10 Most Common Digital Transformation Risks

In today's fast-paced business environment, organisations are constantly seeking ways to enhance efficiency, optimise operations, and improve customer experiences. Contact centre and network transformations have become crucial initiatives for many companies to achieve these objectives.

However, undertaking such projects without the guidance and support of an experienced external project team can expose your business to significant digital transformation risks. In this blog post, we will explore the potential pitfalls of going at it alone and highlight the importance of seeking professional project management expertise.

1. Scope Creep

One of the most common digital transformation risks associated with self-managed projects is scope creep. When the initial objectives and requirements of a project are not clearly defined and controlled, the project can quickly spiral out of control. Scope creep can result in delays, increased costs, and a final product that fails to meet the intended objectives.

We create a Business Requirements Document (BRD) and monitor the project requirements and deliverables to manage scope, raising change requests when required.

2. Missed Deadlines

Proper project management is essential for adhering to timelines and milestones. Without an external project management consultant to oversee and monitor progress, the chances of missed deadlines increase significantly. These delays not only hinder the project's success but also lead to missed opportunities for business improvement.

We develop high-level and low-level project plans to ensure deadlines are met. These are transparent and visible to all stakeholders.

3. Cost Overruns

Managing project expenses is critical to ensure the project stays within its allocated budget. Without the careful monitoring and control that a consultancy like StableLogic can provide of digital transformation risks, the project might exceed budget, impacting the overall business case and return on investment. 

We create and maintain a Cost/Budget Tracker to ensure the project is delivered within the allocated budget. 

4. Skill Gaps

Transformation and modernisation projects require a specialised skillset. The implementation may involve adapting new technologies, tools, solutions and incorporating new ways of working. Additionally, the project may require an analysis of the market and review of the offerings available.

By not engaging a dedicated consultancy like StableLogic, an organisation might lack the necessary foresight to anticipate risks and blockers associated with a highly specialised digital transformation. 

This could lead to suboptimal solutions and ultimately hinder the desired outcomes. Utilising a project management consultancy with the necessary expertise can provide your company with confidence that the project will run efficiently, with minimal risk. 

We provide expert advice on running highly technical projects, sharing our knowledge of the market and previous experience. 

5. Stakeholder Misalignment

Large-scale projects often involve multiple stakeholders with different interests and goals. Without an independent consultancy to facilitate communication and alignment among stakeholders, conflicting priorities may arise, causing unnecessary friction within your company and potentially jeopardising the project's success. 

We facilitate communication between stakeholders, promote collaboration and resolve disputes. 

6. Lack of ownership  

The vast majority of projects do not just impact one department. Instead, they impact multiple departments across the business and, subsequently, many stakeholders. This can cause issues with the RACI (Responsibility, Accountability, Consulted & Informed) as no one person takes accountability or responsibility for the project implementation and success.

Employing an external project management consultancy, like StableLogic, can mitigate this issue. We take full accountability for the project's progress, driving it forward and providing consistent updates to stakeholders on the RACI. 

We take ownership of the project and work as an extension of your team to deliver results for your company.

7. Lack of Stakeholder Communication

In large-scale projects, regular communication with senior stakeholders is essential. However, without an external consultant to organise and hold stakeholder and steering committee meetings, there may be a lack of consistent updates, leading to delayed stage-gate approvals. 

We facilitate communication between project stakeholders by leading scheduled and ad-hoc meetings at agreed intervals agreed with your company. Effective communication leads to efficient project delivery. 

8. Lack of Supplier/3rd Party Management

Transformation project management often involves working with various suppliers and third-party vendors. Managing multiple parties can be time-consuming and pull focus from other work. Without an external consultancy to manage these relationships, stakeholders can become overwhelmed with additional workload, reducing their capacity to effectively drive the project forward. 

We have extensive experience with managing suppliers and third parties, taking that workload from your internal team. 

9. Poor Risk Management

Risks in digital transformation projects can be extremely costly. Without the guidance of an independent project management consultancy, your team might overlook or underestimate critical risks, leading to costly consequences during implementation and delivery.  

Our project management consultants utilise their knowledge, expertise and experience with running similar projects to advise you on potential risks and mitigations you can put in place to reduce impacts. 

10. Missed lessons

Projects completed internally have allocated resources for a set period of time. Beyond this, resources are assigned to other projects or Business As Usual (BAU). Due to this, there is often a desire to close the project as soon as the core project objectives have been achieved, which does not leave time for post-project review or lessons learned to be completed. Post-project analysis is an important aspect of running projects as it can provide valuable information on the success of the project and create a list of recommendations for future projects. Transformation project management can be greatly improved when armed with this knowledge.

StableLogic conduct a post-project review to access the success of the project and identify any lessons learned which can be used towards future projects. 

How can StableLogic support your company? 

Conclusion

In conclusion, while taking on a project independently may seem tempting to cut costs, the potential risks and challenges associated with it cannot be underestimated. Engaging an experienced external consultancy like StableLogic can provide the necessary expertise, communication facilitation, risk management, and supplier oversight that significantly increase the project's chances of success. By mitigating these risks, organisations can ensure a smoother and more efficient transformation journey that ultimately delivers the desired results and maximises return on investment. So, before venturing into such projects, it is crucial to consider the value that a professional project management consultancy can bring to the table.