Business Transformation in Disguise
By Jess Tayel
In the quest to uplift capabilities, better serve customers, improve the bottom line or acquire market share, organizations rely on a mix of projects and programs.
Some projects are scored as critical and complex. Some organizations have a clear and defined scoring system of what is critical and what is not, while others settle for a subjective measure.
But even after you’ve determined a project is critical, there’s more to consider.
Is it Change or Transformation?
When it comes to big, critical projects, ask yourself: Are you delivering a change initiative or a business transformation initiative?
Why is this distinction important? Because they both have different characteristics that dictate how they should be brought to life.
Change initiatives execute a defined set of projects or initiatives that may or may not impact how things work across the entire organization. Examples include introducing a new payroll system, moving into a centralized shared services model or executing an office move.
Business transformation, however, is a portfolio of initiatives that have a high level of interdependencies, leading to change across the organization. They’re focused not just on execution but also on reinventing and discovering a new or a revised business model. That model is based on a significant business outcome that will determine the future of the organization.
With that in mind, business transformation is more unpredictable and iterative, and it’s about a substantial change in mindset and ways of doing business. The “how” may not be as defined as it is in change initiatives, which means you need to try different methods and be more experimental.
Set Your Organization up for Success
Because of these distinctions, business transformation should never start with finding a solution, i.e., bring in this technology, hire this firm, change model X to Y. It should instead focus on the following:
You may say that these questions can be part of the initiation phase. But in my 20 years of experience around the globe, I have rarely seen the above steps executed diligently from a customer centricity point of view before teams start to dig for a solution.
That said, time spent clearly articulating those elements is well spent and directly contributes to the success of the transformation, while reducing rework and change fatigue. It’s like spending time to sharpen your saw before starting to cut the tree.
In my next post, I will talk more about what is required from the leadership and internal transformation teams to facilitate and create success.
Feel free to comment below and send feedback; I would love to hear about your experiences with business transformation
There are fundamentally two types of organizations: functional and projectized. Of course, between those there are various combinations of functional and projectized in the form of matrix and hybrid.
Every organization type has its own advantages and disadvantages, but from the project point of view, functional organizations are most challenging, due to their focus on individual functional work.
A typical functional organization has departments like R&D, operations, procurement, human resources, quality assurance and—on occasion—project management. Each department focuses on its own area.
The challenge is, projects are often multifunctional, crossing various functions and requiring contributions from all departments. In a typical functional organization, there is no one who looks after projects end to end and connects all the dots. A project manager has little authority over the resources of other departments. All told, this results in several challenges:
Despite all these challenges, a project manager still has the responsibility to make the project successful. How can they do this?
Let’s discuss some tools and techniques that a project manager can use:
Until you get to know the stakeholders and analyze their engagement, a project cannot be successful. The communication strategy is key to bind stakeholders, and any communication strategy without proper stakeholder analysis will be ineffective. Moreover, it will lead to chaos.
A project launch, the kickoff meeting is an important event and may decide its fate. It helps in onboarding functional managers, securing their buy-in and building trust. Take time to ask each functional manager what they want from the project in order to support it.
The project will become a struggle if trust is not built among stakeholders, especially in a functional organization. The kickoff is the starting point. Project managers need to build transparency and create opportunities for networking and exchanging ideas. Keep functional managers informed about project progress and seek their help when required. In turn, offer help when they need it. A helping mind set could be key to build trust.
In a functional organization there is a fair possibility that people on the project work in silos. Therefore it is important for the project manager to create networking opportunities for greater interaction among contributors and supporters. Informal networking events could be more effective.
Due to the different goals of independent functions, varied personalities and the loosely coupled structure of functional organizations, different functional managers may have opinions that differ from the project manager’s. To get a functional manager’s buy-in, conflict management skills are essential. Please refer my post The Techniques That Don't Resolve Conflict. A project manager has to find a solution where both the functional manager and project manager feel they’re winning and achieving their goals.
Communication is an underlying skill required to apply all the tools we’ve discussed so far. A project manager has to focus on two aspects: establishing an information system and ensuring effective interaction with team members and stakeholders. A project management information system keeps stakeholders informed and fosters collaboration. Effective interaction requires active listening skills. Here, refer to my posts Listen Up and 8 Steps for Better Listening. Listening skills help you understand others better, do stakeholder analysis, make up your mind and thereby communicate effectively.
I’d love to hear from you: How do you drive your projects to success in a functional organization? I look forward to reading your thoughts.
by Kevin Korterud
Once upon a time, projects were just projects. They were simple, had small teams and quite often finished on time. Projects were viewed as a path to operational improvements that reduce manual labor and free up people for other tasks.
As time marched on, the notion of a project began to increase in scale and complexity. Technology projects, for example, began as modest hardware and software initiatives. Over time, the technology project landscape has changed to include network, servers and cloud infrastructure. Software projects began growing into systems, software packages and complete end-to-end solutions.
As the quantity and business focus of project work increased, they became packaged into programs. Programs were created to help orchestrate myriad projects into cohesive outcomes. These were governed by an expanding slate of waterfall methods designed to both enable and oversee delivery.
With the advent of agile, a different form and pace emerged. Product delivery moved toward quicker and more frequent outputs, with delivery cadence driven by what an organization believed was best for customers and consumers.
Today, organizations have a delivery ecosystem of project, program and product delivery work based on internal and external dynamics. As the ecosystem changes over time, the balance of projects, programs and products does as well.
With project, program and product delivery all moving in different directions and at different speeds, how can an organization prevent these efforts from crashing into each other? Here is an approach I follow to help define, oversee and enhance the natural delivery ecosystem:
First, ensure that definitions are in place. These should be clear and concise portrayals of the work to be performed. Having these definitions commonly understood will go a long way in matching the correct policies, processes, controls and people to the form of work.
