Version 1.

1 January 2009

powered by Making Change Stick

A Delivery Framework for Large, Complex Programmes

transform*
powered by Making Change Stick

Making change stick

Performance Improvement Consulting

A Delivery Framework for Large, Complex Programmes

Section 1

Page

Introduction................................................................................ 3 1.1 1.2 1.3 1.4 1.5 1.6 Introduction......................................................................... 3 Alignment with PITBM and The Guide ............................... 4 Framework Structure .......................................................... 6 Documentation Structure.................................................. 12 Tailoring the Framework................................................... 14 How to Access Reference Materials................................. 14

2009 by PricewaterhouseCoopers LLP

All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means or stored in a database or retrieval system, without prior written permission of the publisher.

COPYRIGHT 2009 PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP has taken all reasonable steps to ensure that information contained herein has been obtained from reliable sources and that this publication is accurate and authoritative in all respects. However, it is not intended to give legal, tax, accounting or other professional advice. If such advice or other expert assistance is required, the services of a competent professional should be sought.

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Performance Improvement Consulting

A Delivery Framework for Large, Complex Programmes

1.1 Introduction
transform* is a framework to support Performance Improvement practitioners when working with clients on large complex business transformation programmes (Stage 0: Developing the Proposition of the framework provides a description of business transformation). transform* guides an organisation through the tasks and activities needed to achieve successful performance improvement and the realisation of planned business outcomes and benefits during a business transformation programme. Designed to be flexible in its application, the framework provides a route map for implementing the strategic, people, process, technological, structural and facilities changes required to implement new or amended business strategies. It guides an organisation in implementing major changes which are designed to add value, obtain and sustain strategic and competitive advantage and to be implemented in a cost-effective manner. For PwC to be able to support our clients with business transformation a number of transformation capabilities must be addressed:

Proposition What is the PwC business transformation proposition and how do well sell this to our clients? Route map What is the route map for delivering a transformation assignment and how does it reflect the PwC way of working? Tools Do we have the tools to deliver a transformation programme and how do we use them? Style What is distinctive about the way that we work on transformation engagements? Capability What capability do we have with regards to the requirements of a transformation programme? Packaging How do we make our offering useable for practitioners and clients?

Figure a highlights how transform* is designed to support the development of PwCs transformation capabilities.

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A Delivery Framework for Large, Complex Programmes

Figure a: How transform* supports PwCs Transformation Capability

1.2 Alignment with PITBM, The Guide and Making Change Stick
The transform* framework is aligned to the PITBM Methodology and uses the principles outlined within The Guide to ensure a holistic approach to organisation-wide transformation.

Figure b: Alignment with PITBM and The Guide

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Performance Improvement Consulting

A Delivery Framework for Large, Complex Programmes

transform* uses the PITBM Stages and Phases and the same terminology. A lot of the PITBM materials have been incorporated and built upon within the Framework. However, the transform* framework is more detailed and comprehensive for use in complex business transformation engagements. PITBMs strength is its applicability for a wide range of engagement sizes and complexities. However, the weakness in PITBM for business transformation work is that:

It does not deal with all work stream areas in the early stages (Process, Technology, People & Organisation and Facilities) and does not cover Target Operating Model or Blueprinting; It does not cover key change management activities such as Design Authority, Culture & Behaviours or Transformational Leadership; It does not deal with the management of the interdependencies of a transformation or many of the detail steps required during the detailed Design and Construction Stages.

The transform* framework builds upon the existing investment in the PITBM Methodology development and training, and many practitioners are likely to be trained in PITBM methods before developing the additional capabilities outlined in transform*. Training in transform* is intended to support the development of PwC Business Transformation capability on larger more complex engagements. The Guide is a framework which provides a structure for looking at client issues in a comprehensive manner. Its intention is to stimulate and guide our thinking, to enable us to:

Develop an understanding of the inter-relationships needed to solve complex client problems; Look at the whole problem rather than those parts that our background and skills make it easiest to recognise and deal with; Move outside comfort zones, connect issues, connect people and ideas together, and see the bigger picture; Co-design completely connected solutions with our clients and release the full potential of opportunities available to them; and Transform our relationship from good solution provider to highly valued and trusted long-term business advisor.

