Why IT change projects commonly fail

Why do IT Change projects commonly fail?

As organisations evolve over time so do their IT requirements – as a result of changing needs, as well as rapid ongoing developments within the digital world. Nowhere is this more evident than the rapid adoption of cloud-based SaaS solutions which have rapidly become the norm versus on-premise systems.

As a result, successful digital/IT change projects increasingly emerge as a critical component of success. ?These projects are meant to improve business processes, enhance customer experience, and create efficiencies that can drive growth and profitability. However, despite their crucial importance, IT change projects often fail.

Why is this, and what steps can be taken to reduce the risk of failure and maximise success?

Two Primary Considerations

1.???? The Continuum of Expectation

It can be easy to fall into the trap that the implementation of digital transformation or IT projects can be measured in a binary manner – ‘success’, or ‘failure’. But this is an over-simplification that rarely characterises the outcome of an initiative.

Rather than seeing a digital transformation initiative through the binary lens of success/failure, it is much more realistic and helpful to take the view that the initial delivery of any digital transformation initiative will fall somewhere on a continuum of expectation.

It is rare for any IT initiative to fully meet all of the expectations of the stakeholders – similarly it is rare for none of these expectations to be met.

The subjective nature of the expected outcomes for various stakeholder groups, realities of evolving requirements as the project progresses plus technical, business and budgetary limitations all conspire to create a less than perfect set of success criteria.

A mature and balanced assessment of the initial implementation of a digital transformation initiative will acknowledge the ambiguity of the outcome and rather than expressing it as ‘success v failure’, articulating the outcome relative to expectations.

2.???? Iterative Implementation

Few (if any) significant digital transformation initiatives are expected to be delivered as a complete, ‘turn-key’ solution. In reality, most initiatives are delivered in a series of releases that incrementally build towards the optimal desired outcome. This approach is realistic, expected, and reasonable.

Yet in many cases this reality is overlooked when the initial releases of a project does not live up to the expectations of some stakeholders.

This common situation can be managed by a consistent communication approach relating to expectations … i.e. ensuring that stakeholders understand that the initial deployment/release of an initiative will only partially satisfy optimal expectations, and subsequent developments and releases will move closer to the optimal position.

All the while communicating the message that the optimal outcome is likely to evolve over time, as well as being somewhat subjective based on a variety of stakeholder assumptions and expectations.

?

Key Success/Failure Measures

Based on the above points, the following are the key reasons IT change management projects fail to deliver an optimal outeome:

1.???? Executive Sponsorship

One of the primary reasons IT change projects fail to reach full potential is a lack of effective executive sponsorship. When senior management is not fully invested in the project, it becomes challenging to secure the necessary funding, resources, and support. Without strong leadership and clear communication of project goals and objectives, it's easy for the project to become mired in bureaucracy and politics, leading to delays and ultimately failure.

2.???? Planning and Project Management

Another common reason IT change projects fail is due to poor planning and project management. Projects that are poorly scoped, planned, and executed can result in cost overruns, missed deadlines, and a failure to deliver expected outcomes. Effective project management requires strong leadership, clear communication, and a well-defined process that is flexible enough to adapt to changing circumstances.

3.???? Communication

Change Management communication is perhaps the most under-rated and misunderstood key success factor.

Respectfully informing and engaging key stakeholders (which include all staff) in a forthright and honest manner is an imperative as well as a hurdle may organisations stumble over.

Failure to acknowledge the specific requirements of change management communications or to adequately resource and empower this function is likely to end in tears.

Complex organisations who decide change management communications should form part of the typical and routine ‘corporate communications’ function of ‘feel-good’ internal and social media functions and are almost certain to be inadequate to the specific demands of change management communications.

Similarly, organisations who erroneously believe project managers responsible for implementing IT projects are also adept in the communication space are simply na?ve.?

4.???? Resistance to Change

Resistance to change is a significant challenge in IT change projects. Employees who are resistant to change may not be willing to learn new systems, technologies, or processes. Additionally, they may not understand the benefits of the change or feel that they are being left behind. Overcoming resistance to change requires effective communication, training, and support. Employees must understand why the change is necessary, what the benefits are, and how the new systems and processes will improve their work.

Communication and engagement are critical, and without these at an appropriate level the project will fall short of its optimal outcome.

5.???? Technical Challenges

IT change projects often involve complex technical challenges that can lead to delays or failures. Technical issues can arise due to a lack of knowledge or experience, insufficient testing, or inadequate infrastructure. To mitigate these challenges, project teams must ensure that they have the necessary technical expertise and resources to address any issues that may arise.

Establishing the expectations is critical, and this is the realm of the communications function. Failing to adequately allow for the key communication task is asking for failure.?

6.???? Insufficient Testing

Insufficient testing is another common reason IT change projects fail. When changes are implemented without adequate testing, it can result in significant issues such as system failures or data loss. To avoid these problems, project teams must conduct thorough testing and ensure that all systems and processes are working correctly before the change is implemented.

IIT change projects (in common with any other change management initiatives) are complex and challenging, and they require effective planning, strong leadership, a commitment to change, and a dedicated, specialist change management communication function.

By understanding the principal reasons for IT change project failures and addressing them proactively, project teams can increase their chances of success. With careful planning, effective communication, and a willingness to adapt, companies can realize the benefits of IT change projects and drive growth and profitability.

?