Recently I posted my commentary about Accenture’s recent assumption that the US is falling behind in its technology leadership.  Their assumption is based on a study in which CIOs did not state a strong preference to adopt new technologies, relative to their counterparts in other countries.  The news of that study happened to coincide with my own contemplation about how companies try too hard to “innovate” their business processes by adopting or creating new technology.

I frequently see companies get caught up in a compelling, but sometimes incorrect assumption that “new,” “high quality,” and “appropriate to my business” are equal.  IT projects such as implementing enterprise software systems, like Project Workforce Management, are usually major investments of time and money.  For many companies and situations, it is wise to mitigate the risk of these investments by selecting proven technologies and products, and ensuring that they will solve the company’s real business needs.

I often see a similar phenomenon when companies develop home grown applications or customize an existing enterprise system.  Some companies try too hard to create their “dream” solution, especially if they are automating for the first time.  Like kids in a candy store, they get excited about each new possibility that some custom application development might offer.  They request customizations that are so detailed and complex that the last 5% of functionality costs them more than the entire implementation budget.  Their ideas are innovative, but they are very specific to a specific resource group or the company’s ideal business processes–which are not necessarily best practices. 

These customization projects become almost living organisms. The allocated budget creates employment for consultants or internal resources who work on the new new thing. These same groups eventually become special interest groups that resist any innovation, always choosing their own self-interest and job security over improving the company’s competitive standing.

In too many cases, these customization projects fail.  I have seen companies who spent a lot of time dreaming, evaluating, and tire-kicking, sometimes for years—and finally accomplishing very little in terms of value creation.  If they had just saved their money and rolled out a product with its out-of-the-box functionality and very limited, highly selective customizations, instead of paying for a consultant to take them through a long specification process, they would have accomplished so much more and become more efficient than they were ever before, for far less of an investment.

Innovation and dreaming big are critical to our growth–as people, companies, and nations–but they have their place.  Dreams must be followed by action.  And to be actionable, a dream must be backed up with proven experience.  Otherwise, dreams can cause us to over-complicate our plans.  As project managers, we know that a complicated plan, which relies on unproven tactics or technology, is not as likely to succeed.

My advice to companies who seek positive change: stick to the basics.  Start with the proven experiences and offerings, and then innovate as you grow.  Adopt technology out-of-the-box as much as possible, customize but very very selectively, and adapt your business processes accordingly.