Business Transformation Approaches and Global Trends

1
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www.intelligentsystemsservices.com | Copyright © 2013 | PRIVATE AND CONFIDENTIAL | ISS, LLC proprietary.
Business Transformation Training Program 2014
Business Transformation: Global Trends,
Approaches, and Leadership
Presentation to: Hamdard Institute of Management Sciences
Karachi, Pakistan March 25, 2014
By Prof. Dr. Frank L. Harper, Jr., Ph.D., PMP®, PIF, ITIL, CSSGB
Consultant/Trainer

www.intelligentsystemsservices.com | Copyright © 2013 | PRIVATE AND CONFIDENTIAL | ISS, LLC proprietary. 2
Intelligent Systems Services, LLC
Assalamu Aleikom

Intelligent Systems Services, LLCAGENDA
• Introduction
• Global Trends
• Business Transformation Approaches
• Strategy
• What is Transformational Leadership
• Why Transformations Succeed or Fail
• The Twenty-First Century Strategic Leader (Hustler)
– A.G.I.L.E. Behavior
– L.E.A.D.E.R.S.H.I.P. Behavior
– G.R.I.P. Management
• Questions and Answers

Introduction

Intelligent Systems Services, LLCAbout Dr. Frank L. Harper, Jr., Ph.D., PMP®, PIF, ITIL, CSSGB
• Principal & Chief Innovation Officer, Author, Speaker, Associate Professor
• Experience: 35+ Years
• Roles: CEO, Chief Information Officer, Deputy Chief Information Officer, Business
Process Strategist, Process Excellence Director, Chief Program Management Officer,
Global Practice Director, Sr. Project Manager, and PMI OPM3 Team Leader
• Competencies: Executive Coaching, Transformation Leadership, Strategic Planning,
Enterprise Architecture, Business Management, Technology Management,
Organizational Project Management, Process Redesign, Business Process
Management, Governance [IT, Program, Project, Data], and Organizational Behavior
• Author: IT and personal development courses, articles, and books on Organizational
Leadership and Transformation
• Researcher: Project Management Institute, Cambridge Corporate University
• Education: PhD in Administration & Management [Organizational Leadership &
Transformation], MBA in Marketing, MS in Industrial Engineering, BS in Computer
Technology (Cum Laude)
• MPAs: 1st generation high school/college graduate, football scholarship walk-on
(twice), At-risk youth coach, Executive/PM Coaching, and Spiritual Growth

Intelligent Systems Services, LLCTransformational Leadership Experience
• Amazon.com
• ANICO
• AXA Insurance
• BBVA Compass Bank
• Citibank
• City of Atlanta
• COMERICA Bank
• Countrywide Funding
• Federal Reserve Bank of Atlanta
• Fifth-Third Bank
• First Data
• JP Morgan Chase Bank
• MBNA
• McDonald’s
• Ministry of Health (Canada)
• Mutual of Omaha
• Proctor and Gamble
• Project Management Institute
• Quail Energy
• Rematix
• South African Reserve Bank
• State of Georgia
• Sterling Software
• SwissRe
• The Coca Cola Company
• 3M
• USAA
• Wachovia
• Cambridge Corporate University
(Switzerland)

Intelligent Systems Services, LLCPMI Volunteer & Global Leader
PMI Organizational Project Management Maturity Model (OPM3)
A leader in Organizational Project Management, involved with PMI's OPM3 efforts since its inception in
2001.
1.) Navigational Team Co-Lead OPM3 1st Edition – A contributing thought leader in defining the
process to navigate OPM3 in assessing the project management maturity in organizations.
2.) Quality Assurance Team Lead OPM3 2nd & 3rd Edition – The thought leader proactively leading
and managing a global Virtual Team (Hong Kong, South Africa, Pakistan, India, United States,
Canada, and UK) charged with applying the "House of Quality" approach for quality assurance to
OPM3 Constructs.
PMI Research
1.) Lead researcher from United States on the seminal project, "Project Managers as Senior
Executives", sponsored by PMI® and Ecole Supérieure de Commerce de Lille (ESC Lille School of
Management), the largest PMI®-accredited business school in France. Led by Prof. Dr. Jean-Pierre
Debourse and Russell D. Archibald, Ph.D.(Hon), PMI Fellow. I interviewed ten (10) executives from
various industries and sized companies providing data to help answer the fundamental question: Are
project managers becoming and can project managers become senior executives? If not, what can be
done to allow them to climb the ladder?

