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Program Management
Program Management: Overview
Organizations often fail to recognize the importance of managing a business change program as
an overall strategic initiative. It is common to apply project management discipline to specificcomponents of the change - particularly the IT systems. Even greater focus and rigor should be
applied to achieving the overall business objective.
By definition, a program will involve several parts of an organization. Participants need to be
shepherded together to deliver the results. This means that every strategic change program
should be directly owned and controlled from board level. Programs also deserve and require
full-time attention from a senior manager - someone who can command action from all parts ofthe business.
What is Program Management?
A program is a set of related projects which collectively deliver an overall change for the
business. Most significant changes involve many aspects of the business.
It is a common misunderstanding to think of change programs as a technology issue. Certainly,
technology is normally involved in the change and the IT staff have well-developed methods and
skills for managing technology projects. Technology is, however, only one of many aspects ofthe overall change.
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There will be two levels of management focus. At the program level, the program management
team is focused on driving change across all relevant parts of the organization. Below that, each
individual initiative will have its own leadership, focused on delivering a specific component ofthe solution.
The characteristics of these two levels can be strikingly different. Program managers often needto be politically astute ambassadors, negotiating with the leadership team in different parts of the
business to bring about the overall corporate goal. They will often be dealing with imprecise,
evolving concepts. They will need to establish the business case and persuade others of its merit.They will be visionaries who understand that there should be a better way of conductingbusiness.
Contrast this to the character of a project manager. The project manager will doggedly strive to
deliver a specified overall deliverable for the business. They will focus intensely on their target,
getting involved in the detailed issues. They deliver the goods - but rarely step back to considerthe bigger picture.
Some aspects of program management are similar to the management of projects, albeit
conducted at a higher, more strategic level. For example, a program manager will address risks
and issues - but focusing on impacts for the overall initiative and the best interests of theorganization as a whole. A project manager performing the same tasks would, in contrast,
address risks and issues to delivering the specific defined deliverables.
Managing a program
Initially a program will be ill defined - just a set of ideas that merit exploration and testing. The
concept will evolve until a change program can be defined, along with its associated business
case and blueprint for the overall change.
Before work starts on individual deliverables, the key components need to be defined and
agreed: things such as the vision, objectives, scope, architecture, approach, resourcing,responsibilities and dependencies. Attention should be given to the human change aspects of the
change - usually a major consideration in strategic change programs. These building blocks form
the framework within which individual projects can be conducted.
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Of course, program management does not stop with the launch of the individual projects. The
program will inevitably evolve over time - even within the timeframe of the scheduled projects.
The program management team will continuously focus on delivering optimum benefit for theorganization - always ready to make further improvements or change direction to meet the best
interests of the business.
Program management also provides oversight of the individual projects:
to ensure they stay on track to identify and manage inter-dependencies between the projects to monitor, report and influence the net benefit to the business.
Put the right team in place
Program management is a specialist discipline in its own right. It is not a routine line
management task, nor is it a task for an IT project manager. It merits top-level direction and an
experienced program management team.
Recognizing the required skills and sponsorship is essential. The team must have the ability,
positioning, sponsorship and support to drive the overall business change. They will require
sound business competence, diplomatic skills, the ability to comprehend a wide range ofdisciplines and functions within the organization, and a deep understanding of program
management techniques.
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The relationship between Programs and
Projects
What is a Program?
In theProgram Management overview, we defined a program as follows:
A program is a set of related projects which collectively deliver an overall change
for the business.
It can be hard (and often pointless) to identify whether a given undertaking is a large project or asmall program. Perhaps the most useful test is to look for the two levels of management - a
strategic management team guiding the overall change program overseeing project managementteams charged with delivering the specific changes.
Here are some more guidelines contrasting the characteristics:
Programs: Projects:
Address the entire business change Deliver a specific change component
Focus on strategic goals Focus on tactical delivery
May have imprecise definition Have a precise objective
May have uncertain timing Are defined with a specific timeline and
budget
Evolve over a period of time to derive
optimum benefit for the organization
Try to avoid change to the defined scope
in order to ensure delivery
Require much senior management
attention, often including strategic and
political debate across organizational
boundaries
Require management communication
primarily at an operational level
concerning operational details
Produce an overall improvement in the Produce specific pre-defined
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business that may be multi-faceted and
not fully defined at the outset of the
program
deliverables
Require a manager who is high-powered, high-level, visionary, strategic,
political, sales-oriented, and works with
people at the top and across the
organization
Require a manager who pays attentionto detail, has good team leadership,
plans in detail, follows a disciplined
approach, and delivers the goods.
