1 - Transform - Assess v1.1 FINAL

Version 1.
1 January 2009
powered by Making Change Stick
A Delivery Framework for Large, Complex Programmes
transform*
Making change stick

Performance Improvement Consulting
Section 1
Page
Stage 1: Assess......................................................................... 4 1.1 1.2 1.3 1.4 1.5 A Introduction......................................................................... 4 Interdependencies .............................................................. 6 Benefits .............................................................................. 6 How to Access Reference Materials................................... 6 How to apply Value Chain Consulting (VCC) methodology 7 Determine Business Needs & Benefits .................................. 8 A1 A2 A3 A4 A5 A6 A7 B Review Strategy & Drivers ............................................ 10 Customer / Market Needs & Insights ............................ 14 Consider Operational Locations.................................... 19 Legal, Regulation and Internal Boundaries................... 21 Legal Structures & Taxation.......................................... 23 Supply Chain ................................................................ 25 Sourcing........................................................................ 27
Benefits, Project, Programme and Change Management.... 29 B1 B2 B3 B4 B5 B6 B7 B8 B9 B10 B11 B12 B13 B14 Project Initiation ............................................................ 32 Project Governance ...................................................... 37 Project Management..................................................... 42 Programme Governance .............................................. 46 Programme Set-up ....................................................... 52 Quality Management..................................................... 57 Agree Benefits Process ................................................ 62 Programme Planning .................................................... 65 Benefits Planning .......................................................... 70 Best Fit Change Approach............................................ 76 Transformation Vision ................................................... 83 Change Leadership and Organisational Capability....... 87 Transformation Capability Route map .......................... 92 Resource Planning ....................................................... 98
PricewaterhouseCoopers LLP
transform*
Making change stick

B15 B16 C
Stakeholder Engagement ........................................... 101 Communications ......................................................... 109
Create Transformation Baseline ........................................ 115 C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 Prepare for Data Gathering......................................... 120 Data Gathering ........................................................... 126 Review Existing Governance Structures..................... 131 Review Existing Operational Models .......................... 133 Review Existing Physical Locations............................ 136 Review Facilities Principles......................................... 138 Customer / Market Analysis ........................................ 142 Review Service Metrics / KPIs .................................... 146 Review Organisation Policy and Standards ................ 148 Review IT Principles................................................ 151 Data Review............................................................ 157 Leading Practice Gap Analysis ............................... 160
Create Case for Transformational Change ........................ 172 D1 D2 D3 D4 D5 Agree Evaluation Criteria & Scoring Mechanism ........ 174 Opportunity Evaluation ............................................... 177 Develop High Level Operating Models ....................... 181 Agree Improvement Opportunities .............................. 187 Build Business case.................................................... 189
2009 by PricewaterhouseCoopers LLP
All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means or stored in a database or retrieval system, without prior written permission of the publisher.
COPYRIGHT 2009 PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP has taken all reasonable steps to ensure that information contained herein has been obtained from reliable sources and that this publication is accurate and authoritative in all respects. However, it is not intended to give legal, tax, accounting or other professional advice. If such advice or other expert assistance is required, the services of a competent professional should be sought.
transform*
Making change stick

1.1 Introduction
The Assess Stage of transform* is used to confirm the organisations business needs, to assess the selected areas of the current environment for improvement opportunities and to agree upon the opportunities for improvement. This is through defining the High-level Blueprint for the new organisation and the Case for Change and the portfolio of initiatives that will transform the organisation, whilst achieving short- and medium-term fiscal and operational / service goals.
Assess Design Construct Implement Operate & Review
Strategic Direction Structure Facilities Process / Service People & Organisation Enabling Technology Change Management Programme Delivery
Create Case for Change and scope initiatives
Detailed Design, TOM and Quick Wins
Build the new ways of working, and design rollout
Rollout new ways of working and ensure benefits are realised
Operate new organisation and implement continuous improvement
Defining the Highlevel Blueprint for the new organisation and the Case for Change, and the portfolio of initiatives that will transform the organisation, while achieving short- and medium-term fiscal and operational / service goals
Creating the detailed Target Operating Model and plan for the organisation (e.g. new org structures, processes, locations, skills, IT etc), whilst also implementing quick win initiatives
Build new processes and supporting IT, locations, org structures, skills etc., to support new ways of working. Understand in detail the requirements to implement these across the organisation
Implementing the portfolio of groupwide and organisation-wide initiatives, proactively ensuring benefits are tracked and realised, addressing any shortfalls (i.e. portfolio leakage)
Operate the transformed organisation, deliver the benefits, and instigate a culture of continuous improvement
There are four Phases within Assess:
Phase A Determine Business Needs and Business Benefits. The scope is confirmed and the project is commenced. The organisations business needs are planned, business benefits are reviewed and confirmed. Phase B Benefits, Project, Programme and Change Management. Project initiation, and change diagnosis are undertaken. During this Stage, development of programme governance, programme plans, resource plans and benefits plans are developed . The best fit change approach is diagnosed, a vision for the transformation is developed and leadership aligned to support it. With a view to creating the conditions required for sustainable change, the leadership and organisational capacity for transformation are assessed and a high level transformation route map is developed. Initial stakeholder analysis is completed and communications planning is commenced following a communications audit. Phase B is a cross-life cycle Phase as different components from this Phase are used and completed in other Stages;
transform*
Making change stick

Phase C Create Transformation Baseline. Data is collected about the external environment, current policies, business processes, data, technologies, organisation, facilities, change environment, activities and performance measures. These are assessed against leading practice to identify gaps and improvement areas. Where appropriate, benchmarking is conducted or other techniques are used to gather data or measures about current performance levels. Phase D Create Case for Transformational Change. Evaluation criteria are agreed and opportunities for improvement are assessed. A high-level Target Operating Model is developed and improvement opportunities are agreed. An outline Business Case is developed to create the Case for Change.
Stage 1: Assess
A: Determine Business Needs & Benefits C: Create Transformation Baseline D: Create Case for Transformational Change
Strategic Direction
A1: Review Strategy & Drivers A3: Consider Operational Locations
A A
A2: Customer /Market Needs & Insights A4: Legal, Regulation

& Internal Boundaries
A A
C1: Prepare for Data Gathering
D1: Agree Evaluation Criteria
D5: Outline Business Case
Structure
A6: Supply Chain A5: Legal Structures & Taxation
A A
C3: Review Existing Governance Structures C4: Review Existing Operational Models
C C C12: Leading Practice Gap Analysis and Benchmarking
A
A7: Sourcing
D3: Develop High Level Target Operating Model
Facilities
C5: Review Existing Physical Locations C6: Review Facilities Principles
C C
D4: Agree Improvement Opportunities
D2: Opportunity Evaluation
C2: Data Gathering C2: Data Gathering C2: Data Gathering C2: Data Gathering
Process / Service
C7: Customer / Market Analysis C8: Review Service Metrics / KPIs
C C
Change Enabling People & Programme Management Technology Organisation Delivery
C9: Review Organisation Standards & Policies
C10: Review IT Principles
C C
C11: Data Review
B: Benefits, Project, Programme and Change Management
B15:Stakeholder Engagement
B B
B16: Communications B14: Resource Planning
B B
B10: Best Fit Change Approach B1: Project Initiation
B11:Transformat ion Vision
B12: Change Leadership & Organisational Capability B4: Programme Governance
B13:Transformation Capability Route map B5:Programme Set-up
B B
B B
B B B
B8: Programme Planning B6: Quality Management B7: Agree Benefits Process B9: Benefits Planning
B B
B2: Project Governance
B3: Project Management
To enable changes and benefits of the transformation to be sustained, it is vital that the appropriate change management activities and conditions are built-in from the outset, beginning with the Assess Stage; The Making change stick key success factors therefore should be applied in shaping how the above Asses Stage Phases are undertaken. The figure below describes the key change management considerations in the Assess Stage of a transformation programme.
transform*
Making change stick

Best-fit change approach Involvement

In the Assess Stage, involvement and engagement of key stakeholders begins as part of undertaking assessment activities. For example, appropriately involving stakeholders in identifying the change approach and benefits maximises levels of engagement. Likewise, in order for the Assess stage activities to be undertaken successfully, it is vital to begin engaging the front-line by consulting them and keeping them informed through appropriate communications. In parallel, a stakeholder analysis and communications audit is undertaken in order to develop a stakeholder engagement and communications strategy/plan for the programme, aimed at maximising commitment and minimising resistance to the transformation. This strategy/plan will be informed by the diagnosis of the best fit change approach, through which the appropriate balance of directive and inclusive change management activities will be identified. In the Assess Stage, a diagnosis into the best-fit change approach is gained through an enquiry into 5 key areas. In understanding the Context, Complexity and Consequence of the transformation, and the organisations Culture and Capability, it is possible to identify the Change Principles, and best fit Design Approach and Implementation Approach. The Change Principles permeate all aspects of the change approach and address how the change should be designed and implemented. Identifying the best fit change approach in this Stage will inform how benefits, involvement and sustainability issues should be addressed in the transformation.
Benefits
In the Assess Stage, the focus is establishing an appropriate benefits management process. Sponsors and stakeholders are involved in agreeing to a benefits realisation process, in benefits planning and in defining the benefits linked to the vision.
Benefits Making change stick
Sustainability
In the Assess Stage, an assessment is made into the change capability of the leaders and the organisation so that appropriate change leaders can be identified and change capability developed in the later Stages. Equally an analysis of the organisations culture in terms of current ways of working is undertaken to identify the behaviours that would support and hinder the transformation programme. An assessment of the current organisational structure and its design is undertaken to identify improvement opportunities so that a best-fit organisational structure can be developed aligned to the transformation.
Involvement
Sustainability
1.2 Interdependencies
The Assess Stage is the cornerstone of a successful programme as the baseline for all further activity within the programme is completed within this Stage. Therefore, all later Stages of the programme have a dependency on the Assess Stage. In particular:
A diagnosis of the best fit change approach will inform the transformation plan, and the appropriate balance of directive and inclusive change management activities, or how the changes are delivered throughout all the Stages. This includes identification of the change principles, and the best fit design and implementation approach that will enable benefits and changes to be sustained. Initial alignment of the leadership of the organisation later Stages rely upon continued robust leadership to maintain the transformation effort, embedding new ways of working into the business such that the change is sustained and full benefits realised; The baseline of the current organisation is created measurement of benefits and the good news messages that maintain a transformation programmes momentum, need a robust baseline against which to compare the change.
1.3 Benefits
The benefits of completing the Assess Stage for the organisation are that it creates a robust vision, strategy and route map for moving the organisation forward. It helps the leadership, the individual of the organisation and key stakeholders to understand the need for change, its impact and also what the organisation might look like once it has changed. Equally important, the vision and route map create a shared understanding of what success looks like, and generates enthusiasm for the change when it is created by involving and fully engaging with the people that will make the change happen and those who will be impacted by the change.
1.4 How to Access Reference Materials

transform* is available for practitioners to use in a variety of ways:
transform*
Making change stick

Online through Gateway An online version of the framework is available through gateway using the following link Gateway transform*. The online version contains all of the detailed descriptions of the Stages, Phases, Tasks and Steps within the framework. It also contains contextual links to reference materials for each of the tasks and links to other relevant methodologies, tools and guidance; Offline Navigator An offline version of the navigation for the framework is available for use as an aide memoire and also to support explanation of the framework to organisations. The offline version does not contain the reference materials but does contain links to the Gateway content; Downloadable Documents Downloadable Word documents are available for each of the Stages within the framework. These are useful to support the creation of proposals, etc. where practitioners need to copy some of the content. The reference materials are not included within these documents.
The reference materials within the Gateway version of the framework are linked to each of the tasks. At the bottom of each task page are three buttons that perform a contextual search for reference materials:

Templates Are example templates that can be used to complete the task; Tools & Guidance Are additional tools or guidance notes that are relevant to the task; Example Deliverables Are examples of the output deliverables described within the task.
1.5
How to apply Value Chain Consulting (VCC) methodology
Value Chain Consulting (VCC) is a problem solving methodology. It can be used to structure the approach to performing a task, or a series of tasks within transform*. Whilst the scope of transform* tasks to be performed will vary by organisation, the way in which the tasks are addressed needs to be consistent. Examples of how VCC may be applied across the four Phases of the Assess Stage are provided within each of the Stages.
transform*
Making change stick

A Determine Business Needs & Benefits

Purpose To review the ambition for the organisation and the drivers for transformation, including efficiency and effectiveness objectives, and regulatory pressures. Overview A clear vision paints a picture of what the future will be like. Many organisations have a vision and this Phase is about making sure that there is a common, shared understanding of the vision and the objectives for transformation. Lesson Learnt Note that the reason for linking the vision and strategy with the transformation programme is that it provides the business justification for the initiative. All transformation programmes take time (typically 1-3 years) and can be painful for the organisation to go through. Leaders may wish to stop them once difficulties and challenges arise. If the transformation programme is linked directly to the vision and strategy, it is more difficult for leaders to do this.
Existing strategic plans should be reviewed in line with the overall programme to ensure that the transformation activities support delivery of the organisations vision going forward. The objective of this Phase is to support the organisation in prioritising and in some cases re-validating its existing strategic objectives and focus of key resources. VCC could be used to test the validity of the strategy as a response to the need. Where the organisation is aware of a need for change and has yet to formulate a strategic response, VCC can be utilised to help the organisation to develop an appropriate strategy. To ensure that a critical mass of key stakeholders fully support the vision and business case, we need to ensure that the vision for the potential programme is clear and that stakeholders understand the type of change that could be possible for a number of critical work streams. The process undertaken should involve a series of workshops, focused interviews, document reviews and validation sessions involving key stakeholders and senior management. The process should specifically focus on the development of an agreed vision for an efficient and effective organisation of the future. Rather than take a deductive approach and open up the forum to any and every need, VCC would suggest an approach of hypothesising on the key needs and testing in the forums.
Assess Phase A: Determine Business Needs & Benefits
Inputs

Transformation Principles Background Information Strategic Documents Vision Business Plans Current Customer / Market Data
Key:
Client / External
Background Information Strategic Documents Vision Business Plans
Inputs i.e. existing documents

Deliverables from
the programme
A1 - i: Transformation Principles
A2 - i: Updated Transformation Principles (with Customer / Market Insight)
Interdependencies
A: Determine Business Needs & Benefits
Strategic Direction
A1: Review Strategy & Drivers A3: Consider Operational Locations
A A
A2: Customer /Market Needs & Insights A4: Legal & Regulation and Internal Boundaries
A A
C: Create Transformation Baseline B11: Transformation Vision
Structure
A6: Supply Chain A5: Legal Structures & Taxation
A A
A
A7: Sourcing
Updated Transformation Principles
Background Information Strategic Documents Vision Business Plans Transformation Principles
A3 - 2: Vision of Future Operating Models
A5 - i: HighLevel Review of Legal Structures & Taxation Issues
A6 - i: High Level Review of Supply Chain Issues and Direction
A7 - i: HighLevel Review of Sourcing Issues and Direction
A4 - i: Updated Transformation Principles (with Legislative & Regulatory Requirements)
Outputs
transform*
Making change stick

The key interdependencies include the Transformation Vision and the Transformation Baseline. Typically, as information is gathered to form the baseline, the organisations business needs and benefits can be further defined. The Tasks in this Phase are used to provide clarification on what direction the organisation wants to take by reviewing the vision and clarifying the organisational objectives. The benefits of this Phase include:

Understanding legislative and other requirements; Informing the baseline by which the organisation can measure the success of the transformation; Bringing clarity to the organisational direction and defining the drivers behind this; Achieving stakeholder buy-in to the direction through their involvement in defining the outcomes, benefits and vision; Clarifying the expected business outcomes and benefits; Being clear about the customer needs and insights required to inform the direction; and Validation of why the transformation is required.
The key tasks within Phase A are:

A1: Review Strategy and Drivers; A2: Customer / Market Needs and Insights; A3: Consider Operational Locations; A4: Legal, Regulation and Internal Boundaries; A5: Legal Structures and Taxation; A6: Supply Chain; and A7: Sourcing.
transform*
Making change stick

A1
Review Strategy & Drivers
Purpose To provide a strategic direction for the transformation that addresses the requirements and objectives of the organisation. Overview This task involves a high-level review of the business strategy and meetings / workshops with key senior management to gain an understanding of the drivers and objectives of the business transformation programme. For example, the organisation may be facing a new competitor with a lower cost base. There is a need to develop a strategic response. VCC, together with appropriate industry and organisation-specific knowledge can be used to develop an appropriate strategy and review relevant scenarios. Interdependencies
Interdependencies C: Create Transformation Baseline B10: Transformation Vision Establishing the baseline from which to establish the transformation Clarity on the current transformation vision
Inputs
Inputs Background Information Organisation background information on objectives, performance measures and targets, current improvement initiatives, etc. All documents and plans related to strategic direction A copy of the current organisational vision Related business plans with projected outcomes and benefits
Strategic Documents Vision Business Plans
Task Description
Tasks A1.1 Review Business Strategy Gather and review background information and to understand the drivers behind the transformation Test the organisations current thinking and positioning on major business objectives and to challenge the current strategies through visioning sessions, leading practice, performance indicators and policies
A1.2 Transformation Objectives
A1.1 Review Business Strategy

The first step in a transformation journey is to gather and review background information on the organisation. This may be conducted by interviewing key stakeholders and senior management and by reviewing strategic documentation such as business plans, strategic documents and visions for the future. It is important to understand the drivers for transformation. Transformation is required when a step change in performance is needed and there is a burning platform or imperative situation that needs to be addressed. This can be related to market forces, financial performance or change of direction and the
10
transform*
Making change stick

current business strategy should be used as the primary source of where the organisation wants to go and how it achieves its plans for the change programme. Interviews with the senior management are an effective way of achieving this and questions may include: What is the vision for the future of the organisation? How can the organisation achieve its vision? What are the major barriers that need to be overcome? What are the drivers for transformation and why? How will the transformation journey be achieved? Do financial targets or benefits exist that are a prerequisite for transformation?
A1.2 Transformation Objectives

Defining the transformation objectives is typically achieved by holding a senior management workshop that is designed to test the organisations current thinking and positioning on major business objectives and to challenge the current strategies through the use of visioning techniques, reviewing leading practices, performance indicators and policies. It also used to initiate and engage the leadership team for the transformation through early involvement and consultation. The main outputs of the workshop include: An aligned and energised executive and management team; Initial area of focus for the transformation; Areas requiring detailed investigation; Key work-streams and resourcing for the transformation; Documented visions for the key initiatives and prioritisation of resource; An introduction to all activities required to complete the transformation; and A document that captures all of the above that can be communicated to all individual. Lesson Learnt Creating a Transformation Objectives document describes why the transformation is being undertaken and provides inspirational goals for the transformation that can be used to provide positive messages and momentum for the programme. If the goals of the transformation are not well defined and the reason for it well understood and accepted by management, then the programme will be more likely to suffer from changes in scope, duration and levels of engagement. The Transformation Objectives document should be considered a key communication document and hence may be used with a number of different types of stakeholders for communications, buy-in and engagement purposes. Hence the document may need to be presented in different forms to suit different types of stakeholders.
The aims from the workshop are to describe the direction the leaders of the organisation want to go to create the new organisation and why. It is a starting point: opportunities will be refined and adjusted as the approach progresses. It is a statement of intent by the leadership team of where they want to go and how they are going to get there. In summary, it is a unified commitment to act by the leadership team.
For an HR transformation programme, for example, a similar approach would be taken to engage with senior stakeholders. This is referred to as a mobilisation workshop. The focus of this is to bring key stakeholders together, confirm the objectives of the transformation project, vision, scope, why the project is important, project plan, establish any challenges or risks to the project and how to overcome them, and establish a way of working which is later followed by creation of a PID or project charter. The output from this workshop form the transformation principles and are captured in a Transformation Objectives document, which is used to support the transformation ensuring focus on the critical tasks to deliver the Assess and Design Stages. For example, this Objectives document may:
11
transform*
Making change stick

Describe the vision and strategy for the organisation (or reference other documents that describe this); Describe how the organisation will change in terms of areas such as the customers it serves, its operations or services it provides, the channels through which it operates or provides services, the market perception and branding that are to be created;
For example, a new front-office customer service centre is to be created (to improve access times and channels to contact the organisation). It will support the provision of new customer-focussed services based upon customer insight and understanding of customer segments (e.g., demographic changes); Describe how the organisation will reconfigure itself to provide these changes e.g., creating a new back-office shared services (Finance, HR, Procurement, Property and IT) or a new policy / commissioning model, separating policy from delivery of services. Alternatively the organisation may try to become more adaptable in order to flex to changes in demand or invest resources in different areas over time; Describe how the organisation will change in terms of its finances, both revenue and capital e.g., describe How the operating costs of the organisation need to reduce by X% over the next 1-5 years, with income increasing by Y% and capital receipts needed of Zm to fund investment in new or changed products or services.
Depending upon how well defined the transformation is, this document may not need to be large but merely reference what is already established. The purpose of the document is to ensure that the scope of the transformation is defined. and should explicitly state what is not changing as well as what is. The potential requirement for an initial high-level business case As well as defining the objectives for the transformation, it may be necessary to create an initial high-level business case for the transformation, in advance of doing any significant data gathering and baselining in Phase C, if There is scepticism about the achievability and affordability of doing the transformation; The Data Gathering in Phase C has the potential to be expensive, and costs need to be justified by providing a view of the scale of savings available; and/or The measures for success need to be clearly articulated, both fiscal and non-fiscal.
Note that at this point the benefits may be conceptual (e.g., based on general principles, observations, benchmarks, estimates from executive interviews / team workshops), as actual opportunities may not have been defined in detail. For example: We need to save X% from our revenue budget starting from financial year XX; We have an additional revenue budget of Ym and capital budget of Zm to invest in identifying savings all other revenue and capital costs must be met through savings; We believe that we can save X% from our revenue budget because: o o o o o o o Our costs are X% higher compared to similar organisations (through simple benchmarks e.g., benchmarking club); Our assessment of our processes in area XYZ is that they are poor; Our assessment of our manufacturing downtime is that it is excessive; Our assessment of product quality is that it is poor; Our assessment of our use of IT in area XYZ is that is poor; Our assessment of our skills base and investment in people in area XYZ is poor; and Our assessment of our use of our assets (buildings, contracts, etc.) in area XYZ is poor;
We believe we can increase our service to our customers through: o Improving product reliability;
12
transform*
Making change stick

o o o o o
Increase in customer satisfaction rates to 90+% on first point of contact; We will increase the hours and channels of access to our services and target this services to specific segments of our customer base; We will be pro-active in providing our services i.e., reaching out to our customers; We will partner with other organisations to build services based around customer needs, not our own ways of working; and We will provide more visibility and accountability for our services through new reporting and democratic arrangements.
We believe that we will become a more adaptable organisation through: o o o o o o Separating policy and strategy from delivery and improving our commissioning and sourcing of delivery; Implementing a flexible resourcing model to meet fluctuations in demand; Reducing our unwanted individual turnover to less than X%; Setting minimum targets for training and becoming an accredited Investor in People; Creating a new performance management regime, focussing on improving individual and team performance and not accepting poor performance; and Measuring employee satisfaction every quarter, with a target of 90% employee satisfaction by 20XX.
We believe we will become a more sustainable organisation through: o o Ensuring all new investments pass gateways tests for sustainability and economic regeneration; and Setting a new target of XXX for carbon emissions and energy usage across the organisation, with accountability identified for hitting these targets.
Outputs & Deliverables

Outputs & Deliverables A1 i: Transformation Principles A set of principles to underpin the business transformation
Benefits

Senior management engagement and agreement on the vision and objectives of the transformation. Clarity of direction to proceed with the next stage of the transformation.
Knowledge Transferred to the Organisation
An understanding of the objectives and a set of common principles to underpin a transformation programme. An approach and process for information capture to establish a baseline position on the business needs and benefits.
13
transform*
Making change stick

A2
Customer / Market Needs & Insights
Purpose To verify the alignment of the organisations vision with that of the market and its customers.
Overview This task is used to establish a position on areas such as: Understanding strategies for growth Organisational development and where the organisation is in terms of maturity, and what needs to be addressed to take the organisation to leading practice levels Understanding customer needs Identify groups of customers whose requirements are currently not fully addressed and understand where current offerings fail and which product / service attributes customers really want. Validating market opportunities Segment customers based on desire or ability to buy the product or use the service and identify the early adopters, whose demand / willingness is highest. Quantify market in terms of size (volume of customers) and characteristics. Understanding the landscape Evaluate prior commitments (e.g., technology, supply chain, or processes) that could influence strategic choices and ability to respond. Identify sources of growth that the business can use to increase or improve customer service Assessing alternative business models Test the boundaries for the business case address all the what ifs; address the opportunity from different perspectives. Understand the pay offs to different customers under each option or scenario as a predictor of future industry out-turn and potential reactions and evaluate the current state of overall business activities and functions relevant to service improvement. Develop market benchmarks to provide the background context and highlight potential market positioning and direction. Outline the direct financial constraints and outline and establish process to comply with existing and expected legal and regulatory requirements. Take account of the organisations leadership resolve, attitude towards risk, capacity for change, HR considerations and the ability of the existing infrastructure and technology to support the level of change necessary. Market testing Through pilot testing, regularly assess how realistic the planning projections are and make adjustments as appropriate. Monitor actual versus budgeted spending and the assumptions supporting the time and cost projections until full volume capability is achieved. Understanding influences on demand Use analytical models to gain key insights and a deeper understanding of customers behaviour and their needs. Apply customer insight models to develop targeted sales and marketing activities - identify customer behaviours that present the opportunity to improve service provision. Set effective, measurable goals for each segment and gain quantitative insights into why organisations lose their customers and develop models to help customers.
14
transform*
Making change stick

Interdependencies
Interdependencies B10: Transformation Vision Clarity on the current transformation vision and identification of the best fit change approach
Inputs
Inputs A1 I Transformation principles Background Information The set of transformation principles to underpin the transformation Organisation background information on objectives, performance measures and targets, current improvement initiatives etc.. All documents and plans related to strategic direction A copy of the current organisational vision Related business plans with projected outcomes and benefits Information on how service is provided today, key measures and targets, current experience and standards of measurement, channels of use, segmentation plans, key processes, cost to serve, etc.
Strategic Documents Vision Business Plans Current Customer / Market Data
Task Description
Tasks A2.1 Customer Want and Dont Wants A2.2 Customer Alignment A2.3 The Customer Centric Organisation A2.4 Market Analysis A polling of customers to establish needs Needs aligned to the transformation Principles for developing a customer centric organisation Environment, competitive and growth strategies
A2.1 Customer Wants and Dont Wants

Complete a polling of customers either through electronic media or face-to-face to gather a list of wants and dont wants from the customer base. A sampling approach can be used and key customer segments should be targeted to derive a balanced view of the customers needs. This can be used to either validate or amend the transformation principles that have been developed. With the changing nature of the marketplace, determining customer needs and wants has taken on immense prominence for companies that apply best practice. With competition on a global scale, companies know that to differentiate themselves, they need a closer relationship with customers one that can anticipate needs and wants and satisfy them. As a result, rather than focusing primarily on the sell aspect of their business, leading companies are looking at the people factors and working to establish strong, long-term relationship with customers. Such relationships are essential for longevity of the company and the best strategy for increasing and maintaining relationships. Implement segmentation for greater insight into customer needs and wants - gather basic demographic data such as age, income and geographic location but look for more complex behaviours and preferences to analyse so they have deeper insight into customer needs and wants and whether the organisation is meeting them. To deliver required benefits data must be reliable so it is important to assess the data and how it is interpreted in terms of completeness
15
transform*
Making change stick

and accuracy. Leading organisations recognise that quality data is essential to effective segmentation variables and invest heavily in data modelling, data warehousing and data mining to capture and scrutinise extensive customer information. Self-segmentation in an offer may be packaged in a number of different ways so it is not about the choice of which service but the choice of which experience. The customer takes control of which choice; Exploit multiple channels to capture comprehensive feedback about customer expectations - Invest in data-collection and integration technology to track evolving customer needs and wants. Collect a mix of transactional data and behavioural information and capture unexpressed customer feedback by observing use of the service in real-life settings. Administer detailed customer surveys regularly to uncover areas of change and conduct live interviews with customer that elicit unique insight; Convert customer knowledge into product and service solutions - exploit the power of the Internet to gather customer knowledge and target customer needs. Incorporate customer knowledge into organisational wide planning and operating activities. Develop a working knowledge of the system architecture of business customers. Create a comprehensive system for gathering in-depth customer knowledge. Position transaction data as a central component of customer knowledge and collect knowledge that will strengthen relationships with the organisations customers; Accommodate customer service needs at every point of contact - Monitor incidents closely to identify true customer needs and identify customer service needs in real time. Direct employees to take ownership of the customer experience; and Leverage CRM technology to support customer needs and wants - Use analytical CRM applications to develop strategic customer insight and enforce data quality as the foundation of CRM initiatives. Personalise customer communications to build relationships and integrate customer information from all channels to provide a complete real-time view of the customer. Secure leadership commitment to an organisational wide CRM strategy. Organise the business around customers in order to provide solutions to their problems and Use online CRM marketing tools to capture customer data in real time.
Figure a: Customer Wants and Dont Wants
A2.2 Customer Alignment

Having collected the customer wants and dont wants they should be compared with the transformation principles and any conflicts resolved with the transformation principles updated. This can be achieved through a desktop exercise, with any conflicts documented and resolved through discussion with senior management.
16
transform*
Making change stick

A2.3 The Customer Centric Organisation

One of the functions of the organisation is to strengthen customer relationships. Best practice organisations view their association with a customer as a continually evolving relationship. All points of customer contact contribute to this relationship; face to face; call centre; Internet and web; and correspondence. Because each of these contacts delivers information or service to the customer, it is necessary to connect them all so the organisation presents a single face to the customer. By breaking down the silos of the organisation and tying together all the front office systems that touch the customer, information about the customer flows freely across the various business units. This free flow of information allows the organisation to develop a closer relationship with the customer, providing a more individualised service and enhancing the customers experience. The practical implications of the customer-centric organisation include the need to be able to: Respond to customer contact in a way that deepens relationships with customers with the aim that a satisfied customer is happy with the result of a single transaction; a loyal customer buys not once but repeatedly and even becomes an ambassador preaching the virtues of the organisation to others. This holds true for both private and public sector organisations; Private sector companies stand to differentiate themselves in the marketplace if they put the customer at the heart of their strategy and approach rather than design around internal organisational structure. Develop a customer-centric culture that supports customer facing individual by giving them access to up-to-the-minute information on both services and transactions that are complete or in progress; Design the structural core of the organisation and not just services using customer focused design principles; and Unify the organisations front office functions and integrate them to back-end computer systems to create a single interface for the customer.
A2.4 Market Analysis

There are three areas of consideration in market analysis: Environment: Strategy does not originate in a vacuum. To understand a companys strategy, it is important to explore the competitive situation, industry, economic and industry trends, technology, regulations and demographics that impact the organisation. he extent of these impacts looking across all organisational factors needs to be fully understood to ensure that appropriate action can be identified to align the changes; Growth strategy: Organisations attempt to succeed by developing strategies for growth. It is important to understand how the company has grown historically and how it is positioning itself for growth in the future. The existing asset base and the organisations access to capital are either enablers of growth or constraints of any growth strategy; and Competitive strategy: To succeed companies must compete. The competitive strategy dimension considers how an organisation creates and protects value. Competitive advantage is formed by an organisations mission, values and goals. Organisations also leverage what they do best to formulate and execute a competitive strategy.
Questions to consider when understanding competitive strategy include: Where is the organisation positioned in its chosen markets? Is the organisations competitive strategy one of cost leadership, product innovation, or customer intimacy? Does the organisation lead or follow the market?
17
transform*
Making change stick


Outputs & Deliverables A2 i: Updated transformation principles (with customer / market insight) Revised set of transformation transformation principles to underpin the
Benefits
An understanding of the customer requirements and verification of their alignment with the principles of transformation.
An approach to polling customers to capture high level requirements.
18
transform*
Making change stick

A3
Consider Operational Locations
Purpose To consider the optimum operational locations for the future business operations taking into account considerations such as market forces, globalisation and other international considerations. Overview This task is used to consider the implications of the transformation principles and emerging business strategy on operational locations. Interdependencies
Interdependencies B10: Transformation Vision Clarity on the current transformation vision
Inputs
Inputs A2 - i: Updated Transformation Principles (with Customer Insight) It is important to have an understanding of both customer needs and markets to inform decisions on operational locations
Task Description
Tasks A3.1: Translate business strategy into location requirements A3.2: Vision of future operating locations Assessing the location constraints and opportunities of each aspect of the emerging business strategy High level vision of broad geographical arrangement of operations
A3.1 Translate business strategy into location requirements

The geographical deployment of resources and activities should be derived from the business strategy. At this stage the assessment of physical location will be driven by the transformational principles and emerging business strategy. The location implications should be considered for each aspect of the emerging strategy or transformation principle. To a large extent the locations of business units will be driven by organisational logic. For instance, units can be more or less rigidly organised by activity (a functional-based design), by output (as in organisation by product line) or by customer (organisation by market segment or geography). The location constraints and opportunities for each aspect of the structure should be identified at a high level. Some units may be autonomous whilst others will be highly constrained in terms of location. Factors influencing location include: New or existing markets likely to see growth; Speed to market; Labour pools with relevant skills; Cultural fit; Industrial relations (e.g., the impact of redundancies arising from relocation on workforce relations). Access to finance; Tax, legal and regulatory environment;
19
transform*
Making change stick

Current locations and the cost of relocation; Cost of production; Industry clusters; Proximity to raw materials; Communications and accessibility; Geopolitics and stability; Business continuity; and Legal factors in maximising benefits in certain jurisdictions.
An organisations physical locations will also be influenced by the operating models adopted e.g., outsourcing, alliances and joint ventures. Depending on the degree of control required by the organisation, location decisions for aspects of the business may be transferred to business partners.
A3.2 Vision of future operating locations

Use the identified constraints and opportunities to develop a vision for the future operating locations. Where units are autonomous, an initial list of location options will need to be narrowed by assessing against relevant criteria, many of which will be drawn from the headings set out above at A3.1.

Outputs & Deliverables A3.2 Vision of future operating locations A description of the broad geographical distribution of future operations, drawn from consideration of the location constraints and opportunities flowing from the transformation principles and emerging business strategy.
Benefits
An early indication of possible new operating locations and surplus locations.
The key determinants of location as applied to the organisations specific business.
20
transform*
Making change stick

A4
Legal, Regulation and Internal Boundaries
Purpose To investigate and confirm if there are any legal, regulatory or internal constraints or drivers to the transformation principles. Overview This task involves a discussion with legal representatives from the organisation to determine if there are any current or planned legal constraints that could be applicable to the transformation programme. This task should also involve discussions with organisations within the organisation responsible for setting internal boundaries (codes of conduct, internal policies etc) that frame the voluntary boundaries the organisation must stay within in meeting its objectives. It is also important to take into consideration regulatory issues. Typical questions may include:

Is the desired organisational vision aligned with international and territory legal structures? Are there any immediately obvious legal barriers which could obstruct the transformation, or alternatively legal factors which could help the transformation and how it is undertaken? Are there regulatory requirements that need to be taken into account? Are there internal boundaries (codes of conduct, internal policies etc) that need to be considered as either a driver or constraint for transformation? How does the organisation currently define its risk appetite?
Interdependencies
Interdependencies C Creating the transformation Baseline B10: Transformation vision Establishing the baseline from which to establish the transformation Clarity on the current transformation vision
Inputs
Inputs Background Information Organisation background information on objectives, performance measures and targets, current improvement initiatives etc.. All documents and plans related to strategic direction A copy of the current organisational vision Related business plans with projected outcomes and benefits The set of principles that underpins the business transformation
Strategic Documents Vision Business Plans A1 i: Transformation Principles
Task Description
Tasks A4.1 Legal constraints and drivers Understanding with legal or policy representatives what the constraints and drivers are to the transformation
21
transform*
Making change stick

Performance Improvement Consulting Understanding on the regulatory environment that the organisation is operating within.
A4.2 Regulatory Issues
A4.1 Legal Constraints and Drivers

The legal constraints and drivers are a key input to the objectives of the transformation. This Step is about understanding, through discussion with legal or policy representatives, what the constraints and drivers are to transformation. To achieve this step, interviews are conducted and any updates to the transformation principles are made based on specific requirements. For example, a business which manages large amounts of customer data will need to address data protection / privacy law requirements. Whilst these should not prevent the project taking place, they may influence the chosen structure and steps taken to influence it.
A4.2 Regulatory Issues

Laws in certain countries may provide a benefit to the project e.g., using third party rights to help enforceability of contracts in a structure which otherwise gave third parties too much scope for reneging on the original deal. Compliance with regulatory bodies is mandatory in both the public and private sectors and failure to satisfy regulatory requirements can lead to significant fines and reputational damage. In the aftermath of the high-profile scandals that have hit the international business world in the past few years, corporate compliance is not a casual optionits a matter of survival. Through discussion with regulatory representatives, understand the regulatory environment that the organisation operates in. Identify relevant regulators, understand the regulators remit and power and determine the activities that the organisation is currently undertaking to ensure compliance.

Outputs & Deliverables A4 - i: Updated Transformation Principles (with Legislative & Regulatory Requirements) Revised set of transformation transformation principles to underpin the
Benefits
An understanding of constraining factors or opportunities for transformation as specified by policy, regulatory or legal issues. Early consideration of feasibility issues (see section A5.2)

The process of challenge in a legal or policy context. Understanding impact on a project and how these issues have been met in the past or might be overcome in future
22
transform*
Making change stick

A5
Legal Structures & Taxation
Purpose To consider the optimum high level legal and taxation structures for the future business operations taking account of considerations such as reductions in complex tax models, simplified legal company structures, and partnerships arrangements. Overview In this task, questions that should be considered include:

What is the optimum legal structure for the organisation or group? How can corporate structure and taxation models be simplified? What partnerships or business relationships exist and how should they look in the future? Have major third party contracts been reviewed? Has the organisation recently re-assessed its legal entity structure? e.g., legal entity structures can be changed to minimise tax burdens related to state and local taxes. International considerations include the ability to minimise tax and to repatriate profits. Is there an opportunity to benefit from structuring options such as European Companies (SEs) or use of cross-boarder mergers to facilitate the transformations?
Interdependencies
Interdependencies B10: Transformation vision Clarity on the current transformation vision
Inputs
Inputs A3 - i: Updated Transformation Principles (with Operational Location Options) A4 - i: Updated Transformation Principles (with Legal & Regulatory Requirements) Identification of potential operational jurisdictions is required to review the legal and taxation issues. Identification of potential regulatory jurisdictions is required to review the legal and taxation issues, and review of major third party contracts.
Task Description
Tasks A5.1: Industry Insight A review of models that have previously been used within the organisation industry sector. Evaluation and documentation of appropriate models, including SEs or use of cross-border mergers.
A5.2: Evaluate and Document
A5.1 Industry Insight

Using experts within the fields of company structures and taxation to provide organisation insight on models that are currently being used within the industry and any potential future trends.
23
transform*
Making change stick

For example in the public sector this may include details of: How joint ventures have been set-up; The use of joint committees; Charitable status and tax efficient models.
A5.2 Evaluate and Document

Evaluate the current environment compared with industry trends. In consultation with the organisations senior management team, agree the feasible options for the organisation. Liaise with the appropriate experts to ensure the validity of the options. Document the evaluation and feasible options.

