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Keeping Business Momentum (PMI 2008)
1. Keeping your business momentum
during a major change
Hans Winterink, Marieke Snoep & Frank Gottenbos
Project Management Parade 2008 - T Mobile Netherlands BV
2. Agenda
Introduction
Challenges at start of integration
Context of change
Portfolio Management impact
Our solution
What success looks like
Project Management Parade 2008 - T Mobile Netherlands BV
4. 2. Challenges at start of integration
Type of integration required high focus in specific area’s.
PMI of Orange and T-Mobile can be characterised as
PMI of Orange and T-Mobile can be characterised as Focus, Focus Focus!
Focus, Focus Focus!
integration with high-level of change
integration with high-level of change
Highest level of change
Both companies merge Get senior management accountability involved.
Get senior management accountability involved.
into one new company
Acquiring company
High impact on all staff.
High impact on all staff.
integrates acquired
company Focus on speed so define and start required
Focus on speed so define and start required
Acquired brand and program as soon as possible.
program as soon as possible.
products remain
Create focussed and aligned targets for each
Create focussed and aligned targets for each
Acquired
products remain area.
area.
Acquired Use best of both parties.
Use best of both parties.
organisation remains
(structure, buildings) Put your best people on the job.
Put your best people on the job.
Acquired company Focus on day 1.
Focus on day 1.
becomes BU in
portfolio
Lowest level of change
Project Management Parade 2008 - T Mobile Netherlands BV
5. 2. Challenges at start of integration
Initiation of the integration program with its specific characteristics implied risks for
the running project portfolio
Integration characteristics
Integration characteristics Consequences for the portfolio
Consequences for the portfolio
Confidential start
Confidential start Size of portfolio more than doubled;
Size of portfolio more than doubled;
Strong content focus vs procedural
Strong content focus vs procedural Many projects with unusually short
Many projects with unusually short
timelines causing planning issues
timelines causing planning issues
Large scope, comprised large
Large scope, comprised large
number of change projects
number of change projects Resource conflicts, no questions
Resource conflicts, no questions
asked when ‘integration flag’ is
asked when ‘integration flag’ is
Speed is essential
Speed is essential
waved;
waved;
High management attention
High management attention
Decibel driven in stead of data driven
Decibel driven in stead of data driven
Exciting, high motivation
Exciting, high motivation prioritisation
prioritisation
Change in all area’s, affecting the
Change in all area’s, affecting the Unnecessary delays in running
Unnecessary delays in running
whole company
whole company portfolio.
portfolio.
Project Management Parade 2008 - T Mobile Netherlands BV
6. 2. Challenges at start of integration
The merger confronted us with some tough challenges in the area of portfolio
management
What do you do to keep your portfolio running when a lot of more urgent
activities appear for senior management?
How do you manage the risk of a strong internal focus?
How do you include a complete new program (over 80 projects) quickly into
your running portfolio to loose as little production time as possible and keeping
the high value running projects running according to plan?
How do you make transparent what the impact of the merger is on your running
portfolio and strategy?
How do you facilitate the right choices in the overall portfolio and not make the
mistake to implement a low value merger project vs a high value running
project?
Project Management Parade 2008 - T Mobile Netherlands BV
7. 3. Context of change
Four main challenges.
Common Challenges for Acquisitions
Define a new strategy
Define a new strategy Use as vehicle for senior
Drive performance excellence management alignment
Provide and validate
Provide and validate
– “do not take the eyes of the
ball” strategic direction as soon
strategic direction as soon
as possible
as possible
Cascade new vision
Cascade new vision
Keep businesses
Keep businesses throughout the
throughout the Create the new
Create the new
running
running organizations
organizations company
company
Maintain customer focus,
Maintain customer focus, Put in place the new
Put in place the new
minimize uncertainty
minimize uncertainty organization structure
organization structure
Maintain/improve service
Maintain/improve service Appoint committed and
Appoint committed and
levels
levels accountable managers
accountable managers
Solidify relationships with
Solidify relationships with Develop and speed up
Develop and speed up
sustaining dealers
sustaining dealers merged decision making
merged decision making
Keep key talent satisfied &
Keep key talent satisfied & processes
processes
productive throughout
productive throughout
Quickly capture value
Quickly capture value
merger
merger Secure targeted value
Secure targeted value
creation opportunities as
creation opportunities as Drive performance to
Set-up mechanisms
soon as possible
soon as possible excellencesmooth and
ensure – “do not
take the eyes of the of
effective execution
ball”
integration
Project Management Parade 2008 - T Mobile Netherlands BV
8. 3. Context of change
Program Objectives.
