=Paper=
{{Paper
|id=Vol-3016/paper22
|storemode=property
|title=Unmasking the drivers and Implementation of change
|pdfUrl=https://ceur-ws.org/Vol-3016/paper22.pdf
|volume=Vol-3016
|authors=Fatema Zaghloul,Peter Bednar
|dblpUrl=https://dblp.org/rec/conf/stpis/ZaghloulB21
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==Unmasking the drivers and Implementation of change==
https://ceur-ws.org/Vol-3016/paper22.pdf
Unmasking the Drivers and Implementation of Change
Fatema Zaghloul1, Peter Bednar2, 3
1
University of Southampton, Southampton Business School, UK
2
University of Portsmouth, School of Computing, UK
3
Lund University, Department of Informatics, SE
Abstract
This paper investigates the drivers for, and implementation of, digital transformation projects
and organizational change initiatives in 20 companies in the UK. The study follows on
previous research based on the Socio-Technical Toolbox [STT], specifically focusing on the
activity analysis and employees’ experience and participation in the change initiative or
digital transformation project.
Keywords 1
Change, digital transformation, Covid-19, socio-technical analysis
1. Introduction
Many organizations recognize the necessity to transform their operations and work practices in
order to stay competitive and relevant, and keep up with the changes in their industry. In recent years,
the notion of digital transformation has been extensively discussed and investigated by scholars and
business leaders in a variety of different contexts [1]. The process involves the transformation of key
business operations due to the implementation of Information Technology/ Information Systems
(IT/IS) and impacts original processes and products, in addition to management concepts and
organizational structures [2].
At an organizational level, the fundamental differentiator between organizational change initiatives
involving the implementation of IT/IS, and digital transformation lies in how the technology,
organizational identity, and value proposition of the company interrelates. For instance, digital
transformation involves the re-definition of value propositions and hence results in a new
organizational identity, whereas organizational change involves the use of technology to support an
existing value proposition and implying that an existing organizational identity is reinforced [3].
This short paper sheds light onto the drivers for, and implementation of, digital transformation
projects and organizational change initiatives in 20 companies in the UK. It also focuses on the
facilitators and illuminates any challenges experienced.
2. Background
Digital technologies and innovation have become the basis for creating new properties, values, and
products and, therefore, they lay the foundations for gaining competitive advantage or sustaining
‘leading edge’ competitiveness in several markets. There is an increasing amount of literature on
digital transformation and IT organizational change initiatives, attempting to augment our
understanding of the topic and its implications.
This study follows on previous research based on the Socio-Technical Toolbox [STT] [4]. The
Toolbox is a collection of tools, techniques and pragmatic methods which can be used to support
organizational change in practice in IS analysis and design, such as system sustainability, socio-
7th International Workshop on Socio-Technical Perspective in IS development (STPIS 2021) 11-12 October 2021, Trento, Italy
EMAIL: Fatema.Zaghloul@soton.ac.uk (Fatema Zaghloul); Peter.Bednar@port.ac.uk (Peter Bednar)
©️ 2021 Copyright for this paper by its authors.
Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR Workshop Proceedings (CEUR-WS.org)
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technical analysis, activity analysis (based on activity theory), and Holistic Multi-Criteria Benefit
Analysis. The main focus of STT is the work-system which is at the core of a desired organizational
change. STT is not a methodology; it is a pragmatically grounded collection of socio-technical12 tools.
STT has been used for two decades, equally successfully in public as well as private sector
organizations, including micro businesses, SME’s, and multinationals.
3. Method
Participants
Participants were chosen using a purposive sampling process based on their role and
knowledgeability (i.e. experience and competence) for the study topic. They were all fully employed,
were not contract workers or zero hour contract employees, and had to have work experience over 3
years in the company.
These criteria are related to the four social contracts as described by Mumford [5, 6, 7, 8].
Motivation is related to the shared interest and desire to collaborate and solve problems outside of
explicit instructions. Essentially, if an individual is not an ‘internal’ member of the community, or
considered as an ‘insider’, then they are an ‘outsider’, which is detrimental for the motivation of
“going out of their way” to solve problems. Furthermore, it is recognised that it takes some time to
develop the required knowledge base and, therefore, a minimum of 3 years experience in the same
company was set. If the social contracts are not well supported or fulfilled, this by definition makes
the situation and relationship between worker and company sub optimal; and so does not support
organizational excellence [4].
Examples of scope companies varied from businesses with less than 5 employees to multinational
banks with many thousands of employees. The majority of the companies were British, with a very
small proportion being from outside the UK. There were a mixture of public (e.g. School) and private
organisations. We note that we are not interested in the type or size of the organization as our main
focus is on understanding the change from an employee perspective.
