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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
2
Agenda
Context
Transformation : Definition & Key Success Factors
Transformation Frameworks
Project Management Perspective
Conclusion
3
Organizations’ Context
Global competition
Constant pressure• Economy
• Regulation
• Technology
• Etc.
Increasing pace of change
Change is imperative for organizations’ survival
4
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
5
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.‑
6
Why do organizations transform ?
Survive ThriveOR
Levels of Transformation
7
Supply Chain
Company
Business Area(s)
Business Unit(s)
Key Success Factors
8
Team
Sponsorship
Leadership
Governance
Collaboration
Approach
Holistic
Integrative
Program/Project Management
Effectiveness before Efficiency
Enablers
Analytical
Organizational
Organization's Maturity
9
To enact transformation’s success factorsA framework is required
What Constitutes a Framework ?
10
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
11
Transformation Frameworks
12
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
13
Lean Transformation Roadmap
Nightingale, D., & Srinivasan, J. (2011). Beyond the Lean Revolution: Achieving Successful and Sustainable Enterprise Transformation. New York, USA: AMACOM
14
Business Transformation Management Methodology BTM2
Uhl, A., & Gollenia, L. A. (2013). Business Transformation Management Methodology. Gower Publishing Limited.
15
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
16
Transformation frameworks are complementary
One size does not fit all !
17
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
18
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
19
Challenges
Organizations' culture and mindset• Style of leadership
• Collaboration
• Vocabulary and terminology
Project Management maturity• Between organizations
• Within each organization
Transformations are context specific
20
Conclusion
Project management is crucial for transformations’
success
Transformation managers• Balance analytical and soft skills
• Adaptability
• Collaboration
21
Thank you !