The ROI of Avoidance: Saving Millions by Preventing Transformation Failures Before They Happen

It’s pretty straightforward to understand the potential ROI of simply avoiding transformation failures. It is a lot better and cheaper when it comes to cost to avoid losing millions of dollars tied up in failures to transform than to attempt to fix them after the negative damage has occurred. By using advanced technologies like Signavio, WalkMe, and LeanIX, organizations can isolate risks before things get out of hand. 

Getting transformation wrong often entails having costs related to losing time, losing customers, and regulatory penalties. By adopting avoidance strategies, organizations can not only move fast but also move safely. 

Avoidance mechanisms involve:

  • Early journey risk controls to leverage vulnerabilities early.
  • Simulations that predict probable outcomes before execution.
  • Automation of training experiences to facilitate seamless adoption.
  • Mapping out compliance responsibilities and eliminating blind spots.

In short, if you want to get ROI from your transformation initiatives, then prevention is key. Organizations that prioritize risk avoidance design resilience, preserve margins, and build growth capacity. Let’s look at how each of these technologies can save tens of millions of dollars.

Understanding the Cost of Transformation Failures

The cost of failure in transformation is not only the sunk investment, it also includes second- and third-order operational consequences. Global reports are estimating almost $100 billion a year from failed projects that cost companies through rework, regulatory fines, and customer reputational damage. 

The upfront major costs of failure often are:

– Financial losses from sunk investments. 

– Employee resistance to low rates of adoption. 

– Operational breakdowns from inadequate IT integration. 

– Compliance penalties for failing to meet regulatory standards. 

Organizations often miss the environment created by failure. For example, a failed ERP rollout can easily delay supply chains, impact service quality, and damage customer loyalty.

By shifting to risk management of the transformation early, organizations remove the opportunity for these hidden drains on efficiency. LeanIX risk management platforms and Signavio risk controls are providing organizations with sight of the failures before the transformation is underway. This makes the cost of prevention an ROI multiplier by not spending money in avoiding risk.

How Signavio Risk Controls Reduce Early-Stage Vulnerabilities

Signavio risk controls give organizations the ability to detect and address risk at a process level. Rather than dealing with issues as they arise following implementation, organizations can implement controls upstream, thereby preemptively addressing risk.

Examples of organizations will experience direct benefits of this approach, including:

  • Identifying risk in workflows.
  • Providing centralized monitoring and ongoing controls.
  • Intervening early to prevent far greater risk.

For example, a financial services firm looking to undertake process automation, could use risk controls through Signavio to determine where gaps existed regarding data governance. By addressing data governance gaps prior to automating their processes, the organization avoided being fined for compliance issues later.

Organizations that embed risk controls in process design and transformation design save themselves time and money. Along with time and money, there are also returns on investment for organizations when governance relates to decision making. When leadership has a clear visual depiction of risk, decision making which unambiguously represents risk can be made in far more complex environments.

Return on investment in this sense is obvious when preventing risk at execution is certainly cheaper than remediating a process that has prematurely failed. Therefore, the leading organizations today rely on Signavio risk controls as the foundation for ever successful transformation.

Using Signavio Simulation to Predict Outcomes Before Execution

Signavio simulation allows companies to predict how changes will play out under a variety of conditions. Instead of blindly guessing, leaders can virtually run scenarios and avoid failures in the real world.  

The value of simulation includes:  

The ability to predict business outcomes for decision-making.  

The ability to test scenarios against each other to decide what strategy to choose.  

Forecasts that demonstrate cost-savings while protecting against wasted investments.  

For example, if a retailer wants to digitize its order management system, using Signavio simulation, they can test how effective various workflows are as demand increases. This method reveals bottlenecks and addresses whether the process can scale before implementing it.  

By utilizing simulation, organizations ensure that their decisions are based on data, not assumptions, and provide assurance that execution will be successful while avoiding costly surprises.  

The ability to simulate processes prior to launching them is like having an insurance policy for your transformation; you can avoid the risk before it becomes an expense. The foresight gained from predictive capabilities of Signavio simulation allows leaders to make high-ROI edits.

The Role of WalkMe Training Automation in Change Adoption

Poor employee adoption is one of the main reasons transformations fail. WalkMe training automation resolves this issue with contextual, step-by-step support directly within applications, guiding the user through key tasks.

