The document provides a summary of the inaugural issue of the magazine "Transform", which was previously an electronic newsletter called "Business Transformation Monthly". It discusses the content that will be included in future bi-monthly issues of the magazine, including short articles and information targeted towards executives and transformation managers. It also introduces the founder and director, Rob Llewellyn, and encourages readers to reach out to discuss transformation challenges or collaborate.

1. BT Summit Round Up
Dec 2014 / Jan 2015 Issue # 01bi-monthly magazine for successful business transformation
A report on the business transformation
eventoftheyear,astransformationleaders
from around the world met in Berlin.
Why transformation intent does not lead
to transformation success for many
Digital is appealing, but how do you avoid
falling off a digital wave?A look at value management philosophy
Maximising Investment Value of
Transformation
Strategic Intent Without
Transformation Capability
Ready To Ride a Digital Wave?

2. TR ANSFORM2
First Issue
Welcome to Transform
For 22 consecutive months I published
‘Business Transformation Monthly’ as
an electronic newsletter via email and
I am extremely pleased by how the
subscriberbasegrewinthattime.From
CEOs to Project Managers, in countries
right across the world, every day a few
more people would sign up to receive
insights on business transformation
management. Some have gone on to
become good friends and colleagues
in the business transformation
community, while others have become
clients and partners.
That publication has undergone its
own transformation and evolved into
what you are now reading, which is the
inaugural issue of “Transform”.
Rob Llewellyn
- encouraging better business transformation
What’s Ahead
Every two months, “Transform” will provide short articles and
small chunks of information that will resonate with C-suite
executives who need to realise strategy, and transformation
managers who are charged with enabling strategic intent.
Every month I engage with executives and transformation
managers who are responsible for achieving successful business
transformation in their respective organisations. Whether they
come from manufacturing, banking, energy, technology, or
another sector, they all share similar challenges.
Transformation is never easy, but by applying a proven
transformation management approach, using the right calibre
of people, executives will immediately help de-risk their efforts
to realise strategy, and look forward to enhancing not only their
company’s reputation, but also their own.
Whether you feel the need to reach out to me to discuss an article,
a transformation challenge, or seek some help or collaborate; I
will be delighted to hear from you.
Enjoy the read!
Rob Llewellyn
Founder and
Director
CXO Transform

3. 3TR ANSFORM
Summary
BT Summit Round Up04
Maximising Investment
Value of Transformation
06
Recent Books on
Transformation
07
Strategic Intent Without
Transformation Capability
10
Ready To Ride a Digital
Wave?
12
Risk – The 4th Dimension
of Business
14
It is becomingly increasing common for executives who
sponsor transformations to work with certified business
transformation advisors. These trusted advisors help
executives make the informed decisions required to
achieve transformational success.
Even the best businesses can get stuck doing what
they believe is a timeless solution to profitability. Then
their customer-base begins to shrink, they fail to attract
new customers in the way they used to, and the best of
their workforce start jumping ship. When this happens,
businesses are confronted with the harsh choice of
transforming or withering away. But transforming
is not quite so easy because while the companies
might have a competent operational workforce, the
specific capabilities required to undergo successful
transformation, are not what operational staff are
experienced and trained in. Leaders who believe their
teams can become overnight experts as business
transformation professionals usually find themselves
becoming another statistic among the 70%+ of
transformations that are unsuccessful.
The Business Transformation Challenge
While many C-suite executives and directors are keen to
prove their transformational leadership capabilities, if
they want to be among the minority 30% that succeed,
they need to facilitate a holistic approach to business
transformation, and steer clear of the common pitfalls
that most fall into. The most successful leaders adopt
a proven business transformation methodology
and engage experienced and certified business
transformation management expertise. These are the
leaders who recognise that business transformation
cannot be run as a series of technology projects, if
their business transformation is to be successful. These
are the leaders who understand that transformation
requires innovation capabilities, transformation
management capabilities, IT excellence and the right
business goals.