transform* uses the principles of The Guide to ensure that a holistic view of the client is developed and that the complex inter-relationship of activities in a business transformation programme are addressed. The Guide should be used as a questioning tool alongside transform*. Within The Guide a number of dimensions are outlined, the transform* framework uses these dimensions as a basis of the themed areas that need to be addressed in a transformation programme (the transform* themed areas are also consistent with the components of change within PITBM).
The Guide - Dimensions Strategy Structure transform* Themed Areas Strategic Direction Structure Facilities Process People Technology Process / Service People & Organisation Enabling Technology

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A Delivery Framework for Large, Complex Programmes

The transform* framework is considered to be an umbrella framework in that, to complete each change initiative project, it may be necessary to add in or combine all or some components from other Performance Improvement methodologies, services or tools such as the Shared Service Centre Methodology when creating Shared Service Centres (in addition to its close links with PITBM and The Guide). The transform* framework has the principles of Making Change Stick embedded throughout. In particular the emphasis of our engagement with clients during delivery of an engagement should be on the ten key success factors: Design the best-fit change approach:

Benefits

Keep business benefits at the heart of change; Challenge the data and its interpretation; Agree the measures of success and how to monitor them; and Focus on the actions that make a difference fast.

Involvement

Through involvement build a vision and hunger for success; Engage the front-line before, during and after; and Communicate with a purpose.

Sustainability

Give leaders the skills and the heart to lead; and Make sure systems, processes and culture re-enforce the change.

This framework is industry-independent, application-independent and tool-independent and is intended to be equally applicable to different situations, regardless of the technology, scope or approach.

1.3 Framework Structure

The transform* framework follows a hierarchy of work units common to other Performance Improvement frameworks and methodologies:

Stages - a series of related work activities that define the main activities to be completed; Phases - within each Stage, there are a number of related activities that need to be accomplished. There are also a number of Cross-Life Cycle activities such as project management, change management and training which are Phases that occur across a number of Stages; Tasks - within each Phase there are a number of tasks that need to be accomplished. The tasks describe what needs to be done to complete the work outlined in the Phase. Typically, a task is concluded by the completion of an interim or final work product and the combination of these work products makes up the Phase deliverable; and Steps - the lowest level in the hierarchy. For each task, a series of steps are defined which provide an

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A Delivery Framework for Large, Complex Programmes

outline of how to complete the task. The transform* framework consists of the following Stages: A pre-engagement stage - Stage 0: Developing the Proposition; and

Five key Stages of delivery with the client (shown in Figure c):

Stage 1: Assess Stage 2: Design Stage 3: Construct Stage 4: Implement Stage 5: Operate & Review

Figure c: Framework Overview

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A Delivery Framework for Large, Complex Programmes

The following table outlines a high-level description of the Stages and Phases within them (as shown in Figure d):
Stage Stage 0: Developing the Proposition Provides: A definition of Business Transformation; Transformational change - an academic view; Critical steps for lasting transformational change; How to deliver transformational change by making change stick; Examples of defining programme scope; PwC capabilities; Potential PwC roles; Working with alliance partners; Sales framework. Stage 1: Assess Assess is used to confirm the organisations business needs, to assess the selected areas of the current environment for improvement opportunities and to agree upon the opportunities for improvement. This is through defining the High-level Blueprint for the new organisation and the Case for Change, and the portfolio of initiatives that will transform the organisation, while achieving short- and medium-term fiscal and service goals. Phases (within the Stage) The following Phases are within the Sales Framework section of Stage 0: Sales Approach: Describes how to qualify and classify opportunities, use lessons learned from other sales, create the sales team, hold the initial sales meetings, and transition from sales to delivery; Differentiating PwC: Describes how to analyse competitors during the sales process, and how to use PwCs unique way we go about our work to deliver sustainable, superior solutions; Commercial Approaches: Describes fee structures, demonstrating value for money, and how to account for the costs of transformation.

