Grupo Clínicos

As CIO’s, there are some cases when we experiment that our digital transformation initiatives enter in a limbo. We have invested a couple of millions in initiatives that we have considered as high value for the business, nevertheless, this value is not evident or is not reflected in less costs, more revenues, better decisions, new business models, etc. The CIO then enters into the eye of the hurricane with a bunch of concerns about his or her results and performance. These initiatives were once considered as high-value initiatives from the CIO’s perspective but required a high investment or a lot of organizational effort to be performed. Probably are kept going and won the enough dynamics to not stop them without causing trouble for the CIO or at least a loss of credibility. And unfortunately, give them continuity is not easy affordable and sustainable for the entire organization.

In Latam, regarding my experience, there are several causes that make that the initiatives enter into this limbo that we are talking about and could be presented in multiple dimensions. Nevertheless, we consider the most relevant: strategy changes due to market disruptions or new competitors, lack of alignment between the organization goals and the areas perspective, business sponsorship absence or having invested in a non-mature technology, or the business are not ready yet for this kind of change.   

We want to focus on recommend to you some actions that would be a good solution to the first cause, also considering that it can be one of the most common causes on the current markets. By the way, adopting the change on this aspect can be painful and requires a series of actions, decisions and hard choices. Of course, this is not a magic formula.    

1. Embrace your company´s value proposition and the competitive strategy.

These are your bible and should be your key decision limit. If the initiative does not leverage the new value proposition or the strategy, you have your first “no brain” regarding continuity. In the long run, the other C-Level members and the entire organization will appreciate your decision to do not continue or cancel. It maybe will cost a bit in terms of your ego as CIO, but being aligned with the strategic direction of your company should come first. If you found that either one (value proposition or competitive strategy) is not defined or clear enough (which is the case in some startups), it is a good way to start discussing it as a priority with the other members of the management team.  At the end of the game, the worst case should be that you save money by suspending or cancelling unclear initiatives and that your communication with the other team members could be strengthened through transparency.

 ​We are living through difficult times in different markets, where the initiatives should be often linked to profitable growth or business sustainability. 

2. Focusing on business value

We are living through difficult times in different markets, where the initiatives should be often linked to profitable growth or business sustainability. Therefore, if your initiative is not aimed at obtaining more incomes, optimizing costs, or developing new businesses, it is better not to waste your time and energy. Make the hard choice and suspend or cancel the initiative. Finding value or demonstratingit will be harder and also getting attention from business sponsors, neither talking about the political cost for you. Talk to your C-level colleagues, discuss about the suspension or cancellation. Once again, what will possibly happen is that you strengthen your communication and confidence with your teammates.

3. Is it valuable for the company make changes to decrease the scope? Maybe including some quick wins more tangible for the business and continue.

In this scenario, we will assume that the initiative is still valuable to the company, just takes more effort than expected, and the initial estimates were wrong. Next question should be: are we using the right methodology? Can I reduce the scope or change the approach and get at least one or two quick wins? If not, cancel or suspend. Maybe your organization or the technology is not mature yet. Otherwise, defining an MVP (Minimum viable product) and use an agile framework should be enough to start granting value and justify the investment. As you know, not everything has to be ready at the same time, and not everything has to be perfect. Designing with a long-term vision and executing with a short-term vision can be very useful to you.

After applying any of these actions, it is possible that your ego gets hurt. Get rid of emotional attachments and give up the ego. This is perhaps the most difficult of all because it involves personal sacrifices, even if you come in a streak of successful projects in your organization and wear the “olive crown” of success. Keep in mind that teamwork and the global optimal seeking for the organization must be above the CIO's ego. Having an open conversation with the CEO can also be helpful and fuel your strategic vision.