PodChats for FutureCIO: Overcoming digital transformation fatigue

KPMG asserts that with all the focus around modernisation and/or transformation over the last few years, there is growing recognition that perhaps employees are feeling exhausted. They’re facing one modernising initiative after another—or multiple initiatives simultaneously—often with competing timelines and priorities.

This is known as digital transformation fatigue, and it’s a growing trend as companies grapple to keep pace with constant change.

Peter Man, Red Hat’s general manager for Hong Kong, Taiwan and Macau, notes that over the past five years, transformation has become a popular topic, and many IT vendors have overused this term, leading to confusion among the public.

He believes that CIOs and IT leaders use it to make their initiatives more appealing and gain resources. He adds that digital transformation is usually associated with leadership, change, future, and profit.

“Conversely, terms like "business as usual" or "keeping the lights on" in IT are easily linked to cost centre and legacy. This is why many people overuse that term, resulting in fatigue.”

Peter Man

Warning signs of fatigue

IDC cautions that this fatigue can manifest as resistance to change, decreased engagement, and burnout among employees, leading to diminished productivity and innovation. It can also result in scepticism about the value of further digital initiatives, making it challenging for leaders to drive new projects forward.

Man says if initial successes are not observed in transformation processes, concerns arise. “In recent years, people have become increasingly worried about this,” he adds.

“In internal digital transformation projects, people are reluctant to embrace changes and new approaches if they can’t see tangible benefits and increased productivity,” he continues. “Similarly, if external transformation projects fail to demonstrate evident impacts on revenue and customer satisfaction, doubts emerge.”

He posits that some CEOs and CFOs have become more conservative regarding transformation projects, especially when there is a lack of clear ROI projections.

Causes of DX fatigue

“When you get lost in the complexities of all the discrete things you’re doing...it's amazing how you can lose sight of why we are doing all of this,” notes Mary Mesaglio, distinguished VP analyst at Gartner. “People are feeling fatigued because there is too much going on that they don’t understand.”

Asked to identify common causes of fatigue among organisations he engages with, Man comments that some customers have not yet defined their long-term visions for digital transformation.

“They have projects labelled as transformation projects, yet some of them become siloed due to small impact on the business,” he continues. “Moreover, there are wrong expectations from IT and business users on the ROI of digital transformation.”

“We have observed some customers are scaling back on some initiatives, as they worry that they may not deliver expected returns or outcomes. It is important to understand that transformation doesn't happen overnight with only a few projects.”

Peter Man

How to spot fatigue early

An AIIM report estimates that over 65% of organisations have a “Some companies scaled back the innovation teams, giving employees the impression that it is not a priority,” said Man. “Also, innovation teams have experienced high attrition rates, with CDOs and heads of innovation staying in their roles for an average of 18 to 24 months.

“Furthermore, innovation teams often find themselves responsible for IT operations after project completion, leading to role and scope confusion. They are eager to explore new ideas and tap into open-source innovations. If they feel their company does not provide budgets or test their ideas, they will move on,” said Man.

Strategies for preventing fatigue

Manuel Geitz, a principal analyst at Forrester suggests aligning effort and value to prevent fatigue. “Change can’t be a distraction from routines; change has to become the routine. To achieve that, employees need to see the value of change and need to be rewarded accordingly to prevent fatigue,” he explained.

For his part, Man suggests first focusing on small wins. “Celebrate with the teams to help them understand the impact they have on the business. Second, clearly define roles and responsibilities within the team, allowing them to focus on their area of expertise. For those who innovate for the company, provide them with freedom to try new things,” he continues.

Finally, he recommends avoiding being overly aggressive. “Instead launch new initiatives in a meaningful way and timely manner. Orchestrate the pace of transformation internally and externally, while experimenting with things along the way,” he recommended.

Employee’s role in mitigating fatigue

Just as leaders are expected to champion initiatives like digital transformation, employees are expected to help realise the vision of each initiative. But merely following guidelines and directions is no longer the only criterion for success.

Having a culture that facilitates open discussion between employees across the organisation is important for the long-term sustainability of an initiative – digital or otherwise. In a Capgemini study on hurdles to digital transformation, culture is ranked as the most important barrier to over.

Addressing digital transformation fatigue

Much as leaders are needed to champion digital transformation, they have as much role to play in ensuring its sustainability and that includes mitigating any risk including that of staff fatigue.

As a first start, Man suggests setting the right expectation for the longer term. A second, he continued, is to consider restructuring the organisational chart to separate the roles of the CIO and the head of innovation. This can help prevent the burden of business as usual and keep the lights on mindset.

“Third, recognise that implementing ideas takes time and ensure that transformation efforts align with business plans and needs. It is crucial to measure results and monitor ROI. Digital transformation is a culture, not a project to complete,” he continued.

Man says the company and its leaders should aim to establish an open culture where people can communicate without hierarchy. “Some of the C-level executives have already taken the initiative by completely transforming the organisational structure,” he opened.

“Innovation is no longer just within the IT team. They want people to be able to share their ideas and fatigue with senior leaders, ensuring the plans they define are progressing healthily. Transparency and effective communication are key.”

Peter Man

Going forward, Man believes that the time frame for getting digital channels ready should be mature. “Some customers have a strong desire to migrate their legacy applications to run on open-source platforms,” he added.

“The next focus is on AI which drives productivity, revenue and profitability. It is the focus of digital transformation 2.0 in the next 5 to 10 years,” he went on. “I anticipate winners, followers and some losers emerging when AI models come into play. When digital transformation becomes a culture, it will keep renewing by itself.”

Click on the PodChat player as RedHat’s Man shares his perspective and guidance on overcoming digital transformation fatigue.

1. Why are we seeing digital transformation (DX) fatigue?
2. Can you cite some common signs or symptoms of digital fatigue that you observe in the markets?
3. Looking at your experience dealing with customers in the market, what would you say are the most common causes of digital transformation fatigue?
4. Could you share with us some proven metrics for identifying and measuring digital transformation fatigue, particularly as it relates to employee morale and productivity?
5. What are the strategies that would help prevent or minimise digital transformation fatigue in the workplace?
6. What role does leadership play in addressing digital transformation fatigue?
7. How can employees approach their leaders when they experience digital transformation fatigue?
8. Into 2024, we anticipate a continued acceleration of digital transformation projects. What steps do you recommend leaders implement to counter the development or further development of digital transformation fatigue?