The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →A telecom transformation can be pointed in the wrong direction before anyone chooses a platform or vendor. That happens when leaders have not agreed on the business problem, the outcomes they expect, the scope of change, who owns it, or how the future operating model will work. Technology matters, but procurement cannot resolve those upstream questions for them.
What needs to be clear before technology selection?
Start by defining what the transformation is meant to change for the business, customers, and employees—not by naming a system to replace. That distinction matters because a program may be a technical upgrade, a change to one capability, or a broader shift in how the operator creates and delivers value. Those are different scopes, with different dependencies and measures of success.
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In its February 2024 article Five Recipes for Failure in a Telco Transformation, Boston Consulting Group (BCG) put the prerequisite plainly: “Telcos need to have clarity around the project scope, sourcing strategy and operating model, and business impact.” BCG also argues that the business is a natural source of this insight, yet business leaders are often brought in too late.
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Before narrowing the technology options, leaders should be able to answer:
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- What business outcome is the program accountable for? Define the intended impact rather than treating deployment or system replacement as the outcome.
- How broad is the change? Establish which customer, employee, operational, and business capabilities are in scope, and how they connect.
- Who owns the outcome? Name business leaders who can define and own the desired impact, with IT as a partner in shaping feasible options.
- What operating model must the technology support? Decide how teams, processes, and decision-making should work after the transformation.
If the answers are still unsettled, a vendor shortlist risks turning an open business question into a premature product decision.
Why do telecom transformations go off course so early?
BCG identifies five early pitfalls. They are organizational and managerial problems as much as technology problems; each can leave a technically competent implementation unable to deliver the intended business change.
1. The program is treated as a set of projects instead of a whole
When leaders look only at individual systems or workstreams, they can miss dependencies among customer experience, operations, data, and the business model. A program needs an explicit view of how its pieces contribute to the intended impact, not just a list of projects that happen to run at the same time.
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2. Business leaders join after the direction is set
Late business involvement makes it harder to test whether the scope addresses a real business need, whether the expected impact is plausible, and whether the future operating model is workable. Business ownership should shape the ambition and outcomes early, rather than being limited to approving requirements developed elsewhere.
3. Agile is adopted only in part
Calling a program agile does not make its delivery model agile. BCG flags partial adoption as a failure pattern; McKinsey’s analysis of agile telcos likewise emphasizes unified steering and continued review of the operating model. Teams need an approach that fits together across roles, processes, and governance—not isolated agile practices inside a program that is otherwise still organized in silos.
4. Incentives reward local delivery over shared outcomes
A team can meet its own targets while the overall customer or business outcome suffers. If performance measures reward functional or business-unit delivery but not cross-functional results, collaboration depends on goodwill rather than being reinforced by the management system.
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5. No central group can orchestrate the transformation
Without a control tower or equivalent central coordinating team, dependencies, sequencing, resources, and bottlenecks can fall between workstreams. The purpose is not to make every decision centrally; it is to give the transformation a place that can see the whole program and help teams resolve cross-cutting problems.
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A 2024 McKinsey and Russell Reynolds Associates assessment compared more than 90 major telcos with 30 consumer technology companies. In the article reporting the assessment, 90 percent of interviewed C-suite leaders said their organizations already had a cross-functional approach. Yet the reported management-by-objectives (MBO) figures showed that 45 percent of incentives were tied to functional or business-unit goals, while only 15 to 20 percent were tied to cross-functional goals.
These figures describe the research and its interviewed population; they are not a measurement of every telecom operator. Their practical implication is a question for leadership teams: do the goals and rewards attached to people’s roles encourage them to optimize the end-to-end customer or business result, or primarily their own function’s performance? If incentives pull in different directions, declaring the transformation cross-functional will not resolve the conflict.
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What kind of governance can keep the work integrated?
In its April 2021 article A blueprint for telecom’s critical reinvention, McKinsey argues against relying on sequential, largely siloed programs managed mainly through central reporting and tracking. Its alternative is integrated change across a coordinated period, supported by a central team acting as orchestrator, challenger, and enabler.
That distinction is important: orchestration is not the same as a reporting office that observes milestones but cannot help change the plan. A useful central team needs visibility across dependencies and the ability to help clear bottlenecks, coordinate priorities, and adjust sequencing. Delivery teams, in turn, need enough authority to act within the agreed direction.
McKinsey’s 2025 analysis, Inside agile telcos: Organizing to value and what it takes to succeed, also points to unified steering and continuing operating-model review. Together, these ideas make governance a way to connect business priorities and delivery—not a substitute for business ownership or a layer of status reporting.
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What should leaders do before choosing the technology?
- Agree on the ambition and intended impact. State the business problem and the outcomes the transformation is expected to change. Avoid using a chosen platform or a completed deployment as a proxy for impact.
- Give the business an early ownership role. Bring the leaders accountable for the affected business and customer outcomes into the work before scope and requirements are fixed. Make IT a partner in shaping the solution.
- Define scope, dependencies, and the future operating model. Decide what is changing, what must work together, and how people and processes should operate after the change. This is the point to distinguish a bounded technical upgrade from a wider transformation.
- Align decision rights and incentives. Clarify who can make decisions, who resolves conflicts between workstreams, and whether targets reward the shared outcomes the program promises.
- Set up integrated orchestration. Establish a team that can see cross-program dependencies, help remove bottlenecks, and adapt sequencing as conditions change. Keep execution teams empowered to deliver within the agreed priorities.
- Then evaluate enabling technology. Compare options against the business outcomes, scope, dependencies, sourcing approach, and operating model already agreed. Technology remains essential, but the decision should serve a defined transformation rather than stand in for one.
- Track adoption and impact as well as delivery. Leadership direction must remain visible and sustained, and teams need to assess whether the change is being adopted and producing the intended customer, employee, and business effects. McKinsey’s 2026 telco analysis emphasizes leadership and strategic direction, and identifies change-management specialists among potential partners for AI-driven reinvention.
Do failure-rate figures prove that telecom transformations usually fail?
No single universal telco failure rate is established by the figures cited here. McKinsey’s 2021 telecom blueprint states that 70 percent of all transformation efforts fail, while BCG’s 2024 article gives its estimate that more than 70% of digital transformations fall short of their objectives. The claims use different wording and scopes; neither should be recast as a measured failure rate for telecom transformations specifically.
They are reasons to take execution and organizational design seriously, not evidence that a particular vendor, platform, or system caused a program to fail. BCG recognizes that legacy systems can hinder innovation and responsiveness. The more precise point is that replacing or modernizing those systems is only one part of the work: unresolved scope, ownership, operating-model choices, incentives, and governance can undermine the broader change before implementation begins.
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