Digital Transformation Is More than Just a Buzzword…It’s a Strategic Imperative
Every time you blink, it seems like technology has advanced dramatically. Organizations are always trying to stay relevant by harnessing the power of tech. This approach empowers them to redefine their processes, customer experiences, and operations.
However, in the middle of these tech-driven changes, the traditional project management strategies that have been employed for years emerge as a surprising new ally. Many might assume that classic project management techniques have taken a backseat to agile methodologies like Scrum. That’s not the case, as Scrum is not the answer to all problems. These time-tested approaches can be the cornerstone of successful digital transformations.
So, buckle up as we dig into how the marriage of traditional project management techniques and digital transformation can create a more robust, more harmonious result.
In this article, we’ll look into how traditional project management strategies benefit digital transformation. We’ll also explore how companies can successfully combine project management and digital transformation initiatives to achieve the best, most impactful results.
Using Traditional Project Management Today
Before pouring over the benefits of combining traditional project management with digital transformation, let’s clarify what we mean by ‘traditional project management’ called “waterfall” by some.
These are methodologies rooted in well-defined processes, strict timelines, and a hierarchical structure. While they may seem rigid compared to agile approaches, their stability, and assumed predictability can provide a sturdy foundation that performs well amid the unpredictable currents of a digital transformation framework.
Embracing the Hybrid Approach of Waterfall and Agile
At first glance, a digital transformation strategy driven by innovation and adaptation might seem ill-fit for traditional project management approaches. The key to success lies in embracing a hybrid model that combines the best of both worlds (and taps into the strong points of each), making sure not to keep current practices that you are comfortable with just because that is how we have always done it.
Take the example of a large financial institution that aimed to modernize its customer service systems. By combining the structure of traditional project management with agile’s iterative development, the company managed to deliver incremental enhancements while staying on track with its long-range strategic roadmap.
Benefits of Using Traditional Project Management for Digital Transformation
While agile practices have gained immense popularity for their flexibility, pay attention to the classic old ways of managing projects. Companies can reap powerful results from blending both into their digital makeover.
What are the positive outcomes of including traditional project management in your digital transformation game plan? Here you go!
1. Creating clear roadmaps:
Classic project management’s emphasis on detailed planning creates an easy-to-follow plan that aligns with organizational goals, providing a comprehensive view of the transformation journey.
2. Constructing predictable timelines:
Rapid technological changes can rattle and upend workflows, so you should use data to arrive at probabilistic forecasts on deliverables for the best results. Think of Hurricane predictions. They always show times and probabilities in their path predictions because the real world is unpredictable. We can bring sanity to our lives by making forecasts based on data that include a date and probability instead of just a predicted schedule. Management needs a forecast to make decisions. However, if we told them here is a date, and we are sure it is wrong, what would their response be? They probably won’t have much buy-in. But if we told them we have an 85% probability of delivering in X days or less, wouldn’t that be better than a wild guess?
3. Executing better risk management:
Classic methodologies excel at identifying and mitigating risks, ensuring potential roadblocks are addressed before they escalate because risk mitigation is not an afterthought. Many Scrum teams are getting better at this by identifying risks in the Daily Scrum, Backlog Refinement, and Sprint Planning.
4. Improving Stakeholder Communication:
Traditional project management places a strong emphasis on inclusive, collaborative communication. As a result, stakeholders are informed and engaged throughout the transformation process. In addition to stakeholder communication plans, if a hybrid approach is utilized, Product Owners can engage and collaborate with Stakeholders as often as they make themselves available and no less than at the Sprint Review.
5. Bolstering resource allocation:
The structured approach of classic project management aids in efficient resource allocation, maximizing the utilization of available assets. Resource allocation is a very important function of Product Owners and Project managers. Ensure your team members are not over-allocated and let them focus on a limited number of work items to get them done more quickly. Augmenting your workflow with a few Kanban practices will be immensely helpful with this.
6. Adhering to regulatory and cyber security compliance:
For industries that must follow stringent regulations, traditional project management provides a valuable framework for navigating compliance requirements effectively.
