The Hidden Cost of “Shadow Systems”
- Doug Ehlert
- Oct 7
- 2 min read
Every agency has them, Excel trackers, Access databases, or ad-hoc tools that quietly keep the operation afloat. They fill the gaps between big systems and real work. They’re fast to build and tailored to the individual's or team's needs.
The problem is they also create a second layer of reality that leadership rarely sees.
The two sets of metrics
Official dashboards tell one story: project counts, turnaround times, budgets, and team performance. Meanwhile, the other insights and metrics live in spreadsheets tucked away on shared drives, tracking what people actually measure to stay sane OR what they think the true organizational metrics should be. These “shadow metrics” evolve because the core system doesn’t capture something important, such as context, exceptions, or nuance.
Over time, the organization ends up managing two truths:
The system of record that’s tidy but incomplete.
The shadow system that’s messy but trusted by individuals.
Why this matters
Shadow systems aren’t just a technical issue, they’re a signal. They reveal friction between how work is designed and how it’s really done. They also hide risk: redundant data entry, version drift, security gaps, and key knowledge trapped in a few minds.
Years of institutional wisdom can vanish when a team member leaves or a file corrupts.
Bringing them into the light
The answer isn’t to shut these systems down. The answer is to study them. Start by asking:
What problem was this solving that the main system didn’t?
Who updates it, and how often?
What’s at risk if it disappears?
Treat every shadow system as a prototype. It’s a map of where your enterprise tools are falling short. The goal is to integrate what works in your mainstream enterprise tools, not to scold the people who made it work.
A better way forward
When agencies take time to analyze their shadow systems before replacing them, they build stronger foundations for modernization. The hidden work becomes visible, and transformation efforts actually meet people where they are.
Real digital transformation starts with analysis and a clear picture of how teams are actually working to meet organizational goals.
Ready to ensure your digital transformation actually transforms your business? Let’s talk about how to align your technology investments with outcomes that matter.
Phone: (262) 758-1135 (Doug's Cell)
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