When Metcash set out to modernize its technology infrastructure, the company envisioned a transformation that would bring efficiency and agility to its operations. The project, with an initial budget of $80 million, was a bold attempt to leap into the future. But as the months passed and the challenges mounted, what should have been a showcase of innovation turned into a cautionary tale of how things can go wrong when disciplined delivery practices are not applied.

Metcash’s journey into technology transformation was marred by a series of missteps that ballooned the project’s cost to over $280 million. The problems began with poor planning. The project’s scope was not clearly defined, leading to constant changes and an ever-expanding workload that the team struggled to manage. Risks were not adequately anticipated; instead, they were addressed only after they had already caused significant delays and cost overruns. Communication with key stakeholders was sporadic and ineffective, resulting in misaligned expectations and growing dissatisfaction. To make matters worse, the cultural and operational changes required by the new technology were not managed properly, leaving employees unprepared and resistant to the new systems. The absence of a structured change management process further delayed the project’s benefits, turning what should have been a triumph into a financial and operational quagmire.

In stark contrast, Seek’s technology transformation stands as a beacon of what disciplined delivery can achieve. Drawing inspiration from the successful strategies employed by the Commonwealth Bank of Australia (CBA) under Ralph Norris, Seek approached its project with a clear vision and meticulous planning. Under the leadership of Ian Narev, Seek’s transformation was driven by a well-defined roadmap, regular progress reviews, and a proactive approach to risk management. The project team prioritized stakeholder engagement, ensuring that all parties were informed, involved, and aligned with the project’s goals. This continuous communication minimized misunderstandings and allowed for swift adjustments as needed. Moreover, Seek understood the importance of managing the human side of technology transformation. A structured change management process ensured that employees were engaged, trained, and supported throughout the transition, leading to a smooth adoption of new technologies.

The contrasting experiences of Metcash and Seek offer valuable lessons for any organization embarking on a technology transformation. The importance of clear and comprehensive planning cannot be overstated. While Metcash’s lack of initial planning led to uncontrolled costs and complexity, Seek’s meticulous approach laid a strong foundation for success. Similarly, identifying and mitigating risks early in the process is crucial. Metcash’s reactive approach left the company vulnerable to delays and budget overruns, while Seek’s proactive risk management helped the project stay on track. Regular communication with stakeholders is also essential to ensure alignment and address concerns promptly. Seek’s commitment to transparency fostered collaboration and minimized friction, while Metcash’s inconsistent communication led to widespread dissatisfaction.

At the heart of successful technology transformations lies disciplined leadership. Ian Narev’s focused direction at Seek was instrumental in driving the project forward, creating a culture of accountability and excellence that permeated the organisation. This stands in stark contrast to the fragmented and reactive leadership that contributed to Metcash’s difficulties.

The stories of Metcash and Seek underscore the critical role that disciplined delivery practices play in the success of technology transformations. While Metcash’s project became a case study in what can go wrong when discipline is lacking, Seek’s success highlights the power of clear leadership, robust planning, proactive risk management, and comprehensive change management. These lessons serve as a powerful reminder that in the complex world of technology transformation, a disciplined approach is not just beneficial—it is essential.

References

• The Australian Financial Review, How Ian Narev copied CBA’s etch suceess at Seek, March 2024.
• The Australian Financial Review, How Metcash’s $80m tech upgrade blew out by $200m, March 2024.