BUSINESS TRANSFORMATION

The client, a UK based plc with global presence, provides support services to manage complex assets and infrastructure, in safety and mission critical environments. Operating through four main divisions, the organisation provides these services to clients in defence, energy, emergency services, transport and education. A feature of the organisation is its federated structure. This means each division operates with a high degree of autonomy, with control exercised at Group level through the application key financial and fiscal levers and other corporate governance mechanisms. Although this structure serves the business well, the client felt the time was right to introduce targeted changes, so it could enjoy improved operational efficiencies across the group and enable greater visibility and control of performance through standardisation of reporting against key performance indicators. To this end, it embarked upon a major programme of work in late 2015 and this is where the story begins.

Best practice and early warnings

In today’s business world, technology is pervasive and is a key enabler of change. For this client, that enabler took the form of an enterprise suite of software from SAP. To manage the workload, it established a classic organisational structure based on a central programme team, supplemented by subject matter experts from the business and a third-party implementation partner, selected via competitive tender.

On the surface all seemed to be progressing well. The central programme team had engaged well with the various business organisations that would be impacted by the programme and there was strong representation from these within the extended programme team. The design phase that had been kicked off the previous year was about to complete and planning was getting underway for build of the phase 1 implementation.

Improving operational effectiveness

But appearances can be deceptive.

Cracks were already beginning to appear in the relationship with the implementation partner, where a number of performance issues were giving rise to concern with the client sponsors. To make matters worse the client was also faced with the need to replace the incumbent Programme Director and recognising the risk this represented, was keen to effect this before the first build phase began.

Specialist help from a trusted partner

At the time DAV was managing a similarly large and complex transformation programme in another part of the group and with a reputation for delivery excellence already established, it was a natural step for the client to seek our help.

It’s always difficult to parachute into a programme that’s already in flight but there were several aspects that made this transition particularly challenging. The programme was very high profile in the group and strategically important to the client’s growth plans. Not unreasonably, this shaped key stakeholder expectations on delivery timescales, which unfortunately had become set at ‘unachievable’. Against this, it was clear that the outputs from the planning phase were not as complete as had been reported and the performance issues with the implementation partner where resulting in an increased lack of confidence in their actions, plans and forecasts. They responded to this in a defensive manner and it was proving difficult to get clear, consistent and credible progress assessments from their delivery leadership team. It was also becoming apparent that some elements of the proposed solution’s capability had been oversold. All of which was placing a strain on the relationship and putting the programme and the client’s business objectives at risk.

To get to grips with this kind of environment requires a great deal of expertise and experience. At a more visceral level it needs grit, determination, courage and above all, leadership. In response, DAV proposed a Programme Director from within its extended team who possessed all of these attributes and had recently completed a large and complex transformation programme for one of the UK’s Tier 1 banking groups. In addition, she had a demonstrable track record in dealing successfully with the kind of third party supplier issues that were having an increasing impact on the programme. This high level of capability and experience was clear to the client sponsors and DAV was appointed to manage the programme on their behalf through the first, critical delivery phases.

The power of experience

Having taken the helm, the initial priority was to flush out the real status of the ‘inherited’ programme whilst maintaining the sense of momentum that had been achieved. This is where the experience and character of the DAV Programme Director paid dividends. Through a blend of strong interpersonal and communication skills, and an appropriate degree of ‘professional assertiveness’, she engaged with client stakeholders at all levels to establish a single and accepted status of the programme and a unified sense of purpose over its future direction of travel.

The Programme Director introduced ‘town hall’ sessions to ensure that those involved in, or impacted by, the programme had a regular communications platform that would keep them informed on progress and provide a channel for essential feedback. This not only stamped a mark on the new leadership regime but also set the tone for how the programme would be managed from thereon. These sessions were part of a broader communications approach that engendered a sense of ownership across the extended team, where people felt both involved and empowered.

The second priority was to address the performance issues associated with the implementation partner, which had now reached critical levels. Escalations had already been made in an attempt to resolve matters, but problems remained and it was clear that a more robust approach was required. Very early in her tenure, the DAV Programme Director accompanied key client stakeholders to a summit meeting with the partner’s senior leadership team. The objective was clear; secure a sustained management focus on the achievement of short-term delivery deadlines as part of a wider commitment to address the intractable performance issues that were undermining the programme. However, the behavioural characteristics ingrained in the culture of the supplier meant that the road to improvement was never straightforward and actions rarely fully matched the improvement commitments made. Although there were a number of personnel changes within the partner’s team, including the delivery lead, these ‘human’ issues never fully went away. The ‘full and frank’ discussions that remained a feature of the relationship with the partner throughout, were instrumental in maintaining programme timescales and a testament to the quality and range of the DAV Programme Director’s interpersonal, commercial and delivery management skills.

Team spirit, sponsorship and dependencies

By contrast, the central programme team had responded well to the Programme Director’s leadership and was performing strongly. To the client’s credit, executive sponsorship of the programme remained solid and, crucially, there was continued and enthusiastic support from the business divisions engaged.

All internal programme workstreams had been aligned and confidence was high that the business would be ready for the changes the programme would enable. In short, as the delivery programme got into its stride, client confidence levels were high that a successful outcome would be achieved. Everything depended on the implementation partner and its ability to meet release dates for the required SAP modules being ‘built’.

Thinking clearly under pressure

As the programme approached the Phase 1 cutover date, the time for calm heads and pragmatism was on hand. The balance of ‘carrot’ and ‘stick’ had to be just right to get the implementation partner over the line with a quality deliverable and their resolve intact.

Although her main focus was on the implementation partner, the Programme Director worked ever more closely with all stakeholders to ensure everyone understood what was expected of them and that the energy exerted in the drive towards Phase 1 go-live matched the commitments made. As a result of the huge effort made by all over an 8-month period and notwithstanding the inevitable ‘last-minute’ issues, the pilot went live as planned and was seen as a great success by the client.

However, there was little time to celebrate as the second delivery milestone was only three months downstream. With a substantial amount of work to be done and an implementation partner that continued to demand unusually close management, the pressure was still on. But the force was with the programme team now and under the leadership of the Programme Director each workstream was driven to completion and the key Phase 2 milestone – which enabled all the principle elements of the solution to be proven in a business context - was achieved.

A legacy for the future

Completion of Phase 2 meant the most difficult aspects of the delivery had now been successfully navigated.

Consequently, the programme was able to morph into a less intense, roll-out mode, with subsequent phases governed by the approach and organisation established by the Programme Director. It had always been the intention that DAV would transition out of the programme at this point and the succession plan developed by the Programme Director facilitated this. In February 2017 leadership of the programme was handed over to the internal team she had mentored throughout her 18-month tour of duty.

The client had a strong agenda for change and a clear focus on outcomes and benefits realisation. The work done by the DAV Programme Director not only ensured the critical first steps in achieving this were successfully delivered, but also developed an internal team with the capability and confidence to drive the remaining phases of the programme through to completion. Mission accomplished.

CONTACT DAV Management Ltd Albany House 14 Shute End Wokingham Berkshire RG40 1BJ +44 (0) 118 974 0100 dav.mgt@davmanagement.com www.davmanagement.com