• New research of 150 enterprise IT leaders highlights psychological challenges of modernization 
• Nearly three-quarters (71%) of respondents said modernization was stressful 
• Over a quarter (27%) worry that if the technology they endorse fails to meet expectations, employment may be terminated
• Over half (57%) of IT leaders stated they had considered advocating for a major investment in legacy modernization but ultimately decided to delay the project. 

New research by Mechanical Orchard highlights the extent of the psychological and practical barriers enterprise IT leaders face when modernizing legacy IT systems. 

If it ain't broke, don’t fix it

The research found there was a clear acknowledgement that a visionary mindset is an important attribute needed for successful modernization (55% agreed). However, only 28% of respondents felt a willingness to experiment and take risks was important in their role. A quarter (26%) admitted to applying the old adage “If it’s not broke, don’t fix it” to decision-making. Curiosity (19%), persistence (24%) and self-awareness (27%) were also considered the least important leadership attributes. 

Adaptability (61%) and ability to influence (45%) were considered among the most important factors for successful modernization. 

Joy of Missing Out?

Fear, internal politics, and bureaucracy play major roles in deciding the outcomes of modernization projects. 

C-level respondents are 82% more likely than senior management to believe that ‘Joy of Missing Out’ (JOMO) or - “I might get fired if I do something that winds up being unsuccessful” is a reason for modernization failures. Almost a fifth (15%) attributed ‘Fear of Missing Out’ (FOMO) i.e. “I might get fired if I don’t do something” to successful legacy modernization strategies.

A quarter (24%) have concerns that if the technology they back falls short, their career or leadership trajectory would be harmed and some fear this could even lead to the termination of their employment (27%). 

Over a quarter (27%) of IT leaders say fear of moving away from the security and stability of legacy infrastructure is stifling modernization efforts. 

All these factors have resulted in over half (57%) stating that they had considered advocating for a major investment in legacy modernization but ultimately decided to delay the project. 

Internal politics a constant headache

Even if IT leaders have ambitions to modernize, over a third (37%) say conflicting organizational views and agendas and a lack of support from the organization’s leadership can hinder this. Three in ten (29%) also raised concerns about lacking peer support in gathering support for a technology or an approach. 

It appears senior management (Director level) is also frustrated with the state of play. In contrast to C-suite (36%), 41% of senior managers cited risk aversion as a common reason for modernization failure. Likewise, senior management is more than two times (2.1x) as likely than C-suite to blame the pressure to purchase low-quality, quick-fix solutions aimed at immediate gains, on modernization failures (38%  agreed). 

Other reasons for failure include an organizational culture that isn’t open to change (40%) and skepticism as to whether the legacy modernization will produce a return on investment (39%). 

All these factors are taking a toll on budgets - 47% of all respondents cited budgetary constraints as the main cause of failed modernization strategies. With IT leaders also fearing that budgets will be lost if modernizations fail (33% agree), a vicious cycle emerges. 

Commenting on the research, Rob Mee, CEO of Mechanical Orchard said “There is a reason we call legacy IT modernization ‘the last great IT challenge’. Not only are the practicalities of migrating enormous and clunky, yet vitally important, systems onto modern infrastructure incredibly challenging, but, for the IT leaders in these large organizations, the psychological burden of having this on your plate is almost as difficult to overcome. There is often no clear route forward, so it’s understandable so many choose to keep kicking the can down the road. With boardroom demands growing for new AI applications and platforms which drive new commercial opportunities at odds with the capabilities of the system, the big question is, have we run out of road?”

You can read the full report here.

About the Research 

• Research conducted by TechTarget’s Enterprise Strategy Group. 
• Survey of 150 Senior IT decision makers (C-suite to directors) across large enterprises (2,000+ employees) and >$1 billion total annual revenue. 
• North America (US, Canada, 67%) and Western Europe (UK, 33%) 
• Multiple industry verticals across the public and private sectors.
• Field dates: 4/2/2024 - 4/24/2024.
• 82% of respondents had undergone a legacy modernization project in the last 12 to 24 months.