Managing Organisational Change in the Age of Digital Transformation

3 min read

The automotive supply chain has faced significant challenges as a result of the Covid-19 pandemic and the subsequent shortage of semiconductors. This has led to a growing demand for digital technology to enhance resilience in the sector. The shift towards technological adoption has brought about substantial organisational changes for carmakers and tier suppliers in the industry.

Logen Lytle, supply chain operations technology lead at Honda Development and Manufacturing, highlighted the extensive structural reorganisation that has occurred across the North American region. This has involved the establishment of a core nucleus, a unified team approach, and the development of standardised processes and operational responsibilities. Lytle emphasized the goal of achieving interoperability within the organisation, necessitating that associates evolve with these changes.

At American Axle & Manufacturing, Alex Murray, senior manager of global supply chain management in the Metal Forming division, emphasized the importance of aligning all parties affected by organisational changes. This involved creating a roadmap that all stakeholders could follow, ensuring successful input from everyone to avoid a siloed approach that could lead to frustration and confusion among employees.

Chandan Trehan, digital supply chains and logistics lead at Bosch North America, highlighted the need for a shared definition of organisational change that everyone could agree on. He also underscored the importance of maintaining constant communication, a clearly defined process, and roadmap to time the steps of the change process properly.

Embracing a mindset for change is crucial in adapting to new digital technologies. Instead of fixating on specific software tools, a more flexible mindset that focuses on finding better ways of doing things is needed. Trehan emphasized the importance of taking into account the different ideologies present within the organization when it comes to change management.

In order to ensure successful implementation of organisational change, it is crucial to have continuous feedback mechanisms and to listen to the input of employees. This involves creating an environment where employees feel heard and valued, rather than stifled and disregarded when expressing their views about the changes taking place.

Murray also echoed the significance of feedback from users and developers, as it is essential in gaining acceptance for change across an organization. Building trust through open conversations and feedback is key to fostering innovation and creating buy-in for innovative solutions.

In conclusion, managing organisational change in the era of digital transformation requires effective communication, alignment among all stakeholders, and a flexible mindset that embraces continuous feedback. By understanding the impact of these changes on employees and involving them in the process, organizations can successfully navigate the challenges brought about by technological adoption and drive meaningful transformation within their operations.