Here are some sample definitions:
These definitions also serve to identify the portfolio proportion of these different types of work, which helps determine the right people and supporting structures for success.
The ecosystem can change and flow to meet the needs of organizations, market forces, suppliers and people. Given this ebb and flow, one practical reality of this ecosystem is that any one form of project, program and product work cannot exist as 100% of the work.
2. Govern the Ecosystem
Any delivery ecosystem left to its own resorts will result in chaos with teams having different perceptions of how project, program and product delivery should be executed. This chaos will result in delays, additional costs and sometimes stalemates as teams negotiate over the execution of work efforts.
There needs to be balancing forces in place that help direct delivery. A delivery ecosystem governance model sets the boundaries for delivery work from ideation into formation and through execution. The governance model implements policies, processes and enabling artifacts that create predictable and repeatable attainment of desired results. This governance model is typically overseen by an enterprise delivery management office.
For example, one process within this model sets the venue to identify, confirm and release for execution the proper delivery process for a type of work. A portfolio review board based on input from the sponsor would analyze the characteristics of the work and determine whether it is a project, program or product. The outcomes from this portfolio review board promote consistency, ensure impartiality and avoid costly re-work due to poor decision-making.
Even an effective delivery ecosystem needs to have a “tune-up” every once in a while. As changes in business strategy, support for new regulations, market expansions and technical innovations come into play, the delivery ecosystem needs to change accordingly. These drive the need for a function to continuously harmonize and improve the delivery ecosystem. An EDMO will be the primary vehicle to both harmonize and improve the delivery ecosystem within an organization.
Improvements can include initiatives to reduce mobilization time, avoid resource contention and improve supplier integration. These initiatives are universal in nature and can be consistently applied to improve project, program and product delivery.
With the increased complexity of work and differing approaches for projects, programs and products, you need a means of harmonization to prevent misalignments, conflicts and collisions between work efforts. Harmonization processes can include release, dependency, data integration and test environment management.
Embrace the New Normal
Organizations need to recognize and embrace the different forms of delivery that are now the new normal. By adopting a structured approach to the definition, oversight and enablement of projects, programs and products, they can be delivered in a synergistic manner to lower costs while improving time to market and quality.
How do you balance the project, program and product initiatives at your company to avoid weather problems?
By Jen Skrabak, PMP, PfMP
Over nearly two decades in project management, I’ve learned a number of strategies to make my voice heard and advance in my career. Much of that success has come by “leaning in,” as Sheryl Sandberg advocates.
As a woman in project management, I believe the following are key:
International Women’s Day is March 8, and this year’s theme is #BalanceforBetter. Please share your thoughts on how we celebrate the achievement of women while we continue to strive for balance for women socially, economically and culturally around the world.
Imagine you're a project manager reporting to a senior director of a subsidiary, with a dotted line to a group director in the HQ. In a meeting, you're caught in their crossfire. What would you do?
If you’re wondering whether getting involved in the politics is mandatory, the answer is yes. What if you wish to stay away? You can, but you’ll put your career at risk.
There’s no need to be afraid of organizational politics. Often the top performers are those who have mastered the art. In the organizational hierarchy, there is a level beyond which winning at politics is more important than mastering any technical skills.
What Are Organizational Politics?
Workplace politics are simply the differences between people at work—whether they’re contrasting opinions or conflicts of interest. They’re important, because you need these politics to:
What Aren’t Organizational Politics?
Politics aren’t about cheating or taking advantage of other people. They are not about:
It is not about me over you (win-lose), but both of us together (win-win).
Why Are Organizational Politics Inevitable?
You can’t avoid them, because the following are all sources of politics:
Some of these factors are always present in an office, making politics inevitable.
How to Win in Organizational Politics
The most common reactions to politics at work are either fight or flight, which can have harmful consequences. Remember, we always have a choice to approach the situation and then hold on, understand or work out a viable solution.
Here are few steps you can take:
Know Enterprise Environmental Factors:
The first step is to understand the source. You can put together a winning solution if you understand factors influencing your project execution, such as organizational culture, organizational structure, various communication channels, organizational policies, individual behavior and risk tolerance of stakeholders.
Politics always come down to the people who are involved. Until we understand their interests, power, influence, buy-in and support, it may not be easy to prepare a strategy. There are various tools like the power/interest grid, buy-in/influence grid, stakeholder engagement matrix, etc. that help in stakeholder analysis and preparing strategies. There are tools like power/interest grid, buy-in/influence grid, stakeholder engagement matrix etc. that help in stakeholder analysis and preparing strategies. In fact, it is a good idea to always maintain a stakeholder register so you have information ready to quickly deal with a situation.
Discover Hidden Agendas:
Hidden agenda aren’t always as bad as they appear. Many times a personal objective is driving someone’s actions. Therefore, it is necessary to talk to the people and understand the driving factors behind their opinion and actions to strengthen your strategy.
Somehow, we are encouraged to think that someone has to lose in order for us to win. We see our colleagues as rivals instead of as our team members. This may be because of the organization’s politics. We have to find a solution that not only makes you win, but others too. This may not be easy, but understanding other people’s point of view and putting your feet in their shoes will help you find a win-win solution.
Build your network:
One of the best ways to do this is through networking, which builds relationships. This will help you better understand other people’s viewpoints and get their support in facilitating a solution. Networking is also very effective in getting buy-in and reaching consensus.
By taking these steps, you can propose win-win solutions and steer your projects to success.
What ideas do you have for dealing with organizational politics? Please share your thoughts in the comments below. I look forward to reading about your experiences.