3 reasons why business growth transformation projects fail?
Posted on October 10, 2017 by Emer O'Donnell
We’ve all been there. The CEO stands up, presents his vision of the future. He outlines the great and detailed plan the senior team has been working on for weeks. There’s usually drinks. Everyone is on a high. Then next morning everyone goes back to the day job. Nothing changes and that great plan (which cost $$$ in consultant’s fees to develop) is consigned to the shelf behind the CEO’s desk. So why? Why do business growth transformation projects fail?
This list is unlikely to be exhaustive but here’s our top 3 reasons why business growth plans fail – and some suggestions as to how you can avoid them.
1. Lack of understanding of the financial assumptions underlying the plan
Without doubt your Business Growth Transformation plan has a set of financial assumptions underlying it. Too often we see fancy financial models, but no clear set of assumptions. Be clear on the assumptions underlying the finances. The list should be short, clear and everyone on the management team should be able to recite them. Be explicit. And then ensure that whatever KPIs the team are working to are aligned to those assumptions.
2. Lack of team capability to execute
A solid growth transformation plan should include an org chart. There needs to be an honest conversation about the teams’ capability to execute. It’s likely that new skills will need to be developed or acquired. Don’t shy away from these conversations – be honest, your plan depends on it.
3. Lack of leadership
This is possibly one of the most common. Without strong leadership people will revert to doing what they have always done. Without change, well the results are predictable. So once the plan is agreed, exercise strong leadership to ensure execution. Be relentless. If new metrics have been agreed obsess about them. Review the plan weekly. Keep the team on track.