Program lifecycle
The lifecycle of a program is not as distinct as that of a project. The key ingredients often happen
before any identifiable program has commenced. Much of the early thinking will be more in thenature of senior management discussions about business strategy. At some time, those ideas willcondense to the extent that a change program can be defined.
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The Program Definition will identify:
the overall vision and objectives, the scope (eg geography, departments, products, functions, market segments) the business case, the business architecture of the solution in terms of a blueprint for the various aspects of
business change, eg people, organization structure, technology, processes, etc (see diagram),
the overall approach to achieve that target business architecture, proposed budgets and timelines, senior-level ownership, sponsorship, and accountabilities, other initiatives within the organization which are connected (eg dependencies, overlaps,
conflicts),
Projects that will be required to deliver the change.Although the main definition work will happen at the start of the program, the business will
evolve over time and circumstances will change. Those parts of the program definition thatdefine either the overall business solution or how it will be achieved should be viewed as anevolving model that should be managed actively during the program in order to achieve optimum
overall benefit.
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Programs deliver through projects
Only the strategic leadership of the initiative is normally conducted directly by the program
management. Specific changes are usually achieved by the definition of a number of projectswhich collectively deliver the overall goal. These are defined and instigated by the program
team, but will have their own project management teams.
Once started, the program manager should not intervene directly, but will need a degree offeedback and control. The Program Manager is concerned with project-level information where
it has a potential impact on the overall program, eg progress, issues, risks, costs, projected
benefits, dependencies, etc. It is unwise to feed all such data to the Program Manager. It is only
those items affecting the overall change program that need to be communicated. Certain lifecycleevents in the projects will raise flags for the attention of the program management team.
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Business Change Programs
Business change can be a complex, multi-faceted undertaking. It can be deceptively hard to
achieve. Many, if not most, change programs fall short of their expectations and objectives.
Organizations form complex, interacting ecosystems, often resistant to attack and self-healing.
There is a growing realization that many business changes cannot be accomplished solelythrough structured, planned, logical activities. Their nature may be explained by the tenets of
chaos and complexity theories as much as the laws of logic. However clear the vision and
strategy of the organization, the desired change may remain incomplete, even formless andvague. Change is increasingly being seen as a continuous process. In some cases it may be
achieved in definable stages. In others, it may be an endless pursuit of the organization's
evolving goals.
In this section we examine how to deliver those business change programs where structure can
be applied. We start with some definitions then build up to an overall model for business change:
what is a business change programand how to distinguish it from similar concepts such asportfolios and projects
howbusiness changeaffects multiple aspects of the business thechange journeyfrom concept to delivering the benefits the manyaspects of business change Thecomplexityof real-world change programs.
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In the second part we summarize the approach and some of the techniques:
who should participate theactivitiesin a typical business change program The importance ofprogram management.
What is a Business Change Program?
Program vs Project vs Portfolio
The terms "program", "portfolio" and "project" are often confused. They do share similarities
and many project management concepts apply to all three. There are also important distinctions
to be made.
Type of Endeavour
ProjectA project is an undertaking for a limited duration which is not part of
routine operations. A project team will be temporarily assigned,
reporting to a single Project Manager. A project has a defined objective
and scope. The overall deliverable will be of value, but does not
necessarily generate benefit on its own.
PortfolioA portfolio is a group of projects with no common objective other than
the overall well-being of the organization. It is often convenient and
efficient to manage unrelated groups of projects, for example, to
balance priorities, to manage resources, to apply common standards,and to achieve economies of scale.
ProgramA program is a group of projects (or related initiatives) which
collectively achieve a beneficial objective. The projects may address
different aspects of the overall change and may follow different
timelines. Programs often have a long duration such that some future
activities are only aspirational ideas when the program is first defined.
There will be a management team guiding the overall program in
addition to the project managers for each individual project.
Further commentary can be found in the section dealing with therelationship between Programs
and Projects.
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Business Change vs IT Change
Further confusion arises between IT activities, business change, and other forms of changeinitiative. For example, when you talk to an IT Project Manager about operational readiness the
emphasis will be on whether the technology works correctly. If you talk to a business manager
you will have a much broader conversation - for example does the workforce have the requiredcompetency, are the customers aware of the changes, how accurate is our information?
