Keeping benefits management simple, workable, and alive in BT

BM in BT Transformation Keeping BM simple, workable, and alive

in BT

Sheffield Hallam University

Viren Lall

Secretary APM Benefits SIG

Head of Business Transformation, BT

12th March 2013

Topics

• Context Setting BT & transformation

• Spotlight on BM and change

• Keeping BM Simple and “owned”

BTGS revenue by sector 2011/12

Who are BT Global services customers? Experience and track record of delivery with a wide range of customers globally

© British Telecommunications plc Our customers 3

A global leader in managed networked IT

services

We serve:

• 87% of the FTSE100 companies

• 64% of the Fortune 500 companies

• 90% of Interbrands’ annual ranking of the

world’s most valuable brands

• the world’s top stock exchanges, leading

broker-dealers and biggest banks.

• We also supply services to national and

local government organisations and other

public sector bodies in the UK and in 16

countries around the world.

Experience, and a track record

• Around 7,000 corporate and public sector

customers across more than 170

countries

• Widely recognised as market leader by

industry watchers

BTGS’s vertical initiatives

represent an industry strategy that

is fully integrated with its global

MNC efforts.

Ovum 2011

47%

26%

18%

6% 3%

Corporate customers

Public sector (UK and overseas)

Financial institutions

Transit

Other global carrier

Our customer references Examples of some of our customers from 2011/12

© British Telecommunications plc Our customers 4

Global – April 20121 Pan-European – April 20122

1 Gartner, Global Network Service Provider Magic Quadrant, Neil Rickard and Robert Mason, April

2012 2 Gartner, Pan-European Service Provider Magic Quadrant, Neil Rickard and Katja Ruud, April 2012

This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report.

The Gartner report is available upon request from BT. Gartner does not endorse any vendor, product or service depicted in its research publications, and

does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's

research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this

research, including any warranties of merchantability or fitness for a particular purpose

BTGS - a Global Leader A leader in Gartner’s Network Service Provider Magic Quadrants

A global leader

5

Business Transformation

Business transformation is a leadership initiative, typically by the

senior management team, that aims to align an organisation's

initiatives with the organisation’s business strategy and vision.

Value is generated through monetising operational efficiencies

gained.

The benefits of a business transformation programme are

typically expressed as an end state (for example) 50% increased

revenue, 30~% cost reduction or margin improvement, reduction

in end to end cycle time for service delivery by 10 days, a measure

of quality, or 25% improved in customer satisfaction scores.

What do I do in BT • Run Business transformation hothouses 3 day events 50-70

people to achieve outcomes

• Coach/Mentor managers on requirements, benefits, change

• Lead teams of architects, Business Analysts, change managers,

Transformation professionals, developers, PMO, operational

stakeholders, COOs, VP teams

• In brief define stages of transformation and drive transformation. 2

transformation programmes 2300 and 900 people.

• My responsibilities include

• Defining Transformation Strategy

• Enabling Benefit Realisation and maximising opportunity

• Advising on Change

7

Topics




Business Transformation failures are multi

stage

9

Defining the transformation

strategy.

Developing a benefit realisation

plan

Implementing the plan

Target Operating Model operational

Same Operating Model

Dashboard for leading indicators

and benefits

Strategy

Complex. Lofty. Not coherent

Underpinning Transformation Benefits

Not rigorous. Not shared. Nor Agreed

Execution

Failures in Project , Programme, and Change

Business Transformation failures -

common causes

10

Strategy

Complex. Lofty.

Not coherent

Underpinning

Transformation

Benefits

Not rigorous. Not

shared. Nor Agreed

Execution

Failures in Project ,

Programme, and Change

1. Fluff

2. Goals

3. Hierarchies

4. Not linked to

a challenge

1. Focussed on delivery

2. Delivery of tech and

benefits will happen

3. No line of sight to

realisation

4. No accountability

1. Project failure

2. Stakeholder

management failure

3. Poor implementation of

change management

BT has an active BM practice…

© British Telecommunications plc 11

BM is required skill for PPM and Business Advisory

community

Online courses

SME Group

Membership of APM/ BM SIG etc.

