The SAP Business Transformation Management Method (BTM2 ... · PDF file© 2013 SAP AG. All...

© 2013 SAP AG. All rights reserved. 1

Tim Hornung MS, SAP Joel Adler Ph.D. UPenn

The SAP Business Transformation Management Method (BTM2) parallels with DYNAMICS/P3

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What is Organizational Dynamics at Penn about?Dynamics Concentrations


Alignment of BTM2 & DYNM/P3

A rare industrial situation that sees its business strategy inextricably tied to these two principles of Penn Organizational Dynamics

•Holistic approach

•Balance of Process and Behavioral perspectives

Mapping of Content of the P3 concentration

•Project Management

•Program Management

•Risk Management

•Portfolio Management

•Business Process Management


BTM2


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Drivers for Business Transformation (BT) Fundamental and complex changes

Technological innovations (e.g. Information and communication

technologies)

Increasing globalization (that leads, for example to stronger

competition)

Pressure for sustainability (which results in changed customer preferences or

regulations)

Changing workforce (such as increasing

global mobility)

Radical changes of economic conditions (e.g. Financial crisis)

What is Business Transformation (BT)* – ExcerptBusiness transformation implies fundamental and complex organizational changes within as well as across companies alongside the value chain; business transformation can also radically alter the company's relations with the wider economic and societal environment.

What is Business Transformation (BT)* – ExcerptBusiness transformation implies fundamental and complex organizational changes within as well as across companies alongside the value chain; business transformation can also radically alter the company's relations with the wider economic and societal environment.

Drivers for BT:

* www.fhnw.ch/iwi/bta � Business Transformation Research.


Business Transformation AcademyA global, trans- and interdisciplinary network of Thought Leaders

Academics / Institutes

Customers / Professionals

SAP Experts

New: SAP Partners


FindingsFindingsLow success rate of business transformation projects (less than 40%)

Source: Isern et al. (2009)

Lack of holistic management approaches Source: Winter, Uhl (2011)

Low success rate of business transformation projects (less than 40%) Source: Isern et al. (2009)

Lack of holistic management approaches Source: Winter, Uhl (2011)

Business Transformation Management Call for action

� 25% Failure because of technical reasons

e.g. demands can not be mapped, sizing problems, problems with connecting legacy systems

� 75% are failing because of non-technical reasons

e.g. non acceptance of the solution, skill problems, communication problems, problems with project resources

Source: Seven Reasons Why Information Technology Projects Fail (2011)


The BTM2 – Big Picture

Enablement

Program/Project Management

ProgramPlanning and Governance

Program & Proj. Integration

Mgmt

Program & Project Scope

Mgmt

Program & Project Time &

Cost Mgmt

ProgramQuality Mgmt

ProgramHuman

Resource Mgmt

ProgramProcurement

Mgmt

RiskManagement

360 StrategicRisk

Assessment

Deep dives for strategic risk

areas

Assesstransformationbusiness case

Define risk strategy

RiskManagement

Execution

Risk Monitoring

Identify additional

improvement

Risk Mgmt. as part of Board Governance

Competence & training

management

Competence strategy

Training need analysis

As-is analysis

Gap analysis

Curriculumdevelopment

Training preparation

Training

Evaluation & improvement

ProgramReporting

Organizational Change

Management

Set-up & governance

Stakeholder management

Change agent network

Communicationmanagement

Performancemanagement -Project team

Performancemanagement -

Business

Change readiness

assessment

Change monitoring

ProcessesManagement

Determinescope of analysis

From template to bespoke inventory

Identify improvements /add attributes

Map selected processes

Plan process implementation

Implementprocesses

Evaluateprocesses

Establish CIP

ValueManagement

Baseline analysis

Valueestimation

Detailed business case

Agreeownership for

realization

Plan benefit realization

Execute benefit realization

Review and evaluate results

Establishpotentials for

further benefits

MetaManagement Orchestration of individual disciplines: Guidelines, Leadership, Culture, Values and Communication

ITTransformation

Management

Business and IT Capability Assessment

To-be analysis

Gap analysis

IT roadmap plan

Solutionarchitecture

design

IT Deployment plan

IT Operations & Service

Optimization

IT Lifecycle Management

StrategyManagement

AS-ISDataCollection

Analysis of needs &

maturity level

Designbusiness vision

DesignBusiness Model

Integratedtransformation

plan

Business Case

Organizational model

Risk analysis

Direction


EnvisionEnvision

Strategy Management

Orchestration of individual disciplines: Guidelines, leadership, culture, values, and communication

