The Missing Piece in Digital Transformation: Trust, Not Tech

Image by Bernard Hermant

Let’s be honest: “digital transformation” has become the corporate equivalent of kale smoothies. Everyone swears by it, but few can explain why it’s actually good for you.

Executives pour millions into shiny new platforms, AI dashboards, and digital twins only to find their teams less engaged, customers less trusting, and innovation oddly... offline.

So, what gives? According to recent organizational research, including Andrew McStay’s (2023) in-depth examination of virtual realist governance and surveillant physics, the real missing piece in digital transformation isn’t technology, but trust.

When Algorithms Replace Empathy

McStay warns that as organizations digitize, they often forget a simple truth: data doesn’t care, but people do.

His concept of surveillant physics describes a world where every digital move, eye gaze, tone of voice, and emoji use is tracked and processed to inform “the laws” of virtual environments. Imagine if your office whiteboard not only recorded your doodles but also guessed your emotional state. Creepy? Welcome to Monday in the Metaverse.

The danger here isn’t the tech itself. It’s that companies often adopt new tools without building the psychological safety and transparency that sustain human trust. When data feels invasive instead of empowering, employees disengage, and transformation grinds to a halt.

Virtual Realist Governance: The Leadership Wake-Up Call

In contrast, McStay introduces virtual realist governance, a framework that treats digital experiences as real experiences, with emotional and ethical consequences. Translation: your team’s frustration with a new software rollout isn’t “resistance to change.” It’s a genuine human response to feeling unseen in a system built for metrics, not meaning.

Forward-thinking leaders like Microsoft’s Satya Nadella get this. When Microsoft revamped its hybrid work tools, it didn’t start with surveillance or analytics. It started with trust by design: empowering people to choose how data was shared and interpreted. The result? Better collaboration, stronger morale, and fewer “please unmute yourself” moments.

Real-World Example: Trust Wins Over Tech

Take a cue from Airbnb’s 2024 leadership initiative. Instead of deploying yet another engagement app, CEO Brian Chesky focused on “rebuilding belonging,” revamping communication rituals, and creating honest spaces for feedback before introducing any new platform. The payoff? Employee satisfaction scores rose 18%, while voluntary turnover dropped by nearly a third.

That’s what McStay might call “the missing commons”: shared values and purpose that keep innovation ethical, human, and scalable.

Actionable Tips for Humanizing Digital Transformation

If you want your digital transformation to work with people, not on them, start here:

1. Audit for trust, not just tech. Before rolling out a new tool, ask: “Do our people trust how this will be used?”Hint: If the answer involves nervous laughter, pause and recalibrate.

2. Build data empathy. Translate analytics into shared stories, not scorecards. Make metrics meaningful by linking them to values such as learning, belonging, or well-being.

3. Reward curiosity over compliance. Instead of measuring clicks or logins, measure collaboration. Digital transformation thrives where experimentation feels safe.

4. Govern with care. Adopt a “virtual realist” mindset, which means what happens in digital spaces affects real people. Design governance, like culture, should be approached deliberately and empathetically.

The Bottom Line: Trust Is the New Tech Stack

McStay’s research reminds us that the future of leadership isn’t about coding faster or tracking deeper; it’s about creating cultures where people trust the systems they use.

Because if transformation feels like surveillance, innovation will feel like rebellion.

So before your next tech upgrade, remember: algorithms can optimize behavior, but only trust inspires it.

Ready to Build a Culture of Trust?

Digital transformation shouldn’t dehumanize your organization; it should amplify your humanity.

Contact GladED Leadership Solutions today if you’re ready to elevate your organization to the next level by uniting technology with trust, empathy, and purpose.