Over the last decade, digital transformation has become a near-ubiquitous activity. Organisations in every market and vertical seek to apply technology to increase productivity. They also aim to eliminate pain points and strengthen their bottom line. While some organisations have achieved transformative results, others have not been so fortunate.
In 2022, McKinsey & Co found the gap between the expectations and realised benefits was noticeably wider than suspected. Fewer than a quarter of all companies that underwent digital transformation achieved more than 75% of the revenue gains they anticipated. Meanwhile, only 17% achieved more than three-quarters of the cost savings they’d hoped for.
The numbers don’t lie, but the truth is harsh – especially the disquieting statistic, also from McKinsey, that 70% of digital transformations fail. While none of this is breaking news, it’s a challenge with which digital transformation leaders continue to grapple. Especially as the potential benefits of digital transformation become increasingly important.
“I think it’s crucial to make sure that we aren’t spending money on IT transformations for the sake of IT transformations” — Geert Halsberghe, Head of ITD for Benelux, Adecco Group
Geert Halsberghe, Head of ITD for Benelux at global recruitment multinational Adecco Group, is no stranger to digital transformation. And he is well aware of the pitfalls. Many projects like this fail when driven by implementing technology assuming it will create benefits and solve problems.
IT as a business enabler
Without a clear idea of the problem that the technology is meant to solve Halsberghe argues that these projects will never hit their targets. “You need to focus on what’s truly needed from a business perspective. It’s not about finding a problem to match a solution we already have. Like saying, ‘Well, we have this great solution, so we must have this problem.’ No, it’s about identifying the significant challenges a country or region is facing and seeing how IT can act as an enabler.”
Halsberghe and his team are currently in the middle of a massive project centred on digitally transforming Adecco Netherlands front and middle office systems. A daunting prospect in both scope and timeframe, as the new system is set to go live by the end of 2024.
Halsberghe talked to Interface about transformation management, getting cultural consensus, and ensuring that a digital transformation both starts and stays focused on solving genuine business problems.
Transformation led by solving business problems
Halsberghe’s role centres on delivering the front and middle office transformation slated to go live at the end of December. The main focus of this project has been Adecco’s payroll and billing system. It replaces legacy software solutions with a combination of tools by Microsoft and Salesforce. “It’s like we’re buying two boxes – a front office box and a middle office box. The piping and integration are handled by the supplier,” Halsberghe explains. “If any issues arise, it’s on the supplier to resolve them since we’re not their only HR client using this solution. Moreover, all the legal and compliance updates, such as those required by the Dutch government, are managed by the supplier. Even if changes are applied retroactively. While this comes at a cost, it removes the burden of ensuring compliance from our team.”
While Halsberghe notes both solutions Adecco is using are industry leading, he stresses the decision to use them was driven by their potential to be IT enablers for Adecco.
“It was about identifying the significant challenges we were facing. And seeing how IT can act as an enabler,” he says. “That’s the key word – IT should be an enabler. No salesperson is going to say to a client, ‘You should work with us because we use Salesforce as our front office system.’ The focus should be on efficiency. The more efficient you are, the better pricing you can offer to clients. And the easier it becomes to attract talent. The more efficient your processes, the less you need to rely on mundane tasks like data entry. Which is not exactly the kind of work people are excited about.”