Overcoming Organization Hesitancy to Invest in Tech in the Face of Cost Reduction Measures

May 2, 2023
Consider using these tactics if you’re facing the challenge of overcoming organizational hesitancy when trying to implement new tech solutions.

When organizations implement cost-reduction measures, the addition of a new technology solution can seem entirely counterproductive.  However, forward-thinking leaders understand the power that investing in the right technology can have in not only driving value for their organizations but reducing costs in the long run.

By implementing various IT cost reduction strategies and being proactive in addressing concerns, employees and managers alike can ease the tension felt toward–and even create excitement around–adding new solutions to their existing tech stack.

Consider using these tactics if you’re facing the challenge of overcoming organizational hesitancy when trying to implement new solutions.

How to Get Buy-In for Technology Investments

Examine Current Solutions

In the past, organizations implemented SaaS solutions that focused on single capabilities to address specific challenges, resulting in huge tech stacks. Now, with a host of products at their disposal, legal, procurement, operations, and IT leaders have the opportunity to source solutions that address multiple pain points within one interface.

Reexamine your existing tech stack and analyze which products are providing your team with true value. You may find that some products’ capabilities no longer keep up with organizational demand, while others can be supplemented with newer technology. 

By eliminating obsolete programs and adding solutions that increase efficiencies and improve workflows, decision-makers can drive cost savings and add value to the organization overall.

Keep Conversations Centered On Efficiency

IT and finance teams will often see new technology solutions as one of two things: costly or cost-reducing. It’s your responsibility to frame conversations to ensure the latter. When presenting new technologies to stakeholders, keep efficiency top-of-mind and position new solutions as investments that will improve processes in both the short and long term. 

Not only does this help get buy-in for the implementation, but it also allows certain teams to justify themselves as profit centers that drive the business versus cost centers. 

For example, explain how it can take General Counsel teams two to three weeks to manually find provisions within contract reviews. However, by implementing contract-trained AI, they can complete this task in a day or two, giving them much more time to focus on other strategic tasks that contribute to the success of larger organizational goals.

Establish ROI 

Even when you can demonstrate the practical benefits of a technology solution, business leaders are still going to want proof that the money they’re spending, particularly when the business is working to cut costs, is going to be worth the investment.

Do your research and partner with your technology provider to gather data that establishes ROI early on in the buying process. This can include research statistics, such as Deloitte’s claim that an intelligence CLM can allow for a 60% cost reduction compared to traditional models, or demonstrations that use your own information to prove ROI right in front of you.

When you present real evidence that supports your investment, it’s much easier to get CIOs, CFOs, and other executives on board.

Get Naysayers on Board Early

There are always going to be people within your organization that don’t want to implement change or invest in new technology solutions. Rather than ignore them and rely on the “fear of missing out” to get them on board, address those people early on in the buying process.

Determine the specific reasons they are hesitant to implement the solution and show them, firsthand, how the product will be worth the investment and improve the day-to-day of those using it.  

When preparing for pushback, consider the current market and technological landscape. You may find that certain concerns are common across multiple teams. Be ready to ask questions like:

Is AI Going to Replace My Job?

With the huge rise in generative AI technology, it’s not entirely surprising to hear employees worried that they are concerned their position will be eliminated by software. If you’re looking to supplement your tech stack with AI, be sure to explain the role it will play within daily responsibilities in order to put employees at ease.

Although AI had been implemented within a variety of industries, it is there as an assistant, to make the lives of those using it easier and more efficient. Human checks are still needed to ensure that other variables, such as organizational ethics, are correct. 

When would we even implement it?

Especially when teams are balancing high workloads, the idea of taking time to implement  new SaaS product can be daunting. 

Remind employees that, since the solution will help improve efficiencies, the sooner they implement it, the sooner teams will be put in a better position. While the present-day team may feel a bit stressed at taking time to implement technology now, their future selves will thank them.

Investing in AI That Delivers Value

In the face of cost cutting measures, bringing forward new technology solutions requires strong due diligence to ensure you’re proposing a product that delivers real value for your organization. 

Evisort empowers enterprises and growing companies alike to transform their business with AI-powered contract analytics and contract lifecycle management. 

Whether you’re looking to establish CLM or enhance your existing program with connected contract data, our technology helps you accelerate operations, gain visibility into your vendors and agreements, and drive business goals more efficiently than ever before.

Schedule a demo with our team to begin supercharging your enterprise.

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can help your team

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