European business leaders on
what’s next for digital transformation.
All businesses have been on a steep transformation curve throughout 2020, and for most, the journey isn't over yet. Early signs suggest the world of work has changed fundamentally and become more complicated, and the next few years will need to be carefully navigated.
The Smart Voices we interviewed revealed their priorities as they strive to build dynamic,
digital workforces that can ensure their organisations thrive going forward.
Tackling issues and seizing opportunities
Our ‘Smart Voices’ have delivered invaluable insight into the changing world of work. This, combined with Smartsheet research from this year, has built up a view not only of how businesses are responding to change – but crucially, what they should consider in the years to come.
Where are they from?
Click to see fields
of expertise
What are the Smart Voices?
The 2020 effect
Introduction
Looking back
Beyond the now
Top 3 tips
Looking
back.
Looking
back.
Transformation motivation
Dividers of change
There was also a clear delineation between the groups driving transformation, with those in tech or IT teams having a different set of priorities and concerns to business users.
The nature of transformation varied, including large scale infrastructure investment and end-user digital experience innovation. Meanwhile, the motivations behind change ranged from external industry shifts to financial pressures and people-based challenges.
Motives for digital transformation in 2019
“Transformation was more understood as a way to get more efficient and [make] cost savings by automation, and digitising previously analog processes.”
When we asked our Smart Voices about their past digital transformation efforts, they stated:
Businesses acknowledged the value of digital transformation as a competitive differentiator long before the global pandemic made it an urgent priority. In Smartsheet’s 2019 digital transformation report, 83% agreed that investing in technology change was essential to keeping up with the competition.
Despite this, less than half (49%) of those who had already begun a digital transformation project felt it had a significant impact on their business – and only 13% felt it had actually enabled them to keep up with their competitors in the market. Digital transformation was considered important, but many were struggling to make it count, perhaps indicating that priorities were misaligned.
The way things were:
looking back on digital transformation
Tech teams
Before 2020, digital transformation was a varied undertaking with many different goals, challenges, and outcomes. But when the COVID-19 pandemic struck, businesses around the world came to a halt – making mass WFH a matter of survival. The agenda for digital transformation was turned upside-down.
During lockdown, Smartsheet’s U.S. research found that 85% of businesses worked remotely at least some of the week during the pandemic, with over half (51%) doing so full time. In Europe, another survey found that 57% worked from home during lockdown, rising to 65% in Britain specifically – 47%
of whom had never done so before.
It’s no surprise, then, that businesses suddenly found themselves with a very different set of digital, business and even cultural transformation concerns. Siloed working, slow processes and internal fragmentation are by no means products of the pandemic, but lockdown certainly exacerbated these issues. Tech teams and businesses users had to work together to find solutions, breaking down barriers and learning on the go.
When everything changed: how
did 2020 affect digital transformation?
The 2020
effect.
The working from home imperative
WFH is by no means a new concept; recent U.K. research found a 27.7% increase in home working in the decade leading up to 2019. Despite this, WFH has nearly always been the exception, rather than the norm, and there’s never been a point in modern history where the vast majority of white collar workers operated from their kitchen tables.
Unsurprisingly, some businesses were more prepared than others. Through our interviews with European Smart Voices, we discovered two camps: those who were ahead of the digital transformation curve and thus found pivoting and working during COVID-19 easier (the Leaders); and those who had to move fast to update technology, get solutions in place, change attitudes, and even restructure their workforce (the Chasers).
One marketing Voice in the Leader group confirmed the negative impact on those who hadn’t already begun the cultural and digital transformation required to facilitate remote and hybrid working effectively.
Another IT Voice in the Leader camp brought home the crucial point that the value of transformation isn’t always a case of ‘effort in = immediate outcome’. This Leader’s organisation had invested in digital transformation as a means of preparing for potential disruption, which didn’t lead to immediate financial gain, but certainly served them well during the crisis.
Leaders vs. chasers
The Leaders
Those who were already well down the digital journey were better placed to thrive during the pandemic.
Leader insight
One marketing Voice in the Leader group confirmed the negative impact on those who hadn’t already begun the cultural and digital transformation required to facilitate remote and hybrid working effectively.
