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Alan from HCL on Managing Business Changes at PM Conference India 2009
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Alan from HCL on Managing Business Changes at PM Conference India 2009


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Alan from HCL on Managing Business Changes at PM Conference India 2009

Alan from HCL on Managing Business Changes at PM Conference India 2009

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  • Creditability
  • Credibility of the Case study and HCL Axon
  • … a fundamental rethinking and radical redesign of the business. Unlike gradual improvement, Business Transformation is NOT only about: “ How can we do what we do better/cheaper/faster” It is about asking questions like: “ Why do we do what we do at all?” “ Why do we want to do it this way?” It is about asking: “ How do we make a significant difference to our customers?” “ Why can’t we pay all our suppliers as soon as we receive their invoice?”
  • Establish a firm foundation for the other transformation programmes by: Introducing integrated back-office processes and systems Providing consistent and reliable management information Beginning the cultural change journey and surfacing the broader change management challenges facing the council Deliver efficiency savings which make the overall programme affordable £883 million of benefits over 10 years of which £541 million are cashable £400 million of cashable benefits delivered by the end of November 2009 The remaining £141 million will largely be delivered in by FY 2010/11
  • Measuring, although important, is not enough on its own We have found that value should be ‘designed in’ to the project lifecycle, and not simply ‘inspected in’ post go-live From our survey results, we found that companies with the most mature VR approaches understand this and use the concepts to their advantage However, even these companies have areas where they could improve significantly
  • Transcript

    • 1. Program Management in Managing Business Changes Alan Guthrie Senior Global Programme Director and Head of Global Delivery Enablement HCL AXON
    • 2.
      • HCL AXON’s expert in Global Programme Management, Methodology and Global Delivery
      • Member of HCL AXON’s European and Global Delivery Management Boards
      • 16 years experience in delivering global SAP business transformations having worked in twenty one countries
      • In multiple industries: healthcare, public sector, manufacturing, retail, facility services, pharma, financial services, telecommunications, utilities, and professional services
      • Including key global clients as: BP, GlaxoSmithKline, TXU Energy, AIA, ISS Facility Services, ADC Telecom, & Volvo
      Introduction ALAN GUTHRIE Senior Global Programme Director & Head of Global Delivery Enablement HCL AXON [email_address]
    • 3. HCL AXON – World’s largest dedicated SAP Business Transformation consultancy $600m Revenue • 4,700 staff • 25 Countries • 60 Offices • 15 Global Delivery Centres North America 1025 Consultants APJ 925 Consultants Latin America 75 Consultants FINLAND Broomfield Europe 1000 Consultants India 1375 Consultants Africa 100 Consultants ANZ 200 Consultants
    • 4. SAP-enabled Business Transformation Innovation
      • 600 Transformation experts
      • Supply Chain Re-engineering
      • £100’s million benefits
      • BPO & Shared Service in Parallel
      MCA Consultant Award 2008 “ The most experienced SAP consultants in the market” SAP European Quality Awards: Best project award every year for last 3 years Voted Number 1 for Customer Satisfaction Business Transformation
      • Thought leadership with SAP:
      • iMRO, iCREW, Clinical Trials Mgmt
      • Ramp up Partner for all new apps
      • SAP firsts:
      • 1st EMEA Special Expertise Partner for BI 7.0
      • 1st European mySAP CRM
    • 5. Agenda
      • What is Business Transformation
      • Why Benefits Realization
      • A Case Study
      • The Benefits Realization Approach
      • Key Success Factors
      [email_address] ‘ Programme Management in Managing Business Change’ HCL AXON Business Change = Transformation and Benefits Delivery
    • 6. What is Business Transformation?
    • 7.
      • … fundamentally changing form or shape
      • … becoming something different
      • … doing different things ( not doing things differently)
      • … behaving differently
      • … being viewed by others as something different
      Transformation is…
    • 8.