Phase A Determine Business Needs and Business Benefits. The scope is confirmed and the project is commenced. The organisations business needs and planned business benefits are reviewed and confirmed. Phase B Benefits, Project, Programme and Change Management. Project initiation, governance and management are undertaken for the Assess Stage. During the Stage, development of Programme governance, programme plans, resource plans, and benefits plans are developed for later stages in the programme. A vision for the transformation is developed; leadership is aligned to support it. The Leadership and organisational capacity for transformation are assessed, and a high level transformation route map is developed. Initial stakeholder analysis is completed and communications planning is commenced. Phase B is a Cross-Life Cycle phase as different components from the phase may be used and completed in any of the other phases. Phase C Create Transformation Baseline. Data is collected about the external environment, current policies, business processes, data, technologies, organisation, facilities, change environment, activities, and performance measures. These are assessed against leading practice to identify gaps and improvement areas. Where appropriate, benchmarking is conducted or other techniques are used to gather data or measures about current performance levels. Phase D Create Case for Transformational Change. Evaluation criteria are agreed and opportunities for improvement are assessed. A high-level Target Operating Model is developed and improvement opportunities are agreed. An Outline Business Case is developed to create the Case for Change.

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Performance Improvement Consulting Phases (within the Stage) Phase B Benefits, Project and Change Management. The programme governance is refreshed to ensure fit-for-purposeness to later stages of the programme. Detailed programme, benefits and resource planning is completed. The change management strategy and plans are completed and communications activities are undertaken. Initial transition planning is developed and test strategies are developed. Phase E Design Transformed Organisation. Detailed design of policies, business processes / services, technologies, organisational structures and facilities is completed to support the achievement of the improvement opportunities that have been agreed. The Target Operating Model is updated and Blueprint for the organisation complete. A detailed business case is completed and agreed. Phase F Training. This phase is a Cross-Life Cycle phase during which a review of the current level of relevant knowledge and skills is undertaken. Existing training and development resources available are assessed and evaluated as to their suitability. Leadership is assessed and development support established as required. Key inputs to other areas are completed: in particular, the benefits and sustainability of training and development including the evaluation strategy, and, how training and development will be integrated and furthered through communication. A training needs analysis is completed for the skills required during later stages of the programme. The training scope and strategy is progressed. Initial outlines for training courses and other development interventions are identified and high level designs created. Early discussions take place with the client to determine and agree the appropriate evaluation and Return on Investment measures . Phase G Develop Implementation Strategies. Implementation strategy alternatives are explored. The selected strategies are agreed to support the construction of the changed or new policies, business processes, technologies, organisation and facilities. High level transition plans for people and services are developed. Phase B Benefits, Project and Change Management. Change actions are identified and undertaken. Transition plans are finalised. Testing strategy and plans are completed. Benefits, Programme and Quality management are undertaken. Phase F Training. The earlier client approved high level design is progressed and a full detailed design is developed to meet the agreed needs of the new organisational structures and knowledge, skills and attitude requirements. The materials required to support the training courses are designed and pilot training sessions delivered together with Instructor training sessions. Based on the feedback from these events any revisions to the detailed design will be made prior to the rollout. The implementation plan will be created and all the logistical arrangements put into place. Phase H Construct Business Process Changes. The business processes, data and procedures required to support the change initiative goals are built, documented and tested. Phase I Construct Technology Changes. The technology components required to support the change initiative goals are built or acquired, documented and tested. This may require design of application and infrastructure components, design of application interface components, design of data management mechanisms and the selection of tools, software, hardware or other equipment. Phase J Construct Organisation Changes. The organisation structure required

A Delivery Framework for Large, Complex Programmes

Stage Stage 2: Design Design is used to complete a design of the transformed environment and to explore and develop implementation strategies. This is achieved by creating the detailed Target Operating Model and plan for the organisation (e.g. new org structures, processes, locations, skills, IT etc), whilst also implementing quick win initiatives.

