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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
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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
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The SAP mobile platform reliably delivers 1.8billion text messages worldwide every day.
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SAP HANA can increase analysis speed by morethan 10,000x, equal towalking from California to New York in 6 minutes.
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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.
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Business Transformation AcademyA global, trans- and interdisciplinary network of Thought Leaders
Academics / Institutes
Customers / Professionals
SAP Experts
New: SAP Partners
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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)
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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
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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
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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
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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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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
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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
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Thank You!Contact information:
Tim HornungPractice Manager, Business Transformation [email protected]
Joel AdlerP3 Studies Leader, Organizational DynamicsUniversity of [email protected]