Why resistance to digital change starts at the top

Transformation isn’t always a technology issue, it’s a leadership one.

Across Europe’s industrial midmarket, leaders say the right things about digital transformation. They talk about innovation, efficiency and future-proofing. But behind closed doors, there’s hesitation and it’s costing progress.

Forterro’s latest research found that while 60% of companies describe their digital transformation progress as just “adequate” or “poor,” the biggest resistance isn’t on the shop floor. It’s in the boardroom.

Finance, production and logistics functions all showed strong resistance to change, but management was right behind them.

The comfort zone problem

For years, the midmarket has thrived on reliability and continuity. Many leaders built their success on the systems, processes and customer relationships that still run their businesses today. It’s understandable that change feels risky.

But in 2026 and beyond, standing still is the greater risk. The same research shows 57% of decision-makers believe companies that resist cloud adoption will lose market share. And almost half admit their organisation’s lack of cloud usage means they aren’t seeing the benefits of technologies like AI.

Leadership hesitation doesn’t just slow digital projects, it signals to the entire organisation that transformation can wait. That message filters down quickly.

Why leadership matters more than ever

Midmarket firms often operate with lean teams and deeply embedded routines. Without visible leadership commitment, digital initiatives rarely survive first contact with daily pressures.

When employees sense uncertainty from the top, they default to the familiar. That’s why the most effective transformation projects share one trait: leaders who are personally involved, visibly supportive and willing to make short-term trade-offs for long-term gain.

The companies moving fastest aren’t always those with the biggest budgets, they’re those where the leadership team shows curiosity, not just approval.

Three leadership habits that unlock digital progress

1. Model the mindset
Leaders set the tone. When the CEO or plant director actively uses new dashboards, attends digital training or requests reports from new systems, teams follow. Transformation becomes part of how the business runs, not an extra project.

2. Make it safe to experiment
Innovation doesn’t start with a multi-year roadmap, it starts with permission to test. Give teams space to pilot small digital improvements without fear of failure. One small win does more to build momentum than another strategy presentation.

3. Link digital to purpose
Change fatigue is real. People commit to transformation when they see how it connects to what matters, whether that’s customer trust, sustainability goals or competitiveness. Digital maturity isn’t abstract; it’s how your business stays relevant.

The midmarket advantage

The industrial midmarket may not have the resources of large enterprises, but it has something equally powerful: closeness. Leaders are visible, decisions are quicker, and teams often know one another personally. That proximity is a strength, it means cultural shifts can take hold faster when leaders lead by example.

As James Fay, Commercial Director at Leon Paul, a Forterro customer, puts it:

“Just because a business has been doing something a certain way for 25 years, it doesn’t mean to say it’s the right way. There is always a better way to do something.”

That belief has to start at the top.

Looking ahead

Digital transformation doesn’t fail because the technology isn’t ready. It fails because leadership isn’t aligned, visible or consistent. As the pressures of AI, compliance and supply chain disruption build, digital hesitation becomes a strategic liability.

Leaders who embrace digital maturity as a shared journey, not a departmental project, will define the next chapter of the European midmarket.