Change Management Challenges In IT Projects

I've trained 600+ project managers over the last 3 years. From budding teams in start-ups to large-scale projects in multinational corporations. Hre are 9 challenges and recommendations frequently shared. 1) Scope Creep Management It's daunting when project deliverables keep changing. Without clear boundaries and pushback, projects will derail. Highly recommend reading "Scope and Requirements Management" and "Effective PM and BA Role Collaboration" to solidify your scope management strategies. 2) Time Management Effective PMs understand that every minute counts. Design an “Ideal Project Week” and schedule critical tasks. Risk assessment? Schedule it. Stakeholder meeting? Schedule it. Documentation review? Schedule it. 3) Stakeholder Engagement Project Managers need to skillfully manage stakeholder expectations. Instead of just updating on progress, send out agendas ahead of stakeholder meetings. Focus on critical discussion points, and be prepared to address the top concerns. 4) Resource Allocation It's tempting to bring in the best talents, but ensure they align with the project's current needs. Don’t bring in a high-level consultant when you need hands-on expertise on the ground. 5) Driving Team Accountability Inconsistent team updates and feedback loops can hurt a project's momentum. As the PM authority, establish regular checkpoints. Embrace the mantra: “Consistency is the heartbeat of projects.” 6) Clear Project Objectives If stakeholders or team members can't quickly summarize the project's goal and outcomes, there’s a clarity issue. Consider methodologies like SMART goals to crystallize your objectives. 7) Handling Conflicts Project disputes, if not addressed promptly, can escalate and impact delivery. Address conflicts head-on. Familiarize yourself with techniques from "Crucial Conversations" for effective resolution. 8) Budgeting Managing finances is critical. A well-told narrative about your project’s ROI and value proposition is invaluable. Understand your budget's narrative, including how resources are allocated, potential ROI, and long-term project benefits. This narrative informs future budgeting decisions. 9) Project Strategy Many project managers grapple with succinctly defining their approach. A clearly articulated strategy not only provides direction but aids in stakeholder buy-in. I highly recommend diving into the "Project Management Body of Knowledge (PMBOK)" to sharpen your strategic skills. How do you prioritize and balance stakeholder engagement with ensuring timely project delivery, especially when faced with conflicting interests?

🚨 𝟏𝟓𝟎 𝐌𝐢𝐥𝐥𝐢𝐨𝐧 𝐄𝐑𝐏 𝐃𝐢𝐬𝐚𝐬𝐭𝐞𝐫 𝐢𝐧 𝐭𝐡𝐞 𝐌𝐚𝐤𝐢𝐧𝐠? 🚨 Imagine spending $150 million on an ERP implementation—only to watch it spiral into delays, cost overruns, and inefficiency. That’s exactly what I believe is happening with the UK Government’s Matrix ERP Project, and in my latest article, I break down why this project may be in serious trouble. 🔎 𝗧𝗵𝗲 𝗣𝗿𝗼𝗯𝗹𝗲𝗺: The UK government is attempting to consolidate 9 major agencies + 20 arms-length agencies onto a single Workday ERP system. The goals? Standardization, cost savings, and efficiency. But the reality? Massive red flags. ❌ 𝘞𝘩𝘺 𝘵𝘩𝘪𝘴 𝘗𝘳𝘰𝘫𝘦𝘤𝘵 𝘪𝘴 𝘋𝘰𝘰𝘮𝘦𝘥: 𝐂𝐨𝐦𝐩𝐥𝐞𝐱 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐞𝐧𝐭𝐢𝐭𝐢𝐞𝐬 resist change and have unique regulatory needs. 𝐀 "𝐎𝐧𝐞-𝐒𝐢𝐳𝐞-𝐅𝐢𝐭𝐬-𝐀𝐥𝐥" 𝐬𝐲𝐬𝐭𝐞𝐦 across such diverse agencies is unrealistic. 𝐃𝐚𝐭𝐚 𝐌𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐧𝐢𝐠𝐡𝐭𝐦𝐚𝐫𝐞 from 15+ legacy systems. 𝐋𝐚𝐜𝐤 𝐨𝐟 𝐄𝐱𝐞𝐜𝐮𝐭𝐢𝐯𝐞 𝐚𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭 will stall decision-making. 𝐔𝐧𝐫𝐞𝐚𝐥𝐢𝐬𝐭𝐢𝐜 𝐭𝐢𝐦𝐞𝐥𝐢𝐧𝐞𝐬 & 𝐛𝐮𝐝𝐠𝐞𝐭𝐬 mean this project will likely exceed its 5-7 year goal. ⚡ 𝐇𝐨𝐰 𝐓𝐨 𝐀𝐯𝐨𝐢𝐝 𝐅𝐚𝐢𝐥𝐮𝐫𝐞 (𝐋𝐞𝐬𝐬𝐨𝐧𝐬 𝐅𝐨𝐫 𝐀𝐍𝐘 𝐄𝐑𝐏 𝐏𝐫𝐨𝐣𝐞𝐜𝐭): ✅ 𝐄𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡 𝐚 𝐬𝐭𝐫𝐨𝐧𝐠 𝐠𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐦𝐨𝐝𝐞𝐥—who has final decision-making power? ✅ 𝐏𝐡𝐚𝐬𝐞 𝐭𝐡𝐞 𝐢𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧—start with a pilot before full rollout. ✅ 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐳𝐞 𝐝𝐚𝐭𝐚 𝐦𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐞𝐚𝐫𝐥𝐲—clean data before go-live. ✅ 𝐃𝐨 𝐧𝐨𝐭 𝐮𝐧𝐝𝐞𝐫𝐞𝐬𝐭𝐢𝐦𝐚𝐭𝐞 𝐜𝐡𝐚𝐧𝐠𝐞 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭—your biggest risk is people, not tech. 📖 Read my full analysis below. 💬 Have you seen large-scale ERP projects like this struggle? What’s your #1 lesson for success? Let’s discuss in the comments. 👇 #ERP #DigitalTransformation #ChangeManagement #EnterpriseTechnology #ProjectFailure #LessonsLearned #Leadership #GovernmentTech

