Business Transformation Frameworks

Sedki AllaouiPhD Candidate

A Review From a Project Management Perspective

Robert PellerinPhD

Mario BourgaultPhD

Mathematics and Industrial Engineering DepartmentEcole Polytechnique of Montreal

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Agenda

Context

Transformation : Definition & Key Success Factors

Transformation Frameworks

Project Management Perspective

Conclusion

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Organizations’ Context

Global competition

Constant pressure• Economy

• Regulation

• Technology

• Etc.

Increasing pace of change

Change is imperative for organizations’ survival

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Why is transformation relevant ?

Change initiatives• From incremental to radical

• High failure rate : up to 70%

Change approachesType of Change

Incremental Radical

Value &

Risk

Low Continuous Improvement

Business Process Reengineering

High Business Process Reengineering Transformation

Transformation as a solution to radical & high risk change

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What is Transformation ?

Transformation is a radical change to various

dimensions of the organization (people, process,

information, technology). It aims to bring

substantial added-value translated in fundamental

changes in how work is done and how value is

delivered. It is a complex and very risky endeavorPurchase, V., Parry, G., Valerdi, R., Nightingale, D. et Mills, J. (2011). Enterprise Transformation: Why Are

We Interested, What Is It, and What Are the Challenges? Journal of Enterprise Transformation, 1(1), 14 33.‑

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Why do organizations transform ?

Survive ThriveOR

Levels of Transformation

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Supply Chain

Company

Business Area(s)

Business Unit(s)

Key Success Factors

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Team

Sponsorship

Leadership

Governance

Collaboration

Approach

Holistic

Integrative

Program/Project Management

Effectiveness before Efficiency

Enablers

Analytical

Organizational

Organization's Maturity

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To enact transformation’s success factorsA framework is required

What Constitutes a Framework ?

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Framework

PrinciplesElements to uphold that

ensure the transformation’s success

MethodologyStructured approach

that guides the initiation, planning and

execution of the transformation

Organizational Enablers

A governance and cultural ground to

transform

Analytical Enablers

Set of practices and techniques to

accomplish the required objectives of the

methodology

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Transformation Frameworks

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Process Reengineering Methodology

Kettinger, W. J., Teng, J. T. C., & Guha, S. (1997). Business process change: A study of methodologies, techniques, and tools. Mis Quarterly, 21(1), 55–80

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Lean Transformation Roadmap

Nightingale, D., & Srinivasan, J. (2011). Beyond the Lean Revolution: Achieving Successful and Sustainable Enterprise Transformation. New York, USA: AMACOM

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Business Transformation Management Methodology BTM2

Uhl, A., & Gollenia, L. A. (2013). Business Transformation Management Methodology. Gower Publishing Limited.

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Frameworks ComparisonProcess

Reengineering Methodology

Lean Transformation

Roadmap

Business Transformation Management Methodology

Pros• Detailed for lower

transformation levels• Tools & Techniques

• Detailed planning cycle• Integration• Analytical

• Balanced• Governance

structure• Integration

Cons

• Not adapted for high level transformation• Influence of IT

practices

• Less focus on soft aspects

• Less structured methodology• Conceptual

guidelines

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Transformation frameworks are complementary

One size does not fit all !

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Project Management PerspectiveProcess

Reengineering Methodology

Lean Transformation

Roadmap

Business Transformation Management Methodology

PMBOKKnowledge

AreasPartial Coverage Partial Coverage Full Coverage

Planning• Contingency

approach• Focus on time and

costs

• Detailed• Includes Analysis

and Design• 2 levels

hierarchical plans

• Governance• 3 Levels

hierarchical plans• Conceptual

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How Can We Use These Frameworks ?

Transformation initiative delivery strategy• Adapt to context

Structure the transformation initiative• Scope

• Stakeholders

Planning tools• Planning approach

• Work Breakdown structure

• Governance

Frameworks help structure and plan transformation initiatives

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Challenges

Organizations' culture and mindset• Style of leadership

• Collaboration

• Vocabulary and terminology

Project Management maturity• Between organizations

• Within each organization

Transformations are context specific

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Conclusion

Project management is crucial for transformations’

success

Transformation managers• Balance analytical and soft skills

• Adaptability

• Collaboration

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Thank you !