Organizations continue to invest in large technology-enabled business transformation initiatives to capitalize on new business opportunities and increase performance. However, quite often companies underperform and are unable to realize the value they strive to achieve.
To succeed, it is imperative that companies define business objectives, establish firm governance structures, and modify their organizational culture to support value throughout the entire technology lifecycle. We recognize three stages of every project that require focus to realize business value:
- Insight: This includes assessing gaps between strategic capabilities and current performance, defining governance approach, providing relevant insight into primary drivers of cost, measuring change and assessing overall program risks and potential mitigation strategies.
- Transform: Building business benefits into each project phase is a critical success factor. This can be achieved by establishing a Value Management Office that is chartered to ensure the activities are aligned with business objectives.
- Evolve: Organizations must apply an integrated blend of industry knowledge, leading practices and deep application and platform knowledge to lead design efforts that retain and reflect value DNA and lead to the realization of value.
Committing to embedding value into all aspects of transformation initiatives will increase the likelihood of realizing expected benefits because it establishes the management discipline to keep the focus on the original rationale for the initiatives – the value. Transformation teams must embrace this principle to succeed, both during the transformation project and the ongoing lifetime of the operation.