Type of Change
IT ChangeIT initiatives primarily address technological change. They deliver
components such as new systems and technical infrastructure.
Contact with other parts of the organization is typically limited to
establishing requirements, acceptance testing, end-user training and
operational support.
Business
Change
Business change initiatives usually address all the aspects required to
make a change in the way the business works. Even in a technology-
driven change, there will be many non-IT aspects, for example, initial
evaluation of the case for change, securing the funding, commercial
deals, introducing new business processes, organizational change,
recruitment, facilities, internal communication (stakeholders,
management, workforce) and external communication (customers,
suppliers, partners, third parties).
OtherProject and program management is applied to many other forms of
change, for example, construction, engineering, product
development, and social change.
All combinations of these concepts exist. Here are some examples:
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Type IT Business
ProjectReplace the General Ledgerapplication
Investigate whether there is amarket for a new product
Portfolio All projects reporting to the ITDevelopment Manager All initiatives handled by theMarketing Director
ProgramIntegrate the CRM system withvarious customer facing systems
Set up an eCommerce channelto market
Business Change
While you are following this section you might like to page through theFlash animationor take
a look the PowerPoint presentation "Business Change Programs".
There can be many drivers of business change and many targets for the change. Drivers are thosecompelling reasons to undertake the change, for example:
increase market size, eg awareness, market share, product lines, geographical coverage develop new products and services sustain better margins and volume achieve faster time to market deliver in shorter lead times operate more efficiently make better use of human capital innovate to keep ahead of the market
Increase profitability and stakeholder value.
The targets for the change are the various aspects of the organization - its nature, structure,
modus operandi, product lines, technology etc.
Here are seven common targets for business change. In each case, changing that aspect might be
a prime objective of the business change program - or it might just be an inevitable consequence.
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People: the skills, competencies, knowledge and behaviors of the workforce that equip them toconduct business in the most effective manner
Strategy: the organization's strategy - its mission, vision, goals, objectives, key performanceindicators and modus operandi
Product: products or services offered Process: the method by which business operations are conducted Culture: the beliefs, attitudes and behaviors of the leadership and workforce that give this
organization a unique character
Structure: organizational structures, divisions, departments, roles, responsibilities, jobdescriptions
Technology: IT applications, systems, hardware, technical infrastructure, transaction processing,information management, automation, equipment, machinery
Even in technology-driven projects, the technological change is not usually the central issue. To
build a business-to-consumer eCommerce system we can use well-established concepts and
many off-the-shelf software components. That change may be easy in comparison to shifting the
organization's market strategy, building new call-center capabilities, hiring new staff,establishing new roles, introducing new administrative processes, setting up fulfillment through
partner agreements, marketing the new channel to the public, and achieving a profitable new
business model.
The heart of the business is usually its people. It is the leadership and workforce who are behind
every aspect of every change. The imperative is to harness their support, enthusiasm, and effort.They will make the change a success.
Business change is rarely confined to one area of the business. Any significant change is likely to target
several aspects of the business and have implications for even more. A movement in one aspect will
distort the others. If I change one part of the model I must make changes in them all if it is to continue
to fit.
When you change the shape and nature of one aspect, you will probably need to makeadjustments to other aspects. When contemplating and planning a change program you should
think through the desired changes and consequences across the organization.
There is no point changing the strategy unless it affects the things the organization does such as
its products and services. New products or services may mean new processes. Different ways
of doing things also means new processes. Processes are performed by people. The way the
people operate is managed through organizational structure. The way people behave is driven
by culture. Processes are enabled by technology.
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The Change Journey
Business change is a difficult journey into the unknown. However well we imagine the
destination and however well we plan the trip, we can be sure that things will work out
differently. The further we are into the journey, the less likely it is that we will have held to ouroriginal plans and expectations. We can usually see what is immediately ahead, but we must
climb to the next ridge before we know what the next stage will look like.
By the time we reach the destination it might well look very different to our expectations. Maybeit is not even the destination we intended and, maybe, we do not want to or cannot stop travelling
when we get there.
Business Change Journey
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Case for Change
The first step in a business change is to realize that change is required. No methodology canexplain how the leadership of an organization comes to such a conclusion (although many try).
