Beyond Alignment: Business Sponsor Engagement

We know business transformations are critical to staying competitive and compliant, yet in a 2023 article published by CIO.com stating “despite strategic alignment among IT and business leaders, technical and transformation initiatives still fall flat at an unacceptable rate.” It goes on to list the most common causes, one being a lack of business sponsor engagement and accountability.

Where businesses are rapidly adopting new technologies to stay ahead in a global marketplace, the implications of this issue are particularly significant. Let’s explore why this is a common cause of failure and strategies to address it.

The Role of Business Sponsors in Transformation

Business sponsors, typically senior executives within an organisation, are charged with the responsibility of championing transformation initiatives. Their role is to provide direction, secure resources, and remove roadblocks that could hinder progress. More importantly, they are responsible for ensuring that the initiative aligns with the broader business strategy and delivers value to the organisation.

However, as the CIO.com article suggests, the reality often falls short of this ideal. Business sponsors may be engaged at the outset, but as the project progresses, their involvement can fade. This disengagement can lead to a lack of clarity in decision-making, delays in resource allocation, and ultimately, a failure to achieve the desired results.

Why Does This Happen?

Several factors contribute to the lack of engagement and accountability among business sponsors:

• Competing Priorities: Senior executives often juggle multiple responsibilities, with project sponsorship being just one of many. When other pressing matters arise, the focus on the transformation initiative may diminish.
• Lack of Understanding: Business sponsors may not fully grasp the complexities of the technical aspects of the transformation. This can lead to a disconnect between the IT team and the business, resulting in misaligned expectations and objectives.
• Inadequate Support Structures: Organisations may not have the necessary structures in place to support business sponsors in their role. Without a clear framework or adequate resources, sponsors may struggle to effectively guide the initiative.
• Cultural Barriers: In some cases, the organisational culture may not prioritise accountability. If there is no strong culture of accountability, business sponsors may not feel compelled to stay engaged throughout the project lifecycle.

The Impact of Disengagement

The consequences of business sponsor disengagement can be severe. A study by McKinsey & Company found that transformations with actively engaged sponsors are 1.5 times more likely to succeed than those without. When sponsors are not fully engaged, projects are more likely to suffer from scope creep, budget overruns, and missed deadlines.

Additionally, the lack of a strong advocate at the executive level can lead to a loss of momentum, as team members become disillusioned or confused about the direction of the project.

Strategies to Improve Business Sponsor Engagement

Given the critical role that business sponsors play in the success of transformation initiatives, it is essential to address the factors that contribute to their disengagement. Here are some strategies that can help:

1.Clear Role Definition and Expectations: At the outset of any transformation initiative, it is crucial to clearly define the role of the business sponsor. This includes setting clear expectations for their involvement, decision-making authority, and accountability. Regular check-ins and progress reports can help keep sponsors engaged and informed

2.Provide Adequate Support: Business sponsors should be provided with the necessary resources and support to fulfill their role effectively. This might include access to relevant training, tools, and a dedicated team to assist with project management. In some cases, appointing a co-sponsor or deputy sponsor can help distribute the workload and ensure continuity in leadership.

3.Foster a Culture of Accountability: Creating a culture that prioritises accountability at all levels of the organisation is key. This involves setting clear goals, measuring progress, and holding individuals accountable for their contributions. Recognising and rewarding active engagement can also encourage sponsors to stay committed to the initiative.

4.Enhance Communication and Collaboration: Regular and open communication between the business sponsor, delivery teams, and other stakeholders is essential. This ensures that everyone is on the same page and that any potential issues are addressed promptly. Collaborative tools and platforms can facilitate this communication and make it easier for sponsors to stay involved.

5.Align Transformation Goals with Business Strategy: One of the main reasons business sponsors lose interest is a perceived lack of alignment between the transformation initiative and the overall business strategy. It is essential to continually demonstrate how the project contributes to broader business objectives. This can be achieved through regular updates on the value being delivered and by tying project milestones to strategic goals.

6.Regularly Review and Adjust Sponsor Involvement: The level of involvement required from a business sponsor may change as the project progresses. Regular reviews can help determine if adjustments are needed, whether in terms of the sponsor’s time commitment or the resources available to them. Being flexible and responsive to these needs can help maintain engagement.

In an era where business transformation is no longer a choice but a necessity, the role of business sponsors cannot be underestimated.

By fostering a culture of accountability, providing adequate support, and ensuring alignment with business strategy, organisations can empower their sponsors to lead successful transformations that drive real business value.