Ahead of digitalisation: getting the basics right

Many see digitalisation as the key to the modern enterprise: faster operations, better data analysis, more efficient processes. But where an organisation is already struggling – for example, because of silo thinking, poor communication or poor problem-solving skills – digitalisation, far from solving these problems, makes them more visible.

As they say:
“Until now no one knew they couldn’t solve the problems, but after digitalisation everyone will see that they can’t.”

What does digitalisation show?

Digitalisation alone will not make mistakes disappear. If processes are disorderly, technology merely automates the errors. If the organisational culture does not support accountability and problem solving, digital tools will only add to the chaos.

In a dysfunctional system, digitisation exacerbates the following problems:

• Chaotic processes: it is not clear who does what and when.
• Blurred responsibilities: no one takes responsibility for solving problems.
• Data opacity: there is a lack of context to help interpret and use the data.

How can we prepare for digitalisation?

I have mentioned in several blog posts that KULCS is the design of a Performance Control System. This system ensures that the organisation not only benefits from digitalisation but is also prepared for the challenges of technology.

What is a performance control system?

A performance control system is a framework that makes the organisation’s operations structured, transparent and measurable. Its key elements are:

1. Regular meetings
   • Structured meetings on a daily, weekly and monthly basis to review objectives, results and problems.
   • A clear agenda and pre-defined topics that help you communicate effectively.
2. Clear responsibilities
   • Every employee should be aware of exactly what they are responsible for.
   • Individual responsibilities are aligned with the company’s goals, so everyone contributes to the results.
3. Well-defined KPIs (Key Performance Indicators)
   • Clearly defined performance indicators help measure the work of individuals and teams.
   • KPIs not only provide numerical targets, they are also a tool for development and learning.
4. Problem-solving processes
   • Root cause analysis is part of everyday operations, so problems are solved, not reappear again and again.
   • Solving problems is not an individual effort, but a team effort involving all stakeholders.
5. Data management and feedback
   • A performance monitoring system ensures that the organisation not only collects data, but also derives valuable information from it, which it can use to take action.
   • The feedback mechanism helps to ensure continuous improvement.

The relationship between performance control system and digitalisation

Digitalisation is only really useful if the performance management system is already in place. This framework ensures that:

• Automation should support structured processes, not chaos.
• Data must be of value because the organisation understands and uses it.
• Technology should help people, not replace them.

A well-functioning performance control system is therefore the precursor to digitalisation. Without it, digitisation is nothing more than a set of expensive tools and data that do not deliver the expected results.

Closing: getting the basics right

Digitalisation is not a panacea, but a tool. Organisations that cannot solve their problems today will not be able to do so after digitalisation – they will only become more visible.

Therefore, before going digital, an organisation must first get its internal workings in order. A performance control system ensures that processes, responsibilities and KPIs are clear. This is the foundation on which digitalisation can truly build.

The question now is: are you ready to build a solid foundation before digitalisation? If not, now is the time to start! 😊

AgadoPro-Academy supports companies through leadership and organisational development, because without change and development, it is almost impossible.

Attila Jezsó

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