Outputs & Deliverables A5 - i: High-Level Review of Legal Structures & Taxation Issues A review of potential high level legal and taxation issues and structures aligned to the operational location models.
Benefits
Early consideration of the feasible models for the organisation ensuring that later evaluation work is targeted towards things that will work. Early understanding of how the project might impact third parties and how they might need to be managed.
The typical models that have been used in the past and feasible options that others have implemented.
24
transform*
Making change stick

A6
Supply Chain
Purpose To consider the optimum high level supply chain structures for the future business operations taking into account considerations such as operational locations, partnerships arrangements, and lean and cost effective models. Overview In this task, questions that should be considered include:

How should the supply chain be structured to meet the organisational location model? How do partnerships affect the supply chain? How should best practice lean and cost effective models be applied?
Interdependencies
Inputs
Inputs A3 - i: Updated Transformation Principles (with Operational Location Options) An understanding of the potential operational locations is needed to be able to consider supply chain models
Task Description
Tasks A6.1: Review Existing Supply Chain A6.2: Review Existing Partnership Models A6.3: Evaluate & Document Review the existing supply chain and potential models Review existing partnership network and potential models Evaluate feasible options and document
A6.1 Review Existing Supply Chain

Review the existing supply chain at a high level by addressing questions such as: Who are the major suppliers? How is strategic procurement managed? What is the stratification of suppliers like? Is spend managed by category? How is supply chain technology used? i.e., use of e-procurement.
Use existing best practice to discuss possible options with senior management organisation.
A6.2 Review Existing Partnership Models

The models for partnership working in the supply chain should be discussed and an evaluation of the existing model in use within the organisation. This should include an early review of the most critical contracts to assess how the project might impact those relationships and how that in turn might impact
25
transform*
Making change stick

the project plan e.g., by recognising essential consents needed or requiring additional steps in the plan which would impact timing,
A6.3 Evaluate & Document

An evaluation of the potential options should be discussed with the senior management teamto identify feasible options for further review and assessment. The feasible options should be documented.

Outputs & Deliverables A6 - i: High Level Review of Supply Chain Issues and Direction A review of the supply chain issues related to the high level operational location models.
Benefits
Early consideration of critical suppliers and vendors and how they will be impacted by the project.
Potential supply chain models and techniques.
26
transform*
Making change stick

A7
Sourcing
Purpose To consider the optimum high level sourcing options for the future business operations taking into account considerations such as operational locations, partnerships arrangements, where to manufacture, make or buy, outsourced operations. Overview In this task, questions that should be considered include:

What are the most appropriate mechanisms for sourcing? What partnerships, business arrangements need to be in place? Is outsourcing an option that should be considered?
Interdependencies
Inputs
Inputs A3 - i: Updated Transformation Principles (with Operational Location Options) A5 - i: High-Level Review of Legal Structures & Taxation Issues Operational locations are important considerations when making decisions on sourcing options An understanding of the potential legal structure of the organisation or group may impact upon sourcing options and also local law issues in the operational locations. Supply chain models will impact upon the sourcing options
A6 - i: High Level Review of Supply Chain Issues and Direction
Task Description
Tasks A7.1: Sourcing Insights A review of models that are have previously been used within the organisations industry sector. Evaluation and documentation of appropriate models.
A7.2: Evaluate and Document
A7.1 Sourcing Insights

Use experts within the fields of sourcing options to provide organisation insights on models that are currently being used within the industry and any potential future trends. For example this may include details of: How outsourcing models work for different types of activities; The use of the private sector and individual secondment models; Sourcing using shared services models; Sourcing from the third sector; and Working with communities to deliver services.
27
transform*
Making change stick

The impact of Transfer of Undertakings (Protection of Employment), or similar / equivalent laws in other territories ,on arrangements
A7.2 Evaluate and Document

Evaluate the current environment compared with industry trends. In consultation with the senior management team, agree the feasible options for the organisation. Liaise with the appropriate experts to ensure the validity of these options. Document the evaluation and feasible options.

Outputs & Deliverables A7 - i: High-Level Review of Sourcing Issues and Direction A high level description of the potential sourcing options
Benefits
Early consideration of the types of feasible sourcing models.
Typical sourcing models in use within the organisations industry sector.
28
transform*
Making change stick

B Benefits, Project, Programme and Change Management

Purpose To provide programme and project management, benefits management and transformation capability expertise to support the change initiative. The tasks are supported by Making Change Stick to enable the changes and benefits to be sustained after the programme is closed. Overview Phase B is a Cross-Life Cycle Phase that cuts across the major Stages. The tasks completed within this Phase may be repeated though-out the lifecycle of a transformation programme. However, within each Stage the activities undertaken are usually subtly different in inputs, dependencies and outputs. The tasks that are referred to as Cross-Life Cycle activities are either ongoing tasks (such as stakeholder management) or tasks that need to be started early in the project but cannot be competed until later in the project. An example of this latter type of task is the benefits realisation process where steps related to achieving the planned business benefits are incorporated within the overall programme plan from programme inception but the detailed tasks and steps to realise the benefits will largely not be undertaken until the project post-implementation / continuous improvement phases are initiated. It is important that early consideration is given in programme and project planning to the Cross-Life Cycle tasks to determine which tasks should be used, when they should be commenced, which deliverables should be produced and a definition of the sign-off responsibilities for each of the deliverables. The timing of these tasks may vary significantly between projects and programmes. The management tasks in the Framework which are regarded as Cross-Life Cycle tasks include:
Programme Governance considers areas such as governance structure, the roles and responsibilities of key groups and delegation of authority; Programme/Project Management - addresses such items as programme / project plan and Programme / Project Initiation Documents development and maintenance, programme / project monitoring and reporting, scope, issue, risk, dependency and assumption management; Benefits Management - addresses the tasks necessary to ensure that the benefits are realised (includes project visioning, Recognition Events identification, benefit valuation, Backcast Planning and linkage of Recognition Events to benefit valuation) and may include the use of a Benefits Realisation Programme/Project Office and Isochron Benefits Realisation technique as some of the approaches to assist in the realisation process. Refer to B7 Agree Benefits Process for further information on Benefits Management approaches.; Design Authority - the key purpose of a Design Authority is to act as the business integrator who is/are the custodian(s) of the process that will determine the solution that is to be designed, implemented and operated. It ensures that development of the solution is in accordance with agreed business design principles and that a holistic approach is adopted to ensure the integration of the organisation streams of work. Includes the definition of a common vocabulary, a common process and a common understanding of how the transformation design will be delivered; and Change management - the key purpose of this task is to turn potential failure of a transformation programme into success, through the application of a number of key success factors. In addition to Benefits and Project/Programme Management, these success factors help accelerate the delivery of benefits and sustain changes. They include such activities as diagnosing and applying the best fit change approach and engagement strategy, developing a transformation vision, aligning leadership to the transformation, developing the organisation's capability to lead and deliver change (including skills/knowledge transfer), and aligning the whole organisation (including structure, culture and ways of working) to the transformation to enable sustainability.
In recognition of the Cross-Life Cycle nature of many of the activities included in Phase B, each Stage
29
transform*
Making change stick

within the framework contains a Phase B section, which outlines the typical Phase B activities that would be undertaken within that Stage. The activities outlined in this Phase refer specifically to the tasks and steps that would typically be undertaken in the Assess Stage of a transformation programme. The diagram below provides an overview of the inputs, outputs, interdependencies and tasks of Phase B within the Assess Stage:
Assess Phase B: Benefits, Project, Programme and Change Management
Inputs

Key:
Programme Roles & Setup Plan Leadership Capability Assessment Programme Governance Arrangements Programme Roles & Setup Communication s Feedback
Client / External
Scored Opportunity Log
Programme Plan
Deliverables from
the programme
A4 i: Updated Transformation Principles Vision Business Plans
Assess Stage Governance Arrangements Assess Stage PID
Organisation Structure Diagram
Scored Opportunity Log
Project Mandate / Brief
Assess Stage Governance Arrangements
Assess Stage PID
Staff Skills Matrix
Organisational Value Drivers
Interdependencies
B15:Stakeholder Engagement
Change Programme Management Delivery
B: Benefits, Project, Programme and Change Management
B B
B16: Communications B14: Resource Planning
B B
A: Determine Business Needs & Benefits
B10: Best Fit Change Approach B1: Project Initiation
B11:Transformat ion Vision
B12: Change Leadership & Organisational Capability B5:Programme Set-up B3: Project Management
B13:Transformation Capability Route map
D5: Create Outline Business Case
B4: Programme Governance B2: Project Governance
B B
B B B B
B8: Programme Planning B6: Quality Management B7: Agree Benefits Process B9: Benefits Planning
B B
B21: identify Change Actions
B10 - i: Transformation Vision Document
B4 - i: Programme Governance Arrangements B4 - ii: Programme Roles & Responsibilities
B5.1 i: PMO Induction Pack B5.2 i: PMO Monitoring and Reporting Tools
B6 - i: Quality Management Plan
B7 - i: Benefits Realisation Approach
B8 - i: Programme Plan B8 - ii: Quick win Project Plans B8 iii: Risk / Issue Management

B1 - i: Assess Stage PID
B2 - i: Assess Stage Governance Arrangements
B12 - i: Leadership and Organisational Capability Plan
B13 - i: Transformation Capability Route map
B14 - i: Highlevel Resource Plan
B9 - i: Agreed Benefits Milestones / Measures B9 - ii: Back cast Plan B9 - iii: Benefit Valuation
B16 - i: Communication Plan
B3 - i: Project Progress Reports
B15 - i: Stakeholder Management Plan
Outputs
A transformation programme typically starts with an assessment of the opportunities and the creation of a business case and plan for the change. It is unusual for an organisation to have the appetite to build a programme, benefits and change management infrastructure for the full transformation programme from day one of the programme, It is typical for a staged approach to building the necessary skills, capacity and structures needed to mange a major transformation programme. The activities outlined for Phase B reflect this requirement and have a staged approach to managing the change through:

Set-up and initiation of structures to manage the Assess stage initially; Agreement on the future structures required for the management of the full programme; Gaining buy-in and ownership of the change by key stakeholders within the organisation; and Development and roll-out of structures for the full programme once formal agreement to proceed to the Design Stage is gained after approval of the business case.
Phase B is dependant on Phase A: Determine Business Needs & Benefits. As the needs of the business are agreed and the benefits of the programme identified, the tasks within Phase B are used to formulate these initially into project plans and then into programme plans for the wider transformation programme. Task D5: Create Outline Business Case is dependent on many of the activities within Phase B, such as programme, resource and benefits planning. The Outline Business Case for wider transformation programme relies on robust plans and estimates for both costs and benefits. The key tasks within Phase B are:
30
transform*
Making change stick

B1: Project Initiation; B2: Project Governance; B3: Project Management; B4: Programme Governance; B5: Programme Set-up; B6: Quality Management; B7: Agree Benefits Process; B8: Programme Planning; B9: Benefits Planning; B10: Best Fit Change Approach B11: Transformation Vision; B12: Change Leadership & Organisational Capability; B13: Transformation Capacity Route map; B14: Resource Planning; B15: Stakeholder Engagement; B16: Communications.
31
transform*
Making change stick

B1
Project Initiation
Purpose To set-up and agree the initial scope, timescales, governance and objectives of the Assess Stage of the programme (with a view to building the Case for Change for the wider transformation programme). Overview Use of Project Office Methodology Detailed Work Tasks and Steps Summary steps only are included within this task as the detailed work steps to prepare, maintain and manage all of the various Programme / Project Plan components are contained in the Project Office Methodology in such Phases as: Phase C - Planning and Scheduling; Phase D - Resource Management; Phase E - Dependency Management; Phase F - Assumption Management; Phase G - Project Finances; Phase H - Business Case Monitoring and Benefits Realisation; Phase I - Communications Management; Phase J - Stakeholder Management; Phase K - Project Monitoring and Reporting; Phase L - Risk Management; Phase M - Issue Management; Phase N - Scope Management and Change Control; Phase O - Supplier Management; Phase P - Quality Management; and Phase Q - Knowledge and Office Management. For each engagement, the appropriate detailed tasks and steps should be referenced and drawn from the Programme / Project Office Methodology. This task describes the steps necessary to plan and schedule the project activities for the Assess Stage. The mandate for completing project initiation is usually contained within a project brief (or tender documentation). The mandate usually covers the scope of the Assess Stage where the business can justify the investment required to collate the information required to make the Case for Change in an outline business case for the wider transformation programme. Various formal methodologies may be used for the detailed work tasks and steps agreed as part of Project Initiation (and wider Project Management e.g., PRINCE2, the PwC Project Office Methodology or Project Management Institute (PMI) approaches). The project initiation and mobilisation phase is often regarded as week 0 of a project plan. It is a critical stage that sets the foundation for how the organisation transformation team will operate together and with others. A successful mobilisation mitigates a number of common pitfalls often associated with the early stages of a transformation such as:
Inconsistent messages and terminology used between organisation team members and stakeholders; Ambiguous objectives and team member roles; and Inefficiencies during the early stages of the project;
The activities undertaken as part of Project Initiation are documented in a Project Initiation Document (PID). The PID is defined as developing the basis for managing the project, including the planning objectives, deliverables, interim work products, procedures, organisation, chain of activities, resources types and numbers, timing, routines and finances. The purpose of the PID is to:

Allow a formal opportunity for the Project Sponsor to assess the viability of the project; Ensure that all parties have a common and agreed understanding of the purpose of the project, the objectives, what will be delivered and the responsibilities in achieving the stated goals. Acceptance of this PID is taken to mean the above issues are understood and that commitment is given to providing the resources and effort identified as necessary for successful completion of the project. In this way this PID acts as a formal agreement between the Project Sponsor and the project team; and
32
transform*
Making change stick

Provide a base against which any need for alterations to the project can be measured. Once the PID is approved any requested amendments are subject to a change control procedure that must be sanctioned by the Project Sponsor before being incorporated.
Interdependencies
Interdependencies B2: Project Governance Formally setting up the project governance structure as outlined in the PID. B2 relies on the agreement created during the project initiation task.
Inputs
Inputs Project Mandate / Brief A project mandate or brief is usually created by the organisation to kick-off approval for the Assess Stage. This can be in a number of forms for example: a formal Invitation to Tender or more informal project briefing meeting.
Task Description
Tasks B1.1: High Performing Project Team B1.2: Confirm any procedures, standards, methods or tools B1.3: Confirm Resources Joint kick-off event. Confirm which methodologies and tools will be used for the project.
Confirm the project team(s) including both internal and external resources. Creation of the Project Initiation Document.
B1.4: Create Project Initiation Document
B1.1 High Performing Project Team

The success of a transformation programme begins with a successful project delivery team. In the same way that support would be provided to a client organisation looking to build, integrate and lead high performance teams in their business, it is equally important to apply similar ethos and principles to the project/programme delivery team. A high performing project delivery team is all the more important given the lie-cycle, scale and duration of a transformation programme, and when a new team, such as that of the client and consulting organisation, come together. A High Performing Team is a class of team that outperforms basic, traditional teams. The essence of a High Performing Project Team is a commitment to: A clear vision of success and ambitious goals Engaging the best in all team members, all the time Clarity and transparency of team processes, accountabilities, and communications Integrity, mutual support and standing for each others success Mutual accountability and collective responsibility Ongoing measurement of its own performance and the way it behaves as a team Living out of its comfort zone, always looking for ways to improve, uncovering new possibilities and embracing change
The key characteristics that drive high performance in teams can be simply captured into four groupings, as highlighted in High Performing Team Four Fundamentals Framework below (Figure b). Guidelines on
33
transform*
Making change stick

how to assess, build and monitor progress of a High Performance Team, can be found in the High Performance Team Handbook on Gateway. It includes a quick High Performance Team diagnostic and measurement tool, and guidance material. Experienced practitioners should be called on to support the development of High Performance Teams.
High Performing Team Four Fundamentals Framework
Goal Alignment
Structural Clarity
Change Agility
Constructive Behaviours
Figure b: Key stages of a Team On-Boarding
It is also possible to use other complementary team measurement and psychometric tools, such as the Belbin Team Styles or Myer Briggs Type Indicator (MBTI), which are invaluable in helping identify preferred styles, team working strengths and limitations, and team roles. These tools can then be used as a basis for supporting team integration and team development activities. Another vital activity and component in establishing a high performing team is team on-boarding. Team on-boarding is an accelerated project kick off event, generally held over 2-5 days.. This event accelerates a project kick-off through a set of collaborative events that help share project methods, activities and terminology across the project team. It is a vital component in establishing a high performing organisation. The team on-boarding should be facilitated by experienced members of the project team. At this event workstream objectives and activities are discussed and agreed. This in turn mitigates any ambiguity on immediate activities and requirements from the project. A key component of the team on-boarding is to introduce the team to the relevant tools and techniques that will be used during the transformation. This can range from discrete techniques such as Root Cause Analysis, RACIs and process mapping to more comprehensive collections of techniques or methodologies such as Lean or Six Sigma. This in turn may lead to identification of training needs for the team. The key features of team On-Boarding are illustrated in Figure c.
34
transform*
Making change stick

Day One
Day one is designed to lay the foundations for a high performing team and accelerate the process of gaining a common understanding of the challenges, objectives and ways of working
Day Two
Building on the platform created in day one, day two is designed to accelerate the process of establishing effective workstreams with agreed goals and work plans. This mitigates any uncertainty within workstream and allows project members to work collaboratively to agree immediate work plan activity
Setting the Scene
Understanding the Workstreams and their objectives
Building a common Understanding
Building a High Performing Team
Agreeing the challenge
Understanding the immediate requirements
Understanding how to work together
Integrated 10 Day plan
Figure c: Key stages of a Team On-Boarding
B1.2 Confirm any procedures, standards, methods or tools

Organisations may have adopted proprietary project management approaches such as PRINCE2 (PRojects IN Controlled Environments) for project management or SSADM (Structured Systems Analysis and Design Method) for systems development. Organisations may have standards or tools which they wish to use within the Project Office such as project planning tools (e.g., Microsoft Project, Primavera P3e/P6 Web, CA Clarity, Oracle projects, SAP RPM, Sharepoint). Where organisations do not have existing standard tools, we need to scope which tools are needed to support the transformation, and decide which of these tools we should leave with the organisation. Confirm any procedures, standards, methods or tools that the organisation may wish to use as part of the project. Confirm their applicability.
B1.3 Confirm Resources

Agree the project team resources including both internal organisation and external e.g., third parties, contractors and/or consultants. Agree roles and responsibilities for the team members and agree a team structure. Document the team structures, roles and responsibilities.
B1.4 Create Project Initiation Document

The completion of the PID is an iterative task which typically involves: Identifying all of the tasks to be performed given the scope of the project and the technical and business constraints; Confirming the project parameters; Developing the project governance; Defining the project controls; Agreeing the scope of work and the technical and management deliverables that will be produced
35
transform*
Making change stick

during the project; Agreeing the quality and acceptance criteria; ; Producing agreed risk log and mitigating controls; Estimating the effort and cost of completing each task; and Project scheduling.

Outputs & Deliverables B1 i: Assess Stage PID The PID includes such areas as the business justification, scope, high level milestones and dates plans, key individual and resources, key dependencies and risks, critical success factors and project objectives for the Assess Stage.
Benefits All parties will have a shared understanding of the work to be completed as part of the Assess Stage and formal agreement can be reached on timescales and deliverables for the project. The client and consulting project team are integrated and developed as a High Performing Team, with common vision and goals, clear roles, accountability and responsibility, and the energy and enthusiasm to deliver a successful transformation programme. The project initiation starts the process of identification of benefits for the wider transformation and should be used to help confirm the expected benefits that the organisation will be seeking from the programme.
Knowledge Transferred to the Organisation Typically the organisation will learn how to:

Set-up and agree a project structure; Run a project kick-off meeting; Create a Project Initiation Document.
36
transform*
Making change stick

B2
Project Governance
Purpose To set up the formal meeting schedules and agree roles and responsibilities for the governance of the Assess Stage of the transformation programme which may be an interim arrangement in anticipation of formal governance arrangements for the overall transformation programme. Overview Setting-up and implementing the Project Governance structure for the Assess Stage of the transformation programme comprises three main activities:

Agreement and implementation of the governance structure; Agreement and implementation of the schedule of meetings; and Agreement and implementation of the reports and controls to be used;
Interdependencies
Interdependencies B1: Project Initiation Project governance relies upon a formal agreement and sign-off of the scope of the project to be agreed. Project management requires formal governance structures to be agreed and set-up.
B3: Project Management
Inputs
Inputs B1 i: Assess Stage PID The project governance structure should be documented as part of project initiation.
Task Description
Tasks B2.1: Agree and Implement Governance Structure Agreement structures. and implementation of the project governance
B2.2: Agree and Implement Schedule of Meetings
Agreement and implementation of the schedule of meetings used to manage the project. Agreement and implementation of the reports and controls that will be used in the management of the project.
B2.3: Agree and Implement Reports and Controls
B2.1 Agree and Implement Governance Structure

The governance structure for the project should be documented as part of the PID (see task B1: Project Initiation). This step is about the formalisation of the agreed governance structure and agreement on roles and responsibilities. Typically questions such as the following are asked to confirm the structure: Who will constitute the Project Board? The Project Board usually consists of a Project Sponsor, senior management with an interest in the outcomes of the project and senior management / suppliers that will deliver the agreed products of the project.
37
transform*
Making change stick

What are the Project Boards responsibilities? The Project Board is responsible for ensuring that the business objectives on which the project was authorised are met and delivered within the agreed tolerances for time scale and budget. The Project Board usually meets in-line with key project milestones and would otherwise review and comment on deliverables remotely. Its purpose is to agree and sign-off the key deliverables from each stage of the project. Who is the Project Manager? What will they be responsible for? The Project Manager is responsible for the day-to-day management of the project. Their prime responsibility is to ensure that the project produces the required products, to the required standard of quality and within the specified constraints of time and cost. They are also responsible for the project producing a result that is capable of achieving the benefits defined in the business case. Who is the project team? What roles do they have? The project team consists of Organisation resources with the necessary skills required by the project. Typically during the Assess Stage, a range of skills is necessary e.g., experience of setting-up and running transformation programmes, experience of the industry sector organisation and experience of cross-organisational activities. Will the project require formal project support? The provision of any project support is optional. The Project Manager may delegate various administrative and functional responsibilities to project support.
Figure d outlines an example project governance structure.
38
transform*
Making change stick

Client Project Sponsor Client Project Quality Assurance Core Team: Client Core Team: PwC
PwC Engagement Partner PwC Quality Assurance
Client Project Board
PwC Project Director
Client Project Manager
PwC Project Manager
Project Support
Service Area Project Team Members
Cross Cutting Team e.g. Finance, HR, Legal, IT
Lead Consultant
Lead Consultant
PwC Industry Sector Expert Pool

Consultant A Consultant B Consultant C
Cross Organisation Activities Expert Pool

Consultant D Consultant E Consultant F Consultant G Consultant H Consultant I Consultant J Consultant K Consultant L Consultant M Consultant N Consultant O
Best Practice Knowledge Sharing Pool

Consultant P Consultant Q Consultant R
Industry Specialism Industry Specialism Industry Specialism
Property Finance Procurement / Supply Chain ICT / Information HR Customer Management Shared Services Mobile & Flexible Working Workforce Management Capacity & Leadership Communications Legal
Transformation Client Transformation Client Transformation Client
Figure d: Example Project Governance Structure
B2.2 Agree and Implement Schedule of Meetings

This step is about the formalisation of the schedule for key meetings in the governance of the project. Typically the following questions should be answered: What meetings will be required? When will they take place? What are the inputs and outputs of the meetings? and Who will attend?
Figure e outlines an example schedule of meetings.
39
transform*
Making change stick

Performance Improvement Consulting Purpose To manage the resources and strategic direction of the project. To update team members on project progress to communicate change. Attendees Programme Board Members; Project Manager/s. Project Team Members; Project Support. Frequency Monthly (or inline with key milestones) Inputs Project Progress Report Outputs Minutes Actions. and
Meeting Project Board
Project Team Meetings
Weekly
Project Team Briefing
Minutes Actions
and
Figure e: Example Meeting Schedule
B2.3 Agree and Implement Reports and Controls

This step is about the formalisation of the reports and controls that will be used in the governance of the project. Typically the following questions should be answered: What is the format of the reports that will be taken to the project board? What other reports will be required to manage the project? How will risks and issues be controlled? How will change control work?
Figure f outlines example reports and controls.
Report Project Initiation Document
Prepared By Project Managers
Reported To Project Board
Purpose To define the project, to form the basis for its management and the assessment of overall success. The PID is prepared as the initial deliverable for the project To involve the key organisations involved in agreeing the project and to sign-off the key deliverables from each stage of the project. To highlight the key milestones, deliverables, project tasks and resources that will be employed during the next stage. To identify, evaluate, manage and monitor the risks that affect their project. To update the Programme Management Office on the status of each of the projects and the main areas of project activity. To report progress against the project plan.
Frequency Near to start of project the the
Project Board Meetings
Project Managers
Project Board
Monthly
Next Stage Plans
Project Managers
Project Board
Ad-hoc
Project Risk and Issue Log
Project Managers
Project Team Meeting
Weekly
Highlight Report
Project Managers
Project Board
Monthly
40
transform*
Making change stick

Performance Improvement Consulting Prepared By Project Managers Project Managers Reported To Project Board Purpose To summarise the progress of the project To advise the project board of a forecast that a plan will exceed the tolerance levels set in terms of budget and time, and provide an analysis and options for the way forward. To give a summary of progress to date, the overall project situation and sufficient information to ask for a Project Board decision on what to do next with the project. To describe the deliverable that has been produced, to document a quality review (check) of the product and to note its official signoff. Frequency Ad-Hoc
Report Checkpoint Report Change Control Report
Project Board
Ad-hoc
End Stage Reports
Project Managers
Project Board
Ad-hoc
Product Description and Sign-Off
Project Managers
Project Board
Ad-hoc
Figure f: Example Reports and Controls

Outputs & Deliverables B2 - i: Assess Stage Governance Arrangements Documentation of governance arrangements, including: structure, membership, roles, responsibilities, meeting schedules, reports and controls.
Benefits Roles and responsibilities within the project will be clearly defined with the procedures and reporting processes agreed. This typically leads to a more successfully run project.

Set-up and agree the project governance including techniques for agreeing roles and responsibilities; Create meeting schedules that align to key project milestones; and Set-up project reporting templates and controls.
41
transform*
Making change stick

B3
Project Management
Purpose To manage the project within agreed tolerances and support the Assess Stage by ensuring that the correct resources with the right skills are available to build momentum into the project and subsequent programme. Overview This task describes the typical project management steps undertaken to manage the initial Assess Stage. Use of Project Office Methodology Detailed Work Tasks and Steps Summary steps only are included within this task as the detailed work steps to prepare, maintain and manage all of the various Programme / Project Plan components are contained in the Project Office Methodology in such Phases as: Phase C - Planning and Scheduling; Phase D - Resource Management; Phase E - Dependency Management; Phase F - Assumption Management; Phase G - Project Finances; Phase H - Business Case Monitoring and Benefits Realisation; Phase I - Communications Management; Phase J - Stakeholder Management; Phase K - Project Monitoring and Reporting; Phase L - Risk Management; Phase M - Issue Management; Phase N - Scope Management and Change Control; Phase O - Supplier Management; Phase P - Quality Management; and Phase Q - Knowledge and Office Management. For each engagement, the appropriate detailed tasks and steps should be referenced and drawn from the Programme / Project Office Methodology. Various formal methodologies may be used for the detailed work tasks and steps agreed as part of Project Initiation ( e.g., PRINCE2, the PwC Project Office Methodology or Project Management Institute (PMI) approaches). There are three key aspects of project management that are critical for the initial stages of a transformation programme:
Project scheduling: Is critical to the initial stages of a transformation due to the large number of subject experts that are typically called upon to inform the initial review of the organisation this requires iterative scheduling to happen during the Stage. Project Monitoring & Reporting: Once the project plans and all of their various components are defined and maintained, project monitoring and reporting is completed on a pre-determined basis and involves: The monitoring of actual project progress as compared to the planned project progress and the collection of key progress metrics such as risks, issues, changes and dependencies; and The reporting of project status, costs and outputs and other relevant information, at a summary level, to the project sponsor, project steering committee and other project stakeholders.
Change Control: Transformation programmes are typically complex in nature and therefore difficult to predict the exact work to be undertaken at the outset. A mutually agreed change control procedure is essential to ensure that when changes to project plans, resources, activities, etc. are necessary, procedures are in place to be able to complete the change quickly to maintain momentum.
Interdependencies
Interdependencies B1: Project Initiation Project management requires the formal approval to proceed that is gained as part of the project initiation task.
42
transform*
Making change stick

Inputs
Inputs B1 - i: Assess Stage PID The agreed scope, timescales, resources and tolerances will be outlined in the PID for use as a baseline to project management. Formal governance arrangements for reporting progress and gaining approval to proceed at project boards are an integral part of the project management process.
B2 - i: Assess Stage Governance Arrangements
Task Description
Tasks B3.1: Project Scheduling Project scheduling is an important aspect during the assess stage and is usually an iterative processgiven the large numbers of specialist resources used to assess the organisation. Project monitoring / reporting are the key management tools used by the project manager. Change Control is used when changes to scope, resources, timescales, etc. are necessary. The Assess Stage in a transformation programme is usually complex and difficult to fully define. Change Control is a tool to support the management of this complexity.
B3.2: Project Monitoring / Reporting
B3.3: Change Control
B3.1 Project Scheduling

Project scheduling is defined as the process of determining when project activities will take place depending upon defined durations and precedent activities. Project scheduling is one of the critical management tasks as it dictates the timeframes in which the project will be completed, the budgets /costs in terms of resource requirements and the sequence of tasks to be completed. Project scheduling typically involves: Assigning resources to project tasks; Balancing completion dates against the availability of the appropriate resources to complete all tasks within the available time; Identifying dependencies between tasks so that they are scheduled in the correct sequence; Identifying realistic start and end points (elapsed time) to accommodate the number of man-days work for each given task; and Use of techniques such as critical path analysis to identify those tasks which are critical to the success and timely completion of the project.
Within the Assess Stage project scheduling is usually an iterative task due to the complexity of the activities involved in assessing a whole organisation for transformation.
B3.2 Project Monitoring / Reporting

Project monitoring typically involves tracking five variables: Schedule - the estimated effort and duration versus the actual effort and duration; Costs - the estimated cost versus the actual costs; Deliverables - what products or components have been delivered and plan to be delivered; Quality - how well are the deliverables being completed; and
43
transform*
Making change stick

Benefits - are processes in place to achieve and to measure benefits realisation.
The transition from the project planning / scheduling activities can be iterative in a transformation programme. Once the initial project plan is created transition to plan management by: Completing a structured walk-through of the project plan; Reviewing and approving the project plan; Implementing the data collection, project tracking and management processes for each of the project plan components; Maintaining the project plan; Preparing and distributing project plan and schedule reports following the agreed distribution schedule; and Holding project team planning and scheduling meetings.
B3.3 Change Control

In this step, the process for managing changes that impact the project scope, benefits, requirements, deliverables, schedule or costs and the associated roles and responsibilities are defined and agreed. Supporting guidance, forms and templates are created and the process is implemented and managed. A change is defined as any alteration to the scope, requirements (both business and technical) and deliverables that impacts the project baseline, timing or cost. A change is different from an issue. However, the approved resolution of an issue may require the creation of a change request. A change request is raised and authorised for any change or deviation from the project baseline, timing or cost. The project baseline, timing and cost are normally initially defined or frozen when management signs off the completed initial project plan and budget.

Outputs & Deliverables B3 i: Project Progress Reports Project Progress Reports can take a number of forms such as: Next Stage Plans; Risk & Issue Log; Highlight Reports; Checkpoint Reports; End-of-Stage Reports; Change Control Log; Change Request Forms.
Benefits
The Assess Stage will be properly managed to deliver the agreed deliverables and the senior stakeholders within the organisation will be adequately informed of progress from the start to the end of the stage. This will lead to improved probability of delivering within budget and to the agreed scope.
Schedule resources for complex change activities;
44
transform*
Making change stick

Project monitoring and reporting techniques, including: o Use of Issue & Risk Logs; o Creation of Highlight Reports; o Use of a change control log; and o Creation / Approval of Change Requests;
45
transform*
Making change stick

B4
Programme Governance
Purpose To agree the programme governance arrangements for the wider transformation programme. Overview The objectives of programme governance are to govern a programme throughout its life. This involves: defining programme roles, responsibilities and accountabilities; being clear about programme milestones, benefits and risks; monitoring progress against delivering these milestones and benefits and managing risks; and keeping key stakeholders informed of progress. In developing a governance structure for a transformation programme and the organisation roles within it, there are a large range of options. There are, however, some best practice principles that should be considered as part of the programme governance design including:
Ultimate responsibility and accountability for the programme must be clearly defined and accepted at an appropriately high level within an organisation to maximise the likelihood of successful outcomes and may lie with the ultimate Business Owner. For smaller projects, a line manager may fill this role. This role is called the Programme Sponsor; Include representatives from each major business unit directly in the decision making process, at least through their inclusion on the Programme Board; A governance structure exists with clearly defined terms of reference, accountabilities and decision making criteria for ongoing control and monitoring of the transformation programme; Programme and projects are managed by qualified Project and Programme Managers certified to industry standards; Programmes have evidence of project costs and benefits base-lining at initiation and are able to provide an accurate estimate to the real project cost; Programmes are subject to stage gate funding, ensuring effective pacing of projects through their full lifecycle and are able to demonstrate adequate risk and assurance provision; A single view of the strategic work programme exists with major event / milestones mapped and measured against progress achieved; Programmes are subject to Independent Quality Assurance reviews, the review being structured around a standardised framework, with findings published to a relevant corporate assurance group; Risk management is conducted within a risk assessment framework, with evidence of risk appetite, active risk planning and controls and the application of sensitivity models within business case profiles; and Benefits realisation plans exist and are actively monitored both at the business unit level and corporately for their contribution to strategic objectives and any linkages to operational budgets for business units.
The steps in this task outline a list of the key roles and areas of responsibility of a typical governance structure, an example of which is shown in Figure .
46
transform*
Making change stick

Transformation Governance Structure

Executive Leadership Team Chief Executive Directors
Design Authority
Programme Board
Programme Director
Programme Manager, PMO resource, Change Management, & Communications
Project Manger Workstream 1
Project Manager Workstream 2
Project Mange8 Workstream 6
Figure g: Example Programme Governance Structure
Interdependencies
Interdependencies Design Stage Before moving on to the Design Stage of the transformation programme formal governance arrangement must be created and implemented.
Inputs
Inputs B2 - i: Assess Stage Governance Arrangements The interim arrangements for governance created at the start of the Assess Stage should be evaluated to see if they are fit-for-purpose for the wider transformation programme.
Task Description
Tasks B4.1 Agree Executive Leadership Roles & Responsibilities B4.2 Agree Structure, Roles & Responsibilities of Programme Board B4.3 Agree Structure, Roles & Responsibilities of Design Authority B4.4 Agree Structure, Roles & Responsibilities of Agree and document the Executive Leadership roles and responsibilities on the programme. Agree and document the structure, roles and responsibilities of the programme board. Fill the posts on the board. Agree and document the structure, roles and responsibilities of the design authority. Fill the posts in the design authority. Agree and document the structure, roles and responsibilities of the
47
transform*
Making change stick

Performance Improvement Consulting PMO. Fill the posts in the PMO.
Programme Management Office (PMO)
B4.1 Agree Executive Leadership Roles & Responsibilities

This group is responsible for ensuring the business objectives are met and delivered within agreed timescale and budget tolerances. This group should be comprised of senior management. Key responsibilities include: Provide strategic alignment and oversight; Overall responsibility and authority for the programme; Accountability for the programmes success; Address and remove any blockages affecting the change; Sponsor the actions required to ensure corporate commitment to the programme; Align the programme to the overall strategic objectives of the organisation; Serve as champions of the programme; Provide direction and guidance on issues brought forward by the programme director; Provide oversight for risk management; Approve changes to programme management procedures, programme plans, future stages, programme deliverables and extra funding; Responsibility and allocation of the agreed programme budget; and Agree reward / incentives for the groups involved.
B4.2 Agree Structure, Roles & Responsibilities of Programme Board

Each transformation programme should be governed by a Programme Board. The Boards primary role is to ensure that benefits have been clearly defined and to hold the Programme Director / Design Authority to account for the realisation of project outputs and business benefits. Membership of the Programme Board should include senior management and key stakeholders impacted by the transformation, including employees and business partners. It is also responsible for monitoring the programmes progress, risks and mitigation steps. The Programme Board is responsible for authorising changes to the programme or budget that may have a material effect on the overall project. The group will provide a mechanism to ensure consistent decision making, removal of operational roadblocks, overall programme performance oversight and a shared perspective towards the overall design. Key responsibilities include: Ensure that key stakeholders are aware of progress and key decisions on the transformation programme; Define and evaluate the benefits to accrue from the transformation programme to ensure they meet the key strategic priorities; Monitor milestones for transformation programme delivery; Approve / request changes to the transformation programme; and Act as a key decision making authority.
It is vital that the Executive Leadership and Programme Board understand the importance of their roles as change leaders or change sponsors in enabling a successful transformation programme. This is all the more important for those who are new to the role or who have limited transformational leadership capability and experience. It is likely that they will need support through coaching and up-skilling so that they are equipped with the skills and the heard to lead. Refer to B12 Change Leadership and Organisational Capability for further information on assessing and developing change leadership
48
transform*
Making change stick

capability.
B4.3 Agree Structure, Roles & Responsibilities of Design Authority

The Design Authority has responsibility for the coherence and applicability of the technology and business process solutions across the programme. It acts as an advisory body for the Programme Board, Programme Director and Programme Manager. This group is responsible for ensuring that the design of the solution meets the needs and objectives of the organisation and acts as a key quality assurance and control function. The key purpose of a Design Authority is to act as the business integrator who is/are the custodian(s) of the process that will determine the solution that is to be designed, implemented and operated. It ensures that development of the solution is in accordance with agreed business design principles and that a holistic approach is adopted to ensure the integration of the organisation streams of work. Includes the definition of a common vocabulary, a common process and a common understanding of how the transformation design will be delivered. Key responsibilities include: Key liaison point with Technology, Finance, Business Process resources for the programme Overall responsibility for the technology and business process solution architecture across the programme; Advise the Programme Manager and Programme Director in developing the technical and business process design of the programme portfolio based on the strategic plan; Enhance problem solving by proposing alternative high level solutions and their associated implications; Prioritise technology options and solutions in terms of strategic value, using high level financial and benefits assessments; Complete risk analysis and mitigation for technology solutions; Act as a key liaison point with Technology, Finance and Business Process resources for the programme; and Responsible for ensuring that organisation projects meet strategic requirements in selecting and implementing technology and business process solutions.
During later stages of the programme, the Design Authority function can be broadened to encompass assurance of the technology solutions that are implemented as part of the programme. Once the solution has been determined the Design Authority becomes responsible for the governance associated with the agreed solution ensuring that any proposed changes enhancements or deviations do not disrupt the overall efficacy of the solution and/or the defined benefits realisation plan. The Design Authority has the role of designing and ensuring there is a broad understanding of the solution, reviewing and approving all changes and additions and ensuring that the change control process is adequately exercised. By providing principles, standards and reviewing designs against the original plans, the Design Authority should ensure an effective delivery of the solution. The Design Authority may be a singular role but on larger programmes is more likely to be a number of key roles that focus on business architecture, enterprise technologies and operating models and may work with a broader design forum to approve designs. Interpretation of business strategy into actionable activities that are agreed and understood by all is a key function of this role. The proficient use of appropriate tools to document and communicate effectively the Route map for achieving the strategy is as important as managing and governing the design solution. Figure h illustrates an example Design Authority governance structure.
49
transform*
Making change stick

Design Authority Governance Structure

Executive Executive Sponsorship Sponsorship And Chair And Chair Project Project Board Board
Business Business Units Units Programme Programme Director Director Programme Programme Office Office Design Design Authority Authority Design Design Forum Forum
Stakeholders Stakeholders
Partners Partners
Figure h: Example Design Authority Governance Structure
B4.4 Agree Structure, Roles & Responsibilities of Programme Management Office (PMO)
The PMO leads and controls the project, dictates standards and processes and has the authority to resolve disputes across competing initiatives. Typically, the PMO should have full-time individual, some of whom should be deployed onto specific projects as a means of establishing and enforcing the common standards and programme architecture requirements as set out by the PMO. Key responsibilities include: Works with the programme team in developing the design of the solution based on the strategic plan; Co-ordinates the articulation of the Transformation Route map; Prioritises projects in terms of strategic value, using high level financial and benefit assessments of alternatives; Resolves resource conflicts and/or refer issues to the Programme Board; Monitors and reports on the programme timelines; Initiates new projects; Closes down projects where the objectives have either been met or are no longer considered relevant or important; Establishes the benefits realisation and tracking process and ensures effective monitoring, review and reporting for the Programme Director; Ensures priorities are clearly understood by the organisation such that resource is deployed in the most appropriate way; Manages the sourcing and scheduling of resources; Maximises the effectiveness of the change management activities for the programme by developing a strategy and programme of activities to support individuals through the transition; and Identifies and defines risk mitigation approaches and resolves programme level issues.
50
transform*
Making change stick

There should also be a programme support team to support and provide assistance focusing on the more administrative support. This may include a programme co-ordinator, configuration librarian and administrators.

