The success of digital transformation is often extremely low. Research from Copenhagen Business School suggests that what is subtracted is as important as what is added.
“The subtraction logic, that is, the process of removing obstructive routines and technologies, is often disregarded in digital workplace transformation, despite being equally crucial,” the researchers say.
The findings shed light on two distinct approaches pivotal to achieving a triumphant digital transformation: the incorporation of new technology, which follows an additive logic, and the elimination of outdated technology that perpetuates undesirable practices, rooted in a subtractive logic.
Subtraction logic
The research brings forth a crucial aspect often disregarded in the realm of digital workplace transformation, accentuating the imperative nature of integrating subtraction logic alongside addition logic.
“By recognizing the value of subtraction logic and not taking a one-sided focus on just the addition logic, organizations can foster innovation, adaptation, and employee empowerment,” the authors explain.
Subtraction logic, known as deinstitutionalization, encompasses the deliberate act of dismantling established practices to create space for novel ideas and approaches, fostering innovation and adaptability within an organization or society. It entails questioning conventional norms, rules, and behaviors to embrace transformative change and emerging technologies.
“Subtraction in digital transformation requires careful consideration of which established practices need to be abandoned to achieve transformation goals. Organizations like the car company aiming for employee empowerment need to remove practices that oppose or undermine this notion, such as excessive managerial approvals,” the researchers continue.
Rejecting rules
The paper explores the car company’s strategic rejection of existing approval rules that hindered timely decision-making. In addition to discarding these rules, the company made a notable move by dismantling its business travel system, which imposed formal approval requirements for trips. This transformation was perceived as a means to empower employees rather than impose constraints upon them. Initially, certain managers resisted this change by insisting on email-based approvals, but the removal of the system facilitated the establishment of new approval processes.
Likewise, the hierarchical structure significantly influenced the allocation of IT equipment, which had become emblematic of status tied to one’s position within the company. However, the car company challenged this norm by abolishing permission rights related to the IT ordering system. This alteration granted employees the autonomy to independently request IT equipment that precisely matched their actual job requirements, rather than their hierarchical standing.
While some managers voiced concerns regarding the affordability of expensive smartphones for employees, the introduction of the new IT ordering system empowered the workforce to embrace the revised rules and explore new possibilities.
Conflicts occurring
“These conflicts occur because some individuals are reluctant to let go of privileges and control associated with the old practices,” the researchers explain.
The research strongly advocates for organizations to adopt a dual process that involves incorporating new elements while concurrently eliminating undesirable ones. It emphasizes the importance of contemplating not only the desired future but also the aspects that should be relinquished from the past. By embracing this approach, organizations can effectively navigate the transformative journey and ensure a comprehensive and balanced evolution.
“Our hope is that organizations use our research to approach digital workplace transformation not only by incorporating new practices and new technologies but also by eliminating those that impede their transformation goals. Taking such a balanced view may help managers avoid frustrations caused by the dominant ‘addition narrative’ logic,” the researchers conclude.