      • … making small changes
      • … fixing problems
      • … adding a new process as a bolt-on
      • … tweaking a process to improve it slightly
      Transformation is not… The above constitute continuous improvement. Transformation, on the other hand, involves a ‘Step change’
    • 9. Define what you mean by transformation so you can focus on the right activities transactional transitional transformational cultural change required Low High less manual work required through online invoice approvals and automated payments resulting in fewer FTE’s required less manual work required as majority of suppliers provide electronic invoicing resulting in fewer FTE’s required less manual work required as majority of suppliers self invoice triggering automatic payment resulting in fewer FTE’s required taking accounts payables as an example… stakeholder value created Low High
    • 10. Why Benefits Realisation
    • 11. Most IT-centric projects do not deliver their expected Business Benefits 40% of ERP projects failed to achieve their business case within 18 months of going live The Conference Board Survey “ ” Companies that did achieve benefits declared it took at least 6 months longer than expected to receive these Gartner “ ” 46% of respondents felt that their organization did not use the ERP application to improve the way they conduct business Robbins-Gioia ERP Survey “ ”
    • 12. A Benefits Realisation approach is critical to delivering expected Benefits The critical dimensions of Programme Delivery Time to deliver Scope of program Cost of program Value created by program Benefits Realisation directly links the Realisation of business outcomes with the program Benefits Realisation shapes the scope of the program through Benefits led design Benefits Realisation aligns the cost and scope of programs around the Benefits, maximising return on investment Benefits Realisation facilitates the client gaining approval for their investment
    • 13. A Case Study
    • 14. Background on Birmingham
      • The City
        • Greenest city in Europe – more parks and trees than anywhere else
        • Cleanest city in Europe – 2000 miles of roads swept…
        • Diverse population (30% minorities)
      • The Council
        • Budget of nearly $5 billion
        • Over 1000 locations
        • A $2B property portfolio (30% social housing)
        • Over 250 services and revenue streams
        • 55,000 employees
        • 121 Councillors
      Birmingham City Council is the largest in Europe, with over 1 million citizens – a large and complex organisation
    • 15. Why Benefits Realisation was critical to BT at the council Objective : To ensure that Birmingham City Council is able to achieve the two core outcomes driven by the CST Project:
      • Goal :
      • Deliver efficiency savings which make the overall programme affordable
        • £883 million of benefits over 10 years of which £541 million are cashable
      • Status:
        • £400 million of cashable benefits delivered by the end of November 09
        • The remaining £141 million will largely be delivered in by FY 2010/11
      Balance the budget Provide funding for the other Transformation programmes
    • 16. Scope of ‘CST’ Corporate Business Management Procurement & Payment (P2P) Recording & Reporting (R2R) Collecting Cash (S2C) Support Services Turning strategy into delivery; business planning; setting budgets; monitoring and reporting progress of service and project performance. Radically improving the efficiency and effectiveness of our procurement activities. Making it easier for customers to pay for goods and services provided by the Council. Making sure our financial information is up to date consistent and easy to access from one source so that decisions can be made faster. Making sure we have the right systems and skills to support all the planned changes. The scope included all key finance and performance processes across all Directorates and had direct impact on more than 5,000 people Directorate 1 Directorate 2 Directorate 3 Directorate … Corporate Services Transformation 30% fewer invoices Central receipt of invoices from suppliers Scanning of invoice by central BCC team Monitor contract performance & ability to channel spend e.g. to local businesses Supplier bids submitted on-line to enable fair & robust contract bidding Electronic file from large suppliers Supplier contract negotiation and use of purchasing power Procurement cards to ensure easy and transparent spending The procure to pay process introduced streamlined processes that make effective use of technologies to achieve better control of spend
    • 17. Split of cashable Benefits = £357m Cashable
    • 18. The Benefits Realisation Approach
    • 19. From the outset a non-emotional, objective story needs to be developed Align Top Management
      • Agree the key business drivers for benefits
      • Sign off top down to get accountability
      Ensure Accountability
      • Understand the detailed benefits areas
      • Sign off benefits cards
      • Agree benefits realization plans
      • Agree review and tracking mechanism
      Integrated Process Design
      • Ensure functional design optimizes the Realisation of the identified benefits
      • Use SMEs to prove the benefits with business owners
      Top Down Bottom Up
    • 20. The story needs to be told in terms the business understands Customer Operations Field Operations Back-Office Customer Satisfaction Customer Acquisition First Call Resolution Customer Retention Call Center Efficiency IT Costs
      • % Call Completion
      • Average Off-Call Time
      • Average Call Handle Time
      • Call Volume
      • IVR Call Resolution Rate
    • 21. The story needs to create ownership and action
