SYMPOSIUM 2016 : CONFÉRENCE 803 - REVIEW OF BUSINESS TRANSFORMATION FRAMEWORKS: A PROJECT MANAGEMENT PERSPECTIVE
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Business transformation is a radical and risky change approach that enables organizations to add substantial value and survive in face of increasing environmental pressures. To succeed, business transformations should be managed as projects. In academic and practice literature, frameworks were suggested to guide organizations through a business transformation journey. We analyze three business transformation frameworks from a project management perspective. We find that such frameworks could be seen as project delivery approaches. Nonetheless, project management knowledge areas are not evenly embraced by all frameworks. We conclude with a discussion on the practical and research challenges of the use of these frameworks BIOGRAPHIES Sedki Allaoui is a business optimization specialist at CN (Canadian National Railway Company). He has experience in manufacturing, transportation and supply chain industries. He acted as a change agent and project manager for various change initiatives such as information systems implementation, process improvement and organizational structuring. Recently, he is focusing on more radical change initiatives that transform organizations and enable their competitive advantage in face of business and economic turmoil. He is also a PhD candidate at Ecole Polytechnique de Montreal. His research is focused on developing a collaborative planning model for transformational projects. Sedki is a member of the OIQ (Ordre des Ingénieurs du Québec), a PMI student member, and an APICS student member. Academically, he is a member of the Jarislowsky / SNC-Lavalin Research Chair in the Management of International Projects, and of the CIRRELT (interuniversity research center on enterprise networks, logistics and transportation). Sedki has a bachelor in industrial engineering, and a master in technology management from Ecole Polytechnique de Montreal. He is also a certified lean project leader and six sigma green belt from McGill University.
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SYMPOSIUM 2016 : CONFÉRENCE 803 - REVIEW OF BUSINESS TRANSFORMATION FRAMEWORKS: A PROJECT MANAGEMENT PERSPECTIVE
- 1. Business Transformation Frameworks Sedki Allaoui PhD Candidate A Review From a Project Management Perspective Robert Pellerin PhD Mario Bourgault PhD Mathematics and Industrial Engineering Department Ecole Polytechnique of Montreal
- 2. Agenda Context Transformation : Definition & Key Success Factors Transformation Frameworks Project Management Perspective Conclusion 2
- 3. Organizations’ Context Global competition Constant pressure • Economy • Regulation • Technology • Etc. Increasing pace of change 3 Change is imperative for organizations’ survival
- 4. Why is transformation relevant ? Change initiatives • From incremental to radical • High failure rate : up to 70% Change approaches 4 Type of Change Incremental Radical Value & Risk Low Continuous Improvement Business Process Reengineering High Business Process Reengineering Transformation Transformation as a solution to radical & high risk change
- 5. What is Transformation ? Transformation is a radical change to various dimensions of the organization (people, process, information, technology). It aims to bring substantial added-value translated in fundamental changes in how work is done and how value is delivered. It is a complex and very risky endeavor 5 Purchase, V., Parry, G., Valerdi, R., Nightingale, D. et Mills, J. (2011). Enterprise Transformation: Why Are We Interested, What Is It, and What Are the Challenges? Journal of Enterprise Transformation, 1(1), 14-33.
- 6. Why do organizations transform ? Survive Thrive 6 OR
- 7. Levels of Transformation 7 Supply Chain Company Business Area(s) Business Unit(s)
- 8. Key Success Factors 8 Team Sponsorship Leadership Governance Collaboration Approach Holistic Integrative Program/Project Management Effectiveness before Efficiency Enablers Analytical Organizational Organization's Maturity
- 9. 9 To enact transformation’s success factors A framework is required
- 10. What Constitutes a Framework ? 10 Framework Principles Elements to uphold that ensure the transformation’s success Methodology Structured approach that guides the initiation, planning and execution of the transformation Organizational Enablers A governance and cultural ground to transform Analytical Enablers Set of practices and techniques to accomplish the required objectives of the methodology
- 12. Process Reengineering Methodology Kettinger, W. J., Teng, J. T. C., & Guha, S. (1997). Business process change: A study of methodologies, techniques, and tools. Mis Quarterly, 21(1), 55–80 12 S1 Envision S1A1 Establish management commitment & vision S1A2 Discover reengineering opportunities S1A3 Identify IT levers S1A4 Select Process S2 Initiate S2A1 Inform stakeholders S2A2 Organize Reengineering Teams S2A3 Conduct project planning S2A4 Determine external process customer requirements S2A5 Set performance goals S3 Diagnose S3A1 Document existing process S3A2 Analyze existing process S4 Redesign S4A1 Define and analyze new process concepts S4A2 Prototype and detail design of new process S4A3 Design human resource structure S4A4 Analyze and design information system S5 Reconstruct S5A1 Reorganize S5A2 Implement information system S5A3 Train users S5A4 Process cut-over S6 Evaluate S6A1 Evaluate process performance S6A2 Link to continuous improvement programs
- 13. Lean Transformation Roadmap Nightingale, D., & Srinivasan, J. (2011). Beyond the Lean Revolution: Achieving Successful and Sustainable Enterprise Transformation. New York, USA: AMACOM 13
- 14. Business Transformation Management Methodology BTM2 Uhl, A., & Gollenia, L. A. (2013). Business Transformation Management Methodology. Gower Publishing Limited. 14
- 15. Frameworks Comparison Process Reengineering Methodology Lean Transformation Roadmap Business Transformation Management Methodology Pros • Detailed for lower transformation levels • Tools & Techniques • Detailed planning cycle • Integration • Analytical • Balanced • Governance structure • Integration Cons • Not adapted for high level transformation • Influence of IT practices • Less focus on soft aspects • Less structured methodology • Conceptual guidelines 15
- 16. 16 Transformation frameworks are complementary One size does not fit all !
