Technology transformation programmes are the new normal in many organisations. Deepak Madan explores the challenges of successful implementation, and offers guidance on how to maximise performance and mitigate risk.
In today's rapidly-evolving business landscape, technology transformation programmes have become more commonplace and can help businesses stay competitive. These often come with significant risks, particularly in system implementation and navigating agile delivery. Their complexities can lead to delayed projects, time-intensive activities and budget overspend.
It’s crucial to trust your implementation, and mitigate risks proactively and efficiently, to ensure successful project delivery.
Risks for technology transformation programmes today
The switch to agile
As agile project delivery is now commonplace for technology-enabled and organisational change projects, assurance requirements are changing where old methods no longer suffice.
Agile, however, means different things to different organisations. The standard structure is one of sprints, scrums, and adopting a test-as-you-go approach. At the other end of the spectrum, you'll find work streams delivering into a small central governance team who set guiding principles and objectives. Despite variations in delivery, we've seen agile become the standard for the majority of technology and organisational change programmes in the past year.
Learn about pros and cons of agile versus waterfall approaches, with real-life examples.
System implementation risks
Our recent survey – where we asked 200 large corporate GFCs and 300 CFOs about their usage, attitude, perceptions and confidence in digital, data and technology – found that their major risks and challenges as:
- the risks of implementing new systems
- a lack of available internal resources to drive forward system investment
- whether their current system capabilities are being, or can be, used to their full potential
- difficulties in aligning stakeholders around competing investment priorities
- poor internal track record in delivering technology or change programmes to time or budget
- not sure where to start or how to sequence activity
- lack of a defined business case for investment.
While effective system implementation is clearly on the agenda, it needs to be done correctly with risks mitigated to give confidence and trust that it's done right. This subsequently can bring in huge benefits financially and strategically.
The most prolific transformation we observe is when implementing Finance and HR systems. This is typically as part of a finance systems transformation programme involving an upgrade to something such as SAP S/4Hana or MS Dynamics, or a HR platform such as Workday, or other payroll system replacement projects.
Where do you see system implementation pitfalls?
How to budget for maximum performance
Budget benchmarking for assurance in terms of percentage of overall project spend will fluctuate depending on the project size. As a result, there’s no one-size-fits-all answer. Allocated spend will vary based on the type of project, but there’s a common approach on when to think about budgeting to achieve more effective and efficient assurance and mitigate constraints occurring down the line.
Investing in strengthening the capabilities of the second line can result in a more proactive identification and mitigation of risks, preventing potential issues from escalating. Investing in risk assessment tools, and ongoing training further strengthens the second line. Meanwhile, investing in the third line with subject matter expert auditors and leading audit technologies ensures comprehensive and unbiased assurance, offering invaluable insights for continuous improvement.
The optimal approach involves a balanced strategy where both lines are adequately resourced to fulfil their distinct yet complementary roles. However, we are seeing more investment happening with the second line. The overall balance not only enhances the overall assurance framework but also fosters a culture of accountability and continuous improvement across the transformation programme.
When should assurance budgeting be allocated?
A tried-and-tested methodology is key to follow – where the scope is tailored to your needs – whether it focuses on one activity or a whole project life cycle. Elevating this methodology to your entire organisation instead of just on one-off projects and functions helps maximise the benefits and lessons learned, tracking the issues for value-add.
Successfully implementing a transformation programme to achieve your business goals requires strategies that not only address current risks, but also anticipate and prepare for future developments in the landscape.
