Hr Library
Trending

The $900 billion reason GE, Ford and P&G failed at digital transformation

Two-thirds of businesses recognize their company must digitize by 2020 in order to stay competitive. GE, Ford and other major players poured $1.3 trillion into transformation initiatives, 70% of which — or $900 billion —was wasted on failed programs. The biggest reason: failure to effectively communicate their goals, strategy, purpose and outlook with their employees.

Source | www.cnbc.com | Keith Kitani

Digital transformation is more than a buzzword for modern businesses—it’s a necessity for remaining viable as the future of work becomes increasingly mobile, agile and global. In fact, two-thirds of businesses recognize their company must digitize by 2020, in order to stay competitive.

Despite its critical importance, a surprising number of transformation efforts are failing, even at some of the world’s most profitable, innovative organizations. Last year alone, companies poured $1.3 trillion into transformation initiatives — 70% of which was wasted on failed programs at companies like GE, Ford and Procter & Gamble. Among those that didn’t fail outright, only 16% saw improvements in their performance and ability to sustain change over the long haul. Even for digital-first industries like high-tech, media and telecom, only 26% saw success.

Much has been written dissecting the reasons for digital transformation failure — most experts have settled on people/employees, organizational culture and leadership as weak links. But few acknowledge the real common thread: communication breakdown.

The truth is, people aren’t the problem; it’s the organization’s failure to communicate effectively with its people that sets them up for digital transformation trouble from the start.

Click here to read the full article

Source
www.cnbc.com
Show More

Related Articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button