We have adopted the Cranfield method and adapted it a

while ago

Finance community that look for benefit maps in business

cases!

Huge awareness

It would be non PC not to play lip service to BM

But BT still faces issues in BM.


Consultants map “benefits” (recommendations)

Business analysts map requirements

Architects map solutions

Truisms

Dave Reynolds “last switch” law of benefit realisation (CIO BT Global services): benefits will only get realised when the last technical deliverable and full business change is complete.

The weakest professionals run the business change: the post delivery PM teams

From Peter Glynne

What is the single biggest hurdle of BM

adoption?


Our ability to “map” benefits, everything else can follow

People have the knowledge, guidance

We have to remember

– Awareness ≠ Skill

– Knowledge ≠ Skill

Even adoption BM is a change

15

So do people resist change?

People resist being changed

People definitely resist the ambiguity of change

More often than not its lack of awareness and/or

skill and people will most definitely resist moving into

areas beyond their capability

Topics




What are we doing to address this? Simplify the capability


30 minute primers followed by hands on surgeries on individual

projects v/s 2 day offsite training

Specialist move into support/mentoring role

Not for PPM community only, business analysts, market leads,

architects

Being 80% correct on mapping and 100%

owned has a greater chance of realisation,

than 100% correct map (which will change in

any case within a years reality)

What are we doing to address this? Clear direction


First map

Then quantify

And then maintain

What are we doing to address this? Motivating the transformation professionals


Typical Consultant approach reduces benefit landscape as

programmes are built.

Find more benefits: Show them a way. A 2-3 hour session produces

a credible map on a Workstream

On-going tool for emergent benefits along lifetime

Don’t run Benefit modelling as PMO central function

Keeping it Simple 30 second rule


Capability (ENABLER)

BusinessChange

Outcome

CORE CSDK

FUNCTIONALITY

Bill of Materials,

costing, pricing,

approval stage,

workflow, task

allocation, templates,

order gateways

Interlock with CS

“provisioning” stack

Reduction of manual

overhead in CS to create a

new “order” ready request

from the received CAF

Benefits/ Disbenefits

Delivery PM in T4/5

places the order when

ready instead of returning

an approved CAF (Order

gateway stage reached)

Reduction of manual billing

for finance transfer* (TBC)

in Keith Browne's area.

Reduction in PI in for MoU

related internal transfer for

orders for T4/5 customers

Integrated billing and

inventory update to T4/5

customers

Reduction in PI effort in CS

for CS ordering stage

Consistent jeopardy

management, order tracking

as specified in Delivery

mgmt. dashboard

Delivery manager sees the

order status of the CS

portion as a part of bigger/

complete project for the

customer

Reduction in PI effort in

Delivery management

function for CS orders

Easier costs reconciliation

for transfer charges because

cost and pricelines and

order details are in one

place. On a single asset key

Reduction in costs

reconciliation for internally

charged items

This is neither encouraged nor tolerated


Reduction of maintenance costs

Reduction of engineer visits 1

Decrease workload in e-records

Leader inCSAT

Leader inCSAT

FlexibleOrganisation

FlexibleOrganisation

Ben

efits

Dep

ende

ncy

Net

wor

kChange In

Working PracticeEnabler Feature Benefit Objective

frame e-side port -technology type

attribute

Sales force target spare capacity areas effectively

Spare rack and card space information

available

All planning data available in all geographies

All technologies can be planned in one

system

Restore not repairDuct/Fibre/ Tribseperacy information

avalable

Provide the maximum capacity of a element

Automation of straightforward planning via rules(rack,

shelf,...)Automated planning

rules

Enable multi skilled planners(cross domain)

Sell services not technology (alternative routes / medium)

Conform to the governments Streetworks initiative.