These days I’m sure grateful for the Change Management work I did as a student at Harvard. The data is sobering. 👉 MIT’s NANDA study: 95% of generative AI pilots fail to move into production. 👉 McKinsey: 70% of initiatives remain stuck in development or expansion after a year. 👉 Abandonment: 17% of projects in 2024 → 42% in 2025. 👉 Scaling success: only 5–10% of companies ever get there. The technology is not the problem. The people, processes, and organizational structures are. That’s where John Kotter’s 8 Steps for Leading Change still feel urgent today. AI isn’t just a tool you stack on top of existing workflows. It requires rewiring how companies operate. Yet most organizations continue to treat AI adoption like a software upgrade rather than a deep transformation. ↳ Create Urgency → Leaders assume urgency is obvious. It’s not. AI must be framed with data and stories that make stakes clear: competitors will use efficiency to outscale you. ↳ Build a Guiding Coalition → Pilots run by IT alone fail. Cross-functional coalitions with visible champions succeed. ↳ Form a Strategic Vision → Saying “we’re investing in AI” is not a vision. Linking it to growth, efficiency, and innovation is. ↳ Remove Barriers → Resistance is natural. Job fears are real. Change management has to dismantle these barriers directly. ↳ Generate Short-Term Wins → Early ROI in back-office functions builds trust and momentum. Without visible wins, resistance hardens. ↳ Institute Change → AI sticks when embedded in hiring, training, incentives, and culture. Startups don’t wrestle with this. They scale with AI by avoiding new hires and redesigning work as they go. Large companies face the harder task: unlearning, rewiring, and rebuilding. The lesson from Kotter and from the data is the same: Transformation is not about the technology. It’s about change leadership. If we want AI to succeed inside large companies, we have to stop asking: ❌ “How do we scale the model?” ✅ “How do we scale trust, adoption, and organizational learning?” Three actions to drive forward now: ✅ Use data and stories to prove urgency at every level. ✅ Create early ROI wins and broadcast them widely. ✅ Embed AI into culture, not just IT, through hiring, training, and incentives. Do. Fail. Learn. Grow. Win. Repeat. Forever. ♻️Repost & follow John Brewton for content that helps. 📬 Subscribe to Operating by John Brewton for deep dives on the history and future of operating companies (🔗 in profile).

