This requires adding an executive sponsor to every initiative during the annual planning cycle, Huston says. This means having a “single wringable neck who is taking accountability for the project,” he says. “If no one is willing to be the sponsor, kill the project,” because it indicates that the rest of the executive team only passively supports the effort.
[ Related: 15 digital transformation questions every CIO must answer ]
There has to be effective leadership — and a commitment from business leaders as well as IT leaders, says World Insurance’s Corrigan. “The business has to understand the scope and agree to timelines, deliverables, and cost. If you’re misaligned on any of those three, it’s going to be pretty difficult to have a successful project.”
That’s because IT will have the wrong deliverables, underfunding — or overfunding — and too much time if there are no deadlines established. “We see so many [projects] fail because we try to do them as cost effectively as possible,” Corrigan says, “but just as many fail when there’s no set timeline and you’re not continually communicating where you’re at with the deliverables and the stakeholders of the business.”
Ineffective communication
It may seem basic by now, but many organizations still do not promote the value of clear communication during digital initiatives.
In some instances, a lack of good communication means the term “Go Live” on a project can often be a poorly defined or subjective condition, says Varughse of Wesco Group. To be successful, clearly defined “Go Live” conditions are pivotal to complete a full transformation cycle, he stresses.
“Create a timeline for post-implementation to define clear conditions at day 1, 30, 60, 90,” Varughse advises. “For example, ‘On Day 1, I can ship product.’ If product cannot be shipped, there is no Go Live. A dashboard of these critical processes, accessible to all teams, removes subjectivity and avoids any risk to the bottom line.”
TransUnion’s Williams points out that often, failures “are a function of trying to do too much, too fast. Stakeholders, leaders, and customers expect quick results proving efforts are worth the investment,” she says. “But initiatives of this size and scope don’t happen overnight.”
This is where communication comes in — it is critically important that senior technology leaders balance stakeholder satisfaction with progress — while ramping up to be organized around delivery, and keeping those stakeholders in the loop, Williams says.
“Teams must understand the benefits of the transformation and receive consistent communication regarding progress and key decisions,” says Kokal. Echoing others, he says that ignoring change management, especially the “What’s in it for me?” factor can also jeopardize the success of the initiative.
No governance framework
Corrigan enumerates all the pitfalls of not having a governance framework: no clearly defined project scope, no requirements, no one designated as responsible for metrics on both sides, no expected timeline, and no transparency into cost.
Having a governance framework when a project is just starting will help IT manage risk and ensure the initiative will solve whatever problem the business is looking to solve, as long as “clear vision, clear responsibility, and clear goals are put out there,” Corrigan says.
Digital projects may also suffer if security is not prioritized and integrated at the outset. Often, there tends to be a focus on the exciting potential of new technologies rather than ensuring a solid security framework. Neglecting this may heighten the likelihood of vulnerabilities surfacing over time.
Not knowing your market
Digital transformations have a short shelf life, Varughse points out.“If an organization is bogged down with over-governance and multiple project approvals, it can hinder their progress in the long run.”
Like Williams, he says it’s important to constantly show improvements to consumers. “If they don’t see regular advancements, they may move on to the next shiny object.”
Today, it’s also crucial that businesses “engage with our younger demographics in a meaningful way, understand their needs, and stay ahead of the curve in terms of trends and preferences,” Varughse says. “We know they are constantly challenging us to come up with the next innovative product, and we simply cannot afford to disappoint them.”
Before starting a digital initiative, watch how your people work, advises PropertySensor’s Wei. “Not how they should work, not how your consultants think they work, but their real daily routines,” he stresses. “The best technology enhances existing behaviors rather than forcing new ones.”
The real estate industry’s resistance to digital transformation isn’t stubbornness, but a survival instinct, he maintains. “In a field where one missed detail can cost millions, people stick with what works. Our successful transformations happened when we respected this reality instead of fighting it,” Wei says. “I believe this perfectly translates into many other industries, not just real estate. Know what you’re digitally transforming before actually attempting it.”
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