SYMPOSIUM 2016 : CONFÉRENCE 803 - REVIEW OF BUSINESS TRANSFORMATION FRAMEWORKS: A PROJECT...
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Transcript of SYMPOSIUM 2016 : CONFÉRENCE 803 - REVIEW OF BUSINESS TRANSFORMATION FRAMEWORKS: A PROJECT...
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Business Transformation Frameworks
Sedki AllaouiPhD Candidate
A Review From a Project Management Perspective
Robert PellerinPhD
Mario BourgaultPhD
Mathematics and Industrial Engineering DepartmentEcole Polytechnique of Montreal
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Agenda
Context
Transformation : Definition & Key Success Factors
Transformation Frameworks
Project Management Perspective
Conclusion
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Organizations’ Context
Global competition
Constant pressure• Economy
• Regulation
• Technology
• Etc.
Increasing pace of change
Change is imperative for organizations’ survival
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Why is transformation relevant ?
Change initiatives• From incremental to radical
• High failure rate : up to 70%
Change approachesType 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
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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 endeavorPurchase, 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.‑
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Why do organizations transform ?
Survive ThriveOR
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Levels of Transformation
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Supply Chain
Company
Business Area(s)
Business Unit(s)
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Key Success Factors
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Team
Sponsorship
Leadership
Governance
Collaboration
Approach
Holistic
Integrative
Program/Project Management
Effectiveness before Efficiency
Enablers
Analytical
Organizational
Organization's Maturity
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To enact transformation’s success factorsA framework is required
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What Constitutes a Framework ?
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Framework
PrinciplesElements to uphold that
ensure the transformation’s success
MethodologyStructured 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
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Transformation Frameworks
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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
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Lean Transformation Roadmap
Nightingale, D., & Srinivasan, J. (2011). Beyond the Lean Revolution: Achieving Successful and Sustainable Enterprise Transformation. New York, USA: AMACOM
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Business Transformation Management Methodology BTM2
Uhl, A., & Gollenia, L. A. (2013). Business Transformation Management Methodology. Gower Publishing Limited.
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Frameworks ComparisonProcess
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
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Transformation frameworks are complementary
One size does not fit all !
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Project Management PerspectiveProcess
Reengineering Methodology
Lean Transformation
Roadmap
Business Transformation Management Methodology
PMBOKKnowledge
AreasPartial 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
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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
Frameworks help structure and plan transformation initiatives
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Challenges
Organizations' culture and mindset• Style of leadership
• Collaboration
• Vocabulary and terminology
Project Management maturity• Between organizations
• Within each organization
Transformations are context specific
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Conclusion
Project management is crucial for transformations’
success
Transformation managers• Balance analytical and soft skills
• Adaptability
• Collaboration
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Thank you !