Outputs & Deliverables B4 - i: Programme Governance Arrangements Documentation of the programme governance structures and how they relate to each other. Documentation of the roles and responsibilities of both groups and organisations within the programme governance structures.
B4 - ii: Programme Roles & Responsibilities
Benefits Formal governance is essential to ensure that the programme stays on track and delivers benefits to the organisation. Creating and documenting the structures, roles and responsibilities removes ambiguity about how the programme will be run, helping to ensure that any issues and risks arising during later stages have the procedures and structures in place to be able to resolve them quickly.

Structure a Programme Board and identify the roles and responsibilities required; Structure a Design Authority and identify the roles and responsibilities required; and Structure a PMO and identify the roles and responsibilities required.
51
transform*
Making change stick

B5
Programme Set-up
Purpose To implement the PMO ready for formal project, programme, benefits and change management. The PMO is responsible for providing overall direction and control of the transformation programme. Experience shows that when delivering complex programmes where there are many work-streams involved, a PMO plays a vital part in the delivery and ultimate success of the programme. A PMO structure can be extremely effective in providing an implementation and measurement structure that enhances the capacity and capability of the organisation to achieve sustainable transformation. Large scale transformation programmes will most often succeed if the programme enablers shown in the diagram below are addressed (Figure ).
Top Team Vision and Strength Data Integrity Portfolio / Workstream Management
Communciations and Stakeholder Management
Programme Management
Effective Governance
Benefits Identification Tracking and Realisation Knowledge and Skills Transfer
Key Performance Indicator Dashboard
Figure i: Programme Enablers
The use of robust programme management disciplines can be a reliable vehicle for driving cultural change and business improvement initiatives and ultimately making them stick. Although initially there may be resistance to new systems and processes, a robust programme management approach should empower the business and provide an essential firm foundation for driving business change. Key principles for successful programme management include:
Relationship based programme management involves members of the PMO being allocated to specific service areas within the organisation. This permits deeper understanding between teams and builds strong relationships; Visibility and transparency of the implementation plan, its benefits and requirements are key to obtaining buy-in from all individual. The monitoring of programme progress and identification and management of programme interdependencies is required to ensure the expected benefits are being delivered;
52
transform*
Making change stick

Clear ownership and accountability where the right to positive challenge is encouraged, whether this is downwards or upwards. Clear programme governance should enable effective management of benefits, risks / issues, scope, stakeholders and resources; Keeping things simple, so that effective tools and processes already within the organisation are utilised and not duplicated. This should include the standardisation of high quality reporting throughout providing a uniform level of insightful and robust analysis; and Use of mechanisms for organisations to report good ideas / performance such as web-based initiatives to involve the whole organisation in the transformation and change process. This can enable individuals from across the organisation to be integrated in the programme and enable feedback whereby good ideas or concerns can be captured. Experience shows that through such initiatives, the level of engagement can increase significantly and can create a culture of openness and honesty which are key attributes to effective change management. For this to be successful individual concerns and suggestions must be responded to and expectations managed otherwise disillusionment will set in and support for the programme will decline.
A PMO must also initiate, monitor and co-ordinate other elements, including:

Ensuring that the key initiatives / work-streams have the required resource; Development of Key Performance Indicators (KPIs) to monitor not only savings but other operational indicators so that the organisation can be sure that transformation is not adversely affecting other organisational priorities and in delivering any non-cashable improvements anticipated. Providing assurance over the quality of data used for decision making, change management and monitoring purposes. This will be possible once the financial baseline exercise has been completed; Liaising with finance individuals (where appropriate) to ensure that financial benefits are being achieved and that savings are not double counted. This is particularly difficult when managing a significant transformation programme across a complex organisation; and Working closely with project leads within Business Areas to provide support in the development of high quality implementation plans. The PMO should aim to identify and support any resource / skills requirements for example, training in project planning, or risk assessment methods.
A key element of the set-up of the PMO is to ensure that there is a structured approach to On-Boarding people that will work on the programme with supporting tools and templates. This includes the training of any core skills that are required to complete the role that they will undertake on the programme, for example project reporting techniques or benefit tracking techniques. Interdependencies
Interdependencies B23: Benefits Management Monitoring and reporting against progress for benefits management will need the PMO set-up to support the process. Monitoring and reporting against progress for programme management will need the PMO set-up to support the process.
B24: Programme Management
Inputs
Inputs B4 - i: Programme Governance Arrangements B4 - ii: Programme Roles & Responsibilities The agreed structure of the PMO is documented in this deliverable. The agreed roles and responsibilities of the PMO and individual
53
transform*
Making change stick

Performance Improvement Consulting roles within the PMO will be documented in this deliverable.
Task Description
Tasks B5.1: PMO On-Boarding Creation and use of materials to induct people into the PMO. Setup of the initial PMO. Creation and use of processes and templates for use by the PMO in monitoring and reporting progress on the programme.
B5.2: Implement Monitoring & Reporting
B5.1 PMO On-Boarding

An essential part of setting up the PMO is a structured approach to inducting or On-Boarding team members. The materials created and used in the initial set-up are also used throughout the programme to induct new people onto the programme teams. The creation of a pack of materials for use when inducting people to the PMO should address: Programme / Project Vision and Objectives; Outline of Key Stakeholders; Programme Structure, Roles and Responsibilities; Outline of key programme, benefits and change management processes; Outline of core project skills i.e., Business Process Re-engineering;
Part of the induction process should include team workshops and joint training to ensure that new members are comfortable with the agreed working practices and how the PMO and programme works.
B5.2 Implement Monitoring & Reporting

Establishment of robust progress reporting The development of a clear reporting structure and process is essential the frequency and method should ensure a clear flow of information and transparency of progress between Business Areas and the transformation programme. Figure illustrates an example outline reporting structure / process to monitor and manage progress and benefits delivery across the programme. Typically some form of weekly progress reports based on the weekly progress report proforma can be set up within the PMO processes. This enables frequent visibility of the current weeks activities / successes, the next weeks activities, priorities, risks / issues, a breakdown of progress by work-stream, a summary of communications and stakeholder progress and a summary of key decisions required. It is also common to hold monthly meetings to provide overall progress against plan and provide a financial report summarising expenditure and billing.
Figure j: Example Outline Reporting Structure
54
transform*
Making change stick

Development of Templates and Plans As part of the set-up of the PMO there is a requirement for the development of a suite of templates throughout the various programme phases to effectively monitor and manage progress throughout the programme lifecycle. The development of realistic and appropriate project plans is central to the delivery of the transformation. As the central point of programme coordination, the plans should be submitted to the PMO to ensure consistency and deliverability against overall programme objectives. The PMO should develop a checklist criteria to review against the plans. Examples of the criteria include: Evidence of a robust process behind the development of the plan; Engagement and buy-in from any stakeholders affected; Commercial and financial viability; Clarity and definition of plans; Process and structure for the delivery of plans; Risk assessment and management strategy; and Detailed project / implementation plans.
Financial Performance Cost savings achieved To date (Target vs Actual)
O R G A N IS A T IO N SHA SU M M ARY UPDATE E .g . in d ic a tio n a s to w h e th e r p la n is o n tra c k , s u m m a ry o f th e k e y ris k s g o in g fo rw a rd , to ta l s a v in g s to d a te AUTHO R DATE F IN A N C IA L P E R F O R M A N C E U P D A T E F O R T N IG H T L Y R E P O R T IN G - fro m T u r n a ro u n d P la n C O S T S A V IN G S A C H IE V E D - T o d a te ( '0 0 0 s ) O R G A N IS A T IO N SHA W o r k s tre a m /w o rk O r ig in a l UM p ro g r a m m eStitle M A R Y U P DrA T E ta g e t A c tu a l V a r ia n c e % V a r ia n c e O r ig in a l ta r g e t R e v is e d ta r g e t T O T A L C O S T S A V IN G S - F u ll ye a r ( '0 0 0 s ) AUTHO R DATE V a ria n c e % V a ria n c e 0 .0 % 0 .0 % 0 .0 % A U .0H O R 0T % DA 0 .0 % T E T O T A L C O S T S A V IN G S - F u ll ye a r ( '0 0 0 s )
To monitor and manage the implementation of the plans the PMO should develop a rigorous reporting process. This is typically formalised in the development of a Project / Business area progress report which will capture financial and non-financial performance against the delivery of the plans.
Total cost savings Full year (Original target vs Revised target) Finance information from Departmental financial information system
E .g . in d ic a tio n a s to w h e th e r p la n is o n tra c k , s u m m a ry o f th e k e y -ris k s g o in g fo rw a rd .0to ta l s a v in g s to d a te 0, % F IN A N C IA L P E R F O R M A N C E U P D A T E O R G A N IS A T IO N S F O R T N IG H T L Y R E P O R T IN G - fro m T u r n a ro u n d P la n H A 0 .0 % 0 .0 % 0 .0 % 0 .0 %
TO TAL
S U PD ARY O ST S E N O N -F IN A N C IA L P E R F O R M A N C E U M M A T ECU P D A TA V IN G S A C H IE V E D - T o d a te ( '0 0 0 s ) F O R T N IG H T L Y R E P O R T IN G E .g . in d ic a tio n a s to w h e th e r p la n is o n tra c k , s u m m a ry o f th e k e y ris k s g o in g fo rw a rd , to ta l s a v in g s to d a te M IL E S T O N E S i.e . K e y o r k s tre a(s e/w g u id a n c e nO te fo raa llo c a tio n to R A G w o rk s tre a m g ro u p s b e lo w ) o r ig in l W e v e n ts m e o rk O r ig in a l R e v is e d A c tu a l V a r ia n c e % V a r ia n c e V a ria n c e p ro g r a m m e title ta r g e t ta r g e t ta r g e t F IN A N N o o f P E R F O R M A N C E ta l s aA T E s C IA L T o U P D v in g T o ta l s a v in g s C o m m e n ts r e la tin g to p ro g r e s s a g a in s t m ile s to n e s P la o F O R T N IG rkT L Y a m s O R T IN G s ofro m T u r n a ro u n d a s s n c ia te d (% ) w o H s tre R E P a s - c ia te d ( 'm ) 0 .0 % 0 .0 % 0 .0 % C O S T S A V IN G S A C H IE V E D - T o d a te ( '0 0 0 s ) R E D w o rk s tre a m s -0 .0 % 0 .0 % TO TAL 0 .0 % W o r k s tre a m /w o rk A M B E R w o rk s tre a m s N O N -F IN A N C IA L P E Rp ro Rr a mN C Etitle D A T E FOg MA me UP O r ig in a l ta r g e t A c tu a l 0 .0 % a r ia n c e V T o ta l s a v in g s a s s o c ia te d (% ) % V a r ia n c e O r ig in a l ta r g e t
% V a ria n c e 0 .0 % 0 .0 % 0 .0 % O T A L C O S T S A V IN G S - F u ll ye a r ( '0 0 0 s ) T 0 .0 % 0 .0 % V a ria n c e % V a ria n c e 0 .0 % 0 .0 % 0 .0 % 0 .0 % 0 .0 %
R e v is e d ta r g e t
O v e r a ll p o s itio n
C he c k
F O R T N IG H T L Y R E P O R T IN G G R E E N W o rk s tre a m s 0 .0 % M IL E S T O N E S i.e . K e y e v e n ts (s e e g u id a n c e n o te fo r a llo c a tio n to R A G w o rk s tre a m g ro u p s b e lo w ) 0 0 0 .0 % No of w o rk s tre a m s

CORRECT
TO TAL G E N E R A L C O M M E N T S - O P T IO N A L R E D w o rk s tre a m s
T o ta l s a v in g s a s s o c ia te d ( 'm )
IN C O R R E C T
0 .0 % 0 .0 % 0 .0 % 0 .0 % C o m m e n ts r e la tin g to p ro g r e s s a g a in s t m ile s to n e s 0 .0 %
N O N -F IN A N C IA L P E R F O R M A N C E U P D A T E F O R T N IG H T L Y R E P O R T IN G
0 .0 %
M IL E S T O N E S i.e . K e y e v e n ts (s e e g u id a n c e n o te fo r a llo c a tio n to R A G w o rk s tre a m g ro u p s b e lo w ) A M B E R w o rk s tre a m s 0 .0 % S H A T R A N S IT IO N A L P A T C H T U R N A R O U N D D IR E C T O R C O M M E N T S G R E E N W o rk s tre a m s O v e r a ll p o s itio n

C he c k
No of w o rk s tre a m s 0
T o ta l s a v in g s a s s o c ia te d ( 'm ) 0
CORRECT
T o ta l s a v in g s a 0 .0 %s s o c ia te d (% ) 0 .0 % 0 .0 %
C o m m e n ts r e la tin g to p ro g r e s s a g a in s t m ile s to n e s
R E D w o rk s tre a m s
IN C O R R E C T
Non-Financial Performance Milestone analysis (RAG) Key risks/issues (e.g Resource, Stakeholders, other) Operational level indicators
G E N E R A L C O M M E N T S - O P T IO N A L A M B E R w o rk s tre a m s
0 .0 %
G R E E N W o rk s tre a m s O v e r a ll p o s itio n
C he c S H A T R A N S IT IO N A Lk P A T C H T U R N A R O U N D D IR E C T O R C O M M E N T S
0 .0 % 0 0
CORRECT
0 .0 %
IN C O R R E C T
G E N E R A L C O M M E N T S - O P T IO N A L
S H A T R A N S IT IO N A L P A T C H T U R N A R O U N D D IR E C T O R C O M M E N T S
Figure k: Capturing financial and non-financial programme progress

Outputs & Deliverables B5.1 i: PMO Induction Pack A pack of materials used in the induction (or On-boarding) of people into the programme. A suite of tools used in the ongoing monitoring and reporting of progress within the programme.
B5.2 i: PMO Monitoring and Reporting Tools
Benefits The PMO can support senior stakeholders in maintaining overview and visibility of all work packages and work-streams ensuring that good project management practices and savings are identified and subsequently driven, managed and delivered. The PMO provides:
A rigorous management and reporting process and timely and granular briefing / reporting to Board/Senior Management and other stakeholders. The ongoing support and regular engagement of these and other stakeholders will be a critical success factor to the programme;
55
transform*
Making change stick

Frequent and detailed assessments of progress against work package targets and milestones agreed with individual Business Areas within the organisation. Management of interdependencies between work packages and Business Areas; Identification, monitoring and measurement of programme benefits; Assessment of programme risks against time, quality, cost, impact and probability. Identification and management of risks / issues likely to impact progress and overall financial and non-financial objectives and ensuring appropriate remedial action is taken; and Ongoing facilitation and promotion of programme management best practice with other programmes across the organisation.

Create materials for use in the induction of individuals into a programme management office; Create and use programme monitoring and reporting tools.
56
transform*
Making change stick

B6
Quality Management
Purpose To ensure that quality is appropriately addressed during all stages and phases of the programme. Overview The focus of quality management is to facilitate the programme realisation of benefits that support strategic goals. Central to programme quality management is the need to ensure that the programmes Blueprint and schedule remain aligned to the strategic intent and goals. The Quality Management Strategy therefore articulates the approach the programme will adopt to ensure that quality is prevalent in all aspects of the programme. Whilst the Quality Management Strategy directs how and by whom quality is to be assured, the Quality Management Plan should specifically detail when the quality management activities will be completed and who is responsible for completion. Quality Management consists of the development of standards which will be used to evaluate and monitor the performance of the programme. A Quality Management plan drives accountability, monitoring and measurement, and consistent output from projects which should reduce the cost of supporting multiple unique tools and processes. Quality Management and the Project Office Quality is defined as a measure of class, excellence and referential standards reflecting the defined needs and expectations of the customer. Quality Management determines and implements the organisations quality policy throughout the project life cycle and encompasses Quality Assurance and Quality Control. There are two principal components of project quality:
Project Management - the quality of the project management processes surrounding the creation of the project management-related deliverables; and Project Delivery - the quality of the project delivery processes surrounding the creation of the project deliverables.
These two quality components have both processes and deliverables associated with them as illustrated in Figure . The Project Office may assume responsibility for the quality management of the project management processes (e.g., Issue Management) and the project management-related deliverables (e.g., Issue Log). The Project Office typically does not validate the quality of the project delivery processes (e.g., the appropriateness of the System Development Life Cycle being followed) or the robustness of the project delivery deliverables (e.g., signed-off test plans). The Programme/Project Sponsor or Programme/Project Manager is responsible for ensuring that appropriate quality management disciplines for the processes used to prepare and to accept the substantive project deliverables have been followed. In some circumstances, the scope of the Project Office may be extended to include Quality Assurance over the project delivery processes. Where this occurs, the Project Office must be supplemented with organisations who are specialists in the specific project delivery processes and who will complete these additional tasks.
57
transform*
Making change stick

Figure l: Scope of Quality Management
Scalability of Quality Measures Project management quality processes are scalable and should be tailored to meet the needs of each specific project or programme. The focus of these quality processes includes activities associated with controls, project performance and strategic performance. As shown graphically, from a quality perspective:

Smaller projects may choose to focus quality measures around controls; Larger projects and programmes may include project performance measures; and Strategic initiatives may further add strategic performance measures.
58
transform*
Making change stick

Figure m: Quality Measures and Project Size and Complexity
Interdependencies
Interdependencies B8: Programme Planning During the programme planning task the need to develop both a Quality Management Strategy and Quality Management Plan will have been identified
Inputs
Inputs Programme Brief The programme brief may broadly allude to extant and required quality management systems and processes Other forms of programme information should be considered when assessing the requirement for quality management within the programme
Programme Information
Task Description
Tasks B6.1: Determine the organisations existing quality management processes, roles and responsibilities and systems B6.2: Review existing quality management policies and standards and determine whether additional standards are required Determine existing processes, roles and responsibilities and systems
Review existing processes, roles and responsibilities and systems
59
transform*
Making change stick

B6.1 Determine the organisations existing quality management processes, roles and responsibilities and systems
Some organisations may have Quality Assurance and Quality Control Business Units with responsibilities for internal and/or external formal quality management and some aspects of the projects quality management approach may need to use these processes and systems. In some organisations, the Internal Audit Business Unit may form part of the Quality Assurance and Quality Control functions. Determine whether any of the existing quality management processes, roles, responsibilities and systems are to be included as part of the programme quality management approach. Determine the role of any external third parties in the Quality Assurance and Quality Control roles.
B6.2 Review existing quality management policies and standards and determine whether additional standards are required.
Review existing quality management policies and standards and determine whether additional standards are required by: Reviewing the applicability of the organisations existing quality management policies and standards to the specific project; Assessing the suitability and completeness of the selected standards to the project; Specifying enhancements, additions or project-specific variants to the standards; and Agreeing the responsibility for and resourcing of any required quality standards update activities.
Ensure that the quality management policies and standards relating to both project management and project delivery are addressed. For example, for larger projects, formalised project management procedures should be in place for such items as: Issue management; Risk management; Scope management and change control; Stakeholder management; Resource management; Methodology and standards adherence; Time / task management; and Formalised project status reporting.
The applicability of quality standards may vary from one project to another and be influenced by factors such as the anticipated project outputs and business outcomes, project size, project risk and experience with any technologies that are being implemented. When modified or new standards are required, ensure that this development activity is co-ordinated by the Programme/Project Manager who has direct responsibility for programme/project quality. Once developed, discuss and agree the standards with the representative individual from the affected areas of the project. Where a mature programme and project quality culture exists, a Project Quality Plan is assembled in which the relevant quality standards are referenced and any project-specific standards are described. The objective is to ensure that quality is built-in and assessed at key points in the project. As quality measures are scalable and need to be tailored to meet the needs of each specific project or programme, VCC can be utilised to answer the question What are the appropriate quality measures that should be put in place to meet the specific needs of this project / programme? VCC advocates creating a point of view based upon previous experience and testing with the organisation.
60
transform*
Making change stick


Outputs & Deliverables B6 - i: Quality Management Plan Plan for delivering Quality Management procedures within the programme and projects.
Benefits

Provides early indication as to the importance of imposing a robust quality management regime. Facilitates the development of the Quality Management Strategy and Plan during later stages of the programme. Contributes to the successful delivery of the programme and its benefits by ensuring that both are fit for purpose.
Will demonstrate the strength or weakness of any existing quality management processes, policies, standards and systems and highlight the central role that quality plays in any programme.
61
transform*
Making change stick

B7
Agree Benefits Process
Purpose To gain agreement on the approach to be taken to benefits management and realisation both during the transformation and post-transformation. Overview Programme Success, Business Success and Benefits Realisation: Figure attempts to summarise the differences between a traditional programme management approach and programme success measures compared to the extended approach outlined in this framework which seeks to achieve business success through benefits realisation.
Figure n: Extended approach to Programme and Benefits Management
organisation Benefits realisation breaks down high-level benefits into manageable components (Recognition Events), identifies benefit valuations before implementation (Benefit Valuation) and utilises techniques to ensure that the Recognition Events and benefit valuations are aligned to allow the potential and planned benefits of change initiatives to be obtained. The benefits realisation challenge is ensuring that all of these activities are implemented effectively and are in alignment. An effective benefits realisation approach should: Reduce programme risk - Benefits realisation focuses on ensuring that the full benefits of change initiatives are achieved, which reduces the risk of the programme not delivering on its intended objectives. In addition, pre-implementation, there is a focus on establishing the foundation for realising
62
transform*
Making change stick

benefits by identifying the actual events (Recognition Events) that will be able to be demonstrated by the Programme/Project Sponsor as having actually changed as a result of the programme/project. These events are binary in nature and therefore the achievement of the event is a simple yes or no; Enable close alignment between achievement of specific events either from the programme as a whole or from within individual projects of the programme and the release of cash or the direct improvement of non cash indicators - the approach ensures that each Recognition Event will have a directly attributable cash or non cash value attached to it. This results in the Recognition Events focusing on true benefit realisation; Proactively identify and address obstacles to realising benefits This approach utilises a method termed Backcasting which means that we look back from an achieved benefit realised position to how we achieved that position. In this way potential obstacles can be identified but importantly the solution is also demonstrated. These are addressed early in the post-implementation phase; and Provide a basis for continuous improvement - As a benefits realisation approach measures results, identifies benefits gaps and implements corrective action to address the gaps, it provides a means for continuous improvement of processes.
Interdependencies
Interdependencies B9: Benefits Planning Benefits planning can only be undertaken once agreement can be reached on the approach to benefits management. The approach to benefits realisation will be determined by diagnosis into the change situation and identification of the best fit change approach.
B10: Best Fit Change Approach
Inputs
Inputs B4 - i: Programme Governance Arrangements The programme governance arrangements will need to be taken into consideration when agreeing the benefits management process.
Task Description
Tasks B7.1: Agree Benefits Management & Realisation Approach Gain agreement from key stakeholders on the approach to be taken for benefits management and realisation. Document the approach. Create tools to support the benefits management approach.
B7.2: Create Benefits Management Tools
B7.1 Agree Benefits Management & Realisation Approach

Design a best-fit benefits management and realisation approach including: : The agreed programme governance structure; The timeframe for full benefits to be realised; The observed organisational culture; The capacity of the organisation to deliver the benefits; and
63
transform*
Making change stick

Best practice from other organisations.
B7.2 Create Benefits Management Tools

Design and create the tools and templates required to support the benefits management approach. Examples of such tools include: Recognition Event Log; Value Milestone Plan Template; Backcast Plan Template; and Benefits Monitoring Report Template.

Outputs & Deliverables B7 - i: Benefits Realisation Approach Documented and agreed benefits realisation and management approach and tools.
Benefits Formal agreement of a benefits approach is the first stage in supporting the organisation to change its ways of working. Traditionally many organisations leak benefits when implementing change. Creating a robust approach together with tools and templates to address benefit leakage will create a firm baseline for benefit realisation during operation of the changed organisation.
Create a benefits management and realisation approach that is tailored to a particular organisations culture; and Create benefits management tools and processes ready for deployment in the organisation.
64
transform*
Making change stick

B8
Programme Planning
Purpose To create a programme structure and programme plan that aligns work-streams, projects and opportunities around an agreed timescale to meet the needs of the business to implement the transformational change. Overview In the Assess Stage the programme planning activities focus towards building a high level Route map for the opportunities that are identified during Phase C: Create Transformational Baseline and Phase D: Create Case for Transformational Change. Programme planning involves addressing three key elements during the Assess Stage:
Creating a structure that allows for the ongoing programme management and reporting of projects during later stages of the transformation programme. The structure usually groups projects into a number of work-streams or themes (Figure shows an example structure of programme themes, and work-streams within the themes); Agreement on major release points of delivery from the programme. This activity is iterative and is usually completed alongside the development of a financial model that allows for identification of different cost / benefit scenarios based upon the timing of releases and projects; and Allocation of projects to the programme structure and release points, considering potential timescales for implementation of the project, and timescales for delivery of both one-off and ongoing benefits
Strategic Strategic Asset Asset Management Management Land and Property Assets Procurement Procurement and and Commissioning Commissioning Commissioning & Sourcing Charging Charging and and Trading Trading
Customer Customer
Shared Shared Services Services
Knowledge Knowledge Management Management
Strategic Strategic Partnerships Partnerships
Service Service Specific Specific
Customer Engagement
People Processes
Content Management
Local Partnerships
Direct Services
Economic
Expand Contact Centre
Communications and Marketing
Document Management
Other Capital Assets
Other Sector Partnerships
Logistics
Business Development
Environment
Web Site
Vehicles
ICT Applications
Flexible Working
Community Partnerships
Supplier Management
Income Generation
Social
Admin Support
Portable Technologies
Contract Management
Legal and Regulatory
Financial Processes
Drivers For Change
Figure o: Example Programme Structure
The outline business case and financial model that is built during Phase D requires a documented programme plan that outlines:

Programme Structure; Programme Releases;
65
transform*
Making change stick

Project Groupings; Estimated Project Start and End Dates; Estimated Benefits Milestones; and Estimated Project Implementation Costs over the agreed programme timescales (assuming estimated project implementation costs for each organisation project / opportunity are identified as part of Phase D).
Figure outlines an example high level programme plan.
Figure p: Example High-Level Programme Plan
Interdependencies
Interdependencies D5: Create Outline Business Case The outline business case requires the high level programme plan to be able to model costs and benefits over time.
Inputs
Inputs D2 - i: Scored Opportunity Log The scored opportunities provide the basis of the projects that will be used to create the high level programme plan during the Assess Stage.
66
transform*
Making change stick

Task Description
Tasks B8.1: Programme Planning Workshop High level programme planning workshop used to create programme structure and initial view of releases and project timing. Creation of the documented high level programme plan. Creation of project plans / PIDs for the identified Quick Win projects.
B8.2: High Level Programme Plan Creation B8.3: Quick Win Project Plans
B8.1 Programme Planning Workshop

Run workshops to support the creation of the initial draft view of: The programme structure; Estimated programme releases; Project groupings; Estimated project start and end dates; and Identification of Quick Wins.
Attendees at the workshop should include: Members of the PMO; Members of the Design Authority; Relevant members of the Programme Board with an interest in developing the plan, or who should be invo0lved as part of gaining greater buy-in; Programme Manager / Director; Project Managers; and Other key stakeholders with an interest in project timing or who need to be engaged through early involvement.
Describe each of the opportunities that are identified during Phase D in terms of the following information: A unique reference (to ensure that confusion cannot occur); The opportunity / project name; Business area impacted by the change; Estimated timing of realisation of benefits; Opportunity Log Score; and Further information to be added once each opportunity has been further analysed including e.g. start and end date.
During the first session of the workshop, group the opportunities by similar types, for example all customer focused projects. The basic premise of the groupings should be projects that will be best managed as a group during implementation, due to synergies of design or interdependencies, should be grouped together This allows for cross-cutting synergies within the programme to be managed more efficiently later in the programme. During the second session of the workshop, take each grouping and add the projects to the timeline. This process helps to identify whether projects can be completed in parallel or if they are dependant on each other. Also during the second session, agree - Quick Wins and highlight those projects that could
67
transform*
Making change stick

potentially start to be implemented during the Design Stage of the programme.
B8.2 High Level Programme Plan Creation

Once a draft of the plan has been created during the planning workshop, document the outputs and develop the financial model to be used in the analysis of scenarios. The analysis of the programme plan with the financial model should consider the following questions: How do various phases and releases impact the financial case of the programme? What does the investment curve look like? Do projects and releases need to be smoothed over a longer period to ease the required investment? Can benefits be realised earlier with greater upfront investment?
Use the answers to these questions to inform discussion with key stakeholders regarding the shape of the programme and the required levels of benefits release and upfront investment. This iterative process of discussion should result in the creation of a high level programme plan that is acceptable for inclusion in the outline business case.
B8.3 Quick Win Project Plans

For each of the projects that have been identified as potential Quick-Wins during the programme planning workshop, prepare a PID so that the project can be commenced during the Design Stage. An outline of the activities for planning includes: Confirming the project parameters that should have been defined during programme set-up; Developing the project governance approach; Defining the project controls; Agreeing quality and acceptance criteria for deliverables; Producing an agreed risk log; Developing the work breakdown structure; and Developing preliminary estimates and schedules.

Outputs & Deliverables B8 - i: Programme Plan B8 - ii: Quick win Project Plans High level programme plan for use in the Outline Business Case. Project Initiation Documents and plans for each of the approved Quick Win projects that will be implemented during the Design Stage. High level risk / issue log and management process
B8-iii: Risk / Issues Management
Benefits Approval of the Case for Change requires agreement and buy-in that the programme of activities is achievable in the timescales and will deliver the benefits that the business requires. The approach to stakeholder involvement in the planning of the programme builds the buy-in to the change at an early stage in the planning process.
68
transform*
Making change stick

Investing in project and programme management should deliver a number of benefits to the organisation:
Certainty of delivery if the organisation is working to aggressive fixed delivery dates and stakeholders need to be assured that the project will be delivered on time; Benefits delivery there is an increased focus on benefits delivery and future projects will have an increased emphasis in this area; Speed to delivery better and faster decision making, on boarding and time to realisation of benefits for complex, challenging change agenda items; Less fire fighting more forward planning across the organisation will be necessary to minimise the reactive nature that can be evident in organisations; Greater capacity and capability optimising the capability and capacity available will become more important as complexity increases and the need to deliver on a reduced budget; Cost effective projects reducing the timescales and costs and managing resources more effectively; Enhanced skills ongoing competency development and knowledge, transfer of skills and methods will become more important to ensure the organisation is equipped to realise the benefits when we have gone; Reduced risk - management and containment of risk through disciplined process and performance controls will be increased; and Building reputation and confidence.

