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Implementation Canvas
A platform for developing risk-reduced implementation plans
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Hi, I’m Digit
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Today, I’m here to talk
to you about. . .
Business Change
Implementation
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This presentation is about using a common platform to design and manage the implementation of a business change.
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Let’s start with. . .
“What is an Implementation
Canvas?”
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The Implementation canvas is a visualization tool that helps teams design and manage change projects to reduce the costs associated with failure, while increasing the rewards and likelihood of success.
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By using a common platform to describe the implementation of a business changewe can . . .
. . . have a common language to describe our projects.
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. . . make better decisions about the fit of a change to our overall strategy.
By using a common platform to describe the implementation of a business changewe can . . .
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. . . increase the speed of our change projects.
By using a common platform to describe the implementation of a business changewe can . . .
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. . . reduce the risks associated with their implementation.
By using a common platform to describe the implementation of a business changewe can . . .
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. . . and don’t forget, we can increase the rewards too.
By using a common platform to describe the implementation of a business changewe can . . .
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. . . use it manage a portfolio of business changes faster and more effectively.
By using a common platform to describe the implementation of a business changewe can . . .
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Okay, we're convinced.
A common platform to describe business change implementation would be great.
But what is this platform?
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The implementation canvas starts with the scale of the project. Why it’s necessary.
Scale – (Why)
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Next, it describes how the project is organized and managed.
Organization (How)
Scale – (Why)
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Finally, it describes the activities that are required for success.
That’s it, only 3 categories?
Organization (How)
Scale – (Why)
Activities(What)
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There’s more.
Nine factors define the key relationships between these three areas.
Organization (How)
Scale – (Why)
Activities(What)
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First, what is the scope of the project? How much of the business does it impact and what are you trying to achieve?
Makes sense.
What is this project about?
Organization (How)
Scale – (Why)
Activities(What)1. Scope
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Second, based on the scope of the project what are the risks to the:• host entity (strategic),
• the business model (operations)
• and the project itself?
Organization (How)
Scale – (Why)
Activities(What)1. Scope
2. Risks
a. Strategi
c
b. Operatio
ns
c. Project
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Third, what rewards are you expecting the project to deliver?
Organization (How)
Scale – (Why)
Activities(What)
2. Risks
1. Scope
3. Rewards
a. Financia
l
b. Custom
er
c. Process
d. Learnin
g
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Organization (How)
Scale – (Why)
Activities(What)
Four, how will the project be funded, structured and protected from negative influences?
4. Structure
2. Risks
1. Scope
3. Rewards
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Five, who will become the diverse, creative, energetic evangelists that make up the team?
Oh! Oh! Can I join?
Organization (How)
Scale – (Why)
Activities(What)
4. Structure
2. Risks
1. Scope
3. Rewards
5. Team
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Six, how will the tension between maintaining speed and momentum versus failing the project when it doesn’t achieve success hurdles be managed?
Organization (How)
Scale – (Why)
Activities(What)
4. Structure
2. Risks
1. Scope
3. Rewards
5. Team
6. Process
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Seven, what are the critical uncertainties stemming from the risks and rewards that need to be resolved to ensure project success?
Organization (How)
Scale – (Why)
Activities(What)
4. Structure
2. Risks
1. Scope
3. Rewards
5. Team
6. Process
7. Uncertainties
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Eight , what rapid low-cost experiments, prototypes, learning etc. are run to reduce the prioritized uncertainties to known quantities?
Organization (How)
Scale – (Why)
Activities(What)
4. Structure
2. Risks
1. Scope
3. Rewards
5. Team
6. Process
7. Uncertainties
8. Actions
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Nine, what are the costs associated with the actions, and of failure?
Great. Can you show us an example?
Organization (How)
Scale – (Why)
Activities(What)
4. Structure
2. Risks
1. Scope
3. Rewards
5. Team
6. Process
7. Uncertainties
8. Actions
9. Costs
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Sure, but before we talk about that, take a moment to review the implementation canvas.
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I’m sure you know Apple and the iPod. .
And Sony and their MP3 player.
Yeah, except Apple launched the iTunes Store and Sony just launched with the player.
I wonder why?
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It could be as simple as Sony didn’t think about it.
But let’s use the canvas to see why else they might have done what they did.
Okay
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In 2003, Sony was a large music label company suffering from pirating.