Typically, the idea is tentatively raised by an individual with the inspiration to realize that the
organization could be more successful if changes were made. There follows a period duringwhich various loosely knit ideas are proposed and evaluated until there is a persuasive argument
in favor of a definable change. This is refined until there is sufficient detail to present the board
with a compelling case for change.
Conceptual Design & Business Case
Before we start work on the change, we need a reliable view on how to achieve that change and
what its true resource requirements, timing, costs and benefits will be. A conceptual design
should be made for every aspect of the change. It is common to speak of conceptual design interms of technology components, but we should also be looking at things such as changes to
roles, organizational structures, competencies, culture, processes, etc. We should also beconsidering how to achieve those changes - not just the desired end-state.
Detailed Design
Using the conceptual design as our framework, we can then start the real work. We design the
detailfor each aspect of the business change. For example, we should design people and process
solutions just as we do technology changes - albeit using different methods, tools and techniques.We should also design the specific approaches and activities that are required to achieve those
goals.
Bear in mind that not all business change can be defined or designed in a formalized manner. Insome cases, for example a cultural change, the desired change might remain a loosely-defined
concept and the steps to be taken would encourage movement in the desired direction rather thanfollow firm designs. Even so, you should be able to specify many of the actions to be taken,
whether or not you can design the desired end-state.
Development
The detailed designs are used as specifications for the developmentof content for the change, forexample:
the new organization chart new job descriptions plans and preparation for workforce transition activities (hiring, job changes, layoffs) internal and external communication messages and media training courses transition timetable IT components.
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Deployment
Completed components are tested and validated, ready to be deployed. Deployment is rarely aninstantaneous activity. Many components are required in advance of the main change, for
example training, organizational change, equipment, publicity, etc. As well as the time taken to
achieve the immediate transition, any significant change is likely to require continuingpromotion and support to achieve optimum business benefit. Deployment work should evolve
into continuous, pro-active management of the business area, always with a view to achieving
optimumbenefit.
We take a more detailed look at this change journeybelow.
Aspects of Business Change
We looked before atseven core aspects of business change. These are the areas that are most
commonly addressed by business change programs. There are, however, many other aspects
which might be a focus of change or affected by a change elsewhere. Here is a more completelist:
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People: the skills, competencies, knowledge and behaviors of the workforce that equip them toconduct business in the most effective manner
Strategy: the organization's strategy - its mission, vision, goals, objectives, key performanceindicators and modus operandi
Product: products or services offered Process: the method by which business operations are conducted Culture: the beliefs, attitudes and behaviors of the leadership and workforce that give this
organization a unique character
Structure: organizational structures, divisions, departments, roles, responsibilities, jobdescriptions
Technology: IT applications, systems, hardware, technical infrastructure, transaction processing,information management, automation, equipment, machinery
Market: Marketplaces for the organization's products and services, their characteristics, theirvalue and how best to approach them
Customers: customers the organization seeks to transact with, for which products or services,using which methods
Channels to Market: how the organization communicates and transacts with its customers Regulation: legal requirements and other regulations the organization is obliged to follow in its
various spheres of business and locations
Suppliers: providers of products and services to the organization, using what processes andtechnology, and under what terms
Geography: geographical areas in which the organization operates Facilities: locations, premises, equipment, infrastructure, service providers, support and
maintenance
Partners: collaborative ventures with other organizations Knowledge: knowledge and information the organization has access to, how it is harnessed,
how it is exploited
Research & Development: activities to develop leading-edge products, services and methods ofoperation
Funding: sources, methods and terms of investment funding for the business change or ongoingoperations
Ownership: how the organization (or part of the organization) is owned and controlled - its legalform, stakeholders, relationships with associated organizations, executive structure
When we speak of the aspects of a business change we might mean any or all of these.
Moreover, we often find several significant aspects within one of these headline aspects. Forexample:
there might be different major areas of technology development required (eg web store-front,call center, supply chain integration, integration with financial systems)
there might be different new facilities required (re-siting warehouses, building a global callcenter)
there might be different marketplace, cultural and regulatory considerations in differentcountries
we might need to distinguish between things done at different times in the overall changeprogram.
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We need to recognize each significant aspect and guide its progress through thechange journey.
Each will take its own course, but form an essential part of the overall transition.
Real-World Complexity
Let us take a look at what is going on inside the various work streams of the change journey.
You might imagine there is a continuous stream of activity, following the overall lifecycle,
delivering each aspect of the change. Real-world programs are rarely so simple.
