General Manager
Technology is rarely the reason digital transformation fails. The real obstacle is changing how an organisation works: its operating model. This means shifting processes, roles, decision rights, and governance. For Saudi and GCC leaders, ignoring these changes is the fastest route to stalled transformation.
Operating model change involves redesigning the way an organisation delivers value. It covers workflows, reporting lines, decision-making structures, and accountability. Unlike technology upgrades, these changes disrupt daily routines and power structures. They demand new skills, behaviours, and mindsets.
Research by McKinsey found that only 30% of digital transformations succeed. The most common failure pattern: organisations invest in new systems but do not change processes or clarify new accountabilities. BCG’s 2021 study of Middle East digital initiatives found that projects focusing only on technology had a 70% higher risk of underdelivering compared to those that addressed operating model shifts. In the GCC, public sector programmes have faced delays not due to technical issues, but resistance to new ways of working and lack of clear ownership for outcomes.
Consider a hypothetical Saudi government entity rolling out a digital service platform. The technology is delivered on time. However, frontline staff are unsure who approves exceptions, middle managers continue manual sign-offs, and KPIs do not reflect digital service targets. As a result, adoption stalls. The issue is not the platform, but the lack of operating model change: unclear decision rights, outdated processes, and unchanged incentives.
Leaders face a choice. Fast technology deployment can show quick wins but risks superficial adoption. Deliberate operating model change takes longer, requires more stakeholder alignment, and may slow visible progress. However, it is the only way to embed new behaviours and sustain transformation.
Altaius recommends a simple diagnostic:
Organisations that treat operating model change as the core of digital transformation, not an afterthought, are more likely to deliver lasting results.