    • 22. HCL-AXON have a proven method for ensuring the Realisation of Benefits Program Governance Activity Benefits Tracking and Reporting Benefits Management Benefit Recognition Benefits Identification Outcome Key Tasks Everyone knows where they stand on Benefits Program & BenefitOwners ensuring delivery Realisation of the benefits Everyone knows what’s expected of them
      • Production of reports for:
      • Programme Board
      • Benefits Board
      • Wider comms to the business
      • Prepare Benefits Owners
      • Regular benefits boards
        • Issue resolution
        • Risk mgt
      Ensuring benefit recognition is actioned and communicated within the business
      • Identify, Validate Benefits
      • Plan enablement of Benefits
      • Determine realisation methodology
      • Benefits report into a program on a regular basis and follow the program governance reqts
      • Any material change to Benefits levels gets managed through Change Control
      Outputs All-levels weekly exception reporting Enabled Benefits Cards Budgets adjusted or performance improvement recognised Agreed Benefits Strategy, Cards & Packs
    • 23. Integrated Transformation & Benefits Method
    • 24. The Benefits Realisation phases run across all stages of a program The HCL AXON Business Transformation Programme Lifecycle Benefits Tracking and Reporting Benefits Management Benefit Recognition Benefits Identification Identify Initial benefits are identified pf SAP. There are typically +50 qualitative and quantitative benefits Validate The impact of the benefits on People, Process, Organisation and Systems is assessed Enable The benefits realisation program is designed which may include input into the common design, Realise The realisation of the benefits including removal of targets from budgets Strategic Need Initiation & Visioning Scoping & Planning Design & Blueprint Realisation Final Preparation & Go-Live Stabilisation Benefits Realisation Strategic Outcome Go Live
    • 25. Key Success Factors
    • 26. Set a realistic baseline and be realistic about the phasing of Benefits Rationale for exclusion for baseline Number of invoices Total number of invoices n/a 100,000 To be consolidated through e invoicing, etc Fewer number of paper invoices as they move the e invoicing 28,000 Capital invoices Need to approved offsystem as require Quality Director sign off 15,500 One offs Occasional purchasing done ad hoc 1,200 Net baseline 55,300
    • 27. To facilitate Benefits sign-off separate the principles from the data
      • Setting a baseline is critical but be sensible about it
        • one of the reasons you are transforming is to get a clean data set so work with what you have
      • Apply an evidence based approach for all inputs
        • often challenges to the data are based on perception versus reality. If your data is evidenced apply the same logic to all challenges
      Business transformation is no different than any other type of service design – principles need to be agreed before work starts Once the principles have been agreed data can be reviewed against them Inevitably once a “point of discussion” arises regarding the data refer back to the principles Once the baseline is set and agreed it should not change unless there is material reason to do so
    • 28. Establish a strong Governance & Engagement Model Strong governance was needed to be proactive, flexible and swift. CST governance connected all key stakeholders.
    • 29. Establish a cross client governance body to Validate and endorse Benefits
      • Create a Benefits Realisation Board
      • The membership of this board should primarily be non-Finance, non- IT staff
      • Scope
        • review background to proposed PROGRAM activities, assumptions & progress to date against Realisation plans
        • establish key principles/ground rules
        • identify key issues for resolution & agree timescale/process/accountabilities
        • communications & stakeholder engagement including key messages & mediums
      • Interactions
        • recommend change to targeted efficiency savings and outcomes, dedicated resources & targets
        • act as an escalation point for resolution of key risks & issues
        • link back into the departments through the representatives
    • 30. Consultation and communication about Benefits is critical June July August September October Nov December January February March Programme timeline
      • Twenty three Benefits Realisation Boards (BRB) were held with cross department representation between June 2007 and March 2008
        • If any Benefits were questioned a client representative from a department was appointed to review the data inputs and approach taken
        • Regular “Benefits Update” emails and Benefits Realisation Packs were distributed throughout departments
      Benefits Realisation Packs were distributed throughout departments Benefits Realisation Deployment Workshops were held with 100 senior client staff Thirty four meetings held with BT Finance Managers, SFOs and deployment managers, as well as department staff supporting the implementation All materials, include a client wide and by department matrix of responsible staff for Benefits was handed over to the BT program Director, CFO and CIO on March 28 35 copies of the ‘Benefits Folder’ distributed to BRB members, Departmental Heads and has been available on intraweb since early 2008
    • 31. Stakeholder Management will guide influencing and approval efforts
    • 32. Plan to track and monitor progress of Benefits Realisation
    • 33. Summary
      • Enough of me
      • Let’s hear it from our clients talking about their success in managing business change outcomes and delivering benefits with HCL AXON
    • 34. Program Management in Managing Business Changes Alan Guthrie Senior Global Programme Director and Head of Global Delivery Enablement HCL AXON [email_address]