Begin With The End In Mind
-- The Seven Habits of Highly Effective People
Prof. Dr. Stephen Covey

Enterprise (Universal) Commerce
Source: Effective Leadership for Enterprise Commerce Management

Global Benchmarking Trends and Success
Factors in Business Process Excellence (BPE)

 Purpose:
 How companies are measuring the success of their BPE initiatives
 How businesses are using the VOC (Voice of the Customer) to identify improvement
opportunities
 What types of new approaches are working particularly well
 Key Findings:
 48 percent said that the VOC (Voice of the Customer) or the VOM (Voice of the Market) were
the primary sources of information for driving BPE initiatives
 41 percent reported that their BPE initiatives were explicit outgrowths of the competitive
business strategies
 76 percent reported that their BPE deployments were successful or highly successful
 14 percent of respondents said that the most important basis for defining success of the
companies BPE projects was the extent to which they could improve value delivery to
customers
 49 percent of companies reward BPE performance with bonuses or other rewards
 20 percent are using outside sources for any type of BPE accreditation
Source: 835 individuals in a variety of BPE roles in companies of all sizes and industries from across the globe
The Process Excellence Network / Market Value Solutions

Key Findings

Key Findings
The use of customer and market feedback to identify and prioritize process improvement initiatives differs substantially from
one industry to another

Key Findings

Approaches

Intelligent Systems Services, LLCOverview of Business Process Change Methodologies
More Comprehensive
Methodologies
More Specialized
Methodologies
Strategic
Enterprise Level
Strategy, Process Architecture,
BPM Governance and Planning
Enterprise Process Management • Enterprise Adoption of Six Sigma
• BPTA Enterprise Methodology
• Rummler-Brache PDL Methodology
• xBML Methodology (Business Genetics)
• Lean Six Sigma (DMAIC)
• BPTA Process Redesign Methodology
• BPM Methdology
• Balanced Scorecard
Performance Evaluation and
Strategy
• CMMI-BPMN Process
Management & Change
• SCOR (Ibolstorff, Rosenbaum)
Tactical
Business Process Level
Process Documentation
Redesign and Improvement
Business Process Improvement
Projects
• Business Rules Methodology
(Ross)
Operational
Implementation Level
Projects Undertaken to Develop
Resources to Support New
Processes
Human
Resource
Infrastructure
IT
Infrastructure
• IDEF0 Methodology
• ARIS (IDS Scheer)
• Unified Software Development
Process (Rational UML
Methodology)
• AGILE (SCRUM) Methodology
Physical Plant and Hardware Used

Architectural Design Principles
Model-Driven
Services and Event Enabled
Information-centric
Standards-based
Grid Computing (Pay-as-you-go)

Principles of Productivity Management
Define the job in detail
Get the right people involved
Estimate time and costs
Break the job down (80 hour rule)
Establish a change procedure
Agree upon an acceptance criteria
Source: A.G.I.L.E. L.E.A.D.E.R.S.H.I.P. with a G.R.I.P.

Value Delivery Framework Activities
Step 1 – Strategy: Focus on the Business of the Future (BoF)
 Develop a picture of the future (vision)
 Organize transformation frame
 Document stakeholder requirements and KPIs and Valuation innovation activities
Step 2 – Road map: Define an action plan to implement the new business model
 Build upon strategy
 Define new business model to deliver the visions, strategy, and value proposition
 Sets out action plan (initiatives) to implement the new operating model
Step 3 – Design: Create an architecture vision and migration plan
 Capture key requirements
 Define both the detailed business and IT architectures
 Develop program and implementation plans the together support the controlled implementation
changes delivered with the new business model
Step 4 – Implement: Execute the process, system and other changes – in phases
 Firm executes the transformation – business processes, core systems, products, services, and PEOPLE
 Monitor KPIs and behavioral change management
 Consider implementing a Transformation PMO for oversight and coordination
 Step 5 – Monitor: Revisit the value proposition (Measure value and plan improvements)
 Stabilize new systems and processes
 Capture and analysis of value metrics
 Design and implement continuous improvement program

