keeping business momentum (pmi 2008)

Project Management Parade 2008 - T Mobile Netherlands BV

Keeping your business momentum during a major change

Hans Winterink, Marieke Snoep & Frank Gottenbos


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 integrationType of integration required high focus in specific area’s.

Get senior management accountability involved.

High impact on all staff.

Focus on speed so define and start required program as soon as possible.

Create focussed and aligned targets for each area.

Use best of both parties.

Put your best people on the job.

Focus on day 1.

Get senior management accountability involved.

High impact on all staff.

Focus on speed so define and start required program as soon as possible.

Create focussed and aligned targets for each area.

Use best of both parties.

Put your best people on the job.

Focus on day 1.

PMI of Orange and T-Mobile can be characterised as integration with high-level of change

PMI of Orange and T-Mobile can be characterised as integration with high-level of change

Highest level of change

Lowest level of change

Acquired company becomes BU in

portfolio

Acquiring company integrates acquired

company

Both companies merge into one new company

Acquired brand and products remain

Acquired products remain

Acquired organisation remains(structure, buildings)

Focus, Focus Focus!Focus, Focus Focus!


2. Challenges at start of integrationInitiation of the integration program with its specific characteristics implied risks for the running project portfolio

Confidential start

Strong content focus vs procedural

Large scope, comprised large number of change projects

Speed is essential

High management attention

Exciting, high motivation

Change in all area’s, affecting the whole company

Confidential start

Strong content focus vs procedural

Large scope, comprised large number of change projects

Speed is essential

High management attention

Exciting, high motivation

Change in all area’s, affecting the whole company

Size of portfolio more than doubled;

Many projects with unusually short timelines causing planning issues

Resource conflicts, no questions asked when ‘integration flag’ is waved;

Decibel driven in stead of data driven prioritisation

Unnecessary delays in running portfolio.

Size of portfolio more than doubled;

Many projects with unusually short timelines causing planning issues

Resource conflicts, no questions asked when ‘integration flag’ is waved;

Decibel driven in stead of data driven prioritisation

Unnecessary delays in running portfolio.

Consequences for the portfolio Consequences for the portfolio Integration characteristicsIntegration characteristics


2. Challenges at start of integrationThe 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?


Define a new strategyDefine a new strategyProvide and validate strategic direction as soon as possible

Cascade new vision throughout the organizations

Provide and validate strategic direction as soon as possible

Cascade new vision throughout the organizations

Quickly capture valueQuickly capture valueSecure targeted value creation opportunities as soon as possible

Secure targeted value creation opportunities as soon as possible

Keep businesses running

Keep businesses running

Maintain customer focus, minimize uncertaintyMaintain/improve service levelsSolidify relationships with sustaining dealersKeep key talent satisfied & productive throughout merger

Maintain customer focus, minimize uncertaintyMaintain/improve service levelsSolidify relationships with sustaining dealersKeep key talent satisfied & productive throughout merger

Create the new company

Create the new company

Put in place the new organization structureAppoint committed and accountable managersDevelop and speed up merged decision making processes

Put in place the new organization structureAppoint committed and accountable managersDevelop and speed up merged decision making processes

Common Challenges for Acquisitions

Drive performance excellence – “do not take the eyes of the

ball”

Use as vehicle for senior management alignment

Drive performance excellence – “do not take the eyes of the

ball”

Set-up mechanisms to ensure smooth and

effective execution of integration

3. Context of change Four main challenges.


3. Context of change Program Objectives.

Structure of the ProgramStructure of the Program

Coordination Processes


Baseline, Tracking and Monitoring

Tools


Tools

Change Management /

Communication Plan

Change Management /

Communication Plan

Maximise Deal Closure / Implementation SuccessMaximise Deal Closure / Implementation Success

Manage the Time of Participants


Manage Complex Environment


Main Program ChallengesMain Program Challenges Key Program Office ElementsKey Program Office Elements

Alignment of Senior Leadership



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

Tactical level

Operational level

Integration / change projects

Running portfolio

Focus on speed.Answer WIFM (What’s In it For Me).Solve issues quickly / make decisions swiftly.Remain focused on customers and revenue.

Key success factors integration

Clear prioritisation;Portfolio stability;Quality of delivery.

Key success factors running business


4. Portfolio management impact Integration portfolio was competing with running business portfolio, both impacting same resources.

