July 2001 Hot Topic

Clear Executive Intent: The Missing Ingredient
in Many Big Information Technology Change Initiatives

CEO's frequently think that their
intentions are clear to everybody. Not so.

A CEO had just been briefed on the status of the implementation of an SAP module in his organization. The technical project manager conducting the briefing stated that the module was fully implemented and "up and running." The CEO responded with a grin and said, "Great." But a consultant sitting in on the meeting asked a simple question. What percent of the financial transactions that are supposed to be handled on the new system are now so handled? After a moment of silence, the CFO spoke up and said that as of the current month, 5% of the accounts payable transactions were being handled on the system and that the remaining 95% were being handled manually. But, he added, workers were beginning to use the system more and more…and he thought all the transactions would be handled on the system in a few months.

Believe it or not, many executives fail to provide one of the most important ingredients for successful big changes involving information technology because they have no idea they need to provide it. That missing ingredient in some very important change initiatives is a clear statement of intent that the organization will change and begin to operate a new way…on target, on time, and on budget. Continuing the story above, the consultant turned to the CEO and said, "What is your intent? Is it your intent that all the transactions be handled on the new system in a matter of months? Is it your intent that workers should get around to using the new systems in a few months?" The now red-faced CEO made his intent pretty clear: "I would not have pulled the trigger on a $15 million system if I hadn't intended to have all transactions handled on the new system as soon as it was up and running. Sounds like I made an assumption that everybody knew my intent!"

How could any executive miss that? Easy. Executives miss it because they think their intent should be obvious from the authorization and initial announcement of a change initiative. And in some cases, intent might be obvious. For example, if an organization went through the two-year process of building a new chemical reactor on the back lot of their existing chemical plant, the chief executive would hardly need to call together his entire plant population to announce, "You have all seen the new chemical reactor go in on the back lot. I have called you together today just to ensure that you know that this company intends to fully operate that new reactor to recover our investment and make money for the company. It is not my intention that this reactor sit idle once it is completed." Imagine the puzzled looks on the faces of plant employees as they ask each other why the executive wasted everybody's time to tell them what they already know. They even know when the new reactor will go on line, which of the company's employees will staff it, and what the initial return targets are for reactor operation.

So what's the point? If you are leading a change initiative that involves a big system implementation, don't assume that people know that you intend for that big system to be fully used from the beginning. It is up to the executive in charge of both the system implementation and the user community to say loud and clear, out in the open, that the company's intent is full utilization of the new system right from the get-go. In some cases, the executive might need to go even further and say something like the following: Mr. Technical Project Manager, I intend for this system to be implemented on target, on time, and on budget. Ms. User Manager, I intend for all users to be completely ready to fully use this new system at go live.

Ok, Ms. Executive, if you intend for something new to happen, state that intent loud and clear…and don't assume that everybody gets it. Then follow up your statement of intent with concrete actions that demonstrate that intent. Any questions?

Dutch Holland, CEO of HDI, has worked as a management consultant for 30 years, helping organizations and leaders manage and implement change successfully. And if you enjoyed this short article on change, you'll love his new book, Change is the Rule (Dearborn Trade, Chicago, 2000). Check your local bookstores or read a review at amazon.com! Contact Dutch at 713.877.8130.

As always, we would like your comments and suggestions on our FAQs and Hot Topics. Please give us your input by signing in on our guestbook.