Challenge 1: Misalignment between planned outcomes and strategic objectives:
Even for companies that begin with a robust process, specific objectives and planned outcomes, these outcomes and strategic objectives can fall out of alignment. Often, this is because of a change in strategy or external events that lessen leadership focus and support over the full project term.
Challenge 2: Failure to define and measure promised benefits:
While companies undertake transformational change to deliver value or achieve a specific objective, management often fails to accurately scope and quantify the expected value or objectives to be delivered. Key performance indicators are often not adequately defined or set in generic, immeasurable terms. Sometimes management also fails to monitor and track performance.
Challenge 3: Lack of genuine leadership buy-in and resistance to change:
The importance of “tone at the top” cannot be underestimated—it is essential to change behaviour. Many companies fail to obtain buy-in from key constituents or institute the right degree of change management to drive it.
Challenge 4: Failure to understand the complex nature of the business process change:
Weak initial estimates of the scale and nature of business process change and limited understanding of legacy technology environments can lead to significant time and cost overruns. This can cause the return on investment to change, bringing the future or success of the transformational change into question.
Challenge 5: Lack of involvement from business with the project team working in a “skunkwork” facility:
At the end of the day, all transformation is focused on enhancing the business. However, without a cohesive approach across the business, large scale innovation efforts or IT transformations tend to fail.
Challenge 6: Changing from the traditional to an agile approach requires careful thinking:
As more and more organisations opt for the benefits of an agile approach, they must be mindful of the other changes needed to make this a success – including culture shifts, discipline, continuous integration and a high degree of transparency for a fully dedicated team.