The Sage Wisdom series is produced by Victoria Fide Marketing with input and oversight from our leadership team and industry SMEs.
Abraham Lincoln was the 16th President of the United States and is widely regarded as one of the greatest presidents in American history. Lincoln’s greatest accomplishment was his leadership during the American Civil War, which lasted from 1861 to 1865.
In 1864, in a letter to then-Secretary of War Edward Stanton, President Lincoln shared what has become a well-known quote, “You cannot escape the responsibility of tomorrow by evading it today.” His quote offers wise words for today’s technology leaders struggling with legacy drag in their IT departments.
Legacy drag refers to the drag caused by older software or technology that hasn’t been optimized or updated to take advantage of current technological advancements. This failure to modernize not only affects current operations, but can continue to negatively impact a company many years into the future. A good example of this long-term impact is the solid rocket boosters used on the Space Shuttle Enterprise. They were built to be no bigger than the width of two horses’ rear ends because they had to pass through a 19th century mule train tunnel in Utah on their way to the launch pad. NASA was forced to make design decisions about space travel based on engineering decisions from the early 1800s.
Just as President Lincoln’s quote encourages individuals to address their responsibilities promptly, business leaders must recognize that evading the modernization imperative can hinder progress, decrease competitiveness, and inhibit innovation. Embracing forward-thinking strategies and investing in new technology is essential to future-proof businesses, ensuring their ability to thrive and adapt in the ever-evolving market landscape. This article examines the risks of not dealing with legacy drag head-on and what you can do today to position your business for future success.
The Burden of Legacy Drag
It’s tempting to avoid change, even if new approaches to technology are clearly better. Imagine that a business invested in client server technology decades ago. Then, many years later, their company experienced a growth spurt. They see the need for a new system, but they think, “We’ve invested heavily in hardware. It would be a huge shame to throw everything away.”
Instead of moving to the cloud, they decide to continue running their old system. Their plan is to incrementally improve in an effort to gradually replicate the cloud. But eventually, the return on investment (ROI) diminishes as maintenance costs and security risks increase while compatibility and scalability decrease. The smarter decision would have been to invest in new technology that will see them through the next 20 years or so.
The financial consequences of carrying the burden of legacy systems can be substantial. Organizations may face higher maintenance costs due to the scarcity of skilled personnel familiar with outdated technology. Moreover, productivity may suffer as employees grapple with inefficient processes, leading to higher labor expenses and missed opportunities for growth. Operational impact can be equally detrimental with potential delays in critical operations and an unsatisfactory customer experience. In some cases, a company’s legacy drag may be substantial enough to render the company obsolete, resulting in bankruptcy.
Free PDF Download
In the rapidly changing digital landscape, more and more companies are desperately trying to keep up with the competition. Download “The 10 Biggest Mistakes Businesses Make in Digital Transformation” for free today to learn how to use DX to radically transform your business and gain an edge over your competitors.
Uncovering the Barriers to Modernization
Technology modernization efforts are often hindered by various forms of resistance within an enterprise. This resistance may originate from employees, departments, or even management. Common forms include inertia – the sentiment of, “this is how we’ve always done it,” which resists change due to familiarity with existing processes. Additionally, there might be a lack of understanding about the benefits of modernization, a reluctance to invest in new systems, or concerns about the disruption it may cause to established workflows.
The psychological factors that contribute to resistance and fear of embracing new technology are significant barriers. Employees may fear the unknown, uncertainty about their roles in the new processes, and anxiety about adapting to unfamiliar systems. Risk aversion plays a role too, as decision-makers may be apprehensive about potential disruptions to business operations during the transition period. The fear of failure and its consequences can be a powerful deterrent to technology modernization.
4 Strategies for Overcoming Legacy Drag
Businesses can effectively overcome legacy drag by implementing these four strategies – creating a modernization roadmap, engaging stakeholders, cultivating a culture of innovation, and addressing change management and training needs.
Creating a Modernization Roadmap
To overcome the burden of legacy drag, businesses must develop a comprehensive modernization roadmap. This involves a thorough assessment of existing systems, identifying pain points, and prioritizing upgrades based on immediate needs and long-term goals. Setting achievable milestones and clear objectives will guide the process, ensuring a smooth and efficient transition to modern technology solutions.
Engaging Stakeholders and Obtaining Buy-In
Stakeholder involvement is crucial for successful modernization efforts. Business leaders should engage employees, departments, and management in the decision-making process to fully understand concerns and expectations. Effective communication is the key to obtaining buy-in, as it fosters understanding and support for the modernization initiative. By addressing stakeholders’ feedback and aligning their interests with the business’ vision, the path to overcoming legacy drag becomes a collective effort.
Cultivating a Culture of Innovation
Fostering a culture of innovation is essential to break free from the shackles of legacy drag. Business leaders must encourage an environment that values adaptability, creativity, and a forward-thinking mindset. By celebrating technological advancements and rewarding experimentation, employees are more likely to embrace change and actively seek innovative solutions to business challenges.
Addressing Change Management and Training Needs
Change management practices play a pivotal role in ensuring a successful technology transition. Effective change management involves equipping employees with the necessary training and resources to navigate new technologies confidently. Training programs should be tailored to individual roles and learning styles, empowering employees to leverage the full potential of modern systems. By providing ongoing support and guidance, businesses can mitigate resistance to change and foster a smooth, efficient adoption of new technologies.
Navigating Success in an Ever-Changing World
In today’s dynamic business environment, acknowledging tomorrow’s responsibility and addressing legacy drag are critical for ensuring an organization’s continued success. As Abraham Lincoln wisely stated, “You cannot escape the responsibility of tomorrow by evading it today.” In the same way, leaders must confront the challenges posed by outdated systems and technology today to ensure a more streamlined and technologically aligned tomorrow.
While avoiding change may seem like the safest choice at the time, the long-term benefits of modernization include increased efficiency, agility, better security, and a workplace that encourages and fosters innovation. Avoiding change today simply leads to higher costs, reduced productivity, and missed opportunities for the future. Embrace Lincoln’s wisdom and adopt a forward-looking strategy for sustained growth and competitiveness in an ever-changing world.
Subscribe to our weekly LinkedIn Digital Transformation Success newsletter featuring our Sage Wisdom articles and get notified of each new edition.