Facilitate a programme planning workshop; Build a high level programme plan; and Project planning techniques.
69
transform*
Making change stick

B9
Benefits Planning
Purpose To identify events that are able to demonstrate that benefits have actually been achieved due to the programme and organisation projects being undertaken. Overview This task describes the steps necessary to plan the benefits management activities for the change initiative including enabling and monitoring the business outcomes and the preparation / reporting of the benefits measures. Central to this method is a focus on:

Benefits not solutions; Cash flow and specific timing of benefits; Assign responsibility and accountability for benefit delivery; and Managing overall achievement through the PMO.
Figure shows our overall approach to benefits realisation and Figure shows the benefits realisation tools that we have available Figure
Use of the Benefits Realisation Methodology Much of the content in this task refer to a Benefit Realisation Methodology developed by Isochron Ltd. Isochron is an alliance partner of PwC UK, and therefore, if use of the diagrams and terminology is required in other PwC territories separate licensing arrangements need to be obtained. Other PwC territories could alternatively use other benefits realisation methodologies / techniques.
q: Benefits Realisation Tools
70
transform*
Making change stick

Figure r: Benefits Realisation Approach
Interdependencies
Interdependencies D5: Create Outline Business Case The Outline Business Case relies upon the benefits case developed through the benefits planning activities. The Transformation Vision is required to support the identification of Recognition Events.
B10: Transformation Vision
Inputs
Inputs Organisational Value Drivers Value Drivers are the factors that drive costs, revenue and asset value in an organisation. These are required during the development of savings milestones.
Task Description
Tasks B9.1: Confirm Vision of the Programme / Projects Ensure the programme is tangible and owned and managed by the people who need to deliver it. Identify and document the tangible outcomes desired by the
B9.2: Describe Recognition Events (Tangible Outcomes)
71
transform*
Making change stick

Performance Improvement Consulting business.
B9.3: Transfiguration (Invite Challenge)
Support the sceptics within the organisation to see the possibilities of the change. Create a plan that builds from the future to the present day. Identification and planning of when savings will be released into the organisation. Communicate the benefits. Use the milestones to agree responsibility for delivery. Track against delivery of benefits changing how you get there but not the desired benefit. Training for managers in the methods and techniques. Coaching to support the embedding of the benefits into the organisation.
B9.4: Backcast Planning B9.5: Focus on Value Flashpoints (Saving Milestones)
B9.6: Communication aligned to the chosen change approach B9.7: Ensure clear responsibility for delivery B9.8: Tracking - Change the plan not the outcome
B9.9: Training for managers to ensure sustainability B9.10: Coaching to ensure the changes stick and realise the benefits
B9.1 Confirm Vision of the Programme/Projects

Most organisations have already developed the strategy of what they want to deliver. The challenge is to ensure that the current programme is tangible owned and managed by the people who need to deliver it. We should assist by ensuring that the relevant programme area has a specific and localised vision linked to this overall strategy.
B9.2 Describe Recognition Events (Tangible Outcomes)

Based on the vision, the next step is to agree and isolate some tangible outcomes which will define when expectations have been met: what people will see happening differently and when that will occur. It is important that these outcomes are capable of being verified in a straightforward way and that the organisation owns and develops the detail. The outcomes should then be used to motivate people so that senior management feel they are clearly tasked with delivering them and have authority and resources to do so. To undertake this we should: Hold organisation sessions with the sponsor(s) (usually the CEO, COO, FD, Director, Head of Business Unit and/or Stakeholders) to help them articulate their post-success ambitions and translate them into a table of Recognition Events related to the organisations objectives. These should be signed off by the key sponsor. There should be a maximum of 50 Recognition Events and normally about 30. These events should be binary and allow for objective viewpoint as to their achievement so where possible have a target included in the event. Document the events on a Recognition Event table.
B9.3 Transfiguration (Invite Challenge)

If senior management see problems with proposed changes we should hold workshops to listen to issues and see how obstacles or objections could be removed. The aim will be to suspend scepticism and disbelief by inviting people to say what their concerns are and to show that we are listening to them and taking them seriously without challenge. They are then involved in a process that transforms the discussion from a negative to potential positives, exploring what the benefits would be if constraints could be removed. For example, at present there may be scepticism in the Business Areas that corporate service functions could deliver reliable information tailored to operational requirements. What would be needed to turn this around? How detailed would a Service Level Agreement have to be? What communication would there need to be and what safeguards, for example shadow running, is needed to
72
transform*
Making change stick

mitigate concerns? These workshops should only have organisations of the same level. Complete the transfiguration template to undertake this task.
B9.4 Backcast Planning

The question What did we get right? creates a Backcast Plan, an approach to planning that starts by assuming a future state in which the tangible Outcomes have been achieved and identifies how, they have been brought about. For example, I imagine myself having achieved the outcomes such as setting up a new customer service model and channel management strategy. What are the key things we did to get there? This Backcast Plan should be overlaid against a traditional Forecast Plan. This overlay will identify tasks or milestones on the forecast plan that do not lead to any benefit. These tasks or milestones should be removed thereby reducing uncertainty of scope and reduce costs to a minimum. The technique also tends to resolve issues that are blocking progress in forecast plans.
B9.5 Focus on Value Flashpoints (Saving Milestones)

The definition of saving milestones is what begins to make the plan meaningful and actionable. Saving milestones should be points at which the cash flow of the organisation will first clearly respond to an implemented change. For example, once the organisation has confidence in its management reporting it would be able to release the shadow running team and reduce net headcount, delivering savings of X people and Ym expenditure. We should hold workshops with the key sponsor and Finance to identify the organisations Value Drivers and to link the top level financial imperatives, key performance indicators and critical success factors to produce a first cut of saving milestones. Value Drivers are the factors that drive costs, revenue and asset value in an organisation. Example of Value drivers is documented in B BT 0004 and possible calculations at B BT 0005. This will assist in the identification of savings milestones and estimate them in a way that will factor in risk and remove any double counting. We will match these value drivers directly to the tangible outcomes so that we can see the impact of the tangible outcomes on the business drivers. These impacts should be documented on the Value Flashpoint table template. The process should include: Undertaking a financial baseline review to identify the actual current underlying cost for each affected function and to understand the key cost pressures within the budget and relationship with activities; Help senior management and Finance to build a table of saving milestones for the programme and to estimate and extend their values using the Monte Carlo Box technique. These should be input onto the value flashpoint table template; Devise operational KPIs. There is often a lead time on the realisation of savings and hence the monitoring of progress against operational KPIs will mitigate risk. Linking to non-financial KPIs will evidence improvements in service and conversely ensure no deterioration in service. In public sector assignments there are often saving milestones which have no financial benefit but are done purely to improve overall customer service or statutory obligation; Work with the organisations finance teams to link management accounts to the progress against the implementation plan to ensure that real financial benefits are achieved; Help senior management and Finance individuals to build a Value Case for the changes; and Show senior management and Finance how to build the savings milestone to the Tangible outcomes Linkage table.
Achievement of results is managed by holding people accountable for the R.E.s and linking them to these milestones. The link between R.E.s and these milestones allows the organisation to connect hard financial achievements with changes in hearts, minds and the business. It enables the organisation to track and monitor achievement of the R.E.s and the V.F.s and benefits.
73
transform*
Making change stick

B9.6 Communication aligned to the chosen change approach

We help the organisations communications unit during the period of an engagement to construct a communication programme. Saving milestones or performance improvement indicators are readily used as a script for communications that describe intended changes in a personal way to large numbers of people engaged in business-as-usual. These saving milestones and performance indicators can be used as the source material for a selection or all of: Strategy / Vision document; Video; Word pictures; Briefing notes; Posters; and/or Newsletters. Our experience is that these communications change the expectations of the business-as-usual. As a result, the energy of business-as-usual starts to be harnessed towards the change.
B9.7 Ensure clear responsibility for delivery

This is the stage at which the plan can be presented in a linear and forward-looking way with individual responsibilities assigned. We suggest that the outcome and milestones are not negotiable. Instead, the means by which they are achieved can be negotiated. The responsibility for achieving the outcome and ensuring it does not adversely impact other areas remains with the person assigned responsibility and they are offered supporting authority to do so. It is important to ensure that responsibility for actions is defined at a junior enough level to be specific but also at a senior enough level for there to be some scale in the group of responsibilities, so that trade-offs can be managed by the responsible team As the programme progresses the monitoring team should use the plan as a tool to carry out continuous checks to assess whether milestones are on track to be achieved. The Finance team should track financial improvements to demonstrate real financial impacts and the relevant area should track any non financial improvements.
B9.8 Tracking - Change the plan not the outcome

Under our approach the outcomes - Recognition Events - are not negotiable. The means to make them happen are. As the programme progresses the methods have continuous checks to see that the Recognition Events are going to be achieved with the current plans. Where they are not, it is the plan and not the outcome (scope, time, quality) that is changed.
B9.9 Training for managers to ensure sustainability

Hold workshop(s) with managers to introduce the methods. The workshop will include discussion of the potential for them to use the new techniques themselves to add to their capabilities of achieving personal targets. After this workshop their personal targets will be expected to include the delivery of the Recognition Events agreed with the sponsor(s). Agree and carry out a training programme of half- and one-day modules to train the managers in use of some of the methods, including Backcast Planning. Initiate a support process to enable the managers to obtain coaching interventions, when needed, to help manage the benefits realisation process.
B9.10

Coaching to ensure the changes stick and realise the benefits

Run training programmes to train the programme managers in use of these methods; Hold workshop(s) with senior management to introduce the methods. We recommend that organisation targets are then validated to include the delivery of the Recognition Events agreed with the sponsor(s). We typically support organisations to translate these into quantifiable financial measures; Establish a support process to enable senior management to obtain coaching from benefit management experts when needed, to help manage the benefits realisation process; Coach and support senior management in checking that they are on course to achieve the
In addition to support the benefits realisation approaches we typically:
74
transform*
Making change stick

savings milestones and walk the floor to continue to maintain pressure for sustainability of the changes achieved and set new milestones for the same ultimate outcome if necessary; Coach and support finance staff in checking that the value streams initiated at the Saving Milestones are maintained through to the end of the investment return period; and Coach and support organisations to maintain this service until the new approach becomes business as usual, i.e., until both the changes and the way of managing change has become habitual.

Outputs & Deliverables B9 - i: Agreed Benefits Milestones Spreadsheet with documented Recognition referenced with Value Flashpoint Spreadsheet. Documentation of Backcast Plan. Benefits case documentation incorporating the Backcast Plan and benefits milestones to provide and overall benefits valuation for the programme. Events, cross
B9 - ii: Backcast Plan B9 - iii: Benefit Valuation
Benefits The benefits of clear planning of benefits realisation are:

It supports an organisational shift to focus on benefits not solutions; It supports the organisation to understand the impact of the change on Cash flow and the specific timing of benefits; and Through the assignment of responsibility and accountability for benefit delivery a culture of benefit realisation can be achieved.

Run Recognition Event workshops and facilitated meetings; Identify Value Flashpoints and link them to the Value Drivers of the organisation; Use the Monty Carlo Box technique to quantify Benefits; Create a Backcast Plan; Use the Backcast plan to challenge and develop the forecast planning process; and Develop a Benefits case.
75
transform*
Making change stick

B10 Best Fit Change Approach

Purpose To diagnose the most appropriate approach for delivering the transformation, by identifying the appropriate balance of directive and inclusive change management activities required to deliver sustainable benefits. Overview The best fit change approach describes how benefits, involvement and sustainability issues should be addressed based on a clear understanding of the complexity of the transformation, the predictability of the proposed solution, the urgency of the transformation and the prevailing culture and leadership style. Identifying the best fit change approach is a two step process: Step 1: Diagnosis of the change situation Step 2: Propose change approach
Interdependencies
Interdependencies A: Determine Business Needs & Benefits To determined the context for the change, that is, the business drivers and urgency.
Inputs
Inputs Change Readiness Assessment Provides data on organisations capability for change and change management strengths and risks Provides data on current ways of working, and behaviours that would support or hinder the transformation Provides data on levels of employee engagement and commitment
Culture Analysis and Surveys
Employee Engagement Surveys
Task Description
Tasks B10.1: Diagnose Change Situation Analyse context, complexity, consequence of the transformation and, organisational culture and capability through change readiness and cultural assessments Identify best fit change approach in terms of change principles, and design and implementation approach required to deliver sustainable benefits
B10.2: Propose Change Approach
76
transform*
Making change stick

B10.1
Diagnose Change Situation
Whilst not a precise science, the information required to make informed decisions about the best fit change approach can be gained through an enquiry into 5 key areas: 1. 2. 3. 4. 5. Context Complexity Consequence Culture Capability
Context: explores the nature and driving forces behind the transformation. A thorough enquiry into the purpose behind the change is required. Also critical is the urgency of the change. Complexity: examines the complexity of the problem and predictability of the solutions. In some change efforts the perception of the problem and its possible solution are shared by all, in others there is no consensus on either. Also key here is the complexity of the organisational structure and its possible impact on successful change implementation. Finally, time and space constraints need to be understood. Consequence: reviews the likely levels of resistance to the proposed changes, on a role by role and unity by unit basis. This includes a review of potential areas of resistance and also the organisational politics especially amongst the leadership of the organisation. Also of importance here is the inherent consequences to the individual and the organisation of either complying (or not complying) with the proposed changes. Finally it is important to consider the extent to which the delivery of the benefits of the programme is dependent on any particular change approach. Culture: looks at norms of behaviour in the organisation, including a review of how change has/has not been implemented successfully in the past. Are people focused on detail or the big picture? Do people focus more on the task or on the people? Are people structured and organised or do they find plans a constraint? Also key here is assessment of national cultural differences should the change effort be on a global scale. Capability: seeks to understand the capabilities (current and required) to both implement the change and operate sustainably in the new environment. The key focus here is particularly on the skills and capabilities of the organisational leadership. It is also important to look at available client resources and understand other change efforts currently underway in the organisation. The level of commitment of both leaders and front-line staff should also be explored. A simple high level diagnosis as a starter to identifying whether a directive and inclusive approach may be appropriate is outlined in the figure below. It is important to bear in mind however that in reality, a combination and appropriate balance between the two (directive and inclusive) may be the most suitable approach. More often than not, in transformational change, an inclusive approach (or combination of the two) is likely to be more appropriate.
77
transform*
Making change stick

Has the problem been fully and clearly analysed and understood?
Yes
No
Challenge the definition of the problem again Yes
No
Is the problem complex? Complexity increases across BUs, geographies, processes, systems, and where impact on multiple audiences is high
Is the solution predictable?
Predictability reduces where behaviours need to change, there are external dependencies, or where the problem is new or challenges the culture No No
Is the solution predictable?
Yes
Yes
Take a directive approach
Take an inclusive approach
Is organisation highly centralised?
Is the change urgent?
Yes
Yes
No
No
No Do leaders have change skills & commitment Yes
Build skills & commitment
Directive standardised approach
Directive localised approach
Inclusive enquiring approach
Inclusive pre-planned approach
Figure s: Diagnosing the best fit change approach
Information gathering approaches to diagnosing the change situation normally include leadership interviews, focus groups, questionnaires, desk study review and observation A combination is normally best and the determining factor here is almost without exception available time and resource. A deep-dive analysis will use all methods of information gathering, providing both qualitative and quantitative data, and may take several weeks to complete. A more high level analysis may be carried out in a single meeting with the leadership of the change programme Information gathering tools normally include: 1. Change Readiness Assessment
78
transform*
Making change stick

2. Culture Analysis 3. Employee Engagement Survey Change Readiness Assessment A change readiness assessment is undertaken to identify the organisations capability to change and the change management hot spots or risks that will inform the change strategy/plan. It should be noted that the act of carrying out a change readiness assessment in itself is an engagement activity, as it entails consultation and involvement of key stakeholders and members of the front-line The assessment usually involves a combination of a survey and focus group workshops with the following objectives: To understand how well the organisation has delivered change programmes in the past To understand current level of confidence in delivering future change To understand the gap between current capability and that required going forward To define and agree the change management actions to close the gap
There are various change readiness assessment tools on Gateway. A sample output of the Making change stick Change Readiness Assessment Tool can be seen in figure t below.
Sample Making change stick Change Readiness Assessment Tool
1 Design the best fit change approach

5.00
10 Make sure systems, processes and culture reinforce change
4.00
2 Keep business benefits at the heart of change
3.00
9 Give leaders the skills - and the heart - to lead
2.00
3 Challenge the data and its interpretation
1.00
0.00
8 Communicate with a purpose
4 Agree the measures of success and how to monitor them
7 Engage the front line before, during and after 6 Through involvement build a vision and hunger for success
5 Focus on the actions that make a difference fast

Existing Capability Required Capability
Figure t: MCS Change Readiness Assessment Tool
1. Culture Analysis A culture analysis should be undertaken to identify the change approach that would most fit with the organisations norms and ways of working. This analysis could involve a combination of a culture survey, interviews and focus groups targeted at defining the current culture, the current behaviours that would
79
transform*
Making change stick

support and hamper the transformation, their root causes and initial recommendations for changes. This activity is also a requisite for developing the new organisational culture in later Stages through implementation of a competency framework with behaviours that are reflective of the transformed organisations the vision and values. Experienced culture change practitioners should be called on or consulted when undertaking this analysis. 2. Employee Engagement Surveys The majority of client organisations have employee engagement or people surveys that can be analysed as part of the desk top research in diagnosing the change situation. In the absence of the clients own survey, the consulting organisation could undertake an analysis using its own survey. The purpose of the employee engagement survey at this stage would be to identify potential engagement and commitment risks, and can be useful in providing insights into the root causes and what actions might need to be taken as part of the transformation effort in order to maximise levels of engagement.
B10.2
Propose Change Approach
Once the diagnosis into the change situation has been undertaken, the next step is to identify the best fit change approach. The information gathered in the diagnosis will inform decisions about 8 key areas or dichotomies. These 8 dichotomies are outlined in figure u below, and decisions should be made on these dichotomies in determining the Change Principles, Design Approach and Implementation Approach.
Dichotomy 1: Inclusive or directive change Dichotomy 2: Focus on whats wrong or whats right Change Dichotomy 3: Focus on capability or short term results principles Design approach Implementation approach Dichotomy 4: Resource the change from the business or with consu ltants Dichotomy 5: Large group or small group interventions Dichotomy 6: Whole company or unit-by-unit Dichotomy 7: Big-bang or phased Dichotomy 8: Parallel running or clean cut-over
Figure u: Change Approach
Change Principles The change principles permeate all aspects of the change approach and address how the change should be designed and implemented. Dichotomy 1: Should the change be directive or inclusive? When change is predominantly directive, the benefits and requirements of the change are defined from above (i.e. top down), involving only a selection of people for a narrow, contained scope. These changes are typically urgent, the solution is often known, and compliance of staff is required more than commitment. For inclusive change, the assumption is those who will be impacted by the change know best how to shape its purpose, direction and implementation approach (i.e. bottom up). In transformational change, an inclusive approach tends to be more appropriate than directive approach. Dichotomy 2: Should the change follow an approach that focuses on whats wrong within the organisation (an how to fix it), or an approach that searches for whats right in the organisation (and promotes examples of best practice and attempts to replicate these)? Focusing on Whats wrong fits a problem-solving culture where the client has a clearly defined problem. Focusing on Whats right suits organisations with a history of strong resistance to change that are looking to develop organisational capability. The most well know change method for Whats right is known as Appreciative Inquiry (AI). Refer to Making change stick Starter Pack for details on AI.
80
transform*
Making change stick

Dichotomy 3: Should the change programme focus on long-term or short-term economic gain? Clarifying the propose of the change programme should answer this question. A long-term approach focuses on building organisational capability through training, development, leadership and communications. This typically suits change programmes that are complex, involving culture change, as is usually the case in transformational change. A short-term approach requires immediate financial results and is more suited to change with a narrow scope and high urgency.
Design Approach Dichotomy 4: Should the change programme be resourced predominantly from the business or use consultants? A focus on using business resources is often applicable when there are budgetary constraints, organisations are overly political, where significant culture change is required or where sustainable change is a major goal. Consultants make up the main delivery resource when the organisation lacks resources or the capability to deliver the change. Dichotomy 5: Should the approach be standardised across the whole organisation, or allow localised approaches to meet the goals of the project? Standardised approaches tend to be most applicable in centralised organisations or where the release of benefits depend upon everyone using the same approach. In this case, solutions are generated centrally and implemented locally using local change agents as the conduit to the central team. A more localised approach is often more applicable in federated or de-centralised organisations with a small central project team. Local change agents own required outcomes and use their own initiative and approaches to deliver the change.
Implementation Approach Dichotomy 6: Whole company or unit by unit? Whole company means implementing all or part of the change with the entire enterprise simultaneously, should the release of benefits demand and the organisation be ready. Unit by unit is characterised by starting the change in an often (peripheral) business unit that are motivated to implement the change. This can be an applicable approach if the culture supports evidence based benefits where demonstrated successes can be leveraged to other business units. Dichotomy 7: Big-bang or phased? Big-bang refers to implementing all functionalities and changes in one continuous effort. This is typically useful for simple changes or where benefit release demands it. A phased approach implements only parts of the functionality at a time, and is typically applicable when clients are facing resource constraints or where complex changes are requiring specialist training associated with each element of the change. Dichotomy 8: Parallel running or clean cut over? Parallel running refers to allowing the new ways of working to run alongside the old ways of working to avoid a short-term performance drop, until teething problems are eliminated and the new approach is reliable and effective. Clean cut-over refers to removing the old ways of working from the moment the new ones are implemented. This is often suitable for simple changes or where new ways of working have been subjected to significant testing before going live.

Outputs & Deliverables Change strategy Document outlining the principles for how the transformation should be designed and implemented, and the strategy and change management activities for addressing benefits, involvement and sustainability. Document detailing the organisations readiness and capability for change, including change management strengths and risks. Document detailing current behaviours that would support and hinder the transformation
Change Readiness Report
Culture Analysis Results
81
transform*
Making change stick

Benefits
The most suitable approach to designing and delivering the transformation is identified specific to the organisations needs, to enable a smooth transformation and sustainability.

Complete a change readiness assessment Identify the best fit change approach
82
transform*
Making change stick

B11 Transformation Vision

Purpose To develop a Transformation Vision that effectively engages stakeholders throughout the major change initiative. Overview A Transformation Vision is a compelling statement or visual which describes why the change initiative is being undertaken and what the desired future benefits will be. It provides an overarching story that can be communicated throughout the change lifecycle. More importantly, it creates a shared understanding of what success looks like, and when created through involvement, generates enthusiasm for the change amongst those that will make the change happen and/or those who will be impacted by the change. The steps in this task are used to develop a Transformation Vision. The vision is reviewed periodically to ensure ongoing relevance and, where necessary, updated to reflect any changes in the overall vision that may have occurred. This task in not intended to be used to develop a vision for an organisation, as one should exist already. The Transformation Vision relates specifically to the transformation initiative but should make explicit the link between the initiative and the organisations mission, vision and strategy. Interdependencies
Interdependencies A: Determine Business Needs & Benefits To create the Transformation Vision an understanding of the business needs and benefits is required. An analysis of the organisations culture and history in involving stakeholders in creating change visions will inform the best way forward in creating the transformation vision. The creation of a case for transformation change that is agreed to by the organisation is largely predicated by the leaderships support to the activities that need to be undertaken during Phase D. Alignment of the Leaders to a Vision for transformation is an essential step in gaining the support.
B10 Best Fit Change Approach
D: Create Case for Transformational Change
Inputs
Inputs A2 - i: Updated Transformation Principles (with Customer Insight) B11 - i: Transformation Vision Document The principles of Transformation will inform the Vision creation process. The Vision document is a key tools used in communicating the Vision. The existing organisational vision should be referenced in the Transformation Vision. Existing business plans are useful sources of information when understanding the current business issues that may affect the Vision.
Organisation Vision
Business Plans
83
transform*
Making change stick

Task Description
Tasks B11.1: Assess the level of effort required to create a compelling vision B11.2: Create the vision Understand the scale of the task.
Develop the Vision using the right team. Align key stakeholders to the vision
B11.3 Align leaders to the vision
B11.1
Assess the level of effort required to create a compelling vision
Collate and review the organisations mission / vision and Business Case for change. Determine what additional work needs to be done to translate the organisations mission / vision alongside the Business Case for change into an overarching story that can be communicated to support the change. Inputs to this may include: Nature and scale of the change being undertaken (e.g., transitional or transformational); Change readiness assessment findings ; Employee surveys, interviews and focus group findings ; Change history assessment findings; Reviews of communications effectiveness; and Assessments of change leadership capability.
B11.2
Create the vision
Build a vision and hunger for success by involving the organisation in creating and communicating the Transformation Vision. Determine who from the organisation needs to be involved in the creation of the vision. A number of factors may influence this decision including: The culture of the organisation; The scale and scope of the change that is being undertaken; The past history of project successes and failures; and The current capability of change leadership. The organisational structure and its political network Those who will have accountability and responsibility in sanctioning, delivering or driving the vision (e.g. Project Sponsor, Senior Management).
It is vital that senior management and key internal and external stakeholders support the Transformation Vision and can clearly articulate its contents across the organisation and to relevant parties outside of the organisation. The vision must therefore be an integral part of the Communications Strategy, in developing the organisations awareness and understanding what the future looks like, how it will get there, and their role in making the vision a reality. There are various visioning techniques and interventions that can be used in creating a vision, including Future Search, Appreciative Inquiry and the Rich Picture Technique. Guidelines for these techniques can be found in the Making change stick Starter Pack.
B11.3
Align leaders to vision
The purpose of this task is to align senior management to the Transformation Vision and gain their support and commitment to the programme of work. It should be noted however that the first step to engaging and aligning the leadership team begins with their involvement in defining and creating the Transformation Vision. In doing so it is possible to
84
transform*
Making change stick

uncover, surface and begin to tackle areas of conflict and misalignment amongst the leaders in relation to the vision. This may be followed up by further leadership alignment workshops that are targeted at providing leaders with:

Clarity around the envisioned benefits and quick wins; An understanding of their role as transformational leaders, that is, how they are expected to behave as leaders and role models of the transformation; and the challenge this will mean for them personally; An understanding of what kinds of reactions to expect from people as they go through major change; and the need to sustain themselves and others through to the vision being realised; and Clarity around the programme/project plan and who is accountable and responsible for delivering the transformation. It is essential that this workshop is designed and delivered in conjunction with organisations who have significant experience in this type of work. Consult specialists in governance, organisation development and change management as part of the workshop planning. The workshop may be supported by on-going change leadership coaching and formal classroom training via the Change Academy in subsequent Stages of the transformation, and once an assessment of the Change Leadership & Organisational Capability has bee undertaken. One of the key modules within the Change Academy is Leadership Alignment and is aimed at equipping change leaders with the know-how and skills for how to lead and align their own stakeholders.

Outputs & Deliverables B11 - i: Transformation Vision Document Document that can be used to communicate the Vision to the wider organisation.
Benefits
A compelling vision is required to develop buy-in and momentum within the organisation for the change. A Vision that people will believe in and can perceive will deliver personal benefit will create good will towards the change and make the transition to the changed organisation easier. The transformation programme will have a much greater chance of success in delivering beneficial change to the organisation if the leadership is aligned from an early point.

Create a compelling vision for transformation that can be used as a communication tool. Identify barriers to change from the leadership; and Gain consensus with the senior management team.
85
transform*
Making change stick

86
transform*
Making change stick

B12 Change Leadership and Organisational Capability

Purpose To assess the organisations capability to achieve the proposed benefits of the transformation initiative. Overview Various interventions can be deployed to assess an organisations capabilities for transformational change. These include change readiness assessment (that would have been conducted in diagnosing the best fit change approach) change leadership assessments and diagnostics, leadership self assessments, 360 feedback questionnaires, one-to-one interviews with a representative sample of key stakeholders; small and large group interventions; and psychometric questionnaires. These interventions are used to:
Raise the overall "consciousness" of an organisation with regard to change, the change process and its likely impacts; Determine the current capability of the senior management team, both as organisations and as a team, to transform the organisation. below describes the leadership qualities required for effective organisational transformation; Assess the future and current organisational culture, structure, systems and processes to realise the benefits of the transformation, and; Surface hidden agendas and key resistance issues that may prove troublesome if not discovered.
As with the topic of Leadership Alignment, it is strongly recommended that experts in the area of leadership and organisation development are used to complete this task.
Qualities of Transformational Leaders Learning and Developing Others Showing genuine concern - Genuine interest in staff as individuals; values their contributions; develops their strengths; coaches, mentors; has positive expectations of what they can achieve; helps eliminate the barriers Empowering - Trusts staff to take decisions/initiatives on important matters; delegates effectively; develops their potential; maintains a supportive interest. Being Accessible - Approachable and not status-conscious; prefers faceto-face communication; accessible and keeps in-touch. Encouraging Change - Encourages questioning traditional approaches to the job; encourages new approaches / solutions to problems; encourages strategic thinking. Being Honest and Consistent - Honest and consistent in behaviour; more concerned with the good of the organisation than personal ambition. Acting with Integrity - Open to criticism and disagreement; consults and involves others in decision-making; regards values as integral to the organisation. Being Decisive - Decisive when required; prepared to take difficult decisions and risks when appropriate. Inspiring Others - Exceptional communicator; inspires others to join them; infectious enthusiasm
Personal Qualities
87
transform*
Making change stick

Qualities of Transformational Leaders Resolving Complex Problems - Capacity to deal with a wide range of complex issues; creative in problem-solving. Networking and Achieving - Inspiring communication of the vision of the organisation / service to a wide network of internal and external stakeholders; gains the confidence and support of various groups through sensitivity to needs, and by achieving organisational goals. Focussing Effort - Clarifies objectives and boundaries; team-orientated to problem-solving and decision-making and to identifying values. Building Shared Vision - Has a clear vision and strategic direction, in which s/he engages various internal and external stakeholders in developing; draws others together in achieving the vision. Supporting a Developmental Culture - Supportive when mistakes are made; encourages critical feedback of him / herself and the service provided. Facilitating Change Sensitively - Sensitivity to the impact of change on different parts of the organisation; maintains a balance between change and stability.
Leading the Organisation
Figure v: Qualities of Transformational Leaders
Interdependencies
Interdependencies B13: Transformation Capability Route-map The Transformation Capability Route-map assessment of the leadership capability. relies upon the
The diagnosis of the change situation through the change readiness assessment will provide supporting information on the organisations capability for change.
Inputs
Inputs B4 - ii: Programme Roles & Responsibilities Provides an understanding of the roles and responsibilities that the leaders of the organisation will take in the programme. Identify the need for leaders with particular skills and that there will be an assessment of how the current leaders match up to the roles in the transformed organisation
Plan leadership capability assessment
Task Description
Tasks B12.1: Preparing for the Change Leadership and Organisational Capability Assessment B12.2: Conducting small and large group interventions Prepare for the workshops and meetings. Also for the assessment of leaders and the implications of findings Conduct the workshops and meetings.
88
transform*
Making change stick

Performance Improvement Consulting Evaluate the outcomes of the meetings and agree actions.
B12.3: Evaluate and summarise the organisation's capability for transformation B12.4 Evaluate and summarise the leaders capability to lead transformation
Evaluate the outcomes and plan the actions to remedy
B12.1
Preparing for the Change Leadership and Organisational Capability Assessment
Prepare for the leadership and organisational capability assessment by:
Determining the timing and approach. Leadership and organisational capability may be addressed within a wider change readiness assessment. Based on the project's specific needs and constraints, questionnaires and either workshops or structured interviews can render valuable information. Change leadership diagnostics, leadership self assessments and leadership 360 feedback questionnaires are generally conducted at the beginning of a project to provide a baseline against which progress can be measured through subsequent assessment at various times during the project. Similarly, workshops and/or interviews can be conducted at several points during a project. The choice of method of assessment will be informed by considerations such as timescale, population size and richness of information required. Questionnaires are often used to provide quantitative data as the basis for more in-depth qualitative discussion either one-to-one or in focus groups. When to conduct an assessment may be driven by such items as: o o o o total number of workshops / interviews to be completed and their locations; level of project detail desired to communicate to participants; information desired from the sessions; and intended use for the results.
Identifying sponsors senior management must sponsor the workshops / interviews for the assessment to be successful. Participants need to be aware that senior management believes this to be a valuable task to assist the project team in addressing their concerns / issues and reduce the change risk; Identifying facilitators - the workshops require two facilitators; one to lead proceedings and one to serve as scribe. The ideal candidate for the facilitator role may be someone with strong and long experience in facilitating in the specific environment, who understands the project and the changes that will result from the project, presents well, facilitates open discussion and is viewed as neutral. Ideally they will be an outsider. Identifying participants - assessments should be conducted with participants from all levels of the organisation to obtain relative ability and willingness to change. This includes senior management, middle management and front-line employees. Front-line employees are especially important since they possess detailed knowledge and in many cases drive the change. Workshops are intended for eight to ten participants each; Inviting participants - participants should receive written invitation no less than two weeks before their participation is needed. Adjust this accordingly for the specific environment; Preparing agenda and timeline - workshops can be conducted in three to four hours but the format is flexible so that it can be tailored to the specific needs of the organisation. Structured interviews can be conducted in one to two hours. Consider demonstrating aspects of the change, such as a new system, in the workshop to reduce anxiety and to provide early training and education; Preparing and customising session materials - tailor the workshop to the specific environment by adding or deleting items from the agenda or changing some of the workshop activities. Customise the facilitator notes and slides, participant workbooks and results presentation template as needed. Structured interviews can be created based on the workshop materials. Be sure to discuss how senior management wants to address key questions that may arise, such as job elimination. All
89
transform*
Making change stick

participants need to hear the same message; Agreeing expected outputs - discuss and agree the expected outputs with senior management and project steering committee. Agree when and how the results will be communicated to the participants and communicate this to the participants during the sessions; and Assigning facilities and coordinating logistics - address room set-up, refreshments, overhead projector or video display, flip charts and name tents.
B12.2

Conducting small and large group interventions
Activities addressed in the assessment may include: Welcome and introductions; Defining transformation; Describing the types of leadership and organisational capabilities required to achieve transformation and evaluating the organisations current capabilities against these; Listing and prioritising action items; and Closing the session.
It is critical to identify what leadership and organisational capabilities are required for the transformation benefits to stick. During the session, ensure that facilitators take detailed notes regarding discussions, concerns, questions and recommendations. This information is invaluable for providing accurate and effective results to senior management as well as for determining appropriate next steps. Ensure that participants understand that there are no right or wrong answers and that all answers are anonymous.
B12.3
Evaluate and summarise the organisation's capability for transformation
The organisation's capability for transformation is evaluated based on the information obtained during the various interventions. After the last intervention is held, summarise the results from all interventions including such items as: List of interventions, the participant groups and number of participants; Primary findings, both positive and negative, of the leaderships and organisations existing capability to achieve transformation; Prioritised action items; Issues and opportunities that cannot be addressed as part of the current project; and Appendices.
If it is determined that there is a significant level of organisational change that must be undertaken to implement the project, additional specialists may be required to review the work that has been completed to date and to provide input into the overall Transformation Route map.

Outputs & Deliverables B12 - i: Change Leadership Diagnostic & Assessment As Described
Benefits
It is essential that before embarking on transformational change that the organisation has the capabilities for it to succeed. The benefits of undertaking an assessment of this kind, is that the organisation can take action to rectify any issues before embarking further into the programme.
90
transform*
Making change stick


Identify capability pros and cons for transformation leadership. Build a leadership capability action plan.
91
transform*
Making change stick

B13 Transformation Capability Route map

Purpose To develop a Transformation Capability Route map that effectively aligns senior management to the major change and addresses the leadership and organisational capability, stakeholder and communications challenges associated with the transformation initiative. Overview Transformation capability refers to the ability and willingness of the organisation to make step changes in the way it works to realise the benefits of the transformation initiative and sustain these benefits over time. These step changes are far reaching and can impact on processes, systems, technology, skills, structures, behaviours and attitudes. They also occur at multiple levels including at the level of the organisation, work group departments. Ultimately, the benefits of a change initiative are delivered by people and often, projects / programmes centre on finding a solution to a problem without sufficiently engaging employees and other stakeholders in the identification and subsequent development of the solution. It is therefore critical that the appropriate involvement and engagement strategies are identified as part of the assessment in the best fit change approach, as it will inform how and the extent to which to involve employees and stakeholders in solution development. The difference between the success and failure of a change initiative may be influenced by whether the change has been understood, embraced and executed by the organisations within the organisation. One of the factors that can turn potential failure into success is an overall Transformation Route map that drives engagement of various stakeholders around the identification and development of a solution to a problem i.e., the Transformation Vision and its subsequent delivery. A Transformation Capability Route map should focus on:
Understanding how the change will impact an organisations leadership, employees and broader stakeholders; Understanding how the proposed change might impact on the organisations structure / design, culture, systems and processes; Defining who key leaders and stakeholders are and what role and skills they should have in advancing change; and Determining the various interactions (e.g., communications, training) needed to secure organisational buy-in and commitment to the change.
Understand the Understand the current current situation situation Establish and Establish and maintain a maintain a drum beat of drum beatt of beat change change Develop the Develop the Transformation Transformation Routemap Routemap
Develop the Develop the vision for vision for transformation transformation
Figure w: The business transformation cycle
92
transform*
Making change stick

Transformational change affects large numbers of people in terms of roles, behaviours, responsibilities and relationships. This means that people will display a mixture of responses. Understanding and managing the impact of these responses is essential if transformational change is to be effective and sustainable. In developing the Route-map a number of points need to be considered: what are the issues, what are the ambitions, what needs to be done, what are the priorities, the planned investments and how will the organisation get there. This involves balancing benefit, with risk, priority and capability.
What are the issues What are our ambitions
What is the investment
How will we get there
What do we need to do
What are the priorities
The development and subsequent implementation of the Route map is based on an assessment of various components that have been found to be critical to delivering step changes in organisations. These are: Leadership alignment aligning the leaders of an organisation with the transformation vision and seeking their support and commitment to the programme of work. This includes providing leaders with: Clarity around the proposed benefits and quick wins; An understanding of their role as transformational leaders, that is, how they are expected to behave as transformational leaders; An understanding of what kinds of behaviours to expect as people go through major change; and Clarity around the project plan and who is accountable and responsible for delivering the project phases.
Change leadership and organisational capability this is a structured approach for assessing the capabilities for change in an organisation and provides important input to the development and subsequent refinement of the Route map. It includes assessing key areas such as: How well or not the organisation has successfully implemented change in the past; The capability of the existing leadership, both as individuals and as a group, to successfully lead the transformation; and
93
transform*
Making change stick

The ability of existing systems, processes and structures to help deliver the transformation.
Stakeholders beyond the leadership group - are defined as individuals and groups affected by and capable of influencing the project outputs and business outcomes. At project commencement, a stakeholder assessment is prepared that defines the power, influence, impact on the project and support required from the stakeholders and stakeholder groups. Communications - Successful project delivery requires the planning, creation and implementation of appropriate communications with internal and external stakeholders. Well-planned and effectively executed communications activities can reduce resistance to the project, build acceptance for the project objectives and assist with benefits realisation. Once the above components have been assessed, various solutions are proposed and integrated into the Route map. These solutions might include:
Changes to organisation structure and design - i.e., organisation structure and design changes are integrated with changes to operational and business processes, technology and facilities; Development of capability and training - this topic is addressed in detail in Phase F; Development of new organisational culture through implementation of a competency framework identifying behaviours that are reflective of the organisations the vision and values; Conducting senior management workshops to formalise strategy, discuss and allocate responsibilities, develop common communications messages and to fully understand all aspects of the change initiative including the post-implementation business outcomes and business benefits; Conducting performance measures workshops where a wholesale reorganisation of the performance measures used by the organisation will occur and a number of workshops need to be held to decide upon and formulate the new reduced set of performance measures which will be used to manage the organisation; and Consideration of Unions / Works Councils.
94
transform*
Making change stick

The Transformation Route map may take many forms, one example is shown below:
Interdependencies
Interdependencies B10: Best Fit Change Approach The Transformation Capability Routemap will need to include change management activities required to delivery sustainable benefits An understanding of the Vision is required to support the activities in creating the Transformation Capability Route map. The Leadership capacity is an important first point of understanding the wider organisations capacity.
B11: Transformation Vision
B12: Leadership & Organisational Capacity
Inputs
Inputs Individual skills matrix A broad understanding of the skills that exist within the organisation is used to identify gaps for the programme.
Task Description
Tasks
95
transform*
Making change stick

Performance Improvement Consulting The creation of a Transformation Capability Route map.
B13.1: Transformation Capability Route map
B13.1
Transformational Capability Route map
A Transformation Capability Route map is a structured approach covering all aspects of delivering change: strategy, structure, processes and people. The cyclical nature of business transformation planning means that the vision and its positioning will be revisited through the life of the engagement. Phase B outlines a comprehensive approach to managing business transformation by: Ensuring that the starting point is known; Establishing the Change Vision for the transformation and the transformation capability of the organisation; Assessing the leadership capability of the organisation; Developing a Change Plan, including a route-map to describe the transformation and the definition of programmes to deliver the step change required; and Developing and maintaining a drum-beat of change, ensuring that regular achievements bring credibility to the transformation process and that there is a regular cycle of transformation planning reviews.
Maintaining the drum-beat of change is critical to ensure relevance and focus to the transformation agenda. The support needed to establish business transformation in the short term includes: Establishing programme management as an important skill in making business transformation work through supporting the development of PMO as a centre of excellence and supporting the development of programmes within the business transformation agenda. Working with stakeholders to highlight the importance of programme management as a discipline, distinct from project management; Development of Route maps for each of the programmes, as well as the overall transformation agenda; Establishing Design Authority and Design Office functions, which will help develop the Business Transformation Route maps and best fit change approach and change strategy; and Support the work to establish the business transformation vision as a credible and achievable aim within that is aligned to the business benefits.
96
transform*
Making change stick

Manage Programme Manage Programme Gain stakeholder Gain stakeholder commitment commitment Predict work and schedule Predict work and schedule Mitigate risks Mitigate risks Set realistic scope and Set realistic scope and manage scope shift manage scope shift Maintain a high-performing Maintain a high-performing team team Realise business benefits Realise business benefits Manage knowledge within Manage knowledge within the programme to the programme to decrease implementation decrease implementation cycle time. cycle time.
Manage People Change Manage People Change Assess change capability Assess change capability and manage change and manage change readiness readiness Engage stakeholders and Engage stakeholders and manage commitment manage commitment Manage stakeholder Manage stakeholder communication communication Train and acclimate into Train and acclimate into new roles new roles Manage behaviours and Manage behaviours and culture change culture change Identify and mitigate Identify and mitigate organisational benefits organisational benefits barriers. barriers.
Manage Manage People People Change Change
Manage Manage Programme Programme
Manage Manage Benefits Benefits Delivery Delivery
Manage Benefits Delivery Manage Benefits Delivery Identify size of the prize Identify size of the prize Consolidate business case for change Consolidate business case for change Disaggregate value to predictive measures Disaggregate value to predictive measures Prioritise initiatives on value and strategic Prioritise initiatives on value and strategic context context Develop tracking framework Develop tracking framework Link to business perspective Link to business perspective Drive actions. Drive actions.
Figure z: Aspects of delivering the Transformational Change
Development of a Route map should address each of the aspects of transformational change.

