5 Reasons Software Implementations Fail, and what to do about it.
Terms like Big Data, Industry 4.0 and Artificial Intelligence have dominated technology news and social media feeds for years now. And with that in mind, it’s important to remember that downstream of every ground-breaking technological change, are a whole series of industries and companies that have to adapt to, and implement the opportunities that these amazing technologies bring.
In the ever-evolving world of technology, software implementations are crucial for businesses seeking to stay competitive and relevant. In my 10 years working with software implementations, I’ve learned, frustratingly, that they don’t always end positively. With that in mind, here are some of the most common reasons for failure that I’ve observed, and some ideas of how to prevent, and counteract them during technology projects.
1. Lack of Preparation and Detailed Scoping
The Problem:
The phrase "fail to prepare, prepare to fail" holds particularly true in software implementation. Many businesses, especially smaller ones, prematurely rush into vendor selection, purchasing licenses and product configuration. Underestimating the importance of detailed scoping, understanding current processes, budgeting, and allocating the right resources almost always leads to a lack of control later on in the project.
The difficulty here is that this is often borne out of good intentions, as businesses and teams can be excited to deliver the benefits of the new tools.
The Solution:
Effective scoping shouldn’t just be limited to finding out what you want the new tool to do. Comprehensive planning, which should include engaging with stakeholders at all levels, conducting a thorough analysis (and documentation) of current processes, and understanding how these will change post-implementation, will yield positive results further into the project.
Realistic budgeting and appropriate resource allocation are also vital. If the project is being resourced internally due to specialist knowledge, try to draft a resourcing plan detailing when, and for how long those people need to be involved in the project. Most importantly, if you can’t backfill the roles, consider outsourcing an element of the work with contractors or a specialised consultancy.
When it comes to budgeting, try to work to a best and worst case budget, and if possible itemise it by the deliverables you’ve outlined in your requirements gathering exercise. That way, if you need to change the scope due to budgetary or timing issues, you can knowingly choose which features are at risk.
Finally, it’s essential to strike a balance. Plans should be flexible, yet robust enough to guide the project to success. Having a well defined relationship with an experienced project/programme manager should help you to find this balance.
2. Extreme Management Styles - Micromanagement vs. Neglect
The Problem:
The success of a project often hinges on management style, from leadership/executive sponsors to project managers and workstream leads on larger programmes. One risk, particularly on smaller projects is micromanagement, which can stifle creativity and prevent individual contributors from doing their best work. From experience this is the most common pitfall in small businesses, where the leadership team (or sole owner) is used to having direct involvement in all of the major business activities.
At the other extreme is neglect, which can lead to a lack of direction and a sense of undervaluation among team members. Again, finding the right balance is challenging but crucial.
The Solution:
A combination of trust, honestly and clearly defined roles & responsibilities (during planning) helps to alleviate worry further up the chain. Establishing regular project meetings and having the project manager issue reports containing a summary of the RAID log (risks, actions, issues, decisions) ensure that people are aware of issues when they need to be. The PRINCE2 methodology advises making use of a communication management plan, which defines what should happen when a problem arises.
From the perspective of the project managers, workstream leads and technical staff, holding back or ‘sugarcoating’ bad news can lead to costly errors, and most importantly a lack of trust in the project team. Bad news in particular should be given quickly, and directly, but not alone. Always come with a proposed solution.
As a leader, particularly in an owner managed business, it’s important to consider if you’re the right person to lead a technology project, and if not, consider developing a relationship with someone you can trust, who has the knowledge and skills to deliver on your vision.
3. Scope Creep
The Problem:
In my opinion, this is almost always a result of rushed, or uninformed planning. Scope creep, a term dreaded in project management, refers to the gradual expansion of a project's objectives and deliverables, often without appropriate adjustments to time, budget, or resources.
There’s a reason trains come to a stop before we try to board them. Scope creep can derail projects by causing delays, inflating costs, and leading to resource strain. A study by the Project Management Institute (PMI) found that 52% of projects experience scope creep, highlighting its prevalence as a significant issue in project management.
