Transformations in Organizations and Transformational Projects

 

Newpapers, industry magazines, corporate press releases and televisions sound-bites have introduced “transformation” and “transformational” into the lexicon of content in reporting on projects and describing corporate reorganizations.   

From behind podiums and microphones, executives and public officials are touting the benefits of transformational projects.   The content typically emphasizes how the projects will transform the company, the region, the community and the products/services to customers.   Some of the projects in the media include:

• Hudson Yards – a real estate development over a rail right of way
• 7 Subway Line Extension – a transit system expansion extending from 42ndSt to 34thSt at  Hudson Yards
• 2nd Ave Subway – a transit system expansion along Manhattan’s east side between 63rdSt and 96thSt
• Double Track  -  a railroad system expansion between Farmingdale and Ronkonkoma
• 3rd Track – a railroad system expansion between Floral Park and Hicksville

In the rail transit domain, the context may contain dramatic changes in the organization to improve operating performance or to re-energize the completion of major projects that change the existing products and services to customers.   This may include system expansions with new terminals that advertise high-end property features and stores, and a new fleet with never before seen amenities, such as charging stations, video advertizing, new seating features, and CCTV monitoring operator and passenger compartments.  

On projects, the organization provides the input and the tools and techniques to accomplish the plan and realize the deliverables and benefits.  Not surprising, transformational projects usually contain detailed analysis of the financial investment and forecast returns for the execution, start-up, operation and maintenance phases.   Each of these phases may also require adjusting the organization’s operating model for staffing, training, facilities and furnishing, tools and equipment, and materials.  

Transforming an organization is different than the results from the output of the projects involving capital improvements, and it may require changes in culture, reporting structure, and processes and procedures.    For these transformations, there needs to be a strategic framework for changing the current performance trends and to better aligning organizational assets with longer term goals and expectations for both short term and continued improvement in the quality of management and business operations.   Some organizational changes in the media include:

• Restructuring management and business processes, procedures and practices at NYC-MTA
• Changing management leadership at MTA East Side Access Project with new Leadership
• Integrating a new PMO into the MTA East Side Access Projects
• Launching a consolidated website for MTA-LIRR Projects – A Modern LI (http://www.amodernli.com)  

Any change is an organization can be disruptive and create challenges to existing operations while improvements are defined and implemented systematically.   The decided upon change should be the outcome of a thorough review of the existing organizational conditions, work flow problems and execution risks.  Determining the transformation plan and proofing the end results will focus on:

Validating the reported performance metrics and trends are correct and accurate

Verifying and concurring changes are required to better align all activities and deliverables with the organization’s business plan and the organization’s assets including personnel, processes, procedures, tools, and techniques.      

The transformation should be undertaken as a project or a series of projects that when completed can mitigate conditions or solve the stated problem(s), and achieve the envisioned end results.  The solutions should demonstrate improvements in the organization ability and confidence in achieving the short term and long term goals.  Ideally, the plan will follow proven project management and quality management processes and methods and adhere to a defined lifecycle.   However before finalizing a plan roll-out, the organization’s executives should perform a rigorous vetting of the plan to prove out assumptions, approve the approach and hold the project team accountable for the expected results.  

The transformation initiative must be carefully planned and executed with transparency throughout the organization’s reporting structure.   The lessons for updating tools and techniques and adopting best practices learned from executing capital projects will be applied for transformation, including a proven communications plan and a strong scope management plan.

An operating transformation in an organization will require a well defined communications plan covering:

• Internal press releases on the poor performance and the plan for making improvements in processes, training personnel and hiring additional staff
• External press releases on corporate commits to specific and aggressive milestones and dates for implementing changes
• Local media coverage and endorsements by public officials and influencers to the benefits from the changes to the community and the region
• Social media videos covering sound bites on cost savings, tax reductions, employment increases, and home values

The transformation plan will be complemented by strong project governance and highly skilled and experienced project staff.  Since the transformation will likely require changes in existing practices, processes and procedures, it will be necessary to continue the existing operations while the transformation proceeds.   As milestones and deliverables are achieved, changes will be systematically and deliberately implemented.   The plan will identify the required training for personnel and the new equipment, tools, software and software licenses that will be installed, tested and ready for use.    

The scope of the transformation will focus on re-engineering management work flows, which are the root cause of poor performance metrics.  The work flow reviews should include attributes and objectives such as:

• Existing project documents to identify gaps, such as materials management involving Owner supplied materials, and work zone logistics for work areas shared by multiple contractors
• Existing project documents to eliminate requirements that are obsolete and no longer used for management functions
• Lessons Learned program to ensure documenting and sharing negative and positive experiences across all management functions
• Work flow durations to compare expected timelines with actual durations
• Processes and procedures to make changes to overly complex and time consuming steps, which erode value by creating non-value added deliverables, such as duplicating logs and tracking sheets already produced by other participants.
• Project schedule to validate activity sequences, interfaces with predecessor and successor work packages, and contact time and productivity is consistent with work hours and access restrictions.

Like project plans, the transformation milestones and dates should be realistic, measurable and achievable.   In some cases, public sector transformations are the product of executive goals and government influencers.    This often creates lofty promises and aggressive performance metrics that challenge an organization’s operating processes, its long established working culture, and the quality of personnel.   These challenges and risks will need to be addressed as part of the transformation plans.   Ideally, the format and content of the plans will resemble the Project Charter and Project Management Plan requirements from Project Management Institutes – Project Management Body of Knowledge (www.pmi.org) and Federal Transit Administration (www.FTA.dot.gov).