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In the real world you will probably find:
many projects contribute to various aspects of the change some projects start and finish at different times several projects progressively build the overall change the various projects will follow their own lifecycle within the overall change program not all aspects of the change are delivered through structured projects not all projects are fully aligned with the overall goals.
In a world without program management there may be much worse to observe. Even with clearlystated corporate objectives, there is likely to be chaos in the individual initiatives and projects
undertaken by the many managers concerned. However good the individual managers, they are
unlikely to create changes that fully align to the strategy, fit together without gaps or overlaps,deliver the change in an efficient manner, and stay on course to deliver the desired collective
change.
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The natural tendency is towards chaos. The imperative is to guide individual efforts towards the
organization's goals. It is unlikely that any complex change could be managed with such rigidity
that the results of each project fit perfectly. The art of program management is to create
harmony, order and direction from chaos.
You will need the support of the executive and sponsors. Establish a regime such that:
projects are defined to address all aspects of the desired business change all projects and related initiatives are defined and mandated as part of the one change program all projects should be under the direction of the program management team (but preferably
with localized project management)
relationships between projects are examined, eg boundaries, conflicts, gaps, overlaps,dependencies, sequencing, resource utilization, cross-impact
no investment funding nor approval is granted for any project unless it supports the changeprogram's objectives
unrelated projects and proposals are tested for compatibility with the change program Non-compliance is unacceptable.
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Bear in mind that corporate objectives and the organization's environment will inevitably vary
over the lifespan of the change program. In the illustration above, there has been a noticeable
change of direction. Some projects were able to take up the new direction from the beginning,
some had to make mid-life changes, and others required supplemental projects to complete thechange.
Strong program management is required from start to finish - not to rule with a rigid stick but to
define, instigate, promote, guide and co-ordinate the many initiatives throughout the change
journey.
Participation in Business Change Programs
Much of the work in a business change program is best done by the organizations own people,
guided and facilitated by specialists. There are four clear advantages. Participation of themanagement and workforce:
promotes ownership and buy-in exploits business experience and knowledge retains knowledge within the organization, and Reduces costs.
Conversely, there is benefit in bringing in people from outside. For example:
a specialist business change program management team who understand the approaches,complexity, issues and best-practice management techniques
change management specialists who can assess the issues and guide the organizational change industry specialists who are aware of trends and state-of-the-art approaches specialist facilitators who can guide the participants through the change journey
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business process analysts and modelers to create clear, structured results from business-focused workshops, discussions and interviews
Specialist architects and advisors for specific technological components.
There are many valuable sources of knowledge, ideas and guidance that should be exploited
throughout the change journey. For example:
Corporate strategy
input and guidance concerning overall corporate goalsOther divisions and specialist functions
incorporate and amplify current thinking from related activities, egmarketing, HR, etc
Workforce
source of knowledge and new ideas their participation and support are vital to deliver the change
Customers
What do our customers want?
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What can they tell us about best practice they have seen elsewhere?Suppliers
How can we best work with our suppliers?
What can they tell us about best practice they have seen elsewhere?
Competitors
What can we learn from our competitors solutions?Other industries
What can we learn from parallels in non-competitive industries?
Business Change Activities
Case for Change Conceptual
Design
Detailed Design Development Deployment
Program Charter
Vision
Key Performance
Indicators
Focus Areas
Stretch Targets
Case for Change
Current Position
Best Practices
Options
Future Solution
Quick Wins
Transition
Strategy
Business Case
Pilots & Prototypes
Detailed ProcessDescriptions
OrganizationalDesign
Technology
Design
Training Design
Change
Management Plan
Technology
Acquisition,
Development and
Installation
ProcessDocumentation
TrainingDevelopment
ChangeCommunication
OrganizationalTransition
Deployment Plan
Training
Readiness Checks
User Acceptance
Solution Rollout
Continuous
ImprovementProcess
The detailed approach to business change programs is a subject for specific methodologies andwill vary depending upon circumstance. Here is a summary of typical activities.
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Business Change Activities
Case for Change
Program Charter In the earliest stages of a business change initiative there is
unlikely to be a formalized definition or structure for the
work. When the change is sufficiently well understood, a
change program should be defined. The definition will include
initial descriptions of:
objective and description of the change scope - organizational boundaries, products,
processes, systems etc.
organization, responsibilities, participation,sponsorship
tentative timeline and plan Indicative or aspirational benefit case and mandate
for initial funding.
