I’m going to say something that might be controversial in tech circles: the technology is the least important part of digital transformation.

Not unimportant. Just least important. Because I’ve seen brilliant technology implementations fail completely, and mediocre technology implementations succeed spectacularly. The difference is almost always change management.

The Success Rate Problem

According to McKinsey, 70% of digital transformation initiatives fail to achieve their goals. That number hasn’t improved much in twenty years, despite dramatic improvements in the underlying technology.

Why? Because we keep treating transformation as a technology problem when it’s actually a human problem.

What Change Management Actually Means

Change management has become a buzzword that’s lost its meaning. Let me be specific about what it involves:

Understanding: People comprehend why the change is happening and what it means for them personally.

Capability: People have the skills and knowledge to work in the new way.

Motivation: People want to change their behaviour, or at least accept that they need to.

Reinforcement: Systems, processes, and incentives support the new behaviours.

All four must be present. Miss one and the change doesn’t stick.

The Case Study Nobody Talks About

A few years ago, I worked with a retail company implementing a new inventory management system. The technology was solid – modern, cloud-based, well-designed. Implementation was technically successful.

Eighteen months later, 40% of store managers were still using the old spreadsheets alongside the new system. They’d enter data into the official system to satisfy corporate, then run their actual operations off their familiar Excel files.

The technology worked perfectly. The transformation failed completely.

What went wrong? No one had explained to store managers why the new system was better for them (not just headquarters). Training covered how to use the system, not how to think differently about inventory. The old spreadsheets weren’t taken away, creating a path of least resistance back to familiar habits.

The Change Management Framework That Works

Over the years, I’ve settled on a five-phase approach:

Phase 1: Build the Case (Weeks 1-4)

Before announcing anything, you need:

• A clear, honest explanation of why this change is happening
• Specific benefits for different stakeholder groups (not just company benefits)
• Acknowledgement of the downsides and disruption
• Evidence that leadership is committed

This case needs to answer the question every employee asks: “What does this mean for me?” If you can’t answer that specifically, you’re not ready to communicate.

Phase 2: Create the Coalition (Weeks 4-8)

You need allies at every level. Not just executive sponsors, but:

• Mid-level managers who will translate strategy into daily operations
• Influential individual contributors who others watch and follow
• Known sceptics whose buy-in signals legitimacy

These people need to be genuinely convinced, not just assigned to participate. Forced advocates are worse than useless – people can spot inauthenticity instantly.

Phase 3: Enable the Change (Weeks 8-16)

This is where most organisations underinvest. Enabling means:

• Training that goes beyond button-clicking to new ways of working
• Updated processes that reflect the new reality
• Time for people to learn and make mistakes
• Support resources for when things go wrong

The biggest mistake I see: one-time training. Learning a new system takes months of practice, not a half-day workshop. Build ongoing support and reinforcement.

Phase 4: Launch and Support (Weeks 16-20)

Go-live is when change management matters most. Plan for:

• Hypercare support with quick response times
• Daily check-ins with key user groups
• Rapid identification and resolution of issues
• Communication that acknowledges teething problems honestly

The temptation is to declare victory and move on. Resist it. The first few weeks establish whether the new way becomes normal or becomes optional.

Phase 5: Reinforce and Sustain (Ongoing)

After initial adoption, you need:

• Metrics that track adoption, not just availability
• Recognition for people who embrace the change
• Swift intervention when people revert to old ways
• Continuous improvement based on user feedback

This phase has no end date. It becomes how you operate.

The Hard Truths

Change takes longer than you want. Allow 12-18 months for significant transformation, not 3-6 months.

Some people won’t make it. In any major change, some employees will leave – by their choice or yours. Plan for this.

Communication is never enough. You will think you’ve overcommunicated. You haven’t. Then communicate more.

Resistance isn’t bad. Resistance tells you what’s not working. Embrace it as feedback, don’t suppress it.

Executives underestimate their visibility. If leadership isn’t visibly using the new system, nobody else will either.

The ROI of Doing It Right

Change management isn’t cheap. A proper program might add 20-30% to your transformation budget. Here’s why it’s worth it:

• Reduced adoption time (months vs. years)
• Lower training and support costs
• Less productivity loss during transition
• Higher ultimate adoption rates
• Better ROI on your technology investment

One client I worked with ran identical technology implementations in two divisions – one with full change management, one without. The division with change management achieved target adoption in 4 months. The other division never reached full adoption and eventually wrote off the investment.

The change management investment paid back 10x in avoided failure.

What This Means for Leaders

If you’re planning a digital transformation:

1. Budget for change management upfront. 15-20% of total project budget is a reasonable starting point.

2. Start change management early. Before technology selection, not after go-live.

3. Own it personally. Transformation without visible executive leadership fails.

4. Measure adoption, not just deployment. A system nobody uses is a failed project regardless of technical success.

5. Be patient. Sustained change takes years, not quarters.

Final Thought

The organisations that succeed at digital transformation aren’t the ones with the best technology. They’re the ones that understand transformation is fundamentally about people – their concerns, their capabilities, and their willingness to change.

Technology is just a tool. Change management is how that tool gets used.

Do the unsexy work. It’s where the real value is.