The Business
Transformation Leader

Intelligent Systems Services, LLCCIO Transformation – From ‘information’ to ‘innovation’
IT Organization Yesterday Today
Focus Cost Growth
Key metrics Efficiency Speed and customer satisfaction
Delivery goals On-time, on-budget On-value
Architecture Systems of record Systems of engagement
Architecture focus Core Edge
Technology focus Network, storage, computing Cloud, social, mobile
Development goals User interface User engagement
CIO Chief information officer Chief innovation officer
Key partner CFO CMO
IT Focus Technology systems Processes, function capabilities
Source: CIO Magazine

Value Delivery Framework and Business Transformation Leader
Step 1 – Strategy: Focus on the Business of the Future (BoF)
 Help define the business strategy and supporting IT strategies
 Drive planning processes for scenarios, visioning, etc.
 Bring in system capabilities very early; Verify the viability of the strategy
Step 2 – Road map: Define an action plan to implement the new business model
 Own the road map itself; Help define the business road map
 Define and guiding the process required to create the road map
 Identify high-risk problem areas in IT components of business plans
 Define the underlying IT components of the road map
Step 3 – Design: Create an architecture vision and migration plan
 Drive designs toward enterprise goals
 Establish mechanisms to control demand
 Ensure that technology components are robust and realistic
Step 4 – Implement: Execute the process, system and other changes – in phases
 Monitor progress against milestones and adjusting as needed
 Show how others have gone through the transformation and predicting problems
 Focus on the technical details, especially data and testing
 Step 5 – Monitor: Revisit the value proposition (Measure value and plan improvements)
 Running IT as business as usual
 Measure the value of the transformation
 Start continuous improvement programs

Business Hero – IT-Smart Leader who thinks/acts Business-Smart
 Change approach to financing and delivering new apps and systems
 Reduce risk of big-dollar, upfront investments in new systems
(a.k.a. capital expense or “capex”)
 Pay-as-you-go (operating expense or “opex”) model to pay for new
systems and apps
 Roll out new, high-priority apps and system upgrades on a continuous
30-, 60- 90-day delivery cycle that aligns with quarterly objectives
 Enable line-of-business (LOB) to change their system development
priorities every 30 days as business needs change and unexpected
things happen
 Strategy for business success:
1. Try many things
2. Follow success
3. Abandon failure

Strategy

The Ecology & “Strategic Rudder” of Business Transformation

The Strategy Story
Only 10% of
organizations
execute their
strategy
Barriers to Strategy Execution
Vision Barrier
Only 5% of the
workforce
understands the
strategy
People Barrier
Only 25% of the
managers have
incentives linked
to strategy
Management Barrier
85% of executive teams
spend less than one
hour per month
discussing strategy
Vision Barrier
Only 5% of the
workforce
understands the
strategy
Source: Adapted from material developed by Robert S. Kaplan and David P. Norton

Intelligent Systems Services, LLCStrategic Management Planning
2002 The Balanced Scorecard Institute

Intelligent Systems Services, LLCThe Strategic Framework Architecture

Intelligent Systems Services, LLCStrategy Map – Financial Services Company

Intelligent Systems Services, LLCStrategic Initiatives – Innovation Rewards
Industry Description Key IT
Consultancy Behavior mapper that matches consultants with clients,
avoiding personality mismatches, to promote agreement on
project scope and requirements
Analytics
Financial Services Human-computer interaction through a secret gesture that,
when paired with a picture or PIN, authenticates transactions
Mobile devices, POS computers,
digital scanners, cameras
Banking “Life calendar” to help guide financial decisions based on
events such as marriage, job loss and having children
Social media, databases,
analytics
Credit Reporting Automated detection of theft of a child’s identity Database, analytics
Automotive System to let police slow down and stop a vehicle during a
chase
Telematics, short-range wireless
networks
eTailer System to predict availability of airline seats, without querying
airline or travel companies’ systems
Databases, analytics
Research System for commuters to check if a ride-sharing partner
deviates suspiciously from the route
Mobile devices, geo-location,
analytics
Insurance Data-logging device that tracks vehicle and driver actions to
offer customer insurance policies
Sensors, portable storage,
analytics
Retailer System to let consumers fill out credit card applications at a
gas pump, through card swipes and number inputs
POS, card readers, databases,
analytics
Pharmaceutical Method to infer whether a woman is pregnant based on
prescriptions filled, and block the sales of another prescription
that’ potentially harmful
POS, databases, analytics
Source: CIO Magazine Reseach

Intelligent Systems Services, LLCBuilding and Implementing a Balanced Scorecard

The Zachman Framework for Enterprise Architecture

What is Transformational Leadership?

