Key Reasons Why Transformation Projects Fail: Case-Study of a Procurement Function Transformation Project in a Large Russian Energy Corporation
Challenging issue of transformation project (program) management is discussed in this paper. Transformation projects are widely implemented by companies and their successful implementation has a direct impact on the competitiveness of companies. There are a number of transformation project management methodologies invented and widely implemented today, however, according to various estimates, from 60 to 70% of the transformation projects still fail. This article describes main transformation project management methodologies, as well as the results of various researches done in the field of identification of factors of failure of transformation projects. This paper explores an unsuccessfully implemented transformation project of procurement function in a large Russian energy corporation. Key failure factors of transformation project implementation are revealed and recommendations to prevent the issues identified are made in the form of �lessons learnt�.