7 factors driving Transformation Management - prepared by Husam Alasker

7 Key Factors Driving
Transformation management
Prepared
By
Husam Alasker

Outline
Transformation Management
Survey & studies
The 7 Key factors

Transformation Management Survey

Transformation Management Survey: Current State of Development
and Potential of Transformation Management in Practice
Gerrit Lahrmann (BMW Group), Robert Winter (University of St.
Gallen), Axel Uhl (SAP) 2011
➢ explains what characterizes current transformation programs
➢ the potential that can be leveraged by applying a holistic transformation management
approach

29%
25%11%
11%
11%
14%
Industries (28 companies )
manufacturing High Tech. and Telco. logistics
services banking and insurance other
32%
25%
14%
11%
18%
Job level
Directors , Head OF programe manager Business / IT Architects
C-level executive other

14%
14%
72.00%
Regions
Americas
Asian Pasific Region
other ( Europe , Middle Easte, Africa )

The nature of transformation programme
➢ Typical duration of two to four years.
➢ budget of between 10 and 100 million
euros(57% )
➢ Smaller companies (< 10,000 staff members) have
an average of 52 full-time employees committed
to the respective program
➢ larger companies (> 10,000 staff members), have
an average of 126 full-time employees .

Holistic Transformation Management
Framework ➢ Strategic level
➢ Structural and process level
➢ IT implementation
level
➢ Component 1
➢ Component 2
➢ Component 30
.......

What are the Top goals of transformation program?
➢ cost reduction
➢ Revenue improvements
➢ Agility improvements
➢ Strategy adaptations
What are the main deliverables of transformation
program?
➢ Business optimization.
➢ business models (operating models)
➢ standardized processes and platforms

What components do mature companies regard as being
practically important ?
➢ Continuous alignment of business requirements
and IT capabilities.
➢ Enabled and committed stakeholders.
➢ Continuous monitoring and Management of all
necessary steps to achieve the planned value.
➢ Right set-up of resources mix
➢ Organizational change managed to achieve high
end user acceptance.

What Potential for Further Development Exists?
Identifying and managing
interdependencies of projects
Management of program value Business process optimization
and innovation services

5 factors driving transformation management

PMI’s Plus Of profession
8th Global project management survey ,2016
9th Global project management survey ,2017

PMI’s Plus Of profession 2017

Champions VS underperformers

Organization that report High benefits realization maturity also report better project out come
High benefits realization maturity

PMI’s Plus Of profession -2016
Project management culture Using of proved Project
management practices

Using of proved Project management practices

Alignment

Active stakeholders

People Skills
40 % better performance

Prepared by Husam Alasker Target state
BA
Current state
Transition
The practices , approaches, capabilities and tools that help organizations to:
- Envision the target future state and the value behind it
- Design a Clear transition roadmap to transform from current state to targeted future state
- Engage peoples , leaders and key stakeholders to be part of this journey
- Build the right organization's capabilities to be ready to transform
- Orchestrate execution efforts to reach target future state and deliver the target value
Transformation Management definition

Prepared by Husam Alasker
B
A
Current state
Target state
➢ New strategy of company /
organization
➢ New ERP system
➢ New target operating model
➢ New line of business
➢ Apply and adopt agile concept
Transformation Programs/projects examples

practices will enhance your
maturity level of design &
managing transformation Robust Vision , innovation
capabilities and depth
knowledge/experience in
your industry ecosystem and
environment challenges will
differentiates your strategy
/transformation plan
Quality of Transformation management practices vs Quality of Transformation Program content
Quality of contentQuality of practices

7 factors driving transformation
management

The 7 Key factors
Change
management
Strategy and
Value
Management
Alignment &
commitment
Management
Integration
Governance
Management
Maturity level
People capabilities management

Robust Vision ,
innovation
capabilities and
depth
knowledge/experi
ence in your
industry
ecosystem and
environment
challenges will
differentiates
your strategy
/transformation
plan
Strategy and Value management – Industrial Ecosystems
innovation capabilities
Robust Vision
depth
knowledge/experience in
your industry ecosystem
and environment
challenges
The most important factor to do an effective transformation management is own a robust strategy which will guarantee
sustainable advantage to you …
Wide and varied
experiences in different
ecosystem