Main Program Challenges
Main Program Challenges Key Program Office Elements
Key Program Office Elements
Alignment of Senior
Alignment of Senior
Maximise Deal Closure // Leadership
Leadership
Maximise Deal Closure
Implementation Success
Implementation Success
Structure of
Structure of
the Program
the Program
Manage Complex
Manage Complex
Environment
Environment Coordination
Coordination
Processes
Processes
Baseline, Tracking
Baseline, Tracking
and Monitoring
and Monitoring
Manage the
Manage the Tools
Tools
Time of Participants
Time of Participants
Change
Change
Management //
Management
Communication
Communication
Plan
Plan
Project Management Parade 2008 - T Mobile Netherlands BV
9. 4. Portfolio management impact
Integration required change on all levels. To realise this a significant amount of
projects where defined, next to the running portfolio.
Strategic
level
Integration /
Tactical Running
change
level portfolio
projects
Operational
level
Key success factors integration Key success factors running business
Focus on speed. Clear prioritisation;
Answer WIFM (What’s In it For Me). Portfolio stability;
Solve issues quickly / make decisions swiftly. Quality of delivery.
Remain focused on customers and revenue.
Project Management Parade 2008 - T Mobile Netherlands BV
10. 4. Portfolio management impact
Integration portfolio was competing with running business portfolio, both impacting
same resources.
Running business Integration
Portfolio portfolio
Project Management Parade 2008 - T Mobile Netherlands BV
11. 5. Our Solution
In order to come to a manageable situation both portfolio’s needed to be managed as
an integrated whole.
Strategy Context
Project roadmap
milestones
Running business Integration portfolio
Portfolio
Communication and
Change Management
Operational Financial
KPIs targets
Project Management Parade 2008 - T Mobile Netherlands BV
12. 5. Our solution
Best practices methodology for Program Management
Program Best Practices
Program Best Practices
Activities are performed continuously throughout the
Activities are performed continuously throughout the
Continuous Program Management Functions
duration of the deal closure / implementation in an
duration of the deal closure / implementation in an
optimised way
optimised way
Business
Alignment
Schedules are observed, budgets are met
Schedules are observed, budgets are met
Change
Management Relevant messages are communicated to all
Relevant messages are communicated to all
Technology
Alignment stakeholders
stakeholders
Appropriate resources are allocated
Appropriate resources are allocated
Quality Issues and risks are managed comprehensively
Issues and risks are managed comprehensively
Assurance Progress
Program Tracking & Consistent and robust project management practices
Consistent and robust project management practices
Reporting
Management are employed
are employed
Risk Project objectives are clearly and quantifiably defined
Project objectives are clearly and quantifiably defined
Management Stakeholder
Communication
Project quality meets or exceeds expectations
Project quality meets or exceeds expectations
Business needs are reflected in the implementation;
Business needs are reflected in the implementation;
Issue business objectives are met
business objectives are met
Management Resource
Management Interdependent projects are coordinated
Interdependent projects are coordinated
Structured process for managing project meetings
Structured process for managing project meetings
Project Management Parade 2008 - T Mobile Netherlands BV
13. 5. Our solution
Integration portfolio needed to be integrated into standard portfolio management
process.
Portfolio governance board
Prioritise
Roadmapping Track & Manage
Ideas Project
initiation Analysis Design Delivery
120
60
100
50
80 Team A
Financiële bijdrage
40
60 Team B
30
40 Team C
20 Team D
20
10
0
-20
0 20 40 60 80 100 0
Strategische bijdrage Q1 Q2 Q3 Q4
Project Management Parade 2008 - T Mobile Netherlands BV
14. 5. Our solution
Normal project delivery process features structured interaction between ‘business’
and IT.
