The Part 1 of this article addressed key topics to consider when driving a transformation effort, organizing, prioritizing and getting the resources needed to get the job done.
Part 2 focuses on how you can sustain the momentum and keep the transformation on course. Two key practices will contribute greatly toward the success of the transformation project and the long-term sustainability of the future state: Transformation Management and Change Management.
TRANSFORMATION MANAGEMENT
WORKSTREAMS Once the transformation objectives are organized into logical workstreams, each workstream should have a clearly identified leader, with expertise in that area and ability to think strategically. The workstream lead should also have good skills at project management.
PROGRAM MANAGEMENT OFFICE An overall strategic project management resource is essential to coordinate all the workstream activities in close collaboration with the workstream leads. The PMO will meet with the workstream leaders on a regular basis, assist them in resolving issues, keep an eye on deliverable and timelines, and provide regular and ad-hoc updates to senior management. The use of effective project management tools is crucial.
TRANSFORMATION GOVERNANCEThe PV transformation program should have a senior level sponsor (VP or above) to provide executive and strategic support to the transformation across all functions and projects. A designated group of senior leaders representing all major functions impacted by the transformation should form a steering committee to make strategic decisions, with responsibilities to monitor progress and alignment with strategic goals, and coordinate this transformation with other corporate initiatives. A close and regular stream of communications between the PMO, the sponsor and the steering committee is a great key to progression to success.
A project governance model could be structured as this:
CHANGE MANAGEMENT
Research from McKinsey&Company, indicates that over 70% of transformation efforts fail. https://www.mckinsey.com/featured-insights/leadership/changing-change-management
This is a very high failure rate. Why? Obviously, the answer to this is complex and will vary across organizations but some common themes are:
Lack of alignment with the mission and thus, lack of management support,
Lack of buy-in and inclusion resulting in employee resistance,
Under-communicating the vision to all stakeholders or
Insufficient or delayed training in the implementation of changes.
The change management aspect is always critical to maximize the success of the initiative.
The approach for change leadership is typically a combination of:
Face to face meetings with individual stakeholders for buy-in,
Departmental meetings to explain the relevant information for the audience,
Regular communications to all relevant employees to measure progress to milestones, encourage the efforts and celebrate achievements.
A change management workstream with the right focus can increase the likelihood of success by 30%.
Are you ready for the change?
Janet Uetz
