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Why Financial Transformation Projects Fail

(And What You Can Do To Make Yours A Success)

Financial TransformationThe primary objective of any financial transformation project is to achieve process improvements by increasing the quality, effectiveness and efficiency of financial information, ultimately enhancing shareholder value. The challenge with financial transformation, however, isn’t why you would do it, but how you do it.

While all projects being with the intent of success, often times many unanticipated problems occur, resulting in a failure to fulfill the promise of the project. An interesting point worth noting is that it is rarely due to the technology that you purchase. Research from Gartner shows that less than 1% of projects fail solely because of the technology that has been put in place. So what are the main reasons that these projects fail? To make things more digestible, we have split the potential pitfalls into three categories:

  • Scope
    • No strategy
    • Lack of defined phasing
    • Unrealistic budget and time frames
    • Improper defined project scope
  • People
    • Lack of resource and focus
    • Lack of executive support and involvement from subject matter experts
    • Failure to re-evaluate objectives post implementation and in the future
    • Improper use of external parties
    • Lack of training
  • Communication 
    • Lack of communication plan
    • Lack of stakeholder involvement
    • Project compliance

To find out more details around these financial transformation pitfalls, and what you can do to help prevent them, please click on the banner below to download the relating eBook.Common Finance Transformation Implementation Pitfalls

Written by: Ed Brandvik