The role of culture in the success of digital transformation
Knowledge database Organisation Leadership & Culture Human Personnel recruitment & retention Workload & well-being Training & digital expertise D.1: Intelligent management of networked hospitals - a digital simulation gameDigital transformation is much more than the introduction of new technologies. Particularly in the healthcare sector, where processes are rigidly organised and hierarchical, successful digitalisation can only succeed if it is supported by a suitable corporate culture.
Problem description, research question and relevance
Digital transformation is no longer a topic for the future, but a key challenge for organisations in almost all sectors. Especially in the healthcare sector, which is highly regulated, complex and has grown historically, the introduction of new digital technologies represents a profound change.
While the focus is often on technological solutions, practice shows that cultural change within organisations is a decisive success factor for a successful digital transformation.
Ingrained working methods, hierarchical structures and a lack of digital skills hinder the implementation of new systems. Various professional groups with different expectations and ways of working are involved in the healthcare sector, which makes the acceptance and integration of digital processes even more difficult. This knowledge article addresses the question of how corporate culture can contribute to the successful implementation of digital transformation processes in the healthcare sector.
Digital transformation in the healthcare sector offers enormous potential to optimise processes, professionalise organisations and ultimately improve patient care. However, without the right cultural foundation, much of this potential will remain unutilised. It is therefore crucial not only to develop technical solutions, but also to actively shape the cultural framework for them.
Methods and procedures in the project
The findings for this knowledge article are based on expert interviews with Gabriela Kern (Director, Government & Healthcare KPMG Switzerland) and Christoph Marschner (Director, Digital Transformation KPMG Switzerland), who share insights into the interplay between corporate culture and digital transformation processes in the healthcare sector from their project experience.
- Gabriela Kern has been working for over ten years as a management consultant for organisations in the healthcare sector on various business and healthcare policy issues and specialises in change management.
- Christoph Marschner has more than 15 years of experience in IT and digitalisation consulting for clients from various sectors and has been focusing on clients in the Swiss healthcare sector for several years.
The interviews shed light on both strategic and practical perspectives on culture in the context of digital transformation.
Results and findings
Digital transformation is much more than just the introduction of new technologies. It is fundamentally changing the way employees think and work, how teams work together and how they interact with patients.
Digital tools enable new forms of collaboration and create more room for manoeuvre for employees and patients. At the same time, they change existing structures, dissolve system boundaries and can even shift power relations within organisations. Such far-reaching changes require comprehensive interdisciplinary collaboration between organisational units and always have an impact on corporate culture.
"Transformations, whether digital or in any other context, are always cultural changes" - Gabriela Kern
The right corporate culture is therefore crucial for a successful digital transformation. Organisations should ask themselves at an early stage how ready they are for change. One key aspect is the willingness of employees to change: Does a digital mindset already exist? Can different professional groups adapt flexibly to new tools and forms of collaboration? How big are the differences in the acceptance of digital technologies between individual departments? Such questions must be clarified in advance in order to take targeted (cultural) measures.
"Silo thinking in particular also prevents prioritisation in the context of the digital transformation of service providers. In order to prioritise in a targeted manner, there needs to be a certain acceptance of putting one's own goals second and supporting the goals of the organisation." - Christoph Marschner
A convincing "case for change" is a key success factor in this phase. The necessity of the transformation must be clearly communicated and understood by the employees so that they actively participate in the transformation and utilise the opportunity to help shape it. . Training and other targeted interventions help to reduce uncertainty and empower employees to use the new digital processes effectively.
"A cultural change must not be seen as an end in itself, but must be clearly aligned with and support the business goals of an organisation." - Gabriela Kern
Organisations that allow mistakes early on in the transformation process and see them as learning opportunities create an environment in which new ways of working can be successfully established. Interdisciplinary collaboration is also a decisive factor, as the transformation not only affects individual departments, but the entire system - from medical staff and administration to external partners and patients. This is particularly evident in the introduction of new core systems, such as hospital information systems, where close cooperation between the specialist departments and external partners is necessary to ensure a smooth implementation. Successful change requires the active involvement of various stakeholder groups and the rethinking of processes across departmental and organisational boundaries.
"The success of one of our projects to implement a new hospital information system depended to a large extent on promoting acceptance through the strong and early involvement of the specialist departments and transparent communication about progress and successes. This created acceptance and the transformation was ultimately driven forward and supported by the specialist departments." - Christoph Marschner
The role of management is central to this. A suitable "tone at the top", in the sense of a suitable narrative, is needed to ultimately bring about acceptance in the organisation through management. To achieve this, managers must act as role models, persuade and motivate employees. It is not enough to simply support the digital transformation strategically - it must be actively exemplified. However, creating a suitable culture is a continuous process that takes place in parallel with the technological transformation. An example from a project shows that digital processes, such as the electronic prescribing of medication, fundamentally change collaboration and workflows in a clinic. Where handwritten notes and personal interaction used to dominate, digital systems are now taking over key tasks. This requires an adaptation of working methods and automatically entails a cultural change.
"Ultimately, a digital transformation is only sustainable if it is permanently anchored in the corporate culture." - Gabriela Kern
Acceptance of new technologies and ways of working must therefore be promoted not only during implementation, but also in the long term. If an organisation manages to establish an innovation-friendly culture that supports continuous learning and adaptation, the digital transformation can be successful in the long term.
Recommendations for practice
The following recommendations for practical action can be derived from the KPMG expert's project experience:
- Create a convincing "case for change": The necessity of the transformation must be clearly communicated. Key questions such as "Why is the change necessary?", "What does the future look like?" and "What are the benefits for different professional groups?" should be answered at an early stage in order to promote acceptance and motivation.
- Promote dialogue: Organisations should create targeted dialogue formats to actively support the digital transformation. This creates an atmosphere of trust, which in turn can facilitate change.
- Establish managers as cultural leaders: Leaders must actively exemplify digital transformation by demonstrating openness, agility and a willingness to innovate. As this is not always a matter of course, they should be given targeted support and further development.
- Make culture measurable and develop it further in a targeted manner: A successful transformation requires a clear understanding of the existing corporate culture. Regular surveys, interviews and observations help to identify weaknesses and take targeted optimisation measures.
- Offer learning opportunities: Digital transformation can only succeed if employees have the necessary digital skills. Employees should be actively supported in familiarising themselves with new technologies and processes in order to reduce uncertainty and strengthen skills.
- Adapt management systems and structures: New processes and working methods must be supported by suitable organisational framework conditions. Incentive systems, hierarchies and responsibilities should be developed in such a way that they favour digital change and enable sustainable transformation.