Another IT Voice in the Leader camp brought home the crucial point that the value of transformation isn’t always a case of ‘effort in = immediate outcome’. This Leader’s organisation had invested in digital transformation as a means of preparing for potential disruption, which didn’t lead to immediate financial gain, but certainly served them well during the crisis.
“We considered different applications, where our legacy applications failed to give the outcomes we really wanted... [Digital transformation] wasn't really needed from a money perspective... But then, the business case paid off in this situation, where we experienced so much disruption.”
Innovation Voice in engineering
Chaser reflections
Chasers worked hard to catch up and, in many instances, have succeeded. But there’s still a clear awareness that choices made at speed aren’t always the best foundation for an efficient digital future.
Business Voice in telecoms
“We weren’t digital at all, but we’ve been forced down a digital route. We should have had it more planned, because some of the knee-jerk decisions you make, while so brilliant, also cost you more because they
are not as clean as you’d like them to be.”
What does this mean for the coming years?
For Leaders and Chasers alike, looking beyond 2020 raises several important questions. What are the right strategies to embrace in the years to come? How can we facilitate the future of work effectively?
Who should drive transformation? And what sort of culture should businesses nurture to set themselves
up for success? These questions need to be answered now, or businesses risk investing in changes that won’t serve them in the long run.
Introduction.
Digital transformation has been a hot topic in business strategy for years. Whether you envisage a data-driven organisation, shifting applications to the cloud, or delivering innovative services, there are huge advantages for ambitious businesses.
But in 2020, digital transformation took on a new urgency. As governments shut down offices around the globe, working from home (WFH) was no longer just an option – it was business-critical. Suddenly businesses needed remote working, effective communication, and collaboration simply to survive. Digital strategies evolved over days or hours – there was no time to deliberate over the best, or most cost-effective routes.
2020 has been an unprecedented challenge for businesses great and small. And whatever shape work takes in the future, we’ll need new strategies, new tools, and new mindsets to succeed. So what will success look like? Will you thrive during the next disruptive event – or merely survive?
To find out, Smartsheet interviewed senior figures in marketing, operations, IT and strategy from some of Europe’s largest businesses. We asked them to share what they’ve learned, and to outline their views, guidance, and expectations for the years to come.
After the year that changed everything
Beyond the
now.
People, process and technology in harmony
Digital transformation is important; recent Smartsheet research found that over three-quarters (76%) of respondents agreed the pandemic revealed major gaps in their internal technology strategy. But as we build new ways of working, many of our Smart Voices reflected on the need to centre people in their planning, balanced with the right technology and processes. Successful change comes from harmonisation between these three areas, and this will be particularly relevant as time goes on. It’s all well and good for existing colleagues and clients, but successfully building new relationships with less contact is another game altogether.
The right technology to support this will be critical, as will repeatable, scalable processes that can be integrated seamlessly across the organisation. There’s also a growing demand for businesses to think long term about their people strategies and how employees will be allowed to work, raising questions about trust, changing expectations, and visibility. After all, 88% said having empowered, autonomous teams is critical to an organisation's future success. Clear processes and the right technology can help to set expectations and create the visibility that builds trust.
"The workplace is not just technology.
It’s people...
Innovation Voice in engineering
+
"To me, the workplace is not just technology. It's people. You need to ensure that people are able to keep their sanity when they work from home for such a long period [...] And they feel that even though they are physically not meeting their colleagues, they are able to work and collaborate together with them. So in the workplace, of course applications and technology are important, but collaboration is very important. If we don't enable that, working from a distance doesn't
really work."
Innovation Voice in engineering
"It’s unnatural to work this way… We miss having informal chats with others and just feeling their presence...
Tech Voice in media and technology
+
"It's unnatural for some of us to work this way, and the distance between people needs to be fixed. I tried to have informal parties or chats, so people get together and talk about everything. [But] we miss having informal chats with others and just feeling their presence. I think that we still need a way to fix this company-wide because if I have to work on a new project, and I never met the people in real life, it would be kind of strange and cold at the beginning."
Tech Voice in media and technology
"You need to see each other, not only virtually, but to really interact...
Transformation Voice in the automotive industry
+
"I still believe that face-to-face interaction is needed to get healthy and good relationships between employees and customers. So you need to see each other not only virtually, but to really interact and see each other to really get the look and feel of what the other person is thinking and the closeness, the close proximity also helps them to really strengthen relationships"
Transformation Voice in the automotive industry
"We’re focusing on outcomes, rather than activities. It’s done on the basis of trust...
