Keeping Business Momentum (PMI 2008)

Keeping your business momentum
during a major change
Hans Winterink, Marieke Snoep & Frank Gottenbos
Project Management Parade 2008 - T Mobile Netherlands BV

Agenda

Introduction
Challenges at start of integration
Context of change
Portfolio Management impact
Our solution
What success looks like


Introduction


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


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.


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?


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


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

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
Change
Change
Management //
Management
Communication
Communication
Plan
Plan


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.


Integration portfolio was competing with running business portfolio, both impacting
same resources.

Running business Integration
Portfolio portfolio


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


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


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


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


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


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?


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


Thank you for your
attention.


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

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

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


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

…


Keeping Business Momentum (PMI 2008)

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