- Transform - Introduction v1.1 FINAL

Version 1.1 January 2009

A Delivery Framework for Large, Complex Programmes

powered by Making Change Stick


powered by Making Change Stick

PricewaterhouseCoopers LLP2

Making change stickPerformance Improvement Consulting


transform*powered by Making Change Stick







Section Page

1 Introduction................................................................................ 3

1.1 Introduction......................................................................... 3

1.2 Alignment with PITBM and The Guide ............................... 4

1.3 Framework Structure.......................................................... 6

1.4 Documentation Structure.................................................. 12

1.5 Tailoring the Framework................................................... 14

1.6 How to Access Reference Materials................................. 14

© 2009 by PricewaterhouseCoopers LLP

All rights reserved.

No part of this publication may be reproduced or distributed in anyform or by any means or stored in a database or retrieval system,without prior written permission of the publisher.

COPYRIGHT © 2009 PricewaterhouseCoopers LLP.PricewaterhouseCoopers LLP has taken all reasonable steps toensure that information contained herein has been obtained fromreliable sources and that this publication is accurate andauthoritative in all respects. However, it is not intended to give legal,tax, accounting or other professional advice. If such advice or otherexpert assistance is required, the services of a competentprofessional should be sought.











1.1 Introduction

transform* is a framework to support Performance Improvement practitioners when working with clients onlarge complex business transformation programmes (“Stage 0: Developing the Proposition” of the frameworkprovides a description of business transformation). transform* guides an organisation through the tasks andactivities needed to achieve successful performance improvement and the realisation of planned businessoutcomes and benefits during a business transformation programme.

Designed to be flexible in its application, the framework provides a route map for implementing the strategic,people, process, technological, structural and facilities changes required to implement new or amendedbusiness strategies. It guides an organisation in implementing major changes which are designed to addvalue, obtain and sustain strategic and competitive advantage and to be implemented in a cost-effectivemanner.

For PwC to be able to support our clients with business transformation a number of transformationcapabilities must be addressed:

Proposition – What is the PwC business transformation proposition and how do well sell this to ourclients?

Route map – What is the route map for delivering a transformation assignment and how does it reflectthe PwC way of working?

Tools – Do we have the tools to deliver a transformation programme and how do we use them?

Style – What is distinctive about the way that we work on transformation engagements?

Capability – What capability do we have with regards to the requirements of a transformationprogramme?

Packaging – How do we make our offering useable for practitioners and clients?

Figure a highlights how transform* is designed to support the development of PwC’s transformationcapabilities.











Figure a: How transform* supports PwC’s Transformation Capability

1.2 Alignment with PITBM, The Guide and Making Change Stick

The transform* framework is aligned to the “PITBM Methodology” and uses the principles outlined within“The Guide” to ensure a holistic approach to organisation-wide transformation.

Figure b: Alignment with PITBM and The Guide











transform* uses the PITBM Stages and Phases and the same terminology. A lot of the PITBM materialshave been incorporated and built upon within the Framework. However, the transform* framework is moredetailed and comprehensive for use in complex business transformation engagements. PITBM’s strength isits applicability for a wide range of engagement sizes and complexities. However, the weakness in PITBMfor business transformation work is that:

It does not deal with all work stream areas in the early stages (Process, Technology, People &Organisation and Facilities) and does not cover Target Operating Model or Blueprinting;

It does not cover key change management activities such as Design Authority, Culture & Behaviours orTransformational Leadership;

It does not deal with the management of the interdependencies of a transformation or many of the detailsteps required during the detailed Design and Construction Stages.

The transform* framework builds upon the existing investment in the PITBM Methodology development andtraining, and many practitioners are likely to be trained in PITBM methods before developing the additionalcapabilities outlined in transform*. Training in transform* is intended to support the development of PwCBusiness Transformation capability on larger more complex engagements.