By combining the best of both agile and traditional project management where appropriate, you’ll be able to achieve your strategy with fewer time-consuming unforeseen impediments. Instead of creating headaches, digital transformation can be made a less stressful journey by adding traditional project management.
Step-by-Step: Using Traditional Project Management to Achieve Digital Transformation
I often describe myself as a recovering PMP because, for team-related efforts, I lean strongly toward Scrum & Kanban as a preferred way of working, but that does not mean we should not consider traditional project management where its strengths are evident. Preparing a plan is a vital element of success. Traditional project management can effectively steer an organization through its technological evolution.
Step 1: Think Big Picture
Align your digital transformation goals with your organization’s overall strategy. Traditional project management looks to define clear objectives and creates a definitive roadmap that drives success. By combining Scrum.org’s Evidence-Based Management, you will be positioned to validate outcomes and course correct to stay on the desired strategic path.
Step 2: Rigorous Planning
Leverage classic project management’s knack for detailed planning to break down your transformation journey into manageable phases while still taking advantage of your Scrum and Kanban teams to deliver working, usable products regularly. This brings transparency and clarity to your team and also assists in allocating resources effectively.
Step 3: Team Power
Build strong cross-functional teams by combining the expertise of traditional project managers and agile practitioners. This diversity fosters a powerful balance between structured execution and adaptive problem-solving that will serve your company well.
Step 4: Regular Checkpoints
Implement regular review points similar to traditional project milestones. These checkpoints allow for a comprehensive assessment of progress and enable a way to correct the course if necessary proactively. These program-type reviews would be in addition to Sprint Reviews if your agile teams use Scrum.
Step 5: Talk Often
Establish a robust communication framework that encourages open dialogue between classic project managers and agile team members. Bridging communication gaps ensures everyone remains aligned and informed about the overall goal.
Step 6: Be Flexible within Boundaries
While traditional project management sets strict boundaries, companies should infuse a degree of flexibility into the mix. Agile practices can be used within these boundaries to foster continuous improvements and adaptations.
Success Stories: Classic Techniques in a Digital World
As with many new ideas, digital transformation partnered with traditional project management can be challenging to wrap your mind around. Let’s dive into some real success stories where classic techniques teamed up with the digital world:
Retail giant
A renowned retail giant embarked on a digital transformation journey to revamp its e-commerce platform. They started by employing traditional project management principles to establish a robust timeline, identify potential risks, and set clear expectations.
Simultaneously, agile techniques allowed them to respond swiftly to changing customer preferences. This harmonious blend resulted in an on-time and on-budget launch and laid the foundational groundwork for iterative enhancements based on real-time feedback.
Large hospital network
In the healthcare sector, a prominent hospital network decided to modernize its patient records system. They opted for a fusion of classic and agile approaches, aligning the structured project management elements with the dynamic nature of patient care.
By defining clear phases and milestones, they navigated the complex regulatory requirements while agile iterations facilitated quick adjustments in response to evolving medical standards.
The result? A seamless transition to a digital patient records system that streamlined operations and improved patient care.
Seizing the Opportunity with Agile-ity
Technology’s pace can seem overwhelming at first. By intertwining the structured approach of traditional methodologies with agile adaptability, organizations can smoothly and intuitively negotiate the complexities of tech-driven changes.
The underlying thought process that drives success is viewing these strategies not as competing forces but as complementary tools. When both are wielded skillfully, they can transform your organization’s digital journey.
Given that most digital transformations fail, with various studies indicating that, on average, 87.5% of all digital transformations fail to meet their original objectives, one would expect that firms would have given up by now. However, digital transformations are still at the top of many corporate agendas.
We need a better approach. Not necessarily a new approach. Instead of throwing the baby out with the bath water, would it make sense to figure out what you are doing well and build upon it?
For personalized guidance on harnessing the power of classic project management in the digital age, please don’t hesitate to contact Agile-ity for a complimentary 15-minute consultation. Your low-risk, low-cost transformation success story awaits.