Robust Vision ,
innovation
capabilities and
depth
knowledge/experi
ence in your
industry
ecosystem and
environment
challenges will
differentiates
your strategy
/transformation
plan
Strategy and Value management- Education Industry
Ecosystem
Copyright The Metropolitan Center for Research on Equity and the Transformation of Schools at NYU Steinhardt at NYU Steinhardt

Strategy and Value management- travel & transportation

Strategy and Value management- e Commerce

Value management
Questions need to be considered
➢ What specific benefits will be realized by particular
stakeholders ?
➢ How each benefit be measured ?
➢ Who owns each benefits and will be accountable for its
delivery?
➢ What changes are needed to achieve the benefit?
➢ What changes are needed to achieve the benefit?
Source: Business transformation essential book )Axel , Lars :2011)

Value management
Value identification
•Analyze drives
•Agree on objectives
•Identify the Benefits that
result by achieving the
objectives
•The main changes
• initial business case
Plan benefit
realization
Execute
Benefits plan an
evaluate results
Establish
potential for
Future
improvements
Activities
•Ownership and
accountability
•Baseline
•Benchmarking ,
evidences
•Measurements, KPIs,
success factors
•Detailed business plan
•Manage change
programme
•Progress monitoring
•Corrective actions
•Identify Lessons
•Additional improvements
•Ongoing monitoring of
benefits achieved .
Source: Business transformation essential book )Axel , Lars :2011)
Value management main stages /steps

Value management
Case
Strategic
Initiatives
Strategic
Initiatives
Strategic
Initiatives
NTP 2.0NTP 1.0 Strategy
International indicators
➢ First: improved and
moved up 22 level
➢ Second: improved and
moved up 8 level
Great results
➢ Simple operational plan
➢ Small team
➢ Continuous improvements
Path 1
Path 2
Operational Actions

Key Message
#1
Strategic High level
You need both big picture / helicopter
view and mastery detailed plan

Alignment & commitment
The Board
Top Management
Management level
Employee
Clients
Suppliers / vendors
Partners
Other stakeholders
Compensation
system
Business model
/operating model
Performance
management system
Key Management
Shareholders

Alignment & Enhancing commitment
Plan Alignment & cascading (
Objectives , KPIs , Targets ,
initiatives/projects )
Organization alignment
Company
VP
Department
Manager
Department
Manager
Department
Manager
Team
Leader
Team
Leader
Team
Leader
staff
1
2
3
4
Business Model
Operation model
Org. chart &
capabilities
Process

Alignment & Enhancing commitment
The journey
40%
70% 90%

Key Message
#2
Successful Operational people have
the capability to translate ideas into
reality
SO …
Engage them Respect what
they do
Improve their
maturity & ability
Don’t loose
their trust

How to integrate all transformation Management related processes?
Integration

TransformationManagement
coreprocesses/functions
Enabledprocesses/functions
Integration
Transformation Management related processes
Strategy
development
Business
planning
Performance
management
Governance
management
Execution
management
Customer
experiences
Competences
management &
training
Business process
management
Digital & IT
transformation
management
Competitive
intelligence

coreprocesses/functions
Enabledprocesses/functions
Integration
Transformation Management related processes
Strategy
development
Business
planning
Performance
management
Governance
management
Execution
management
Customer
experiences
Competences
management &
training
Competitive
intelligence
➢ Strategy formulation
➢ Strategic plan
➢ Operational plan
➢ Financial plan
➢ One year budget
➢ Manage program
➢ Manage project
➢ Manage operation

The 7 Key factors
Change
management
Strategy and
Value
Management
Alignment &
commitment
Management
Integration Governance
Management
Maturity level

Governance Management
Operation
management
cycle
Strategy
management
cycle
Goals
Objectives
Targets
Initiatives
/programs
Projects
Actions
Governance scope
What is the scope of governance body ?

Second path
Organization –capabilities
alignment
First path
Plan alignment
mission
Strategy
S.Objectives,
targets
S.Initiatives
/projects
Strategic organizationalignment:
BM ,OM ,Org.chart,process
Continuesimprovements
BM ,OM ,Org.chart,process
Operational
objectives
Operational
Initiatives
/projects
/actions