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The 4th Global Business Transformation Summit was hosted by SAP in the sensational Adlon Kempinski Hotel in
Berlin on 10 and 11 November. Those who arrived on the Sunday were fortunate enough to soak up some of the
festivities put on to celebrate the 25th anniversary of the fall of the Berlin Wall.
SAP Services and the Business Transformation Academy certainly demonstrated how exceptionally well they look
after their customers and community. From start-ups to some of the world’s greatest brands, and from academics
to global executives, an energetic blend of transformation passion filled the air.
Coined as “Innopreneurship”, an exciting fusion of innovation and entrepreneurship was the focus of this year’s
event. Traditional businesses were given the opportunity to learn from entrepreneurs about new collaboration
and communication models and how a start-up-like mind-set and culture can foster innovation in both large and
small organisations. Similarly, start-ups were given the opportunity to learn from those with more experience in
the world of business.
BT SUMMIT ROUND UP

5. Meeting Conclution
5TR ANSFORM
This was an event where some of the world’s most
committed business transformation experts gathered
to exchange views, expand their networks and hear
the mixed experiences of those who have been at the
centre of some of the world’s most complex business
transformations.
The Business Transformation Academy and SAP
also used the opportunity to leave a copy of the new
book “Digital Enterprise Transformation” in the hotel
rooms of those attending the event. Read more about
this exciting new book on page 9.
The eclectic line-up of speakers included the
phenomenal speed-climber Alexander Huber,
executives from Landcover, SAP, BMW, and one of
the most cutting edge banking CEOs in Europe -
Matthias Kroener. These and many others shared
their successes, failures and learnings, in an effort to
help others approach transformation in a better way.
The event provided hundreds of transformation
practitioners with the opportunity to expand their
global networks, meet top thought leaders, build a
mindset for the future, and take away new ideas that
can help shape their companies’ DNA.
Above: Lalit Jagtiani and Rob Llewellyn
Above: Ian Kingstone, Rob Llewellyn and Michael von
Kutzschenbach

6. TR ANSFORM6
Maximising Investment Value
of Transformation
he likes of the CEO and CFO can often be
heard asking, “are we maximising the value
of our investments?” – and quite rightly so.
But those overseeing transformation programmes
sometimes struggle to provide data-driven responses
to their stakeholders, often because the maturity of their
organisation’s Value Management is low or even non-
existent.
A lack of Value Management, which also consists of
Benefit Management, has been one of the typical root-
causes of the infamous gap between IT and the Business.
While the world is talking about digital transformation,
organisations should never lose sight of the fact that the
end-goal of their digital initiatives is to deliver benefits
and value for money - whether that is for customers,
operations or workforce.
Bi-products of mature Value Management include
conversations and reports that heads of business functions
can relate to, and which provide C-suite executives with
the data they need to make more informed decisions
and increase their levels of confidence. However, while
Value Management is one of the nine transformation
management disciplines required for holistic business
transformation, it is often missing or subjected to a light-
T
Businesstransformationisundertakentogeneratevalue,butoftenthereislittlecorrelation
between the value documented in a business case, and the value realised.
touch by being treated as a “tick in the box” exercise.
The underlying philosophy of Value Management involves creating a shift towards benefit-oriented management
as follows:
• From technology delivery to benefits delivery
• From value for money low level task monitoring to value for money benefits tracking
• From IT implementation plan to change management plan
• From business managers feeling like victims to business managers feeling involved and in control
By making this shift, combined with good organisational change management and stakeholder management,
relationships between IT and the business will automatically improve, and the value of the CIO’s function will also
increase in the eyes of business stakeholders.
Philosophy

7. 7TR ANSFORM
What is Value Management?
Value management involves establishing the transformation objectives and engaging key stakeholders in defining
the business benefits and changes needed to realise them, evaluating the feasibility of making the changes
successfully, and producing an evidence-based, rigorous business case and supporting benefits realisation plan.
This includes reviewing and evaluating achievement of the benefits against the investment justification.
The BTM² Value Management discipline consists of four phases:
1. Value identification
2. Benefit realisation planning
3. Execute benefits plan and evaluate results
4. Establish potential for further improvements
Within each of the phases is a detailed set of activities - all based on proven techniques for identifying, planning,
managing and evaluating the benefits of a business transformation programme.
The State of Value Management
When the Business Transformation Academy (BTA) assessed 13 large-scale European transformation programmes,
Value Management was one of the most poorly performed management disciplines, with value estimation,
benefits realisation planning and transformation business case assessment being common shortcomings. If some
of the most mature organisations in Europe fail to get Value Management right, can you imagine the scale of the
problem among the vast majority of smaller and less equipped firms?
Value Management done right, is hugely beneficial to transformation executives, their stakeholders, and the overall
success of the transformation programme. Value Management is not rocket science, but neither is it a capability
that is found in any abundance. However the smart transformation executives know that a truly successful
transformation programme cannot be achieved without it.