Approach
The study involved several trainee analysts interviewing one employee each from a selected
company (based on available social networks) over a 12 week period. In total, 41 organizations (41
employees) were approached and interviewed. However, this paper focuses on 20 organizations and,
therefore, 20 different employees. This is because some employees did not provide in-depth insights
into any change that has occurred/ not occurred, which may suggest that they did not prioritise this
research and/or were busy with their job role/ other responsibilities. Each interview lasted
approximately one hour and was held on a weekly basis (i.e. the same employee was interviewed by
the same trainee analyst every week, over a period of 12 weeks).
Although the data were collected by subjects different from those who undertook the analysis, this
did not affect the ‘immersion’ aspect in this qualitative study as both groups worked closely together
on a weekly basis to ensure the ‘correct’ message from the participant was conveyed.
Data Analysis
Based on the theoretical framework used (i.e. activity theory), a set of initial codes were applied to
the data. We also created additional codes, derived from open coding, that added to an understanding
of digital transformation and organizational change initiatives. Finally, ‘axial’ coding was applied to
organise and categorise codes into interpretive concepts depending on the relationship or connection
between them. This was an iterative process, where codes were rearranged and redefined throughout.
12
The term ‘socio-technical’ refers to the interrelatedness of the ‘social’ and ‘technical’ aspects of an organization or social structure. The
socio-technical approach is about harnessing the people aspects and technical aspects of organizational structure and processes to achieve
joint optimization, with a focused emphasis on achieving excellence in both the technical performance and the quality in people’s work
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4. Findings
This study is based on the activity analysis aspect of the STT, focusing on the employees’
experience and participation in the change initiative or digital transformation project.
Main Findings
The responses highlight two major themes underlying digital transformation and organizational
change initiatives, including (a) the external environment (e.g. Covid-19), and (b) attempting to
enhance efficiency and effectiveness. Table 1 provides a summary of the themes identified, sub-
themes, and example quotes.
Table 1
Themes, sub-themes, and examples.
Theme Sub-Theme Examples
External Covid-19 – minor “The new changes have been things such as upgraded
environment impact on work cleaning measures due to Covid, clean tills and work
driver processes surfaces 3 times every hour” (Company 1)
“New Covid regulations mean that masks must be worn
in the staff room and COVID tests must be performed
weekly on a Sunday and a Wednesday. A one way
system has been introduced to staff and visitors so that
social distancing is implemented as well as washing
hands and keeping clean.” (Company 2)
“Due to the pandemic, all workers are required to meet
the Government standards and are urged to wear face
masks and gloves when handling food, only access to
drive-thru to reduce contact, and enforced contactless
payments than cash.” (Company 3)
Covid-19 – major “During the pandemic employees have been told to
impact on work work from home. They do not have a work intranet as
processes such, however they are utilising systems such as
OneDrive to work on price lists, templates for quotes
and receipts. All the liaising has to be done through
emails.” (Company 4)
“Because of the requirements of the covid-19 prevention
and control policy, more online office has been
adopted.” (Company 5)
“Social distancing measures, separating participants,
wearing masks, new roles introduced, restructuring of
management” (Company 6)
IT/IS Efficiency and “Integration of clients’ previous company into a larger
implementation Effectiveness group. This involved migrating IT and human systems
(regardless of along with changes to clients job activity.” (Company 7)
Covid-19)
“Implementation of Microsoft Teams to provide better
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communication and integration for employees to
connect and collaborate” (Company 8)
“New method of "cashing up" tills using updates till
software to improve efficiency as old process had some
inefficiencies. Also, cash is now banked once per week,
instead of once per day. Recently started accepting new
payment method (Klarna) which involves authorizing
using the till software and scanning a QR code.”
(Company 9)
“A new housing management system was implemented,
as the previous system was old and wasn’t meeting the
organizations’ needs. The new system provides
transparency across the organization and helps manage
services more effectively.” (Company 10)
With respect to the factors facilitating the transformation and change process, all participants
mentioned:
● Leadership
● Communication
● Structure of the organization
● Shared vision and goal
● Trust
● Company rules and procedures
However, only one participant (i.e. one company) mentioned ‘past experience’ in change projects
facilitating the change initiative discussed.
5. Discussion
Drivers
Drivers refer to the goals and attributes that influence and initiate digital transformation and
organizational change [9]. They can be internal or external triggers (e.g. arise from innovation ideas
within the organization itself or from trends in the organizational environment). The three main
drivers of digital transformation discussed in the literature are digital technology trends, digital
competition, and digital consumer behavior [10] (i.e. technology driven digital transformation,
organizational development driven digital transformation, and consumer driven digital
transformation). Recently, however, digital transformation has been prompted by the external
environment. The Covid-19 pandemic forced businesses to innovate and change their traditional ways
of working and practices. Workplace offices have become less important, while work from home
initiatives have become mandatory. Some businesses observed complete disruption resulting in the
subsequent ‘pause’ of their activities [11, 12].