Vision The work may involve reviewing the vision for the overall
organization. If the corporate vision is already clearly defined
and understood, the vision for the change program (within
the defined scope) might be derived from the organization's
overall goals.
Key PerformanceIndicators
Key Performance Indicators identify specific measures ofcorporate performance. These may be used in two ways:
in conventional performance management, themeasurement, tracking and publication of these
encourages management and workforce to improve
performance in line with the organization's strategic
objectives
in a change program they identify important targetsfor change and may be used to measure the success
of the program.
Focus Areas The initial definition of the desired change is often very
broad. Not every aspect of change will deliver the same
degree of benefit. Which specific areas are worth focusing
on?
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Stretch Targets If dramatic change is desired, there is no point setting easily
achievable targets. Stretch targets identify how good
performance would be in an ideal world. Although it should
be understood that the team is unlikely to achieve perfection,
everyone should strive as far as possible in that direction. For
example, do not say our target is to improve lead times by
50% - maybe the ideal target would be zero lead time. Then
see what you could possibly do to come close to that.
Case For Change By now you should have enough understanding to define a
compelling case for change. The case should explain:
why there is a need to change what the change will be how it will support the organization's vision, strategy
and objectives The initial benefit case showing in broad terms how
much financial, non-financial and intangible benefit
should result.
Conceptual Design
Current Position It is usually important to understand the current position
regarding each aspect of the change. This would include such
things as:
organization structure, responsibilities, capabilitiesand competencies
processes Technology - applications, functionality,
infrastructure.
The rationale is that:
the analysis defines the starting position for thingsthat will be changed
some current components may remain in theeventual solution
some current components may be temporaryelements of the solution if it is to be phased in stages
It allows measurement of the planned and achieveddegree of change and benefit.
If the current "as-is" analysis does not contribute to one
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of these needs, it is probably not worth doing. Similarly,the amount of analysis performed should not exceed thatwhich is valuable.
Best Practices For each aspect, define what current best practice is. Call
upon internal and external sources of knowledge. Seek
benchmarks and "world-class" solutions. Look for the latest
industry and subject matter wisdom. Investigate what further
developments are likely during the course of the program.
Options Using the results from the fact-finding, formulate options for
how the change might best be achieved. Analyse the pros and
cons of these options such that the best options may be
proposed. Agree the preferred choices with leadership and
sponsors. Seek and obtain buy-in from other parties involved.
Future Solution For each aspect of change, define the target solution and how
it would be achieved. Use sufficient detail such that:
the future solution is unambiguously described, and the work packages, resources and timing can be
accurately estimated.
Do not create unnecessary detail - this might restrict the
freedom of the solution designers to create the optimum
solution.
Quick Wins Although it might not be part of the main change journey, it is
possible that the analysis has uncovered improvements that
could be achieved rapidly, without waiting for the main
change program to produce its results. Suppose, for example,
that daily stock reports were desired. It might be the case
that the IT department could run the existing report daily
instead of monthly with no development effort whatsoever.
Transition Strategy Change programs are often long, complex processes. Change
is rarely achieved in a single step. Consider now the best path
to achieve the overall change.
Business Case You will identify costs and benefits at several stages. By now
you will have reliable definitions of the work, timing, costs
and benefits. A formal business case should be created,
presented and agreed. It will form the prime basis for
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measuring the success of the program.
Detailed Design
Pilots and
Prototypes
Designs can be created theoretically on the drawing board, or
they can evolve from trying things out. Pilots and prototypes
may be valuable design tools when feasible.
A prototyping style may also be used in rapidapplications development techniques - particularly
with eSolutions. A component is completed then
tried out. Feedback from that experience is used to
refine its next version.
Prototyping is normal practice with package softwarewhere the full functionality is provided immediately,
but needs to be configured and parameterized todefine the precise way in which it will work.
Processes can be prototyped manually or usingmodeling tools.
It may be possible to set up small sections of theoverall business to try out potential solutions, for
example, experimenting with different layouts of
retail premises, trialing new machinery, and test-
marketing products.
Detailed Process
Descriptions
The new business processes will be mapped and described in
complete detail. These descriptions may form the basis forprocedural development, IT systems design, training
materials, communications etc.
