I believe there is a thin line between continuous improvement projects and transformation project. The former is to improve the current state of business by identifying opportunities to perform the same business better. Transformation projects are projects designed to bring in new business opportunities for the company, which the company currently lacks .
However in some companies, it appears to be a thin line. Imagine this scenario: an operation team is seeking to execute a project that will improve efficiency in its current process. We can also argue that it will allow the company to attain full STP as a result allows information to be presented real time to the customers. The company currently lacks the capability to bring information real time to customer.
Would it be a continuous improvement project? or a transformation project? How do you make the distinction? I'm asking this because the budget for continuous improvement project is held by the business office whereas transformation project budgets are held by the transformation project team. Saving Changes...
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Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
There is not a line. Everything you will do in your company will transform it. An improvement is a project and will transform your company. It is simple than that. In fact, believe me, if you do not understand your initiatives from this point of view you will have a great chance to fail. I belong to Transformation and Innovation Division inside the EPMO. Why is that division outside there? Basically because we have the duty to lead project with high amount of risk due to it will use things not using today. But it is a big mistake not considering that everything you will do into your organization is transforming it. It is by using thinking theory applied to organizations which is the key to survive in a changing world. What you stated shows you company is not integrating things in one point. That is dangerous. Saving Changes...
It will come down to either having an objective set of criteria to distinguish between these two types of projects for funding purposes OR a simpler approach will be to say that whichever group envisions the project is responsible for funding it.
I don't see the benefit in splitting these two types of projects by organizational group so would echo Sergio's concerns...
Kiron Saving Changes...
Michael WilliamsSr. Project Manager| Itron, Inc.Spokane, Wa, United States
The scenario is solved by how the organization thinks of the project. Upper management may not have the distinction in their minds between the two 'types' of projects. When you are asked to run a project, they will tell you: 'This is a Business Transformation project', and you have to understand what they mean by that rather than your interpretation of that statement. Saving Changes...
Eric SimmsSenior Program ManagerBaltimore, Maryland, United States
Your scenario is a continuous improvement process that transforms the business by opening new opportunities. If I led the organization I’d divide the costs between the business office and transformation project team.
The division of budgets between the business office and the transformation project team makes me think politics might be at play here, which will complicate the matter. Saving Changes...