Stage 3: Construct Construct is used to develop the appropriate policy changes, business process changes, technology changes, organisation changes and facilities changes. Once developed, detailed implementation plans are prepared.

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Performance Improvement Consulting Phases (within the Stage) to support, implement and maintain the change initiatives goals is determined and includes such items as resource needs, training needs, logistics needs, recruitment needs, performance needs and performance measures. K Construct Facilities Changes. The facilities required to support the organisations change initiative goals are acquired or built and put in place. This may require the preparation and distribution of Request For Proposals, the evaluation and selection of suppliers and facilities installation and testing. Phase L Procedures Documentation. The procedures necessary to support both the new or amended policies and business processes, systems and technology, organisation and facilities are drafted, tested and finalised using the selected delivery mechanisms. Phase M Develop Migration and Implementation Plans. Migration plans and detailed implementation plans are prepared to support the migration to the changed environment. Transition plans are finalised.

A Delivery Framework for Large, Complex Programmes

Stage

Stage 4: Implement Implementing the portfolio of group-wide and organisation-wide initiatives, proactively ensuring benefits are tracked and realised, addressing any shortfalls (i.e. portfolio leakage).

Phase B Benefits, Project and Change Management. Change actions are undertaken. Benefits, Programme and Quality management are undertaken. Phase F Training. Training sessions and other development interventions are delivered. Ongoing course maintenance and presentation responsibilities are defined. Level 1 & 2 evaluation of the initial success of the development and training interventions is completed. Phase N Migration and Implementation. The processes, technologies, organisation and facilities changes that have been created are implemented.

Stage 5: Operate & Review Operate the transformed organisation, deliver the benefits, and instigate a culture of continuous improvement.

Phase B Benefits, Project and Change Management. Change actions are finalised. Benefits, Programme and Quality management are finalised. The programme is formally closed. Phase F Training. Ongoing skills and people development processes are implemented. Benefit and sustainability review of training and development interventions is completed. Phase O Operation and Continuous Improvement. Mechanisms to ensure that the change initiative goals are monitored and maintained are put in place and a continuous improvement program is instigated.

10

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A Delivery Framework for Large, Complex Programmes

Figure d: Phases and Stages Framework on a page

Running across all of the Stages are eight themed areas:

Strategic Direction Definition and agreement of strategy and agreement of plans and sign-off of key deliverables of the programme; Structure Development of the Governance and Legal structures of the organisation, and the operational sourcing and supply chain; Facilities Definition and implementation of transformed facilities to support the new organisation; Process / Service Development and implementation of transformed processes and services; People & Organisation Development of internal organisational structures and transition of people; Enabling Technology Development and implementation of technology to enable the transformational change; Change Management Leadership, change, training and organisational development; and Programme Delivery Programme, Benefits and Quality management of the transformation programme.

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Performance Improvement Consulting

A Delivery Framework for Large, Complex Programmes

1.4 Documentation Structure

Each Stage within the framework is structured as follows: A Stage Introduction that provides a description of the Stage, and highlights key interdependencies between Phases within the Stage and with other Stages. A diagram outlining the Phases and Tasks within the Stage is presented within the introduction.

Each Phase within the Stage contains a description of the Phase which outlines the benefits of the Phase and interdependencies. An Input/Output diagram for each Phase is presented within the Phase introduction that outlines the key deliverable inputs (or external/client inputs) and outputs for the Phase.

Each Task within each Phase contains a detailed description of the task and the steps within the task. The structure of the Task documentation is outlined below:

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A Delivery Framework for Large, Complex Programmes

A statement on the purpose of the Task An overview of the Task

A1
Purpose

Task

What is this task about? Overview High level description of the task.

