CHAPTER 18The New Operating Model

“We are only as strong as we are united, as weak as we are divided.”

—J. K. Rowling

“If you build it, they will come” is what Kevin Costner heard whispered in his cornfield in the movie Field of Dreams. It might have worked for his baseball field, but it is a terrible idea for technology projects. “Build it, and they will come” is a common misconception that new technology will instantly change our companies for the better. Unfortunately, millions of dollars in failed technology projects say otherwise. McKinsey found that 70% of large technology projects fail to reach their stated goals.1 This is not due to a lack of technology but the lack of a well‐defined and well‐executed operating model, which is the subject of this chapter.

Choosing the Right Operating Model

Dan is an architect who works for an energy infrastructure company we'll call PowerCo. He delivered big technology projects in the past and now faced his next challenge. The company made an acquisition that had over 10,000 employees. His project was to integrate and transform the HR processes of both companies. There was a hard timeline for the project, which, if missed, would make tens of thousands of employees go without their medical benefits and possibly even their paycheck. No pressure, right?

The pressure ratcheted higher when recent headlines revealed a failed government HR payroll project. What was supposed to save the government $70 million per year turned into a $2.2 ...

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