Why change management fuels digital transformation in local governments

Digital transformation has become increasingly important at the local government level. From streamlining operations and creating efficiencies to improving service delivery and enhancing the experience, modern technology holds the promise to help municipal organizations meet the ever-evolving needs of their communities.

For all its benefits, technology modernization can be challenging. Limited budgets and financial constraints, legacy systems and infrastructure, and cultural and organizational barriers can hinder — perhaps even halt — progress.

A successful digital transformation is not only about the technology; it is about managing the people and process changes that come alongside it to guide success. Organizational change management (OCM) is critical to the success of any technology implementation. It ensures your people are ready and equipped to embrace new systems and processes. Without a strategic approach to change management, even the most thoughtfully planned digital initiatives can fall short of delivering on their promises.

The reality of technological adoption in municipalities

According to the 2024 MNP Municipal Report, 49 percent of local governments cite resistance to change as one of the challenges they face when implementing new technology. This resistance stems from a variety of factors, including tight budgets, lack of internal expertise, and difficulty in moving away from long-standing processes and mindsets.

Many local governments have found themselves in a balancing act, trying to allocate the funds and resource capacity for technological upgrades while managing day-to-day operations. Despite these challenges, the benefits of digital transformation — like increased efficiency, a culture of innovation and continuous improvement, and improved service delivery — make the investment worthwhile.

The role of change management in a successful digital transformation

At the core of any successful digital transformation is a comprehensive change management strategy. Change management is not just a supporting activity — it is at the core of how you prepare, equip, and empower your team to adopt and sustain lasting change. Your digital transformation hinges on the readiness of your people. Investing in their readiness is no longer optional. It is vital.

To determine the readiness of your team, it is important to assess the current state and build a custom-fit plan for transformation. This includes evaluating your vision for the change and strategic alignment to your organizational goals, leadership commitment, organizational culture and attitudes, and the knowledge and capacity of your employees. By conducting a comprehensive readiness assessment, you can identify potential roadblocks and develop strategies to address them, ensuring a smoother transition to new technologies.

Following a proven methodology, such as Prosci’s ADKAR change management model, will ensure your change management approach and plan is holistic and comprehensive. ADKAR, which stands for awareness, desire, knowledge, ability, and reinforcement, is a tool that guides organizations through the process of change and into sustainment. Here is a breakdown:

Awareness: Ensuring your team understands the need for change.

Desire: Creating desire within your team to participate in and support the change.

Knowledge: Providing your team with the information and training they need to understand how to change.

Ability: Ensuring you team has the skills and capabilities to implement the change.

Reinforcement: Reinforcing the change to make sure it is sustained over the long term.

The ADKAR model is especially effective as it focuses on the human aspect of change, addressing the hurdles that can arise when people are asked to do things differently. By engaging this model, local governments can make sure their teams are ready for change and fully involved in the process. Consider working with experienced Prosci-certified advisors who successfully guide clients through the levers of change every day.

Building a digital culture

An important component of change management is nurturing an innovative and digital culture within your municipal organization. Digital culture is about more than new tools, it is about embedding digital literacy and thinking into the essence of your operations and encouraging curiosity, creativity, adaptability, and flexibility among your team.

A strong foundation of digital literacy among your employees is key. When people feel confident using technology and are comfortable learning how to use new systems and tools, they are more likely to buy-in to the change and make it successful. This requires them to have the competencies to navigate, understand, and apply digital tools and processes to enhance municipal operations.

Building an innovative, digital culture also means establishing a shared vision for change. What are the behaviours, attitudes, and outcomes your local government is striving for? How will your digital transformation improve public services, engage the community, and streamline internal processes? Having these discussions with your teams will help to establish shared ownership around success and generate enthusiasm for the change.

Steps to prepare your team for change

Preparing your team for upcoming transformation is essential to the success of your digital transformation. Here are the steps you can take:

Conduct an organizational readiness assessment

Evaluate your current state, including the vision and strategic alignment of your organization, leadership commitment, culture, and the skills and resources available. This assessment will help you identify any gaps and areas that need attention before the change process begins.

Create a vision for the change

Clearly define the desired outcomes of the change, including the behaviours, attitudes, and results you are hoping to achieve. This vision will act like a north star for your team, to make sure everyone is moving toward common goals.

Build a change management plan

Develop a comprehensive change management plan that includes stakeholder analysis, employee engagement strategies, a communications plan and key messages, an approach for managing resistance, and methods of measuring success (e.g.: outline key performance indicators). This plan needs to be personalized to the specific needs of your municipality.

Establish a network of change agents

Identify and recruit change agents from within your organization who can lead by example and support their peers through the change process. These are the champions that will foster support and help ensure the digital transformation is sustainable.

Engage and enable leaders at all levels

Involve leaders at all levels — team leads, supervisors, managers, and senior leadership — in the change process. Strong leadership is vital for driving the initiative, achieving buy-in, and maintaining its momentum throughout your organization. Leader-led change is being deployed as a key lever of driving successful change and adoption. It involves equipping leaders with the knowledge and capability of what it means to be a leader of change, key roles expected, and demonstrating active presence in driving change objectives.

Build a digital literacy and upskilling program

Make sure your team has the knowledge and skills needed to thrive in a digital environment. This could involve training, access to resources, and opportunities for continuous learning and engagement.

Communicate well and often

Maintain transparent communication throughout the transformation process. Keep your team up to date on what is happening, why it is happening, and how it will benefit them and the municipality. Make sure to have regular updates and feedback loops.

Reinforce the change

The work does not end once the change has been implemented. It needs to be reinforced through ongoing support and continuous improvement initiatives. This will help ensure the change is sustained over the long term.

Additionally, do not be afraid to seek help. The right partner can guide you through this the change management process, ask the right questions, and offer the insights and advice your organization needs to achieve an effective implementation.

The path to sustainability

Digital transformation in local governments is a complex but a necessary undertaking. The challenges are significant, but with the right approach to change management, they can be overcome. By investing in your team and fostering a culture of innovation, accountability, and adaptability, you can make sure your digital implementation is both successful and sustainable.