Start project
Business deliverables Corresponding IT deliverables
Project Intake Initial Evaluation
Business Requirements Feasibility Study
Detailed Business Requirements Detailed Solution Design
Test Cases Test Reports
Go/No Go decision Go-Live report
End project
Project Management Parade 2008 - T Mobile Netherlands BV
15. 5. Our solution
Relation of integration program management with normal portfolio governance. Line
management in separate roles to ensure focus on both sets of objectives.
Portfolio governance board Functional line management
Integration program
Alignment of Senior
Alignment of Senior
Leadership
Leadership
Coordination
Coordination Structure of
Structure of
Processes
Processes the Program
the Program
Change Management /
Change Management /
Baseline, Tracking and
Baseline, Tracking and
Monitoring Tools
Monitoring Tools Consolidated portfolio Communication
Communication
Plan
Plan
Running business Integration
portfolio program projects
Project Management Parade 2008 - T Mobile Netherlands BV
16. 5. Our Solution
Evaluation
What do you do to keep your portfolio running when a lot of more urgent
activities appear for senior management?
How do you manage the risk of a strong internal focus?
How do you include a complete new program (over 80 projects) quickly into
your running portfolio to loose as little production time as possible and keeping
the high value running projects running according to plan?
How do you make transparent what the impact of the merger is on your running
portfolio and strategy?
How do you facilitate the right choices in the overall portfolio and not make the
mistake to implement a low value merger project vs a high value running
project?
Project Management Parade 2008 - T Mobile Netherlands BV
17. 6. What success looks like
Important successes realised in both integration program as in running portfolio
22 of 23 shops converted! Ben relaunched!
New payment methods in
Reporting consolidated
E-shops
Innovative network Enabled innovative
consolidation conceptualised promotions for prepaid
Project Management Parade 2008 - T Mobile Netherlands BV
18. Thank you for your
attention.
Project Management Parade 2008 - T Mobile Netherlands BV
19. 3. Context of change
Program Objectives.
Main Program Challenges
Main Program Challenges Key Program Office Elements
Key Program Office Elements
Develop vision
Maximise Deal Closure // Alignment of Senior
Alignment of Senior Facilitate alignment of senior leadership etc.
Maximise Deal Closure Support issue resolution
Implementation Success Leadership
Leadership
Implementation Success
Dynamic external environment Define the overall workplan
Quality is of utmost importance Structure of Link integration plans to value drivers of business case
Structure of
Set top-down targets
the Program
the Program
Balance long-term planning towards end-state vs planning for
immediate actions in the early integration period
Manage Complex
Manage Complex
Environment Coordinate the interactions and interfaces between the different
Environment initiatives, workstreams and participants
Coordination
Coordination Leverage efforts across work streams (project management
Large number of initiatives Processes
Processes tools, approach, best practices, deliverables, etc.)
Large number of entities
Develop templates and apply consistently
Interdependency of actions
Baseline, Tracking Develop baseline
Baseline, Tracking
and Monitoring Track/report progress, interact with Steering Committee
Manage the and Monitoring
Manage the Tools Incorporate risk management and ‘control’ actions in the early
Time of Participants Tools integration period and risk-assess plans
Time of Participants
Potential for competing priorities Change
Change Define and execute the change management plan
Finding right resources to support Management //
Management Prepare communications targeted at all stakeholders
Manage external support requirements Communication
Communication Plan for cultural integration and be prepared for change issues
Plan
Plan Put communication at the heart of PMI
Project Management Parade 2008 - T Mobile Netherlands BV
20. 4. Portfolio management impact
Integration program was organised along functional lines, resulting in functional
projects, whereas running business portfolio consisted of end 2 end projects.
From a functional oriented approach to a deliverable oriented approach
Preparation phase Implementation phase
Program Management Program Management
Office Office
1 2 3 4 5
High
Customer Network Best Operational
1 2 3 .. Performance
migration integration Service excellence
Culture
Network Customer
Marketing …
Operations Service
Marketing
Network
Operations
Customer
Service
…
Project Management Parade 2008 - T Mobile Netherlands BV