The Transformation System
Empirical evidence and academic research show that transformation programmes almost always make problems worse than they already are. No matter how they are framed and organised, transformation programmes regularly fail: outcomes are unpredictable and horror stories are common.
For example, Kotter (2006) observes, “most major change initiatives – whether intended to boost quality, improve culture, or reverse a corporate death spiral – generate only lukewarm results. Many fail miserably” (p. 1). On the other hand, as Flyvbjerg et al. (2018) point out, “with behavioural science we say to planners, “Your biggest risk is you.” It is not scope changes, complexity, etc. in themselves that are the main problem; it is how human beings misconceive and underestimate these phenomena, through overconfidence bias, the planning fallacy, etc.” (p. 183).
What can help leaders cope with these problems and deliver successful transformation results? In this article we introduce a transformation system for structuring change when leading transformation programmes:
1) Prescriptive and relational governance framework
2) Process mapping in the form of supplier, input, process, output, and customer (SIPOC)
3) Stakeholder ecosystem: responsible, accountable, consulted and informed (RACI)
4) Key and critical performance indicators (KPIs and CPIs)
5) Targeted operating model (TOM)
6) Working instruction and desktop procedure (WI&DTP)
7) Service level agreement (SLA)
Figure 1 visually represents the transformation system and should be used by leaders as a basic roadmap.
Figure 1
The transformation system
Each element can be seen as a planet with its specific place and role in the transformation ecosystem. The central element of the transformation system is the prescriptive and relational governance framework. Proper governance establishes visible and invisible connections among the planets and helps transformation programmes deliver successful results. Müller (2009) defines governance as “the value system, responsibilities, processes and policies that allow projects to achieve organisational objectives and foster implementation that is in the best interests of all the stakeholders, internal and external, and the corporation itself.” (p. 78). But what is the role of each planet in the transformation system? What is the value each contributes to the success of transformation programmes?
1) The prescriptive and relational governance framework creates ecosystem for change
2) SIPOC describes the needed processes
3) RACI clarifies the accountability and responsibility for each task
4) KPIs and CPIs evaluate performance: quality, timeliness and cost. They are reference points for targeted milestones, including continuous improvement and automation initiatives
5) TOM represents the future operating model: a) the framework of stakeholder operations b) their roles and responsibilities
6) WI&DTP describe the steps needed to perform each operational activity
7) SLA formalises the operational ecosystem, focusing primarily on responsibility and accountability
Each planet in the transformation system needs its own discussion, indeed. But, the starting point for transformation leaders -- independently from the type of change they pursue -- is to clearly understand the role of each planet and the interconnections among planets in their transformation systems.
References
Flyvbjerg B., Ansar, A., Budzier, A., Buhl, S., Cantarelli, C., Garbuio, M., Glenting, C., Skamris Holm, M., Lovallo, D., Lunn, D., Molin, E., Rønnest, A., Stewart, A. and van Wee, B. (2018) “Five Things You Should Know about Cost Overrun”, Transport Research Part A: Policy and Practice, 118: pp. 174-190.
Kotter J. (2006) ‘Leading Change: Why Transformation Efforts Fail’, Harvard Business Review.
Müller, R. (2009) ‘Project Governance’, Grower Publishing, Aldershot, UK.
