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change management, Governance, LPS, Thought Leadership

Focusing on Outcomes Over Outputs


In our PMO blog series so far we have covered how traditional PMOs need to evolve to meet the growing demand from the business. We focused on three areas which will enable us to meet these demands:

            • Moving the focus from delivering outputs efficiently to delivering the right outcomes,
            • Enabling the organisation to support delivering outcomes through adaptive governance and,
            • Shifting PMO tools to enable people to focus on value instead of enforcing process

In this blog, we will take a closer look at some frameworks and tools to help you with the shift from outputs to outcome-based delivery.

 

“It is not enough to do your best; you must know what to do, and then do your best.”

– W. Edwards Demming

 

Humans are hard-wired to jump to conclusions. This inclination towards “premature problem solving” drives organisations toward solutions which often 1) don’t solve the real problem or 2) create more problems than they started out with.

 

Our drive to find a solution can overtake our ability to think through the problem.

 

 

If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and five minutes thinking about solutions. – Albert Einstein

 

In order to overcome this, we need to consider a problem from several viewpoints.  By understanding the outcomes that we are looking to achieve using a structured problem-solving process we set ourselves up for success.

 

There’s no one single right process – but we’ve pulled together several methods & frameworks that can help.

 

Designing your solutions (with a customer lens):

 

  • Design Thinking: Design thinking is the most popular method for understanding customer needs and designing a product or service that meets them. Some widely used design thinking tools include:

 

 

  • Contextual Design is a customer-centered design process that uses extensive field data as the foundation for understanding users’ needs, tasks, intents, and processes in order to design products and systems that meet both users’ and business’ needs.

  • Innovation Vortex: Jurgen Appelo created the innovation vortex which combines design thinking and lean start-up into continuous innovation vortex. This can be used as a self-assessment model to see if you are on the right path to deliver the outcome.


Understanding and clarifying your desired outcomes:

  • Personas: Alan copper introduced the personas concept as effective way to understand customer needs. Personas are a fictitious character that represent a segment of customers. Creating persona enables people to empathise with the customer’s needs, wants and problems.

  • Customer Journey mapping: Mapping a customer’s or persona’s interaction with the organisation helps you understand how you can create better experience for your customers at specific touch points in their journey.

 

  • Value Stream Mapping: This method from Lean management is primarily used to analyse the flow and time to market of a product. The value stream can show how an organisation’s internal operation impacts on customer experience.

 

  • A3 Problem Solving Toyota used this template as a structured way to solve problems and identify and implement continuous improvements.

  • Business Model Canvas: Alexander Osterwalder created this as a simple visual model that gives a clear view of the people, financial, key activities, metrics market segments

(see also Opportunity Canvas)

  • Value Proposition: Another great visual model that takes customer pains and gains and creates products or services that add value.

  • Product Vision: This is a simple and effective way to describe the purpose of a product or service.

 

 

Before using any of the models, frameworks or techniques, we recommend you research what they are and when they are most effective to use. They need to be right for your organisation.

 

If you would like to explore how they could benefit you in more detail please reach out to us and we would be happy to help.

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change management, Governance, LPS, Thought Leadership
Authored by Rob Franklin and Priya Sivakumar.

In our previous blogs we’ve talked about how our PMO functions are adapting to the changing needs of our customers and the market. We identified three focus areas that need to be reshaped in order to support our organisations to evolve:
  1. Moving the focus from delivering outputs efficiently to delivering the right outcomes
  2. Enabling the organisation to support delivering outcomes through adaptive governance
  3. Shifting PMO tools to enable people to focus on value instead of enforcing process
In this blog we’re going to share some ideas that we’ve seen succeed, that could help tackle some of the processes in your organisation that might be slowing down your evolution.

We would like to start on addressing enabling organisations so deliver outcomes through adaptive governance!

Traditional project management functions were designed for a sequential delivery approach of analysis, design, build, test and deploy. Funded annually, they generally lock in the projects to be delivered throughout the year. An iterative delivery approach harnesses the ability to change direction based on feedback and validation of ideas in quick cycles.

While most organisations are making moves towards iterative delivery approaches, many of them still seem to be struck with the old governance model that was more suited to sequential delivery.


How do we create a structure and process to fund, mobilise and prioritise our work, without stifling the creative, customer-centric, iterative delivery approach?

Figure 1: Shows the shift from output to outcome focused delivery models

Adaptive governance focuses on providing the guidance and handrails necessary to fund the right outcome, mobilise the people, and optimise the results for the customer whilst being flexible enough to support a changing ecosystem which demands the ability to shift quickly if needed.

Adaptive governance isn’t a one size fits all framework (it wouldn’t be very adaptive if it was) but can be achieved by embracing the evolving delivery governance models that might solve the governance challenges that are unique to your organisation. Here are a number of ideas that you can explore and experiment with on your journey.

