Leading Practices in Business Transformation

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1 Leading Practices in Business Transformation Stick To The Game Plan Business Transformation Conference October 2013

2 While the typical risks and challenges seem intuitive, why do business transformation efforts consistently neglect the up-front planning that could solve many of these problems? Initiation Planning Execution Implementation Small issues here Can create big problems here Typical Risks and Challenges 85% of critical, high-stakes business initiatives fail when key issues are not addressed Impact 1 in 6 have a cost overrun of 200% and a schedule overrun of almost 70% 32% of business transformation projects finish on time and on budget Source: Vital Smarts (2006), Harvard Business Review (2011), Chaos Report (2009) 2

3 We believe there are five key areas where you can identify major business transformation execution challenges early, and manage them throughout the program lifecycle 2 leadership and ensure stakeholder engagement 3 Develop a strong oversight team and engagement framework 1 Articulate program vision, scope and the business case for change 5 Tightly align Business and IT strategies 4 Clearly define your business model and assess change impacts 3

4 Know your parameters 1 Articulate program vision, scope and the business case for change Start with Phase 0 Phase 0: Set future vision Define scope Align on expectations Build and track the business case Establish foundation Business case Measure what matters and act accordingly Metrics Track cost vs. benefit Make it stick You must start with a clear, large-scale vision of what you want to accomplish, but you must also be prepared to refine that vision into a viable undertaking 4

5 Executive cooperation is a must 2 Align leadership and ensure stakeholder engagement Manage people and change from Day One Define change plan Great change requires involved and unified leadership Owners and champions Engage stakeholders proactively and continuously Validate thinking and ideas Manage expectations Identify advisors The organization must be convinced that your future state business model is well-defined and workable Empower your stakeholders Informed decisions Align stakeholders at all levels Define WIIFM 5

6 Invest in strong program management capability from the start 3 Develop a strong oversight team and engagement framework Get the right management on board Use your best people Effective governance can help you stay the course Be ready Help day-to-day personnel move into new roles Decision-makers Skills and experience Defined role Clear accountability Phased approach Illustrative Governance Model Executive Sponsor Steering Committee Cross-Functional Business Team Business Transformation Team Technology Day-to-Day Working Team High-level buy-in and goodwill throughout the organization are important, but successful program execution relies upon a carefully designed oversight framework and effective program controls 6

7 A holistic strategy is critical 4 Clearly define your business model and assess change impacts Avoid the back of the envelope approach Define your target business and operating model Target Operating Model Build a holistic understanding of future state All elements are integrated, guide process design and integration Don t be near-sighted Make timely, informed decisions, choices and trade-offs Be nimble and flexible Plan can accommodate issues, dependencies as they arise Enhance the employee experience Engage employees as SMEs to promote a sense of ownership Project success is defined by use, not just implementation 7

8 Business and IT implementation teams must drive the same business goals 5 Tightly align business and IT strategies Dig deeper Focus on value creation Use business objectives to define/validate requirements Establish linkage Business leads, but IT advises Act as Technical Advisor Understand that business needs evolve Be flexible Focus on requirements excellence Invest in design To maximize success, business and IT must work together to develop robust business requirements and integrate them with overall technology solution 8

9 The right steps, at the right time, can lead to success Act Early Initiation Planning Execution Implementation Illustrative Discussion Questions Have you clearly defined what constitutes success? Do you have explicit and manageable expectations? How will you track your progress and performance? What oversight mechanism is in place to provide effective program control? Does your team have the right skills and experience? Are business objectives linked to robust business requirements? How will you engage formal and informal stakeholders from design through to implementation? How will your communication plan build to prepare for implementation? How does this program fit relative to other initiatives? How does your training plan intend to build on these changes? What parameters are in place to support initial change resistance efforts? What governance model and metrics will track program success moving forward? 9

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