Corporate Transformation and Modernization failures! Why the failures?

#Digitization, #Modernization, #Change, #Transformation, #Regenerative Growth

We live in an age in which disruption, change and dynamic demands has become the only constant. So, it’s not surprising that change and IT management models have become popular. Executives are urged to develop a plan to communicate the need for change, access and functionality, create a sense of urgency and then drive the process through to completion.

Unfortunately, the vast majority of these efforts fail and it’s not hard to see why. Anybody who’s ever been married and has kids knows first-hand how difficult it can be to convince even a single person of something. Any effort to persuade hundreds, if not thousands, of people through some kind of mass effort is setting the bar pretty high. In business we have the impact of cultural, social and economic conditions that vary vastly form the typical household. If you cannot get consensus at home easily, then add these variables and the matter is drastically compounded.

As with most organizations, change and transformation is usually lead by IT, with business input as an after thought. The high and costly failure rate of transformation initiatives are no longer affordable or sustainable, projects taking years to complete across numerous business cycles, disruptions, and business model changes become less beneficial when “complete”. Complete is not a definite state, in my experience, the targets and goals posts are continuously moved by IT and their vendors.

A high percentage of IT consultants and managers are great at creating useless buzzwords that confuse management and create delay while they do nothing. This is usually a disguise and deflection to cover up some level of failure, delays or additional costs.

The pandemic has exposed the cloak and dagger approach that most IT organizations have operated under. The language of integration, collaboration and inclusiveness to enhance that stakeholder experience are only words used by IT to appease the business and appear that they are doing something that will provide value. The reality is IT operates in a siloed environment of self importance, authoritarian and control, forgetting why they exist and who they are there to serve. The customer experience is typically not on their radar, it is about control and dictatorship approach to how the business will operate.

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Prolonged Effects of the Pandemic

As the effects of the pandemic are prolonged and we know how critical remote connectivity and access to information and how critical digital capabilities are across the stakeholder network to enable the remote workforce. From large corporation to SMBs, most organizations are not integrated, and their legacy systems are not kept up to date to support the demands of todays workforce and client interactions.

Typically, projects and or initiatives are approved to resolve a particular issue and the overall impact to the value chain is usually not assessed accurately, the decisions are made with high levels of personal bias, political agenda, and influence. Projects initiated in an environment of siloed and disconnected legacy systems, will undoubtedly have a high rate of failure in not meeting user expectations. Requirements and outcomes are typically done around a solution rather than the need and impact, which in turn adds to the predictable costs escalation, stretched durations and high failure rates.

What we need to consider, as an organization, are we moving to provide anything as a service, if this is true, then our enabling systems, assets and resources must be integrated to seamlessly support the functions and transactions across the value chain and stakeholder experiences.

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