Tuesday, March 27, 2018

Reasons of failure

The three critical success factors in any organization are people, processes and technology. Business transformation aligns these three factors closely with the new environment for business growth in short term and long term horizon. This article explains what is Business Transformation.
Business transformation is not (or does not have to be):
  • outsourcing
  • downsizing
  • change re-labelled
  • expensive
  • only managed by consultancy firms
  • limited to IT projects 

Reasons of failure of Business Transformation projects 

More than 70% of transformation programs fail to deliver their actual targets.1 The major reasons are 
  • Unclear view and misunderstanding of the business’s vision
  • Vague understanding of the organizational structure
  • Trying to apply the same transformation solutions to diverse business needs
  • Simply reorganizing organizational resources rather than achieving true transformation
  • Failure to understand existing process flows and their objectives
  • Failure to prioritize the factors that need to be transformed
  • Overestimating the goals of transformation in the excitement of making change
  • Communication problems
  • Failure to observe the necessary management discipline in different departments
  • Failure to set specific, measurable, attainable, realistic, and timely (SMART) goals for transformation 

Economist Intelligence Unit’s Managing change successfully survey , which was conducted in March 2008 clearly states that money is not the problem for Business transformation, but clear Business Transformation Strategy and it’s execution is the problem. 


  1. www.microagility.com/docs/bt.pdf
  2. ‘A change for the better Steps for successful business transformation’ A report from the Economist Intelligence Unit