Outputs & Deliverables B13 - i: Transformation Capacity Route map A Route map to describe the transformation and the definition of programmes to deliver the step change required. May be informed by Change Readiness Assessment and Accelerated Solution Design.
Benefits Understanding the organisations ability to change, creating solutions that are agreed and achievable and creating a Route map on how to get there are essential elements in starting the momentum of change within the organisation that is required to lead the organisation through the transformation programme.
Create a Route map for transformation.
Use the skill to create momentum and a drum-beat of change.
97
transform*
Making change stick

B14 Resource Planning

Purpose To create a plan for allocation of resources across the programme to ensure that the right capability and capacity is available to deliver the change. Overview An understanding of the required capability and capacity of resources across the programme is essential for the PMO to support the transformation programme. Organisations may use a variety of sources for the required resources:

Internal Secondment; Internal (part of the day job); Internal Recruitment; Contractors; Interim Management; Consultancy; Strategic Partnership Arrangements; and/or Service Integrators.
Resource planning is about using the programme plan and project plans to understand resource requirements numbers, roles and skills - and then to use the most effective mix of sources to gain the resources required to deliver the change. Interdependencies
Interdependencies B10: Best Fit Change Approach The diagnosis into the best fit change approach will inform resourcing and if consultant or business (or combination) resources are most appropriate. An understanding of the potential gaps in capability from B12 will inform the resource requirements. The outline business case will require an understanding of the level and indicative costs of the resources required.
B13: Transformation Capability Route map
D5: Create Outline Business Case
Inputs
Inputs B8 - i: Programme Plan The programme plan is required to understand the activities and skills that will be required.
98
transform*
Making change stick

Task Description
Tasks B14.1: Understand Resource Requirements Gain an understanding from the programme planning on the level and type of resources required. Create a plan for sourcing the resources.
B14.2: Create Sourcing Plan
B14.1
Understand Resource Requirements
Use the high level programme plan and opportunity log / projects to identify the level of required resources will need to be identified. It can help to categorise the types of resources by skill areas such as: Programme Management; Project Management; Business Process Reengineering; Change Management; Communications; Technology; Finance; Legal; HR; Training; and Asset Management.
Identification of the numbers of man-days of each type of resources over the planned changes can then be agreed and planned.
B14.2
Create Sourcing Plan
Identify the required resources. At this point, to aid the creation of the outline business case, it is useful to agree an estimated cost for the resource types by the method of sourcing used. Analysis of the sources of resources compared with the needs of the programme timescales should be completed to present options on sourcing organisation. The agreed sourcing option should be documented as part of the high level resource plan. Outputs & Deliverables
Outputs & Deliverables B14 - i: High-level Resource Plan Resource plan that estimates the amount, type and sourcing of resources over the programme for use in the outline business case.
Benefits Resource and capability bottle-necks are a major reason for transformation programmes either stalling or failing. Development of a robust understanding of the required resources can help to ensure that a more strategic approach to resourcing the programme can be taken.
99
transform*
Making change stick


Identify resource types and requirements; Develop a strategy for sourcing resources; and Create a resource plan.
100
transform*
Making change stick

B15 Stakeholder Engagement

Purpose To identify, assess, map and manage all stakeholders throughout the transformation programme. Overview This task provides an overview of the four steps required to identify, assess, map and manage stakeholders as part of a transformation programme. Completing these four steps helps to ensure that key stakeholder needs, ideas and opinions are captured and appropriate actions are taken to inform, engage and involve them. The appropriate stakeholder engagement and involvement strategies will be largely dependent on the diagnosis of the change situation and best fit change approach (refer to B10).
Purpose of Stakeholder Engagement The purpose of Stakeholder Management is to: Ensure that all of the relevant individuals and groups who have an impact on or are impacted by the change, its outcomes and its benefits are identified and are aware of their roles and responsibilities in ensuring success e.g., integrated SAP implementation, the identification and acceptance of the responsibility for owning and managing the day-to-day aspects of the system and the new ways of working; Maximise engagement, and surface, tackle and minimise resistance to the programme through stakeholder engagement and involvement strategies to enable changes to stick and prevent the programme from being derailed; Build a vision and hunger for success for the transformation programme and generate enthusiasm for the change by fully engaging with those that will drive the change an/or are impacted by the change Identify the extended audience for project communications and the project-related information that each stakeholder or stakeholder group should receive and with what frequency; Ensure that all of the project dependencies have been identified and their impact understood; Ensure that any project assumptions have been verified Through involvement build and vision and hunger for success, maximise support for the project and minimise resistance to it.
Project stakeholders are defined as individuals and groups impacted by and capable of influencing the project outputs and business outcomes. To help make change stick stakeholder management activities should begin during the assessment of the business opportunity and development of the Business Case, continue throughout the projects life and then continue as part of the post-implementation benefits realisation process. Assessment of stakeholders and stakeholder issues is vital in identifying the broad range of interests and opinions that need to be taken into consideration. Different stakeholders can perceive the same project in different ways depending upon their expectations; vested interests; previous experience with projects; existing pressure of work; interests and affiliations or their particular characteristics and priorities. With large change initiatives, the concerns, interests and objectives of different stakeholders may be in conflict, requiring resolution. Ongoing communication with these stakeholders helps to build the relationships throughout the life of the programme and can help to manage any conflict that may occur. Stakeholder information may be sensitive and laws regulating its use and distribution, especially its distribution from one country to another, may prevent its wide usage. All of the stakeholder information should be appropriately secured.
101
transform*
Making change stick

Interdependencies
Interdependencies B10: Best Fit Change Approach An analysis of the context, complexity and consequence of the transformation, and the organisational culture and capability will inform the most appropriate engagement and involvement strategy Communications planning requires an understanding of the stakeholder needs.
B16: Communications
Inputs
Inputs Organisation Structure Diagram The existing organisational structure is a good source of information on where different stakeholders may currently sit. Inputs such as interviews, focus groups and analysis of existing information (e.g., organisational plans) will support the assessment of stakeholder roles, their power and influence, the impact of the change on their working lives, the level of current support required from each, the scheduling or timing of their involvement and the actions to be taken. Materials such as the Corporate Plan, Business Unit Plans, Annual Reports, Vision Statements, Surveys, etc. are a good source of information on stakeholders and any key issues that are affecting the organisation. Information from public opinion polls, mass and specialist media and information from political and community is a good source of information on where different stakeholders may currently sit
Stakeholder Information
Organisational Plans
Public information about the organisation
Task Description
Tasks B15.1: Identify Stakeholders B15.2: Assess stakeholders B15.3: Prepare Stakeholder Maps B15.4: Develop Stakeholder Engagement Strategy Identify internal and external stakeholders and groups. Assess the influence and needs of the stakeholders. Map the influence and needs of the stakeholders. Strategy and plan for how to engage stakeholders based upon stakeholder assessment and maps..
B15.1
Identify Stakeholders
Stakeholders are groups or individuals - internal or external to an organisation - who are impacted by or capable of influencing the project outputs and business outcomes. Stakeholders are identified through environmental scanning research. Information can be sought by reviewing the Business Case, the change vision and strategy, organisational charts, corporate plans, project deliverables, assumptions, outputs, business benefits, discussions with senior management, project sponsor and process owners, etc. Identification of external stakeholders can include reviewing public opinion polls, mass and specialist media and information from political and community groups.
102
transform*
Making change stick

When identifying key stakeholders consideration should be given to: Location of the stakeholder: e.g., headquarters, divisions/functions, plant, location, state, country. Equally critical those key groups and/or individuals in the front-line who will either implement the change or be impacted by it; Role in the decision-making process: those that influence decisions in a particular situation or regarding a particular issue, i.e., those that are most active in making decisions, taking actions and communicating and those who will take decisions on the transformation programme or whose decision making capacity could impact the success of the transformation programme. ; Position: some stakeholders may be identified as important in particular situations or for particular issue because of the roles they play and the positions of influence or power they hold (particularly due to Legal hierarchy rather than commercial position); and Membership: affiliation and membership of a professional association or special interest group may be important because they can have influence/power in a situation e.g., industry bodies or trade unions.
Although not an exhaustive list, some key potential internal and external stakeholders are outlined at Figure and Figure :
Figure z: Example Internal Stakeholders
103
transform*
Making change stick

Figure aa: Example External Stakeholders
B15.2

Assess stakeholders
Assess each stakeholder or stakeholder group to determine: The role of each stakeholder or stakeholder group; The power of each stakeholder or stakeholder group; The influence of each stakeholder or stakeholder group; The impact of the project on each stakeholder or stakeholder group The level of support required by each stakeholder or stakeholder group; The schedule for involving each stakeholder or stakeholder group; and Actions to be taken.
B15.3
Map Stakeholders
A stakeholder map helps to group stakeholders in terms of the influence they have on the project, the impact of the project on them and, their current level of support for the change. Mapping their position helps to determine the level and type of stakeholder activities required to inform, involve and engage with them. It also ensures that the Programme team invests the appropriate resources to engage with those stakeholders who are critical to the success of the project. It can be useful to mark the stakeholder group as red / amber / green and this can be reviewed on a regular basis to assess progress. Stakeholders may move up and down the map as the project progresses so this work should be revisited on a regular basis. The list of stakeholders may also change throughout the life-cycle of the project.
104
transform*
Making change stick

Figure bb: Example Stakeholder Map
On large or complex change programmes, it can be useful to define Tier 1 stakeholders who can play a pivotal role in briefing other groups of stakeholders. Tier 2 stakeholders are those who will be briefed by Tier 1 (e.g., at a standing meeting forum, or via regular briefing documents). Key members of the Programme team, those who are supportive of the change and have the necessary power and influence are often the best stakeholder owners. It can be useful to list the Tier 1 and Tier 2 stakeholders and the interventions to be used.
Figure cc: Example Tier 1 and Tier 2 Stakeholder Map
105
transform*
Making change stick

Tier 2 Groups Minister Change Oversight Board Trade Unions
Tier 1 Owner Director of Personnel Project Director Project Manager
Intervention Updates upon request Briefing at monthly meeting Monthly report
B15.4
Develop Stakeholder Engagement Strategy
The diagnosis into the best fit change approach, including the change readiness assessment and culture analysis (refer to B10), will also inform the stakeholder engagement and involvement strategies. In developing the engagement plan, think about how stakeholders, including the front-line, need to be engaged to deliver the benefits of the change. For example, as well as considering the stakeholder assessment and mapping, think about how has it been done previously? What is most likely to work given the culture of the organisation. In addition, consider how different stakeholders and front-line need to be engaged differently, and think through the role that leaders will plan in engaging the front-line and what support they will need to make this happen. Once the engagement strategy and plan has been developed, it is important to monitor progress. The commitment curve defines the various stages of understanding, commitment and ownership required by each stakeholder at each stage of the programme, including the Assess Stage. Based on feedback, the current and desired state for each key stakeholder can be plotted on the curve throughout the life of the programme. This can be used to track key stakeholders by periodically assessing whether they are moving up the commitment curve towards their desired state and then used to tailor communications and engagements with appropriate stakeholders.
Graph A)
Graph B)
OWNERSHIP Ownership
OWNERSHIP
Audience 1
COMMITMENT Commitment
COMMITMENT
Audience 2
COMPLIANCE
COMPLIANCE
Compliance ENGAGEMENT
Audience 3
ENGAGEMENT
Engagement UNDERSTANDING Understanding
UNDERSTANDING
AWARENESS Awareness
AWARENESS
Audience 4
Now
Phase 0
Phase 1
Phase 2
Phase 3
Figure dd: Example Stakeholder positions on the commitment curve
Other tasks may include: Determining the stakeholder engagement and involvement actions required for each stakeholder before, during and after the project; Implementing the stakeholder engagement actions; Maintaining the Stakeholder Forms, Stakeholder Maps and stakeholder engagement plans as stakeholders change or are added;
106
transform*
Making change stick

Preparing and distributing Stakeholder Management Reports; and Measuring and maintaining levels of stakeholder engagement before, during and after the transformation.

Outputs & Deliverables B15 - i: Stakeholder Management Plan Plan for management of stakeholders and stakeholder groups.
Benefits Stakeholder management is vital for ensuring the programme is a success, both through formal involvement or in providing feedback on the effects of the change. The programme is likely to be better supported (and therefore more successful) if stakeholders are informed, involved and engaged in its development.

Identify stakeholders and stakeholder groups; Identify the influence and needs of the stakeholders; Create a stakeholder map; and Create a stakeholder plan and mange it on an ongoing basis.
107
transform*
Making change stick

B16
108
transform*
Making change stick

B16 Communications
Purpose To develop a Communication Strategy and Plan that provide a clear picture of the communication objectives, principles, core messages and channels to be used when engaging with various stakeholder groups. The Communications Strategy & Plan will be partially determined by the diagnosis of the best fit change approach (refer to B10). Overview The Communication Strategy and Plan provides:

The aim, objectives and core elements of communication; A summary of the stakeholder groups; An overview of the key messages to be communicated; The activities and channels of communication and any legal controls or constraints to be implemented in such communications; The means for evaluating communication effectiveness and measures of success, and An outline of potential issues and risks.
Once developed and agreed, the Communication Strategy and Plan is used to address the communication needs of the stakeholders and, based on feedback gathered, should be updated throughout the programme to ensure alignment between the communication plan, the stakeholder needs and the overall change management strategy. Interdependencies
Interdependencies B10: Best Fit Change Approach The communication planning process is an essential part of the overall Change Management Strategy, and is influenced by the context, complexity and consequence of the transformation, and the organisational culture and capability.
Inputs
Inputs Communications feedback Feedback on existing communication organisation and Legal input. channels within the
B15 - i: Stakeholder Management Plan
Plan for management of stakeholders and stakeholder groups.
Task Description
Tasks B16.1 Conduct A Communications Diagnosis B16.2: Prepare and agree the Communication Strategy and Plan Conduct a communications audit or baseline assessment Develop the communication strategy and plan and develop an approach to implementation.
109
transform*
Making change stick

Performance Improvement Consulting Implement programme communications.
B16.3: Implement and manage the Communications Strategy and Plan
B16.1

Conduct a communications diagnosis
The objectives of a communications diagnosis or base line assessment are:

To determine the effectiveness of the media used and to identify media for future communications as appropriate by audience group; To confirm the clarity and consistency of information and the frequency requirements to inform future communications plans; To identify information needs of various stakeholder groups that would be required for their engagement and commitment to the programme; To identify the preferred methods and channels of communication by various stakeholder groups; and To identify regular communications interventions (including meetings, conferences, bulletins) that can be used for the transformation programme communications
As part of the diagnosis, review the channels available; what has worked well in the organisation before and at other organisations in similar situations? Where there is a change history or legacy, especially of failed initiatives, identify the role communications played and what would work best going forward based on those lessons learnt. It is equally important to assess the typical channels for communication, and what is and is not possible when it comes to using hi-tech methods of communication. Information can be gathered via a communications audit survey, interviews and focus groups. Both the diagnosis into the best fit change approach and baseline communications will inform and shape the Communications Strategy and Plan
B16.2
Prepare and agree the Communication Strategy and Plan
Preparation of the Communication Strategy and Plan should include: The aim, objectives and core elements of communication: This is about communicating with a purpose, that is, identify the response you want from your audience what you ant them to know, think, feel and do (using the right messages and media to achieve it). This should be linked to the overall objectives of the programme and, if appropriate, the vision and values of the organisation taking into account organisational culture and current communications responsibilities and processes. It is also important to ensure that the Communication Strategy and Plan is reflected in the Change Strategy and Plan; An overview of the key messages to be communicated: Developing a consistent set of messages few in number, simple and brief and tailoring them throughout each stage of the programme for specific stakeholders. Knowing how much information or knowledge each stakeholder requires and what you want them to do as a result influences the frequency, timing and complexity of the message being delivered. This ensures that the communication has a clear purpose. The activities and channels of communication: Determining the types of communication required for each target audience and also any system requirements to create and deliver each communication. The chart below provides examples of the various channels of communication that can be deployed to engage and inform stakeholders.
110
transform*
Making change stick

electronic/ web engage

website pulse tools, blogs virtual communities personal statements/ modellers Q&A, feedback E-pulse interactive dialogue helpline E-learning blogs audio/video
face to face
meetings
intranet
workshop meetings Focus groups
team events workshops
conference
works councils Stakeholder interviews Training and workshops roadshow Starters pack Reward Newsletter statements
review sessions
print
Toolkits
e-board webcast Cascade e-mail briefing
Forms Print survey
Behavioural aids
Guidelines
inform
Newsletters
awareness
Figure ee: Example of communication channels and tools
ownership
The measures of success: Defining measures of success forms a key part of the Communication Strategy and Plan. It should clearly articulate how the communication activities will be monitored and how progress on the levels of stakeholder commitment is requested and fed back. There are a number of measurement tools available. It can be useful to think about evaluating communication and stakeholder activities against 3 levels: Level 1 Ensuring that the channels of communication are fit for purpose. Seek approval of the Communication Strategy and Plan to ensure that it is relevant and appropriate for the audiences and that it meets the required objectives. Level 2 - Evaluating the effectiveness of organisation Communication and Stakeholder Engagement communications. Collate feedback on all communication and stakeholder activities. This information tests how well the communications meet the defined objectives for that activity. This can be relatively straight forward e.g., use of feedback sheets after face-to-face briefing sessions; one to one meetings, workshops with key individual; regular formal feedback from project team members (email / phone survey etc.) or a more comprehensive survey across individual. If the two tier stakeholder process is used, Tier 1 stakeholders can complete short feedback sheets after they have briefed the Tier 2 stakeholders. Feedback is more difficult to collate on broadcast communications such as the intranet and hard copy communications. Response rates will tend to be low however, creating the facility to provide email or intranet feedback can prove beneficial; and Level 3 - Evaluating the combined effectiveness of all communication and stakeholder interventions. Evaluating the combined effectiveness of all actions is most effective when carried out at ground level within the organisation. For example, management could be asked to test the pulse of the different individuals within their areas of work e.g., a sense check of 10 individual per month. This data could then be combined with any other anecdotal feedback gathered, confirming the readiness of stakeholders for the programme and providing direction on how communication and
111
transform*
Making change stick

stakeholder activities should be targeted. An outline of potential issues and risks It is important to define the factors that may impact the successful implementation of communication and stakeholder management (e.g., lack of internal project communication regarding project progress, conflicting requirements, resource constraints, timing constraints, etc.). Also any technology requirements to create and deliver each communication and any issues or risks involved. It is good practice to have the governance process clearly outlined in the strategy. For example, it can be useful to set up a small governance group for communications that can meet regularly during the design and delivery of communications. Additional issues to consider include: Determining when and how to use internal or external communications experts e.g., graphic design, photo journalists; Developing senior management commitment to the timely communication of information and decisions to employees, customers and suppliers; and Strategies to assure quality and consistency when responsibility for dissemination of messages is devolved.
B16.3

Implement and manage the Communication Strategy and Plan

Installing or building and testing any communications technology components; Preparing and agreeing project communications; Delivering project communications; Updating the Communication Plan and the Communication Strategy Matrix; Collecting project communications feedback and tracking performance measures; and Industrial relations and works council strategy.
Implementation and management of the Communication Strategy and Plan includes:
As a reference document it is worthwhile summarising this information into tables which can be referred to at a glance. An example is shown below.
A) Develop: The creation of plans, development of content and the authorisation process
D) Review & adjust: Use management Information to improve Communication and Stakeholder activities
Communications Feedback and Reporting Process
B) Deliver: The delivery of communication and stakeholder activities
C) Measure impact & gather feedback: The gathering and collation of information relating to activities to ensure stakeholders are complying
Figure ff: Example of Reference table for Communication Plans
112
transform*
Making change stick

Gantt charts can also be used to summarise the detail of the communication and stakeholder management activities outlined in the plan. These charts can also be a useful way of providing feedback about progress organisation.
Comms Plan Feb-08 Mar-08 Apr-08 May-08
10
11
12
13
14
15
16
17
18
19
20
21
22
Comms Products
Client Wide
G n r l C m s ll D p r e ts&S f e e a o m:A e a tm n taf
Intranet Launch Intranet Launch Posters Intranet launch Desk Drops Extranet Maintenance ePresentation / Video Content Development eBulletin / eZine Respond to Presentation Requests HR Director Briefing Paper Issued Launch Materials Service Launch Posters Posters approved and received in April Not required Ongoing drafting in April
P P P
P P P P P P
Pe a aio rG iv r p r t nfo oL e
Pre Go Live Letter from CEO Go Live Letter and Helpsheets Departmental Go Live Update Presentation Staff Briefing Presentation Line Manager Briefing Presentation Service Launch Penguin Stands (branded) Quick Start Guide / Online Starter Pack Project Management
P P P
Pop ups approved and received in April Completed
M n g mn aae et
po e s s r cse
Weekly Status Report Fortnightly CRAG Meeting Monthly report
P P P
P P
Figure gg: Use of Gantt Charts for management of Communication and Stakeholder Management activities
As well as including detail about communication activities, the plan should also detail the stakeholder management tools to be used. Again, this detailed information can be summarised into a table for quick reference and reporting purposes in a Communication Strategy matrix.
COMMUNICATIONS STRATEGY MATRIX

Project: Completed By:
Audience Message Medium Language Contributors/ Authors Raiser of risks, issues, dependencies, assumptions and change requests with details, options, proposed solutions and decisions sought. Timing/ frequency/ effort Weekly (9am Friday) 2 hours
Date: Page
Responsibilities
of
Feedback mechanism Verbal, during the meeting Performance measure All action items appropriately addressed
Programme Management Team
All programme individual
Progress against plans and milestones New risks, issues, dependencies and assumptions Actions required relating to risks, issues, change requests, dependencies and assumptions Project progress and achievements to date
Group meeting with conference call, if required.
English
Steering Committee
e-mail
English
Programme Office
Weekly (11.45 Friday) 0.5 hours
Project Team
e-mail response mail box
Appropriate focus of programme activity over the following week
113
transform*
Making change stick

COMMUNICATIONS STRATEGY MATRIX

Project: Completed By:
Audience Message Medium Language Contributors/ Authors Programme Office, drawing on organisation Project Status Summary reports Timing/ frequency/ effort 9am daily. As necessary
Date: Page
Responsibilities
of
Feedback mechanism Verbal, during the meeting Performance measure All action items appropriately addressed
Programme Management Team Meeting will only be held when essential. The time (30 mins) should be held in diaries and the meeting called by 6pm previous day.
Immediate decisions needed relating to a risk, issue, dependency or assumption that can not wait until the regular Friday meeting
Group meeting supported by 1 or 2 page graphic with supporting text.
English
Project Office
Figure hh: Example Communications Strategy Matrix

Outputs & Deliverables B16 - i: Communications Plan Plan for delivery of programme communications.
Benefits It is important to manage planned communication with stakeholders before any conflict occurs, since any stakeholder is a potential adversary and relationships may flex depending upon the specific situation. Managing communication with stakeholders helps to develop stable, long term relationships in order to build support for the programme and to manage conflict. This communication should be two-way with the programme listening and modifying its practices to re-establish and re-align relationships. Knowledge Transferred to the Organisation Typically the organisation will learn how to:

Develop a Communication Strategy and Plan; and Implement co-ordinated, targeted and tailored programme communications.
114
transform*
Making change stick

C Create Transformation Baseline

Purpose To collect and assess critical information about the organisations people, processes, technologies, organisation, facilities and structure. Overview This Phase establishes a clear baseline from a cost efficiency and business effectiveness standpoint and produces an initial list of improvement opportunities for consideration through the use of an evidence based approach. One of the key parts of any transformation programme is to understand the scope of opportunities for improvement: There are usually a large number of initiatives that could be done but each has a different cost and benefit;
It is important to consider the impact multiple initiatives would have over time on the organisation. It may not be possible to complete all of the possible changes as the organisation cannot deal with this amount of change together with business-as-usual challenges; It is important to consider whether re-structuring the organisation is to be undertaken (e.g., introducing shared services or selling properties) and the people impact that these changes; and There are often a number of quick wins initiatives that can be performed that do not require significant process or technology changes but which can have a disproportionate impact e.g., individual and team leader training, investment in better quality information.
This Phase is based on an analysis of how the organisation conducts business. The key to achieving a step change in performance improvement is to focus effort where it will count the most. This requires the selection of the most effective improvement initiatives and the management of them as a portfolio directly linked and aligned with the organisations strategic intent. Various techniques can be used to identify opportunities for improvement including:
Service Challenge, where experts in particular services review performance and cost data and interview key stakeholders with the aim of identifying opportunities for cost or revenue improvements; Process Review, where current processes are reviewed and mapped(i.e., tasks involved in completing work and the handoffs between people / teams) to find either redundant work or reduce the number of hand-offs. At this stage of the programme, the focus is on how inefficient a process is, in subsequent stages the focus shifts to process designs;. Activity Analysis, mapping organisations time against the work performed (typically mapped to nearest 5% or 10%). Typically, this is completed against a 32 to 40 activity model to identify areas of work that are value-adding (e.g., providing services, processing applications etc), versus those that are low valueadd (e.g., reporting, admin, Finance / HR / procurement support, etc). organisation Activity Based Costing, where a financial analysis of the costs of providing a service is mapped against the activities performed. This is similar to activity analysis but rather then just capturing individualorganisation information, other costs are also captured e.g., procured goods or services, team overheads including property, IT, grants and corporate overheads. The aim of activity based costing is to understand where costs are spent and ensure the focus is on spending on value-adding activities, and is providing good service; Transactions Review, where the volume of service transactions is reviewed with a view to understanding patterns of demand across service types and time periods. This is completed across all customer channels to identify areas where services could be provided with a greater customer focus,
115
transform*
Making change stick

more efficiently and more effectively, for example by moving services to different access channels; and
Value Driver Analysis, where the key levers of the business that drive value are analysed to understand how the drivers of value inter-relate, create value and impact the value KPIs, how the associated risks can impact upon value creation due to uncertainty and what the commercially viable options are that can deliver quantifiable benefits; and Saratoga measurement and benchmarking, establishing a baseline using the Saratoga methodology is critical in transforming a support function such as HR and Finance. It involves capturing human capital and HR function data based consistent Saratoga definitions, and benchmarking it against comparator organisations. Depending on the organisation complexity and purpose, additional measurement can be undertaken such as measuring performance of HR shared services and talent management process impact.
Baselining may make use of all of the techniques above to create a robust view of the opportunities for improvement ( Figure ).
Figure ii: PwC Approach to Data Analysis of an organisation
A Standardised Process Grouping Model can be used to support the data gathering tasks as this develops a consistent view of the whole organisation. This also enables a gap analysis against Leading Practice Business Processes. The gap analysis is a key enabler for the transformation and is used as the basis for further identification and clarification of opportunities to be taken forward as part a transformation programme. An example Standardised Process Grouping Model for(use in UK local government) is defined at Figure .
116
transform*
Making change stick

Front Line Operations Front Line Operations

Initial Customer Initial Customer Contact Contact Assess & Decide Assess & Decide Service Delivery Service Delivery Management & Management & Supervision Supervision Workforce Planning & Workforce Planning & Scheduling Scheduling Administration Administration
Enquiry Handling Enquiry Handling Processing Requests Processing Requests & Applications & Applications Managing Managing Appointments Appointments
Eligibility Eligibility Assessment Assessment Approval of Service Approval of Service
Service Delivery Service Delivery
Management & Management & Supervision Supervision
Workforce Planning Workforce Planning Workforce Scheduling Workforce Scheduling
General General Administration Administration Recording & Data Recording & Data Entry Entry Billing & Receiving Billing & Receiving Payments Payments Close Record Close Record
Strategic & Support Services Strategic & Support Services

Procurement & Procurement & Commissioning Commissioning Managing Contracts Managing Contracts ICT ICT HR HR Marketing, PR & Marketing, PR & Communications Communications Legal Advisory Legal Advisory Services Services
Procurement & Procurement & Commissioning Commissioning
Managing Contracts Managing Contracts
ICT ICT
HR HR
Marketing, PR & Marketing, PR & Communications Communications

Fleet & Plant Fleet & Plant Management Management
Legal Advisory Legal Advisory Services Services
Strategic Support Strategic Support
Financial Management Financial Management
Health & Safety Health & Safety
Stores & Distribution Stores & Distribution
Payroll Services Payroll Services
Strategy & Policy Strategy & Policy Research & Research & Consultation Consultation QA, Performance QA, Performance Management & Management & Improvement Improvement Business Information Business Information & Reporting & Reporting
Financial Financial Management Management

Supporting the Supporting the Democratic Core Democratic Core
Health & Safety Health & Safety

Master Data Master Data Management Management
Stores & Distribution Stores & Distribution

Fleet & Plant Fleet & Plant Management Management

Workforce Planning & Workforce Planning & Scheduling Scheduling
Payroll Services Payroll Services
General Administration General Administration
Supporting the Supporting the Democratic Core Democratic Core

Property, Estate and Property, Estate and Facilities Services Facilities Services
Master Data Master Data Management Management
Workforce Planning Workforce Planning Workforce Scheduling Workforce Scheduling
General General Administration Administration
Property, Estate and Property, Estate and Facilities Services Facilities Services
Figure jj: Example Standardised Process Grouping Model
One of the key challenges typically encountered during this Phase is defining the amount of information to be gathered. There needs to be sufficient information gathered to scope the improvement initiatives but too much data gathering may lead to analysis paralysis and loss of momentum within the programme. Use of well-designed data gathering tools and templates can facilitate structured data capture in a simple and efficient manner. The activities within Phase C provide a structure for the analysis through:
Lesson Learnt In general gather more data rather than less and across as much of the organisation as possible. The information gathered in this Phase will be used to decide which initiatives to progress. If there is insufficient information, then it is easier for conclusions to be disputed (e.g., that process is poor in Team A but actually its adequate in Team B) and hence for the programme to stall due to a lack of sponsorship. If detailed data has been gathered and it is comprehensive across the organisation, there is far more ability to gain consensus on the initiatives to progress. If there are concerns about time taken, where tools and templates are being used, perform detailed sampling.
Preparation of the data collection exercise, including the tailoring of data collection tools; Data gathering using techniques such as service challenge, process review, activity analysis, activity based costing, transaction reviews and value driver analysis;
Review and analysis of the key elements of the organisation (Customers, People, Service, Process, Technology, Facilities and structure); and Gap analysis against Leading Practice to support the identification of opportunities.
117
transform*
Making change stick

The VCC approach can shorten the time taken to complete the baseline by highlighting the greatest areas of value and focussing data gathering and analysis on these areas. Not utilising a VCC based approach may potentially lead to an unnecessary delay in getting the transformation started and potential budget overruns for the project team as time is spent on unnecessary data gathering. In some cases however, a complete analysis of how an organisation conducts business may be relevant. Particularly where there is little organisational or industry expertise to draw upon. The diagram below provides an overview of the inputs, outputs, interdependencies and tasks of Phase C:
Assess Phase C: Create Transformation Baseline
Inputs

A3 i: Updated Transformation Principles (with Operational Location Options) A5 i: High-Level Review of Legal Structures & Taxation Issues A6 i: High Level Review of Supply Chain Issues and Direction A7 i: High-Level Review of Sourcing Issues and Direction C: Create Transformation Baseline
C3 i: Current
Key:
C4 I; Current
Governance Structures
C3 ii: Current
Operational Models
C4 ii: Current
Client / External
Strategic Direction
Partnership Structures
C3 iii: Current
Sourcing Structures
C4 iii: Current

Deliverables from
B1 i: Assess Stage PID Change Readiness Workshop Evaluation Change Readiness Issues and Opportunities Background Information
C1 i: Standardised
C1: Prepare for Data Gathering
Funding Structures
Supply Chain Structures

C4 iv: Current
the programme
Process Grouping Model and Descriptions

C1 ii: Definition of
Taxation Structures
C4 v: Current
Legal Structures
Business Units / Services / Functions

C1 iii: Approach to
Structure
C3: Review Existing Governance Structures C4: Review Existing Operational Models & Organisational Structure
C C
Facilities Register C5 i: Current Physical Location Map
Data Gathering: FTEs, Financials, Property / Fleet, Applications, Transactions

C1 iv: Data
Facilities
Gathering Training Pack
C5: Review Existing Physical Locations C6: Review Facilities Principles
C C12: Leading Practice Gap Analysis C

Asset Info
Interdependencies
A: Determine Business Needs & Benefits B11: Transformation vision
C2: Data Gathering C2: Data Gathering C2: Data Gathering
C2 i: FTE Activity Info C2 ii: Financial Info C2 iii: Application Info C2 iv: Project Info C2 v: Asset Info C2 vi: Transaction Metrics C2 vii: Legal Info
C2 - i: FTE Activity
C6 i: Current
Information
Process / Service
C2 ii: Financial
Information
C2 iii: Application
C7: Customer / Market Analysis C8: Review Service Metrics / KPIs
C C
Facilities Portfolio
Information
C2 iv: Project
Enabling People & Technology Organisation
Information
C2 v: Asset
Information
Transaction C2
vi: Metrics
C2 vii: Legal
C9: Review Organisation Policy and Standards
A2 i: Updated Transformation Principles (with Customer Insight)
C7 i: Customer
Analysis
C7 ii: Market
C12.1 i: Leading Practice Principles C12.2 i: Opportunity Log C12.3 i: Business Unit Opportunities C12.3 ii: Business Unit Gap Analysis C12.4 i: CrossCutting Opportunities C12.4 ii: CrossCutting Gap Analysis C12.- i: Opportunity Long-list C12 ii: Gap Analysis C12 iii: Analysis of Baseline Data
Analysis
Information
Existing HR
C9 i: Key HR
C10: Review IT Principles
C C
Transaction
Policies and Procedures

Legal
Policies
C9 ii:
Requirements
Performance Management Culture

C9 iii: Statutory
C11: Data Review
Metrics
C8 i: Service
Metrics
C10 i: Current C2 iii: C11 i: Current Data C2 iii: Data Information C2 iv: Project Information A5 i: Highlevel review of
Requirements
ICT Architecture
C10 ii: Current
Application Info
C2 iv: Project
Architecture
C11 ii: Current Data
Outputs
ICT Planned Changes
Information
Planned Changes
Legal Structures & Taxation Issues
Phase C is dependent on Phase A: Determine Business Needs & Benefits as the opportunities identified during Phase C should be evaluated against the business needs defined in Phase A. Task B11: Align Leaders to Vision is dependent on many of the activities within Phase C, as many of the key stakeholders will require robust analysis of opportunities against a baseline to be convinced of the Case for Change. The key tasks within Phase C are:

C1: Prepare for Data Gathering; C2: Data Gathering; C3: Review Existing Governance Structure; C4: Review Existing Operational Models and Organisational Structure: C5: Review Existing Physical Locations; C6: Review Facilities Principles; C7: Customer / Market Analysis; C8: Review Service Metrics / KPIs;
118
transform*
Making change stick

C9: Review Organisation Standards & Policies; C10: Review IT Principles; C11: Data Review; and C12: Leading Practice Gap Analysis and Benchmarking.
119
transform*
Making change stick

C1
Prepare for Data Gathering
Purpose To prepare and train the individuals involved in data gathering. Overview The creation of a baseline requires a number of resources, including:

Core team members to shape and drive the data collection; Core team members to prepare the organisation for data collection; and Business area representatives to act as coordinators and conduits within each business area during the data collection.
The exact mix, and number, of resources required will depend upon both the scope of the programme and also the existing levels of capability within the organisation to undertake some of the activities. The diagnosis into the best fit change approach will also inform resourcing and how the process of data gathering can be used as part of the involvement and engagement strategy. The focus in this task is to work with the individuals who are tasked with conducting data gathering to transfer knowledge regarding the information gathering and review approach that is to be adopted and to identify additional support resources that may be required. Early activities should include the creation of a project briefing pack for team members and the wider cross organisation team to increase awareness of the scope, detailed approach and targeted outcomes for the review. A key activity is to establish the best mechanisms for knowledge sharing and skills development, for example through the creation of a project library and / or through the introduction of targeted briefing sessions with scenarios to support individuals that facilitate learning in a safe environment prior to workshops. The approach should be flexible and adaptable to individual needs and preferred working style and involve the use of specialists in team coaching and knowledge transfer methods. The approach to training seeks to create a foundation for delivering transformation, putting in place the framework for developing an organisation with the appropriate skills and knowledge to identify and implement sustainable change on a transformational scale and realise the required benefits. Training components that may need to be considered for different stakeholders includes:
The strategic context of Simplify, Standardise and Leading Practice Models within the overall vision for the organisation. Outlining the benefits of common processes and technology solutions and the potential benefits available from addressing why the organisational review is being performed; The scope of the review, the programme structure and plan, and how to get help or support in completing specific project activities or in specific knowledge from organisation wide services; The tools and activities that are to be used to review both the business processes and the supporting information systems; The proposed process for challenge and validation of findings and opportunities, developing skills to envision ways in which the organisation could deliver its products and services. This may also include potential opportunities for sharing services across the organisation or with external partners where efficiency savings could potentially be achieved; and The approach to knowledge management and overall transformation of the organisation.
120
transform*
Making change stick