9. 9TR ANSFORM
Theauthorsexplainhowtruedigitalmastershave
embraced the digital age and found increased
profits as a result. This book is a must-read for
any executive who is determined not to be buried
six-foot-under in the pre-digital graveyard, along
with those that were complacent enough to
become slaves to the models of yesteryear.
The book shares research conducted with over
400 companies, and explores the DNA of digital
masters and what they do differently. These
are the companies that go beyond the likes of
mobility and social media. The companies that
understand they need to excel in both digital
capabilities and leadership capabilities. The
bookprovideshow-toexamplesandcasestudies
for leaders who are looking to venture into the
true digital age, and is split into three parts:
• Building Digital Capabilities
• Building Leadership Capabilities
• Back at The Office - a leader’s playbook
A solid reference for everyone involved in
digital transformation, the book is ideal for
C-suite executives, managers, consultants and
academics, and the 300+ pages unfold the value
of new technology and how Digital Enterprises
do business with these technologies. The rich
and insightful pages also present readers with
a stream of new business opportunities that are
based on digital technology.
The book provides readers with The Digital
Capability Framework (DCF), which is a strategic
management toolset that helps define a
customised plan to transform an organisation
into a Digital Enterprise. The DCF does this by
enabling organisations to obtain clarity about
what maturity level they have in terms of six
Digital Capabilities, what maturity level they
wish to attain, and how they intend to achieve
this. The DCF is also comprised of four building
blocks.
Leading Digital Digital Enterprise Transformation
Turning technology into
business transformation
By Didier Bonnet, George
Westerman and Andrew McAfee
Published by Harvard Business
Review Press
ISBN: 978-1-62527-247-8
a business driven approach to
leveraging innovative IT
By Axel Uhl and Lars Alexander
Gollenia
Published by Gower
ISBN: 978-1-4724-4854-5
Discover more at: www.leadingdigitalbook.com
Discover more at:
www.gowerpublishing.com/isbn/9781472448545
Recent Books on Transformation

10. TR ANSFORM10
Strategic Intent Without
Transformation Capability
BUSINESS TRANSFORMATION MANAGEMENT CAPABILITY
A prerequisite for transformation success
Until recent years, many companies relied upon
project management approaches to achieve successful
business transformation. There was the assumption
that the evangelised and widely adopted project
management approaches were not only fit for project
delivery, but that they could also be adopted as an
approach to transformation.
The harsh reality couldn’t be further from the truth as
painful and disastrous transformation programmes
riddled organisations throughout the world, leaving
company executives with egg on their faces as
they struggled to explain to Chairmen and other
stakeholders, why they were unable to realise the
strategic intent they had promised.
The fact is that traditional project and programme
management is only one of nine components of
successful business transformation management. They
are key components, but so much more is required if a
company is committed to being among the minority
30% that achieve successful business transformation.
ith a world that requires companies to
transform or step away from the table,
executives are highly focused on strategy
that includes innovation, digitalisation and ambitious
transformation.
Every company needs great strategy, but research and
the history books repeatedly demonstrate that those
whocreatestrategythatcantrulyimprovetheirbusiness
often wrongly assume that they have the capability
to realise that strategy. The reality is that over 70% of
executives commit to realising strategy that they fail to
achieve - largely because their organisation lacked the
right transformation management capability.
This is not dis-similar to the keen sailor who has the
passion, ambition and money to purchase a yacht
that’s fit to sail around the world, and assumes his
regular sailing-mates will be capable of successfully
undertaking a round-the-world voyage with him.
Because the passionate sailor with a healthy budget is
missing one key component called ‘capability’.
Thefactthatover40%ofthecompaniesthatwereatthe
top of the Fortune 500 in 2000, were no longer there in
2010, should be encouragement enough for executives
to invest in the right transformation capability, and not
simply assume that their operational teams have what
it takes to enable strategic intent.
W Project Management is not Business
Transformation Management