Marketing Voice in food and drinks
+
"In the last [...] 10 years, there was a big change at work, [...] focusing on outcomes rather than activities. And therefore the general attitude is we don't care where you do your work provided the outcomes are delivered. [...] We have flexible working and we give people a flexi day every month that they can use. It used to be years ago, we clocked in and out and measured people's time, but that's not done [any more]. It's done on the basis of trust."
Marketing Voice in food and drinks
During recent research, four in five respondents agreed that agile, innovative employees played a big part in ensuring business continuity and success during the pandemic’s disruption. Accordingly, staying agile and open to new possibilities will be crucial. Many of our Smart Voices are currently in a phase of experimentation, as they attempt to build a workforce that can adapt to any future disruption. Within this, they see flexibility and openness to change as fundamental, whether that’s looking at working patterns, technology choices, or something else entirely.
The need for flexibility
It’s important to draw some distinction around the impact of recent digital transformation efforts. As we saw in section one, digital transformation has traditionally accelerated businesses towards a new, better way of working. Businesses certainly changed how they operated in 2020, and many worked incredibly hard to do so. But did this actually represent a move towards success? Or was it simply a case of fighting to facilitate “normal” in unfamiliar and challenging circumstances?
For many, the answer is the latter. Understandably, IT teams and business users alike have focused heavily on integrating technology like video conferencing into the business. With these capabilities mostly in place, however, it’s time to look forward.
The next big goal is improved collaboration and better work management, which – as many businesses have learnt the hard way – takes more than just a quick video chat.
The quest for collaboration
A marketing Voice in technology says:
“Because our business was on the journey anyway, COVID [didn’t have a significant] functional impact – it didn't drive our strategy in a different direction. It didn't speed up or slow down what we were doing because we knew we needed to get better at our digital implementation, and we needed to understand our consumers better… There was already an openness to it.”
The Chasers
Others were less prepared, and had to work hard to get the right tools and strategies in place for working in the
new world.
An IT Voice in logistics claimed that:
“Our biggest problem was how to make 9,000 employees work from home… 70% of our employees do not have laptops.”
The same IT Voice also reflected on:
"The stark realisation that, despite “massive spending” on IT, “operators are not even able to do the regular tasks from home. It just shows you the gap. It becomes black and white.”
IT Voice in energy
“We've learned a lot. We've had our experimentation period in
phase one. Phase two would be the point around, well, how do you get people at home and in the office working together around a table effectively together.”
79%
Felt less connected
to their team since they began WFH
Increasing
costs
79%
Industry or
regulation changes
73%
89%
Technology
advancements
68%
Struggled to stay informed and connected
51%
Voted improving workplace collaboration and productivity as the no.1 workplace priority
+
During the pandemic, Smartsheet Pulse research discovered that 79% of U.K. respondents said they felt less connected to their team since they began WFH, and 68% struggled to stay informed and connected. Businesses might have been quick to get WFH technology in place – but there’s a lot more work to do for organisations to truly collaborate effectively. It’s no wonder that improving the workplace collaboration and productivity experience was ranked as the number 1 (51%) workplace transformation priority – above things like investing in multiple cloud platforms, or gaining more data for decision making.
Conclusion.
There’s no denying how difficult a year 2020 has been for individuals and businesses alike.
But despite the huge challenges we’ve faced, many have adapted at speed and are now finding new ways to live and work.
It’s no surprise, then, that businesses suddenly found themselves with a very different set of digital, business and even cultural transformation concerns. Siloed working, slow processes and internal fragmentation are by no means products of the pandemic, but lockdown certainly exacerbated these issues. Tech teams and businesses users had to work together to find solutions, breaking down barriers and learning
on the go.
Here are our top three strategies to embrace as we look beyond the now and towards the future of work.
Focus on people, as well as process and technology
Technology has a huge role to play, but it’s people and relationships that make great things happen. Seek out tools that help you facilitate positive relationships, both internally and with customers.
Build flexibility and cultural change into your strategy
When planning the future of work, consider what culture and attitudes you’re building. What tools and strategies do your people need to work in an open, flexible and trusting way, no matter where they are?
Think big about collaboration post lockdown
With the technicalities of remote or hybrid communication smoothed out, turn focus to effective collaboration, whether that’s better work management or finding ways to provide more visibility.
