An open approach to digital transformation can unlock a whole new world of innovation and opportunities. But to truly transform a business, it is first necessary to transform the culture. Digital knowledge and new skills are essential, but equally crucial is making it clear that culture supports rapid innovation.

Investing in people is critical for success. Helping employees develop new skills fosters a culture in which they feel empowered to pursue new ideas and confident that their contributions are valued.

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Cultural Change Starts at the Top

Microsoft’s cultural change in recent years has clearly been top-down. The company’s CEO, Satya Nadella, in his book Hit Refresh, describes how “culture eats strategy for breakfast.” For him, greater empathy and understanding are necessary, as well as becoming comfortable with change. The lesson from this multinational is to lead by example and follow key principles.

Here are Nadella’s three recommendations for leaders to empower their teams:

1. Follow a passion: Communicate ambitions and remain open to ideas from anywhere in the organization.
2. Assess existing talent: Think about how to build an effective culture.
3. Be consistent and persistent: Employees are sensitive to change, so lead with conviction.

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Passion for Big Ideas

Have you ever felt constrained by your current business model or existing team? If you want to build something bigger and bolder, propose the idea first before determining the talent you need.

Companies often resist innovating in one area because of success in another, so they don’t see the need to evolve. To succeed, the organization must be capable of continuous evolution.

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The Imperative of Diversity in Transformation

Knowledge, skill, and experience are critical for an organization embracing digital transformation. This highlights the need to invest in a culture with diverse ideas and a shared purpose.

Diversity goes far beyond doing what’s right. Innovation requires new ideas, which can and should come from anywhere. As a leader, you must embrace this philosophy and ensure those around you are open to it.

Having strong leaders who draw ideas from anyone in the company is essential. Recognizing talent and investing in growth can instill confidence in employees and lead to better ideas. Growth is much easier when team members trust that their ideas will be heard.

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Digital transformation creates opportunities. Be self-aware, keep learning, and always listen. Be smart and prioritize investing in your own talent first. Understand the culture you want to shape, then determine how it aligns with your organization’s direction. To truly transform, your culture must encourage new ideas—and leaders must serve as a showcase for those ideas.