Intelligent Systems Services, LLCTransformational Leadership
A deliberate influence process on the part of an individual or group to bring about a discontinuous change in the current
state and functioning of an organization as a whole. The change is driven by the vision based on a set of beliefs and
values that require the members of the organization to urgently perceive and think differently and to perform new actions
and organizational roles.
Personal Commitment to the Transformation by the Leadership
Not compliance / Walk the talk
Firm, Relentless, Indisputable Communication of Impossibility of Maintaining the Status Quo
Firm statements backed by credible evidence / Clear indications that failure of the status quo is final and irreversible
Clear and Enthusiastic Communication of an Inspiring Vision of the TO-BE Organization
A clear and vivid value-based vision created by an appropriate mix of rational analysis, intuition, and emotional involvement / Repeated
inspiring exciting communication creates sense of urgency
Timely Establishment of Critical Mass of Support for the Transformation
Know and acknowledge the key players / Discuss failure of status quo, present vision, talk values, WIIFM
Acknowledging, Honoring, and Dealing With Resistance to the Transformation
A willingness to listing / Some tolerance and patience / Clear articulation and communication of the need to change and the benefits
Defining and Setting Up an Organization That Can Implement the Vision
Implement strategies, structures, and systems / Replacing key staff, or staff in key positions, not suited for change / Introduce
education, training, and retraining new behaviors / Implement a reward system to reinforce actions
Communicate Progress – Regularly, Recognition, Reward
Regular publication of achievements/ Face-to-face feedback sessions / Emphasizing, recognizing, and consistently rewarding gains

Leading Change:
Why Transformations
Succeed or Fail

Intelligent Systems Services, LLCWhy Transformation Projects Fail (at the rate of 70%):
Poor / Improper Executive Engagement
Sub-Optimal Project Structure
Accountability & Authority Problems
Sponge-Like Goals
Inattentiveness to Organizational Change
Principles & Methodology
There are more:
Tightly integrated, standardized processes
Faith in Big Numbers
View change as rational process
Neglect the “edge” and confront the core
Failing to Learn From “Lessons Learned”

Intelligent Systems Services, LLCKey Failure Point
Inattentiveness to Organizational Change Principles &
Methodology:
 THIS IS #1 ON THE HIT PARADE AS TO WHY
ENTERPRISE PROJECTS FAIL.
 WHY?
 Enterprise projects change the way organizations “do stuff.”
 Changes in an organization’s culture must be deliberate and
thoughtful much in the same way as the process / tool
changes are introduced and managed via a formal project
plan.
 The organizational climate must be initially assessed and then
cultivated in order to accept and sustain introduced changes.

Intelligent Systems Services, LLCKey Failure Point
I BEG TO DIFFER!
Is it REALLY because the lack of a Methodology?
Or
Is it REALLY because the lack of Leadership?

Intelligent Systems Services, LLCThe REAL Key Failure Point
Leadership is NOT flexible, is NOT upfront, and is NOT in-control:
The usual reason for failure of an initiative is that it was launched halfheartedly, or was beyond the ability of the
organization to master. Here’s what tends to happen: the leaders announce a bold new program and then walk
away from it, leaving the job to others. With no clear impetus from the top, the program will wander and drift. An
initiative, after all, is add-on work, and people already have full plates. Few of them can take it seriously if the boss
doesn’t. Eventually the effort bogs down and dies.
…..Real results do not come from making bold announcements about how the organization will change. They come
from thoughtful, committed leaders who understand the details of an initiative, anticipate its consequences for the
organization, make sure their people can achieve it, put their personal weight behind it, and communicate its
urgency to everyone.
--Ram Charan and Larry Bossidy, Confronting Reality: Doing What Matters to Get Things Done

Intelligent Systems Services, LLCSuccessful Transformations Needs
Leadership Proactively Managing:
1. Individual and Organizational Perspective
2. Understand How to Manage the Individual
3. A Consistent, Predictable Approach
Thereby Significantly Increasing the Level of Project /Program
SUCCESS

