One of the most common reasons why your company may fail to embrace changes is also the most perplexing: if you are a successful company and you face big changes in your environment, often you may fail to respond effectively. The problem is not an inability to take action but an inability to take appropriate action.

There can be many reasons for the problem — ranging from managerial stubbornness to sheer incompetence—but one of the most common is a condition that can be called active inertia, i.e. your organisation’s tendency to follow established patterns of behaviour—even in response to dramatic environmental shifts because leaders are stuck in the modes of thinking and working that brought success in the past.

38% of respondents in a survey conducted by MIT Sloan Management Review and Capgemini Consulting said that digital transformation was a permanent fixture on their CEO’s agenda, and 63% said the pace of technology change in their organization is too slow.

Many of today’s organizations were simply never designed to change proactively and deeply—they were built for discipline and efficiency with hierarchy and routines. As a result, there’s a mismatch between the pace of change in the external environment and the fastest possible pace of change at most organizations.  

In order to embrace digital transformation, you and your company must not only have a strategy related to the development of your products and services but also a strategy related to the development of your organizational culture.