Interdependencies between the Task and other Stages, Phases or Tasks. These are hyperlinked Inputs that are used during the Task. These are linked to templates and examples on Gateway Detailed descriptions of the steps within the Task Outputs that are created during the Task. These are linked to templates and examples on Gateway Benefits to the client of completing the Task Typical knowledge transferred to the client Reference materials for use during the Task these are available on Gateway

Interdependencies
Interdependencies Ref No: Name of phase / stage / task Brief Description of interdependency and relevance to task

Inputs
Inputs Ref No: Name of input Brief Description of input and relevance to task

Task Description
Tasks Ref No: Name of task / step Brief Description of task / step

A1.1 Step within Task

High level description of the step

Outputs & Deliverables

Outputs & Deliverables Ref No: Name of Output / Deliverable Brief Description of Output / Deliverable

Benefits Benefits of completing the task Knowledge Transferred to the Client Typical knowledge that is transferred to the client whilst completing the task Reference Materials
Reference Materials Name of Reference Material Brief Description of Material

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A Delivery Framework for Large, Complex Programmes

1.5 Tailoring the Framework

The framework may require tailoring during an engagement to meet the needs of the specific change initiative in a number of different ways. When tailoring, the project leader should ensure that the tailored tasks provide an adequate framework for the project team to produce a high quality result. It is intended that the framework is a guide and it therefore does not replace the need for comprehensive scope assessment, for example if the transformation was addressing the nuclear industry then a far greater emphasis might be placed on health and safety and security, or if addressing the hedge fund sector then finance and risk management would be critically important. In considering tailoring, it is important to understand the following premises upon which the framework is based:

The framework is intended to give a context to transformational change and be a framework of tools and techniques with illustrative examples. It is expected to be an 80% fit, rather than a detailed work programme to be followed without tailoring to client needs; The framework is industry-independent, application-independent and regulation-independent. Specific components or work tasks and steps may need to be added to specifically address these areas; The framework is tool-independent in that while a variety of different tools can be used to support the framework and the change project (e.g. project management tools, business process mapping and modelling tools, decision analysis tools, graphics tools), it is not dependent on any specific tools; The framework is flexible in that only certain Phases may be used or specific Tasks or Steps may be selected (e.g. the use of the Training Phase to determine an organisations specific training needs and training creation and delivery). However, if Tasks and/or Steps are removed, an assessment should be made of the impact of this removal on subsequent Tasks and Steps that may be dependent upon certain types of deliverable feeding into them; The framework is scalable in that for large-scale projects each phase may be undertaken by separate teams with appropriate skills. For smaller projects, one multi-skilled team may undertake all of the tasks concurrently and some of the phases may also be collapsed in to one another; and The techniques contained in the framework may be used on other types of engagements and other techniques may be used that are not contained in the framework.

1.6 How to Access Reference Materials

transform* is available for practitioners to use in a variety of ways:

Online through Gateway An online version of the framework is available through Gateway using the following link Gateway transform*. The online version contains all of the detailed descriptions of the Stages, Phases and Tasks within the framework. It also contains contextual links to reference materials for each of the Tasks, and links to other relevant methodologies, tools and guidance; Offline Navigator An offline version of the navigation for the framework is available for use as an aide memoire, and also to support explanation of the framework to clients. The offline version does not contain the reference materials, but does contain links to the Gateway content; and Downloadable Documents Downloadable pdf documents are available for each of the Stages within the framework. These are useful to support the creation of proposals, etc. where practitioners need to copy some of the content. The reference materials are not included within these documents.

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A Delivery Framework for Large, Complex Programmes

The reference materials within the Gateway version of the framework are linked to each of the Tasks. At the bottom of each Task page are three buttons that perform a contextual search for reference materials:

Templates Are example templates that can be used to complete the Task; Tools & Guidance Are additional tools or guidance notes that are relevant to the Task; and Example Deliverables Are examples of the output deliverables described within the task.

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 2009 by PricewaterhouseCoopers LLP

All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means or stored in a database or retrieval system, without prior written permission of the publisher.

COPYRIGHT 2009 PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP has taken all reasonable steps to ensure that information contained herein has been obtained from reliable sources and that this publication is accurate and authoritative in all respects. However, it is not intended to give legal, tax, accounting or other professional advice. If such advice or other expert assistance is required, the services of a competent professional should be sought.

2009 PricewaterhouseCoopers LLP. All rights reserved. PricewaterhouseCoopers refers to the PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.