Our findings demonstrate that there are two different changes related to Covid-19; (a) minor
impact on work processes (e.g. additional cleaning activities, wearing facemasks, etc.) and (b) major
impact on work processes (e.g. the implementation of technology not only as a replacement for face-
to-face contact, but involving major organizational change). Businesses also underwent change in
order to achieve effectiveness and efficiency, regardless of Covid-19. In these cases, the change was
mostly digital, involving the implementation of technology/ IS, and the change of work practices
accordingly. Our findings support a recent study by Wessel et al. [3] who indicate that the (a)
environmental and (b) organizational context drive IT transformation or IT enabled organizational
change. It is important to note that it is the organizational ‘goal’ that ultimately drives the journey the
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company will be embarking on. For example, it is the goal of becoming more efficient and effective
that pushed Company 9 and 10 to implement technology that could enforce such ambitions.
Facilitators/ Success Factors
Success factors refer to the necessary organizational elements for achieving organizational change
and digital transformation [9]. Table 2 highlights a number of success factors cited in the literature,
along with the contract [5, 6] and example articles.
Table 2
Success Factors
Success Factor Contact Example Articles
[5,6]
Leverage external and Knowledge Piccinini et al. [13]
internal knowledge
A supportive organizational Vales Hartl & Hess [14]
culture
Develop a business strategy Efficiency Schmidt et al [15], Leischnig et al. [16]
(digital/ change)
Well-managed Task Structure Berghaus & Back [17]
transformation activities
Engage managers and Psychological Horlacher et al. [18]
employees Peter & Welch [19]
Research shows that communication is vital during digital transformation and organizational
change projects, not only as an informative function but also as a means to create a ‘community’ [20].
This was particularly evident in this study, where communication has “improved between colleagues”
(Company 8) during the process and as an outcome. Similarly, the importance of leadership, trust,
having a shared vision/ goal, and organizational structure have been cited previously in the literature.
All these factors relate closely to the values contract proposed in [6]. This contract relates to the
ethical principles, such as trust, mutual loyalty and shared objectives, which are expected by the
employee as well as the employer.
Challenges
Studies, in different contexts, show that the process of organizational change and digital
transformation is not smooth and without challenges [5,21,22]. For example, studies show that
organizational change initiatives are bound to face resistance at different organizational levels (i.e.
individual, group, organizational/ managerial). During Covid-19, companies worldwide have
experienced a range of challenges such as financial pressures, IT-related issues, product development
difficulties, time workload, the availability of resources, and productivity development due to social
distancing or working from home [12] in order to ensure business continuity. Similarly, on an
individual level, challenges were identified in terms of home residences becoming a hybrid place
where office work and domestic tasks are shared and the impact this has on well-being and work-life
balance [23]. Consequently, a possible challenge includes individuals not ‘working’ during normal
office hours. Interestingly, in this study, no major challenges or tensions were mentioned by all
participants. Rather than assuming that this could indicate change and digital transformation
excellence, it may allude to participants not being able to freely discuss or report any difficulties due
to the culture of the organization and the potential impact of the pandemic on their job status [24].
The findings also suggest that there is a limited level of empowerment among employees in
different companies. Change is imposed on a top-down basis, with no evidence of allowing
employees to contribute to the decision-making process or be given a certain level of responsibility. It
can be argued that if employees do not necessarily care about their job and they are largely motivated
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by their salary, then there is no foundation for excellence, which potentially is a competitive
disadvantage [6, 25]. In addition, this can easily become a toxic working environment where the
company is ‘drowning’. The psychological contract proposes that an employee wishes for
psychological rewards such as opportunities for advancement, recognition, responsibility, and ‘a sense
of achievement’, while an employer needs to have a motivated, enthusiastic, and loyal labour force
[6].
The findings suggest that there is opportunity and scope for companies to proactively find
solutions for the identified weaknesses in their organizational work systems. It can be argued that
when a company is under high and intense competitive pressure it is necessary to exploit any
competitive advantage that the company may have. This includes the undervalued but critical
contextual expertise inherent in its own workforce. This is supported by other scholars [e.g. 26, 9, 6]
and a study conducted by McKinsey [27] where companies that increased performance during Covid-
19 invested more time in empowering employees to make decisions, adopted new collaboration
technologies to foster relationships, and spent more time on recognition and coaching. Our findings
show that the human capital of an organization plays a critical role in the outcome and process of
change initiatives, which is consistent with [12]. We argue that change initiatives need to go beyond
the ‘technology’, by addressing ‘soft’ organizational issues such as philosophies, employee
empowerment, visions, values, and policies.
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