According to the International Data Corporation (IDC), worldwide digital transformation investments reached ~$1.8 trillion in 2022! Also, according to McKinsey & Company, the failure rate of transformation projects varies but is estimated to be around 70%.
Keith Kitani published an article on CNBC, in 2020, about how GE, Ford, P&G, and other major players wasted $900 billion (yes, with a B!) on transformation initiatives!
A significant portion of these ‘trillions’ and 'billions' is spent annually on developing data-based decisioning capabilities inside organizations. Obnoxious amounts of money are being spent on gigantic transformation exercises with ROIs that should send shivers down any CFO’s spine, yet they continue to happen!
My co-founder, Regina Hepp, at The Rejuvi Venture, Inc., has a framework that all transformation projects have three elements – ' Process’, ‘Pipes’, and ‘People.’
We have evidence that strongly points to the billions spent on building data-based decisioning capabilities are overwhelmingly focused on the ‘Process’ and ‘Pipes’ elements of these transformation exercises.
‘Process’ and ‘Pipes’ mean improving the quality of data leading to accurate insights and decision-making; un-gating access to data to enable decision-makers to make informed choices; de-siloing data stored in disparate systems for ease of integration; protecting sensitive data from unauthorized access and ensuring privacy, etc., etc.
The results of ignoring the ‘People’ element is why 70% of all transformation projects don't land on budget, time, and scope. This contributes to poor project management, lack of stakeholder buy-in, and organizational resistance to change.
When there is a focus on the ‘People’ element, it is often via tagging on “planning” and “effective communication” workshops, endless “burning platform” and “valley of death” slides, and soul-sucking process/training meetings!
The focus of the ‘People’ element should be to develop a strong leadership muscle holistically. When done so, when there is a focus on this holistic development among the leaders who are leading these transformation projects, the success rate of transformation projects dramatically increases.
Resulting in:
Enhancing understanding of how to utilize data for decision-making effectively,
Running interference in organizational cultures that do not support data-driven decision-making, thus enhancing the adoption and integration of data into decision-making processes, and
Increasing the receptivity to change via fundamental shifts in processes and mindsets that resist change.
We at The Rejuvi Venture, Inc. have done deep work on how to build this holistic leadership muscle such that transformation projects land on budget, time, and scope.
It has been an exciting journey regarding what we are learning.
Learn with us!
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