- 17. Project Management Perspective 17 Process Reengineering Methodology Lean Transformation Roadmap Business Transformation Management Methodology PMBOK Knowledge Areas Partial Coverage Partial Coverage Full Coverage Planning • Contingency approach • Focus on time and costs • Detailed • Includes Analysis and Design • 2 levels hierarchical plans • Governance • 3 Levels hierarchical plans • Conceptual
- 18. How Can We Use These Frameworks ? Transformation initiative delivery strategy • Adapt to context Structure the transformation initiative • Scope • Stakeholders Planning tools • Planning approach • Work Breakdown structure • Governance 18 Frameworks help structure and plan transformation initiatives
- 19. Challenges Organizations' culture and mindset • Style of leadership • Collaboration • Vocabulary and terminology Project Management maturity • Between organizations • Within each organization 19 Transformations are context specific
- 20. Conclusion Project management is crucial for transformations’ success Transformation managers • Balance analytical and soft skills • Adaptability • Collaboration 20
- 21. Thank you ! 21
Editor's Notes
- Present my self Present the research team Thank the participants of the symposium for their presence Thank the organizing committee of the event.
- Transition : First question would be why should get interested in transformation ?
- Last 20 years more that 80% of fortune 500 companies do not exist anymore : acquisitions or disappear Change is a choice no more : it is an imperative ! Transition : The pace of change has accelerated, but organizations have been dealing with change for quite some time.
- Especially since the 1990s various change approaches were developed The change required is becoming extremely radical and complex with high value returns and risks Provide an metaphor : change pace is accelerating, organization require more radical change and will take more risks to get higher value
- Focus on key words
- if transformation is that complex and risk, why do organizations transform? We can call it the driver for the transformation Survive : burning platform Thrive : leap and sustain market leadership
- When organizations transform, change happens at different levels The levels of the transformation are linked to the boundaries of the organization (or enterprise) targeted by the change Provide an example for each level : Supply chain : the organization, its customers and its suppliers. The automobile industry for example Company : one organization. A change that touches the organization in its whole : ERP implementation for a Medium and small companies Business Area : one revenue stream : bombardier aeronautics Business unit : one department or a process that includes various departments.
- The success factors are very similar to any change initiative, even any project with similar complexity to a transformation initiative. The right team that will design the right approach and leverage the right tools. It seems obvious. Common sense is not so common ! Key factors specific to transformations : Governance : crystallizes the sponsorship and leadership roles and responsibilities Holistic and integrative : look at all the aspects and integrate all practices Program and project management : not on the go opex oriented activities Effectiveness before efficiency
- How then can we make a difference ? How to enact success factors that are common in theory and not so common in practice ? One solution can be in frameworks !
- Transition : from scientific and practice literature we selected 3 frameworks for further analysis Present quickly the frameworks Compare them as transformation tools Compare them from a project management viewpoint
- Stage activity For each activity an inventory of tools and techniques Information system influence
- Cycle steps and goals Influence of systems engineering : focus on analysis and integration
- Influence of information architecture Concept of management discipline : value, strategy, change, project/program Meta-management approach : integration of different management disciplines into phases
- Let us compare them as transformation frameworks In summary : no framework is THE answer. Each will be more or less adapted to situations.
- Frameworks are somehow like recipes : they provide main ingredients and steps. To get the perfect dish, we need to adapt and adjust. Let now look at them from a project manager lens.
- Choice : PMBOK knowledge areas as analysis reference Knowledge areas to indicate how close are these frameworks to PM best practices and guidelines Focus on planning as a process group and key activity : for transformations planning is a key success factor (risk and complexity)
- Based on our analysis, here are some indications on how project managers and planners can leverage these frameworks to initiate, plan and execute transformation initiatives. In summary, the key word when using transformation frameworks would : context or adaption.
- In our research project, we worked with an industrial partner on adapting these framework for internal use. From our perspective, here are the main challenges or such an exercise