11. 11TR ANSFORM
After extensive research and collaboration with
transformation practitioners and leading academics,
the Business Transformation Academy in Switzerland
addressed this widespread issue and in October 2012
publishedtheBTM²BusinessTransformationManagement
Methodology Handbook (available from Gower).
Since then, around 200 senior business consultants and
transformation executives have become certified as
Global Business Transformation Managers (GBTM) who are
equipped with the leadership and management qualities,
BTM² knowledge, and transformation experience required,
to act as a trusted advisor to C-suite executives and help
them achieve their strategies.
Transformation Management Disciplines
Meta Management
Strategy Management:
Value Management
Risk Management
Programme and Project Management
Business Process Management:
IT Transformation Management
Competence and Training Management
Organisational Change Management
BTM²
Certified Transformation Management
When seeking the right expertise in any profession, it is
always wise to ensure the professional you engage with,
has the relevant certifications required in that profession.
This applies when looking for a Solicitor, Project Manager,
Architect or Business Transformation Manager. Then of
course you look for their experience in their respective
field, testimonials and their published expertise across the
Internet.
Around 200 BTM² certified Global Business Transformation
Managers in the World.
A good start …
but not enough to go around.
BTM² Practitioners
To find a certified BTM² consultant to help your
organisation ensure it has the capability required
to achieve strategic intent, search for BTM²
consultants on LinkedIn, etc.

12. TR ANSFORM12
Ready To Ride a Digital Wave?
A digital revolution has already begun and the world is awash with start-ups disrupting
business - sometimes setting off some startling wake-up calls for established companies.
While larger, not all firms can be as nimble as
start-ups, neither can they afford to simply get left
behind on the shore and watch their younger more
agile competitors catch the digital waves. The
complacent “we don’t need digital” approach is
what will see many a firm get left behind the same
way that Kodak once did, after years of feeling their
were unstoppable.
In many organisations, the gap between the level
of desire to ride a digital wave and the level of
ability required to ride it is often a frightening one.
Despite ambitious strategies, many firms are by no
means equipped with the right level of innovation
and transformation capability, and fundamental
IT excellence required to successfully transform
themselves into a digital enterprise.
The Digital Transformation Framework
In November 2014, SAP and the Business
Transformation Academy published the Digital
Transformation Framework (DCF) in the book
On no account should the digital transformation be limited only to the
topic of IT Transformation. Without addressing the business site, and the
identification of business needs and capabilities, digitalisation might be
doomed to failure
“ “
“Digital Enterprise Transformation”. The DCF is
a strategic management tool that helps define
a customised plan to transform an organisation
into a digital enterprise. It does this by enabling
organisations to obtain clarity about what
maturity level they have in terms of six Digital
Capabilities, what maturity level they wish to
attain, and how they intend to achieve this.
Thought leaders who contributed to the book
clearly state, “on no account should the digital
transformation be limited only to the topic
of IT Transformation. Without addressing the
business site, and the identification of business
needs and capabilities, digitalisation might be
doomed to failure”.
Six Digital Capabilities
The six digital capabilities specify the key
functions and skills that are required to become
a Digital Enterprise, and they are classified as
‘Digital Transformation Enablers’ and ‘Digital
Transformation Goals’, as illustrated below.

13. 13TR ANSFORM
Digital Transformation Enablers
Innovation Capability enables an organisation to
generate, identify, assess, and realise new products,
services and processes facilitated or driven by digital
technologies and management practices.
Transformation Capability is defined as the holistic
management of extensive, complex changes on which
the organisation’s future success strongly depends.
IT Excellence means that an organisation’s IT function
is capable of providing excellent IT solutions to
support its overarching digital transformation goals.
IT excellence can include areas from data security to
mobile devices, and from IT platforms to IT staffing.
Digital Transformation Goals
Only when a company has the appropriate skills for
digital transformation, should it pursue the desired
Digital Transformation Goals of Customer Centricity,
Effective Knowledge Workers, or Operational
Excellence. For Digital Enterprises these goals involve
achieving high-level skills in understanding customers,
having a close relationship with them, to be able to
provide highly motivated and collaborative working
environments, and ensure process execution is highly
effective and efficient.
A Digital Enterprise excels at innovation and has the
business transformation capability to derive real
financial benefit out of leveraging digital technologies.
But even if a company can both rapidly sense and
want to take advantage of new technologies, it must
have the capabilities to do so, which is where many
companies trip over their own naive assumption that
their existing team can suddenly become overnight
transformation management experts. Compromising
on capability can almost guarantee a company a
troubled transformation.
Closing the Capability Gap
Digital Capability Maturity Models are the structured
assessments used to evaluate the digital maturity
of an organisation. You can engage a BTM² business
transformation consultant to work with your teams
to undertake an assessment of your organisation’s
current DCF maturity levels, and identify the
improvements required to close any gaps, in order that
the organisation is properly prepared to embark on the
achievement of its Digital Transformation Goals.