Business Transformation Management Methodology (BTM²) Disciplines and deliverables in detail

MetaManagement

EngageEngage TransformTransform OptimizeOptimize

Strategy to be approved by decision makers

Project startup and AS-IS Data collection

Analysis of transformation needs and causes

(80/20 rule)

Design Business Vision

Design Business Model

Define integrated transformation plan

Plan benefit realization

Detailed benefitestimation

Benefit review and evaluation

Realizebenefit

Establish potentialsfor further benefits

ValueManagement

Riskmitigation plan

RiskIdentification

Execute risk mitigation plan Risk monitoring Review and evaluate risks Risk

Management

Process to-be design

Business process analysis

Process evaluation

Process implementation

Run, monitor and optimize

Business Process Mgt.

IT deployment plan

Solution architecture

Plan IT operations

IT deployment and testing

IT lifecycle management

IT operations & service

optimization

Transformational IT

Management

Change monitoring

Execute change plan

Improve org. change

readiness

Ensure sustainable

changeOrganizational Change Mgt.

TrainingExecution

Training preparation

Need, as-is and gap analysis

Transfer, application and evaluation

Competence & Training Mgt.

Program/Project planning

Program/Project initiation

Program/Projectrealization

Program/Project closure Program and Project Mgt.

Stakeholder, communic. and

performance mgt.

Set up change plan

4

1

2

5

3







BTM² - Strategy Management Portfolio of strategic options

Transformation readiness

low

high

low high

Strategicredirection

Expand core business, transfer and development

Ongoingobservation

Risks and opportunities

Overcome stakeholder crisis

Increase readiness through sensitization of stakeholders

Consolidation & Focus: Focus on core

competencies/business, Reduction of overcapacities

Design business model: 4 strategic options


BTM² - Strategy Management Transformation need analysis

Stage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

low

high

Flexibility to react (time and options) lowhigh

Pro-activemanagement

Pro-activemanagement

Lack of awareness

and knowledge

Lack of awareness

and knowledge

Lack of stakeholder commitment

Lack of stakeholder commitment

Lack of strategyLack of strategy

Lack of businesssuccess

Lack of businesssuccess

Negative impacts not yet visible

Blockade of necessary transformation efforts

Capital consumption, negative cash flow

Loss of customers

Unclear operating results

Sustained success

Lack of liquidityLack of liquidity

Consideration of different stages: Decreasing flexibility with increasing pressure

Transformation stages









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Organizational DynamicsandP3


Alignment of BTM2 & DYNM/P3

A rare industrial situation that sees its business strategy inextricably tied to these two principles of Penn OrganizationalDynamics

•Holistic approach

•Balance of Process and Behavioral perspectives

Mapping of Content of the P3 concentration

•Project Management

•Program Management

•Risk Management

•Portfolio Management

•Business Process Management


Mapping of Dynamics/P3 courses to BTM2

Processes Management

Risk Management

Competence & Training Management

Organizational Change Management

Strategy Management

IT Transformation Management

Value Management

Meta Management

Managing Project Portfolios, Bayney

Group Team Dynamics: Kaminstein, ZaneCoaching Others to Manage Conflict, NapierOrganizational Culture Change, VandersliceMastering Organizational Politics and Power, EldredKnowing Yourself: The Coach as an Instrument of Change, Napier

Direction

Enablement

Systems Thinking: PourdehnadComplexity, Sustainability, and Systems Thinking, BarstowOrganizational Essentials for Leadership, Choukroun

Program/Project Management

Organizational Project Management, ChoukrounProgram Management, Heaslip

Managing Project Risk, HornbacherOrganizational Risk Management, Combrick-Graham

Process Improvement, StankardBusiness Process Excellence, Kirchmer

The Art and Science of Organizational Strategy and Planning, ChoukrounOrganizational Diagnosis, Kaminstein, ZaneEffective Entrepreneurship and Leadership, KeechIs Bigger - Inevitable, Better or Worse in Organizations?, LichtPsychodynamics in Organizations, Hirschhorn

Leader-Manager as Coach, RussoStories in Organizations: Tools for Executive Development, Greco

Building a Business Case for Sustainability, Barstow, NuessleOrganizational Ethics and Integrity, Fielder


Discussion

41

Thank You!Contact information:

Tim HornungPractice Manager, Business Transformation [email protected]

Joel AdlerP3 Studies Leader, Organizational DynamicsUniversity of [email protected]

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