Organisations across every sector and of every size have been subject to dramatic and rapid change. Rising costs and competitive pressures have put the focus on finding the value trapped inside inefficient processes, complex systems and sub-par user and customer experiences.

Research by McKinsey found that more than two-thirds of transformation projects fail. And that failure is not just measured by the sunk cost of the projects. It’s realised in lost opportunity, the emergence of new competitors, and rivals that leapfrog ahead. 

The reasons for those failures have been catalogued and analysed by many experts, with misalignment between project and business goals a key cause. Coupled with the temptation to take on new technologies before a clear business case or benefit is established, and shaky governance, it’s clear the problems are rarely because of the technology. We believe the importance of soft skills is often underestimated in transformation projects.

Soft skills go underestimated 

The real business value of technology comes from and through people. Implementing the technology correctly is only one part of the equation as users and customers need to be considered from the outset. The days of technologists arriving with a solution and simply implementing it are behind us. Successful transformation is, fundamentally, a people-centric activity.

This people-first approach was key to a recent transformation project with a well-known luxury goods retailer. The company wanted to give its customers an easy way to recycle old, unwanted products. Following extensive market and competitor research, we worked with the client to design and deliver a new digital service that enables customers to easily obtain a quote for their items. The platform was deployed in stages, allowing the business to see value along the way. By using low-code/no-code tools and an agile methodology, the project helped the client move towards its ESG and corporate social responsibility goals.

Today, demonstrate value quickly

Organisations have changed their expectations when it comes to technology projects. The need to demonstrate value quickly has driven a shift towards a “think big, act small” philosophy. Large projects with multi-year payback are being replaced by phased implementations and prototyping to test assumptions, with value being delivered almost immediately.

Boards are also becoming more engaged. With cybersecurity now a top-level issue, directors are demanding more visibility into transformation projects, with particular focus on understanding what data is being used and how it is being secured.

Transformation driven by the quest to access data more effectively

Businesses are now demanding increased value from their investment in people. The quest to liberate latent value inside their processes and systems has become a key driver for transformation. For example, many organisations are recognising that the data they hold has significant value. Learning how to surface that value and selecting the right tools to extract it are now front and centre.

It used to be said that no-one was ever fired for hiring a large, global partner. But that is changing. Businesses are increasingly looking for partners that take the time to understand their organisation and work alongside them through the transformation journey, maximising the value they already have inside the business.

Success in transformation projects also depends on engaging a diverse cross-section of stakeholders. Involving marketers, HR, finance, customers and other key groups puts the user and customer experience at the front of the project, with technology becoming the enabler rather than the inhibitor. By listening to as many voices as practicable, transformation leaders can maximise the opportunity to succeed.

Digital competency lifted by shift to remote work

The shift to remote and hybrid work – which Microsoft CEO Satya Nadella famously said shoehorned three years of transformation into three months – has also lifted digital competency across the workforce. People are generally more adept at using technology today than they were just a few years ago. That capability can be leveraged, provided change managers and transformation leaders continue to listen to stakeholders and design solutions with a people-first approach.

Monolithic system deployments that take a technology-first approach have gone the way of the dinosaurs – too big and too slow to adapt to a changing environment. Successful transformation projects take a people-centric approach. While a long-term strategy is important, outcomes are delivered in stages. This can only work when the entire project team collaborates with stakeholders to achieve a common goal: unlocking the latent value trapped inside the business.