Large IT projects run 45% > budget; 7% > time; deliver 56% < value than predicted. Why?

According to this McKinsey report for Boards,

“On average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted.”

Yet, another McKinsey report I wrote about yesterday presaged the massive business changes that technology will impart in the next decade. Will all this new technology deliver 56% less value than predicted?

Perhaps the issue with the current situation is that there is not enough focus on insights,  rather than technical efficiency. Or perhaps the technology projects are too focused on the technical gains, and not enough on the organizational change impacts of the projects, impacts that make 80% of change projects fail.

Either way, these stats illustrate a clear ‘over promise, under deliver’ workplace environment. Hopefully, cloud solutions – slick, simple, effortless, API-enabled, social driven by-and-large – will get us most of the way most of the time for very little of the cost; and we can reframe what good looks like for the Boardrooms of tomorrow.

←This Much We Know.→

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