2 CHAMPS2 Contents Foreword from Richard Pharro, 3 CEO, APMG Introduction 4 Achieving Transformation 5 Introducing CHAMPS2 6 Eight Phases of CHAMPS2 7 Proven Transformation 9 Conclusion 10 Further information 11
3Foreword from Richard Pharro, CEO, APMG benefit-led change. Traditional business change approaches are focused on improving processes, addressing problems and facilitating project delivery rather than service design. Developed by a joint venture between Birmingham City Council (BCC) and Capita to support a major transformational programme at the Council, CHAMPS2 helps businesses define a clear vision and provides a method or pathway to help realise the vision and measurable benefits. And the benefits are tangible: BCC’s Customer First programme is in the process of realising £321 million of benefits over ten years, for an investment of £175 million; Corporate Services Transformation is on target to achieve £860 million of benefits over ten years, for anOrganisations across the public and private investment of £144 million; and Excellence insectors are facing unprecedented budget cuts. People Management is in the process of realisingYet, at the same time, they are being tasked with £289 million of benefits over ten years for animproving their competitive position and, where investment of £81 million.necessary, addressing failures in key areas. This white paper takes a close look at the needGiven the scale of the requirements, simply for transformational change and the challengestinkering with the current business may not organisations face. It highlights the importancebe enough and could jeopardise performance. of leadership and the need to take a visionaryOrganisations need to embark upon radical approach to service design. It also outlines thechange that delivers a transformation of services. eight-phase CHAMPS2 model, from definingBut how can that change be achieved successfully the vision to aligning an organisation’s people,and deliver quantifiable benefits, whilst processes and technology with the businessmanaging risk? strategy and supporting a benefit-led approach to realising objectives.How can organisations ensure they achieve, notonly the quick wins required to support initial It is by adopting a proven change method thatcost saving goals, but also sustain commitment organisations can manage the risk associatedfrom within the business? The aim is to ensure with transformational change and are far morelong term objectives and associated benefits are likely to successfully deliver innovation andachieved, from improved customer services to quantifiable transformation.better employee productivity or a step change inorganisational efficiency.The challenge for organisations is to adopta method that prompts visionary thinkingand helps to capture this vision and support
4 CHAMPS2 Introduction SETTInG THE SCEnE So just how are organisations to meet the Following two years of significant cuts in forthcoming challenges without resorting to spending across the private sector, the public unfocused cost cutting measures that drastically sector is now entering an era of extraordinary affect the service provided to customers? financial pressure. But the demand is not for a knee jerk “slash and burn” approach to cost Given the scale of the current challenge, there is cutting. The government is not only expecting a clear need to undertake a real step-change in cuts of up to 25% to be achieved through the quality and cost of delivery of services. And backroom efficiency savings; organisations to achieve this, organisations cannot settle simply are also tasked with delivering incremental for improving on what is delivered today, but improvements in front end service delivery. With must create a vision of something fundamentally the private sector similarly tasked with both cost new. And to reinforce a culture of successful containment and improving competitive position, change, these organisations also need a precise it is no surprise that virtually every organisation way of managing the risks associated with has transformational change on the agenda. transformation. But what does this mean in practice? Too Yet, while there are a number of change many projects are labelled transformational management methods around, they focus on change, when the reality is anything but eliminating problems, streamlining processes transformational. Simply tinkering with and the nuts and bolts of project delivery. models of service delivery rarely achieves any Organisations have, to date, lacked an approach fundamental, long term benefits – and the that supports the creation and delivery of radical profits associated with implementing this type of service redesign. Without a method that delivers change are often not significant. the vision of a new service, from defining the required outcomes to determining the measures Furthermore, delivering change is highly risky; used to realise those outcomes, organisations with few projects truly realising the original may struggle to achieve this step change. objectives. Indeed, according to figures from the Boston Consulting Group, on average 71 percent of major changes programmes fail to deliver the benefits on which they were originally predicated.