The Guide is a framework which provides a structure for looking at client issues in a comprehensive manner.Its intention is to stimulate and guide our thinking, to enable us to:

Develop an understanding of the inter-relationships needed to solve complex client problems;

Look at the whole problem rather than those parts that our background and skills make it easiest torecognise and deal with;

Move outside comfort zones, connect issues, connect people and ideas together, and see the biggerpicture;

Co-design completely connected solutions with our clients and release the full potential of opportunitiesavailable to them; and

Transform our relationship from good solution provider to highly valued and trusted long-term businessadvisor.

transform* uses the principles of The Guide to ensure that a holistic view of the client is developed and thatthe complex inter-relationship of activities in a business transformation programme are addressed. TheGuide should be used as a questioning tool alongside transform*. Within The Guide a number of dimensionsare outlined, the transform* framework uses these dimensions as a basis of the themed areas that need tobe addressed in a transformation programme (the transform* themed areas are also consistent with thecomponents of change within PITBM).

The Guide - Dimensions transform* Themed Areas

Strategy Strategic Direction

Structure Structure

Facilities

Process Process / Service

People People & Organisation

Technology Enabling Technology











The transform* framework is considered to be an “umbrella” framework in that, to complete each changeinitiative project, it may be necessary to add in or combine all or some components from other PerformanceImprovement methodologies, services or tools such as the Shared Service Centre Methodology whencreating Shared Service Centres (in addition to its close links with PITBM and The Guide).

The transform* framework has the principles of Making Change Stick embedded throughout. In particularthe emphasis of our engagement with clients during delivery of an engagement should be on the ten keysuccess factors:

Design the best-fit change approach:

Benefits

– Keep business benefits at the heart of change;

– Challenge the data and its interpretation;

– Agree the measures of success and how to monitor them; and

– Focus on the actions that make a difference fast.

Involvement

– Through involvement build a vision and hunger for success;

– Engage the front-line before, during and after; and

– Communicate with a purpose.

Sustainability

– Give leaders the skills – and the heart – to lead; and

– Make sure systems, processes and culture re-enforce the change.

This framework is industry-independent, application-independent and tool-independent and is intended to beequally applicable to different situations, regardless of the technology, scope or approach.

1.3 Framework Structure

The transform* framework follows a hierarchy of work units common to other Performance Improvementframeworks and methodologies:

Stages - a series of related work activities that define the main activities to be completed;

Phases - within each Stage, there are a number of related activities that need to be accomplished. Thereare also a number of “Cross-Life Cycle” activities such as project management, change management andtraining which are Phases that occur across a number of Stages;

Tasks - within each Phase there are a number of tasks that need to be accomplished. The tasksdescribe what needs to be done to complete the work outlined in the Phase. Typically, a task isconcluded by the completion of an interim or final work product and the combination of these workproducts makes up the Phase deliverable; and

Steps - the lowest level in the hierarchy. For each task, a series of steps are defined which provide an











outline of how to complete the task.

The transform*™ framework consists of the following Stages: A pre-engagement stage - Stage 0: Developing the Proposition; and

Five key Stages of delivery with the client (shown in Figure c):

– Stage 1: Assess

– Stage 2: Design

– Stage 3: Construct

– Stage 4: Implement

– Stage 5: Operate & Review

Figure c: Framework Overview











The following table outlines a high-level description of the Stages and Phases within them (as shown inFigure d):

Stage Phases (within the Stage)

Stage 0: Developing the Proposition

Provides:

A definition of Business

Transformation;

Transformational change - an

academic view;

Critical steps for lasting

transformational change;

How to deliver transformational

change by making change stick;

Examples of defining

programme scope;

PwC capabilities;

Potential PwC roles;

Working with alliance partners;

Sales framework.

The following Phases are within the Sales Framework section of Stage 0:

Sales Approach: Describes how to qualify and classify opportunities, use lessons

learned from other sales, create the sales team, hold the initial sales meetings, and

transition from sales to delivery;

Differentiating PwC: Describes how to analyse competitors during the sales

process, and how to use PwC’s unique way we go about our work to deliver

sustainable, superior solutions;

Commercial Approaches: Describes fee structures, demonstrating value for

money, and how to account for the costs of transformation.

Stage 1: Assess

Assess is used to confirm the

organisation’s business needs, to assess

the selected areas of the current

environment for improvement opportunities

and to agree upon the opportunities for

improvement.

