The success rate of business transformations is low, according to different studies (for example: McKinsey – 27% of transformation projects succeed). There are different success factors (and factors, when not addressed seriously, will cause failures), but what is the most important factor that contributes to the success? In my opinion, it is People. Let me explain why.
In all the work we have performed at The Independables (program & project management, integration activities), it all comes down to basic project management skills. Independent of the project management approach (Prince2, Agile, PMBOK, SAFe), it is the translation of the technical and functional knowledge into action. It is the cultural and situational awareness of the organisation. It is the initial planning and flexibility to adjust to the situation. Likewise, it is the creation of diverse teams that bring out the best in each other. All aspects related to the behaviour of people.
Having the right people on board to manage business transformations is key to a successful implementation. But how do you know if you have the right people on board? Should your team members have many years of experience? Should they all come from within your organisation? Do they need to work on the transformation besides their operational tasks within the organisation? Let me try to answer these questions.
From experience, we can tell that a mixture of senior project team members with more juniors members is a good fit. Seniority translates into knowledge and expertise, quality and speed. Junior members have a pair of fresh eyes, look from their perspective differently at problems, and can come up with surprising solutions. This also helps to bring juniors up to speed within an organisation if they can learn from shadowing seniors and have their challenging tasks and responsibilities within the project.
Preferably, most of the project members should be internal staff. They know the business, the process, whom to go to and are willing to take the extra mile if a nice promotion is in store for them. For specific roles, based on expertise/ specialism, external staff can be hired. For example, the Program or Project Manager can be external, to challenge plans, chase people, and relentless chase the goals of the project without being hindered too much by political issues or other internal struggles.
A successful business transformation requires full focus from all involved. Internal staff should be 100% focused on the tasks at hand and not being bothered by operational issues. Operations distract, changes the focus and is a major source for distracting from project tasks. Line management will increase the operational workload of project members as soon as they find out that focus can easily be changed. When possible, make sure the project resources have a dedicated focus and work to achieve the project goals and help realise the synergies.
Business transformations is people business. Businesses change due to the fact people change. Change because of new process implemented and adhered to, by people. Change because of new technology solutions tailored to support people in their day-to-day routines. People need to convince and influence people, in meetings, presentations, coffee corner chats, training sessions, discussions. Bringing along the organisation (people) takes time and is done by people.
Without people, no business, no transformation needed. Without the right people, business transformation have an increased risk of failure, of not achieving the expected outcomes and synergies as planned. With the skilled people to staff projects, the success rate increases a lot. Having the skilled people on board is still no guarantee for success, but it increases the likelihood of achieving the results as planned.
If you want to discuss which people you require in your business transformation journey, please get in contact. Happy to share our thoughts, ideas, and expertise. People helping people.
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