An e-based distribution network represents a significant departure from how they normally do business.
It’s an entirely new business platform for Apple too.
• Significant distribution change requiring new e-commerce skills
• New business model requiring new e-commerce skills
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• Sony e-store sales cannibalize existing sales
• Could slow pirating
• Medium reward
Sony might see mixed rewards as an e-store platform could simply cannibalize their existing sales.
However, it might slow pirating and add additional sales from new customers
For Apple, all sales would be incremental.
All sales incremental
High reward
• Significant distribution change requiring new e-commerce skills
• New business model requiring new e-commerce skills
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• Distributors revolt
• Company resists
• High Risk
Sony opening an e-store would likely cause a revolt in existing channels.
Divisions responsible for channel sales would push back.
“Why are we hurting our partners?”
For Apple, the new business model has no such conflict with channels or the organization.
• No conflict with company
• Low risk
• Significant distribution change requiring new e-commerce skills
• New business model requiring new e-commerce skills
• Sony e-store sales cannibalize existing sales
• Could slow pirating
• Medium reward
All sales incremental
High reward
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• Distributors revolt
• Company resists
• High Risk
• Music label companies won’t sell through them
• High Risk
The both face similar risks in access to music.
Will the music labels sell through them?
Sony has its own music. But the other labels are competitors.
However, sales are down so everyone needs sales.
Let’s call it a wash and say high risk
• No conflict with company
• Low risk
• Significant distribution change requiring new e-commerce skills
• New business model requiring new e-commerce skills
• Sony e-store sales cannibalize existing sales
• Could slow pirating
• Medium reward
All sales incremental
High reward
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• Distributors revolt
• Company resists
• High Risk
• Requires separation from organization to protect it
• Uses normal innovation structures and team
• Separation increases costs
To respond to these risks Sony would need to create strong separation between the existing organization and the project to protect it.
This will drive up cost of implementation.
Apple can structure as a normal project with normal costs.
• No extraordinary costs
• Music label companies won’t sell through them
• High Risk
• No conflict with company
• Low risk
• Significant distribution change requiring new e-commerce skills
• New business model requiring new e-commerce skills
• Sony e-store sales cannibalize existing sales
• Could slow pirating
• Medium reward
All sales incremental
High reward
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• Distributors revolt
• Company resists
• High Risk
• Requires separation from organization to protect it
• Uses normal innovation structures and team
• Separation increases costs
• Will consumers buy through a new e-platform
Finally, they would both face the critical uncertainty of will consumers buy through this new channel?
• No extraordinary costs
• Music label companies won’t sell through them
• High Risk
• No conflict with company
• Low risk
• Significant distribution change requiring new e-commerce skills
• New business model requiring new e-commerce skills
• Sony e-store sales cannibalize existing sales
• Could slow pirating
• Medium reward
All sales incremental
High reward
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So now let’s compare the implementation profiles of Sony and Apple.
• Distributors revolt
• Company resists
• High Risk
• Requires separation from organization to protect it
• Uses normal innovation structures and team
• Separation increases costs
• Will consumers buy through a new e-platform
• No extraordinary costs
• Music label companies won’t sell through them
• High Risk
• No conflict with company
• Low risk
• Significant distribution change requiring new e-commerce skills
• New business model requiring new e-commerce skills
• Sony e-store sales cannibalize existing sales
• Could slow pirating
• Medium reward
All sales incremental
High reward
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It’s no wonder Sony just launched the player by itself.
It’s risk/reward profile was far worse than Apple.
More risks items for an inferior gain.
• Distribution revolt• No access to music labels
• Company pushes back• Consumers won’t buy
• No access to music labels
• Consumers won’t buy• All sales
incremental
• Few incremental sales
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It’s not enough to have a great idea.
Your implementation profile determines your risk/reward.
And that determines whether the project will get traction.
So maybe it wasn’t just because they didn’t think about it.
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So, that’s what business change implementation is all about.
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Imagine if your organization had a common methodology for how to implement change?
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What value could you unlock?
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If you’d like more info.
Call us and ask for John.
Tell him Digit sent you.
Ennova Inc.Toronto, Ontario1-888- 6ennova905-294-8050 (local)John @ennova.ca
We’ll send you a free starter kit.
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Hey Digit, can you give me a hand with this?
Sorry, I’m busy listening to a great podcast from iTunes.
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