Interdependencies
Interdependencies B1: Project Initiation During project initiation the mandate for creating the team for data collection and the process of kicking-off the activities is approved. The diagnosis into the best fit change approach will inform resourcing, the most appropriate means of data gathering, and how the process of data gathering can be used as part of the involvement and engagement strategy.
Inputs
Inputs B1 - i: Assess Stage PID Agreed project structures and teams are outlined in the PID. This will outline the allocation of resources for this task. The evaluation of change readiness will help to highlight the organisations ability to undertake the collection of data. Any particular issues that need to be addressed to ensure a robust collection of data can be highlighted in the change readiness issues. Background information such as financial structures, organisation structures, types of services provided, etc. will legal structures support the definition of the data collection exercise.
Change Readiness Workshop Evaluation
Change Readiness Issues and Opportunities
Background Information
Task Description
Tasks C1.1 Define Standardised Process Grouping Model to be used Using PwC existing examples of Standardised Process Grouping Models as a basis, a model is created to form the basis of the data collection for the organisation. It is important to be able to view each level of the organisation by the model therefore the products, services and functions that currently exist are built into the data collection tools. Agreement is reached on the methods to be used during the data collection exercise. A training pack is created to explain how the data collection exercise will be undertaken.
C1.2 Define Products / Services / Functions
C1.3 Approach to Data Gathering
C1.4 Data Gathering Training Pack
C1.1 Define Standardised Process Grouping Model to be Used

The Standardised Process Grouping Model definition defines the basis for this Phase. It is a critical activity in understanding the organisation from a consistent business wide perspective. All information collected in this Phase can be collected using this model to ensure that a consistent language is used to describe the organisations operating environment.
121
transform*
Making change stick

An example of a standardised Process Grouping Model is shown below. At the highest level the model had two main areas: Front Line Operations - This describes the customer lifecycle from the initial contact through to closing the customer contact; and Strategic & Support Services - This typically covers the back office services that support the organisation in delivering its frontline services.
Processes Function e.g. Invoice matching

Frontline Operations Strategic & Support Services Procurement & Commissioning Managing Contracts ICT HR Marketing, PR & Communications Legal Strategic Support Financial Health & Safety Stores & Distribution Fleet Management Payroll Stakeholder Management Master Data Management Management & Supervision Workforce Planning & Scheduling General Administration
Initial Customer Contact Assess & Decide Service or Product Delivery
For each function we will collect data against each of these processes
Management & Supervision Workforce Planning & Scheduling Administration and Billing Close the Contact
Figure kk: Example Standardised Process Grouping Model (Public Sector UK)
C1.2 Define Products / Services / Functions

This typically represents the organisations existing structure and defines how the data will be gathered. The more detail the data is collected at then the more detailed understanding of the organisation will be achieved. The following 3 level breakdown helps define the breakdown of functions. For data gathering at 3 levels: Level 1 Directorate or Department or Business Unit; Level 2 Product or Service; and Level 3 Function. Lesson Learnt Whilst it is generally recommended to gather data across the organisation, this may not be feasible e.g., if there are current initiatives in place or budgets are partitioned so that savings cannot be re-used. The depth of data gathering may also be reduced where there is limited scope for improvement. The aim should always be to focus resources without missing opportunities due to a narrow scope. The data gathering approach is comprehensive, so that all activity is captured typical BPR identifies savings in one process but not exactly who does it. Hence when the process is changed, there is an issue later about who was involved (i.e. typically less than originally expected), so benefits are reduced. If all the work a person does is identified, this issue is substantially reduced.PricewaterhouseCoopers LLP
An example of this is as follows: Finance Department; Creditors Service; and
122
transform*
Making change stick

Invoice Matching.
C1.3 Approach to Data Gathering

The breadth and depth of data gathering is defined by reference to the Standardised Process Model and the organisation levels at which data is to be gathered. Data collection should use this model as a basis for collection which should include: Individual or Full Time Equivalents (FTEs); External Spend; Current Budgetary Arrangements; Technology Applications; Current or planned projects; and Volumetric Data (Transactions Review).
E.g., Data collected for an HR transformation may include core human capital measurement such as financials, productivity & ROI, compensation and benefits, absence turnover, resourcing, learning and development. Depending on the engagement, metrics may also be collected around corporate and support function such as HR, HR Shared Services and Talent management. The data collected using this approach can be used in later tasks using a number of techniques, including; Activity Analysis; Service Review; Process Review; Transactions Review; and Activity Based Costing.
Gathering data does not necessarily mean that every business process customer needs to be engaged directly. There are many sources of information. The challenge is to analyse and draw conclusions from existing data and to plan and undertake direct customer interactions which can be used to: Validate information that currently exists; Identify information gaps; and Fill information gaps.
Different approaches are available to Information gathering and include: Conducting interviews; Conducting surveys / questionnaires; Conducting focus groups / workshops; Making observations or site visits; Reviewing outputs from feedback mechanisms such as; Reviewing internal and external data such as; o o o o existing organisational information e.g., financial reports, strategic / corporate plans, annual reports, operational budgets, capital expenditure budgets, IT development plans, industry expert reports, market studies, secondary data i.e., data that has already been collected for reasons other than those which are driving the collection of information for the specific engagement but which may
123
transform*
Making change stick

contain insight which can be used; and o competitor information.
A range of high-productivity tools are available that allow a significant degree of structured data capture, yet are simple and efficient to use and hence do not take a long time to gather the data and can often be used either via self-service or by training to gather the data. Structured interviews may be an appropriate technique to select for gathering information about an organisation from senior management. Interviews may also use a questionnaire to structure discussions. Interviews may take many forms as shown in the table below and can be used throughout the process of gathering customer information such as: At the beginning of information gathering to learn what is important to customers, which supports the development of hypotheses about customer expectations; During information gathering to clarify points or to better understand why a particular issue is important to customers; and At the end of information gathering to clarify findings, to get ideas and suggestions or to test ideas with customers.
Sample Interview Types and Information Requirements:

Types of Interview Organisation Information Required from Interview Group Unique perspectives Senior management participation Input from significant business process customer Information from business process customers with similar process output needs Middle management participation Information from many people from a particular customer group Inputs from customers who are widely dispersed geographically Information on basic issues Quick turnaround of information collection
Telephone/Mail
Conducting a survey or using a questionnaire may be an appropriate technique for gathering information across an organisation or in circumstances where a large number of personnel need to be canvassed and where one-to-one interviews may not be economical. Making observations can be used to identify and record the behaviour of people given certain circumstances and to obtain information about behaviour patterns. Types of observation include: Structured: Specific activities are observed and measured; Unstructured: All activities are observed to gather information that will aid in the development of a hypothesis; Disguised: Respondents are unaware of the observation; Undisguised: Respondents are aware of the observation; Natural: Observation takes place in the normal environment; and Contrived: Observation takes place in an artificial environment.
124
transform*
Making change stick

C1.4 Data Gathering Training Pack

Having defined the process model, the organisations functions and the approach to data gathering, a training pack for data collection is prepared. This explains each of the data gathering steps and should provide working exercises to allow the data collection team to practise collecting data in a real life scenario. It is important that stakeholders are involved in data collection as this provides a sense of ownership and can make data challenge less likely. The training pack should also cover the purpose of data collection, the rules for data collection, definitive definitions of the processes and the available support for any questions that arise from data collection.

Outputs & Deliverables C1 - i: Standardised Process Grouping Model and Descriptions C1 - ii: Definition of Business Units / Services / Functions C1 - iii: Approach to Data Gathering: FTEs, Financials, Property / Fleet, Applications, Transactions C1 - iv: Data Gathering Training Pack A Standardised Process Grouping Model that is tailored to the organisations specific industry or business needs. A description of the organisations existing structure to enable effective data collection. Documentation of the approach to data collection and tailoring of the tools required to collect the data. A training pack used with organisation individual to support the data collection.
Benefits Provides the basis for a consistent approach to the data gathering process.
Knowledge Transferred to the Organisation The organisation will have the following knowledge:

The capability to collect the data from their functions; The dos and donts of data collection; An understanding of the business structure; and The initial learning around the Standardised Process Grouping Model view of their organisation.
125
transform*
Making change stick

C2
Data Gathering
Purpose To gather current state baseline information about each operation within the organisation. Overview This task is vital in understanding how the organisation operates and is the foundation on which future decisions are guided over the term of the project and beyond. Data is gathered in relation to areas such as financial, IT application, FTE information and current / planned projects across services. This data is mapped to the Standardised Process Grouping Model. Interdependencies
Interdependencies C1: Prepare for Data Gathering It is essential that the data gathering task is properly planned and prepared and that the organisation is communicated to on what is about to take place. The leadership will play a key role in preparing the organisation for the data gathering and gaining support from middle management to cooperate with the core teams. For data gathering to be carried out successfully, it is important that appropriate stakeholder groups are aware and understand the purpose for data being gathered.
B11: Align Leaders to Vision
B16: Communications Strategy and Plan
Inputs
Inputs C1 - i: Standardised Process Grouping Model and Descriptions C1 - ii: Definition of Business Units / Services / Functions Key to the data collection is a common vocabulary for describing the way the organisation conducts its business. To ensure that the whole organisation is covered in the data collection a definition of the structure of the organisation is required. The approach will be clearly defined and documented ready for the data gathering. The data gathering training pack is required to ensure the team has a clear understanding of how the task will be undertaken.
C1 - iii: Approach to Data Gathering: FTEs, Financials, Property / Fleet, Applications, Transactions C1 - iv: Data Gathering Training Pack
Task Description
Tasks C2.1: Gather FTE information Gather information about people based upon the Standardised Process Grouping Model. Gather existing financial reports and also collect financial information by the Standardised Process Grouping Model. Gather information on IT applications by function, cross referenced with the leading practice model. Gather information on current project portfolio and maturity of the
C2.2: Gather Financial Information
C2.3: Gather Application Information
C2.4: Gather Current Project Information
126
transform*
Making change stick

Tasks organisation in its project and benefits management approaches. C2.5: Gather Asset Information Gather information about the organisations assets and how they are used. Gather information on the typical volume of transactions that the organisation undertakes in a specified period. Gather information on the organisations Legal position and how it can be influenced.
C2.6: Gather Transaction Volumes
C2.7: Gather Legal Information
C2.1 Gather FTE information

The total FTE for each function is gathered and broken down by process. This is not an activity based costing exercise at this stage but an initial estimate of the resource breakdown using Standardised Process Grouping Model usually provided by the line managers for their individual. This step is often completed by looking at the number of individual in each function and apportioning by %, the process area performed within the function. In addition, each functions FTE can be further defined by specifying: Contract / temp; Long term leave; Number of vacancies; and Part-time / full-time mix.
This additional information provides input to the data analysis as constraints to potential FTE change or redistribution.
C2.2 Gather Financial Information

The purpose of this data collection is to break down the budgets of each function listed within each Business Unit so that, for each function, a a realistic budget position for the current financial year can be defined. In addition to assessing normal financial reporting (budget reports, etc.) other approaches can be used to assess what is spent by the organisation. Usually, what is spent is allocated to an account code but using the Standardised Process Grouping Model provides an alternative way of looking at how money has been spent. A summary of non-employee costs and revenue by each function can also be captured. The income streams for each function can be broken down as well as the non-employee costs across the front line and support processes.
C2.3 Gather Application Information

The range of IT Applications used by each function is captured, cross-referenced to the Standardised Process Grouping Model which allows the organisation to determine if technology supports or hinders leading practice cross-cutting process areas. For each IT application, information should be provided on: Name; Purpose; Business Unit or Corporate; Business criticality; Planned date of replacement; and
127
transform*
Making change stick

Use in front line and support processes.
C2.4 Gather Current Project Information

To understand the current state of the organisations change projects, relevant information on existing and planned projects and known potential improvement opportunities is captured. This is aimed at providing an assessment of various key project related metrics and to identify any conflicting objectives or interests including: The resources currently allocated to projects within the organisation; and The maturity of the benefits culture within the organisation e.g., existing and measured business cases with accountability.
The information collected for each project typically includes: Function; Project / opportunity title, scope and rationale; Type of project/initiative (e.g., statement on the type of project / initiative e.g., efficiency or cost reduction, service improvement, income generating, statutory change); Project sponsor; Third party partner (if any); Estimated external costs; Projected financial benefits; Whether benefits are included in the current budget; Benefit type e.g., recurring or one off; Project start, end dates and% status complete; Priority (low, medium, high); Number of internal resources (i.e., outline the resource effort required for completion of the project in FTE's by grade or role); Which processes will be affected in both front line and strategic and support services; and Impact of project on technology.
C2.5 Gather Asset Information

This step should be completed where potential opportunities relating to asset management and the use of property and fleet may exist. Information gathered typically includes: Usage; Operating Costs; Ownership; Size and occupation information; and Valuation information.
C2.6 Gather Transaction Volumes

This step should be completed where benchmarking type activities form an integral part of data analysis. The collection of transaction volumes of, for example, different types of customer interaction, can help to build the case for common approaches to customer access. The data can also be used later in the programme as a baseline for estimating contact centre size before detailed transaction volumes are
128
transform*
Making change stick

collected. Figure provides an example list of data for procurement.
Volumes Number of Suppliers Number of Purchase Orders Number of Invoices Invoices per FTE Number of active Suppliers per service staff Spend Overall spend Spend by commodity and supplier Invoices/Supplier Cost per invoice Managed spend per supplier or per purchasing employee Average line item value
eProcurement Number of catalogues implemented Number of products / services available on catalogue % of transactions on eProcurment go through catalogues % advanced connectivity (EDI / cXML) % electronic invoices interfacing first time invoices passing 3 way match first time (2-way/3-way) Number of users on eProcurement Number supplier adopted Location of Suppliers
Figure ll: Example Procurement Volumetrics
C2.7 Gather Legal Information

The purpose of this data collection is to understand the Legal position of the firm, its impact on current practise and any likely impact on the project options potentially available. Information sources typically include: Contracts; Entity/Structure Analysis; and Due Diligence.

Outputs & Deliverables C2 - i: FTE Activity Information Document describing the current use of individual across the organisation by a Standardised Process Grouping Model and existing functional areas. Document outlining where and how money is currently spent within the organisation. Document outlining how IT currently supports the organisation mapped against a Standardised Process Grouping Model. Document outlining the current commitment of resources to projects and the maturity of the organisation in project and benefits management. Document outlining the assets that the organisation controls and how they are managed. Document outlining the high-level transaction volumes of the organisation and where within the organisation the transactions are handled. Document outlining the Legal position of the organisation, detailing
C2 - ii: Financial Information
C2 - iii: Application Information
C2 - iv: Project Information
C2 - v: Asset Information
C2 - vi: Transaction Metrics
C2 vii: Legal Information
129
transform*
Making change stick

Performance Improvement Consulting constraints and opportunities pertinent to project options available.
Benefits
Provides the basis for data analysis and helps to indentify areas where further investigation is needed.

The ability to collect data using a Standardised Process Grouping Model; and An understanding of the current state of the organisation by function through the data collection process.
130
transform*
Making change stick

C3
Review Existing Governance Structures
Purpose To review the existing governance structures and arrangements for the organisation or support function under review. Overview In this task, questions that should be considered include:

What are the existing corporate structures? What partnerships / joint ventures already exist? Are there dormant companies within the organisation? Are there inappropriate business structures? What funding structures exist for the organisation? To what extent are corporate / governance structures aligned? What governance failures exist within the organisation?
Interdependencies
Interdependencies C12: Leading Practice Gap Analysis and Benchmarking Existing governance structures and arrangements will be reviewed against best practice in C12.
Inputs
Inputs A5 - i: High-Level Review of Legal Structures & Taxation Issues Legal and taxation structures and issues should be included during the analysis of governance structures.
Task Description
Tasks C3.1: Analyse Existing Governance Structures C3.2: Analyse Existing Partnership Structures C3.3: Analyse Existing Funding Structures Analyse and document the existing governance structures. Analyse and document the existing partnership structures. Analyse and document the existing funding structures.
C3.1 Analyse Existing Governance Structures

Review the existing governance structures within the organisation. Document how the organisation and any subsidiaries are governed and how the relationships work. Document anomalies that are not in-line with good practice. Identify dormant parts of the organisations structure.
C3.2 Analyse Existing Partnership Structures

Review the existing partnership and joint venture arrangements within the organisation.
131
transform*
Making change stick

Identify the benefits for the organisation in the partnership arrangement. Document anomalies that are not in-line with good practice. Identify dormant partnerships or alliances that add little value to the organisation.
C3.3 Analyse Existing Funding Structures

Review the existing funding arrangements for the organisation. e.g., , in the public sector, identify what funding is from taxation, grants, capital receipts or income generated. Identify how funding is planned for and the relationship between funding and the vision and aspirations of the organisation. Document anomalies that are not in-line with good practice.

Outputs & Deliverables C3 - i: Current Governance Structures Document outlining arrangements. current governance structures and
C3 ii: Current Partnership Structures C3 iii: Current Funding Structures
Document outlining current partnership arrangements. Document outlining current funding, finance and Legal structures.
Benefits
A baseline is created which can be analysed against leading practice to identify gaps and opportunities.
How to complete a structured analysis of the governance structures of an organisation.
132
transform*
Making change stick

C4
Review Existing Operational Models and Organisational Structure
Purpose To review the existing organisational or support function operational models and establish direction on feasible models. (The content to the approach for reviewing and assessing the current organisational design is being developed) Overview In this task, questions that should be considered include:

Where is the current business model? What sourcing arrangements are in place? How / where are products / services manufactured / delivered? Does the organisation have a policy of make or buy? This should include consideration on whether various parts of the organisation should make or buy particular services or functions that it undertakes, a valuable check at this point is to identify if the organisation has defined its core competence. Are there existing outsourcing arrangements in place? Is the supply chain lean and cost / tax effective? Is the existing model failing in any way (e.g., suppliers not having contracts or too many suppliers to manage)?
Interdependencies
Interdependencies C12: Leading Practice Gap Analysis and Benchmarking The existing operational models will need to be understood to allow for analysis against leading practice and industry norms.
Inputs
Inputs A3 - i: Updated Transformation Principles (with Operational Location Options) A5 - i: High-Level Review of Legal Structures & Taxation Issues A6 - i: High Level Review of Supply Chain Issues and Direction A7 - i: High-Level Review of Sourcing Issues and Direction Feasible options for operational locations for further analysis.
Feasible options for organisation structures that are legal and tax efficient. Feasible supply chain options for further analysis.
Feasible options for sourcing for further analysis.
Task Description
Tasks C4.1: Review Operational Models C4.2: Review Sourcing Structures Review and document the current operational models. Review and document the current sourcing structures.
133
transform*
Making change stick

Performance Improvement Consulting Review and document the current supply chain structures. Review and document the current taxation structures. Review and document the current Legal structures,
C4.3: Review Supply Chain Structures C4.4: Review Taxation Structures C4.5: Review Legal Structures
C4.1 Review Operational Models

Review the current operational models, for example what corporate entities currently exist? How are they structured? Where are they located? Complete a high-level analysis against the transformation principles to indentify gaps for further analysis.
C4.2 Review Sourcing Structures

Review the current sourcing structure, for example where are services currently sourced? Has outsourcing been used? What are the organisations core competencies? Complete a high-level analysis against the transformation principles to indentify gaps for further analysis.
C4.3 Review Supply Chain Structures

Review the current supply chain structure, for example where are products / services manufactured / delivered? Is the supply chain lean and cost / tax effective? Complete a high-level analysis against the transformation principles to indentify gaps for further analysis.
The amount of data available in an exhaustive Supply chain review in an organisation of reasonable size can be overwhelming. Rather than asking an organisation for the entire product file upon which to conduct analysis, VCC focuses efforts on the exact pieces of data needed. For example, where attempting to discover the amount of overlap in products across four different brands, VCC can be used to assist in formulating the exact data request that should be used to achieve these objective by gaining the right data from the organisation not relying on the team to sift through complex data files.
C4.4 Review Taxation Structures

Review the current taxation structures, for example is the organisation structured to make the most of tax efficient mechanisms? For example in Government has charitable status for certain services been used? Complete a high-level analysis against the transformation principles to indentify gaps for further analysis.
C4.5 Review Legal Structures

Review the current Legal structures, for example is the organisation structured to make the most of / mitigate Legislation affecting it? Complete a high-level analysis against the transformation principles to identify gaps for further analysis. Outputs & Deliverables
Outputs & Deliverables C4 - i: Current Operational Models Documentation of the current operational understanding of gaps against the feasible options. models and
C4 ii: Current Sourcing Structures
Documentation of the current sourcing structures understanding of the gaps against feasible options.
and
134
transform*
Making change stick

Performance Improvement Consulting Documentation of the current supply chain structures and understanding of the gaps against feasible options. Documentation of the current taxation structures understanding of the gaps against feasible options. and
C4 iii: Current Supply Chain Structures
C4 iv: Current Taxation Structures
C4 v: Current Legal Structures
Documentation of the current legal structures and understanding of the gaps against feasible options
Benefits
Early direction on where existing models are providing value to the organisation and potential gaps against future feasible models of working.
How to review existing operational, sourcing, taxation and supply chain structures against transformation principles.
135
transform*
Making change stick

C5
Review Existing Physical Locations
Purpose To identify the existing physical locations of the organisation and related property data. Overview In this task, the organisations asset and facilities in all areas of operation are mapped to show the geographic deployment of assets, resources and activities. Interdependencies
Interdependencies C12: Leading Practice Gap Analysis and Benchmarking A gap analysis at a high level between current performance and leading practice.
Inputs
Inputs Facilities register / Asset register A database containing asset ownership data
Task Description
Tasks C5.1 Audit of existing facilities Collation of location and related property information for all of the organisations assets and facilities
C5.1 Audit of existing facilities

Complete an audit of the ownership and occupation of all domestic and international facilities. Each facility should be identifiable by a unique property reference number (UPRN). Against each UPRN, the location of the facility should be recorded including state, country and postcode. In a devolved organisation, this information may not be maintained centrally and an electronic data survey may be required. Apart from location, the following data should be captured at an early stage: Ownership details; Occupants (number/ function); Premises running costs (including rent and service charges); Condition; and Suitability (including location suitability).
All facilities need to be captured including international facilities. The data capture should also include specialist installations e.g., research laboratories, depots, telecommunication establishments, warehouses, individual accommodation, etc. The location of each facility should be displayed on a map. It is common to use computerised geographical information software.
136
transform*
Making change stick


Outputs & Deliverables C5 - i: Current Physical Location Map A map displaying the location and characteristics of all physical assets occupied or owned by the organisation across all geographies.
Benefits
An understanding of the location of all physical assets that are owned or occupied by the organisation; and A visual representation of the geography of the organisations operations.

Property audit; and The application of geographical information systems.
137
transform*
Making change stick

C6
Review Facilities Principles
Purpose To complete an initial analysis of the maturity of the facilities estate covering properties used in functions. Overview The review completed in this task addresses:
Property & FM Services
The organisation and activities that ensure that land and buildings support the organisations service requirements and objectives; and The assets that are provided to deliver financial, service and community benefit.
Land & Property Assets
This step usually includes a workshop with key members of the property team from across the organisation. Note that this does not include a detailed assessment of the fitness for purpose and sufficiency (or scope for rationalisation) of the facilities / portfolios.
Interdependencies
Interdependencies C2: Data Gathering The data gathered on the organisations assets during the data gathering phase is required to complete this task. The views of the customer in relation to the property and facilities management function as part of a voice of the customer exercise.
C7: Customer / Market Analysis
Inputs
Inputs C2 - v: Asset Information Documentation on the organisations asset portfolio.
Task Description
Tasks C6.1: Review Facilities Review facilities during a workshop identify opportunities to support transformation.
C6.1 Review Facilities

Review the key processes undertaken in relation to property services to determine the maturity of the organisation in this area as shown in Figure :
138
transform*
Making change stick

Operate Estate management Facilities management
Strategy Business-led Office portfolio strategy Workspace strategy Service asset plans
Deliver change Procurement Acquisition Capital works Disposal
Organisation & Management Arrangements Organisation design Governance Policies & procedures Capacity and capability Data, MIS and performance management
Figure mm: Asset Management Cycle
Planning to deliver Business case development Project Appraisal Risk Management plans Feasibility studies PPM arrangements Procurement plans
Run workshops to evaluate these processes against leading practice principles (Figure ) to identify opportunities for improvement in enabling the transformation.
Leading Practice Principles Property & FM Organisation
1. A recognition of the distinction between demand and supply 2. A centralised property & FM Organisation 3. An integrated, multi-disciplinary property & FM organisation 4. Performance Management System and KPIs 5. Corporate property data and management information system 6. Corporate governance and leadership 7. Use supply markets where they provide best value
Figure nn: Leading Practice Principles
Where necessary, a more detailed assessment of each process area can be undertaken based on assessment framework. Review the existing facilities portfolio strategy to identify gaps against leading practice. Review the facilities portfolios by: Office portfolio (both administrative and customer facing); Operational service portfolio (i.e., the facilities from which services are delivered, including indirect service facilities such as depots); and Non-operational portfolio (assets held for financial gain, economic development, place shaping or other strategic reasons).
139
transform*
Making change stick

The table below describes some leading practice questions that may be used.
Leading Practice Questions
1 Office space demand drivers Are there corporate space standards, including square metre per workstation and storage space? Is the overall net internal space per workstation approximately 10 square metres? Is there a non-territorial and non-hierarchical approach to property e.g., open plan layouts, multi-occupancy buildings, shared meeting rooms, minimal cellular offices? Is there desk sharing? Is flexible working encouraged? Are there opportunities to co-locate and consolidate customer access facilities? Has the gap between the organisations workspace needs and current supply been reviewed in the last 3 years?
2 Office Space unit cost drivers Are Facilities Management specifications challenged and reduced to minimum requirements e.g., number of times a week an office is cleaned? Are Facilities Management service costs benchmarked and challenged? Are activities moved to low cost locations, where appropriate?
3 Operational portfolio Is there regular review of future needs, current performance and options for each service portfolio Are income-generating opportunities regularly examined e.g., sub-let vacant space? Are service asset plans regularly reviewed centrally and cross-service (and partner) opportunities explored e.g., surplus space in one service area matched to demand in another; and improvement needs of different service areas are coordinated? Is there a focus on sharing buildings where possible between service areas and identifying opportunities for multi-service centres?
4 Non- Operational portfolio Is there a process for identifying surplus properties and are surplus properties quickly disposed of? Are the objectives for holding different types commercial property understood and ownership challenged? Is the commercial portfolio actively managed and is performance benchmarked e.g., voids minimised and commercial rents maximised? Are assets with development potential identified and private sector funding and expertise accessed to exploit financial and economic opportunities?

Outputs & Deliverables C6 - i: Current Facilities Portfolio Strategy Documentation of the main areas of the existing facilities portfolio strategy and gaps / opportunities for improvement.
140
transform*
Making change stick

Benefits
The review provides an understanding of the maturity of the property estate and supporting services.

The ability to self diagnose the property estate and services using a structured approach; and Techniques used to discuss property related issues with property individual.
141
transform*
Making change stick

C7
Customer / Market Analysis
Purpose To establish the current views of a range of stakeholders. Customers can be internal or external to the organisation. Various stakeholders are engaged and involved and, in addition to providing an opportunity to communicate about the project, it ensures that their views are understood and taken into consideration. Where appropriate conduct a market analysis. Overview In this task, the needs of the customers are analysed by completing a Voice of the Customer (VOTC) exercise and/or conducting market analysis. This is achieved by undertaking workshops, interviews or questionnaires based on a hypothesis about the key change drivers for the organisation. Interdependencies
Interdependencies A2: Customer Needs & Insights An initial view of potential needs and insight can help to shape the analysis.
Inputs
Inputs A2 - i: Updated Transformation Principles (with Customer Insight) The transformation principles with customer insight provide a basis for the VOTC exercise.
Task Description
Tasks C7.1: Customer Analysis C7.2: Market Analysis Completion of a Voice of the Customer exercise. Completion of a market analysis exercise.
C7.1 Customer Analysis

The full VOTC Methodology is outlined in Figure . The VOTC analysis is driven by the definition of a hypothesis against which customers are asked for their views.
1
IMPORTANCE
relatively unimportant 1 not meeting requirements
2 not of prime importance
3 important
4 important to improve our current position 4 current requirements fully met
5 a critical area that can give us real benefits 5 exceeds requirements
CURRENT PERFORMANCE
2 requirements recognised but not met
3 meeting requirements to some extent
Various techniques such as interviews, workshops and questionnaires can be used to collect the information the means of data collection is generally dictated by the culture of the organisation and its relationship with the customers.
142
transform*
Making change stick

This Voce of the Customer methodology is designed to provide external customer input on a specific subject by engaging with relevant stakeholders and customers.
1.Initiation
1.1 Background
The first task is to gather the background to the subject. This is generally achieved through consultation with the key individuals and is aimed at teasing out the discussion points including controversial or difficult issues for inclusion in the stakeholder consultation process.
2. Investigation
2.1 Workshops
The hypothesis is discussed in the workshop and the working groups agree a score together for each hypothesised point. Typically workshops will last 2-3 hours and provide a method for gathering the views of like groups of stakeholders. The normal ratio of facilitators to attendees is 1:8.
3. Information
3.1 Customer Analysis
Each hypothesis point is analysed from both a quantitative and qualitative perspective to provide an analysis of the responses. This can be done through reviewing the scoring and showing average and range. It is also useful to break it down by customer segment. The weighting of points in the hypothesis is also useful so that importance and response can be analysed.
1.2 Create Hypothesis

The hypothesis is created as a series of statements that will be covered during the investigation stage. These statements can be written in a positive (.always.) or negative (.never..) way depending on the subject to be investigated. Each statement is then scored (1 Strongly Disagree to 5 Strongly Agree) by the stakeholder involved in the consultation process
2.2 Interviews
The hypothesis is discussed with individuals on a 1:1 basis and a score provided for each point. Where relevant evidence should be gathered on the rationale used for providing the scores. Typically, an interview will last approximately 1 hour.
3.2 Reporting
A report is produced with the key findings of the analysis. This includes a quantitative analysis picking out the key findings and a qualitative analysis with what was said quotes (anonymised) and supporting evidence gathered during investigation.
1.3 Validate Hypothesis

The hypothesis is validated by testing it with the key individuals involved in the background task and refining any of the statements if required. The output from this is the hypothesis document for use with the wider stakeholder group.
2.3 Questionnaires
The hypothesis is issued to wide range individuals for completion in their own time. This method is used when you need a large sample of responses and the hypothesis points are straightforward and do not require detailed explanation.
3.3 Validations
A presentation and discussion with the key individuals is performed and the results explained. All data is handed over after being made anonymous.
Figure oo: Voice of the Customer Methodology 143 PricewaterhouseCoopers LLP
transform*
Making change stick

Typical topics for inclusion in the hypothesis include: Strategic Direction; Innovation; Management/Governance; Investment; People; Structures; Efficiency; Products and Services; and Processes.
On completion, the information can be analysed with typical outputs showing: Ratings on current performance picking up the areas where the biggest weaknesses exist; Ratings on the gap between current performance and importance to show potential areas for improvement; Ratings on what is important to the customers; and An analysis of the topics included within the hypothesis.
C7.2 Market Analysis

Where appropriate a market analysis should be completed. For example, the following areas should be investigated within the private sector: Where is the organisation positioned in its chosen markets? Is the competitive strategy one of cost leadership, product innovation or customer intimacy? Does the organisation lead or follow the market? What are the organisations core competencies? Where is growth coming from: acquisition, organic growth or new product innovation? and What are the big environment issues, such as industry trends, regulation and competition that the organisation is grappling with?
Within the public sector the following areas should be investigated: How does performance compare with other international examples? How do comparator organisations provide services? How does the organisation compare against published benchmarks? What does long-term demand for services look like? How will changing demographics affect the demand for services? and What are the current trends in the provision of services?

Outputs & Deliverables C7 - i: Customer Analysis Documentation of the customers view of the performance of the organisation. Documentation of an analysis of the market for the organisation.
C7 ii: Market Analysis
144
transform*
Making change stick

Benefits
Provides an understanding of the customers view of the performance of the organisation.
Knowledge Transferred to the Organisation Techniques to review the customers views on the organisations performance in key areas including, hypothesis. interview techniques, survey techniques, workshop techniques and analysis tools.
145
transform*
Making change stick

C8
Review Service Metrics / KPIs
Purpose To benchmark transactions volume data. Overview This data comparison can be used to determine if there are any opportunities that may be available from comparing the transaction related volume information with that of other leading practice organisations. Interdependencies
Interdependencies C2.6: Gather Transaction Volumes The transaction volume data needs to be collected for this task to be completed.
Inputs
Inputs C2 - vi: Transaction Metrics The service transaction data is required for the benchmarking analysis.
Task Description
Tasks C8.1: Transaction Comparisons Compare transactions against benchmark data.
C8.1 Transaction Comparisons

The comparisons made should be based on the available transaction related information from knowledge bases including Global Best Practice (www.globalbestpractice.com) and Saratoga as well as any sector specific benchmarking data that is available. Typical comparisons include: Individual ratios for delivering processes; Cost of individual for delivering the process; and Ratios of individual for process compared to the overall organisation. Use of Benchmark Data Caution should be used when presenting benchmarking information as it can be used to try and defend a current position and justify why differences exist within the benchmark group. Like for like comparisons and a detailed understanding should be used if undertaking this step.

Outputs & Deliverables C8 - i: Service Metrics An analysis of the transactions against benchmark data to identify opportunities.
Benefits Provides an understanding of the organisations performance against other peer and leading practice organisations.
146
transform*
Making change stick

Knowledge Transferred to the Organisation How to analyse standard performance metrics and their use as targets for the organisation.
147
transform*
Making change stick

C9
Review Organisation Policy and Standards
Purpose To review the current organisation from a statutory perspective looking at HR policies and performance management approach. Overview The task is used to identify any constraints in the issues relevant to any people change related activities as the transformation proceeds. Assuming that people are affected then the approach to this can be determined including, for example, the approach to initial consultations with trade unions about the transformation objectives. Understanding the current HR policies and approach to performance management will also be important from a sustainability perspective. If they are not aligned with, and supportive of the required organisational culture this will send mixed messages and potentially diminish the effectiveness of the transformation as well as impact adversely on benefits realisation. Interdependencies
Interdependencies C12: Leading Practice Gap Analysis A clear view of any constraints to the opportunities identified during the phase is required during the gap analysis task. This includes policy and standards.
Inputs
Inputs Existing HR Policies and Procedures A key input is to understand the existing HR policies and performance management approach and if there is any precedent set with regard to the movement of individual and agreements with trade unions, etc. Existing Legal requirements for the organisation for example financial reporting standards, health and safety. etc.
Legal Requirements
Task Description
Tasks C9.1: Key HR Policies Review of existing HR policies to understand any impact upon the transformation programme. Review existing performance management culture to understand if it supports the transformation programme. Review the Legal environment that the organisation sits within to ensure that the requirements are taken into account for any changed organisation.
C9.2: Performance Management Culture
C9.3.: Legal Requirements
C9.1 Key HR Policies

This step will review critical HR related policies addressing areas such as: Employment Policies (both contractual and non-contractual) Employee Relations Policies Health and Safety policy
148
transform*
Making change stick

Redundancy Policy; Trade Union Policy; Secondment Policy; and Policies related to pensions, payment and length of service.
It is essential to understand the existing HR policies and any precedents that may have been set in past changes to the organisation that may have an impact on expectations of individual and trade unions. The information collected can also be used during later stages of the transformation programme to form an approach to dealing with the HR related interventions.
C9.2 Performance Management Culture

Review the maturity of the performance management culture of the organisation. This is useful in terms of being able to judge the incentivisation techniques available to the organisation for the individual involved in the transformation programme. Utilising a performance management culture will affect individual behaviour and can be used to speed up the rate of change.
C9.3 Legal Requirements

It is important to review the statutory requirements that will impact upon how the organisation does business. These will impact upon the design of the organisation later in the transformation process and can also impact upon the opportunities for change i.e., is the opportunity within the bounds of the legal constraints of the country that the organisation is operating within. Typical Legal requirements include: Financial and Legal reporting; Governance; Services to be provided (relates to public sector organisations where there is a legal duty to provide specific services); Health and Safety arrangements; Specific Country or Territory laws; and Regulatory Compliance.

Outputs & Deliverables C9 - i: Key HR Policies C9 - ii: Performance Management Culture Documentation of relevant HR policies. Documentation of performance management culture and levers for change. Documentation of relevant Statutory Requirements.
C9 iii: Statutory Requirements
Benefits
Provides understanding of potential constraints and techniques applied to the transformation approach.