The Solution:
To combat scope creep, it's essential to have a well-defined project scope from the outset. This includes clear objectives, deliverables, and boundaries. In plain English, your planning activities, and project plan need to define and map out exactly what, how and when you aim to deliver, and what is budgeted to achieve this. If there is a significant change to any of these factors (the what, how, when and how much), this needs to be communicated properly, and the plan may need to change.
Leadership and executive sponsors have to accept that changes to the scope will more than likely impact the budget or timelines. The same has to be said for members of the project team. Although frustrating, we have to accept that sometimes amazing opportunities only present themselves during the project, as business leadership and users become more aware of the potential of new tools.
Regular communication with stakeholders and the project team is vital to ensure everyone understands and adheres to the project's scope. Documentation is key, as maintaining thorough records of all agreed-upon project details and any changes can help keep scope creep in check.
4. Change Fatigue
The Problem:
Change fatigue occurs when an organisation undergoes continuous change, leading to a decline in employee engagement and productivity. It stems from a sense of overwhelming due to frequent, often poorly managed changes, and can significantly impact the success of software implementation projects. A particular personal occurence in smaller businesses is expecting staff to continue to perform their day to day tasks in addition to extra project responsibilities.
Overlooking the impact of the project workload on staff can lead to burnout and reduced productivity. There is often a fine line between challenging the team and overburdening them.
The Solution:
Business leaders and owners should recognise that it’s unrealistic for everyone to always share their appetite for change, and further to this, that employees don’t always feel comfortable speaking their mind for fear of being seen as unambitious, or resistant to change.
To prevent change fatigue, it's crucial to manage the pace and volume of change. This involves strategic planning of implementation phases, ensuring adequate time for adaptation between changes. Transparent communication is key: employees should be well informed about the reasons for change, its benefits, and how it impacts their roles. Leaders should also actively seek and address feedback, creating a participatory environment where employees feel valued and heard.
With new software, consider investing in Support staff and Systems Administrators, to provide ongoing training and support after the new tool is up and running.
When it comes to resource management & capacity planning, consider secondments or backfilling certain roles with contractors. This approach allows for the management of workload effectively, ensuring that staff members are not overextended. It’s important to focus on backfilling roles that require less specialised knowledge of the business, and employing contractors for positions where their specialist skills will be most valuable.
Lastly, choose project evangelists from the teams experiencing the change, who are not only enthusiastic, but deeply understand the project's goals and challenges. This ensures that optimistic messages are conveyed throughout the organisation.
5. Timing
The Problem:
Is your business cyclical in nature? How often do these cycles occur? Do currency fluctuations impact your cash flow or profitability? Implementing new software during peak business periods, or without considering other external factors, can lead to de-prioritisation of project workload in favour of more pressing issues. In terms of the impact of your project, this represents a reduction of available resource, which slows progress. Worse still, projects that are delayed for extended periods can begin to stutter, which leads to a loss of momentum, and sometimes a loss of understanding of the initial goals of the project.
The Solution:
Plan the implementation in accordance with the company’s business cycle and when the staff can best adapt to changes. Ideally, a business would have some form of consultation with the staff most likely to be impacted by the change, and let them see their opinions impact the planning process. Consider hiring additional staff for the short term to deal with the extra capacity required to deliver a project during a challenging time, or consider making a financial provision ahead of time to deal with the impact of reduced trading, or short term changes to cash flow.
If the risks can’t be mitigated with additional investment of cost and resource, it may be better to avoid these times altogether. This may involve a phased rollout rather than a 'big bang' approach, depending on the company's nature and the tasks involved.
Finally, communicating the technology roadmap early and tailoring messages to different roles can help prepare staff for upcoming changes. Ultimately people respond better to change when they have a clear understanding of what it means for them. Of course, there has to be an element of inspiration and positivity to overcome the inevitable difficulties of a software implementation, but don’t gloss over the fact that change can be difficult, and it requires effort.
Conclusion
Successful software implementation is more than just a technical exercise. It requires careful planning, balanced management, effective communication, mindful workload distribution, and considerations on timing. By understanding these key areas and actively working to address them, businesses can significantly increase their chances of a successful software implementation. Remember, each company, each project, and each person is unique, and there's no one-size-fits-all approach. Tailor these strategies to fit your specific context and needs.