Running business Portfolio

Integration portfolio


5. Our SolutionIn order to come to a manageable situation both portfolio’s needed to be managed as an integrated whole.

Running business Portfolio

Integration portfolio

Project roadmap milestones

Financialtargets

OperationalKPIs

Communication and Change Management

Strategy Context


5. Our solutionBest practices methodology for Program Management

Continuous Program Management Functions

Progress Tracking & Reporting

Technology Alignment

Stakeholder Communication

Issue Management

Risk Management

Change Management

Program Best PracticesProgram Best Practices

Activities are performed continuously throughout the duration of the deal closure / implementation in an optimised way

Schedules are observed, budgets are met

Relevant messages are communicated to all stakeholders

Appropriate resources are allocated

Issues and risks are managed comprehensively

Consistent and robust project management practices are employed

Project objectives are clearly and quantifiably defined

Project quality meets or exceeds expectations

Business needs are reflected in the implementation; business objectives are met

Interdependent projects are coordinated

Structured process for managing project meetings

Activities are performed continuously throughout the duration of the deal closure / implementation in an optimised way

Schedules are observed, budgets are met

Relevant messages are communicated to all stakeholders

Appropriate resources are allocated

Issues and risks are managed comprehensively

Consistent and robust project management practices are employed

Project objectives are clearly and quantifiably defined

Project quality meets or exceeds expectations

Business needs are reflected in the implementation; business objectives are met

Interdependent projects are coordinated

Structured process for managing project meetings

Program Management

Quality Assurance

Resource Management

Business Alignment


-20

0

20

40

60

80

100

120

0 20 40 60 80 100

Strategische bijdrage

Fina

ncië

le b

ijdra

ge

5. Our solutionIntegration portfolio needed to be integrated into standard portfolio management process.

PrioritiseTrack & Manage

Analysis DeliveryDesign

Roadmapping

Ideas Project initiation

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4

Team A

Team B

Team C

Team D

Portfolio governance board


5. Our solutionNormal project delivery process features structured interaction between ‘business’and IT.

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

Start project

End project


Functional line management

Consolidated portfolio

5. Our solutionRelation of integration program management with normal portfolio governance. Line management in separate roles to ensure focus on both sets of objectives.

Running business portfolio

Integration program projects

Portfolio governance board

Integration program




Baseline, Tracking and Monitoring Tools

Baseline, Tracking and Monitoring Tools

Change Management / Communication

Plan

Change Management / Communication

Plan




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 likeImportant successes realised in both integration program as in running portfolio

22 of 23 shops converted!

Reporting consolidated

Innovative network consolidation conceptualised

Ben relaunched!

New payment methods in E-shops

Enabled innovative promotions for prepaid


Thank you for your attention.


3. Context of change Program Objectives.





Tools


Tools

Change Management /

Communication Plan

Change Management /

Communication Plan

Define the overall workplanLink integration plans to value drivers of business caseSet top-down targetsBalance long-term planning towards end-state vs planning for immediate actions in the early integration period

Coordinate the interactions and interfaces between the differentinitiatives, workstreams and participantsLeverage efforts across work streams (project management tools, approach, best practices, deliverables, etc.)Develop templates and apply consistently

Develop baselineTrack/report progress, interact with Steering CommitteeIncorporate risk management and ‘control’ actions in the early integration period and risk-assess plans

Define and execute the change management planPrepare communications targeted at all stakeholdersPlan for cultural integration and be prepared for change issuesPut communication at the heart of PMI

Maximise Deal Closure / Implementation SuccessMaximise Deal Closure / Implementation Success

Dynamic external environmentQuality is of utmost importance



Potential for competing prioritiesFinding right resources to supportManage external support requirements



Large number of initiativesLarge number of entitiesInterdependency of actions

Main Program ChallengesMain Program Challenges Key Program Office ElementsKey Program Office Elements



Develop visionFacilitate alignment of senior leadership etc.Support issue resolution


4. Portfolio management impact Integration program was organised along functional lines, resulting in functional projects, whereas running business portfolio consisted of end 2 end projects.

Marketing CustomerService

NetworkOperations …

Program ManagementOffice

1 2 3 ..

Preparation phase Implementation phase

Marketing

NetworkOperations

CustomerService

…

Customermigration

Networkintegration

Operationalexcellence

BestService

HighPerformance

Culture

Program ManagementOffice

1 2 3 4 5

From a functional oriented approach to a deliverable oriented approach

keeping business momentum (pmi 2008)

Business

focus focus

high focus

likeproject management

integration program

t mobile netherlands

strong internal focus

new strategydefine

doubledsize of portfolio