Implementation Canvas - Reduce Risk http:\\ennova.ca

Implementation Canvas
A platform for developing risk-reduced implementation plans

Hi, I’m Digit

Today, I’m here to talk to you about. . .
Business Change
Implementation

This presentation is about using a common platform to design and manage the implementation of a business change.

Let’s start with. . .
“What is an Implementation Canvas?”

The Implementation canvas is a visualization tool that helps teams design and manage change projects to reduce the costs associated with failure, while increasing the rewards and likelihood of success.

By using a common platform to describe the implementation of a business changewe can . . .
. . . have a common language to describe our projects.

. . . make better decisions about the fit of a change to our overall strategy.

. . . increase the speed of our change projects.

. . . reduce the risks associated with their implementation.

. . . and don’t forget, we can increase the rewards too.

. . . use it manage a portfolio of business changes faster and more effectively.

Okay, we're convinced.
A common platform to describe business change implementation would be great.
But what is this platform?

Scale – (Why)
The implementation canvas starts with the scale of the project. Why it’s necessary.

Scale – (Why)
Organization (How)
Next, it describes how the project is organized and managed.

Scale – (Why)
Activities
(What)
Organization (How)
That’s it, only 3 categories?
Finally, it describes the activities that are required for success.

Scale – (Why)
Activities
(What)
Organization (How)
There’s more.
Nine factors define the key relationships between these three areas.

Scale – (Why)
Activities
(What)
1. Scope
Organization (How)
First, what is the scope of the project? How much of the business does it impact and what are you trying to achieve?
Makes sense.
What is this project about?

Scale – (Why)
Activities
(What)
1. Scope
Organization (How)
2. Risks
Strategic
Operations
Project
Second, based on the scope of the project what are the risks to the:

host entity (strategic),
the business model (operations)
and the project itself?

Scale – (Why)
Activities
(What)
1. Scope
Organization (How)
2. Risks
3. Rewards
Financial
Customer
Process
Learning
Third, what rewards are you expecting the project to deliver?

Scale – (Why)
Activities
(What)
1. Scope
Organization (How)
3. Rewards
2. Risks
4. Structure
Four, how will the project be funded, structured and protected from negative influences?

Scale – (Why)
Activities
(What)
1. Scope
Organization (How)
3. Rewards
2. Risks
4. Structure
5. Team
Five, who will become the diverse, creative, energetic evangelists that make up the team?
Oh! Oh!
Can I join?

Scale – (Why)
Activities
(What)
1. Scope
Organization (How)
3. Rewards
2. Risks
4. Structure
5. Team
6. Process
Six, how will the tension between maintaining speed and momentum versus failing the project when it doesn’t achieve success hurdles be managed?

Scale – (Why)
Activities
(What)
1. Scope
Organization (How)
3. Rewards
2. Risks
4. Structure
5. Team
7. Uncertainties
6. Process
Seven, what are the critical uncertainties stemming from the risks and rewards that need to be resolved to ensure project success?

Scale – (Why)
Activities
(What)
1. Scope
8. Actions
Organization (How)
3. Rewards
2. Risks
4. Structure
5. Team
7. Uncertainties
6. Process
Eight , what rapid low-cost experiments, prototypes, learning etc. are run to reduce the prioritized uncertainties to known quantities?

Scale – (Why)
Activities
(What)
9. Costs
1. Scope
8. Actions
Organization (How)
3. Rewards
2. Risks
4. Structure
5. Team
7. Uncertainties
6. Process
Great. Can you show us an example?
Nine, what are the costs associated with the actions, and of failure?

Sure, but before we talk about that, take a moment to review the implementation canvas.

I’m sure you know Apple and the iPod. .
And Sony and their MP3 player.
Yeah, except Apple launched the iTunes Store and Sony just launched with the player.
I wonder why?

It could be as simple as Sony didn’t think about it.
But let’s use the canvas to see why else they might have done what they did.
Okay

In 2003, Sony was a large music label company suffering from pirating.
An e-based distribution network represents a significant departure from how they normally do business.

Significant distribution changerequiring new e-commerce skills
New business model requiring new e-commerce skills

It’s an entirely new business platform for Apple too.

Sony might see mixed rewards as an e-store platform could simply cannibalize their existing sales.
However, it might slow pirating and add additional sales from new customers

Sony e-store sales cannibalize existing sales
Could slow pirating
Medium reward

All sales incremental
High reward
For Apple, all sales would be incremental.

Sony opening an e-store would likely cause a revolt in existing channels.
Divisions responsible for channel sales would push back.
“Why are we hurting our partners?”

Distributors revolt
Company resists
High Risk
Could slow pirating
Medium reward
No conflict with company
Low risk

High reward
For Apple, the new business model has no such conflict with channels or the organization.

The both face similar risks in access to music.
Will the music labels sell through them?
Sony has its own music. But the other labels are competitors.
However, sales are down so everyone needs sales.

Distributors revolt
Company resists
High Risk
Could slow pirating
Medium reward
Low risk

High reward

Music label companies won’t sell through them
High Risk

Let’s call it a wash and say high risk

To respond to these risks Sony would need to create strong separation between the existing organization and the project to protect it.
This will drive up cost of implementation.

Separation increases costs
No extraordinary costs
Distributors revolt
Company resists
High Risk
Requires separation from organization to protect it
Could slow pirating
Medium reward
Uses normal innovation structures and team
Low risk

High reward

High Risk

Apple can structure as a normal project with normal costs.

Distributors revolt
Company resists
High Risk
Could slow pirating
Medium reward

Finally, they would both face the critical uncertainty of will consumers buy through this new channel?

Low risk
Will consumers buy through a new e-platform

High reward

High Risk

Distributors revolt
Company resists
High Risk
Could slow pirating
Medium reward

So now let’s compare the implementation profiles of Sony and Apple.

Low risk
Will consumers buy through a new e-platform

High reward

High Risk

Distribution revolt
No access to music labels

It’s no wonder Sony just launched the player by itself.
It’s risk/reward profile was far worse than Apple.
More risks items for an inferior gain.

Few incremental sales
Company pushes back
Consumers won’t buy
No access to music labels
Consumers won’t buy

It’s not enough to have a great idea.
Your implementation profile determines your risk/reward.
And that determines whether the project will get traction.
So maybe it wasn’t just because they didn’t think about it.

So, that’s what business change implementation is all about.

Imagine if your organization had a common methodology for how to implement change?

What value could you unlock?

If you’d like more info.
Call us and ask for John.
Tell him Digit sent you.
Ennova Inc.
Toronto, Ontario
1-888- 6ennova
905-294-8050 (local)
John @ennova.ca
We’ll send you a free starter kit.

Sorry, I’m busy listening to a great podcast from iTunes.
Hey Digit, can you give me a hand with this?