I wrote an article for the Journal of Business Forecasting a few years ago about dangerous habits that lead to software abandonment. Since then I have reflected on the behaviors I’ve witnessed over my career and considered the stories others have told me about their journeys in change management. From this, I have developed some insights on why many find it hard to attempt digital transformations (or supply chain, planning or any other transformation) and succeed.
Transformations are challenging and are often loaded with what feels like more struggles than wins. When it’s done well, business processes benefit and our teams flourish. Unfortunately, most of us struggle or flat out fail in our transformation initiatives. So, here are some observations on why transformations are so challenging and suggestions on how to improve our chances of success. We will concentrate on new tools or software but the observations apply to most kinds of transformation.
Digital transformation is a series of large changes on a mass scale
First, intentionally doing a digital transformation by design is a change. It is not a minor change; it’s a series of large changes on a mass scale. Most people welcomes changes in others but are less enthusiastic when change is required of themselves. In fact, they are often resistant to change and complain even about minor changes. My father has been known to say “I hate change” about something as trivial as upgrading his cell phone. Why then do we wonder why digital transformations are so hard, especially when we know so many do not like change?
While not all changes will be met with resistance, many—if not most—will. Just because we see value and in the proposed changes, we can’t assume that everyone else has the same understanding or expectation. One thing I have noticed in transformations that struggle or fail is a lack of properly set expectations and a failure to educate users.
Success Comes When Teams Know What We’re Doing & Why
We should educate users on why we need to change, not just on the mechanics of the change. Project education isn’t just a line item or a project statement. Rather than being a separate component, education should be a routine part that starts at the beginning of the project. Success comes when our teams understand what we are doing, why we are doing it and, most importantly, how it will benefit them.
This kind of education isn’t communicated within a formal classroom structure, but in the everyday conversations you have with users of the final solution. If your conversations during the transformation are limited to a core group of ‘superusers’ that excludes all end users, you may already be set up to fail.
Assign a Change Champion
A common theme of failed transformation projects is the lack of a change agent or a change champion. The change champion should not be a consultant or leader from another team or from a separate part of the organization. While it’s important to have the right implementation partner, they are not the change champions either.
Instead, change champions are team members who facilitate the transformation. They should be respected individuals from among the users who will embrace the change, share excitement for the new software and be able to demonstrate the new solution. Change champions listen to users and communicate requirements or bridge the gaps for the team. They should have the ability to convince other employees to use the new tools.
Change champions listen to users and communicate requirements for the team
It’s very difficult to have a successful transformation journey without a change agent or change champion. If you’re struggling with launching a transformation project, you may be missing this critical team member.
One organization I worked with had attempted to implement new planning software on three or four different occasions but ultimately failed at various points in the journey. They had a lead for the project and yet struggled. It wasn’t that this person wasn’t influential or a good leader, however, in this case, there was one Planner with equal clout that was incredibly resistant to any software change and prevented the launch of the new tool.
On the next attempt to implement advanced planning software, we knew we had to do some things differently to succeed. We added a new change champion, expanded the project strategy to include a business intelligence solution, and included process change to supplement the planning software. While the same user put up a roadblock and refused to use the new tool, we were still able to successfully launch by creating a strategy that supported the business and allowed the organization to launch the tool while working around the resistant user.
Build Process Maps
Another cause of transformation failure is the lack of understanding of the current state compared to the desired future state. Especially in an implementation that involves new software, part of the change involves moving to a new tool with enhanced capabilities.
When we fail to understand the differences between our current process flow and our to-be process flow, it is incredibly difficult to create a transformation roadmap that will lead to the desired to-be state. One of the most basic elements is to have process maps defined for both the current state and the desired future state.
A basic element is a process map for the desired future state
Process maps provide clear visibility into what must be implemented immediately and what can wait for a future enhancement. Digital transformation success is dependent on having a clearly defined future state process. Without it, the tool isn’t likely to be configured to support the desired future state. The journey may be made of one giant leap or many mid-size changes and mini launches.
Don’t Allow New Tools To Be Used For Old Ways of Working
Finally, I think most of us understand the importance of not using the design of the current tool for the new tool. However, the reality is that many teams fall into this trap. This is probably my biggest pet peeve when joining new teams who are at the end of a digital transformation or have just completed one.
This always creates issues, including some that will felt for many years to come. In such cases, the new tool is being forced to behave in ways it wasn’t designed to work. This results in a tool that is clumsy, slow and ultimately doesn’t support the desired to-be process or future growth. Despite good intentions, this can really derail long-term business success.
Encourage users to describe the behaviors they want to see
Often this comes about as users want to be sure to get their favorite functionality in the new tool so it works just like the tool they currently use. Be wary of having to implement functionality just because it exists a certain way in the current tool.
Instead, encourage users to describe the behaviors they want to see and how they’d like to view those results. Then, compare that need to how the new tool is designed to work and implement accordingly. In my opinion, combining this strategy with process maps improves chances for a successful transformation.
In Summary
I haven’t yet found the key to secrets to make transformation projects easy or guarantee success. However, I have observed some common themes in transformations that struggle or fail outright. The biggest opportunity common to all of them was the need for a change champion with a clear vision of the destination and who can generate excitement for the project.
Having a change champion doesn’t lessen the importance of educating users—ideally, the change champion also leads user education. Change champions are also the experts that need to understand and be able to communicate process maps for the current state and to-be states. The best change champions also make a conscious effort to avoid imposing old tool designs and processes onto new tools, identify strategies to transition between current and future states, and become the enabler for change. Failing at any or all of these can result in user resistance, inefficient workflows, hindered growth and even stalled or failed projects.
This article first appeared in the summer 2024 issue of the Journal of Business Forecasting. To get the Journal delivered to your door every quarter, become an IBF member. Member benefits include discounted entry to all IBF training events and conferences, access to the entire IBF knowledge library, and exclusive members workshops.