5Achieving TransformationA nEw ATTITudE TO CHAnGE However, middle management is rarelyMost organisations should now have the empowered to make the decisions required totools, processes and people in place to enable facilitate change of this magnitude. It is thecontinuous improvement. But transformational leaders at the top of the organisation who havechange is different. Transformational change access to information that supports the creationdrastically improves the chances of meeting new and implementation of strategic change - it isbudgetary targets without affecting the quality therefore essential to get buy-in from them, fromof front line service delivery, or undermining local council cabinets to a board of directors.competitive position/profitability. Indeed, theapproach should be one of achieving innovation With strong leadership, an organisation can useand efficiency improvements, to create a culture CHAMPS2 to ensure innovation aligns with theof sustainable improvement in service provision/ strategic direction and that the business case iscompetitive position. justified. It is vital to ensure the transformation makes the expected difference to customers, staffSo what does this mean in practice? At the heart and/or costs.of transformational change is a new vision.Organisations need to ask new questions; to Indeed, senior level staff are committed to ensureconsider complete service/ product redesign and benefits realisation remains at the heart of thecreate a long term vision of services/products/ change programme. But benefits realisation alsoprocesses. This involves not only thinking about requires a structured approach. A method cancreating innovative, often cross-functional support the organisation to create the vision andprocesses, but also taking the opportunity to plan, develop, and achieve the deliverables. Butimprove technology, process and organisation as it must also support a benefits-led approach atpart of the overall change to foster a culture of every stage. The cost/benefit equation shouldtrue innovation. be refined throughout the operating model and processes designed to ensure subsequent changesAt this stage, individuals across the organisation support the original vision and that all benefitshave the chance to define leading edge service are realised.models; assess the role the latest technologiescan play in improving communication and But organisations need not only to improve theenabling effective working practices; and debate chances of successful transformation projects,the viability of cross-function collaboration thus increasing corporate confidence, but also toto streamline processes. The challenge is to facilitate the creation of a repeatable model ofachieve this innovation and define the vision in a success; developing a culture that welcomes andstructured, repeatable manner. seeks out change.Even tougher is to ensure the focus is sustained, With this culture, an organisation can beespecially in an era of extraordinary financial confident that day to day changes are undertakenpressure. Too many projects achieve an initial within a proven framework, conforming with thecost saving, through a surge in productivity, corporate vision or the communications strategy,headcount reduction or streamlined processes. for example. Every change occurs within theBut the key to transformational change is to context of the bigger picture.sustain focus beyond the initial achievements.It is essential, therefore, to put in place a model Creating this culture of successful change willthat supports the realisation of benefits to ensure support organisations not only in achievingthe long term vision and attendant benefits are extraordinary budget targets without damagingachieved. front line service delivery, but also in facilitating the simultaneous improvement of services.
6 CHAMPS2 Introducing CHAMPS2 ExPlAInInG THE PHIlOSOPHy Using the CHAMPS2 framework, organisations So how can a method support organisations can create the vision but, critically, also ensure undertaking transformational change? the programme defines and refines benefits at CHAMPS2’s background in meeting the needs of every stage. The vision is supported by defined the modernising government agenda ensures the outcomes; with each outcome linked to key, method focuses heavily on service redesign. demonstrable benefits. The framework prompts the organisation both to define the required CHAMPS2 was developed in response to the outcomes, and the measures that will be used need for transformational change identified to demonstrate whether or not outcomes and at Birmingham City Council (BCC) several years benefits are achieved. ago. The Council, the largest local authority in the UK and the second largest council in Europe, Taking this approach ensures CHAMPS2 can had identified several business areas that were support an organisation in managing risk and underperforming and embarked upon an in sustaining its focus on realising benefits ambitious process of business transformation, throughout the programme lifecycle. The model with a strong focus on citizen services, cultural is split into 8 phases [see box]. The first phases change and efficiency gains. take the organisation through the development of the business case, from strategic, outline To support BCC in this transformation, a joint and revised. This provides an organisation with venture was created between the Council a comprehensive business case, supported by and Capita. A single approach to business detailed outcomes, plus the costs and benefits of transformation was required that would provide the new approach. consistency across the Council and its partners. Adopting the common approach across the In the middle phases of the CHAMPS2 partnership was designed to establish a common programme, the solution is designed, language, reduce duplication of effort, provide developed, tested and improved before it is best practice tools and templates and minimise fully implemented.Throughout these phases, the risks and reduce cost. outcomes and benefits models are continually refined and benefit ownership is then allocated The common approach provided programme to ensure specific individuals are tasked with the teams with a best practice and benefits-driven responsibility for achieving these outcomes. method, tools and templates, complemented by a quality management framework. This became The last two phases of CHAMPS2, arguably the known as CHAMPS2. most crucial ones, focus heavily on realising these benefits. Monitoring and alerting is used to raise CHAMPS2 is designed to embed good practice in awareness of any problems in achieving benefits change management and leadership. It supports delivery, allowing the organisation to undertake an organisation from the initial identification of rapid review and reallocation of resources the strategic need for change all the way through or skills as required to ensure the benefits planning and design to benefits realisation. realisation gets back on track.
7Eight Phase of CHAMPS2PHASE 0 Transformation Initiation Identifying the need for change and establishing the strategic outcomesPHASE 1 Vision Defining the organisation’s vision, including specific outcomes, and developing a model for future business operationPHASE 2 Planning Planning how the business change will be achieved, defining governance and developing a full cost benefit casePHASE 3 design Determine the solution and supporting technologies required to deliver the defined outcomesPHASE 4 Service Creation Delivering the design, with new organisation and Realisation structures, policies, procedures and technical solutionsPHASE 5 Proving and Transition Managing the go live processPHASE 6 Stabilisation Consolidating and realising the first benefitsPHASE 7 Benefits Realisation Ensuring subsequent changes support the original vision and that all benefits are fully realised.
