Complex Tech Program Leadership Series #5: Spot the early warning signs – Is your digital transformation program in trouble?

In this series, we have been exploring the ins and outs of managing technology transformations. We have highlighted the must-watch signals, and shared key insights on steering complex projects to success. Now, let’s dive into something that’s less glamorous, but still critical: the red flags that indicate a distressed program, and the steps to take to bring it back on track.

Why do so many digital transformations fail?

Digital transformations are notoriously challenging, and the numbers paint a sobering picture. According to Forbes, around 84% of digital transformation projects fall short on delivering meaningful business value, and nearly half fail entirely. Ambitious scopes, hefty investments, and complex tech stacks all contribute to these high failure rates – a trend unlikely to reverse as technology evolves.

How do you spot a distressed program?

Some signs are bold and glaring, while others may be hiding in plain sight. Here are a few key indicators:

1. The dashboard is bleeding red: If performance metrics are in the red consistently, that’s an ominous sign. It’s time for swift corrective action.

2. Green isn’t always good: A “greenwashed” dashboard – where reports seem overly optimistic – can be even more dangerous. Fear of reporting bad news can mask real issues until they are too big to ignore.

3. You’ve seen these risks and issues before: When the same problems keep surfacing, despite supposed mitigation, it’s a sign that real decisions are not being made, or that the challenges are just too large to address. Persistent, unresolved risks are a clear sign of a troubled program.

4. Status reports are vague: Big budgets don’t guarantee accurate reporting. If status updates are unclear, leadership will lack the insight needed to make informed decisions, delaying essential corrective action.

5. People are exhausted: Distressed programs endanger the health of everyone involved, from executives to frontline team members. High attrition, frequent sick leaves, and signs of burnout all suggest that the program is taking a toll.

6. Emotions are running high: Behind every milestone is a team of real people balancing work with life. As pressure mounts, strained work-life balance leads to highly emotional meetings and tense interactions – a clear sign that something is off.

7. Controls are slipping: Overspending, “creative” project plans, and a finance team raising red flags all point to a program slipping out of control. When budget forecasts start to look like fiction, it is time to re-evaluate.

8. People are losing trust: Poor engagement or toxic attitudes signal deep-rooted issues. When stakeholders disengage or show skepticism, it’s a warning of serious alignment problems. Treating digital initiatives solely as IT projects erodes engagement and increases the risk of failure.

Rescuing a distressed digital program

With the right interventions, even a program that’s on the brink can be salvaged. The initial step toward recovery is to identify the warning signs detailed above. But then comes the critical question: Of all the things you could change, which should you tackle first? 

Too often, distressed programs fall into the trap of treating only the symptoms, overlooking the underlying root causes. True recovery requires a deeper analysis – digging beneath the surface to identify what’s truly holding the program back.

For example, a resource shortage might be flagged as an issue, with a suggested fix to hire additional experts. However, after further probing, you might find the real problem – that operational SMEs are being directed to focus on other tasks due to a lack of confidence in the program.

Here’s how to investigate further and turn things around:

1. Hunt the root causes relentlessly: True problems are often buried beneath multiple layers. Take the time to probe deeply, question assumptions, and investigate thoroughly.

2. Use a reliable program assessment framework: For complex programs, you only get one shot at recovery. Leverage a battle-tested assessment framework to methodically uncover the issues and leave no stone unturned.

3. Be mindful of program fatigue: Recognize that the team is likely to be under stress. Use existing documentation wherever possible, target specific issues in meetings, and keep time demands on staff lean and purposeful.

4. Know every stakeholder’s real position: From the board and executives through to partners and internal teams, understanding each person’s true stance is crucial. Misalignment can be a hidden source of trouble.

5. Bring in experienced eyes: Recovery is a complex process, often best guided by experts who’ve “been there, done that”. Their experience can fast-track diagnosis and action.

6. Define clear, achievable actions: Outline practical, prioritized corrective actions and assign each one to a specific owner. Collaborate with stakeholders to ensure alignment and commitment.

7. Act fast and stay visible: Make sure actions are initiated immediately, and track progress closely. Take this accountability and visibility up to a senior level for swift completion.

If you’re an investor, sponsor, or leader feeling the strain of a struggling program, do get in touch. Our team brings the expertise to support you when it truly matters. 

Discover how we revitalized a global ERP transformation for a high-tech energy firm – and look out for our next article on the value an assurance partner brings to complex program delivery.