Digital transformation, IT is business, Practical examples

Why do digital transformation initiatives fail?

September 21, 2018

I’ve been looking more and more for reasons why Digital Transformations fail. Here I’m talking specifically about the steps regarding launching products straight related to experience. Many of the articles are too abstract saying that it’s lack of culture. The culture is hard to change, etc. Some of them are about lack of empowerment, but again it turns to culture.

After reading many of them (some of the most important listed below), I came to this conclusion: it’s lack of will. I’ll explain. Before everything, the articles:

 

They say it’s culture

The most present thing is always related to people. Culture, engagement, communication, expectations clarity, etc. I couldn’t find a single mention saying that the project wouldn’t reach the expected ROI.

Beyond the results that consumers can see, some of big companies’ moves went through internal automation and changes. The great challenge in these scenarios have been to IT and business areas capacities together. If one of the areas had the knowledge of both, they would be only one. This is Digital Transformation.

Clearly the suggestion here is to put them to work together. One cannot live without the other. But the main thing is to remove the competition between them. Now that IT saw that it can add value to business just like the product areas, a competition started. The shortest way to put an end to that: have a single manager. A CPO and a CTO working together, with different responsibilities but with the same results expectations, is a good match.

It’s an internal change

Ford is having issues to real engage with Digital platforms. Tesla is not. What’s the difference?

The will is one step before putting hands to work. When we are talking about the involved teams, the will is the output of contextualization and engagement processes. Leaders that didn’t buy the sponsors idea, won’t be able to pass it on. They won’t engage their teams properly.

Then many things may come to leaders and employees minds when acting in a new initiative. It’s all new for them. They don’t know what will come. Maybe nobody is sure about that yet:

  • Leaders and employees: afraid of what’s new. I know some companies that chill when they hear about agile development. They are afraid of that since the 90’s. Even after watching more and more successful benchmarks, it’s never enough for a real change;
  • Product areas: and that goes all around the company. The product areas don’t know the IT and fear their guys;
  • Operational areas: the operational areas, if aren’t properly engaged, will sabotage everything they see. Sometimes it isn’t even rational;
  • The board: the directors are afraid of doing a new investment that won’t bring the expected ROI, and for many times will decide to keep the organic growth instead of doing something that can be exponential;
So why it is lack of will and not lack of culture?

The will is base for culture. If the leaders are not convinced of going Digital, they won’t do anything. But I’ve already seen some people well convinced that this is the future, and even after that, they won’t make a thing. But if the needed leaders are well convinced, and willing to change, they will be able to change their own culture and their team’s culture to achieve what they are looking for.

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