Why automation programs fail?
Automation programs unlike technology projects are not just about delivery. There is also an element of organization and business transformation. For automation programs to succeed, there are layers involving human behaviours, organization culture and strategy to be addressed.
Listed out 6 common reasons why automation initiatives fail or do not meet the desired target —
1. Pursuit of quick wins
Pursuit of quick “small fish” wins while overlooking larger opportunities. Leaders are usually under pressure to showcase the benefits of automation, which can cause them to focus on opportunities that are relatively unimportant but quick and easy to implement. While achieving quick wins is a worthwhile proof of concept, it is essential to develop an overall strategy and invest in important, longer-term opportunities to capture the value that can be generated by automating large processes.
2. Fear of automation
Arising concerns about jobs getting replaced leads to lack of trust in automation. Although automation can eliminate some jobs, it also has the potential to provide new opportunities and free capacity to focus on value-added work. For example, call center employees could shift their focus to proactive service or sales, instead of manually documenting interactions at length. Furthermore, high performers whose jobs will be eliminated can be considered for other roles within the organization
3. Inadequate user onboarding and training
Rather than running the tools from a central authority, delegating authority to user, teaching them how the tools work, configure and code them and perhaps even. co-creating new tools can lead to greater consumer engagement and continuous improvement loop. Such results are in line with other initiatives, such as agile development and continuous delivery, that many companies are currently launching to empower employees. To gain user buy-in, companywide communication and clear articulation of the value of automation are crucial.
4. Too much dependency on external suppliers
System integrators and other vendors bring in personnel with expertise and experience to help implement automation programs and increase staffing flexibility. However, a company that uses only external suppliers for implementation misses the opportunity to build the internal capabilities critical for scaling and sustaining automation over the long run. Significant advantages can be gained from having employees work side by side with vendors on implementation so they can develop the capabilities needed to bring future automation work in-house.
5. A cost-myopic view
A single threaded cost benefit view ignores the value derived from improvements in quality, speed, and flexibility. Cost reduction is a key benefit of automation at scale, but it is not the only one. Other potential benefits, such as better user experience and improved quality, speed, and flexibility, are important to a payer’s long-term success. Developing metrics to measure and track these benefits can make it easier to recognize and demonstrate them. Automation requires sustained investment, especially in technology and know-how and should be viewed as a strategic differentiator.
6. Inability to translate into P&L impact
Local task based automation results in low or no returns. While it may be possible to automate 30 percent of tasks, that does not neatly translate into a cost reduction of 30 percent. People do many different things on the job, and automation tools may address only some of them. Also, automation tools often treat localized pain points. Fixing one bottleneck may just move the problem elsewhere in the process — or elsewhere in the organization. Consequently, the financial outcome of automation rarely matches the original expectations. Real, sustainable savings usually require a fundamental transformation of the organization. Moreover, establishing strong business leaders with P&L responsibility can help scale automation towards highest business value.
