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Why Most Digital Transformations Fail
Most organizations still approach digital transformation as a technology project. They buy tools, select platforms, and run implementations as if success were a technical milestone. This is precisely why so many initiatives fail: the real friction lives in people, structures, and culture, not in the technology itself.
Barbara highlighted that failure patterns are surprisingly consistent:
- Projects that defined by features instead of outcomes
- Overloaded teams who are “volun-told” to adopt new tools on top of their real jobs
- No clear ownership for behavior change, learning, or cross-functional collaboration
- Leadership narratives that celebrate the tech but ignore the human cost
Technology is the simplest part of digital transformation. The hardest part is changing how people work together, make decisions, and share responsibility for outcomes. When organizations treat this work as “soft” or secondary, they bake failure into their strategy from day one.
Key Takeaway: Digital transformation failures are rarely due to technology. They are people, culture, and structure problems masquerading as IT issues. If you do not design explicitly for how humans will work differently, no platform or AI tool will save the initiative.
The Critical Role of Empowerment and Middle Management
During the conversation, we kept returning to one central point: “Change starts in the middle.” While executives may sponsor transformation and front-line employees live its daily reality, middle managers are the ones who must translate strategy into practice.
In most organizations, middle managers are:
- Measured on short-term delivery and firefighting
- Given little support for coaching, experimentation, or learning
- Left out of early design conversations yet held accountable for adoption
This creates a structural paradox: the very people who must drive transformation are the least empowered to shape it. That’s why middle management should be treated as strategic infrastructure. That means:
- Involving them early in scoping and problem definition
- Giving them explicit authority to adjust workloads and priorities
- Training them in facilitation, coaching, and cross-functional collaboration
Key Takeaway: If middle managers are not genuinely empowered, digital transformation will quietly stall in the “frozen middle.” Sustainable change requires designing with and for the people who sit between strategy and execution.
Going From Shiny Objects to Real Outcomes
We also discussed the current rush toward AI and the pressure executives are putting on their teams to do that ASAP. You should be careful of reckless tool adoption driven by FOMO or competitive pressure. Many organizations are jumping into AI and technology pilots without a clear answer to basic questions:
- What exact business problem are we solving?
- How will this change how someone works tomorrow?
- Who is responsible for embedding this in daily routines?
Every technology tool must be anchored in business outcomes and human workflows. Without that grounding, they increase cognitive load, create more fragmentation, and erode trust among employees who already feel change-fatigued, especially in today’s AI age.
There’s also the risk of using AI as a way to “optimize people away” instead of augmenting them. When employees sense that tools are being used against them rather than with them, engagement collapses and adoption becomes performative at best.
Key Takeaway: AI and digital tools only create value when they are clearly tied to outcomes, integrated into real work, and experienced by employees as support, not surveillance or threat.
Building Human Infrastructure
The heart of Barbara’s work is the concept of “human infrastructure.” While organizations invest heavily in technical infrastructure, they tend to neglect the equivalent foundation on the people side. Human infrastructure includes:
- Mindsets: How people think about change, experimentation, and failure
- Capabilities: What they’re trained and supported to actually do differently
- Relationships: How trust, communication, and collaboration are cultivated
- Rhythms: The rituals and cadences that make learning and adaptation normal
She described human infrastructure as an intentional system that sits alongside technology and process, not beneath it. Rather than one-off workshops, it involves ongoing training, coaching, and spaces for cross-functional learning where people can make sense of new tools together.
Barbara argued that, without this infrastructure, organizations are essentially trying to run high-performance software on a fragile human operating system. We’ve all seen how this typically plays out: burnout, resistance, shallow adoption, and ultimately failed transformation.
Key Takeaway: Human infrastructure is not a “nice-to-have” complement to digital strategy. It is a core component of organizational design. When you invest in mindsets, relationships, and learning as deliberately as you invest in platforms, transformation becomes repeatable instead of accidental.
What Startups and HR Leaders Need to Do Differently
Barbara offered pointed advice to startups and HR leaders, who often sit at the intersection of people and technology.
For startups, her guidance was:
- Resist the urge to copy the corporate “playbook” of tool-first transformation
- Design for clarity of outcomes and roles from the beginning
- Treat culture, collaboration, and learning mechanisms as part of your product architecture
For HR leaders, Barbara challenged the traditional positioning of HR as a support function. She argued HR should be:
- A strategic partner in digital strategy, not just a recipient of change
- The owner of human infrastructure, charged with building capabilities and learning environments
- A translator between business outcomes and people realities, ensuring that any tech decision includes an explicit people plan
She also stressed the value of co-creation: involving employees and line leaders in designing solutions rather than pushing change onto them. This not only improves adoption but surfaces practical constraints that are invisible from the boardroom.
