Major Business Transformation

Business Transformation

From our experience, most major EA (Enterprise Application) or ERP solutions have a number of larger scale organization and process improvement initiatives associated with the Enterprise initiative to help achieve real business benefit that justifies the investment in the enabling technology. We distinguish these larger scale organization and process improvement initiatives from change impacts directly related to new EA process design/development activity. We work with our clients in both of these areas to successfully engage the people across key business operations, integrate change management activities, smoothly transition to a new organizational design; all with the end goal of achieving true business value from the initiative.

The more formal business transformation initiatives that are enabled by EA typically leverage common master data and standardized business processes and likely include: Global Supply Chain Planning & Management, Customer Management Reorganization, Global Procurement, and Shared Business Services. At a minimum, major EA solutions usually require Master Data to be managed in a more consistent and central manner across process areas, business units and geographies. It is important to link these efforts with improved end-to-end business processes enabled by the new technology. These in turn will drive significant business value but will require more effective management of complex cross function/business activities that are not owned by one individual or organization.

Large scale initiatives are highly integrated with our traditional EA change management streams of activity including stakeholder and communications management, operational readiness, organizational change, and training. We recognize the need for more encompassing and complex decision making governance processes, organizational dynamics, design considerations/analysis, and timing.

Our Approach

We work with our clients to clarify the differences between business transformational activities and EA/ERP change management activities. We then help establish the appropriate team structure, integration of project activities and project governance to effectively manage the transition. It is important to quickly determine to what extent the EA Project Team, Principles Group, Systems Integrators and Operations will be involved in the full scope of Business Transformation.

Often, we help develop the overall Business/Benefits Case for the business transformation focused on economies of scale, cost reduction, standardized processes, efficient & effective service, improved data quality & leveraged skills and investments. We incorporate our approach to Benefits Realization. With the full extent of our involvement, we work with our clients to ensure the business transformation is effectively managed. We address key elements of: End-to-End Process, Reporting Structures, Roles and Accountabilities, Staffing Levels, and performance goals to effectively support business and process improvement objectives.

Key to our approach is the development of organization design principles and establishment of key decision milestones that help guide the process and assure effective stakeholder ownership. As indicated, we strive to integrate the business transformational activities with the EA/ERP change management and benefits realization activities.

Key Organization Elements

We address the establishment of the following key organizational elements:

• End-to-End Process Design, Development and Governance - by helping to define complex process activities, introduce operational improvement and helping to establish process governance across business, functions/activities and geographies.
• Reporting Structure – by defining the grouping of work activities, direct and indirect reporting lines, processes within scope of the organization, and location and size of the organization.
• Role Design - by defining roles and responsibilities of organization units, cascading down to individuals. Determining skills, training, and experience requirements for the processes that are addressed.
• Performance Measures - by defining how the performance of people, groups and units are measured.
• Work Group Design - by defining how units and teams will work together. Includes operational characteristics, culture, communications and authority bases.
• Integration Mechanisms– by creating the “glue” that holds the organization together. Enables effective collaboration across processes and organizational groups. Includes mechanisms such as service level agreements, policies and defined accountabilities supported by ongoing governance.

Accelerators

We utilize accelerator tools and our deep experience to structure the most effective approach to Business Transformation and Organization Design (OD). Our accelerators include: end-to-end process taxonomy, process improvement checklist, sample process owner and organizational design/development charter & guide, listing of potential organization options, change management playbook, listing of organizational impacts, benefits & metrics by organizational unit & process area, sample impact action templates, sample communications & stakeholder management plans, sample impact presentations, and plan templates.