enterprise benefit planning
TRANSCRIPT
TitleEnterprise Change Management benefit planningA value proposition to enrich Business Information Services
November 2012
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“Enabling an effective enterprise change management capability
increases an organization’s competitive business advantage and
protects its triple bottom line (People, Profit & Product).”
Change-management.org
Enterprise Change Management (ECM) is the practice of optimizing end-to-end flows of trusted business information to increase customer satisfaction,gain competitive advantage and benefit the bottom line.
ECM provides for five times more ROI than standalone IT work
Gartner 2011
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What we do today to manage the change agenda
• We have triage process ‘the kitchen’, which provides the
disciplines and practices necessary to deliver a rolling set of
organizational changes – the ‘food’ dish
• Kitchen goal is to ensure leadership team have sight on project solutions
being delivered as incremental business-value dishes
• Quality is about here and now, i.e. if a big business critical order appears
there is panic by other customers. No benefit metrics are captured so no
Michelin stars
• Business Technology have take lots of food orders and has become quickly
backed up – i.e. customers leave as they have waited so long
• The “Change fodder” machine is full and a lot of old stuff is sitting waiting to
be processed and used – there is no sell by date applied
• There is no end-to-end view of fresh ingredients capacity, loaded against
customer outcomes needing to be satisfied
• “That’s expensive” is not set in the context of the quality of dish – the
benefit….…….
3
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Benefit Driven Project Delivery – a small tweak to triage
Benefit Statement
Benefit Contract
Benefit Account
Change Definition
Delivery schedule
Business Owner
Business Capability Performance
Business Benefit Lifecycle
IT Asset LifecycleV
V
V V V
V
V
VVV
Technology Performance
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Arrive with a benefit sheet to critique the dish before it is made
• Benefit statement
• Financial gains to be achieved and when
• Measureable efficiency gains to be achieved and when
• Observable customer gains to be achieved and when
• What I am prepared to pay for a full solution
• Benefit Contract
• Who will consume what % of the total statement
• Who will deliver what % of the total change
• What pace of change delivery will provide the best results
• Benefit Account
• What timeframe benefits will be accounted in
• What targets will be used to measure success
• What critic reviews are to be reported
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What are the key roles to be able to critique dishes successfully
• Identifies the Business Prime ‘the customer” who will
- Reports on the KPI gains of the business function(s) modified
- Owns the “benefit statement”
- Secures the benefit contract
• Identifies the Business Project Manager ‘The Chef” who will
- Reports to the sponsor business service delivery projects KRI
- Owns the “benefit contract”
- Provides the quality controls to mitigate benefit erosion risk
• Identifies the Business Owner “the critic” who will
- Reports to the organization KVI gains being seen in benefit harvesting
- Owns the “benefit account” statement to ensure ongoing collection of value
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Discover
Introduce a Business Change lifecycle to help identify and establish early benefit statements
What business performance challenges need addressing now to move forward?
What value is achieved in securingthe right business mandate?
What is the best solution At this timeto secure the envisaged benefit?
What are the quickest ways to deliver the most benefits?
How much actual customer value is being harvested
Value
ViableDeliver
AssessMaturing BusinessCapability
People +Process +Tools
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Plot benefit dishes based on size /quality onto a
change menu to identify customer wait times
Grow IntegratedValue
DriveOperationalEfficiency
Business change
Systems change
Operational changes Transformational planning
More Of The Same(changes to business tools
by linking information together)
More Of The Same(using new tools)
Grow the value of a Business Capability
Improve Information flowCompetitive market advantage
New analytical functions
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Summary
• Create a clear benefit statement based on the business outcome being sought - how hungry
• Plot benefit statements using a business performance to operational matrix – how busy
• Validate priority and end to end alignment – to go ?
• Draft a benefit map to facilitate communication and design of the aggregated action plan to enable continuous and successful delivery
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Phase 3: Continuous Improvement
Phase 1: Alignment
Phase 2: Integration
Phase 3 OUTCOME
A value driven agenda that is business outcome focused and directly supporting maturity of the business operating model
Phase 2OUTCOME
Business technology platform providing performance to enabling Enterprise Integration
Key: Roadmap items
Outcome Based ActivityBenefit Realisation point
Deliverable Milestones
Franchise
OperationsMarketing Sales
Pro
duct
Deliv
ery
Tale
nt
Managem
ent
Com
munic
atio
n
Vision
Through active collaboration
We achieve optimal usage of
business technology-based
solutions to meet on-going
goals and ambition
Business Services
Phase 1 OUTCOME
Business Units recognize value in IT’s role being to partner with other Business units to improve customer service
Business benefit Roadmap - towards 2016
Business Roadmap
Strategy maturity Phases
Business Unit Services
Phase outcomes
The roadmap explains inter-dependencies and benefit maturity
rationale for each business service shown
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Phase 3: Continuous Improvement
Phase 1: Alignment
Phase 2: Integration
Phase 3 OUTCOME
A value driven agenda that is business outcome focused and directly supporting maturity of the business operating model
Phase 2OUTCOME
Business technology platform providing performance to enabling Enterprise Integration
Key: Roadmap items
Outcome Based ActivityBenefit Realisation point
Deliverable Milestones
Franchise
OperationsMarketing Sales
Pro
duct
Deliv
ery
Tale
nt
Managem
ent
Com
munic
atio
n
Vision
Through active collaboration
We achieve optimal usage of
business technology-based
solutions to meet on-going
goals and ambition
Business Services
Phase 1 OUTCOME
Business Units recognize value in IT’s role being to partner with other Business units to improve customer service
Business benefit Roadmap - towards 2016
The roadmap explains the inter-dependencies and benefit maturity
rationale for each business area shown
EA facilitating business alignment workshops between stakeholders
GIS Business Case, Blueprint & Roadmap agreed Stakeholder decision planning based on effective KPI reporting
Distribution’s BPM engagement secured .