Key Takeaway: Startups have a unique chance to architect their human infrastructure early, and HR leaders have a unique mandate to ensure that technology strategy and people strategy are inseparable. When both groups lean into that role, transformation becomes a shared project rather than an IT initiative.
HR and IT: The New Power Couple
One of Barbara’s strongest, most practical points was that in startups, HR and IT can no longer operate as separate worlds. She argued that especially in younger companies, where structures aren’t yet calcified, there is a huge competitive advantage in deliberately fusing these two functions. In her words, the HR leader and the IT leader in a startup should be “attached at the hip.”
Barbara walked through what typically happens instead: pressure rolls down from investors to the CEO, then to IT, and when IT hesitates (often for good reasons like security, architecture, or fit), the work gets tossed over to HR as a “pilot” or “experiment.” HR ends up inheriting responsibility for digital and AI initiatives without clear mandate, shared strategy, or real partnership. The result is fragmented tools, duplicate spend, and confused employees.
Her recommendation was explicit: HR and IT must co-create a joint vision and roadmap for how technology and people evolve together. That means:
- Sitting down together with the founder/CEO to define business outcomes first, then back into tools
- Agreeing on a shared, cross-functional plan rather than dueling roadmaps
- Treating culture, ethics, learning, and employee experience as design criteria alongside architecture, security, and integrations
Barbara went as far as to call HR and IT “the new power couple” in modern organizations, if they choose to act like one. She also tied this directly back to human infrastructure: ongoing training, mindset work, and safe spaces for experimentation should be treated as part of the same ecosystem as servers, platforms, and AI tools. In her model, that’s exactly why human infrastructure should be a formal line item in the IT budget because people and technology are two halves of the same operating system.
Key Takeaway: For startups, separating HR and IT is a strategic risk. When HR and IT partner deeply on vision, budgeting, and execution, they become the core engine of sustainable digital and AI-enabled growth.
My Final Thoughts
I walked away from this conversation energized and, frankly, validated. So much of what we label as “digital failure” is really a failure to take people seriously as the primary system we are transforming. Barbara put language and structure around instincts many of us already feel: technology is rarely the true bottleneck.
Here are the core ideas that stayed with me after our conversation:
Why Digital Transformations Really Fail
What resonated most for me was Barbara’s insistence that we stop hiding behind technology as an excuse. Her framing of failure as a people and structure issue forced a useful level of honesty. It aligned deeply with my own experience: whenever the human side is treated as secondary, the initiative eventually unravels, no matter how strong the tech stack looks on paper.
The Power and Vulnerability of Middle Management
I especially appreciated the focus on middle managers as the “load-bearing walls” of transformation. Too often, we romanticize visionary leadership and heroic front-line stories while ignoring the people who must hold the tension between strategy and reality every single day. Barbara’s call to genuinely empower and equip them felt both overdue and practical.
Human Infrastructure as a Strategic Asset and a Budget Line
One of Barbara’s most powerful recommendations was to treat human infrastructure as a formal line item in the budget, not a side-effect of “good leadership” or a one-off training cost. This simple move forces organizations to acknowledge that mindset shifts, coaching, learning programs, and collaboration structures are real investments, not incidental overhead. It also creates accountability: if you can see the spend, you can ask what value it is creating and how it ties to your transformation outcomes.
I think this idea makes a lot of sense. We already budget for platforms, licenses, integrations, and consultants with great rigor. Doing the same for the human infrastructure that actually determines whether those investments pay off is both logical and overdue. It sends a powerful internal signal: we are as serious about how our people work and grow as we are about the tools we buy.
AI Adoption Without Human Fear
The conversation on AI was a powerful reminder that capability without clarity is dangerous. I share Barbara’s concern that many AI efforts are being launched without a grounded understanding of the work they are altering or the fears they are triggering. Her insistence on using AI to augment, not erase, human contribution is a principle I believe should sit at the center of every modern people strategy.
Yes, AI will make some jobs obsolete, but most of those roles were never truly designed to leverage deep human capability in the first place. They were built around repetition, compliance, and low-level processing. That’s precisely why this moment is such a critical opportunity to double down on human infrastructure: to intentionally redesign work so our employees spend more time on the things machines struggle to do well: judgment, relationship-building, creativity, sense-making, and ethical decision-making. If we get this right, AI will free us to finally use human potential as the core engine of value creation.
Human Infrastructure as a Strategic Asset
“Human infrastructure” is a phrase I will keep using. It elevates learning, mindset, collaboration, and trust from the realm of “soft stuff” to designed, maintained, and funded infrastructure. That shift in language alone has the potential to change boardroom conversations about where investment truly belongs if we want transformation that lasts.
Nahed Khairallah