Intelligent Systems Services, LLCThree Facets of Effective Transformation
Individual
Organization
Team

Intelligent Systems Services, LLCWhat’s Changing?
“Things” We Ask Change Targets to Change:
 Processes – How they do their work
 Overall Approach / Philosophy to “Work”
 What they Care About and Actively Attend to…
 Values
 Measurements
 Stakeholder Relationships
 Organizational Design
 Key Assumptions
 Sacred Cows
 Time Management
 Compensation
 Individual Performance Goals

Intelligent Systems Services, LLCChange vs. Transition
Change – shift happens
Transition – Internal process to respond to that shift
Transitions Phases
1.) Ending Phase
2.) Neutral Zone
3.) “New Beginning” Period

Organization: The Trident, A Meta-Model of Transformation
**Assess and develop a “people
change” plan using the following 8
transformational tools / levers:
1. Measurement
2. Organizational Design
3. Communication
4. Accountability Processes
5. Rewards & Recognition
6. Involvement
7. Education & Training
8. Resourcing
2000 Executive Leadership Group, Denver, CO.
People want
everything to be
better, but nothing
to be different!
Compelling Threat /
Burning Platform
The Push: Current Reality
Hard Change
Leadership*
Soft Change **
The Pull: Preferred Future
Compelling
Vision
*A.G.I.L.E. L.E.A.D.E.R.S.H.I.P.
with a G.R.I.P.

A.G.I.L.E. L.E.A.D.E.R.S.H.I.P.
with a G.R.I.P.
Being Flexible, Upfront, and In-Control
The Twenty-First Century Strategic Leader (Hustler)

The Twenty-First Century Strategic Leader (Hustler)

Adaptable Behavior
Goal-Oriented Behavior
Intelligent Behavior
Learner Behavior
Effective Behavior
A.G.I.L.E. = Being Flexible

A.G.I.L.E. = Adaptable Behavior

Ten Goals to Success
A.G.I.L.E. = Goal-Oriented Behavior
1. Know the terrain 6. Give mind-boggling service
2. Seize the opportunity 7. Build the team
3. Find a mentor 8. Get more from less
4. Radiate zeal 9. Notch it upward and onward
5. Work with tenacity 10. Give something back

A.G.I.L.E. = Intelligent Behavior
Six of Intelligent Behavior
Innovation
Insight
Initiative
Influence
Interpersonal
Integrity

L = Listen effectively
E = Exhibit enthusiasm about contributing to something bigger
A = Aspire toward excellence
R = Recognize the importance of being lifelong learner
N = Nurture personal development in yourself and others
E = Enjoy self-directed learning
R = Review your life as a series of emotional learning experiences
A.G.I.L.E. = Learning Behavior

A.G.I.L.E. = Effective Behavior

Look to Change/Challenge Status Quo
Energize People with Ever-Greater Challenges
Acknowledge the Burning Platform
Deliver Results through Effective Delegation
Exhibit Emotional Energy and Edge
Respect Diversity
Sustain Success By Achieving Excellence
Have A Teachable Point of View
Introduce Ideas Based On Uplifting Values
Persistence with Perseverance
L.E.A.D.E.R.S.H.I.P. = Being Upfront

Goal Management
Resource Management
Interface Management
Performance Management
G.R.I.P. = Being In-control

G.R.I.P. = Goal Management
Organization Goals Organization Design Organization
Management
Process Goals Process Design Process
Management
Job/Performer
Goals
Job/Performer
Design
Job/Performer
Management
Motivation Metric Baseline Goal Units of
Measure
Target
(%)
Reduce process time Transaction time 4 2 Hours 50%
Improve quality Exceptions produced 10 2 Exceptions 80%
Reduce manual
processing
Processing time 40 20 Hours 50%
Reduce case
investigation time
Investigation elapsed
time
40 1 Hours 99.75%
Reduce complexity People involved in
process
5 1 People 80%
Reduce processing
time
Cost per request $840 $420 Dollars 50%
Improve customer
service
Response time to
client
12 4 Hours 67%
Reduce costs Cost per document $50 $10 Dollars 80%
Improve compliance Fines $10,000 $1,000 Dollars 90%
Reduce training time Training modules 7 3 Modules 57%