Organizational
Design
Changes to organizational structures, roles, responsibilities,
capabilities, competencies, job descriptions and resource
levels will be defined. Transition strategies and plans will also
be formulated. Timing is usually important. People cannot be
changed, educated, moved, hired or terminated overnight.
Where significant changes are being made to job descriptions
and contracts, there may be legal requirements for noticeperiods and consultation. There will be organizational change
management consequences affecting willingness to change,
loyalty, motivation, etc. These should be a major input to the
change management planning (see below).
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Technology Design Technological aspects will be designed in detail. These may
include:
applications and functionality infrastructure such as hardware, networks, operating
software, services, and support other equipment and machinery operational procedures, for example schedules,
controls, backup, recovery, contingency plans, etc.
Training Design Identify all populations that need to be educated and what
skills or knowledge they need to acquire. Establish the best
timing for the education and assess the practicalities of that
timing. Consider the best format, styles, media, locations, and
personnel for the training. Design the contents for each
training component.
Change
Management Plan
Organizational change management(ie changing behaviours
and attitudes) is an important aspect throughout the
program. By this stage you will have established what change
is required and what resistance is expected. Formulate the
plan for overcoming the barriers and delivering the change.
Development
Technology
Acquisition,
Development and
Installation
Based on the detailed designs, the various technology
components will be constructed. For some components it will
simply be a case of selecting, acquiring, installing and
configuring standard components. In other cases, it may
involve a long, complex process of software development.
Process
Documentation
New business processes should be supported by good user
documentation. These days, it is unlikely to mean huge
volumes of text. It is more likely to be contained directly
within the computer applications, or specific workflow and
knowledge management systems.
Training
Development
Content for the training modules should be developed. Note
the need to have reliable input. Subject matter needs to be
described and incorporated in its final format - for example,
computer applications, procedural documentation, and
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forms. This will affect the timing of the training development
work.
Change
Communication
Communicationis an important tool throughout the change
program. It is used in building the case for change,
establishing commitment, encouraging participation, and
ensuring the designs are right. Typically, however, it becomes
a weapon rather than a tool when the organizational and
behavioral change is brought about. During this period the
major change communications will be prepared and
broadcast. There are two main types of message:
to support the organizational change managementplan
to issue detailed instructions and information.
Organizational
Transition
Many of the organizational changes will need to be in place
before the deployment of the new business solution. The
process may need to commence months earlier. The
transition will also continue into the deployment stage.
Deployment Plan The Deployment Plan provides the final tactical details for
switching over to the new business solution.
Deployment
Training Training is delivered in accordance with the Training Plan. A
management process should be in place to ensure all
individuals achieve the required competency and knowledge.
It is inevitable that some people will miss planned sessions or
fail to achieve required levels. Adjustments to schedules and
remedial training may be required.
Readiness Checks Before deciding to proceed with the change, the readiness of
all aspects should be checked. It is not just a question oftestingthe IT systems. It is equally important that all aspects
of change are ready, for example:
the workforce is ready, willing and able customers have been informed new equipment, stationery and supplies are
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available.
User Acceptance User acceptanceis the formal acceptance by the organization
that the solution is sufficiently fit for purpose. Bear in mind
that no complex solution is ever perfect. Criteria will havebeen set in advance to define what type and degree of non-
conformity might be tolerated for the sake of achieving live
operation. User Acceptance should always be conducted in a
planned, structured and scientific manner to ensure reliable
results.
Solution Rollout The business change is made, for example, new IT systems
and processes become operational. This might be an
instantaneous event or it might be a phased change over,
possibly involving the simultaneous operation of old and newregimes for a limited period.
Continuous
Improvement
The work of the change program does not finish with live
operations. After deployment there will be a need for high
levels of encouragement, guidance and support. Beyond that,
there should be a permanent focus on deliveringoptimum
benefit.
Program Management
Business change programs involve activities across an organization, addressing different aspects
of the business, following a complex timetable. These activities are blended by the programmanagement team to deliver the overall collective benefit.
The program management team needs to act as visionaries, entrepreneurs, politicians,
ambassadors, coaches and planners, as well as controlling the individual project managers.
Program managers concern themselves with every matter that collectively adds to the success of
the business change initiative. They will act with direct power from the board, cutting acrossorganizational divisions.
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Program managementis a highly specialized skill. It requires great experience to derive optimumbenefit from a change program. Given a choice, look for the manager who knows how to deal
with transformational business change rather than one who is only specialized in one aspect suchas the industry or technology.
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