Figure 2: Adaptive Governance supports all aspects of outcome delivery


Value streams
A value stream model centres on optimising the activities and processes that deliver outcomes to customers.

Using this lens, governance and funding could be modelled around the value streams identified in your organisation. Some examples of models that have aligned to value streams include:

  • Spotify : Created an operating model that enabled them to optimise their delivery.
  • McKinsey Tribe: This model is based on the ING agile transformation. We have seen it being adopted by some organisations within the NZ market
  • SAFe: SAFe is Scaled Agile Framework for enterprise-wide Agile deliver programmes.
           
Funding and capacity planning
Funding and capacity planning are very tightly linked as we move to outcome, rather than output, based delivery. By better aligning demand and capacity available we can more easily fund the right work throughout the year.

The goal should be enabling teams to focus on the highest value outcomes, in alignment to the organisation’s strategy and goals. Some examples of models that support outcome and capacity based funding include:

  • Lean portfolio management: Lean portfolio management (LPM) is applying lean principles to managing a program and product portfolio. LPM helps with the alignment and execution of business outcomes across the enterprise.
  • Beyond Budgeting: Beyond Budgeting looks to shift from traditional planning and control to empowerment and adaptive governance.
  • #noproject: #noproject is set of principles, practices and ideas to enable business agility.
 
Thanks for Reading! We’d like to hear your thoughts – please feel free to leave a comment, or get in touch with Rob Franklin or Priya Sivakumar on LinkedIn.

Click here to learn more about LPS and our capabilities
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change management, LPS

What is Change Management?


People quite often ask what is change management? Change management is how you approach dealing with transition or transformation of organisations. This can involve their technologies, processes or goals. Strategies are used to help people adapt to the change and to also control the change. Procedures are included in the strategic plan to align with the change requests. Mechanisms are also used to follow up on the changes and respond to the requests.


Change management is what guides how companies prepare, equip and support people to successfully adopt the change in order to drive business success. Providing employees with structured approaches for supporting individuals through changes is very important. All changes will be different for each organisation due to the people and the organisation itself. There are three important parts of any change in a company explained further below. 



Organisational Change Management


A project team will be used to manage changes on a one on one basis. Change Management provides companies with step by step actions to take projects to the level needed to support the individuals impacted by those projects and changes. The change will happen on an individual level but on team project managing change one on one doesn’t work. 

Organisational change involves sectioning off the projects and people attached to each project and what those changes will be. Then create a plan that is customised for each project and group of people involved. This will include what training needs to be made and what those people need to be aware of prior and also after the change has been made.

Organisational change comes hand and hand with project management. Project management ensures your project’s solution is designed, developed and delivered, while change management ensures your project’s solution is effectively embraced, adopted and used.


Enterprise Change Management Capability

Enterprise change management is an organizational core competency that provides competitive differentiation and the ability to effectively adapt to the ever-changing world. An enterprise change management capability means effective change management is embedded into your organization. This is through roles, structures, processes, projects and leadership competencies. Change management processes are applied to initiatives. Leaders have the skills to guide their teams through the changes and this leads employees to know what to ask for in order to be successful.

In conclusion enterprise change management capability allows individuals to embrace change more quickly and effectively. A company can respond quickly to market changes, embrace strategic initiatives, and adopt new technology. As a result of responding quickly to market, there is less productivity impact. The following needs a strategic approach to embed change management across an organization.

 

Individual Change Management

Individual change is the understanding of an individuals experience throughout the change. It is understanding what this person needs in order for the change to go well. It involves knowing what messages to tell people and at what times. You also need to factor in that you need to coach people and help them develop the new skills that are involved in the change.  Individual change management is based on psychology and neuroscience. It applies actionable frameworks to individual change. In conclusion to answer what is change management really depends on the organisation and it’s stricture to determine what changes need to be managed and in what ways.

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change management, LPS

Leading Change
By Deanna Sorrell – Change Manager RBNZ

 

Change… we’ve all encountered a change in some shape or form (good or bad!), especially at work as we’re encouraged to be ‘agile’, ‘lean’, efficient and effective. In many organisations change is the new norm and so is actively encouraged and embraced. Ensuring change is adopted and sustained is the challenge, and there are eight steps you can follow to help with the success of your change journey.


*Kotter’s 8-step process for leading change:

Creating a climate for change 

1. Increase Urgency 

2. Build the guiding team 

3. Get the right Vision 

Engaging and enabling the whole organisation 

4. Communicate for buy-in 

5. Empowering action 

6. Create short-term wins 

Implementing and sustaining the change 

7. Don’t let up 

8. Make it stick 

Let’s explore each step in more detail, outlining what you should do as well as what you should try to avoid… 

Creating a climate for change 


1. Increase Urgency 

DO 

* Examine market and competitive realities for potential crises and/or untapped opportunities. 