This is through defining the High-level

“Blueprint” for the new organisation and

the “Case for Change”, and the portfolio of

initiatives that will transform the

organisation, while achieving short- and

medium-term fiscal and service goals.

Phase A – Determine Business Needs and Business Benefits. The scope is

confirmed and the project is commenced. The organisation’s business needs and

planned business benefits are reviewed and confirmed.

Phase B – Benefits, Project, Programme and Change Management. Project

initiation, governance and management are undertaken for the Assess Stage.

During the Stage, development of Programme governance, programme plans,

resource plans, and benefits plans are developed for later stages in the programme.

A vision for the transformation is developed; leadership is aligned to support it. The

Leadership and organisational capacity for transformation are assessed, and a high

level transformation route map is developed. Initial stakeholder analysis is completed

and communications planning is commenced. Phase B is a Cross-Life Cycle phase

as different components from the phase may be used and completed in any of the

other phases.

Phase C – Create Transformation Baseline. Data is collected about the external

environment, current policies, business processes, data, technologies, organisation,

facilities, change environment, activities, and performance measures. These are

assessed against leading practice to identify gaps and improvement areas. Where

appropriate, benchmarking is conducted or other techniques are used to gather data

or measures about current performance levels.

Phase D – Create Case for Transformational Change. Evaluation criteria are

agreed and opportunities for improvement are assessed. A high-level Target

Operating Model is developed and improvement opportunities are agreed. An

Outline Business Case is developed to create the “Case for Change”.












Stage 2: Design

Design is used to complete a design of the

transformed environment and to explore

and develop implementation strategies.

This is achieved by creating the detailed

“Target Operating Model” and plan for the

organisation (e.g. new org structures,

processes, locations, skills, IT etc), whilst

also implementing “quick win” initiatives.

Phase B – Benefits, Project and Change Management. The programme

governance is refreshed to ensure fit-for-purposeness to later stages of the

programme. Detailed programme, benefits and resource planning is completed.

The change management strategy and plans are completed and communications

activities are undertaken. Initial transition planning is developed and test strategies

are developed.

Phase E – Design Transformed Organisation. Detailed design of policies,

business processes / services, technologies, organisational structures and facilities

is completed to support the achievement of the improvement opportunities that have

been agreed. The Target Operating Model is updated and Blueprint for the

organisation complete. A detailed business case is completed and agreed.

Phase F – Training. This phase is a Cross-Life Cycle phase during which a review

of the current level of relevant knowledge and skills is undertaken. Existing training

and development resources available are assessed and evaluated as to their

suitability. Leadership is assessed and development support established as

required. Key inputs to other areas are completed: in particular, the benefits and

sustainability of training and development including the evaluation strategy, and, how

training and development will be integrated and furthered through communication. A

training needs analysis is completed for the skills required during later stages of the

programme. The training scope and strategy is progressed. Initial outlines for

training courses and other development interventions are identified and high level

designs created. Early discussions take place with the client to determine and

agree the appropriate evaluation and Return on Investment measures .

Phase G – Develop Implementation Strategies. Implementation strategy

alternatives are explored. The selected strategies are agreed to support the

construction of the changed or new policies, business processes, technologies,

organisation and facilities. High level transition plans for people and services are

developed.

Stage 3: Construct

Construct is used to develop the

appropriate policy changes, business

process changes, technology changes,

organisation changes and facilities

changes. Once developed, detailed

implementation plans are prepared.

Phase B – Benefits, Project and Change Management. Change actions are

identified and undertaken. Transition plans are finalised. Testing strategy and plans

are completed. Benefits, Programme and Quality management are undertaken.

Phase F – Training. The earlier client approved high level design is progressed and

a full detailed design is developed to meet the agreed needs of the new

organisational structures and knowledge, skills and attitude requirements. The

materials required to support the training courses are designed and pilot training

sessions delivered together with Instructor training sessions. Based on the feedback

from these events any revisions to the detailed design will be made prior to the roll-

out. The implementation plan will be created and all the logistical arrangements put

into place.

Phase H – Construct Business Process Changes. The business processes, data

and procedures required to support the change initiative goals are built, documented

and tested.

Phase I – Construct Technology Changes. The technology components required

to support the change initiative goals are built or acquired, documented and tested.