Secondpath
Organization–capabilities
alignment
First path
Planalignment
mission
Strategy
S.Objective
s, targets
S.Initiatives
/projects
Strategic organization
alignment : BM ,OM ,
Org.chart , process
Continues improvements
BM , OM , Org.chart , process
Operational
objectives
Operational
Initiatives
/projects
/actions
First path:Planalignment
toensure thatobjectives
andtargetsinitiatives
projectsandactionsare
alignedwiththe strategy
C
o
m
p
a
n
y
V
PDe
par
tm
ent
Ma
na
ger
De
par
tm
ent
Ma
na
ger
De
par
tm
ent
Ma
na
ger
T
e
a
m
L
e
a
d
er
T
e
a
m
L
e
a
d
er
T
e
a
m
L
e
a
d
er
staff

Secondpath
Organization–capabilities
alignment
First path
Planalignment
mission
Strategy
S.Objective
s, targets
S.Initiatives
/projects
Strategic organization
alignment : BM ,OM ,
Org.chart , process
Continues improvements
BM ,OM , Org.chart , process
Operational
objectives
Operational
Initiatives
/projects
/actions
Second path : Organization
alignment
to ensure that BM , OM ,
Org.chart, capabilities and
processes arealigned and
service achieving strategy and
targeted transition

How could we manage and govern Business transformation , digital transformation , IT transformation?
What is the proper framework to ensure integration ?
▪ Digital strategy
▪ Digital transformation
▪Busines Strategy
▪Business trnasformaiton
road Map
▪ IT strategy
▪ IT transformation
management
Second layer Thrid layerFirst layer

How could we manage and govern Business transformation , digital transformation , IT transformation?
What is the proper framework to ensure integration ?
▪ Digital strategy
▪ Digital transformation
▪Busines Strategy
▪Business trnasformaiton
road Map
▪ IT strategy
▪ IT transformation
management
Second layer Thrid layerFirst layer
Leading by ITLeading by Business Leading by joint body
BTW Business & IT

Several governance
Boards
Office of strategy
(OSM )
High committee
SMO
IMO
EPMOBudget
PMIT PMOx.PMOs
What is the fit Design ?
TMO
OR OR
process
PM
staff
PM
Digital
unit
…….OR
VRO

What is the proper tools strategy & structure ?
PMS
BIEPM
Budgeting
tools
Process PM
Meeting
management
Systems

What is the proper tools strategy & structure ?
PMS
BI
EPM
Budgeting tools
Process PM
Meeting
management
Systems

Key Message
#3
There is no size fits all
But …
School
of thoughts
Good practices Standards
Scientific
approach

Key Message
#4
Focus on the value of functions and
disciplines rather than its titles and Org.
design.
Best fit Org. design depends on many factors
belong to internal environment conditions

The 7 Key factors
Change
management
Strategy and
Value
Management
Alignment &
commitment
Management
Governance
Management
Integration
Maturity level

Case : Change management in Transformation journey
•Strategy
crafting
First
•BM & OM
alignment
Second
•Unit
alignment
&
cascading
Third
•Operational
Business
plan
Fourth
•Governance
& execution
management
Fifth
•Monitoring
& controlling
Sixth
•Test and
adapt
Seventh
Change the Directions
Change the way business work
Change Unit/ Business priority
Change their plans
Change the way they act
Change capabilities /competences/maturity 64
The 7 Key factors

The 7 Key factorsThe 7 Key factors
Transformation Nature
Don’t forget …
Transformation happen in circles not straight lines
1 2 3 4

What is the core functions inside the organization which help us to be more able to transform ?,what are the
main enabling capabilities needed to ensure successful transition? what we have to do with it?
Strategy development
Business planning
Performance management
Governance management
Execution management
0
10
20
30
D1
D2
D3
D4
D5D6
D7
D8
D9
current
target
CoreFunctionsMaturity level

Maturity level
What is the core functions inside the organization which help us to be more able to transform ?,what are the
main enabling capabilities needed to ensure successful transition? what we have to do with it?
Customer experiences
Competences management &
training
Business process
management
Digital & IT transformation
management
Competitive intelligence
0
10
20
30
D1
D2
D3
D4
D5D6
D7
D8
D9
current
target
Enabled
Functions

Key Message
#5
Managing objectives , KPIs,
initiatives

Change
management
Strategy and
Value
Management
Alignment &
commitment
Management
Integration
Governance
Management
Maturity level
The 7 Key factors

Stop Using the Wrong Team for Your New Product
Idea
Leigh Pember Published on Published onDecember 1, 2017 linkedin
The 7 Key factors

Key Message
#6
People Before strategy

Lets continue our
learning journey

7 factors driving Transformation Management - prepared by Husam Alasker

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