Successfully bringing about worthwhile change, irrespective of the size and extent, is often extremely difficult. In fact, some research suggests over 80% of business transformations fail.
Change is imperative: whether driven by market forces, the state of the economy, government legislation and direction, newly available technology, or the need for growth, no organisation can stand still.
There are many causes of failing to achieve the expected outcome from a change plan. The bigger the change, the more problems that can occur.
The common causes of failure can be grouped into four categories: failing to define strategic objectives properly, failing to relate actions to those objectives, failure to deliver projects satisfactorily, and failure to manage the people issue. Even a single project should relate to a strategic objective, even if that objective is simply survival or to stay within legal obligations. The following diagram illustrates the stages of a major transformation; at each step, things can begin to go wrong. The diagram illustrates the descending connection from Strategic Objective to Implementation. Each lower level must be clearly and directly related to achieving the objectives of the higher level: for example, no projects should exist that are not part of a programme, which is part of an action plan which is designed to deliver a strategic objective.
What should be done?
Firstly, the people and processes are the framework within which all change planning has to take place. Without the right people being available, adequately involved and concerned, supported by processes for change (as opposed to processes for business as normal), no transformation can be carried out effectively, if at all. There is no point in developing a strategic objective that can never be delivered. For example, if the objective requires skills the organisation does not have in its work force and cannot easily acquire, or will require things outside its workforce's job descriptions, or believes that it has the power to bring about change merely by demanding it, failure beckons.Strategic Objectives should be clear, unambiguous, agreed, achievable and of course resourced. If different people have different understandings of what an objective means, it will never be accomplished. Each objective should be expressed succinctly, and be defined wherever possible with measures, so that everyone can see how it has been met. Vague or unmeasurable wishes are not realisable objectives.
Whilst imposing objectives from on high can sometimes work, better results occur if everyone affected is committed and understands what the objectives actually are and why they matter. This requires communication and explanation to obtain agreement.
Objectives
Each Objective must be capable of being delivered. There is little point in aiming for things than cannot be achieved in the timescale, or at all. Over ambition, objectives that depend on factors outside the organisation’s control, and objectives that far exceed previous achievements are unlikely to succeed. Times and milestones should be realistic, and recognise dependencies properly.
Adequate resources must be made available: finance as required, appropriate skills and expertise, and enough time and people. There is little point in willing the end without also willing the means.
Each Objective must have clearly defined, evaluated and quantified benefits to be realised by achieving the Objective: what is the point of doing anything if there is no clear benefit from it?
Action Plans
Each Action Plan should be clearly connected to one or more strategic objectives. Some research suggests that about 40% of action plans are not related to any objective at all. Creating effective and deliverable plans is not easy, but failing to do so is the commonest cause of failing to achieve the objectives. Comprehensive planning is critical. There should be a comprehensive and comprehensible definition of the benefits expected from the Action plan, that directly come from the Strategic Objective definition.
Programmes
Each Programme should be designed to deliver one or more action plans, and be connected and achievable. Ideally, each programme should be organised around related objectives and activities, and consist of projects that can be planned and delivered. There should always be a clear end state that a programme should deliver.
Projects
Every Project should be defined and capable of delivery. The business needs and requirements should be enabled by Information Technology and the Internet where appropriate. Each person involved in each project should understand their role in the work and the project development process. Extensive planning is essential, and should be connected to the overall programme plans where relevant.
People
All change and every step are dependent on People: those who are carrying out the change, and most importantly, those affected by it. Every change ultimately depends on all the people involved not only understanding and accepting the change, but being enabled by appropriate process and tools to deliver. Many change programmes ultimately fail because the needs and views of the people at the end of the line: those facing the customer, making the product or delivering the service, were not properly considered, and processes not redesigned as needed.
Change is essential and unavoidable. It involves effort, and risks. To achieve the benefits change must be properly planned, designed and executed: there are no short cuts.
Some ideas that can help
Planning:
Inadequate initial planning of actions, programmes, projects, can often doom an entire change plan from the start. Whilst the desire to start and get some quick wins is reasonable enough, planning comprehensively from the start is imperative. And plans must be kept up to date - regularly revised in the light of new circumstances, and as each part is delivered.
Monitoring:
the need for effective monitoring of progress throughout is essential. And monitoring does not mean just creating or receiving reports, it means taking action and making decisions. If progress is not maintained as planned, the reasons should be found, the effects identified and corrective action taken - as soon as possible.
Communicating:
Failure to communicate with key stakeholders - regularly, comprehensively, clearly - will inevitably lead to problems. No-one will feel involved, or become committed, if they don’t know what is happening. This also means listening as well as telling!
Structure:
The application of structured methodologies, such as Prince2 for projects and MSP (Managing Successful Programmes) at the very least will provide checklists and some ideas of best practice. They are not an answer, but they are a guide, and because they are well established, many people will already know them. They also help everyone involved understand their roles and what is expected of them.
Benefits:
Throughout the entire change and transformation exercise, the benefits must be managed, and individual, named people made responsible and accountable for realising them. Losing sight of the benefits is the commonest cause of ultimate change failure: even if the changes have been implemented on time and to budget, if the benefits are not realised the whole exercise was pointless. As a quick reality check, every benefit defined as part of a project plan should also appear as a benefit of the programme, the action plan, and the strategic objectives. If it does not, there may be a problem, although sometimes there are subsidiary benefits from aspects of a project that are not part of its purpose or justification. The reverse is imperative: every strategic objective benefit must appear in at least one project as well.
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