8 CHAMPS2 In essence, the adoption of CHAMPS2 can create Achieve high standards of programme an environment and framework that facilitates delivery through the quality management fundamental change and improves the chances framework integrated within the method. of successful delivery of benefits. By adopting this model, organisations can: Provide a common language for programme teams and stakeholders across all change deliver Benefits – the essence of CHAMPS2 initiatives. It is likely there will be many is creating a vision statement supported by aspects to change, from new technology to concrete, tangible outcomes that can be buildings; CHAMPS2 allows the incorporation delivered incrementally, such as ensuring of existing strategies and methods within the every child has access to a specific service or organisation, such as Quality Assurance or employee productivity is clearly targeted. The procurement. benefit is, therefore, the difference between today’s outcome and tomorrow’s. And this is Flexible Model: This approach can key: transformation only makes sense if the be tailored to fit all sizes of projects or difference is noticeable to customers, staff or programmes. Indeed, it can be applied to non- the bottom line. transformational projects, delivering benefits whilst also providing a framework that ensures With a business case based on cost benefits, all changes occur within the context of the organisations can balance far-reaching transformational objective. aspiration with concrete, achievable, validated outcomes to ensure incremental benefits are Ensure leadership control – CHAMPS2 delivered throughout the transformational includes comprehensive approval gates. journey. Build internal change management Mitigate risk – CHAMPS2’s structured capability within the organisation; the approach to logical design, detailed design, leadership commitment combined with creation and testing ensures greater insight business area participation is key to is gained at every stage, providing greater overcoming resistance to change, creating confidence in the realisation of benefits. With broad experience of successful change and this model, organisations can deliver a solution reducing reliance on external consultants that works and integrates processes, the organisation and technology. Reduce cost (and risk) by providing clear guidance, tools and techniques. CHAMPS2 is designed to guide organisations to make decisions at the right time, in the right sequence.
9Proven TransformationTHE BIRMInGHAM CITy COunCIl Employees – Excellence in PeopleSTORy Management (EPM)Birmingham City Council (BCC) is the largest local EPM is in the process of realising £289 millionauthority in the UK. In 2003, the Council was far of benefits (£148m cashable) over ten yearsfrom the forefront of local government service for an investment of £81 million. The aim is todelivery. Indeed, it was deemed to be one of the transform the Council into an authority wherelowest – one on a scale of one to four, with few staff use their talent, energy, and commitment toprospects for improvement. serve the public and improve services. A flexible, agile and competent workforce thatHaving embarked on the process of significant drives service improvement and efficiencytransformation, the Council developed an Clear objective and target setting foroverarching vision, including measurable individuals which will allow the Council tooutcomes to be delivered: maximise and reward contributions To achieve a step-change in the quality of A consistent performance management services, placing BCC in the top decile compared framework with timely, accurate, and accessible with other UK local authorities, with an management information. emphasis on significantly increasing customer satisfaction Efficiencies – Corporate Services To deliver a 15% productivity improvement Transformation (CST) To increase employees’ job satisfaction, again Corporate Services Transformation has placing BCC in the top decile of UK local transformed internal financial services across the authorities. council. BCC is on target to achieve benefits of over £860 million (£518m cashable; £342m nonSince the initial business change programmes cashable) over ten years, for an investment ofwere implemented in 2006, BCC has seen £144 million.substantial improvements in services forcustomers. In addition, the council has achieved When completed, the Council will have:significant efficiencies and savings that today Delivered new cross-council financial andmake further business change possible across the procurement operationsCouncil. CHAMPS2 has been key to enabling this Renegotiated supplier contracts and gainedtransformation and has become embedded in efficiencies in service and costsBCC’s transformational change culture. Replaced manually intensive tasks with automated and centralised processesCustomers – Customer First Trained over 3,000 personnel in new ways ofThe Customer First programme is changing the working.way the Council interacts with its customers.It is in the process of realising £321 million ofbenefits (£197m cashable) over ten years for aninvestment of £175 million. Streamlined customer services with one point of contact with first time resolution A single point of contact through channels of choice Real-time information on the progress of customer requests.
10 CHAMPS2 Conclusion FACIlITATInG THE CHAnGES REquIREd By PuBlIC And PRIVATE SECTOR ORGAnISATIOnS TOdAy The need to change the way our organisations operate has probably never been greater. Both public and private sector organisations are under constant pressure to become more efficient and effective. The focus is not just on cost savings but on driving efficiency while improving the quality of services for customers, as well as transforming internal employee productivity and performance. Incremental change is often insufficient; it is increasingly necessary to fundamentally rethink and radically redesign what we do. But embarking on transformational change is risky. Organisations need to build a culture of successful change and propagate best practice across the business. This requires strong, committed leadership plus a sustained commitment to realising benefits throughout the project. By adopting a proven change methodology that first helps define the vision and then aligns an organisation’s people, processes and technology with the business strategy and supports a benefit-led approach to realising objectives, organisations can manage that risk and are far more likely to successfully deliver innovation and quantifiable transformation.