The most significant factors that lead to a lack of success in transformation programmes revolve around people. In this article, I cover 16 common issues grouped into three categories: The Human Element, Organisational Factors, and Delivery Aspects.
The Human Element
1. Culture
The organization does not have the culture that is required for successful Digital Transformation. Lack of a collaborative environment: "...politics, ego and fear are the main obstacles to achieving the collaboration and solidarity needed within companies to make the changes digital consumers want."
2. Communication
The organisation is heavily siloed, inhibiting cross functional collaboration. There is a lack of systems/tools in place to encourage and enable individuals and teams to work together and share information freely.
3. Skills Gaps
The organisation lacks the necessary digital skills to execute the transformation. This includes technical skills, but also change management, agile delivery, and digital product management capabilities.
4. Fear of Failure
This not only stifles innovation but slows the pace of change execution. Individuals/teams and functions over analyse and spend significant time/effort getting bogged down with (often minor) details for fear of getting these things wrong and the inevitable consequences that follow.
Organisational Factors
5. Scope
Attempting to transform too much at once. Organisations try to "boil the ocean" rather than taking an incremental approach.
6. Failures in Leadership
Leadership teams that are misaligned on strategy, priorities, or approach. This creates confusion and conflicting direction for delivery teams.
7. Matrix Management
Running a Digital Transformation programme in a matrix management structure creates reporting complexity and diffuses accountability.
8. Running Transformation Inside the Business
Running a Digital Transformation from inside your (predominantly) non-digital organisation will not work. The existing culture, processes, and politics will constrain innovation.
9. Parallel Streams
Multiple parallel streams of work do NOT get you to your end goal faster. The cost and complexity of coordination grows non-linearly as streams are added.
Delivery Aspects
10. Heavyweight Governance
Governance processes designed for traditional delivery that suffocate agile transformation efforts.
11. Wrong Team Composition
Young, enthusiastic and ambitious teams alone do not deliver success. Experience, domain knowledge, and the right mix of skills matter.
12. Technology-First Thinking
Starting with technology selection rather than business outcomes leads to solutions looking for problems.
13. Underestimating Complexity
Actual change is never linear. Change exists in a complicated, ever changing, multidimensional environment.
14. Lack of Clear Metrics
Not defining or measuring the right outcomes from the start makes it impossible to know if you're succeeding.
15. Insufficient Investment in Change Management
Technical delivery without adequate focus on people, process, and adoption.
16. Ignoring Technical Debt
Building on unstable foundations that will eventually collapse under the weight of transformation.
$2.3 trillion is wasted every year on failed Digital Transformations
Understanding why is the first step to doing better.
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Previous: Part 1 — The Case For Change
Next: Part 3 — Emerging Better Practice
If you would like to join the discussion or provide feedback on the article above, you can visit the website www.galapagosframework.com or contact me directly at brian@digitalxform.co.uk