Do 70% of digital projects really fail?

If your work could be described as 'digital transformation', then you can't fail to have noticed a statistic that's quoted by just about every blogger, commentator and 'thought leader' in your industry: that "70% of digital transformation projects fail".?

The statistic is usually attributed to a 2018 study by big-name researchers Forbes & McKinsey - although quite a few studies over the years have produced similar results - so it's the perfect reference point for anyone who wants to explain why their approach to complex digital projects is fail-proof.?

Most commentators run with the line that "70% of digital transformation projects fail", which is pretty punchy and attention-grabbing stuff. The problem is that what the research actually reveals is that "70% of digital transformation projects fail to meet their stated goals". It seems like a small difference, but it's potentially very meaningful. The projects surveyed weren't necessarily going hugely over-budget, taking three times longer than expected or failing to see the light of day completely - all the things you might expect to signify 'failure'. They just didn’t deliver the results that people expected. Interesting!?

Objectives come first

So, why might the survey respondents feel that the project didn't meet the stated objectives? The first question to ask is whether the project ever actually had any proper objectives. In my experience a surprising number of major projects don’t, and if they do they are poorly communicated. Think about a big project that you’ve been involved in - if all the stakeholders were asked to state the top three project objectives, would they all give the same answers??

There will be other factors too, but without well-defined and clearly communicated objectives, your chances of meeting the Forbes & McKinsey definition of success is precisely zero, so that's a good place to start. Even a project with flawless delivery and perfect budget control stands a good chance of ending up in the unsuccessful 70% if nobody understands its purpose. In my view, that means nailing down exactly what success looks like and making sure everyone buy into those objectives is the number one way to put your project on the path to success.

If you want to understand what success looks like for your websites or digital products, drop us a line. We can help with benchmarking, building dashboards and creating a strategy that everyone understands. If you want to drive measurable, meaningful, long-term results, it’s a great place to start. ?