CRITICAL FACTORS FOR BUSINESS

TRANSFORMATION SUCCESS

Andy Murray

Consulting: Projects and Programmes

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.

Run the organisation

•Operations

•Services

•Functions

Change the organisation

•Change initiatives

•Projects

•Programmes

Business Unit

Objectives

Line Management

Objectives

Opex targets

Vision

Change Objectives

Capex targets

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”.

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

Critical factors in the governance of change – avoid these

OGC Common Causes of Failure, 2006

Poorly defined or poorly

communicated vision

Insufficient board level support

Leadership is weak

Unrealistic expectations of the

organisationalcapacity 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

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

Finite lifespan (temporary)

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

Perhaps undetermined lifespan (temporary)

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

Continuing lifespan (permanent)

Management focus

Control of activities to deliver outputs to

time, cost, quality targets

Managing dependencies between

products

Product integration

Managing product handover

Removing ambiguity

Delivering outcomes to achieve benefits

targets

Managing dependencies between projects

Integration of people/systems/organization

(‘Blueprints’)

Managing transition/change

Managing ambiguity/Adapting to change

Investment decisions

(Prioritisation/selection)

Demand/Capacity Management

Resource optimisation / allocation

Tracking Benefits

Managing extra-dependencies

Ensuring changes are aligned to strategic

objectives

© RSM UK

Selecting the right toolset

What about complex transformation?

Assessing complexity - National Audit Office

Delivery Environment Complexity Assessment (DECA)

Treating complexity

Other consideration for complex transformation

As compliance increases,

performance should increase,

if not why?

Is the project within

inherent capability of the

organisation?

How to treat complexity from

both behavioural and systems

perspective.

Finally, avoid looking for silver bullets

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

competenceDomain 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

© RSM UK

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

CRITICAL SUCCESS

FACTORS FOR BUSINESS

TRANSFORMATION

SUCCESS

THANK YOU

13

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RSM - Project and Programme Management

We help clients manage their projects,

programmes, procurements and

contracts better - quicker, for less money,

with greater impact and improved

stakeholder confidence.

Head of Contract &

Procurement

Walter.akers@rsmuk.com

Walter Akers

Partner

Head of Project &

Programmes

Andy.murray@rsmuk.com

Andy Murray

Partner