Recently my respected colleague and friend, Ed Hansen, who is an expert on the subject of transformations, made a LinkedIn post. In it he makes a BOLD statement that “Most transformation efforts fail. By a lot….With a 70-84% failure rate…and it’s not a TECHNOLOGY problem. It’s a PEOPLE problem.” I by and large agree with Ed. Even Transformations that had major technical issues, when you boil it down to the root cause…its because of the people. But that is a broad statement. In my professional opinion, you can usually divide up the “People Problem” into the following 10 reasons:
- Lack of Clear Goals and Objectives
- Insufficient Resources, Planning and Preparation
- Ineffective Communication and Collaboration
- Resistance to Change
- Technical Challenges (See above)
- Lack of Experience
- Treating It as a Project Instead of a Transformation
- Treating It Like a Technology Project
- Failure to Re-engineer
- Poor Governance
Over the coming days, I will go deeper into each one of the topics so stay tuned.
I also encourage you to read Ed’s post, click here.
Found this article interesting? Check out these three related reads for more.
- Trust as the core of true leadership
- Series (10/10): Why core banking transformations often fail – Poor governance
- Measuring the success of a core banking transformation – Evaluating the return on investment and overall impact of the transformation
#CoreBankingTransformation #PeopleChallenges