𝗚𝗲𝗿𝗺𝗮𝗻 𝗦𝘂𝗽𝗲𝗿𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗵𝗮𝗶𝗻 𝗟𝗶𝗱𝗹 𝗷𝘂𝘀𝘁 𝘄𝗿𝗼𝘁𝗲 𝗼𝗳𝗳 €𝟱𝟬𝟬 𝗠𝗜𝗟𝗟𝗜𝗢𝗡 𝗼𝗻 𝗮 𝗳𝗮𝗶𝗹𝗲𝗱 𝗦𝗔𝗣 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻. Seven years. 1,000 employees. Hundreds of consultants. Zero ROI. The German retail giant had to scrap their entire eLWIS project and revert to legacy systems. What went catastrophically wrong? ➤ Refused to adapt processes to SAP standards (insisted on purchase price vs retail price inventory valuation) ➤ Massive over-customization that broke system integrity ➤ Executive turnover killed project continuity (CEO + Head of IT both left mid-project) ➤ Inadequate change management despite massive investment The kicker? SAP awarded Lidl a "best customer" prize in April 2017... then Lidl killed the project 15 months later. 𝗛𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗯𝗿𝘂𝘁𝗮𝗹 𝗿𝗲𝗮𝗹𝗶𝘁𝘆: 𝟱𝟱-𝟳𝟱% 𝗼𝗳 𝗘𝗥𝗣 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗮𝗶𝗹. 𝗧𝗵𝗲 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝘂𝘀𝘂𝗮𝗹𝗹𝘆 𝘄𝗼𝗿𝗸𝘀 𝗳𝗶𝗻𝗲. 𝗧𝗵𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝘀 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗶𝗻𝗴 𝗶𝘁? 𝗡𝗼𝘁 𝘀𝗼 𝗺𝘂𝗰𝗵. 𝗞𝗲𝘆 𝗹𝗲𝘀𝘀𝗼𝗻𝘀 𝗳𝗼𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗹𝗲𝗮𝗱𝗲𝗿𝘀: ✅ Set hard budget escalation limits (50%, 100%, 150% triggers) ✅ Limit customization to TRUE competitive differentiators ✅ Ensure leadership stability during multi-year projects ✅ Change management isn't optional - it's survival ERP success isn't about buying the best software. It's about executing the best transformation strategy. #ERP #DigitalTransformation #CFO #ProjectManagement #SAP Key lessons for finance leaders:  Set hard budget escalation limits (50%, 100%, 150% triggers)  Limit customization to TRUE competitive differentiators  Ensure leadership stability during multi-year projects  Change management isn't optional - it's survival ERP success isn't about buying the best software. It's about executing the best transformation strategy. What's the most expensive implementation mistake you've witnessed? #ERP #DigitalTransformation #CFO #ProjectManagement #SAP

I have had the pleasure of working on many IT modernization efforts. Mostly in a clean-up-the-mess role. Sadly, many modernization efforts fail. Here are some of the reasons I have found: 1. Lack of Clear Vision and Objectives: If there’s no well-defined goal or a clear vision for the project, it becomes difficult to prioritize tasks and measure success. 2. Inadequate Planning and Strategy: Failing to thoroughly plan the steps needed to modernize can cause delays, confusion, and mismanagement. Insufficient risk assessments, underestimation of costs, and lack of proper scheduling can derail the project from the start. 3. Resistance to Change: Employees and stakeholders may resist adopting new systems, technologies, or processes. This resistance can stem from fear of the unknown, concerns about job displacement, or simply a reluctance to leave familiar methods behind. Resistance can slow down or even completely halt progress. 4. Underestimating the Complexity: Modernization often involves implementing new technologies, processes, and systems, all of which can be more complex than initially anticipated. When the scope and technical requirements are underestimated, it leads to missed deadlines, budget overruns, or incomplete projects. 5. Inadequate Budget or Resource Allocation: Many modernization projects are not properly funded or resourced. If the project runs out of money or lacks the necessary talent or tools, it can lead to incomplete execution, poor-quality outcomes, or failure to meet goals. 6. Lack of Stakeholder Engagement: Without the involvement of key stakeholders throughout the process, their needs and concerns may be overlooked. This can lead to a mismatch between the project’s outcomes and the actual needs of the users or the business. 7. Overreliance on Technology: Sometimes projects focus too heavily on the technical aspect and forget the human factor. The belief that simply installing new technology or systems will automatically lead to success neglects the importance of training, change management, and human adaptation to the new tools. 8. Failure to Manage Risks: Modernization projects often involve change and uncertainty. Failure to identify, assess, and mitigate risks (technical, financial, operational) can expose the project to unforeseen challenges that derail progress. 9. Inadequate Post-Implementation Support: Once a modernization project is completed, ongoing maintenance, training, and support are critical for long-term success. Without these measures, even well-executed projects can falter as users struggle to adapt or problems arise after implementation. 10. Lack of Flexibility: The inability to adapt to changing circumstances or feedback can result in a rigid approach that doesn’t address evolving needs or unexpected issues that arise during the process. Let me know how Service Management Leadership can help deliver your modernization initiatives.