The Dynamics of Business Behavior

8Stakeholder Engagement

CONSIDER A FICTITIOUS multinational fashion corporation embarking on an enterprise-wide digital transformation initiative. The new strategy, meticulously crafted by top management and external consultants, promised quite the package: streamlined operations, enhanced productivity, and a culture primed for innovation.

The execution of this strategy began with a top-down rollout. Armed with beautifully designed slides, timelines, and objectives, senior management set out to transmit their vision to the organization. Town hall meetings were organized, newsletters were dispatched, and training sessions were scheduled. The goal was simple: equip everyone with the knowledge and tools needed to navigate the digital transformation. Yet the flow of information was from the top to the bottom, with little opportunity for feedback or dialogue.

Despite the clear advantages presented by the transformation, the transition from planning to implementation revealed some unexpected complications. The workforce—comprising a wide array of stakeholders from fashion designers and project managers to administrative staff and even top-level executives—found themselves grappling with the changes. Their involvement had been limited to receiving information about the impending transformation, with little say in the planning process. This lack of engagement began to breed distrust. As the people at the heart of the change, the employees felt overlooked and disconnected from the company's ...