G.R.I.P. = Goal Management
G = Get to the defined finish line
O = Obtain short-term term and long-term satisfaction
A = Aspire to be part of something great, and never give up!
L = Lead –be the example of “making it happen”
S = Seek a wholistic solution through systems thinking
driving goals for organizations, process, and job/performer

G.R.I.P. = Resource Management
Organization Goals Organization Design Organization
Management
Process Goals Process Design Process
Management
Job/Performer
Goals
Job/Performer
Design
Job/Performer
Management

G.R.I.P. = Resource Management
R = Realize goal attainment
E = Estimate time, cost, and people
S = Simplify work effort by having appropriate resources
O = Obtain quality work effort and results
U = Understand the hidden details
R = Rework the second time the first time
C = Check for optimum resource utilization to avoid unnecessary
costs
E = Evaluate each resource’s contribution to the project

G.R.I.P. = Interface Management
Function 1
Function 5Function 4 Function 6
Function 2 Function 3
Interface
Identified
Criticality Gap Action Resources Due
Date
Responsibility Comments
Interface Management Plan

G.R.I.P. = Interface Management
I = Identify and evaluate “white space (interface) between
functions
N = Notice the customer-supplier relationships
T = Tailor a risk-based approach
E = Examine risks and rank them by criticality
R = Remove any barriers to effectiveness and efficiency
F = Find reasonable criteria to identify interfaces to manager
A = Attend to establishing and monitoring measures that
indicate quality
C = Create an action plan to improve interfaces
E = Execute interface management action plan

G.R.I.P. = Performance Management

Project Level Business Transformation Activities
 Focus on benefits
Think of projects in terms of business-led transformation activities
 Resourcing
Realize the benefits will depend on A.G.I.L.E. L.E.A.D.E.R.S.H.I.P. with a G.R.I.P.
 Notching it upward and outward
Do the projects continually present opportunities to C.H.A.N.G.E. (Why)
 Sustainability
Sustain Success by Achieving Excellence – C.H.A.N.G.E. (How)
 Skills development
Underpinning all these factors is the need for skills and knowledge development

Project Management and Business Transformation
PROJECT
MANAGEMENT
PROCESS
MANAGEMENT
CHANGE
MANAGEMENT
Initiating
Planning &
Analysis
Executing & Monitoring Closing
Create Project Proposal
Assign the Project Team
Create Project Charter
Create the Work
Breakdown Structure
and Schedule
Create the Project Plan
and Budget
Monitor Project Activities
Track Milestones
Manage Project Issues & Risks*
Manage Change Requests*
Communicate Status*; Facilitate Project Meetings*
Present Solution
Capture Lessons
Learned
Close Project
Gather Requirements
Perform “As Is” Analysis
Perform “To Be” Design
Identify Gaps
Assess Technology
Impact
Develop Process and Procedures Documentation
Perform User Training
Implement Project Solution
Transition Solution to
Functional
Management
Create Sense of
Urgency for Change
Analyze Stakeholders
Evaluate Systems &
Structures
Create Communications
Strategy
Execute Systems & Structures Action Plan
Communicate with Stakeholders
Obtain Personal Commitment
Monitor Progress
Approved Project
Charter
DIT Team Engaged
Work Breakdown
Structure*
Project Plan and
Budget*
Project Documentation
User & Training Materials
Implemented Project Solution
Lessons Learned*
Approved Project
Closure Report*
Project Status Reports*

SUMMARY

Strategic hustler role in Business Transformation
 Customer First
Going beyond expectations to make every contact easy and rewarding.
 Innovation
A unique idea or creative problem solving.
 Lead by Example
Embodying the positive attitude that brings out the best in others and
encourages collaboration.
 Deliver Excellence
People taking on challenges and seizing opportunities.
 Bottom Line Impact
Actions that drive greater efficiency, increase revenue, or decrease costs.

Strategic Hustler’s Motto
 Be Great, Dedicated, Determined, and Driven! [BG3D]

THE END

THANK YOU!
‘Jazakum Allah Khayran’( ‫ا‬ ً‫ْر‬‫ي‬َ‫خ‬ ُ ‫ه‬‫اَّلل‬ ُ‫م‬ُ‫ك‬‫ا‬ َ‫ز‬َ‫ج‬( ‘
"May Allah reward you [in] goodness."

Questions and Answers

Business Transformation Approaches and Global Trends

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