Beyond Tools: Elevating People to Drive Digital Transformation

NASA is synonymous with innovation, but its approach to problem-solving reveals a crucial lesson for any organization undergoing transformation. Instead of relying exclusively on internal expertise, NASA invites fresh ideas through open innovation, regularly hosting public challenges that tap into a global talent pool. This strategy allows the agency to expand its problem-solving potential far beyond its in-house capabilities.

In the rush to keep up with a rapidly changing digital landscape, businesses often prioritize technology over the most crucial factor for transformation success—people. While adopting cutting-edge tools is essential, lasting and meaningful change only happens when individuals are empowered to innovate, collaborate, and push boundaries. It’s the people who transform ideas into action, driving a culture of innovation that allows organizations to thrive in an ever-evolving marketplace.

Learning from NASA: The Power of Diverse Perspectives

By embracing open innovation, NASA has:

• Amplified its problem-solving capabilities through diverse, external insights
• Welcomed new perspectives that might otherwise be missed
• Created an inclusive culture of creative collaboration that spans both internal teams and external contributors

The lesson here is clear: digital transformation thrives when diverse voices and ideas are encouraged. Innovation isn’t limited to experts—it can come from anywhere. Cultivating an inclusive environment where everyone feels empowered to contribute can unlock transformative solutions and foster a mindset of continuous improvement.

Five Key Principles of Transformation, According to Jim Hemerling

Jim Hemerling, a senior partner at Boston Consulting Group, underscores the importance of people-centric change. His five principles for successful transformation remind us that empowering individuals is the real key to long-term success (DeBoer Fellowship, 2020).

1. Inspire through purpose
   Transformation needs to be driven by a clear and compelling purpose. When employees understand the “why” behind change, they are more likely to buy in and actively contribute. A purpose that resonates motivates teams and helps them stay aligned with organizational goals.
2. Go all in
   Half-hearted transformation efforts rarely succeed. Organizations need to commit fully, ensuring change touches every part of the business, from the top executives down to the frontline employees. Transformation is about embracing a shift at every level.
3. Enable people
   To drive change, employees need the right tools, resources, and support. This isn’t about imposing new technologies on the workforce but enabling individuals to thrive and take ownership of the transformation process. Empowered employees lead the charge.
4. Create a culture of continuous learning
   The best organizations foster environments where learning is constant. In today’s digital age, as new tools and technologies emerge, employees must be encouraged to keep evolving. Cultivating a culture of continuous learning ensures long-term innovation.
5. Lead with empathy and authenticity
   Leadership sets the tone for transformation. By leading with empathy, leaders show they understand the challenges employees face, creating a supportive environment where people feel valued. Transparent and authentic leadership builds trust, which is essential during periods of change.

By putting people at the center, organizations create a foundation for sustained success. Employees who feel engaged and empowered are more likely to drive innovation and bring lasting value to the business.

The Role of Communication in Digital Transformation

Technology doesn’t fail transformations—poor communication does. McKinsey & Company research shows that companies prioritizing communication during transformation are far more likely to succeed (McKinsey & Company, 2017). But effective communication goes beyond simply announcing changes; it involves a strategic approach that aligns everyone in the organization with the transformation vision.

Here are several strategies for ensuring communication drives transformation success:

• Develop a clear communication plan: Make sure every level of the organization, from executives to frontline workers, understands the goals and the reasons for the transformation. Communication needs to be comprehensive and consistent.
• Use multiple channels: A mix of face-to-face meetings, digital platforms, emails, and visual tools ensures the message gets through to diverse audiences. Relying on just one method can leave key groups out of the loop.
• Tailor the message: Communication isn’t one-size-fits-all. How leadership communicates with executives will differ from how they engage with operational teams. Tailoring the message to fit the audience ensures it resonates.
• Encourage two-way communication: People are more likely to embrace transformation if they feel heard. Providing channels for feedback, questions, and concerns helps build a sense of ownership and reduces resistance to change.
• Be transparent about obstacles: Every transformation will face hurdles. Acknowledging these challenges builds trust and shows employees that leadership is committed to overcoming them together.

When communication is prioritized, it not only mitigates resistance but also fosters a sense of shared ownership, increasing the likelihood of a successful transformation.

Leveraging Employees’ Digital Intelligence

One of the most overlooked assets in digital transformation is the existing digital knowledge employees bring with them. Outside of work, employees often use digital tools to solve everyday problems, manage projects, and collaborate with others. Leveraging this expertise can accelerate an organization’s transformation efforts.

Here are a few ways leaders can tap into employees’ existing digital intelligence:

• Encourage creative problem-solving: Empower employees to apply the same problem-solving skills they use in their personal lives to their professional tasks. Allow them to streamline processes and find new ways to integrate digital tools at work.
• Facilitate knowledge sharing: Create opportunities for employees to share their digital expertise with peers. A collaborative culture of learning and sharing fosters innovation and accelerates the adoption of new technologies.
• Reward innovation: Recognizing and rewarding employees for creative problem-solving and digital ingenuity keeps the momentum going. When people see that their ideas are valued, they are more likely to contribute to ongoing transformation efforts.

Organizations that effectively harness their workforce’s existing digital capabilities become more agile and better equipped to navigate the challenges of digital transformation.

Aligning Technology with Strategic Vision

Digital tools are vital to transformation, but they should always serve the organization’s broader strategic goals. Technology must not be viewed as the endgame; it is a vehicle that helps organizations achieve long-term growth and innovation.

Here’s how to ensure that technology aligns with strategic vision:

• Drive growth and innovation: Leaders should ask how new technologies enhance the organization’s capacity to innovate and distinguish itself in the marketplace. Technology should unlock opportunities, not just solve immediate operational issues.
• Consider employee dynamics: Transformation isn’t just about improving processes—leaders should also assess how new technologies impact team dynamics, collaboration, and morale. Ensuring that technology enhances, rather than disrupts, employee engagement is critical.
• Prepare for the future: Transformation shouldn’t just address current needs. It must be forward-thinking, positioning the organization to grow and thrive amid future market shifts. Technologies that align with long-term goals are investments in future success.

When technology is implemented with the workforce and the strategic vision in mind, organizations set themselves up for sustainable success, positioning themselves as leaders in a competitive landscape.

Elevating People as the True Drivers of Transformation

In a world where the pace of technological advancement is only accelerating, the most successful digital transformations will be those that go beyond tools. The key to sustained success lies in empowering individuals, fostering a culture of inclusivity and continuous learning, and aligning technology with a long-term strategic vision. By focusing on people, organizations create a fertile ground for innovation and transformation that lasts.

As seen in NASA’s open innovation model and Hemerling’s people-centric principles, it is the people, not the tools, that drive true transformation. When organizations place their employees at the heart of change, they unlock their full potential and lay the foundation for future growth and success.

DeBoer Fellowship

McKinsey & Company