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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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Governance

LPS New Zealand Ltd appointed to AOG Operation Management and Risk panel.




As part of the All-of-Government (AOG) Consultancy Services solution, New Zealand Government Procurement (NZGP) has established the Business and Finance category.  This category offers eligible government agencies specialist advice. It also offers competitive solutions from a broad panel of experienced consultancies. LPS New Zealand Ltd, is pleased to have been appointed as a panel provider in the Operation Management and Risk tier 3 (AOG Operation Management and Risk). Eligible government agencies are encouraged to contact the Consultancy Centre of Expertise to sign up to the contract. This means there are benefits from the discounted rates, standardised terms, and conditions offered through the AoG Consultancy Services solution. Further information can be found on the Consultancy Services page on the New Zealand Government Procurement website.





The AOG Operation Management and Risk panel opens great opportunities for LPS. It allows LPS to establish a wider team and to swiftly contract with government. Working with companies like LPS New Zealand Ltd saves government agencies time and money. In conclusion, this saves taxpayers money which means that money can be spent elsewhere. The AOG panel allows access to a range of providers offering quality and good value for money services.  For more information on the panel and to find out more about All-of-Government (AOG) visit the Procurement website:  https://www.procurement.govt.nz/contracts/consultancy-services/

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Governance, LPS

LPS New Zealand Limited appointed to AOG Business Change panel.




As part of the All-of-Government (AOG) Consultancy Services solution, New Zealand Government Procurement (NZGP) has established the Business and Finance category.  This category offers eligible government agencies specialist advice. It also offers competitive solutions from a broad panel of experienced consultancies. LPS New Zealand Ltd, trading as LPS, is pleased to have been appointed as a panel provider in the Business Change tier 3 (AOG Business Change). Eligible government agencies are encouraged to contact the Consultancy Centre of Expertise to sign up to the contract. This means there are benefits from the discounted rates, standardised terms, and conditions offered through the AoG Consultancy Services solution. Further information can be found on the Consultancy Services page on the New Zealand Government Procurement website.





The AOG Business Change panel opens great opportunities for LPS. It allows LPS to establish a wider team and to swiftly contract with government. Working with companies like LPS New Zealand Limited saves government agencies time and money. In conclusion, this saves taxpayers money which means that money can be spent elsewhere. The AOG panel allows access to a range of providers offering quality and good value for money services.  For more information on the panel and to find out more about All-of-Government (AOG) visit the Procurement website:  https://www.procurement.govt.nz/contracts/consultancy-services/

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Governance, LPS

LPS New Zealand Limited appointed to AOG Assurance panel.




As part of the All-of-Government (AOG) Consultancy Services solution, New Zealand Government Procurement (NZGP) has established the Business and Finance category.  This category offers eligible government agencies specialist advice. It also offers competitive solutions from a broad panel of experienced consultancies. LPS New Zealand Limited,  is pleased to have been appointed as a panel provider in the Assurance tier 3 (AOG Assurance). Eligible government agencies are encouraged to contact the Consultancy Centre of Expertise to sign up to the contract. This means there are benefits from the discounted rates, standardised terms and conditions offered through the AoG Consultancy Services solution. Further information can be found on the Consultancy Services page on the New Zealand Government Procurement website.





The AOG Assurance panel opens great opportunities for LPS. It allows LPS to establish a wider team and to swiftly contract with government. Working with companies like LPS New Zealand Limited saves government agencies time and money. In conclusion, this saves taxpayers money which means that money can be spent elsewhere. The AOG panel allows access to a range of providers offering quality and good value for money services.  For more information on the panel and to find out more about All-of-Government (AOG) visit the Procurement website:  https://www.procurement.govt.nz/contracts/consultancy-services/

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