The Core of Successful Transformation in Business
The importance of putting people at the center of digital transformation efforts.

By Suriel Arellano | Thought Leadership

Why do so many digital transformations fail? The answer lies not in the technology but in the people. Research shows that 70% of digital transformation initiatives fail due to resistance to change. In this article, we’ll explore why a people-first approach is essential and how organizations can achieve sustainable success by prioritizing their teams.

When we talk about digital transformation, the conversation often gravitates toward cutting-edge technologies, robust platforms, and automation. But there’s a critical piece that often gets overlooked: the people driving and impacted by these changes.

Executives like you know how critical transformation is for staying competitive, yet the numbers tell a sobering story. Research from McKinsey reveals that 70% of digital transformation efforts fail, and the culprit is rarely the technology itself. It’s resistance to change. People—your teams, stakeholders, and even customers—play the defining role in determining whether your transformation succeeds or stumbles.

This might feel familiar. Maybe you’ve seen the “perfect” solution derailed by pushback or an otherwise innovative idea lose momentum because of unclear communication. The truth is, every transformation, no matter how advanced the tools, starts and ends with people. Here’s why that matters more than ever.

Understanding Resistance to Change

Resistance to change isn’t necessarily a bad thing. It’s a natural human response to uncertainty. When employees feel their roles are at risk or don’t fully understand the value of a new initiative, they’ll instinctively push back. As leaders, it’s our job to anticipate this and address it head-on—not just with logic but with empathy.

Think of transformation like navigating a ship through uncharted waters. You can have the best ship (technology) and the most accurate map (strategy), but without a well-trained and confident crew (your people), the journey is doomed from the start.

The People-First Approach

A people-first approach means going beyond merely announcing a change. It’s about involving your teams in the process from the outset, creating a shared vision, and addressing the “what’s in it for me?” concerns. When people feel valued and heard, they’re more likely to become advocates for the transformation rather than roadblocks.

Here are three ways to ensure people remain at the core of your efforts:

Communicate Early and Often: Share the vision, the “why,” and the expected outcomes in clear, relatable terms. This isn’t a one-time announcement—it’s an ongoing dialogue.

Invest in Upskilling: Transformation often brings new tools and processes. Provide the necessary training and resources so employees feel equipped rather than overwhelmed.

Foster a Culture of Innovation: Encourage experimentation, celebrate small wins, and create an environment where feedback is welcomed and acted upon.

Lessons from Successful Transformations

Organizations that thrive during transformations don’t just roll out new tech; they roll up their sleeves and work alongside their people to ensure the transition is seamless. Leaders who champion change and model the behaviors they want to see create a ripple effect throughout their organizations.

One example from my experience was with a company struggling to implement an AI-powered customer service tool. The initial rollout faced massive pushback because employees feared the AI would replace their jobs. By pivoting to a people-first approach—engaging employees early, explaining how the AI would enhance their roles, and offering training—the company turned skeptics into supporters. The result? Improved efficiency and employee satisfaction.

The Executive’s Role in Transformation

As leaders, you set the tone for how change is perceived. Are you taking the time to understand and address the concerns of your teams? Are you investing in their growth as much as in the technology itself? Your ability to empathize and connect with your workforce will be the differentiator between success and failure.

Closing Thoughts

Digital transformation isn’t just a tech upgrade; it’s a people upgrade. By prioritizing the human side of change, you’re not just implementing new systems—you’re building a culture that embraces innovation and growth. And in today’s fast-paced world, that’s what separates thriving businesses from the ones left behind.

So, the next time you’re charting your transformation strategy, ask yourself this: Are your people at the center? Because if they’re not, no amount of cutting-edge technology will lead to lasting success.

Recommended for you:

Are you ready to put people at the center of your digital transformation?

Explore our AI Readiness Assessment, designed to help leaders evaluate their organization’s preparedness for AI and identify areas where a people-first approach can drive success.

Learn More and Schedule Your Assessment Today