Vision vs. Voices: Steering Business and Digital Change with Stakeholder Insight
Jorge Silveira
CIO/CDO of the Year for Asia Pacific & ANZ | Top50 CIO | Keynote Speaker | Chief Digital Officer
Business transformation, specially when it involves digital transformation is a complex process that reshapes the way organisations function, integrating technology at every level. While consulting stakeholders is vital for success, there's a delicate balance between productive engagement and permitting stakeholders to overly influence or design the system. Here, we discuss the significance of avoiding over-consultation and the dangers of letting stakeholders become system designers, particularly concerning the avoidance of individual bias.
1. Maintaining Strategic Vision
Business and digital transformations necessitates clear and aligned strategic visions. Excessive consultation with stakeholders can lead to a diffusion of this vision, as different stakeholders frequently have divergent interests and viewpoints. If stakeholders are overly involved in process and system design, it might result in a 'design by committee or working group' situation, where the final system is a patchwork of features catering to specific interests rather than a coherent, strategically aligned solution.
Risk Mitigation: Form a governance committee to ensure stakeholder input is in line with the organisation strategic vision. Use a project charter to define and communicate the vision distinctly.
Example: In a banking digital transformation, include representatives from various departments in a supervisory role, ensuring their inputs align with the bank's business and digital strategy.
Adding a leader well-versed in business and digital technologies to the management team is crucial for transformation success. This is because nearly 70% of organisations undergoing digital transformation experience a change in their top teams, commonly by introducing new leaders proficient in digital technologies.
2. Preventing Scope Creep
Excessive stakeholder involvement in design risks 'scope creep' - gradual expansions of project scope beyond its original objectives. Stakeholders might advocate for features or changes that meet their individual needs, but these additions can complicate the system, increase costs, and delay implementation. It's crucial to balance stakeholders' inputs with the project's core objectives to avoid these pitfalls.
Risk Mitigation: Implement strict change management protocols. Clearly define the project scope initially and require formal approval for any changes.
Example: For an e-commerce platform upgrade, set defined features and functionalities at the start. Any additional feature requests must undergo a rigorous evaluation process.
According to Boston Consulting Group (BCG), only 30% of digital transformations meet or exceed their target value, resulting in sustainable change. This underscores the risks associated with scope creep, emphasising the need for a well-defined project scope from the beginning.
3. Avoiding Bias and Subjectivity
A key risk of stakeholder-led design is the introduction of individual biases. Stakeholders might champion features or processes that benefit their department or personal work, rather than what's best for the organisation in its entirety. This subjectivity can lead to an imbalanced system that doesn't adequately serve the broader needs of the organisation or its customers.
Risk Mitigation: Ensure diverse representation in the stakeholder group and use objective criteria for decision-making.
Example: In developing a company-wide intranet, gather input from various departments and levels to mitigate department-specific biases.
It's noteworthy that successful digital transformations often involve redefining individuals’ roles and responsibilities to align with transformation goals. Organisations are 1.5 times more likely to report successful digital transformation when this practice is in place, which helps mitigate bias and subjectivity.
4. Ensuring Technical Feasibility and Integration
Stakeholders, particularly those lacking technical expertise, might not grasp the complexities or limitations of digital systems. By overly influencing design, they could advocate for features that are technically unfeasible or that poorly integrate with existing systems. It's vital to strike a balance between stakeholder input and technical advisability to ensure a viable and effective digital transformation.
Risk Mitigation: Include IT and technical experts in the consultation process to assess technical feasibility and integration issues.
Example: In a manufacturing organisation’s automation project, consistently involve IT experts to ensure new technologies integrate seamlessly with existing systems.
BCG's research suggests that successful digital transformations are more likely when organisations have an integrated strategy with clear transformation goals, including considering the technical feasibility and integration of new systems.
5. Balancing Diverse Needs
Organisations are ecosystems with varied needs and perspectives. Over-reliance on a subset of stakeholders can result in a system that serves the interests of a few at the expense of many. A balanced approach ensures that the system reflects a broader range of needs, promoting inclusivity and wider acceptance across the organisation.
Risk Mitigation: Conduct stakeholder mapping to ensure all relevant groups are represented and their needs are balanced.
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Example: For a multinational corporation’s global communication system, involve stakeholders from different regions to cater to diverse geographical needs.
Organisations with successful transformations are more likely to have made the right investment in digital talent. This investment in diverse and skilled talent contributes to balancing various organisational needs.
6. Maintaining Agility
Digital transformation requires agility and the capacity to rapidly adapt to changing circumstances. Over-consultation can slow down decision-making processes, diminishing the organisation's ability to respond swiftly to market or technological changes. It's important to consult stakeholders efficiently and make timely decisions to maintain momentum in the transformation process.
Risk Mitigation: Adopt agile methodologies and keep stakeholder consultations concise and focused.
Example: Use sprint planning and reviews in software development to incorporate stakeholder feedback rapidly without derailing the project timeline.
An agile governance mindset is crucial for successful digital transformation. This involves swiftly addressing roadblocks, adapting to changes, and embedding an agile culture throughout the organisation.
7. Protecting Against Knowledge Silos
Stakeholders may possess deep knowledge in their specific areas, but this can lead to siloed thinking. If stakeholders are driving system design, there's a risk of creating a system that reflects these silos, rather than encouraging cross-functional collaboration and knowledge sharing, which are essential for a successful digital transformation.
Risk Mitigation: Promote interdepartmental communication and knowledge sharing to prevent siloed thinking.
Example: In a healthcare data integration project, form mixed teams of clinicians, administrators, and IT staff to encourage broad perspectives.
The emphasis on deploying high-calibre talent and positioning the best people in the right roles in successful transformations can help in breaking down knowledge silos. This involves identifying and empowering the most capable resources to drive the transformation program.
8. Encouraging Adoption and Change Management
Successful digital transformation isn't just about technology; it's also about people. If stakeholders feel their voices are heard, but not to the extent that they dictate the system design, they are more likely to support and adopt the new system. Effective change management involves balancing stakeholder input with leadership direction.
Risk Mitigation: Implement training and communication strategies that facilitate stakeholder buy-in and ease the transition.
Example: Provide comprehensive training and ongoing support for a new project management tool to ensure widespread acceptance and usage.
Effective monitoring of progress towards defined outcomes is a critical success factor. Organisations that establish clear metrics and targets around processes and outcomes are more likely to have successful digital transformations.
Conclusion
Stakeholder consultation is undeniably important in digital transformation. However, allowing stakeholders to become system designers can introduce individual biases, lead to scope creep, and dilute the strategic vision. A successful digital transformation requires a careful balance: respecting and incorporating stakeholder input while maintaining clear leadership and direction to ensure that the transformation aligns with organisational goals and is technically sound, inclusive, and agile. This balance is key to achieving a transformative impact that propels the organisation forward in the digital era.
References:
Senior ICT Leader | Digital Health Strategy and Implementation | Digital Transformation | Project Management | Hospital Construction
1 年This is a good read. Highly recommended if you’re involved in digital transformation of any scale.
Driving Business Growth Through Strategic Branding & Marketing for Leaders | Founder & CEO at Markman Media
1 年Great article, Jorge.
Independent Chair at Aged Care Industry Information Technology Council
1 年Thanks Jorge Silveira for a great article on the realities of digital transformation. Health and aged care add some extra complexities, with a broader range of stakeholders than most commercial entities, including government and other regulatory authorities. Nevertheless, starting with a strategic vision and ensuring realistic goals is critical.