Has your retail software project hit rock bottom?
In my last blog, I talked about why many retailers fail to achieve the expected ROI from their retail management software investments and shared five tests a new purchase must pass.
In this blog, we’ll look at what to do when a software project goes wrong.
Enterprise software failure rates are remarkably high, though naturally rarely discussed in public! For some companies, their investments become a black hole, sucking up funds and resources to rescue the project. Others lead to serious business disruptions when the software goes live and the loss of innovations that deliver a competitive edge.
So how do you resurrect a failed software project and, more significantly, what are the important signs it’s time to cut your losses and walk away?
There are five steps to take to salvage a failing software project, or rebuild after a failure:
Step 1: Rethink your game plan and goals
Take another look at the original project plan and strategic objectives. Adjust them to fit the new reality and the challenges you've faced. Then set realistic expectations and lay out clear objectives for moving forward. Maybe you need to tweak the timeline, shuffle resources or reconsider the budget? A fresh plan gives you a chance to gain momentum and start over.
Step 2: Take a good hard look at what went wrong
Figure out the specific issues and challenges that caused the project to falter. Was it poor planning, bad program management, miscommunication or technical shortcomings? Communicate openly with all the stakeholders involved and listen to their take on the situation. Working together and sharing ideas will foster trust, encourage problem-solving and ensure everyone is on the same page regarding the path forward.
Step 3: Take stock of your team
Are the people and team dynamics that got you to this point capable of turning the project around? Check that the individuals have got the right skills for the job and are aligned with the revised project goals. Examine the team dynamics and make sure your leaders are up to the task. A great team can often turn things around.
Step 4: Call in the experts
If the project is in a critical state, it’s probably time to bring in outside help. Get on board external consultants and software vendors with real-world experience in the current disrupted retail environment. Ask them to provide guidance, identify areas to improve and suggest potential solutions. They'll have managed complex, large-scale deployments and can provide new perspectives and bridge skills gaps to get things back on track.
Step 5: Take action and keep tabs on progress
Take actions to remedy the identified issues and implement corrective measures. Whether it's changing team members, improving communication, adjusting workflows or adopting new project management methodologies, implement the fixes needed to address the issues. Keep a close eye on the progress, track the key performance indicators (KPIs), and have regular status updates to make sure things are heading in the right direction.
But what do you do when you’ve completed all these moves and the project is still floundering?
If the project is still not delivering real value after taking these steps, it can mean the wrong product was selected. Any software purchase that doesn’t meet its target ROI is a failure. And at a time when consumer confidence is low and customer expectations are rising, new technology investments are being held to an even higher standard.
Sometimes making the uncomfortable decision to cut your losses and start the process of finding a new software provider is the right thing to do.
While it may first register as a loss, it could end up being the best thing that ever happened to your retail business.
Here are the indicators that mean it's time to pull the plug and start over:
Misalignment with business KPIs: If the project no longer aligns with your strategic goals or the original business objectives have significantly shifted, it's a fundamental mismatch. When the deviation is substantial and irreconcilable, it's best to cut ties and focus on initiatives that do.
Unrecoverable delays: If the project keeps getting delayed without any end in sight, it's a red flag. When the delays are significant and impact the project's viability or business objectives, it’s time to assess whether the proposed solution is even feasible.
Escalating costs: If the project costs are skyrocketing and return on investment isn't looking promising, it may be financially unsustainable to continue. When cost overruns outweigh the expected gains, it’s better to cut your losses and move on.
Susceptibility to the sunk cost fallacy: This is our tendency to follow through on a project if we have already invested time, effort, emotion or money into it, whether or not the current costs outweigh the benefits. Any unrecoverable costs sunk in the past are irrelevant when deciding what to do next.
Insurmountable technical challenges: If the project faces technical obstacles or limitations that can’t be overcome within a reasonable timeframe, it’s an indication that the solution is not suitable or feasible. When the problems are too big to fix or would require a complete overhaul, the software is not the right fit.
Stakeholders withdraw support: When important stakeholders lose confidence in the solution or no longer provide support, it's a clear message. If the solution cannot realistically recover to meet their expectations, it’s time to consider ending it.
Making the call to exit a failing software project is tough, but often necessary.
It’s an opportunity to find a solution that best meets your particular needs, allowing you to create real, sustainable value for your retail business.
Want help to assess the viability of your software project?
If your project is not delivering the returns you expected, we can help you navigate the complex issues and find the right path forward. Just contact me at kelly.brown@triquestra.com or get in touch.