* Convince at least 75% of your managers that the status quo is more dangerous than the unknown. 

AVOID 

* Underestimating the difficulty of driving people from their comfort zones. 

* Becoming paralysed by risks. 


2. Build the guiding team 

DO 

* Assemble a group of change agents with shared commitment and enough power to lead the change effort. 

* Encourage the group to work as a team outside the normal hierarchy.

AVOID 

* People with no prior experience of teamwork at the top. 

* Relegating team leadership to HR, or elsewhere rather than a senior line manager. 


3. Get the right Vision 

DO 

* Create a vision to direct the change effort. 

* Develop strategies for realising this vision. 

AVOID 

* Presenting a vision that’s too complicated or vague. 

Engaging and enabling the whole organisation 


4. Communicate for buy-in 

DO 

* Use every vehicle possible to communicate the new vision and strategies for achieving it. 

* Teach new behaviours by the examples given by the guiding coalition. 

AVOID 

* Under communicating the vision. 

* Behaving in ways that oppose the vision. 


5. Empowering action 

DO 

* Remove or change systems or structures undermining the vision. 

* Encourage risk-taking and non-traditional ideas, activities, and actions. 

AVOID 

* Failing to remove powerful individuals who resist the change effort. 


6. Create short-term wins 

DO 

* Define and engineer visible performance improvements. 

* Recognise and rewards employees contributing to those improvements. 

AVOID 

* Leaving short-term successes to chance. 

* Failing to score successes soon enough. 

Implementing and sustaining the change 


7. Don’t let up 

DO 

* Use increased credibility from early wins to change systems, structures and policies undermining the vision. 

* Hire, promote and develop employees who can implement the vision. 

* Reinvigorate the change process with new projects and change agents. 

AVOID 

* Declaring victory too soon – with the first performance improvements. 

* Allowing resistors to convince the ‘troops’ that the war has been won. 


8. Make it stick 

DO 

* Articulate connections between new behaviours and corporate success. 

* Create leadership development and succession plans consistent with the new approach. 

AVOID 

* Not creating new social norms and shared values consistent with change. 

* Promoting people into leadership positions who don’t personify the new approach. 

*John P.Kotter is internationally known and widely regarded as the foremost speaker on the topics of Leading Change. He is the premier voice on how the best organisations actually achieve successful transformations, having identified and extracted the success factors into a methodology, the 8-Step Process for Leading Change.

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change management, LPS

Change Management in an Agile Environment
By Helen Franklin Change Manager – Vodafone

If you’re new to the idea of change management, or you’ve never really understood what it is, it’s most simply defined as “managing the people side of change”. It’s a simple definition of something that can be pretty complex and messy in real life. In a given day our change managers can work on everything from gaining the buy-in of senior leaders to a controversial solution, to finding creative ways to make difficult changes exciting and engaging for the people in our companies.

We have a number of change managers working with our LPS customers today, in industries as diverse as telco, financial services, and logistics. We also work today on both waterfall and Agile programmes, as well as programmes with one foot in each camp!

In March I was lucky enough to spend a few days in Las Vegas. I was able to attend the global Association of Change Management Professionals (ACMP) conference. The big topic of discussion was how we adapt our change management practices to align with Agile ways of working.


When we talk about change management and Agile, we’re usually talking about one of two things:



1. Transforming to Agile: Helping people to transition to Agile ways of working
2. Delivering within Agile: Helping manage the people side of initiatives that are being delivered by Agile teams


Insights from ACMP about effectively delivering within Agile.



Understand that the principles of change management are just as important in an Agile environment, but accept that there isn’t a one-size-fits-all approach or framework that will apply exactly to what you are doing. Instead of focusing on tools, methods, or checklists go back to the basics of what outcomes you are trying to achieve and what you think will help deliver those outcomes.

Treat your change management activity as “plays” in a playbook, or experiments, instead of a set in stone plan. Create a backlog of change activity that you think will help achieve your outcomes, but be willing to adapt or throw ideas away if they aren’t working. Align your planning and experimentation to the sprint cycles of your Agile teams.

Set and manage expectations early. Both your sponsors and your “users” need to understand not only what’s changing because of your initiative(s), but what’s different about how the initiative is being delivered (if Agile is new or new-ish to them). Taking the extra time to explain the approach early will be worth it.

Consider how you can do training and communications in small bite-sized pieces. Explore Digital Adoption Platforms, Micro-Learning, and Point of Need Learning, which all aim to provide the right amount of information to the right person at the right time.

So there are some interesting ideas for your next Agile change – what have you tried that worked or didn’t?

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