CRITICAL FACTORS FOR BUSINESS TRANSFORMATION SUCCESS

Transcription

1 Consulting: Projects and Programmes CRITICAL FACTORS FOR BUSINESS TRANSFORMATION SUCCESS Andy Murray

2 Strategic context the role of the board in transformation The Board of an organisation is only responsible for two things: providing strategic direction and holding management to account for delivering the strategy. These two responsibilities cover both the running of the organisation and the changing of the organisation. Business Unit Objectives Run the organisation Change the organisation Vision Line Management Objectives Opex targets Operations Services Functions Change initiatives Projects Programmes Change Objectives Capex targets

3 Strategic context - governance of change No Governance Principles 1 The board has overall responsibility for the governance of programme management 2 The organisation differentiates between programmes and business as usual 3 Roles and responsibilities for the governance of programme management are clearly defined 4 Disciplined governance arrangements, supported by appropriate cultures, methods, resources and controls are applied throughout the programme lifecycle. 5 There is a demonstrable, coherent and supporting relationship between the programmes and the business strategy and policies, for example ethics and sustainability 6 All programmes have an approved plan containing authorisation points at which the business case, inclusive of cost, benefits and risk is reviewed. Decisions made at authorisation points are recorded and communicated 7 Members of delegated authorisation bodies have sufficient representation, competence, authority and resources to enable them to make appropriate decisions No Governance Principles 8 Programme business cases are supported by relevant and realistic information that provides a reliable basis for making authorisation decisions 9 The board or its delegated agents decide when independent scrutiny of programmes or programme management systems is required and implement such assurance accordingly 10 There are clearly defined criteria for reporting programme status and for the escalation of risks and issues to the levels required by the organisation 11 The organisation fosters a culture of improvement and of frank internal disclosure of programme management information 12 Programme stakeholders are engaged at a level that is commensurate with their importance to the organisation and in a manner that fosters trust 13 Programmes are closed when they are no longer justified as part of the organisation s portfolio The former CEO of the APM, Andrew Bragg said: there is no such thing as a failed programme, only failed governance.

4 Critical factors in the governance of change look for these Strong Leadership Clear Scope, Aims, Benefits Strategic Alignment Skills & Expertise Living the Values Time Cost Quality Assurance Stakeholder Commitment Robust Governance & Controls Clear Roles & Responsibilities OGC s causes of confidence, 2010

5 Critical factors in the governance of change avoid these Poorly defined or poorly communicated vision Insufficient board level support Leadership is weak Unrealistic expectations of the organisational capacity and capability Insufficient focus on benefits Organisation fails to change its culture Insufficient engagement of stakeholders No real picture (blueprint) of the future capability An incorrect toolset is used OGC Common Causes of Failure, 2006

6 Selecting the right toolset RSM UK Projects Programmes Portfolios Characteristics Delivering incremental change Driven by specification of products to handover Scoped and bounded by outputs Predefined path Benefits usually realized after project closure Delivering step-change in capability / business Transformation Driven by vision of end state to be achieved Scoped and bounded by benefits Perhaps no pre-defined path Benefits realized during and after the programme Overall strategic perspective of the whole organization Driven by goal to optimise the organization s investments given finite resources Portfolio is not defined by an end state Scoped by the strategic goals of the organization Continually changing and aligned to the strategic goals Finite lifespan (temporary) Perhaps undetermined lifespan (temporary) Continuing lifespan (permanent) Management focus Control of activities to deliver outputs to time, cost, quality targets Managing dependencies between products Product integration Delivering outcomes to achieve benefits targets Managing dependencies between projects Integration of people/systems/organization ( Blueprints ) Investment decisions (Prioritisation/selection) Demand/Capacity Management Resource optimisation / allocation Tracking Benefits Managing product handover Managing transition/change Managing extra-dependencies Removing ambiguity Managing ambiguity/adapting to change Ensuring changes are aligned to strategic objectives

7 What about complex transformation?

8 Assessing complexity - National Audit Office Delivery Environment Complexity Assessment (DECA)

9 Treating complexity

10 Other consideration for complex transformation How to treat complexity from both behavioural and systems perspective. As compliance increases, performance should increase, if not why? Is the project within inherent capability of the organisation?

11 Finally, avoid looking for silver bullets RSM UK Individual perspective Project perspective Organisation perspective Behavioural competence The personal attributes required for project based working The temporary team working together The corporate culture for project working, e.g. matrix management Technical competence Project management specific techniques such as planning, estimating Methods for managing a project Frameworks for deploying, maintaining, and supporting methods and techniques Contextual competence Domain specific knowledge such as finance, legal, HR Methods specific to the project purpose, e.g. software development lifecycle models Commissioning and tracking the best set of projects to achieve strategic goals

12 Summary Understand context of transformation Understand and factor/treat complexity Understand and factor/treat organisational capabilities Avoid looking for silver bullets The reason you will fail is not new The reason you will success is not new

13 CRITICAL SUCCESS FACTORS FOR BUSINESS TRANSFORMATION SUCCESS THANK YOU 13

14 RSM - Project and Programme Management Andy Murray Partner Head of Project & Programmes Andy.murray@rsmuk.com With expertise spanning the corporate, public and third sectors, we have the breadth to truly understand the circumstances of our We help clients manage their projects, clients. programmes, procurements and Our service leaders are charged with coupling this sector knowledge with contracts the skills and better subject matter - quicker, experts who for have less much money, experience in analysing, developing and implementing interventions in their area of specialism. with greater impact and improved stakeholder confidence. Blended teams of people with deep sector and service capability enables the delivery of informed, relevant and practical help. Walter Akers Partner Head of Contract & Procurement Walter.akers@rsmuk.com