Digital Transformation in Legacy Firms: Interim Managers Approach

Legacy companies—organizations established before the digital age—often face unique challenges when attempting to transition to modern digital practices. Failing to adapt to the new-age digital business environment means they are bound to be obsolete. Their existence will vanish and they’ll become a part of history.

Burdened by outdated systems and traditional mindsets, these companies require a structured, well-executed plan for digital transformation. This is where interim management steps in, bringing specialized, short-term leadership to drive change, overcome roadblocks, and implement innovative solutions.

Here, we’ll explore how interim managers can facilitate digital transformation in your legacy company. Making it move beyond traditional operations to digitally integrated frameworks and future-ready systems. 

Challenges of Digital Transformation in Legacy Firms

Digital transformation in legacy companies is complicated. Factors like outdated systems, cultural resistance, and skill gaps make things worse. The IT systems used in these companies lack the flexibility and scalability of modern digital solutions, hindering integration with new technologies.

Additionally, employees in these companies are accustomed to traditional workflows and resist the adoption of digital tools. They also display a significant skill gap while digital transformation requires new competencies in data analytics, cybersecurity, and cloud technologies.

Finally, the environment of legacy companies is more risk-averse. Hence, they hesitate to implement disruptive technologies and processes. Interim managers have experience in handling such challenges. They can equip companies with the right guidance and skills to bridge the gap and lead digital transformation.

How Interim Managers Lead Digital Transformation in Legacy Firms?

Interim managers provide specialized skills, objective decision-making, and hands-on experience. That’s every quality you need in ideal leaders for digital transformation initiatives. From strategic planning to change management and technology integration, interim managers can handle everything with utmost care.

Take the passenger seat and rest while they shift gears, accelerate digital adoption, and dodge traditional roadblocks!

Here’s how they transform legacy companies to compete in the digital world:

1. Assessing Digital Readiness and Defining Objectives

Before embarking on digital transformation, interim managers conduct a thorough assessment of the organization’s digital readiness. This includes evaluating current technology infrastructure, employee skill levels, and organizational alignment with digital objectives.

Firstly, they will perform a readiness audit, assessing data storage capabilities and identifying gaps in cybersecurity that could impact digital adoption.

By defining specific goals and KPIs, interim managers make sure that digital transformation efforts align with business priorities and customer expectations.

2. Breaking Down Cultural Resistance

One of the biggest blocks in legacy organizations attempting a digital transformation is resistance to change, especially when changing technologies. Knocking it down is a must! 

Interim managers who have cut their teeth on change management tackle this resistance head-on by creating robust communication plans, training programs, and engaging employees.

Workshops or training on new tools is another way to make the employees feel more comfortable with digital technology and it also creates an environment that supports change.

3. Implementing and Integrating New Technologies

Legacy systems, often incompatible with modern solutions, pose integration challenges. Interim managers bridge this gap by selecting the right digital tools, ensuring seamless integration with existing systems, and minimizing disruptions.

If you’re introducing cloud-based systems, interim managers can assess which legacy systems can be retired, migrated, or connected to new platforms to ensure continuity.

4. Building Cross-Functional Digital Teams

Digital transformation becomes even harder when there isn’t proper collaboration among different departments like IT, marketing, sales, and HR. Interim managers handle that by building cross-functional teams to foster a collaborative culture needed for digital success.

They can introduce agile working methods which encourage iterative feedback and collaboration, and enable teams to adapt quickly to new digital processes.

5. Upskilling and Reskilling Employees

Interim managers recognize that digital transformation is only as successful as the employees who drive it. For skills gaps, they introduce upskilling and reskilling programs that help employees find new roles in data analytics, digital marketing, or IT support.

They can also facilitate the development of new competencies to enable employees to successfully deal with modern digital tools — and do so economically through partnerships (with online training providers on a larger scale).

6. Ensuring Data-Driven Decision Making

Interim managers focus on establishing a data-driven culture. However, legacy companies don’t have it. So, they implement analytics tools and set up data governance frameworks to let companies make informed decisions based on real-time insights. This improves operational efficiency and customer satisfaction.

Interim managers also assist legacy companies in monitoring KPIs in real-time with digital dashboards and data analytics tools. Result? More agile and responsive decision-making.

Why Do You Need an Ideal Interim Manager to Lead Digital Transformations?

Now that you realize the importance of having an interim manager lead the digital transformation of your legacy company, it’s essential to understand that you can’t just seek help from any other professional calling himself an ‘interim expert.’

Digital transformations are complicated and even interim managers may face unique challenges like limited time to build relationships, replacing complex systems, and sustaining momentum post-transition. You will need real experts who have dealt with similar issues before for this.

Choose an interim manager who focuses on developing comprehensive transition plans, ensuring that knowledge and processes are transferred smoothly to permanent staff. And, don’t fall for self-proclaimed experts who only play with words and fail to deliver with actions.

Best Practices for Hiring Interim Managers for Digital Transformation

Here are some best practices for hiring interim managers to lead digital transformations in legacy companies:

(Follow these properly and boost your chances of having the right captain on the front!)

1. Define Clear Objectives: Outline the specific goals of the digital transformation initiative clearly and the expected role of the interim manager. ‘What’ and ‘Why’ are the most important.

2. Choose Industry-Specific Expertise: Interim managers with experience in the company’s industry are better equipped to handle sector-specific challenges.

3. Plan for Knowledge Transfer: Create a transition plan to ensure the permanent team can sustain the transformation efforts post-interim period.

4. Encourage Cross-Functional Collaboration: Ensure that interim managers work closely with all relevant departments to promote a cohesive transformation experience.

Závěrečný záběr

Digital transformation is incredibly crucial for legacy companies to remain competitive in the modern business environment. However, it poses complex challenges linked with modernizing established processes.

Now you know how to deal with it– “Prozatímní řízení.”

Interim managers are uniquely positioned to provide this leadership. Their expertise in assessing digital readiness, implementing new technologies, and fostering a culture that embraces change is what legacy companies need to turn digital effortlessly. 

Considering digital transformation for your legacy company? Gain the support of CE Interim and the Valtus Alliance—a global leader in Executive Interim Management. From optimizing your supply chain to managing factory relocations, our expert-led, customized solutions are designed to keep your business moving forward.

Let’s discuss your needs today! Kontakt our interim management experts for a flawless transition!