UK firms failing on business process change

Over a third of business process change projects fail, costing UK firms over £1bn a year, according to research released today by Logica Management Consulting.

Many firms embark on change management projects to improve their financial performance and customer focus, and in order to react to competition.

But 35 per cent of firms surveyed have abandoned a major change management project in the past three years, the research found.

Despite more than two-thirds of organisations spending between one and six per cent of their revenue on such projects, 18 per cent fail to assess the achievement of specific goals, like return on investment, against the original business case.

“The key thing is that some people don't actually focus on the right things when doing IT projects," said Logica management consultant James Campbell.

"They start off with the best intentions but then the pressure of business-as-usual gets in the way."

Logica advised firms to be more proactive and ambitious when planning change projects, and to involve partners and customers in the process.

See also:

Logica joins the bidders list for Galileo system support

Bids are to be considered in early August  16 Jul 2008

Postal group outsources financial systems to Logica

Spring Global Mail will use blended sourcing to achieve cost savings  09 Jun 2008

Logica UK sales stall

European revenues up slightly  14 May 2008

PricewaterhouseCoopers outsources HR system to Logica

Pay as you go model removes upfront software fee  01 May 2008

Public sector shared payroll services expands further

Eighty organisations are now part of framework agreement with Logica  18 Mar 2008

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