14. TR ANSFORM14
ome have said that Risk is becoming the
fourth dimension of business. People were
the first dimension; Process the second;
Technology became the third, and embedding
Risk as the fourth dimension of business has
the potential to fundamentally transform how
organisations connect risk to reward.
Many organisations achieve results from risk
by mitigating overall enterprise risk, increasing
efficiency and reducing overall cost of controls, and
creating value via a blend of risk mitigation and cost
reduction
A study by Ernst & Young found that while most
organisations perform the basic elements of risk
management, the top performers do more.
The study revealed that risk practices that
were consistently present in the top 20% of
performers, were not present in the bottom 20%.
The risk practices that were found to be critical
to transforming risk and driving better business
performance were:
• Enhancing risk strategy
• Embedding risk management
• Optimising risk management functions
• Improving controls and processes
• Enabling risk management
• Communicating risk coverage
The most successful leaders know that turning risk
into results gives them a competitive advantage.
Those who have not grasped the advantages
yet, often have no idea what the return on risk
investment could be. These leaders need expert
guidance to adopt the risk practices prevalent
among top performers, and to better understand
the value of good risk management.
RISK – The 4th
Dimension of
Business
S After 576 interviews with companies around the
world and a review of more than 2,750 analyst
and company reports, the positive relationship
between risk management maturity and financial
performance was established, suggesting:
• The top-performing companies (from a
risk maturity perspective) implemented on average
twice as many of the key risk capabilities as those in
the lowest-performing group.
• Companies in the top 20% of risk
maturity generated three times the level of EBITDA
(Earnings Before Interest, Taxes, Depreciation and
Amortization) as those in the bottom 20%.
• Financial performance is highly correlated
with the level of integration and coordination across
risk, control and compliance functions.
• Effectively harnessing technology to
support risk management is the greatest weakness
or opportunity for most organisations
Operational Risk, Transformational Risk,
Governance & Compliance, Strategic Risk, Financial
Risk and Opportunity Management, should all
appear on the executive’s radar. The challenge for
many companies is, “how do we get there?“

15. Business Transformation Management (BTM) is the
holistic management of extensive, complex changes on
which an organization's future success strongly depends.
30% DISCOUNT FOR TRANSFORM READERS ON THESE
TITLES ALL PUBLISHED WITH THE SUPPORT OF SAP
www.gowerpublishing.com
‘In my opinion this handbook encompasses all relevant aspects of a
professional approach to business transformation.’
Reza Nazeman, CIO Europe, Middle East & Africa, Microsoft
‘The handbook brilliantly combines art and science marrying the
experience and expertise of highly successful practitioners with multi-
disciplinary methods, underpinned by the best practices of the leader in
enterprise technology solutions.’
Lilian Corvington - Global Director EVO Program at Vodafone
‘Many congratulations to Axel Uhl, Lars Gollenia and their extended team
for the wealth of business transformation guidance they have provided
throughout this book…’
Rob Llewellyn – independent consultant
This book provides an integrative Business Transformation Management
Methodology, the BTM², with an emphasis on the balance between the
rational aspects of transformation and the often underestimated emotional
readiness of employees to absorb and accept transformation initiatives.
Using a variety of case
studies, this book provides
unprecedented insights
into characteristics of
current transformation
programs and their
potential benefits.
In order to embrace recent
challenges and changes
in the governance of IT
strategies, SAP and its
think tank – the Business
Transformation Academy
(BTA) – have jointly
developed the Digital
Capability Framework
(DCF). Digital Enterprise
Transformation outlines this
framework which supports
companies in analyzing their
business potential generated
by systematic usage of
innovative technologies.
READERS OF TRANSFORM CAN BUY ANY OF THESE BOOKS AT
30% DISCOUNT SIMPLY QUOTE G14JDA30 AT THE CHECKOUT.
Rob Llewellyn - Transformation Consultant

16. GET THE RIGHT CAPABALITY
ON BOARD
Because no ambitous journey will succeed with less
As trusted advisors to
transformation executives
we provide the capability
which enables strategic intent
business transformation
advisory & management
programme start-up,
management and recovery
contact us for information or to request a free consultation
+44 20 3239 3525 hello@cxo-transform.com
www.cxo-transform.com