IT transformations usually take place at the interface between business and IT. For those involved, they are often associated with innovations and are organized in medium-sized to large projects. In addition to the technical complexity, the organizational complexity with many different players also plays a major role. Consistent project management is therefore crucial for the success of IT transformations. Project management focuses on planning, organizing, steering and controlling the projects. In order to complete transformation projects successfully, the aspects of time, money, personnel and materials must be perfectly coordinated.
However, numerous studies and practical experience show that IT transformations fail to achieve their intended goals to a considerable extent (overdrawn budget, exceeded deadlines, etc.). This can be clearly demonstrated by figures (source: The Standish Group, Chaos Report 2020):
Only 31% of all IT transformations are fully successful: the project is completed on time, on budget and in quality.
50% of IT projects have limited success: the project is completed with a functional result, but the set time frame or budget is exceeded or the desired quality is not achieved.
19% of all IT projects fail completely: The project is terminated prematurely without achieving the set project goals.
The reasons for this sobering result are rarely to be found in the IT systems, which cannot be transformed. The clear majority of projects fail, among other things, due to a lack of communication and resources in the organizations (see graphic), because for the business in particular, IT transformations often run in addition to day-to-day business. Moreover, there is often little knowledge and experience with project management tools in the companies.
Source: Project management blog
In order for IT transformation projects to be successfully executed and completed, several key factors play a crucial role in project management. The most important elements can be summarized as follows:
Formulate a clear target vision
The target vision serves as a framework and a reference point, sets the right focus for the course of the project and reduces complexity. It links the project to corporate goals and provides an initial demarcation from the project’s non-goals.
Secure executive support
An IT transformation will only be successful if it is sponsored by top management and supported by middle management.
Split the project into smaller sub-projects
This approach reduces complexity, provides an easier overview, creates a clear structure and offers orientation. In day-to-day project work, those involved can refer precisely to individual sub-projects and work packages. This reduces the risk of misunderstandings and creates transparency.
Do not underestimate the “soft factors”
IT projects fail mainly because of the “soft factors” while the influence of the “hard factors” is still overestimated in practice. In fact, communication is the most important key success factor in projects. In addition, transparency, commitment, and professional handling of risks, uncertainties, and tensions are indispensable to successful project management.
Creating the necessary framework conditions
The behavior of executives and customers in the project environment has a significant impact on success. It is the task of management to create the necessary framework conditions for successful project management. This includes, for example, a clear IT strategy, unambiguous roles, sufficient resources, common rules of the game and best practices for the accompanying project management during IT transformation (approach, methods, analyses, tools, etc.).
Focusing exclusively on technology falls short when it comes to IT transformation. Projects are characterized by professional organization of the sequence, early identification of stakeholder interests and risks, and efficient management of the interaction between the participants. The decisive factor in any project is the people. Project management involves them in the best possible way and leads the IT transformation to success.