A transformation’s business case shows a glittering alternative to the status quo of today. But after implementation, these benefits are never realised. They either don’t exist or they can’t be quantified. What happened? Was this a mirage? Were we being overly optimistic? In this episode of the Retail Transformation Show, Oliver Banks explores the reasons behind initiatives that can’t or won’t show the realised benefits.
Listen to this episode and hear:
- The reasons that lead to benefit realisation challenges.
- Why you need to critically assess your outputs and outcomes.
- The root causes of low utilisation for your change.
- What to do when you realise that the benefits can’t be realised.
Episode summary: The common reasons behind a lack of benefits
In this episode, Oliver Banks discusses the common reasons why transformations in the retail industry may not deliver the expected benefits. One major factor is the overstatement of benefits during the planning and forecasting stage of a transformation. This can easily lead to unachievable goals. Another issue arises when there is no clear linkage between the outputs of the transformation and the desired outcomes, resulting in a gap in achieving the expected benefits.
Moreover, assumptions made during the planning phase can be inaccurate, impacting the realisation of benefits. Changes in the market landscape, evolving customer behaviours, or competitor actions can also affect the anticipated benefits of a transformation. Additionally, difficulties in quantifying benefits, such as in volatile markets or complex data scenarios, can hinder the accurate assessment of the transformation’s impact.
Low utilisation of the solution and outputs can also contribute to the failure to realise benefits. Factors like reverting to old ways of working, a lack of clarity or support for the change, and insufficient ramp-up time can all result in underutilisation of the transformation, and therefore create a benefit deficit. It’s crucially important to actively address these issues early in the change, reassess the business case and benefits throughout, and make informed decisions to either rectify the situation or consider alternative paths to drive successful retail transformations.
Explore your benefits realisation with Oliver
Connect with Oliver to dive into conversations about your specific challenges and opportunities.
📆 Book a meeting and engage in conversation
📧 Email on oliver.banks@obandco.uk
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Discover more about Oliver’s new book: Driving Retail Transformation: How to Navigate Disruption and Change at DrivingRetailTransformation.com, including a sample and where to buy your copy.
Additional episodes to listen to next
Incorrect assumptions are one of the potential root causes for not realising the benefits of change. However, in episode 226: Knowing What’s Likely To Happen, Oliver explores how to use assumptions to progress forward. Assumptions are an essential tool to drive progress in uncertainty, although they should be used effectively.
Another aspect that can stop a transformation in its tracks and can lead to misunderstandings about the benefits and impact of utilisation is gossip and hearsay. Oliver explores this in episode 217: Stop Gossip Killing Your Transformation, so listen in to see how you could prevent mistruths influencing the change or even turn this to your advantage.
And finally, simplification is an essential type of transformation. Oliver mentions this as an example where outputs and outcomes are connected. Find out more about running and delivering simplification transformations in episode 260: Unlocking Retail Simplification.
