People-Powered Digital Transformation

In the moldmaking industry, digital transformation promises efficiency, visibility and growth. Yet 70% of these initiatives fail. Not because the technology falls short, but because the human element is overlooked. Industry experts Vince Sassano, president of Strategic Performance Company, and Marion Wells, founder of Human Asset Management, share why so many efforts stall and how moldmakers can get it right. Drawing on decades of experience, they reveal that success depends on leadership, effective communication and a culture that embraces change.

Digital transformation in moldmaking isn’t just about tools; it’s about people. Technology can unlock efficiency, but only if teams are engaged and led effectively.

The Hidden Cause of Failure

Digital transformation failures often stem from a lack of focus and leadership. Despite advancements in data collection, dashboards and software tools, many initiatives falter because companies don’t clearly communicate the “why” behind the change. Without buy-in from the shop floor to the C-suite, enthusiasm fades and the blame game begins. “They lack leadership and focus,” Sassano says. “They don’t explain why we’re doing this or the benefit to everyone involved.”

On the ground, this translates to chaos. With four generations in the workforce — Baby Boomers and Gen Xers wary of new technology and Millennials and Gen Z expecting it — tensions are building up. Poor communication and turnover can slow or halt progress. “It looks like chaos,” Wells notes. “When the human side is treated as an afterthought, you get tension, turnover and stalled change efforts.”

Prioritizing People from the Start

Only a small percentage of companies prioritize the human factor from the outset and successfully implement it. Larger companies with more resources may be able to muscle through, but smaller moldmakers often encounter roadblocks due to limited budgets or competing priorities.

Success requires strong, decisive leaders who clearly define the purpose and involve everyone in the process. “Successful companies have strong leaders who are fully involved,” Wells says. “They share ideas, are inclusive and help everyone understand why we’re here.”

Leadership also means making tough calls. “You need somebody who’s decisive,” Sassano adds. “Problems will come up, and someone’s got to make the call for the good of the business. Without this, hesitation and fear of blame can paralyze progress, with employees dodging responsibility, thinking, ‘That’s above my pay grade.’”

Real-World Wins

When technology and people align, the results are striking. Sassano shared a case where a manufacturer boosted productivity by 30% on manual labor lines simply by giving operators real-time data visibility. “Just by being aware of what’s happening, productivity went up 30%,” he recalls.

Another success involved Revell, a model kit manufacturer struggling with 32 injection molding machines. A simple database system revealed inefficiencies, such as why certain molds ran faster on some machines, resulting in 15-20% performance gains. These wins came not from complex technology but from surfacing relevant data to frontline workers and their management to drive better decisions, such as optimizing schedules.

Wells sees similar potential when companies dig into their challenges. She’s working with a customer facing high turnover because HR is overwhelmed. “They’re not using technology, nor are they aware it can augment their work to focus on people,” she says. Awareness of data and problems is the first step to finding solutions.

Culture Critical

A culture ready for transformation starts with leadership alignment. If leaders aren’t on board, employees pick up on that and efforts fail. “Are they willing to adapt?” Wells asks. “That mindset cascades down. People know when everyone’s all in.” Leaders must drive digital transformation from the top. Without executive support, middle managers lack the authority to overcome resistance and implement change.

Successful cultures are proactive with leaders who anticipate and plan for resistance. Change is emotional, requiring support to help employees move past fear of new processes. “People go through cycles of emotion like fear, frustration, feeling fed up, even grieving the old way,” Wells explains.

Employees resist change when they fear disruption to their work. Leaders must take initiative, and that often means being creative. Sassano shared an anecdote where a VP of Manufacturing implemented a simple new technology by using his operations budget instead of the capital budget to bypass internal red flags over technology spending. “If it said technology, it was going to raise flags,” he says. This creative workaround led to a successful project, proving that bold leadership can overcome obstacles.

Sustaining change requires ongoing effort. After a strong start, energy and enthusiasm can fade within months. Continuous communication and feedback loops are essential. “You’ve got to keep everybody involved, keep that feedback loop going,” Wells advises. “People need clear roles and the ability to ask questions.” Leaders must track key indicators like profitability and efficiency, acting on data rather than ignoring it. If they focus solely on immediate results without understanding the broader strategy, they fail to make progress.

Elevating Communication

Human Resources plays an essential role. Too often, HR is limited to payroll and benefits, but it should have a strategic seat at the table. “HR has to be included on the leadership team,” Wells emphasizes. “They know where the challenges are and can bring feedback from the shop floor.” Sassano agrees, noting a partner’s HR-specific software that acts like a CRM for employees, capturing shop floor issues to bridge gaps.

The current labor challenges add a bit of urgency. Moldmakers are competing with gig economy jobs and e-commerce companies, which offer flexibility and competitive pay. To retain talent, companies have to raise wages, improve benefits and build pride with recognition, like T-shirts celebrating achievements. “One customer’s employees got T-shirts three years ago for being a top vendor, and they’re still wearing them,” Sassano says. This pride is vital to rebuild.

The Role of AI and Technology

AI is a powerful tool, but no substitute for human creativity. “AI can do known things really fast, but it can’t bring the creativity people offer,” Sassano explains. It requires vast, accurate data to deliver, making it a complement to, not a replacement for, human-driven change. As technology evolves, younger generations expect it, while older ones remain cautious, highlighting the need for balanced leadership.

Simply deploying new technology like AI isn't enough. Shops need training and adoption strategies to help their workforce use these tools effectively and deliver business value.

Starting Your Journey to a People-First Future

For moldmakers embarking on digital transformation, begin by addressing obvious problems everyone knows but avoids and encourage open dialogue in meetings by urging teams to propose solutions, even if they are imperfect. Sassano recalls a leader who challenged a silent room: “If I have to tell you your problems and how to fix them, this isn’t working.” This tough love strengthened accountability, although it also revealed challenges, such as employees unfamiliar with new products following a shop acquisition.

When technology and people align, the results are striking.

In the end, transformation is disruptive and people resist change. Success requires buy-in, clear goals and regular progress checks. Celebrate wins to build enthusiasm and make change part of the company’s culture. “You’ve got to get buy-in from everyone, track metrics and celebrate wins,” Wells says. “It has to become the way we do things.”

Digital transformation in moldmaking isn’t just about tools; it’s about people. Technology can unlock efficiency, but only if teams are engaged and led effectively. By prioritizing communication, addressing disruption and building culture, moldmakers can beat the 70% failure rate and cross the finish line stronger than ever.