Why companies fail at executing change?
Why companies fail at executing change?
And what you can do about it….
Yes, it’s harsh but the data doesn’t lie. More than 80% of projects don’t deliver. That’s a terrible statistic.
Think about how many money businesses spend on projects & the projects don’t deliver….hmmm if only something could be done.
There are 5 main reasons companies fail at making change, through major projects:
1. No executive sponsorship
2. Insufficient budget
3. Change resistant culture
4. Only using internal resources, who have a day job
5. The business case doesn’t explain the why in a way that people buy in to the change
So, for a bit more detail on the 5 reasons that companies fail to make change, through major projects:
No executive sponsorship
If you don’t have Executive Sponsorship, you are doomed. When money gets cut, and projects get reprioritised your project will be removed or cut first up. If change is required from the change, you will need Executive approval to drive the change through, if you don’t have it you are doomed.
So what….
You should have an Executive Sponsor, but also 2-3 other influential Executive Sponsors that can help you navigate the politics of getting things done and ensure they have your back when shit hits the fan.
Insufficient Budget
You know the budget processes where everyone bids and they give everyone their projects but just cut the top off the 20% of all projects, so no projects are funded correctly. Without the right level of funding you need to cut corners and what you started as the plan is now in the toilet and you are making things up to hit all the metrics to ensure that the project is not cut further.
So what…..
Fight for your budget. Have a detailed budget prepared and if they cut it show them what they are not going to get and the financial implications so you have an ROI story. If they still don’t give it to you, adjust your business case for the new funding to ensure that you adjust people’s expectations on what will be delivered.
Change Resistant Culture
Have you ever worked in a company, where the company just couldn’t do change, it wasn’t that they didn’t want to, but they didn’t. They were paralysed. They had tried so many times and failed that they were all cynical about making change that when a new person came in they convinced them that they wouldn’t be able to change either, and not to bother. And so the cycle of a change resistant culture is bred. It’s really sad. It’s possible to make change, but you will need to make people uncomfortable and if you have change resistant HR you will likely get yourself into all sorts of trouble.
So what…..
But for people like me I see this as a challenge and opportunity to show people change can be done. However, for the normal person, this is incredibly sad and depressing and really does making change and successfully implemented projects hard, if not impossible. You’ll find the PMO in these organisations is full of people that are stopping people from actually delivering on anything as well. My only solution is they need Collin Ellis – he can actually help organisations with the culture change.
Internal Resources – who have a day job
Internal resources are great! Actually, a combination of internal and external resources is a great mix for any successful project but need to take internal people off their day job to implement the project and backfill them. Find strong leaders, change leaders and SME’s and put them on the project, and backfill them and give them a budget to hire some other people to support. But empower them. I kinda of answered the so what about on this one.
The Business Case doesn’t explain the Why
Do you know why you are making the change? Have you articulated to the people that need to buy in? Does it make sense? Have you communicated it, and then communicated it and then again? You need to be clear on the why and everyone else needs too, so when people get fed up, they remember why they are doing this project.
At Whiteark we love to work with businesses to help them deliver exceptional projects, that deliver results and financial outcomes. We get our hands dirty to implement with your teams. We will force the hard conversations, will challenge the team to think bigger, will make people a tad uncomfortable – but will make the project be successful.
Our approach and team are tailored to what you need, so reach out and have a conversation if you have a project you want to be successful or you need help on a project that needs to be restored or project portfolio reprioritised and reviewed
Reach out for a no obligation chat to Jo Hands on 0459826221, or jo.hands@whiteark.com.au
Article by Jo Hands, Whiteark Founder
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