This may require design of application and infrastructure components, design of

application interface components, design of data management mechanisms and the

selection of tools, software, hardware or other equipment.

Phase J – Construct Organisation Changes. The organisation structure required












to support, implement and maintain the change initiative’s goals is determined and

includes such items as resource needs, training needs, logistics needs, recruitment

needs, performance needs and performance measures.

K – Construct Facilities Changes. The facilities required to support the

organisation’s change initiative goals are acquired or built and put in place. This

may require the preparation and distribution of Request For Proposals, the

evaluation and selection of suppliers and facilities installation and testing.

Phase L – Procedures Documentation. The procedures necessary to support both

the new or amended policies and business processes, systems and technology,

organisation and facilities are drafted, tested and finalised using the selected delivery

mechanisms.

Phase M – Develop Migration and Implementation Plans. Migration plans and

detailed implementation plans are prepared to support the migration to the changed

environment. Transition plans are finalised.

Stage 4: Implement

Implementing the portfolio of group-wide

and organisation-wide initiatives, pro-

actively ensuring benefits are tracked and

realised, addressing any shortfalls (i.e.

portfolio “leakage”).


undertaken. Benefits, Programme and Quality management are undertaken.

Phase F – Training. Training sessions and other development interventions are

delivered. Ongoing course maintenance and presentation responsibilities are

defined. Level 1 & 2 evaluation of the initial success of the development and training

interventions is completed.

Phase N – Migration and Implementation. The processes, technologies,

organisation and facilities changes that have been created are implemented.

Stage 5: Operate & Review

Operate the transformed organisation,

deliver the benefits, and instigate a culture

of continuous improvement.


finalised. Benefits, Programme and Quality management are finalised. The

programme is formally closed.

Phase F – Training. Ongoing skills and people development processes are

implemented. Benefit and sustainability review of training and development

interventions is completed.

Phase O – Operation and Continuous Improvement. Mechanisms to ensure that

the change initiative goals are monitored and maintained are put in place and a

continuous improvement program is instigated.











Figure d: Phases and Stages – Framework on a page

Running across all of the Stages are eight themed areas:

Strategic Direction – Definition and agreement of strategy and agreement of plans and sign-off of keydeliverables of the programme;

Structure – Development of the Governance and Legal structures of the organisation, and theoperational sourcing and supply chain;

Facilities – Definition and implementation of transformed facilities to support the new organisation;

Process / Service – Development and implementation of transformed processes and services;

People & Organisation – Development of internal organisational structures and transition of people;

Enabling Technology – Development and implementation of technology to enable the transformationalchange;

Change Management – Leadership, change, training and organisational development; and

Programme Delivery – Programme, Benefits and Quality management of the transformationprogramme.











1.4 Documentation Structure

Each Stage within the framework is structured as follows:

A Stage Introduction that provides a description of the Stage,and highlights key interdependencies between Phases withinthe Stage and with other Stages. A diagram outlining thePhases and Tasks within the Stage is presented within theintroduction.

Each Phase within the Stage contains a description of thePhase which outlines the benefits of the Phase andinterdependencies.

An Input/Output diagram for each Phase is presented within thePhase introduction that outlines the key deliverable inputs (orexternal/client inputs) and outputs for the Phase.

Each Task within each Phase contains a detailed description of the task and the steps within the task. Thestructure of the Task documentation is outlined below:











A1 Task

Purpose

What is this task about?

Overview

High level description of the task.

Interdependencies

Interdependencies

Ref No: Name of phase / stage / task Brief Description of interdependency and relevance to task

Inputs

Inputs

Ref No: Name of input Brief Description of input and relevance to task

Task Description

Tasks

Ref No: Name of task / step Brief Description of task / step

A1.1 Step within TaskHigh level description of the step

Outputs & Deliverables

Outputs & Deliverables

Ref No: Name of Output / Deliverable Brief Description of Output / Deliverable

Benefits

Benefits of completing the task

Knowledge Transferred to the Client

Typical knowledge that is transferred to the client whilst completing the task

Reference Materials

Reference Materials

Name of Reference Material Brief Description of Material

A statement on thepurpose of the Task

An overview of the Task

Interdependenciesbetween the Task andother Stages, Phases orTasks. These arehyperlinked