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Along with these three top tips, there’s one final point to remember. As well as taking inspiration from our Smart Voices, make sure to take your own lockdown learnings forward, reflect on them, and consider where to focus to continue your growth and build a dynamic workforce. Navigating change is never easy, but with the right strategies for success, there are no barriers too high.
Is your team building strategies for success?
In the time of rapid change, companies need to execute efficiently, do more with less and innovate at lightening speed. How do you do that at scale? With a platform built to break down barriers, empower your people to work dynamically, and achieve more than you thought was possible.
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Business users
54%
United Kingdom
15%
Nordics
15%
France
16%
Germany
Despite this, less than half (49%) of those who had already begun a digital transformation project felt it had a significant impact on their business – and only 13% felt it had actually enabled them to keep up with their competitors in the market. Digital transformation was considered important, but many were struggling to make it count, perhaps indicating that priorities were misaligned.
IT
39%
Operations
15%
Business
15%
Transformation
8%
Marketing
23%
Transformation Voice in the automotive industry
“Before, digital and workplace transformation was to help a few who weren’t in headquarters, while now, it’s for the whole company.”
Laptop logistics
at scale
Businesses were forced to get tech capabilities up to scratch fast, from laptops and webcams to specialist tools crucial to their work.
Conference
choices
Zoom, Cisco, Skype, Hangouts: as WFH became the norm, businesses scrambled to find the platforms that worked best.
Digital
demands
Those who relied on paper processes and human interaction were forced to become digital first, fast.
Pushing productivity
Maintaining productivity in a new, challenging environment was a priority for all, particularly as economic crisis loomed.
Operations Voice in global banking
“I'm going to see investment into collaboration tools. Further investment into a desire to move to the cloud for obvious reasons, so that we can get rid of managing the heavy lifting or the intersection and further investment in AI and ML.”
Tech Voice in media and technology
“Now, I could say that we are experimenting more than deciding, because [the situation is] fresh and new, so it's more dynamic at the moment and I think that in the next few months we are going to [consolidate] everything.”
Improve ROI
Security
Infrastructure
User adoption
Save time
Save more time
Communicate
Collaborate
Marketing Voice in food and drinks
“I'm expecting [COVID] to accelerate flexibility, generally. Because… I think even in an organisation like ours, which is predominantly flexible, there will be roles that were perceived as having to be in the office, which will be unlocked. I think people who have been working one day a week will work two or three. Now we've got used to [WFH] and now we know it can be reasonably efficient, that will be accepted.”
Introduction
Looking back
The 2020 effect
Dynamic work
Top 3 tips
Where are they from?
Click arrow to see
geographies
“Before COVID, we were very top down in our digital transformation.”
Marketing Voice in retail
IT Voice in logistics
“[At] my previous company, [...] the culture is very much ‘you're in the office, you're at your desk. If you're not there, you're not working’. They were hit much harder by this, having to set up the systems and the infrastructure in order to be able to support that, as well as the cultural side of things.”
Marketing Voice in the leader group
A SMARTSHEET REPORT:
Average reading time: 15 mins
Tech teams
Who are they?
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geographies
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1. Smartsheet 2019 Research Report: Success vs. Achievement: Understanding the Effectiveness of Digital Transformation
2. TUC Work from Home Analysis: Homeworking up more than a quarter in last decade, TUC analysis shows
3. Empower Your Dynamic Workforce. This research is based on a survey of enterprise professionals conducted by 451 Research, part of S&P Global Market Intelligence, and commissioned by Smartsheet in May 2020. The survey sample was among 800 U.S. workers at enterprise companies with 1,500+ full time employees and three or more office locations. It was live from April 16 to May 1, 2020.
4. Workplace Insight: Brits are among the most fervent remote workers during the coronavirus crisis
5. Empowering Employees to Drive Innovation and Agility: A Harvard Business Review Analytic Services Pulse Survey: Report by Harvard Business Review Analytics Services in association with Smartsheet.
6. The Pulse on Productivity: This CARAVAN survey was conducted by ENGINE INSIGHTS among a sample of 1,004 U.S. adults ages 18+ who are currently employed, previously worked in an office setting but are now working from home due to COVID-19, and work for companies with 1,000+ employees. This survey was live on April 8-15, 2020.
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