EA function value add recognizedby other business units
EA phases & business maturity pace agreed
ARB maturity plan forbusiness units agreed
Capability catalogue published
Information catalogue published
Capability owners and process leads identified & agreed
Agile Business Technologyplatform
IT is business performance focused
Solution Architects driveBusiness solutions
Business capability driven targets established
Agreed skill sets and approach with IT suppliers
Quality driven reviewof supplier value add
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Why establish a Business Benefit Roadmap – the menu
• Visualise the realization of strategy as a working communication tool
• Establish capability maturity phases and execution pace
• Communicate the key activities to prioritize optimal benefit delivery
• Highlight dependencies between business capabilities / business teams
• Assists the decision case to achieve optimal value and growth.
• Blends immediate “quick wins” whilst maintaining strategic direction.
• Shows activities in context of benefit decisions needing to be taken
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End result is an Integrated Business Technology Platform
Business Usability
• Business function and Information portal
• Mobile access always on
Knowledge services
• Knowledge driven business services (BI, analytics etc)
• Event driven business decision making functions
Information Management
• Unified & trusted business information on demand
• Content, document & record management
Data Network
• Business Technology platform management capability
Business Performance
Gains
Technology Performance
Gains
BusinessOutcomeDriven
Delivery & Support
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Summary
• Create a clear benefit statement based on the business outcome being sought - how hungry
• Plot benefit statements using a business performance to operational matrix – how busy
• Validate priority and end to end alignment – to go ?
• Draft a benefit map to facilitate communication and design of the aggregated action plan to enable continuous and successful delivery
Title
Andy Parkins – Business
Technology Leader
778-554-5673
Thank You
Questions?
Planning for an integrated information platform will drive better benefit
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Aligning language to fine tune understanding
16
• Capability is measured through its Key Value Indicators
• Business Service is measured through its Key Risk Indicators
• A Business function is measured through its Key Performance Indicators
An indicator sets the range of parameters to give consistent reporting practice, we then set targetsto motivate a change in business behaviors to improve the indicator reading and drive optimal maturity of a capability within the organization
• KVI is customer facing and measures outcomes that differentiate us from the competition
• KRI is quality focused and measures the ability to sustain qualitative growth at optimal cost
• KPI is business unit facing and measures the performing efficiency of operational practices
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Benefits are a function of Change Management
Integration Architecture
(Capability Framework)
Business Planning
(Solution readiness)
IT Asset Management
(Refresh Lifecycle)
Portfolio
Management
(Benefit Plan)
Business Projects
(Outcome delivery)
Project Management
(delivery schedule)
Transformation of
Business practices to
achieve optimal value
Business Solutions Management controls
Business change communication
Change management consists of a number of integrated functions and tools to
provide an agile practice and knowledge repository
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The magic number of benefit planning is 5
5X Return on Investment *
* Industry Average from Gartner
Business Capability
Tools1-2x
Practices1-2x
People2-3x
1
8
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ECM Business Integration Maturity Framework
Organizational Focus Business Requirement
Level 1. Technical Integration Point 2 Point dataBusiness Unit Opportunity
Information Integration Unified InformationOperational Efficiencies
Functional Integration Service OrientedBusiness Outcomes
Corporate Integration Knowledge DrivenCorporate benefit
Enterprise Integration InteroperabilityCompetitive Agility
Integration Strategy
Level 2
Level 3
Level 4
Level 5
Busi
ness
Drivers
: Ta
ctic
al to
Str
ate
gic
Moving Business Unit solutions from silo to integrated
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Enterprise Business Performance framework
(Add competitive advantage & customer value) Business Blueprints
To improve capability (strategy & impact)
Business Reference ModelEnterprise Change Management coordination
Business Change Portfolio(Doability of tasks & projects)
2) Informed Decision Making
1) Ongoing Benefit Harvesting
3) Outcome Driven Activities
(Push trusted information into the right hands)
(Right actions that achieve the right business gains)
People
Profit
Product
Customer Service(Internal & external)
Enterprise Simplification(O&M savings)
Operational Efficiency(Information flows)
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Information integration is the secret source to enabling
competitive business gain
Trusted business information pushed into decision maker hands improves
organizational efficiency and maintains operating cost. As a business
function, the Business Technology platform exists to support this outcome.
INFORMATION = DATA + INTEGRITY