The main benefits include:

  • Lower training costs through automated onboarding.
  • Faster adoption through in-app guidance.
  • Same learning across departments.

For example, if a bank deploys new compliance software, WalkMe will provide automation for training thousands of employees without any classroom training. The automated program will ensure that each user is trained properly and there is less resistance to change.

You can often calculate financial return based on a reduction in human error and the time lost in training. Rather than investing months of retraining after a failed launch, the organization will have secured adoption on day one.

In many respects WalkMe allows organizations to turn transformation projects from risky bets to successful deployments. Training automation doesn’t just help the center of excellence achieve adoption, it also protects millions in project investments.

LeanIX Risk Management

The modern transformation landscape is full of risk, especially when the most significant IT-related risks are kept behind closed doors. LeanIX’s risk management solution bridges the gap by showing these blind spots directly by understanding the interdependencies among systems, processes, and technology.  

Benefits include the following:  

  1. Identify IT vulnerabilities before they become operational issues.
  2. Unify risk management across business units.
  3. Compare and understand the priority of IT risk vs. business impact.

For example, if an organization is going through a cloud migration, LeanIX allows them to identify legacy system dependencies that will break after the change is made. These issues can often be proactively remediated, leading to lost time and cost savings in downtime.  

The best ROI comes from having proactive visibility. Instead of leaders realizing these issues while executing, the organization knows of the issues to fix upfront, leading to less rework, downtime savings, and reduced compliance impacts.  

By understanding IT and business together, LeanIX gives organizations the ability to use risk as an opportunity. For leaders using LeanIX, transformation feels safer, faster, and more cost-effective.

LeanIX Compliance Mapping in Practice

Compliance often comes to mind only when there is a crisis that stems from something being out of compliance. The LeanIX compliance mapping connects the regulations directly into your transformation design, which means no requirement can be overlooked. 

Take for example a healthcare company moving to digital patient record storage and offers record access and management capabilities. They are subject to strict HIPAA compliance, when implementing their regulatory compliance LeanIX compliance mapping would identify the systems, and highlight points where additional controls must be implemented to avoid a potential catastrophic mistake and cost.

The return on investment (ROI) of compliance efforts is speechless. The avoided fines and penalties are directly linked to profit protection. When introducing change to IT, or any process, and compliance is built in then the process is likely to remain ahead of or to remain compliant to regulations.

Compliance mapping also fosters trust with your customers and your regulators by enhancing your brand’s reputation. Leaders who treat compliance as a management and organizational priority reap the financial savings, and strategic advantage.

FAQs

Signavio risk controls detect vulnerabilities in business processes proactively, before they become issues, allowing organizations to mitigate any issues, avoid issues or design failures prior to execution. Embedding controls at the earliest possible stage helps organizations avoid expensive breakdowns, achieve greater governance, and improve the likelihood of long-term success.
The Signavio simulation allows executive leadership to run a number of scenarios in advance of executing a transformation so they have an approximate understanding of the outcome and can avoid any ugly surprises after the investment has been made. The simulation also helps improve ROI because the avoidable loss situations (failed investments) are reduced and the executive leadership can make informed decisions based on data so their ROI is safeguarded.
WalkMe’s training automation capability provides in-app step-by-step training that replaces inefficient and costly classroom training. This improves adoption speed, reduces employee resistance to change and ensures that every employee participant receive the same quality of learning, protecting every corporation’s financial investment by ensuring employee participants are successful as soon as they start.
LeanIX risk management capability provides proactive visibility into IT and process weakness points before the issues become a massive disruption to the transformation project. Reducing the time to execute transformation as well as allowing IT decisions to stay aligned with business priorities will help maximize ROI.
LeanIX compliance capability allows organizations to incorporate regulatory compliance into their transformation planning cycle. This will help to avoid non-compliance penalties, maintain organizational readiness within the audit cycle, protect against risk relative to brand reputation and save millions of dollars of possible amendments and penalties.

Author Bio

YRC-rupal

Rupal Agarwal

Chief Strategy Officer
Dr. Rupal’s “Everything is possible” attitude helps achieve the impossible. Dr. Rupal Agarwal has worked with 300+ companies from various sectors, since 2012, to custom-build SOPs, push their limits and improve performance efficiency. Rupal & her team have remarkable success stories of helping companies scale 10X with business process standardization.