Inputs that are usedduring the Task. Theseare linked to templatesand examples onGateway

Detailed descriptions ofthe steps within the Task

Outputs that are createdduring the Task. Theseare linked to templatesand examples onGateway

Benefits to the client ofcompleting the Task

Typical knowledgetransferred to the client

Reference materials foruse during the Task –these are available onGateway











1.5 Tailoring the Framework

The framework may require tailoring during an engagement to meet the needs of the specific changeinitiative in a number of different ways. When tailoring, the project leader should ensure that the tailoredtasks provide an adequate framework for the project team to produce a high quality result. It is intended thatthe framework is a guide and it therefore does not replace the need for comprehensive scope assessment,for example if the transformation was addressing the nuclear industry then a far greater emphasis might beplaced on health and safety and security, or if addressing the hedge fund sector then finance and riskmanagement would be critically important.

In considering tailoring, it is important to understand the following premises upon which the framework isbased:

The framework is intended to give a context to transformational change and be a framework of tools andtechniques with illustrative examples. It is expected to be an 80% fit, rather than a detailed workprogramme to be followed without tailoring to client needs;

The framework is industry-independent, application-independent and regulation-independent.Specific components or work tasks and steps may need to be added to specifically address these areas;

The framework is tool-independent in that while a variety of different tools can be used to support theframework and the change project (e.g. project management tools, business process mapping andmodelling tools, decision analysis tools, graphics tools), it is not dependent on any specific tools;

The framework is flexible in that only certain Phases may be used or specific Tasks or Steps may beselected (e.g. the use of the Training Phase to determine an organisation’s specific training needs andtraining creation and delivery). However, if Tasks and/or Steps are removed, an assessment should bemade of the impact of this removal on subsequent Tasks and Steps that may be dependent upon certaintypes of deliverable feeding into them;

The framework is scalable in that for large-scale projects each phase may be undertaken by separateteams with appropriate skills. For smaller projects, one multi-skilled team may undertake all of the tasksconcurrently and some of the phases may also be collapsed in to one another; and

The techniques contained in the framework may be used on other types of engagements and othertechniques may be used that are not contained in the framework.

1.6 How to Access Reference Materials

transform*™ is available for practitioners to use in a variety of ways:

Online through Gateway – An online version of the framework is available through Gateway using thefollowing link – Gateway transform*™. The online version contains all of the detailed descriptions of theStages, Phases and Tasks within the framework. It also contains contextual links to reference materialsfor each of the Tasks, and links to other relevant methodologies, tools and guidance;

Offline Navigator – An offline version of the navigation for the framework is available for use as an aidememoire, and also to support explanation of the framework to clients. The offline version does not containthe reference materials, but does contain links to the Gateway content; and

Downloadable Documents – Downloadable pdf documents are available for each of the Stages withinthe framework. These are useful to support the creation of proposals, etc. where practitioners need tocopy some of the content. The reference materials are not included within these documents.

https://knowledgecurve.com/global/gkg/pi_uk_gwy.nsf/(search_gkg)/2853E3A07EA3E5D78025744A0046EA1F?OpenDocument











The reference materials within the Gateway version of the framework are linked to each of the Tasks. At thebottom of each Task page are three buttons that perform a contextual search for reference materials:

Templates – Are example templates that can be used to complete theTask;

Tools & Guidance – Are additional tools or guidance notes that arerelevant to the Task; and

Example Deliverables – Are examples of the output deliverablesdescribed within the task.

© 2009 by PricewaterhouseCoopers LLP

All rights reserved.

No part of this publication may be reproduced or distributed in any form or by any means or stored in a database or

retrieval system, without prior written permission of the publisher.

COPYRIGHT © 2009 PricewaterhouseCoopers LLP. PricewaterhouseCoopers LLP has taken all reasonable steps to

ensure that information contained herein has been obtained from reliable sources and that this publication is accurate

and authoritative in all respects. However, it is not intended to give legal, tax, accounting or other professional advice. If

such advice or other expert assistance is required, the services of a competent professional should be sought.

© 2009 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to the

PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, other

member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal

entity.

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