Budget, Culture, and Strategy Identified as Significant Barriers to Success
So what challenges to achieving transformation success did this report uncover? Across the spectrum of organization representatives surveyed, three major problem areas proved to be significant roadblocks. The first is budget constraints. 38% of all executives said that a tight budget is the primary reason why transformation efforts have fallen short of the organization’s goals. This is expected – providing the necessary resources, tools, and trainings helps ensure that transformation projects can be seen through. Although organizational finances can be especially tight in times of uncertainty, putting funding behind the effort emphasizes its priority.
The second major barrier lies within company culture. 38% of executives overall said that the primary reason transformation efforts haven’t met company goals is due to an organizational culture that doesn’t easily adapt to changing business conditions. Another fifth of respondents said that their company’s culture doesn’t foster innovation.
Many business companies have experienced these cultural roadblocks first-hand — enterprise-wide transformation efforts are often met with resistance from people in the business who are hesitant to change the way they work. For these transformation efforts to grow roots throughout the company, employee concerns about these changes need to be addressed so the shift to an innovation-mindset can occur.
The final barriers can be summed up as shortcomings in strategy associated with implementing transformation. 34% of survey respondents attributed the discrepancy between transformation results and their organization’s goals for the project to a lack of cohesive enterprise-wide strategy from executives.
Meanwhile, this lack of clear direction with these enterprise-wide efforts causes additional friction in implementing transformation across the business – more than 20% of respondents said their organization’s transformation efforts are too large and complex to enable iterative modernization of processes and quick wins on a smaller scale. So not only does lack of cohesion of high-level strategy hold the business back from transforming, but it hinders change from occurring in individual teams and workgroups. This sentiment is supported by the fact that over 25% of executives said that essential business workflows can’t fully support transformation goals.