Mapping to Business Value

Turning Chaos to Order

Chaos to Order

Enterprise Value Management

and Governance

Mapping to Business Value

c2o Solutions, LLC“We help organizations optimize performance by improving

planning and execution of business strategies”


Issues Keeping Executives Up at Night

2

How Do I Increase Productivity?

How Do I Reduce Cost?

How Do I Manage Changes?

How Do I Ensure Change Adoption?

How Do I Minimize Risks?

How Do I Acquire & Retain Key Talent?


A Shift in Thought Process…

3

to managing with an

outcome/benefits focus

Clear path to understanding the logic and

likelihood of business case benefits

Objective, business value based approach to

selection

Sponsored by those who seek the benefits

Competition for resources

Business Cases not clearly comparable

Alignment to Business strategy unclear

Financial worth open to interpretation

Sponsored by those who implement the change

Shift the focus from

managing costs ...


Why Manage Value?

Benefits do not just happen when you implement a process or tool change

Benefits are rarely monitored after implementation

Benefits are rarely achieved unless initiative stakeholders are responsible for benefit attainment

Difficulty comparing initiatives during selection/budgeting without clear common information about all candidate initiatives

4

Realizing benefits is a business process…

a continuous process that can and

must be managed!


What Is Value Management

A set of processes, techniques and tools that maximize business value by providing:

Clear understanding and definition of investments and their drivers from “concept to cash”

Objective evaluation and selection of the highest value investments along three dimensions:

alignment with strategic goals

measurable contributions to business objectives

manageable risk

Practical oversight of execution and implementation to deliver business results

Proactive management of all activities necessary to ensure adoption of improved business processes and tools

5


Driving Change & Adoption

6

Solution

Domain

Business

Domain

BenefitsRealization

Solution Delivery

Design & Integration

Business Alignment

Risk

Are we

doing the

right

things?

Are we

getting

them done

well?

Are we

getting the

benefits?

Are we

doing them

the right

way?

The four “Ares”

provide a rich

framework for

assessing and

managing the

achievement of

business value.

To be useful in the

Value Management

process, c2o drives

these questions down

to a greater level of

detail and

incorporates them into

change management

instruments that are

practical, easy to

apply.


Developing a Coherent Change Strategy

7

Business

Performance

Outcomes

Why in

Performance

Terms

Business

Capabilities

How Process

Supports

Technical &

Infrastructure

Capabilities

How Technically

Financial

Benefits

Why in Financial

Terms

Results Chain

Profit

Revenue

Protection

Revenue Growth

Cost

Avoidance

Cost

Reduction

Brand Image

Time

Cost

Quality

Productivity

& Efficiency

Exception

Handling

Local Processes &

Procedures

End to End

Processes

Business Rules

Policies

Security

Data

Applications

Interfaces

Functionality


Developing a Coherent Change Strategy

8

InitiativesOutcomes &

CapabilitiesAssumption

Business

Performance

Outcomes

Why in

Performance

Terms

Business

Capabilities

How Process

Supports

Technical &

Infrastructure

Capabilities

How Technically

Financial

Benefits

Why in Financial

Terms

Results Chain



9

Clear expectation of all necessary activities across all stakeholders

How it all ties together

Clear accountabilities

(commitment)

Measurement

All necessary Business Transition and IT initiatives

Clear and shared

understanding of

outcomes

& capabilities

Developing the right results based on clearly defined capabilities



10

Clear expectation of all necessary activities across all stakeholders

Developing the right results based on clearly defined capabilities

The Benefits Register

tracks progress of the

value achievement


Business Driven Architecture

11

Start with a model

of the Business

Then determine

functional coverageUnderstand requirements in the

context of measurable business

process performance objectives

Bringing all the pieces together to ensure adoption

App. B

App. A

Business View

Organization

& Roles

Business Processes

Applications/Systems

Procedures


Value Management

12

Strategic RoadmapBenefits

Register

A Benefits Register

tracks progress on

achieving the

business value

Each Program produces a

Results Chain to outline

Business Capabilities,

Technical Capabilities,

initiatives and Benefits

Results

Chains

The Roadmap defines Programs

inter-dependencies and priorities

Confirming the Coherence of Strategy


Benefits of Value Management

Business productivity gains achieved through

increased adoption of new processes and tools

Initiatives that will not deliver business value are

cancelled (Cost Avoidance) 78% increase

Increased productivity of workforce by over 25%

Initiative failure rate decreased over 50%

Decreased development & implementation costs over

30%

13


For Information Contact:

Ray Wright

Phone: 404.935.6900

Email: [email protected]

mailto:[email protected]