INDUSTRY FOCUS

Billions are wasted on failed digital transformation projects

Digital transformation is no longer an option, it’s a must for every organisation that wants to stay relevant and compete in an ever-changing world. Trillions of dollars are being allocated to strategic programs each year but billions are being wasted on failed digital transformation projects.

Strategic programs are crucial for business to adapt, but why do 70% of these programs fail to achieve their goals? In short, it’s due to lack of executive buy-in, wrong execution strategy, poor timing and resistance to change.

To succeed, strategic programs need to deliver business value on time and within budget. In this environment the speed of execution is critical. When unpacking the data and the methodologies used to execute strategic programs, one soon realises the administrative challenges associated with executing these programs.

Many corporates are using Project Portfolio Management (PPM) solutions to track strategic programs. Unfortunately this is insufficient for strategic programs because programs are extremely different to projects.

This cookie-cutter approach creates many problems for program teams and that is why they soon find spreadsheets, slide decks, endless meetings and emails as the biggest challenge when trying to keep the program on track.

Clarity is key when dealing with complexity. Although useful, PPM solutions are not designed to solve the complexities of program delivery. The side effect is fragmented information and a lot of manual effort to stay on top of all these moving parts.

Admin versus strategic execution

Ironically, apps that are supposed to help productivity usually result in huge inefficiencies because valuable time is wasted organising work around tools instead of productivity tools helping to organise work. Each tool adds more noise and complexity, reducing productivity and efficiency.

There are so many violations of common sense in programs today. The amount of time and effort that is spent on producing throw-away reports is ludicrous. Even more concerning, more than 50% of time is spent in meetings, where meeting effectiveness is perceived to be only around 50% effective.

By FlowState CEO Mark Kayser