech. While 74% expressed high confidence about turning \u201crisk into opportunity to grow using their existing tech stack,\u201d 68% (down from an astounding 90% in 2022) still expressed a \u201clack of buy-in from senior leadership about emerging technology.\u201d<\/li>\n<li>Corporate IT spending has tightened. Inflation, increased interest rates and delayed ROIs hamper cash flow and squeeze budgets. Nearly two-thirds (65%) of US respondents warned \u201cin comparison to last year, they are expected to do more with less budget.\u201d With looming economic uncertainty, unbridled cyber threats and questionable tech investment yields, short-term IT expenditures likely face continued serious headwinds.<\/li>\n<li>Well ahead of external factors, underpinning digital transformation failure is basic lack of workplace trust and agility. Tech scares people. Notably, 57% of respondents felt that \u201cemployee resistance influences their investment decisions with new technologies.\u201d Nearly half (47%) said their tech function \u201clacks the governance and [cross-functional] coordination\u201d to effectively support new initiatives. Over 40% remained concerned about significant workplace talent and skills deficits.<\/li>\n<\/ul>\n<p>Clearly, far too many companies are severely misaligned with digital era expectations, dynamic risk and identifiable future-shaping opportunities.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Ride The Tiger<\/h2>\n<p>Tomorrow\u2019s success depends on <em>both<\/em> developing people and deploying technology. In concert with closing talent gaps, here are three ways immediate, meaningful actions senior leaders can take to stabilize and reenergize digital transformation:<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\"><strong>1. Connect tech investments to business strategy, customer experience, innovation and financial goals with great clarity. <\/strong><\/h3>\n<p>Seek best practice examples \u2013 from <em>any<\/em> industry. For instance, Walmart CEO Doug McMillion emphasized on the retail giant\u2019s FY 2024 Q2 earnings call, \u201cAs it relates to technology, our approach to new tools like generative AI is to focus on making shopping easier and more convenient for our customers and members and helping our associates enjoy more satisfying and productive work.\u201d<\/p>\n<p>He continued, \u201cWe&#8217;ll unlock value for shareholders through the combination of our physical automation work with our data and increasingly intelligent software. We have a sharp focus on ROI as we drive results and set our capital priorities. The financial framework we laid out\u2026is evident in our results from the last two quarters.\u201d<\/p>\n<p>Such clear communication raises executive accountability, shatters antiquated thinking and energizes workplace focus.<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">2. <strong>Reinforce that digital transformation success is urgent and non-negotiable. <\/strong><\/h3>\n<p>Atif Zaim, KPMG Advisory national managing principal and incoming US consulting practice leader, explained, \u201cCompanies that lack a sustainable digital transformation vision will eventually be exposed, either through poor customer experiences, lack of investor buy-in, low employee adoption, or wasted spending.\u201d<\/p>\n<p>Atif optimistically added, \u201cWe expect to see significant profitability and performance gains as many leading organizations enter into the later stages of digital transformations undertaken in recent years. It is critical that CEOs not take those gains for granted. To maintain a competitive advantage, they must maintain a clear transformation strategy especially now given the prominence of AI and the pace of technological advancements.\u201d Such perspective must be widely embraced and shared. Otherwise, the peril of performance lags, cash drain and eventual irrelevance soar.<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">3. <strong>Make compliance a feature, not a bug. <\/strong><\/h3>\n<p>Too<strong> <\/strong>often leadership agony over regulatory compliance minimums stifles innovation, tech investments and digital strategy. \u201cBusiness leaders are better off integrating regulatory compliance requirements into their digital strategies,\u201d Emily Frolick, KPMG Trusted Imperative leader, emphasized. \u201cOrganizations should aim to seamlessly embed new compliance requirements into their business processes, think how stakeholders will be impacted and ultimately build trust.\u201d<\/p>\n<p>Frolick noted that advanced analytics and AI \u201ccan be used to monitor transactions in real-time and identify items that need further examination, ensuring trust is not compromised.\u201d She concluded that \u201cthis approach will better position organizations to build trust with regulators and other stakeholders and implement solutions that proactively manage important business risks, giving more latitude for product innovation and deepening customer relationships.\u201d<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">People Power<\/h2>\n<p>Digital transformation is rapidly demarcating leaders and laggards. It\u2019s talent, management and culture that drive that existential difference. <em>Who\u2019s candid and courageous enough to manage what matters most?<\/em><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/noahbarsky\/2023\/10\/02\/people-problems-plague-digital-transformation\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite massive investment and c-suite agenda prominence, digital transformation initiatives are sliding from trumpeted strategic imperative to the latest \u201cover-budget, underwhelming IT project\u201d status. KPMG\u2019s 2023 US Technology Survey revealed a majority of US businesses have not \u201cincreased performance or profitability from digital transformation investments\u201d over the past two years. That\u2019s hardly what boards envisioned, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[76],"tags":[],"class_list":{"0":"post-16000","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-leadership"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>People Problems Plague Digital Transformation, KPMG Survey Finds | Brandiary<\/title>\n<meta name=\"description\" content=\"Despite massive investment and c-suite agenda prominence, digital transformation initiatives are sliding from trumpeted strategic imperative to the latest\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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