By: Kristin Derwinski - Executive Coach & Consultant

For several years, the business world has been buzzing with the term “digital transformation.” In 2020, during the great remote work pivot triggered by the COVID-19 pandemic, many companies saw their transformations leap forward as employees were required to move many of their operations and functions entirely online. It felt like the digital transformation found us—that whether we wanted to be or not, we were all subject to the newly digitized world.

But digital transformation is much more than just better technology tools and a move to cloud apps. True digital transformation involves changes that ripple through an entire organization and impact the culture. If leaders don’t understand the full ramifications of digital transformation, their companies will fail to make lasting changes that propel growth.

Here are five misconceptions leaders have about digital transformation—and why they matter when looking at long-term growth:

1. DIGITAL TRANSFORMATION JUST MEANS ADOPTING TOOLS THAT IMPROVE PRODUCTIVITY

Certainly, adopting tools that improve productivity can be one aspect of digital transformation or one project within an overall initiative. But limiting the concept of digital transformation to productivity tools doesn’t allow for lasting change. Simply adopting productivity tools without emphasizing culture and engagement could communicate the wrong thing—that employees aren’t productive enough, perhaps, or that the company wants to replace certain functions with technology tools. Instead, combine your adoption of digital tools with efforts to engage employees, and create robust conversations about improving productivity both with and without digital tools.

2. DIGITAL TRANSFORMATION WON'T EFFECT CUSTOMERS

If your digital transformation doesn’t affect your customer experience, you’re doing it wrong. Even if your project isn’t directly focused on improving customer experience, it should still affect interactions with people outside the organization. Employees should be more responsive or happier in their interactions with others, and your digital initiatives should at least provide a foundation for improved customer experience.

3. DIGITAL TRANSFORMATION IS AS SIMPLE AS BUYING NEW SOFTWARE OR APPS

While implementing a new technology solution can improve employee or customer experience, there’s much more to digital transformation than new technology. Without training and strong communication about the purpose and intent behind the new tools, team members may resist adopting them, and it’s possible to end up with another piece of technology that no one uses.

4. DIGITAL TRANSFORMATION CAN BE DONE PIECEMEAL WITHOUT AN OVERALL STRATEGY

A successful digital transformation will be undertaken with forethought and focused on long-term goals. Many companies indeed had to quickly pivot to new digital tools in 2020, but emergencies are not a model for long-term strategy. Start by developing an overarching strategy and let the strategy guide the smaller initiatives you need to complete to achieve your goal.

5. WE DON'T NEED TO WORRY ABOUT COMPANY CULTURE; EVERYONE WILL ADAPT EVENTUALLY

This idea may be the biggest misconception about digital transformation. Your strategy must include conversations with employees and leaders across functions, roles, and levels to ensure success. While final decisions take place at the top, it’s essential to involve voices throughout the organization to assess pain points, obstacles, challenges, and the basic needs of everyone involved. By including those voices throughout your process and focusing on creating a digital culture, your initiatives will have a much more significant impact on the company’s overall success.

Pursuing digital transformation is an important step in propelling your organization forward, staying competitive in an increasingly digital marketplace, and positioning for long-term growth. But without attention to culture, employees, and customers, those initiatives may end up hurting more than helping.

To make your digital transformation a success, engage your employees in the conversation, and look for opportunities to get feedback from customers about what would improve their experiences. Involve the “analog” world in your process to successfully merge your digital initiatives with real-world users. A company that focuses as much on the people using the digital tools as they do on developing them will experience the transformation they set to achieve.