Techniques used by others to approach the HR related issues with transformation. Options for dealing with the people elements of transformation.
149
transform*
Making change stick

Role of HR policies and performance practices as enablers in making change stick.
150
transform*
Making change stick

C10 Review IT Principles

Purpose To analyse the maturity of certain aspects of the IT environment. Overview Technology is a key enabler of a transformation programme and it important to determine whether the current IT environment is a blocker or an enabler of change. To do this two of the ten levers that make up the IT Strategic Framework (Figure ) are investigated.
What are the most effective delivery vehicles for ICT services? Are alliances being exploited?
11
Alliances and Alliances and Sourcing Sourcing
Business Strategy & Regulatory Environment
Strategic Strategic Differentiation Differentiation
66 Where are the priorities for ICT

development ? Where should ICT investment be focussed?
What structure should the ICT function adopt? Who should lead on key responsibility areas?
22
Organisational Organisational Design Design
Business Alignment & Drivers
77
Governance & Governance & Prioritisation Prioritisation
How will initiatives be prioritised ? How will business and ICT decision making take place?
What competencies should the ICT function invest in developing? How will we develop our talent?
33
Delivery Delivery Capability Capability
Strategic Management Levers of IT
88
Project Portfolio Project Portfolio
What projects need to happen to deliver the strategy? Is it a balanced portfolio?
What investment is required to deliver the strategy? What will be the business benefits?
44
Investment Investment Planning Planning
99 Business Services
Performance Performance Measures Measures
How will ICT service performance be measured? How does it compare to Peers?
What is the architecture model that will connect the systems, services and business to a common set of objectives ?
55
Architecture Architecture Landscape Landscape Provision of Customer Services Delivery Delivery Routemap Routemap
10 10
What sequence and stages of activity need to take place to deliver the strategy? Does it cover more than just technology?
Figure pp: IT Strategic Framework
The two areas are:
Architecture Landscape - This is reviewed primarily to create a baseline for IT to progress the transformation. The purpose of reviewing the architecture landscape is to determine where technology will enable the business changes or where it may be a constraint; and Strategic Differentiation - This is used to determine positioning and plans for the application areas within the architecture and show areas where future development may be required to take a more strategic approach to enable the benefits of the investment to be maximised.
These areas are evaluated using the principles for leading practice technology delivery outlined in Figure .
151
transform*
Making change stick

1. Functionality
8. Complexity of Change How difficult is it to change
Adaptable to Business Needs
2. Scalability Able to achieve economies of scale
7. Technology Need to Change Able to achieve technology compliance
3. Maintainability
ICT Architecture ICT Architecture Design Design Principles Principles
Stable, reliable and upgradable
Focussing on customer needs 6. Business Requirement for Change Value of ICT is realised
Integrates within the Business & between Partners 4. Interoperability
5. Affordability
Figure qq: ICT Architecture Design Principles
This assessment can also be used to gain agreement/alignment regarding what is strategic, what is support and where the main gaps are that need to be addressed (Figure )
Strategic (Key drivers)

Importance to the Council Importance to the Council
Strategic Differentiation
To Be
Core (Relative
Importance)
Support
(Operational efficiency
As Is
Relative Position Relative Position
Capability Position/ Perception
Weaker
(Needs Catching Up)
Equal
(As Good As Most)
Stronger
(Best-In-Class)
Figure rr: ICT Strategic Assessment
Positioning allows assessment of:

Which are the strategic areas for differentiation i.e., where is priority investment needed for improvement; What is the scale of the gap to be addressed; and What tactical (core or support) systems need to be developed;
152
transform*
Making change stick

Interdependencies
Interdependencies C2: Data Gathering The data collected on IT applications and planned projects during data gathering is an important input to understanding how the IT Architecture currently and is planned to, support the business.
Inputs
Inputs C2 - iii: Application Information IT Applications analysed by Standardised Process Grouping Model helps to provide a view on where there may be gaps in IT. The current portfolio of projects within the organisation will have an impact upon the planned IT Architecture.
Task Description
Tasks C10.1: Review IT Architecture Review Business Unit Applications and underlying IT Architecture to identify opportunities for improvement.
C10.1

Review IT Architecture
Business Unit Applications Review - where each Business Unit discusses their views of the main applications used as identified by the application data gathering activities; and IT Architecture Review where the IT department, through discussion, undertake a self assessment of the IT infrastructure.
The IT Architecture is reviewed by completing two types of activity undertaken:
This review is completed using an IT architecture model such as the one in Figure , and by rating each of the components using a RAG status. This architecture framework, broken down into the following areas: Channels mechanisms used internally and externally, used to access Services; Service applications core applications that deliver the business functionality; Shared applications common corporate applications, such as Financials and HR; Application support tools common tools used in the support of the applications e.g., Knowledge, Information Viewing (i.e., GIS) and Management Information Decision Tools; Common infrastructure services Common infrastructure used by all applications e.g., Security, Application Integration, Workflow; and Infrastructure the hardware and IT management platform on which the applications reside e.g., Servers, Networks, PCs.
153
transform*
Making change stick

Citizens and customers
In person
Post
Telephone
Fax
E-mail
E-forms
Website
Other
Digital TV
Contact channels Service application areas

Adult Services Childrens Services Clerk to the Council / Legal Finance SP&E
Carefirst/Comcare2
Housing
Carefirst/UMIS/YOIS
PE&D
Electoral role /Legal

PD&D
Property, Revs & Bens, Insurance, Pensions

TI&W
Accolaid / Others
Culture, Leisure & Parks
iWorld , Flare
eConsult, ACT
Profess
Mayrise / Others
Unicorn/Leisureflex/ Commidea/Bookings/ BACAS
Shared Applications
Finance Human resources Other Assets Procurement CRM Land & Property Universal Customer Performance Management
SAP
SAP
Enterprise resource planning
SAP
In House
Does not exist

Document Management
Ffynnon +Others
Application support tools

Management Information Knowledge sharing DIP
GIS
Graphics
E-Mail
Crystal Reports, Business Objects
Does not exist
Comino
Intranet
MapInfo, CMaps
Various incl AutoCAD
Outlook, Webmail
Common infrastructure services

Firewall Content management Directories Application integration Office systems Workflow Help Desk
Bluecoat
Anti Virus / Spy
COMS - CMS
Intruder Detection
Active Directory
Remote Access
Point to point only
MS Office
Comino
In house Quetzal
ICT Asset Mgmt
Sign On / Identity
Software Distribution
Norton, F1 Secure, iCritical
Remote Control
No software Annual Audit
Token
Some Apps linked not SAP
From centre
Remote Desk Top
In house Quetzal
Infrastructure
Recognition devices
Smartcards
Wyse, Citrix, PCS, Laptops, PDAs, Blackberries
User devices
HP/Compaq Win2003, Exchange Sun - Unix
Platforms
Terminal Services
Data / Voice Networks
Citrix, Windows Terminal Server
Oracle, Ingress, SQL Server
Databases
Figure ss: Architecture Framework for IT Review
Typical areas for the scoring using the design principle are outlined in Figure ;
154
transform*
Making change stick

1. Functionality 1. Functionality
8. Complexity of Change 8. Complexity of Change

What risks are associated with any What risks are associated with any change? change? What elements of architecture layers are What elements of architecture layers are effected? effected? How many customers are impacted? How many customers are impacted?
Ease of Use Ease of Use Fit for purpose Fit for purpose Ease of future development Ease of future development
2. Scalability 2. Scalability
Ease of Component Configurability Ease of Component Configurability Ease of growth and re-use Ease of growth and re-use Ease of consolidation Ease of consolidation
7. Technology Need to Change 7. Technology Need to Change

Technology driven change operating Technology driven change operating platform, database, integration platform, database, integration capability, future planning capability, future planning Strategic technology direction Strategic technology direction
3. Maintainability 3. Maintainability
ICT Architecture ICT Architecture Design Design Principles Principles
Ease of control and measurement Ease of control and measurement Ease of support/sustainability Ease of support/sustainability Ease of availability/Reliability Ease of availability/Reliability
6. Business Requirement for 6. Business Requirement for Change Change

The business view of the current The business view of the current application // infrastructure estate application infrastructure estate The appetite & requirement to replace it The appetite & requirement to replace it The importance of the system in supporting The importance of the system in supporting service delivery service delivery
A
5. Affordability 5. Affordability
Lower procurement costs Lower procurement costs Lower incremental development costs Lower incremental development costs Lower overall lifecycle costs Lower overall lifecycle costs
4. Interoperability 4. Interoperability
Open and published interfaces Open and published interfaces Conforms to standards Conforms to standards Integrates with existing investments Integrates with existing investments
Figure tt: Scoring using Design Principles
These are analysed using the rules outlined in
Figure :
The component fully meets the design principle criteria The component meets the criteria in all except minor issues The design principle is partially met (or was not explored fully) for the component The component does not satisfy the design principle criteria The component creates a negative affect on the design principle
155
transform*
Making change stick

Performance Improvement Consulting Figure uu: RAG Analysis

Outputs & Deliverables C10 - i: Current ICT Architecture Documentation opportunities. of the IT Review, highlighting gaps and
C10 - ii: Current ICT Planned Changes
Analysis of the current planned ICT changes to support a better understanding during programme planning if they should be continued, put on hold or abandoned.
Benefits
The review provides an understanding of the basis for the maturity of the IT Architecture.

The ability to self diagnose the IT Architecture using a structured approach; Techniques used to discuss IT related issues with both users and IT individual; and Visibility of their existing IT application and infrastructure architecture.
156
transform*
Making change stick

C11 Data Review

Purpose To provide an initial analysis of the quality and completeness of the existing data within the organisation.
Overview Providing the right data at the right time to users is a critical function within any organisation. In a transformation programme, the organisations data typically needs to be redesigned and migrated to support revised business processes and IT applications. A key success factor of the transformation will very often be to extent that data issues are resolved and the organisations KPIs are delivered in a timely, accurate manner. To analyse the current data provision and architecture to plan for the new data delivery model while addressing commonly encountered data issues such as:

Lack of clear ownership of data multiple versions of the truth; Poor quality or inaccurate data which may lead to operational errors and sub-optimal decision making; Inability to retrieve data in a timely manner; Poor data security; Inability to establish a reliable baseline against which progress and benefits can be measured; and Non-compliance with legislation such as the Data Protection Act or data retention requirements.
The following main areas of investigation may be included in a Data Review:

Levels of inconsistency between systems; Extent of poor quality data within systems; Potential business impacts and costs of poor quality data; Data improvement requirements; and Changes to processes, controls and responsibilities required to maintain quality.
The initial data analysis should provide an indication of:

What cleansing of existing data will be required? What existing data needs to be migrated to new systems and processes? and What new data / KPIs must be delivered?
157
transform*
Making change stick

Interdependencies
Interdependencies C2: Data Gathering The baseline information collected on data and planned projects is an important input to understanding how the Data Architecture currently and is planned to, support the business.
Inputs
Inputs C2 - iii: Data Information As-Is data analysed according to the investigation areas listed above helps to provide a view on where there may be issues or gaps in data. The current portfolio of projects within the organisation will have an impact upon the planned Data Architecture. A review of potential high level legal and taxation issues and structures aligned to the operational location models.
A5 - i: High-Level Review of Legal Structures & Taxation Issues
Task Description
Tasks C11.1: Data Review Review Business Unit data (processes and systems) to identify opportunities for improvement.
C11.1
Data Review
In reviewing the current data architecture, the data landscape can be segmented as shown in Figure ,
Binding agreements entered into on the methods of working
the way we like to work British Standards Accreditation BS5750, IS9000
Business Regulated critical information information Data used externally Data affecting lives
Approved business supplier/partner e.g. government contracts
the imposed ways to work

Figure vv: Data segmentation framework
Migration approach and deliverables evidence needs to retained for inspection
Within each segment, look at various levels of data as shown in Figure .
158
transform*
Making change stick

Source System(s) SCOPE THE SYSTEMS Source Entities HIGH LEVEL DATA MOVES Source Fields LOW LEVEL DATA MOVES Source Values TRANSFORM RULES Source Gaps
Target System
Target Entities
Target Fields
Target Values
Target Gaps
Figure ww: Data improvement analysis levels

Outputs & Deliverables C11 - i: Current Data Architecture Documentation of the data review, highlighting gaps and opportunities. Analysis of the current planned data changes to support a better understanding during programme planning of whether they should be continued, put on hold or abandoned.
C11- ii: Current Data Planned Changes
Benefits
The review provides an understanding of key data issues and a baseline for planning data improvements and migration.

An understanding of their current data landscape and any key issues with the data; An initial assessment of data improvement requirements; and An understanding of the potential impacts of data deficiencies on benefits realisation.
159
transform*
Making change stick

C12 Leading Practice Gap Analysis

Purpose To provide the basis for opportunity identification by completing a high level gap analysis between current performance and leading practice. Overview The steps in this task are used to determine the current levels of performance for business process areas within the Standardised Process Grouping Model. A gap analysis is undertaken to support the identification of opportunities, as well as other techniques such as Service Challenge, Process Challenge and high-level Activity Based Costing. The gap analysis is approached from two perspectives; by process and across service. Looking at organisation processes may identify opportunities specific to that service while analysis across services may identify common activities and opportunities to increase standardisation and shared ways of working. An initial analysis is undertaken by comparing current performance with leading practice and benchmarks to identify the gap between current operations and target performance. If appropriate, also use additional sources including Global Best Practices (www.globalbestpractice.com), Saratoga and leading practice and benchmark information gathered through other transformation work. The output from this activity is a comparison of the organisation against the leading practice. The gap analysis task is completed using a workshop approach, engaging stakeholders from across the organisation to review the findings from an initial gap analysis undertaken by the project team and the supporting leading practices and benchmark data. Involving stakeholders in this way will not only validate the gap analysis but also help to make change stick by raising their awareness and gaining their commitment to the transformation programme, The gap analysis utilises a scoring mechanism across each area to assess the organisation against leading practice principles on a scale range of 1 to 5. The gaps are presented in a report for each service area and form the basis for identifying priorities for improvement in addition to areas of good practice within the organisation that could be replicated elsewhere. An example scoring range from 5 to 1 is outlined in Figure : Global Best Practices - Performance Measures Global Best Practices (www.globalbestpractices.com) contains suggested performance measures for a number of business processes which can be used as a starting point for assessing the strengths or weaknesses of an organisations current performance measurement set. Suggested measures are linked to key objectives of the process and include outcome measures and activity measures. The instructions for each quantitative benchmarking tool also list the key performance measures that are used to benchmark an organisations performance in each process. Performance measures and quantitative tools for a particular process can be accessed by logging into www.globalbestpractices.com (with GUID and password) and choosing: Process frameworks -> Process Classification Framework then choose a specific process and select Benchmarking; or Process frameworks -> Business Analysis Framework then choose a specific process and select Benchmarking.
160
transform*
Making change stick

5. 4. 3. 2. 1.
Th e org anisati on al ready em pl oys Leadin g P ractice, in the m ajo rity o f cases, fro m which oth ers coul d learn / share
E lem ents o f service deli very represent Leadin g P ractice; a few areas of effici ency i m provem ent are sti ll po ssibl e. O r, l p lans in pl ace to im plem ent L eadin g P ractice an d d evel opm ent underway S om e areas of go od practice wi th a sig nifi can t num ber o f areas where effici ency i m provem ents coul d be i m plem ented
M ajo rity of processes revi ewed co uld be mad e m ore effici ent over tim e
Con siderab le effici ency i m provem ent po ssi bl e

Figure xx: Leading Practice Gap Analysis Scoring
Interdependencies
Interdependencies C2: Data Gathering To undertake the gap analysis activities the baseline data will need to have been collected and agreed.
Inputs
Inputs C2 - i: FTE Activity Information Data on where effort is currently expended within the organisation by process area is used during the analysis of opportunities and also can be used as part of Activity Based Costing. Information on where money is spent can be benchmarked against leading practice but it also needs to be cross-referenced with activity information in Activity Based Costing. Used in the gap analysis of IT to understand the enabling IT opportunities that will need to be undertaken. Not all opportunities within the transformation programme will be new to the organisation and may already be existing projects it is important that these are included in a long-list of opportunities. Some of the opportunities for improvement may involve the consolidation of assets - an understanding of the existing asset base will be required. Benchmarking against transaction metrics for some process areas can support the identification of improvement opportunities.
C2 - ii: Financial Information
C2 - iii: Application Information
C2 - v: Asset Information
C2 - vi: Transaction Metrics
161
transform*
Making change stick

Task Description
Tasks C12.1: Agree Leading Practice Principles Agreement and documentation of Leading practice principles mapped against the Standardised Process Grouping Model. Agree the structure of the opportunity log for use during this task and later phases. Analysis of data and workshops to identify Business Unit opportunities. Analysis of data opportunities. and workshops to identify cross-cutting
C12.2: Agree Opportunity Log
C12.3: Business Unit Workshops
C12.4: Cross-Cutting Workshops
C12.5: Service Challenge
Challenge of services provided by the organisation using Subject Matter Expertise. Review of large-scale processes. Analysis of the cost of completing activities.
C12.6: Process Review C12.7: Activity Based Costing
C12.1
Agree Leading Practice Principles
In line with the Standardised Process Grouping Model in use, determine and agree a set of leading practice principles should be defined to support the gap analysis activity. Sources of this information include: Leading practice knowledge sources including: o o o Global Best Practice; Saratoga; and Gateway.
Knowledge of involved consultants and other known subject matter experts; and Other external knowledge.
An example set of leading practice principles for customer contact is shown at Figure :
162
transform*
Making change stick

Figure yy: Example Leading Practice Customer Principles
C12.2

Agree Opportunity Log
As the data and gap analysis are performed, opportunities will arise and these should be logged in a standard opportunity template. Typically this should include: A unique reference number; A description; A rationale for the opportunity; An owner (and sponsor); A mechanism for identifying high-level benefits and costs; A mechanism for scoring / weighting (see Section D1); and A mechanism to support programme planning (i.e., release, start and end date, programme grouping).
Not all of the sections within the opportunity log should be completed at this point for each opportunity. However it should be seen as the master repository for development and prioritisation of opportunities during Phase D.
C12.3
Business Unit Workshops
Run business unit workshops to analyse the data that has been collected on FTEs, Financials and IT using the Standardised Process Grouping Model to verify which services fit where in the structure of organisation. This allows reporting of information at each level of detail for use in meetings and workshops when discussing opportunities. The data analysis also helps to identify the priority areas to redesign and standardise or share within and across the organisation. Typical questions to be addressed in this activity include: Are there common generic activities and processes? Is there duplication?
163
transform*
Making change stick

Are there areas of overlap? Are there common job activities? Where are there hand-off points? Are there points of poor integration? and Are there scenarios for sharing services across the organisation or other partners?
The detail of the data analysis focuses on the principal areas of organisational structures, opportunities and ICT applications. The data analysis outputs identify potential improvement candidates for further exploration as part of Phase D. Ultimately these feed into a portfolio of improvement initiatives which includes a mix of quick wins that can deliver benefits in the short term as well as longer term changes such as: Structure Analysis: identifying resource synergies, common areas of working, scale of resource allocation to working groups; and Service Improvement of customer interactions (and often efficiency as well) can be achieved by organising a delivery structure around both processes and common customer segments. Most organisations processes have historically been designed or evolved, in functional silos to cater for all eventualities in response to a small minority of customers those that often have the most frequent and complex interactions with the organisation. This can be conceptualised as 20% of users requiring 80% of the organisations time and resources to serve their needs. Typically, this variation in demand has not been taken into account when the organisation structure was designed. The objective of the data analysis within this task is to identify opportunities within the current structure arrangements for potential new ways of working to drive efficiency and increased effectiveness.
The workshops are aimed at bringing together the key stakeholders from a particular business unit to review the data that has been gathered and to identify opportunities for change. Typically the materials used within the workshop summarises the organisation by the Standardised Process Grouping Model showing the FTEs and spend for each as shown in Figure :
Front Line Operation Enquiry Handling Processing Requests & Applications Appointment Taking and Booking Eligibility Assessment Approval of Service Service Delivery Management & Supervision
17.5 22,000
Workforce Planning
5.7 17,000
Workforce Scheduling
2.75 10,000
General Administration
3.5 8,000
Recording & Data Entry
4.3 8,000
Billing & Receiving Payments
2 0
Close Record
842 8.306M
18.5 7,000
11.75 3,000
10.4 3,000
31.5 57,000
23.3 36,000
3.2 3,000
1.6 1,000
Procurement & Commissioning
Managing Contracts
ICT
Strategic & Support Services Marketing, PR & HR Communications
Legal
Workforce Planning
20.3 6,000
Financial Management
2.8 3,000
Health & Safety
1.6 13,000
Stores & Distribution
3.7 23,000
Fleet & Plant Management
4 2,000
Payroll Services
1.4 1,000
Supporting the Democratic Core
2.8 2,000
Master Data Mgt
2.1 2,000
Management & Supervision
4.8 8,000
1.9 1,000
Property Estate & Facilities Services
4.5 1,000
Strategy & Policy
1.4 0
Research and Consultation
2.8 3,000
QA, Performance Management & Improvement
2.5 6,000
Business Information & Reporting
1 0
10 7,000
4.9 184,000
210.5 233,000
4.4 8,000
3 3,000
2.9 2,000
4.4 5,000
Figure zz: Example Summary of an organisation by leading practice model
Using the FTE data an examination of the fragmentation of the function can be examined.
164
transform*
Making change stick

Service
Regulatory Services Regulatory Services Regulatory Services Regulatory Services Regulatory Services Regulatory Services Amenity Services Amenity Services Amenity Services Consumer Protection Environmental Protection Pest Control Dog Warden Trading Standards Sustainable Communities Refuse Collection Refuse Disposal CA Sites
Number of Resources 19.9 18.4 2.0 1.0 13.7 4.5 120.0 5.0 26.0
Number of Processes 32.0 29.0 18.0 18.0 28.0 8.0 7.0 14.0 9.0
The example analysis shows the highlighted functions within the business unit that have resources with more than 15 process areas (in this example model there are 36 processes in total as above). The question that should be asked of the function management is: Are many non-core processes being performed and could resources be deployed differently across the business unit or organisation in a way that makes the function more efficient or effective.
Duplication can also be checked by, looking at the process and determining how many functions are performing this process. If more than one function is performing the process, then how many different ways of achieving this process exist within the business unit (this analysis is also be done for the entire organisation in the cross cutting workshops).
Front Line Operation Enquiry Handling Processing Requests & Applications Appointment Taking and Booking Eligibility Assessment Approval of Service Service Delivery Management & Supervision
51% 17.5
Workforce Planning
41% 5.7
32% 2.75
22% 3.5
Recording & Data Entry
32% 4.3
Billing & Receiving Payments
27% 2
Close Record
73% 842
54% 18.5
46% 11.75
49% 10.4
57% 31.5
49% 23.3
27% 3.2
27% 1.6
Procurement & Commissioning
Managing Contracts
ICT
Strategic & Support Services Marketing, PR & HR Communications
Legal
Workforce Planning
49% 20.3
Financial Management
27% 2.8
Health & Safety
19% 1.6
Stores & Distribution
35% 3.7
Fleet & Plant Management
38% 4
Payroll Services
22% 1.4
Supporting the Democratic Core
35% 2.8
Master Data Mgt
32% 2.1
Management & Supervision
27% 4.8
19% 1.9
Property Estate & Facilities Services
19% 4.5
14% 1.4
Research and Consultation
19% 2.8
QA, Performance Management & Improvement
19% 2.5
Business Information & Reporting
11% 1
41% 10
Strategy & Policy
35% 4.9
5% 210.5
35% 4.4
35% 3
30% 2.9
41% 4.4
Figure aaa: Example Areas for Investigation
Figure highlights example areas for investigation. In the example, process areas are highlighted where more than 30% of the functional areas perform the process and more than 10 FTEs are involved in the business unit. The green circles are where exceeding the parameters would be expected whereas the orange circles warrant discussion or investigation during the workshop. In a similar fashion the Financial Analysis, IT Applications Analysis and Projects Analysis can be performed to promote discussion during the workshop. IT applications data returns are reviewed by process, service and maturity to look at: Constraints and enablers for potential opportunities; Common systems and information management repositories; and Duplication or obsolete applications when referenced against core business processes.
165
transform*
Making change stick

The analysis of data for the IT environment typically helps to identify issues such as unused, obsolete, redundant, incompatible or inappropriate technologies: A redundant technology is one where more than one technology is being used to complete the same task; Incompatible technologies are those which are proprietary to the exclusion of others; In addition the analysis looks to identify any applications within the applications inventory that are not used by any part of the business processes.
As part of the assessment of the IT environment, it can be useful to draw an age graph (Figure ) of the profile of existing systems. This assists in portraying the nature of the existing systems portfolio and the "aging analysis" may be used on a summary basis (e.g., summary of age of all lines of computer code) or for each organisation language, application, hardware platform or other items in the IT environment. The results of aging analysis may reveal sources of existing IT problems (such as maintenance and reliability problems) and provide insights for developing IT strategies. Aging analysis may have significant IT strategy implications such as: The current applications to be retained, enhanced or replaced in the target environment; The hardware components to be retained, upgraded or replaced in the target environment; and The migration strategy from the current to the target environments.
Figure bbb: Example IT Application Age Graph
It is important that within the business unit workshop any opportunities through discussion are logged in the opportunity template. At this stage nothing should be disregarded and participants in the workshop should be encouraged to think creatively.
C12.4
Cross Cutting Workshops

Reviewing the data as in the business unit workshops. e.g., for common processes from the Standardised Process Grouping Model across the entire organisation and considering ways of delivering these process areas; and Performing the leading practice gap analysis allowing participating business units to rate themselves against leading practice.
Cross cutting workshops look at opportunities that affect the entire organisation. This is done by:
166
transform*
Making change stick

These can then be consolidated to provide an overall score for the organisation. An example of the output from this is shown at Figure portraying two scores a target score and an actual score. This allows validation of current performance, target performance, gap from actual to target, gap from actual to leading and gap from target to leading (which can be used to check the scale of ambition). With the cross cutting themes and any opportunities that are generated a cross cutting owner and sponsor should be identified to lead opportunity development on an organisation-wide basis.
Customer Contact Gap Analysis
1. Access to Service 5.00 11. Customer Satisfaction 4.50 4.00 3.50 3.00 2.50 10. Measure Performance 2.00 1.50 1.00 0.50 0.00 9. Change Appointments 4. Measure Performance 3. Hand over contact 2. Handle Enquiry
8. Set-up Appointments
5. Submit Application
7. Measure Performance
6. Handle Request
Figure ccc: Example Cross-Cutting Gap Analysis
C12.5
Service Challenge
A services challenge is where experts in particular services review performance and cost data and interview key stakeholders, with the aim of identifying opportunities for cost or revenue improvements. Elements of service challenge can be conducted as part of the Business Unit Workshops, if necessary. The first part of the approach to service challenge identifies how the indivdual services are performing by challenging against two key success factors - i.e., service delivery and value to the organisation of that service (Figure ). Typically a range of information is required to support the assessment including: costing data, surveys, performance indicators, improvements made recently, resources utilised and benchmark information, etc.
167
transform*
Making change stick

Figure ddd: Service Challenge Approach
The analysis results in identifying services which are: Low value, poor delivery should the organisation be doing them at all? If so what is the action to improve not high priority, limited investment; High value, poor delivery focus on improving the service through efficiencies and service improvement. Possible alternative service delivery. Good market potential, good investment area; Low value, strong delivery can the value be increased? If not assess the level of resource being used with a view to moving resources away. Focus area for removing investment; and High value, strong delivery - maintain current levels. More a monitoring role but potential risk of over performance. Demand satisfied and not a focus for investment.
A simple scoring mechanism for each of the criteria (shown on the axis in Figure ) results in an overall positioning, which is then mapped against the two axes of Value and Delivery.
168
transform*
Making change stick

Figure eee: Example Service Scoring
The next phase of the approach is for the selected individual services to identify efficiency and / or Revenue Income Opportunities and / or changes in service delivery methods. This can be achieved by completing: A Scoping study to understand the context of the review based on establishing demand for the function, a detailed quantitative assessment of current activity is compiled as a baseline against which options for change are tested and a vision or blue print is defined which captures what a successful outcome would look like for the function, for the organisation and stakeholders to ensure that any efficiencies proposed do not impact on this vision; and Analysis analysis of data, applying success criteria identified from the scoping exercise to generate ideas for reducing cost, generating revenue or improving efficiency. This should include using ideas harvested from key function personnel and by applying best practice approaches. Ideas are tested against success criteria and cost and activity analysis to produce a portfolio of ideas prioritised on the basis of impact and ability to be realised in the short to medium term.
An example of the output from this activity is set out at Figure :
169
transform*
Making change stick

Figure fff: Analysis of Opportunities
Theses activities should be completed during both Phases C and D and the outcome for the organisation would occur later in the programme, for example quick win opportunities that would be undertaken alongside detailed design in Stage 2: Design.
C12.6
Process Review
Process review is where current processes are reviewed to find either redundant work or reduce the number of hand-offs. At this stage of the programme, the focus is on identifying how inefficient a process is, in subsequent stages the focus shifts to process design. Most organisations do not assess business processes on a regular basis and the opportunity to examine a process as a whole may highlight longstanding problems or issues such as bottlenecks, redundancies or unnecessary activities that have gone unrecognised. Identification of these issues should ensure that they are avoided in any new process design. As existing processes are used as a baseline for comparisons with any new or amended processes, the existing processes may need to be measured to determine the current level of performance and to derive the criteria that will be employed in any new or amended processes. Current process analysis should also include assessments of the information technology and organisational approaches which form part of the process execution. Assessments of the existing IT architecture may include existing applications, databases, technologies and standards. Assessment of the organisational aspects may include current job descriptions, skills inventory and any recent organisational changes. One area that is often not fully considered in process analysis is the adequacy or efficiency of the supporting infrastructure. Assessment of the facilities area has been included as a separate task within this Phase as, depending on the specific engagement, it may have particular significance such as in the case of the construction of a new call centre distribution system or a shared service centre. Process review is not always necessary at this stage in the programme as high level process area analysis is undertaken as part of the Standardised Process Grouping Model. Discussion with the organisation should identify if this is necessary.
C12.7
Activity Based Costing
Activity Based Costing is where a financial analysis of the costs of providing a service is mapped against the activities performed. This is similar to activity analysis but rather then just capturing individual information, other costs are captured e.g., procured goods or services, team overheads including property and IT, grants and corporate overheads. The aim of activity based costing is to understand where costs are spent and ensure the focus is on spending on value-adding activities and is providing good service. At this stage in the programme Activity Based Costing is typically only completed where a specific need is identified.
170
transform*
Making change stick


Outputs & Deliverables C12.1 - i: Leading Practice Principles Documentation of the Leading Practice Principles for use in the gap analysis workshops. Agreed Opportunity Log Structure for use in workshops and later phases. Updated opportunity log with Business Unit opportunities. Gap analysis against leading practice principles for Business Units. Updated opportunity log with cross-cutting opportunities. Gap analysis against leading practice principles for cross-cutting opportunities. Consolidated Opportunity Log Consolidated Gap Analysis Report outlining key findings from the analysis of baseline data.
C12.2 - i: Opportunity Log
C12.3 - i: Business Unit Opportunities C12.3 - ii: Business Unit Gap Analysis C12.4 - i: Cross-Cutting Opportunities C12.4 - ii: Cross-Cutting Gap Analysis
C12 - i: Opportunity Long-list C12 - ii: Gap Analysis C12 - iii: Analysis of Baseline Data
Benefits In addition to helping build commitment through involving stakeholders at various organisational levels the workshops provide a long list of opportunities that can be used as the basis for the prioritisation that takes place in Phase D. Typically they will consist of:

Business Unit opportunities that can be developed with a particular Business Unit; Cross Business Unit opportunities where two Business Units interact with each other; Cross cutting opportunities which cover the scope of the organisation; and Enabling opportunities, usually relating to project support, technology or property infrastructure that are required as a minimum for a transformation activity.
Knowledge Transferred to the Organisation Typically the organisation will have the following knowledge:

The ability to self diagnose each processes area; Techniques used to perform gap analysis and data analysis techniques; Techniques used to perform Service Challenge; Techniques used to perform Process Review; and Techniques used to perform high-level Activity Based Costing.
171
transform*
Making change stick

D Create Case for Transformational Change

Purpose To agree the prioritised opportunities to take forward in the transformation with supporting individual and consolidated business cases. Overview This Phase establishes the portfolio of opportunities to be taken forward within the transformation programme. It starts by scoring the opportunities identified during Phase C and finishes with the creation of an overall outline business case and high level plan for the transformation. Phase D is very closely aligned with Phase B at this point in the programme, as the business case is dependent on many of the outputs (programme plan, benefits plan, etc.) that are created in Phase B. VCC can help to accomplish this in a way that ensures a commercially astute focus and potentially innovative outcomes. Key activities include:
Producing the Business Case building the business case for change by understanding where the organisation currently is and ultimately the desired target end state. The Business Case creates a design for improvement that understands the performance gaps and how to overcome them. It helps identify the areas of opportunity through a clear opportunity assessment process; presenting choice in terms of prioritisation that includes how and when benefits may be realised. Developing a Portfolio of Programmes and Quick Wins - Evaluated opportunities are prioritised with regard to scale of benefit and achievability including assessment against customer and individual needs, resulting in a portfolio of programmes and quick wins that are both achievable and realistic in addition to being able to deliver maximum benefit in the shortest timescale. Quick wins can be fast-tracked to rapid action teams for immediate deployment. Defining Benefits - benefits are defined at a level of detail that allows ownership and accountability for delivery at subsequent stages of the programme to be allocated. Central to this ownership of benefits is the establishment of a clear baseline of service levels, activity volumes and costs. This baseline provides a comparison with future state performance thereby demonstrably proving (or otherwise) that the programme is truly delivering savings and improving services not just cutting costs. Exploring Models of Working - involves identifying potential new ways of working, alternate service delivery vehicles, structures and soft modelling (testing out in theory) the principles of the opportunity areas and applying the guidance of the simplified target operating model (ToM).
172
transform*
Making change stick

The diagram below provides an overview of the inputs, outputs, interdependencies and tasks of Phase D:
Assess Phase D: Create Case for Transformational Change
D4.2 i: Agreed
Inputs
D: Create Case for Transformational Change
Opportunities and Priorities

B8 i: Programme Plan B8 ii: Quickwin Project
Key:
Client / External
Plans
B9 i: Agreed Benefits
Strategic Direction
D1: Agree Evaluation Criteria & Scoring Mechanism
D5: Outline Business Case
Milestones
B9 ii: Backcast Plan B9 iii: Benefit Valuation

Deliverables from
the programme
C12 i:
Opportunity Longlist
C12 ii: Gap
D1 i:
Structure
Analysis
C12 iii: Analysis
Evaluation Criteria & Scoring Mechanism
D5.1 i: Programme Benefits Case D5.2 i: Programme Cost Profile D5.3 i: Updated Programme Plan D5.4 i: Risk Assessment D5.5 i: Financial Case D5.6 i: Outline Business Case
of Baseline Data
D3: Develop High Level Target Operating Model D3: Develop High Level Target Operating Model D3: Develop High Level Target Operating Model
D1 i: Evaluation
Facilities
D4: Agree Improvement Opportunities D4: Agree Improvement Opportunities D4: Agree Improvement Opportunities
Criteria & Scoring Mechanism

Opportunity Long-list Gap Analysis Analysis of Baseline
D2 i: Scored
Opportunity Log
D2 ii: FTE
D2: Opportunity Evaluation
Analysis against Opportunities
Interdependencies
A: Determine Business Needs & Benefits B11: Transformation Vision
Data
Process / Service
D2 i: Scored
Opportunity Log
D3.1 i: Future high-level process
model
D3.2 i: Future high-level application
Enabling People & Technology Organisation
architecture
D3.3 i: Future high-level
B16: Communications
organisation structure
D3.3 ii: Future model options D3.3 iii: Future Governance /
B14: Resource Planning
Partnership options
D3.3. iv: Future Operational /
Physical Location options

D3.3. v: Future Sourcing options D3.3 vi: Future Funding Options D3.4 i: Future high-level KPI /
D2 i: Scored
Measure / Information model
Opportunity Log
D3.4 i: future model
D4.1 i: High-level Model Analysis D4.2 i: Agreed Opportunities and Priorities
Outputs
options
Phase D is dependent on Phase A: Determine Business Needs & Benefits, as the basis of the business case. Task B11: Align Leader to Vision is dependent on many of the activities within Phase D, as many of the key stakeholders may require robust analysis of opportunities against a baseline to be convinced of the Case for Change. Task B16: Communications and B14: Resource Planning require the clarity of which changes and when will the changes be made that is agreed during Phase D. The key tasks within Phase D are:

D1: Agree Evaluation Criteria & Scoring Mechanism; D2: Opportunity Evaluation; D3: Develop High Level Target Operating Model; D4: Agree Improvement Opportunities; and D5: Outline Business Case.
173
transform*
Making change stick

D1
Agree Evaluation Criteria & Scoring Mechanism
Purpose To define the evaluation criteria to be used to score the opportunities. Overview When developing the final portfolio of projects , the following should be considered:

What level of impact will the initiative have on improving the customer experience with the organisation? What value do the opportunities release in terms of cash or time benefits? How soon will benefits begin to flow and what is the profile? How achievable are these opportunities? How well does the portfolio align with existing initiatives and the organisations strategic intent? How well does each programme align with the remainder of the portfolio? What is the level of IT support required? Is there an impact on customers and other stakeholders? Is there an impact on individual? and How well are compliance requirements addressed?
By developing and using a set of evaluation criteria to assess each opportunity, a shortlist of opportunities can be developed and a business case to support them can be produced. Interdependencies
Interdependencies C12: Leading Practice Gap Analysis The long list of opportunities is created during C8.
Inputs
Inputs C12 - i: Opportunity Long-list C12 - ii: Gap Analysis The long-list of opportunities that will be analysed and scored. The documented gaps with the organisation that can be prioritised and incorporated into the mechanism The analysis of baseline data to support opportunity evaluation.
C12 - iii: Analysis of Baseline Data
Task Description
Tasks D1.1: Define Evaluation Criteria and Agree Weightings Definition of the criteria and weightings to be used during the evaluation of opportunities.
174
transform*
Making change stick

D1.1 Define Evaluation Criteria and Agree Weightings

Benefit Value
Ease of Im plem entation
Investm ent Required
Assessm ent Fram ew ork
IT Support Dependency
Risk
Speed to Benefits
Develop appropriate evaluation criteria to be used in assessing the improvement opportunities Make appropriate use of workshops and brainstorming sessions with key stakeholders of the organisation to develop the evaluation criteria. It is important that the evaluation criteria are derived with the active and full participation of the organisation to embed the change. An example of such agreed criteria are as follows:
Benefits (Weighting: 12) Strategic Alignment (Weighting: 10) Customer Satisfaction (Weighting: 8) Timing (Weighting: 1) Risks / Ease of Implementation (Weighting: 1) Resource Impact (Capacity to Deliver) (Weighting: 1) Tangible benefits equate to over approx 250,000 per annum The opportunity directly and significantly delivers local outcomes The opportunity will directly and significantly raise the satisfaction levels of customers The opportunity is key to a number of initiatives to improve customer satisfaction The opportunity is a key initiative to improving customer satisfaction The opportunity directly supports initiatives linked to customer satisfaction <6mnths No identifiable risks with progressing this opportunity There is current capacity to deliver this opportunity
Tangible benefits equate to between approx 100,000 and 250,000 per annum Tangible benefits equate to between approx 50,000 and 100,000 per annum Tangible benefits equate to between approx 20,000 to 50,000 per annum
The opportunity is key to at least two local outcomes
6-12mths
Only low level risks in progressing with this opportunity
There is expected to be minimal issues to secure the capacity
The opportunity is a key initiative linked to local outcomes
1-2 yrs
At least one medium level risk in progressing with this opportunity.
The issues to secure the capacity are surmountable
The opportunity directly contributes to local outcomes
2-3 yrs
A number of medium level risks associated with progressing this opportunity
There will be issues to secure the capacity
Tangible benefits equate to less than approx 20,000 per
The opportunity indirectly contributes to local outcomes
The opportunity indirectly makes a contribution towards customer
>3yrs
One or more high level risk associated with progressing this
There will be significant issues in securing the capacity
175
transform*
Making change stick

Performance Improvement Consulting Strategic Alignment (Weighting: 10) Customer Satisfaction (Weighting: 8) Timing (Weighting: 1) Risks / Ease of Implementation (Weighting: 1) Resource Impact (Capacity to Deliver) (Weighting: 1)
Benefits (Weighting: 12)
annum
satisfaction
opportunity

Outputs & Deliverables D1 - i: Evaluation Criteria & Scoring Mechanism Documented criteria and scoring mechanism.
Benefits
Provides the basis for a consistent approach to the opportunity evaluation process.
The organisation will have the capability to score opportunities using the defined evaluation criteria.
176
transform*
Making change stick

D2
Opportunity Evaluation
Purpose To evaluate the long list of opportunities and to create a shortlist. Overview Each opportunity is scored so that the relative merits and weaknesses of different opportunities can be understood and compared. A structured assessment framework is used to enable this. The framework should incorporate the elements that are needed to make decisions. The following diagram shows the amount of effort expended on opportunities as they proceed through this filtering process:
Opportunity Opportunity Identified Identified
Description and rational Description and rational
Opportunity Opportunity Quantified (Phase 1) Quantified (Phase 1)

Description and rational plus high Description and rational plus high level view of potential global level view of potential global benefits and costs benefits and costs
Opportunity Scored and Opportunity Scored and Prioritised (Phase 2) Prioritised (Phase 2)
Description and rational plus view Description and rational plus view of potential benefits and costs of potential benefits and costs profiled over time profiled over time
Effort Effort
Interdependencies
Interdependencies D1: Agree Evaluation Criteria & Scoring Mechanism The scoring criteria and mechanism must be agreed and signed-off before starting this task.
Effort
Inputs
Inputs D1 - i: Evaluation Criteria & Scoring Mechanism C12 - i: Opportunity Long-list The criteria and weightings to be used in the task. The long-list of opportunities that will be analysed and scored.
Task Description
Tasks D2.1: Opportunity Scoring D2.1: FTE Analysis against Opportunities Process of scoring opportunities against agreed criteria. Process of evaluating opportunities against the leading practice model and FTE numbers to ensure benefits are achievable.
D2.1 Opportunity Scoring

Score each opportunity with each criterion being awarded a value. This results in a simple but weighted score that enables the various opportunities to be compared. The opportunity template for each opportunity is then updated to include the scoring and any additional detail developed to support the scoring process. Assess whether each improvement opportunity meets legal and business requirements, checking for non-
177
transform*
Making change stick

compliance such as: Misalignment with corporate strategy; Beyond scope of the change initiative Business Case budget; In breach of law and/or regulation; In breach of a corporate policy; or In breach of obligations to third parties.
Discard improvement opportunities which do not meet the organisations legal and business requirements. Assess whether each improvement opportunity provides a fit with: The organisations ability to implement; Level of likely management commitment; Strategic factors and organisational values; Operating and management systems and styles; and The organisations culture.
For each of these areas, assess the degree to which change management activities such as: Change approach diagnosis and Change readiness workshops; Leadership mentoring and coaching; and Reworking core values, beliefs and culture;
are likely to positively impact the potential solutions workability and sustainability. Make use of the findings of any change approach diagnosis, change readiness assessments or change leadership assessments that have already been conducted as part of Phase B as input to this determination. Discard any improvement opportunity which does not provide a fit with the organisation and for which potential supporting change management activities cannot be practically implemented. Based on the results of the evaluation, ranking and prioritisation of potential alternatives, derive an initial Improvement Opportunities Portfolio which identifies in addition to the planned benefits: Quick wins - improvement ideas that can be implemented in the short term without negative impact on the overall change effort; Longer term improvement opportunities which tend to be organisation wide; and Opportunities for improvement which need to be undertaken as a separate project or programme of projects within a specific business unit.
Prioritising opportunities is achieved through a series of stakeholder workshops to discuss the Improvement Opportunities Portfolio by: Conducting a workshop needs assessment and audience definition; Developing workshop objectives and structure; Determining attendees; Creating workshop materials; Identifying workshop leaders, workshop facilitators and output recording function; and Preparing workshop schedules.
The workshops review the Improvement Opportunities Portfolio. The workshops should include discussion of such items as: The contribution of each opportunity to the overall Business Case; Planned benefits and benefits measures;
178
transform*
Making change stick

Performance targets that are to be set for each opportunity; Actions that need to be undertaken to address each opportunity; The prioritisation that has been assigned to each opportunity; The implementation issues, barriers and enablers for each opportunity; and The classification of quick wins and opportunities that constitute separate projects.
Discuss all components of each opportunity that have been defined to address policy, processes, technology, organisation and facilities changes that are required.
D2.2 FTE Analysis Against Opportunities

In addition to the scoring process, it can be useful to provide an analysis of the opportunities against the leading practice model and the FTE data collected during Phase C. This provides a check and balance for the opportunities ensuring that there are enough individual completing a process area across the organisation to be sustainable. The analysis is completed by: 1. Analysing which business units / service / functions the opportunity affects; 2. Analysing which process areas (from the leading practice model) the opportunity affects; 3. Deriving a number of FTEs that would be affected by the opportunity by cross-referencing the business unit and process area data; and 4. Applying a potential saving figure to the FTE figure based upon the gap analysis score against leading practice. These activities provide a potential saving figure (in terms of FTEs) if Business Process Reengineering (BPR) is undertaken and can be used to support prioritisation of opportunities, for example: Opportunities that potentially have the biggest FTE savings are probably worth investing in with BPR effort; and Conversely, opportunities that may seem like problem areas and potentially require BPR can be discounted by this method as not likely to make savings, due to the low number of FTE affected.
An IT analysis can also be conducted against the opportunities to help: Identify opportunities where existing technology could be re-used to deliver quick wins; Identify where opportunities require significant IT change and/or investment; and Prepare for business case development by identifying which IT enablers are required for what purpose (e.g., high level requirements) to support IT implementation cost elements.

