Originally published for Forbes Business Council.

Written by Khristian Gutierrez, Passport CEO

Companies, organizations and governments face a common dilemma: How do you encourage a market deeply accustomed to “the way things have always been” to embrace more modern, digital solutions?

This challenge is especially acute in government technology: Some systems range from 23 years to 59 years old, which demonstrates just how entrenched legacy technology can be. Newer technologies that promise progress can only be as transformative as their ability to be adopted and implemented.

For leaders driving innovation, the obstacle is never solely technical feasibility, but reshaping mindsets and allaying deeply rooted anxieties about change. For the public sector, modernization is long overdue and increasingly critical, with fragmented legacy technology systems spread across state and local governments, inefficiency is baked into the daily experience. Yet when modernization succeeds, it transforms productivity and efficiency, setting off a ripple effect that catalyzes new opportunities and redefines what’s possible across entire industries.

Consider the City of Boston, which recently broke up a monolithic parking contract and shifted to a cloud-based, data-integrated approach, an example highlighted by Harvard Kennedy School’s Data-Smart City Solutions. Despite countless examples of disruptive innovation, many sectors cling to legacy systems, operating for decades beyond their intended lifespan.

Studies by Deloitte and the World Economic Forum point to the heavy costs and operational risks associated with legacy technology, but also to an underlying fear: Change, even when inevitable, requires recalibrating relationships, routines and roles. Modernization is never just a technical upgrade; it’s a cultural shift demanding buy-in at every level.

Government agencies could face demographic headwinds with a potentially aging workforce. This underscores the urgency to modernize and attract new talent by creating more digital-friendly, effective workplaces.

While the advantages of modernization—greater efficiency, data-driven decision-making and improved service—may seem self-evident to those close to the technology, the reality on the ground is markedly different. In fact, approximately 70% of digital transformation initiatives stall due to resistance from stakeholders who are comfortable with the status quo. Understanding and addressing this resistance is key to driving adoption, not just surface-level change.

The Psychology Behind ‘We’ve Always Done It This Way’

It’s tempting to see resistance as simple reluctance or risk aversion, but the culprit runs deeper. Legacy processes are often institutionalized—built on years of workflows, tribal knowledge, staff expertise and organizational norms. People have built their expertise around existing workflows, and many take pride in their mastery of long-standing systems, equating longevity with reliability.

Organizations often develop what some experts call “organizational muscle memory“: collective comfort with familiar routines that govern daily operations. This entrenched behavior can inadvertently foster cognitive and emotional barriers to change, such as perceived complexities or a fear of diminished job relevance. Complicating matters, the consequences of system upgrades can seem especially risky to those tasked with managing dialer operations.

Employee resistance and lack of top-level management support remain the top reasons digital transformation stalls. In public agencies, only 20% of workloads are currently in the cloud, according to the Q2 2025 Government Technology Quarterly Sector Review from Guggenheim Securities. This suggests that no “silver bullet” technology can succeed in isolation. Instead, genuine transformation requires a thoughtful, inclusive approach to both change management and stakeholder engagement.

Actionable Strategies For Leading Market Transitions

Illuminate The ‘Why’, Not Just The ‘How’

Change management starts with trust and transparency. Communicate why modernization is essential for leaders and every stakeholder, including front-line workers, administrators and end users. Referencing sector-wide modernization tailwinds can build urgency: Heightened attention on digital services, ongoing budget constraints, and increasing prioritization of modernization by younger, tech-savvy elected officials are all fueling market change. Use real-world stories that illustrate current pain points and demonstrate how inefficiencies, data silos or downtime hurt everyday operations.

Stage Change With A Customer-First Lens

For technology to be truly adopted, it must meet users where they are. According to the Guggenheim Securities report, only 75% of governments have established cloud-first strategies for new applications, indicating most modernization cycles remain in early stages. Phased pilots, parallel system runs and tiered rollouts minimize disruption and build confidence, supported by best practices in successful SaaS transitions among public sector leaders. This principle echoes John Kotter’s eight-step process: Create short-term wins to build momentum and confidence in the new approach.

Invest In Onboarding, Training And Champion Networks

Fear of obsolescence or loss of expertise is a powerful (and understandable) concern among staff. The aging public sector workforce means onboarding and ongoing training are more crucial than ever. Middle managers and “change champions” play a critical role in normalizing new tech and sustaining adoption.

Measure Progress And Share Quantifiable Wins

Understanding the metrics that matter, whether reduction in processing time, error rates or user satisfaction, can create tangible proof points for the benefits of modernization. Sharing these results throughout the transition reinforces adoption and dispels skepticism, while also demonstrating strong momentum and validating the operational benefits.

Respect The Value Of Institutional Memory

It’s a mistake to dismiss “old ways” entirely. Senior staff, operational veterans and longtime stakeholders hold knowledge that can make or break implementation. Co-designing new solutions with those who know the legacy system best reduces risk and increases buy-in.

From Reluctance To Advocacy: Building A Modernization Movement

At its core, modernization is about people. To overcome modernization hesitation, we need dialogue, empathy and step-by-step change as much as mastery of features and benefits. As technologists and leaders, our job is to build bridges and honor the past while offering a better path to the future.