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Avoiding Common Risks in Global Rollouts
Implementing a global template alone will not ensure the success of a multinational digital transformation project. Explore the most common risks we see in global projects and key success factors for overcoming these challenges.
Leveraging a global template is essential for reducing risks and costs in multinational digital transformation projects. With a variety of technological, sociopolitical, and economic factors impacting the business landscape, it’s more important than ever for global businesses to become agile, data-driven, and harmonized. At HSO International, our decades of experience have taught us that a global template is an essential ingredient to success for global rollouts.
However, implementing a global template is not the only element required for success. In this article, we will explore the most common challenges and risks we see across our clients’ global template implementations. We’ll also highlight key success factors that can contribute to a successful (on-time, in-budget) rollout. By anticipating these challenges and adopting effective strategies to overcome them, your global organization can navigate the complexities of global rollouts and achieve your digital transformation goals.
Challenges and risks of a global template approach
Implementing a global template approach comes with its own set of challenges and risks. With our decades of experience in multinational digital transformation projects, we've identified the most important and common risks to avoid.
1. Simultaneous mandate structure changes
Trying to use the digital transformation project to change the mandate structure of your organization (typically from decentralized autonomous business units to a more centralized corporate structure) is never recommended. With the new organizational structure imposed (close to) the same time as the digital transformation, individuals are more likely to resist the new system. Attempting to achieve two goals (organizational change and digital transformation) at the same time introduces significant risks and the potential for increasing budgets.
2. Local solution acceptance
A go-live is not the end of a digital transformation project, but rather a new beginning. Without a proper strategy and buy-in from users across the business, the solution might not be accepted. We have even (frequently) seen users find ways to avoid using the new system/processes, which contrasts the goal of global harmonization.
3. Duplicating legacy systems into the new platform
It can be tempting to try to re-create legacy systems in a new system, but this method often leads to a lot of expensive and difficult to maintain customizations.
4. Lack of global sponsorship
Another common risk we see occurring is a lack of a clear global sponsor who is not just given the title, but also recognized as a global authority with the ability to overrule and/or persuade local leadership to buy into the global template. Without this, it is difficult to enforce a global template approach, leading to risks of increased customizations, increased costs, and inflated timelines.
5. Cultural differences and lack of local expertise
The importance of cultural differences and local expertise cannot be underestimated. If business units are culturally far apart from another, a single global sponsor will not be able to persuade all local leadership to get onboard with the global template. At the same time, a lack of local expertise means that important deviations to the global template could be overlooked.
Mitigate risks with these key success factors
While the above risks are present for virtually every global digital transformation project, they do not have to pose a risk to your implementation. Carefully considered strategy and change management can mitigate these risks and support the success of your project.
- 1
Address mandate changes before the IT project
If global leadership wants to centralize the organizational structure and undergo digital transformation to support this, start with the organizational changes. Ideally, conversations about mandate changes should happen before embarking on the digital transformation journey. This decreases the risk that individuals or business units will reject the new, centralized platform to ultimately protect the budget and manage timelines.
- 2
Invest in change management
Proper change management is essential to overcome resistance and promote adoption, which is the final (and often underestimated) step towards a successful project. Change management also plays an essential roll in educating resources on the importance and value of adjusting processes to the new system, rather than trying to “get back” their old processes.
- 3
Rely on strong global sponsorship
A global sponsor plays a crucial role in driving the success of the rollout. When recognized as an authority and possessing the proper mandates, a strong global sponsor helps enforce the global template in order to realize the IT, cost, and efficiency benefits provided.
- 4
Align with local leadership
A strong global sponsor must work closely together with local peers to create buy-in and come to a consensus among geographically and culturally dispersed business units. The local peer can support the global sponsor in determining when it’s most appropriate to enforce the global template and when there is a justifiable need for unique functionalities.
The last key to success: a truly international partner that you can trust
Multinational digital transformation projects are not everyday occurrences for most organizations. This lack of experience can leave businesses vulnerable to the risks discussed above, and many more. To overcome this, work with an implementation partner who does run multinational digital transformation projects everyday. With a trustworthy partner, you can leverage their expertise, best practices, and lessons learned to minimize risks and ensure the success of the global project.
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Global templates are the foundation for success
Discover why global templates are essential to a successful multinational digital transformation project, and what kind of global rollout strategies could work for your organization.
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Navigating the complexities and risks of global rollouts can be challenging, but you don't have to do it alone. Contact us today to learn how HSO's expertise in global implementations can help your organization mitigate risks, manage costs, and achieve a successful rollout. Reach out now and let us guide you through the process, so you can focus on driving your business forward.