Outputs & Deliverables D2 - i: Scored Opportunity Log D2 - ii: FTE Analysis against Opportunities Opportunity log with scored prioritised opportunities Analysis of the opportunities to support identification of BPR investment.
Benefits Provides a focus on the opportunities to be taken forward and further developed into a mini-business case. In addition, the organisation will get an understanding of current projects and the value to the organisation.
179
transform*
Making change stick

Knowledge Transferred to the Organisation The following knowledge will be available to organisations:

The introduction of a benefits culture to the organisation; and The ability to challenge and prioritise projects.
180
transform*
Making change stick

D3
Develop High Level Operating Models
Purpose To define at a high-level the organisation or support function structure required to deliver the new ways of working. Overview This task considers the complexity in the nature and type of services or products being delivered and objectively considers the models of working in place to support delivery from a support activity and not necessarily how functions or groups are currently organised or sourced. The data analysis and opportunity selection activities already completed should have produced a portfolio of improvement initiatives targeted at identifying more efficient and effective models of working. In this task, a Target Operating Model (ToM) is developed to support the redesign of these services. The achievement of the improvements promised by adopting best models of working indicates a step change in the way that organisations are likely to conduct business and involves undertaking a range of major change initiatives that affect every aspect of how work is done. Evidence suggests that the rewards of taking these steps are that service to customers should improve, individual should be happier in what they do and processes should be more efficient and cost less. This is a step change that will require stakeholders to think differently about the structure of the organisation, the way services are delivered and to appraise options objectively when considering improvement opportunities. As part of the redesign process, the potential sourcing options available are examined for the full range of potential partnership arrangements and in-house service provision. These can be defined as:

Current state model - continue As-Is - Carry on with current operational and strategic ways of working; Establish internal centre(s) of excellence - Move to an internally managed centralised model; Joint Venture / Partnership - Work with private third parties to deliver services in partnership; Separate companies Where the organisation creates a separate but wholly owned separate entity; As part of a support or shared services model either virtually or physically; and Source services externally Outsource - Move to an outsource service provision arrangement from a third party for specific service components.
A key output from this activity is an agreed TOM that has considered alternate delivery vehicles for services, supports solution development, is able to scale to a level and adapt / incorporate additional partner members, where appropriate. VCC, through its focus on insight and creative thinking rather than linear thinking can help to develop a unique TOM that may even create additional synergies beyond the initial opportunities identified. For example, opportunities to reduce idle time in production processes in a group of advertising agencies through process improvement may have been identified. During the application of VCC, the idea of a shared production facility emerges which would enable multi-skilling and even better utilisation results than those initially envisaged.An example of a TOM involving structures, processes and technology is shown at Figure :
181
transform*
Making change stick

Standardised Technology Model
Ways of Interacting with the Customer
Standardised Process Face-toface White Mail Telephone SMS EMail Internet Model
Front Office
Access Channels
Information Provision Application Requests Appointment Taking
Receive Customer Payments Customer Satisfaction Arranging Payments to Customers
Customer Relationship Management
Walk-In Centres Contact Centres One Stop Shops Community Partnerships (Shared) Libraries & Community Centres
Customer Contact Managing Service Requests
Operational Support
Delivery
Managing Service Requests: Service requests, Work Planning and Scheduling Service Delivery: Stores & Materials, Dispatch/Distribution Records and Billing: Recording, Billing, Close Record
Service
& Billing
Records
Enterprise Workflow
Central Core
Support Services
Enterprise Application Integration
Productivity Applications
Managing Staff, Process Quality, Managing Contracted Services, D ata Entry, Property Services, Asset Management, Procurement, HR, Strategy & Policy, Data Management, Marketing, PR & Communications, Legal Services & Justice, Financ ial Management, Business Intelligence & Reporting, Supporting the Democratic Cor e ICT, Health & Safety, General Admin & Support, Performance Management
Support &
Functions
Specialist
Core Departmental Policy Execution

BI/KM Applications Policy Execution Policy Execution Policy Execution Policy Execution Policy Execution
Policy Execution Service Delivery Doing

Community Partners e.g. Health, Regeneration
Core Departments & Delivery
Corporate Services
(CEO, Finance, ICT) Core Delivery largely through Central Core above
Children Services
(Education, Social Work, Direct Services) Core Delivery
Adult Services Community (Social Work, Services

CLS, Direct & Care) Core Delivery (Cultural & Leisure, Direct Care Services) Core Delivery
Environment
(Environmental Protection, Land Services, Devt & Regeneration) Core Delivery
Shared Service Applications
Service Specific Applications
Geographic or Central Control
Common Service Delivery
Figure ggg: Example TOM
Interdependencies
Interdependencies A: Determine Business Needs & Benefits The business needs and benefits including customer insight should be an influential factor in developing the high level models.
Inputs
Inputs D2 - i: Scored Opportunity Log List of potential options can support the discussions around potential models.
Task Description
Tasks D3.1: Future State Process Delivery Develop a future state model of process delivery based upon the Standardised Process Grouping Model definitions. Develop a future state high level logical application architecture. Develop a future state high level organisation structure.
D3.2: Future State Applications Architecture D3.3: Future State Organisation Structure and Governance D3.4: Future State High Level KPI / Measures / Information
Develop a future state KPI and measurement structure.
182
transform*
Making change stick

D3.1 Future State Process Delivery

Define the future state process delivery model. Adjust the Standardised Process Grouping Model process areas to fit with the new ways of working and determines which process should be: Re-designed or simplified; Standardised across the organisation; and Deployed in a central model or in a devolved model.
For example, in a truly customer centric organisation enquiry handling would be achieved in a common process through multiple channels. A standard approach to this could be deployed using contact centres, contact services centres or through websites with common customer information available through each with processing through to the back office using the most effective and automated delivery model based on reduced paper, workflow and rules based automation. An example future state process delivery model is shown at Figure .
Face-to-Face (F2F)
Information Request (200) Manage Appointment (5)
Telephone (TEL)
Mail Proc (MP)
Internet (WEB)
Application Request (20) Simple Assessment (25)
Eligibility (5) * Complex Assessment (100)
Application Request (10) Simple Assessment (15)
Eligibility (3)
Application Processing (19.0) Document Management (9.29)
Application Request (2) Eligibility (0.5)
Make Payment (10)
Commissioning (30)
All other services performed by F2F agents
All other services performed by CSC or F2F agents
All other services performed by TEL/MP or F2F agents
Comments Compliments & Concerns (20)
Outbound Contact (30)
Outbound Contact (15)
Focus on F2F, with more resources and more services than other channels
Customer Service Group Shared Support

Resource Planning (40) Service MI & Reporting (60) Performance Monitoring* (40) HR Services (30)
Re-organise support activity to work across channels
Figure hhh: Example Future State Process Delivery
D3.2 Future State Applications Architecture

Define the future state application architecture. Figure outlines a sample logical application architecture for the organisation in the future, based on the principles of business driven information systems and enterprise architecture.
183
transform*
Making change stick

Figure iii: Example Logical Business Architecture
In addition to requiring differences in the way that IT is funded and governed, a service-based approach requires a change in the way that functionality is packaged and deployed. Appropriate enterprise architecture also considers the manner in which functionality is made available as services within the organisation and to its customers and the way in which those services are managed and monitored.
D3.3 Future State Organisation Structure and Governance

Defines the most appropriate structure for delivery and governance. of the new ways of working. This structure should be aligned to the process model and should consider the options available for working with external partners, if appropriate. Examples of different options are shown at Figure to demonstrate the different degrees of change that an organisation structure may undergo to support business transformation. In the highlighted model, traditional back office services have been centralised in a shared service (e.g., Finance, Procurement, HR, Technology, Legal Services, Marketing and Communications, Asset Management and Property Services). In addition, more forward thinking organisations consider what other common back office processes can be simplified, standardised and shared and have created a Service Support facility. Typically, a Service Support function can include elements of activities such as general administration, secretarial support, corporate and service reporting and management information, rule based contracting and commissioning, resource planning and scheduling, filing/archiving and retrieval. In this model, customer contact is further aligned, with processes and systems supporting a single view of the customer and contact history being made available to all individual who interact with the customer, security permitting. At this point, consideration needs to be given to existing governance structures, existing operational models, legal structures and taxation, physical locations, customer and market analysis and the supply chain and sourcing models. These are addressed in greater detail throughout the Design and Construct Stages.
184
transform*
Making change stick

Figure jjj: Example Organisation Structure Models
D3.4 Future State High Level KPI / Measures / Information

Establish a set of targets and to be used to support the target improvements. This is high level and should include areas such as cost reduction, resource allocation by function / process, headcount savings and key metrics for process, people, technology, locations and technology applications. This should be closely aligned with the outline business case. More detailed information is contained within Phase E and Phase J. Outputs & Deliverables
Outputs & Deliverables D3.1 - i: Future high-level process model D3.2 - i: Future high-level application architecture D3.3 - i: Future high-level organisation structure D3.3 - ii: Future model options Documentation of the future process model Documentation of the high level logical application architecture. Documentation of the high level organisation structure. Documentation of any model options that may need to be considered.
185
transform*
Making change stick

Performance Improvement Consulting Documentation of the governance and partnership options Documentation of the operational and physical location options
D3.3 iii: Future Governance / Partnership options D3.3 iv: Future Operational / Physical Location options D3.3 v: Future Sourcing options D3.3 Vii: Future Funding Options D3.4 - i: Future high-level KPI / Measure / Information model
Documentation of the sourcing options Documentation of funding options Documentation of the high level KPIs, measures and information model
Benefits
Considers the opportunities in the context of how best to implement them through a high level Target Operating Model.

The interdependencies between processes, structure and technology architecture; The ability to design a high level TOM; Approach to process design, service based architectures and organisation structures; and An understanding of logical application architecture and how it relates to the business.
186
transform*
Making change stick

D4
Agree Improvement Opportunities
Purpose To gain stakeholder agreement on the improvement opportunities to progress to the outline business case. Overview A workshop with key stakeholders is conducted to gain agreement and sign-off on the improvement opportunities to be built into the outline Business Case. This task can be completed in conjunction with the Programme Planning activities in Phase B. Interdependencies
Interdependencies B8: Programme Planning Programme planning should be completed in parallel with this task.
Inputs
Inputs D2 - i: Scored Opportunity Log Complete list of scored and weighted opportunities for use in the workshop. Future model options to compare opportunities against.
D3.4 - i: Future model options
Task Description
Tasks D4.1: Gain Agreement from Key Stakeholders Conduct a workshop to gain agreement on the opportunities to be modelled in the outline business case.
D4.1 Gain Agreement from Key Stakeholders

Conduct a workshop with key stakeholders to agree which opportunities should be modelling in the outline Business Case and their applicability to a preferred future TOM. This workshop should inform programme planning but can be iterative if there is disagreement on the improvement opportunities, or the order in which they are to be implemented.

Outputs & Deliverables D4.1 - i: High-level Model Analysis The TOM options should be discussed and agreed upon during this task. The opportunities are agreed and signed off for inclusion in the outline Business Case.
D4.2 - i: Agreed Opportunities and Priorities
Benefits
The key stakeholders gain an opportunity to make final points before the findings of the Assess Stage are written-up, ensuring that buy-in to progress is gained. This commitment building involvement is critical to the success of the project.
187
transform*
Making change stick

How to run a workshop with senior stakeholders to gain approval of the high-level TOM options and opportunities to be taken forward.
188
transform*
Making change stick

D5
Build Business case
Purpose To produce an outline business case to be used to prove the viability of the programme from a financial perspective and prepare to move to detailed design. Overview The opportunities should be categorised to identify the type of benefit to be achieved (service improvement, cost reduction, etc.) and the services affected by them. In conjunction with the cost development and implementation plan the benefits should be quantified and any associated assumptions logged. The timetable for realisation of the benefits should also be documented at each point. In addition, a high-level implementation plan is developed that outlines the opportunities against time. This plan should assist the next stage of work which is aimed at determining detailed plans for designing the solutions, including the steps necessary to deliver the portfolio of opportunities. The structure of the plan, its timeline, packages of work and profile of work-stream delivery should be informed by the opportunities identified during the review and tailored to represent the specific needs and requirements of the organisations. Transformation typically includes supporting initiatives targeted at governance, technology, change management and business alignment in addition to the streams of work targeted at implementing the improvement opportunities themselves. It is critical that the process of plan creation be both tailored to the organisations needs and ambitions and balanced against other areas mentioned if it is to be realistic and able to implement sustainable change. A balanced portfolio would be reflected by:

The size of the opportunities with a balance of large scale and smaller quick win type opportunities; The coverage of the service business units in the opportunities; and The type of outcome expected from the opportunity e.g., service improvement and efficiency.
One of the criteria for taking opportunities forward is affordability. Having understood the drivers for opportunities not all of them have to have a standalone business case as long as they are part of an overall transformation programme. In understanding this it is important to define the costs associated with the implementation of the opportunity along with any associated assumptions. This involves determining the costs of infrastructure (property, technology), applications and external implementation and consultancy costs. In addition, costs should be identified that cover the entire programme including enabling costs (programme management, change management, redundancy / severance costs, business process reengineering, training, etc.) and can include the internal cost of backfilling individual involved in the programme. The final output of the task is a report for the organisation which sets out the analysis and findings from the Assess Stage. The report includes a consolidated view of the opportunities identified along with an overall outline business case (OBC) and implementation plan. Details of each of the opportunities identified along with the business case for each and the associated implementation plan will also be included. Interdependencies
Interdependencies B8: Programme Planning The final stages of high level programme planning are iterative with the creation of the outline business case. The benefits plans support the creation of the financial and benefits case.
B9: Benefits Planning
189
transform*
Making change stick

Interdependencies B16: Communications Planning Communications planning relies upon the outline Business Case to confirm the changes that will need to be planned and communicated. Resource planning for the next stages of the programme relies upon an updated programme plan and agreed set of projects that will be created alongside the outline Business Case. The outline Business Case relies upon key stakeholder agreement on the opportunities that it should contain. The development of the best fit change approach and the change management strategy rely upon the outline Business Case for identification of the changes required.
B14: Resource Planning
D4: Agree Improvement Opportunities
Stage 2- Design: B20 - i: Change Management Strategy
Inputs
Inputs D4.2 - i: Agreed Opportunities and Priorities B8 - i: Programme Plan B8 - ii: Quickwin Project Plans Agreed list of opportunities to be built into the Business Case. Programme plan for use in the outline Business Case. Quick-win project plans for approval to implement alongside the Detailed Design activity in Stage 2 - Design. Benefit milestones for inclusion in the outline Business Case. Backcast Plan for use in updating the programme plan. Valuation of benefits for use in the financial case.
B9 - i: Agreed Benefits Milestones B9 - ii: Backcast Plan B9 - iii: Benefit Valuation
Task Description
Tasks D5.1: Develop Benefits Case for Opportunities D5.2: Develop the Costs of Opportunities Review opportunities to develop benefits case. Develop a high opportunities level cost analysis of implementing the
D5.3: Develop the Implementation Plan D5.4: Perform Risk Assessment D5.5: Develop Overall Business Case and Cash Flow Model
Develop the high level implementation plan. Perform a risk assessment of the programme. Develop the financial model and overall business case.
190
transform*
Making change stick

D5.1 Develop Benefits Case for Opportunities

Use a standard business case template to define each of the opportunities. The benefits of all opportunities need to be defined and measured through the programme. The quantification of benefits comes from two mains sources: External spend through procurement and partnerships and the ability to reduce this; and Individual costs.
Initiative Title: assigned Initiative Title: assigned following identification following identification
Initiative reference number: Initiative reference number: will have been assigned will have been assigned during opportunity during opportunity identification identification
Source of Information: Input Source of Information: Input details of where the details of where the information in the template information in the template has come from e.g. Data has come from e.g. Data Gathering, Gap analysis etc Gathering, Gap analysis etc
Description of Initiative: Description of Initiative: Provide aashort description of Provide short description of the initiative the initiative
Rationale for Proposed Change: Rationale for Proposed Change: Describe the rationale for the proposed Describe the rationale for the proposed change i.e. why the change is required change i.e. why the change is required and how opportunities for improvement and how opportunities for improvement can be realised can be realised
An example of how to quantify the benefits case involves applying a potential saving percentage to each of the process areas as follows: Up to 30% saving for front office Customer Contact activity through improved processes, especially where significant automation is possible e.g., in enquiry handling, application requests, appointment taking and planning and scheduling, or where sharing, appropriate models of working and improved service models enable activity elements to be handled efficiently e.g., through the contact centre; and Up to 20% savings from Support Services through a reduction in time spent on activities by streamlining processes including procurement, HR, Financial Management, ICT and Property.
For example, in Enquiry Handling, if an organisation had a gap of 1.44, to calculate the potential benefit
191
transform*
Making change stick

this is divided by 5 to determine a potential benefits multiplier i.e., 1.44 / 5 = 0.29. This potential benefits multiplier is then multiplied by the maximum available benefit of 30% to achieve an overall estimated savings of 9% for Enquiry Handling. This 9% can then be applied to the cost of delivering Enquiry Handling across the organisation.
Initiative Type: The initiative Initiative Type: The initiative type is either aamajor project type is either major project or service specific (selected or service specific (selected from aadrop down) from drop down) Describe the implementation Describe the implementation challenges: implementation challenges: implementation challenges may be e.g. challenges may be e.g. organisational cultural organisational cultural barriers, ownership of senior barriers, ownership of senior management etc management etc
Improvement Type: selected from Improvement Type: selected from aadrop down menu:- Reduces drop down menu:- Reduces Cost (cashable cost saving or Cost (cashable cost saving or time releasing), Income time releasing), Income Generation, Service Improvement Generation, Service Improvement
The benefits profiles and types (values and phasing) can then be defined as follows. This must be completed in conjunction with implementation planning.
Benefits Achievement Benefits Achievement Confidence Level % Confidence Level % confirm what % of benefit confirm what % of benefit will be achieved each year will be achieved each year over the next 10 years. Note: over the next 10 years. Note: This may change over time This may change over time Cost Reduction or Time Releasing Cost Reduction or Time Releasing Benefit (FTEs) quantify the benefit Benefit (FTEs) quantify the benefit in FTE terms. Document the current in FTE terms. Document the current FTE involved in this initiative in the FTE involved in this initiative in the current row (from data gathering). current row (from data gathering). The proposed FTE reduction will The proposed FTE reduction will then be worked out based on the % then be worked out based on the % benefit achievement entered above: benefit achievement entered above: Current FTE (Current FTE x % Current FTE (Current FTE x % Benefit achievement) Benefit achievement) e.g. 100 FTE current, 10% Benefit e.g. 100 FTE current, 10% Benefit estimated. 100FTE (100FTE x 10%) estimated. 100FTE (100FTE x 10%) = 90FTE proposed, with 10FTE = 90FTE proposed, with 10FTE reduction. reduction. NOTE: A new initiative may utilise 0 NOTE: A new initiative may utilise 0 FTE currently, but could still be FTE currently, but could still be estimated to reduce FTE in another estimated to reduce FTE in another area. Details of this fact should be area. Details of this fact should be recorded in assumptions and a note recorded in assumptions and a note may be entered in the specific cell may be entered in the specific cell
Income Generating document Income Generating document the current income from this the current income from this initiative. If it is new leave the initiative. If it is new leave the current row blank. Estimate the current row blank. Estimate the total proposed annual income in total proposed annual income in the proposed base row for this the proposed base row for this opportunity. The increase will be opportunity. The increase will be calculated. calculated.
Revenue Saving - document the Revenue Saving - document the current revenue spent in this area. current revenue spent in this area. Estimate the total proposed Estimate the total proposed annual revenue and enter it in the annual revenue and enter it in the proposed base row. The proposed base row. The reduction will be calculated. reduction will be calculated.
D5.2 Develop the Costs of Opportunities

The costs of implementation of the opportunities are defined using a standard business case template. The following diagram explains the potential costs elements and their associated timing in conjunction with the implementation plan (and B8: Programme Planning).
192
transform*
Making change stick

Directorate impacted: Indicate Directorate impacted: Indicate using an X which directorates are using an X which directorates are impacted by this opportunity impacted by this opportunity directly or indirectly. directly or indirectly. Cost Profile over 10 years. Cost Profile over 10 years. Estimate costs across: Estimate costs across: Consultancy Cost Consultancy Cost Technology Costs Technology Costs Property Costs Property Costs Staff Costs Staff Costs Total Project Costs Total Project Costs
Assumptions: document Assumptions: document any assumptions that have any assumptions that have been made. been made.
D5.3 Develop the Implementation Plan

The aim of the implementation plan is to set stretching but realistic objectives. The organisation needs to agree how far, how fast and with what risk profile they seek to transform the organisation. The transformation programme should drive both bottom-up and top-down change. The balance of efficiency gains versus service level adjustments should be dynamic, with use of models such as policy or priority based budgeting where targets cannot be met from pure efficiencies. It is important that the programme is not seen simply in terms of cost-cutting, to ensure that capacity is built within the organisation for the longer term there should be a focus on service improvement and enhancing customer and individual satisfaction. Indeed, some business units may require further financial investment to meet these expectations. This is a high level implementation plan that represents the future phases of the programme. During the implementation, through targeted communications and involvement opportunities should gain an understanding of the new ways of working and input to the development of the plans as they go forward. Planning for Implementation is further described in B8: Programme Planning. The following implementation plan is typical and provides an overview of the projects adopted during the 5 year period. It shows the different types of opportunities adopted as projects: Best Models of Working which come from the crosscutting opportunities; and Enabling opportunities which provide the support mechanism for the transformation through some infrastructure or professional related skills.
Not shown is the business unit specific or the inter business unit opportunities. An important criteria in achieving the plan is the capacity of the organisation to manage a large number of external partners spread across the programme in each of the opportunities. Areas of external assistance that need to be coordinated may include: Project Management (including benefits management); Change Management (including Communications, Culture, Training, Organisation Design and Working Together); Business Process Re-engineering; Consultancy associated with each Best Model of Working (e.g., Customer Contact); Consultancy associated with each Business Unit; and Technical Consultancy (including specific consulting around property and various aspects of IT e.g., Applications).
193
194
Q1 1.1 SAP CRM 2.1 Access to Back Office Information 2.2 Real Time Transaction processing 3.3.1 Planning and Scheduling 3.4 Stores and Distribution 3.5 Mobile Working 4.2 ICT Rationalisation 4.3.1 Sales and Leaseback 4.3.2 Office Refurbishment 4.3.3 Non City Centre Buildings 4.3.4 Property Services Rationalisation 4.4 Procurement 4.5 Finance 4.7 Human Resources 5.1 Data Management 5.2 Document Management 5.3 Business Intelligence 3.3.2 Automation of Deployment 1.4 Customer Service 2
Q2
2007 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q1 Q3 Q4 1.2 Access Channels
2008
2009
2010
2011
transform*
2. Service 1. Customer 3. Workforce Request Contact Management Management

2.3 Customer Requests 3.2 Rationalisation of Common Doing 6.1 Performance Management 6.2.1 Communications 6.2.2 Culture 6.2.3 Business Process Re-engineering 6.2.4 Training 6.2.5 Organisational Design 6.2.6 Working Together Key : Pathfinder Programme Activities Activities from other Related Programmes
BMW001
1.3 Customer Service 1
BMW002
3.1 Doing Analysis
BMW003
4.1 ICT/Property Partner Procurement
4. Support Services
BMW004
5. Information Management
BMW005
5.4 Performance Management
6. Enablers
Another important criterion in achieving the plan is the capacity of the organisation to achieve the level of
Making change stick
transform*
Making change stick

change required. To address this, a high level resource plan should be created to show the estimated organisation commitment in individual resources to the programme. This can be estimated by using a multiplying factor against the number of external consultancy days planned for each project in the programme. Resource Planning is described in more detail in B14: Resource Planning.
D5.4 Perform Risk Assessment

Successful delivery of an effective transformation programme depends on the effective management of key risks. The table below shows some risks that could have a damaging consequence in terms of delivery. Risk Political risks
Stakeholders do not engage in the transformation programme Senior management do not agree on the priorities coming out of the programme and will not make the difficult decisions required Organisation priorities emphasis on specific priorities changes as a result of local pressures, national issues or regulatory enforcement. Likelihood - High Impact - High Likelihood - Med Impact High Engage stakeholders and communicate throughout the duration of the programme. with them
Assessment
Management arrangements
Seek early, wide ranging and ongoing management involvement in the process of developing the components of the transformation programme and communicate regularly with leading members throughout the process, as outlined in our project timetable. A flexible approach and individual project based programme allows adapting to changing circumstances.
Likelihood Low Impact High
Delivery risks
There is insufficient clarity about the vision for the council and as a result projects do not fit with an emerging vision There is poor engagement of front line individual and services do not / will not embrace the transformation programme. Partners do not co-operate with the organisation during the programme. Likelihood Low The initial focus for the organisation is designed to ensure that the future vision for how they should operate is baked into all future change projects. It will then also be possible to check that all existing projects are still appropriate.
Impact - Med
Likelihood Med Impact High
Work closely with the transformation team to engage individual from across all service areas and communicate with them throughout the duration of the programme.
Likelihood Med Impact High
Work closely with the internal transformation team to engage external partners from across the county and communicate with them throughout the duration of the programme. Build upon existing relationships with these organisations.
The organisation is unable to free up sufficient individual of the right calibre to engage in the change programme
Likelihood Med Impact - High
Define resource requirements and source interim managers, whether to support to the change programme or to backfill for other individual who then join the change team.
195
transform*
Making change stick

Risk
Trade unions attempt to block progress on the change programme
Assessment
Management arrangements
The HR team should provide effective and open dialogue with trade union representatives.
Key individual leave their respective employment during the programme.
Likelihood Low Impact - Med
As with all projects and assignments identify suitable succession arrangements, implement effective documentation standards to ensure continuity and promote open and honest communication among the transformation team to enable maximum time to respond during notice periods.
Financial risks The organisation can not / will not invest the funding required to make transformation work Likelihood Low Impact High Consider external funding sources for the investment. Furthermore consider risk and reward to reduce the risk exposure to the council overall by linking a proportion of external fees to successful outcomes in the programme.
The other initiatives fail to identify the level of savings required to invest in the programme
Likelihood Low Impact Med
Ensure that the development of the other initiatives is based upon a robust analysis of opportunities.
The organisation afford one-off associated transformation
cannot costs with
Likelihood Med Impact - Med
The approach will establish a financial model which seeks to optimise projects sequencing within the given financial envelope. It will also assist the council in establishing what can be capitalised.
Service is degraded during transformation
Work with individual to ensure that all transition plans are robust, that there is sufficient resource to limit service disruption and that the lessons from previous change programmes are embedded.
Sustainability risks
Skills transfer is successfully achieved not Likelihood Low Impact High Develop the successful methodologies that have been applied during our other transformation programmes to ensure that the common pitfalls of skills transfer are avoided or overcome.
There is a lack of investment in infrastructure to support long term development.
Likelihood Med Impact - Med
Work closely with the transformation team and partners to identify suitable strategies to ensure that the investment required for supporting long term sustainable improvement is in place.
196
transform*
Making change stick

D5.5 Develop Overall Business Case and Cash Flow Model

Develop a cash flow model for each of the individual opportunities.
Gross Benefits - this section will take the data from the quantified benefits and Gross Benefits - this section will take the data from the quantified benefits and work out the Gross Benefit. work out the Gross Benefit. Proposed Income (taken from above) Proposed Income (taken from above) Staff Saving (Cost reduction or Time Releasing FTE above x average income) Staff Saving (Cost reduction or Time Releasing FTE above x average income) Other savings (enter any other quantified saving amount e.g. volume based Other savings (enter any other quantified saving amount e.g. volume based discounts) discounts) Revenue Saving (taken from above) Revenue Saving (taken from above) Total Gross Benefit (sum of all above) Total Gross Benefit (sum of all above) Costs this will total up all Costs this will total up all costs from the table at the costs from the table at the foot of the template and foot of the template and class them as Revenue or class them as Revenue or Capital. A total Project Capital. A total Project Cost will be produced. Cost will be produced.
Net Benefits this will be Net Benefits this will be calculated by subtracting the calculated by subtracting the costs from the Gross Benefit. costs from the Gross Benefit.
Consolidate the individual models into an overall consolidated model for the organisation. This produces an overall cashflow.
Total Cost / Benefit Per Annum
40.00 30.00 20.00

Cost / Benefit (m)
10.00 0.00 2007/8 -10.00 -20.00 -30.00 Year 2008/9 2009/10 2010/11 2011/12
Benefit Costs Net Benefits
197
transform*
Making change stick

2007/8 0.00 -8.11 -8.11 2008/9 6.76 -21.67 -14.91 2009/10 12.51 -21.76 -9.25 2010/11 19.09 -12.36 6.73 5 Year Cumulative Costs (m) 5 Year Cumulative Benefits (m) 2011/12 31.59 -5.14 26.45
Legend
Project Cash Flow Gross Benefits (m) Costs (m) Net Benefits (m)
69.04
69.94
Year 5 Staedy State Gross Benefits (m)
31.59
It is also important at this stage to present the assumptions in the model. The model is still at a high level and therefore will have many assumptions that will need to be validated through the design stage.

Outputs & Deliverables D5.1 - i: Programme Benefits Case Documentation of the benefits case for the programme often in a balanced scorecard approach. Documentation of the high level costs profile of the programme. Programme plan that has been tuned to take account of investment requirements, etc. Programme Risk Assessment. Financial model of the overall programme. Consolidated overall outline business case.
D5.2 - i: Programme Cost Profile D5.3 - i: Updated Programme Plan
D5.4 - i: Risk Assessment D5.5 - i: Financial Case D5.6 - i: Outline Business Case
Benefits
Builds a high level business case for transformation that has the buy-in of the organisations business units. The organisation is ready to transform.

The capability to develop individual and consolidated business models; Understanding of the risks of transformation; and Development of a high level business case.
198
2009 by PricewaterhouseCoopers LLP
All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means or stored in a database or retrieval system, without prior written permission of the publisher.
COPYRIGHT 2009 PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP has taken all reasonable steps to ensure that information contained herein has been obtained from reliable sources and that this publication is accurate and authoritative in all respects. However, it is not intended to give legal, tax, accounting or other professional advice. If such advice or other expert assistance is required, the services of a competent professional should be sought.
2009 PricewaterhouseCoopers LLP. All rights reserved. PricewaterhouseCoopers refers to the PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

1 - Transform - Assess v1.1 FINAL

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

1 - Transform - Assess v1.1 FINAL

Enviado por

Direitos autorais:

Formatos disponíveis

Version 1.

powered by Making Change Stick

A Delivery Framework for Large, Complex Programmes

Making change stick

A Delivery Framework for Large, Complex Programmes

Making change stick

A Delivery Framework for Large, Complex Programmes

Stakeholder Engagement ........................................... 101 Communications ......................................................... 109

2009 by PricewaterhouseCoopers LLP

Making change stick

A Delivery Framework for Large, Complex Programmes

Create Case for Change and scope initiatives

Detailed Design, TOM and Quick Wins

Build the new ways of working, and design rollout

Rollout new ways of working and ensure benefits are realised

Operate new organisation and implement continuous improvement

There are four Phases within Assess:

Making change stick

A Delivery Framework for Large, Complex Programmes

A1: Review Strategy & Drivers A3: Consider Operational Locations

A2: Customer /Market Needs & Insights A4: Legal, Regulation

D1: Agree Evaluation Criteria

D5: Outline Business Case

A6: Supply Chain A5: Legal Structures & Taxation

C C C12: Leading Practice Gap Analysis and Benchmarking

D3: Develop High Level Target Operating Model

C5: Review Existing Physical Locations C6: Review Facilities Principles

D4: Agree Improvement Opportunities

D2: Opportunity Evaluation

C7: Customer / Market Analysis C8: Review Service Metrics / KPIs

Change Enabling People & Programme Management Technology Organisation Delivery

C9: Review Organisation Standards & Policies

C10: Review IT Principles

C11: Data Review

B: Benefits, Project, Programme and Change Management

B16: Communications B14: Resource Planning

B10: Best Fit Change Approach B1: Project Initiation

B11:Transformat ion Vision

B12: Change Leadership & Organisational Capability B4: Programme Governance

B13:Transformation Capability Route map B5:Programme Set-up

B2: Project Governance

B3: Project Management

Making change stick

A Delivery Framework for Large, Complex Programmes

Best-fit change approach Involvement

Benefits Making change stick

1.4 How to Access Reference Materials

Making change stick

A Delivery Framework for Large, Complex Programmes

How to apply Value Chain Consulting (VCC) methodology

Making change stick

A Delivery Framework for Large, Complex Programmes

A Determine Business Needs & Benefits

Background Information Strategic Documents Vision Business Plans

Inputs i.e. existing documents

A2 - i: Updated Transformation Principles (with Customer / Market Insight)

A1: Review Strategy & Drivers A3: Consider Operational Locations

A6: Supply Chain A5: Legal Structures & Taxation

Updated Transformation Principles

Background Information Strategic Documents Vision Business Plans Transformation Principles

A3 - 2: Vision of Future Operating Models

Updated Transformation Principles

Updated Transformation Principles