demographic information

Engineers can update Network Engineer

from the field

Flexible People

An e-2-e physical view of the physical

network

Engineers can download detail maps

for each job

Provision of 1141 code

Automated provision frame connections

Automatic ability to route over and

allocate planned fibre

access & core physical planning can

be done together

Engineers update records accurately while on site

Engineers enabled to resolve faults when they find them

Engineers recognised for proactive jobs

Continuous focus on information quality

Cross geography preventative maintenance programme

Engineers get accurate & graphical information at point

of need

Use capacity & service availability at POS

Invest in strategic and not tactical solutions

Value the capture & maintenance of accurate data

Improved data quality (volume & accuracy)

Operationally effective &profitable

Operationally effective &profitable

Flexible &Empowered

People

Flexible &Empowered

People

Exploit theNetworkProfitably

Exploit theNetworkProfitably

Piper / TCP -Field

engineer client

Piper / TCP -Field

engineer client

Piper - GIS (streetworks)

Piper - GIS (streetworks)

Piper -Internal Plant

Piper -Internal Plant

BMS - frame / port

attributes

BMS - frame / port

attributes

BMS - Fibre allocation

BMS - Fibre allocation

Planning

Increased planning efficiency

Decreased hand-offs

Decrease ELF & DOA

Meeting provisioning SLAs

Decreased inbound & outbound customer contacts

1

3

1

1

1

2

Faults 2

Reduce lost assets(both capacity & equipment)

Reduce overall fault rate

Faster fault location and restoration.

2

2

2

1

Faults 2

Reduce lost assets(both capacity & equipment)

Reduce overall fault rate

Faster fault location and restoration.

2

2

2

1

Reduced new build

Reuse of recovered plant

Reduce existing internal plant footprint

Internal Plant

Reduced new build

Reuse of recovered plant

Reduce existing internal plant footprint

Internal Plant

1

2

1

1

Reduction of development costs

Reduction of localised system development /

Licences

Reduction of interfaces / Modular OSS

Flexible Systems / Eased replacement

Systems 1

1

2

3

3

2

Engineering

1

1

2

Accurate & detailed Streetworks info

Increase sales & up-sell

Increased commitment at point of sale

Create new service offerings

Sales

Meet the provisioning CDD(customer due dates)

Decreased Penalty costs

1

2

3

2

3

2

Decreased Fines (from regulator....) 1

More accurate proactive planning (using customer data)

Enable multi skilled planners(cross geography)

3

Intelligent appointing

Access to BTW engineer diaries

Increase automated provisioning (frame jumpers)

less planning

Concluding…


Transformation programmes fail, lack of benefit management is but

one cause.

How we rate ourselves and our skills, and whether they are used to

empower others. People don’t take kindly to zealots

Ownership buy-in, simplicity and keeping it alive are far more

important than being 100% correct

Tackle adoption of BM practice first before tackling the change

underpinning the benefit

It’s more than the knowing doing gap - its knowing (but not how

to) doing gap that stalls adoption (BM) stalls realisation

Delighted to say that APM BM SIG has taken the plunge

to run “how to” mapping workshops. Watch this space

Tips: backup

Supporting stakeholder engagement – top 10 tips

• Build the benefits map collaboratively - gets buy-in and helps delivery team

to visualise the benefits. Resist – discouraging them from producing it! You will be surprised

– walking in with a complete product – it prevents them from being overwhelmed

– Creating it offline and bringing it back – you miss the golden chance of them owning it as a

part of the creative process. Ownership supports accountability for realisation

• Build iteratively within projects and work-streams for large programmes and

then aggregate

• Be firm about the conventions for producing the maps, but not at the cost of

being a barrier to production

• Invest time in smartening maps to create clear communication tools

It is an intuitive, logical tool and when executed well produces fabulous results

Supporting stakeholder engagement – top 10 tips

• Prepare stakeholders for Benefits Realisation Management with short

briefing sessions

• Understand their objectives, explain it’s a non linear process and get them

to own the results of the finished product

• Use benefits maps to communicate actively through to your stakeholders

groups

• Quantify in benefits profiles and record in benefits register

• Having achieved consensus, assign responsibilities and accountabilities

both for tracking and for realisation

It is an intuitive, logical tool and when executed well produces fabulous results

Keeping benefits management simple, workable, and alive in BT

Business

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