“Implementing the new IT system was much less than half the story; Grosvenor demonstrated the extent to which we needed to change the business to exploit its capabilities fully to deliver real value.”
Even with a clear strategic vision, enterprises can underestimate the programme of change needed to achieve strategic goals. Often it is assumed that existing personnel can continue to undertake their normal work and, in addition, bring about those business changes - and then they wonder why the strategic objectives are not achieved. Business transformation requires extra resources and so additional investments in change.
Underestimating the cost of change
In order for business value to be created, not only do there need to be new capabilities but those who will be making use of those capabilities are likely to have to change the way they work. Too little thought is given to what the enterprise’s stakeholders will need to do to take advantage of these changes (such as employees becoming more collaborative by adopting social media or customers making on-line transactions). Often this involves personnel learning completely new jobs and unlearning old ways of working. It might take them weeks and months before they become proficient. The total costs of business change therefore come as an unwelcome surprise, often wiping out the expected benefits. To get a better understanding of how Grosvenor’s Value Management can help ensure precious resources are used to generate real business value for the enterprise, simply download our targeted paper on Business Change appropriate to your sector.