Why do Enterprise Engineering Projects Fail?
Obstacles that can result in failure rates for enterprise reengineering projects as high as 70% include 1) lack of sustained management commitment and leadership; 2) unrealistic scope and expectations; and 3) resistance to change. Champy and Hammer (1993) would add not understanding what business engineering entails and the ability to manage change as additional predictors that cause Enterprise Engineering efforts to fail. The failure rate for organizations attempting strategic changes is even higher with some studies reflecting a failure rate of 90 %. In these instances failure rates appear to be highest in instances where strategic changes are initiated in response to external events or pressures rather than as a result of proactive or anticipatory actions by top management. King (1994) offers an additional insight into the primary reason for the failure of organizational transformation efforts by noting the higher failure rates in organizations that view organizational transformatio