Today’s blog will focus on why some transformation projects fail and how we at Claverton can help.
In our experience, the single most cited reason for failing transformations is weak, inactive or invisible sponsorship. So why does weak sponsorship matter so much that it tops the list? Well, it is so impactful because the sponsor should be the person with the transformational need, who requires the programme in the first place, and is therefore prepared to lead the transformation process. If they are not be prepared, or are unable, to provide transformation leadership, the team delivering the change is likely to be directionless. Before embarking upon a transformation programme, it is essential that the sponsor understands and commits to their role.
What is the role of a sponsor?
One definition of ‘Sponsorship’ that we feel to be particularly helpful is:
“Project Sponsorship is an active senior management role, responsible for identifying the business need, problem or opportunity and accountable for the business outcomes. The Sponsor ensures the project remains a viable proposition and that benefits are realised, resolving any issues outside the control of the programme leadership team. A Project Sponsor advocates, directs, justifies, authorises resources, facilitates and supports the project, making executive decisions when required.”
What does this mean a sponsor should do in practice?
It is often useful to decompose this definition to help understand it, so let’s do that here:
“active senior management role” – this suggests that sponsorship comes from a high-level within an organisation and is represented by someone with the necessary authority to be able to galvanise stakeholders into making transformation happen; it is an active rather than a passive role
“responsible for identifying the business need” – the sponsor must be the person in possession of the imperative to make the change happen – identifying and championing a real business need and justifying the programme investment in order to reap the rewards
“accountable for the business outcomes” – being the leader of an initiative means you are accountable to your bosses or peers for the results. Only when you are truly accountable can you be considered an effective sponsor by those working around and for you. You must be seen to have material skin in the game if people are to view your sponsorship (and you) as credible
“ensure it remains viable” – recognising that factors change over the life of a major transformation project is a feature of mature organisations, which understand how change may affect the commercial viability of a programme. The Sponsor is the one that should keep their eye on this ball and report threats or impacts back via the governance process
“ensure benefits are realised” – a common mistake at the start of a major change is to assume that all the benefits will be realized by the close of a transformation programme when, in fact, benefits often require to be measured and claimed for many years after it has finished. The sponsor should ensure that suitable governance processes are in place to track benefits realization to ensure they are fully achieved.
“resolving any issues outside the control of the programme leadership team” – this aspect is a critical feature of a successful leader: who will take on matters that are outside the sphere of influence of the programme team and resolve them (e.g. with other executive leaders, third parties, customers, suppliers etc.)
“advocates” – leading a transformation programme necessitates a sponsor to become a change evangelist, that is, a sponsor needs to champion and sell the programme and its benefits to all stakeholders, including affected staff. It is important not to underestimate how much effort this requires – a sponsor needs to visibly lead kick-off events, governance forums and major decision-making events Considerable time must be expended to galvanise their peers and executive stakeholders, ensuring the wider organisation is actively supportive
“making executive decisions” – the final, crucial, leadership quality that transformation programmes require is access to a decision-making sponsor; one that will not only take decisions but do so willingly, quickly and authoritatively. Many otherwise well-run transformations flounder because the decision-making culture of an organisation is not fit-for-purpose, or the sponsor themselves struggles to take effective decisions. An effective sponsor will make sure that they are suitably empowered and have ready and rapid access to other decision-makers in their ecosystem.
How might weak sponsorship manifest itself?
Some sponsors are not transformational leaders – it is perfectly possible to be the leader of a business function without ever having to have embraced transformational change or having to provide leadership in challenging situations. Often, the first time someone sponsors a major programme is when they are asked to transform something – and transformation training is seldom covered on executive development programmes. So, what are the characteristics one might find in a transformation with weak sponsorship? And how might you spot and mitigate them?
The sponsor does not understand their role and the commitment required to discharge it. Their expectations are out of line with the activities expected of them and they are failing to support their team
Progress is hampered because the sponsor requires increasing amounts of data before decisions can be made leading to ……
……a lack of decision-making, causing delays. Even if the information exists, prevarication over decisions build frustration and prevents progress being made on critical items. Often this will become manifest through reviews of progress being made versus the budget expended to date, with the programme being over budget and late from the early months
Transformation team lack vision / direction: often there is no clear communication of the expected transformation outcomes, the target operating model, its value or how it will be achieved. One particular problem that arises is when there are to be staff cuts and redundancies – a strong sponsor will be up-front and communicate this where possible; weak ones tend to want to put this message off as long as possible but, of course, everyone finds out informally anyway – which can make staff management far harder
Significant political / stakeholder issues: a strong sponsor will already possess the respect of their peers, minimising political interference, whereas a weak sponsor will find their transformation constantly disrupted by stakeholders who do not feel engaged or informed
The sponsor is too busy: executive sponsors are typically at the CxO+1 level of major organisations – therefore, they are already so busy with executive commitments that it is challenging to commit time to a major transformation. When a sponsor underestimates the time commitment required, or is pulled in other directions by executive commitments, their essential contribution is eroded
Programme management team deputising as sponsors: the concept of the ‘delegated sponsor’ is often used when the ‘real’ sponsor does not have the time to provide leadership. In this case, the programme leadership must visibly be given the authority and mandate to act on the sponsor’s behalf, and have a hotline to the sponsor for issues and risks
3rd party deputising as the sponsor: one step further than the ‘delegated sponsor’ is the ‘outsourced sponsor’, where a 3rd party provides all the programme leadership and direction. If this is a large consulting firm, care must be taken to maintain internal control over the scope and the budget – there is an inevitable tension between progress and profit in this approach
What if I am the weak sponsor?
It is painful to admit but some of you reading this might recognise yourself in the manifestations of weak sponsorship. However, never fear, Claverton are here to help you - there’s no reason your transformation programmes should contribute to the failure statistics. Here are some tips to help you:
Be clear about your role and the time commitment it will require
Ask someone to write you a job description for a Sponsor and familiarise yourself with it. Tip: talk to other people who have sponsored complex change about how they did it.
Work out and agree the percentage of your time which will be allocated to the transformation programme – challenge yourself about whether this is achievable given your existing commitments. Tip: If it isn’t, you need to do something differently – either to free up time or to hire some support. Agree your minimum weekly time commitment to the transformation team and commit that time even if there isn’t an obvious use for it.
If you have no choice but to delegate elements of your sponsorship role, make sure it is to an empowered, capable member of your team. Tip: if you must delegate sponsorship, do it visibly and hold a town hall meeting to explain why you are doing it and what it will mean for all involved.
Merely sitting with the transformation team during the week and being approachable for questions, or just a coffee and a chat, will help to build your credibility as a leader who cares about what the team is experiencing. When the going gets tough, the team will reciprocate if you have been visible and supportive of their needs
Not everyone is cut out to lead change
If you are unsure about it, hire yourself an experienced transformation confidant to work alongside you and take on some of the burden. The right person will galvanise you, help you to advocate the transformation, and lead the team day-to-day. Such a person will never publicly contradict you over a matter of importance, will coach you and help you to lead when necessary, and can provide leadership on your behalf when you are not around. Tip: it is important to find someone who understands how to achieve your objectives but is not afraid to challenge you – someone who says ‘yes’ to you will be of limited help
You may need more than one person to help you as there is a great deal of heavy lifting throughout the transformation lifecycle. Tip: large-scale transformations need a strong PMO to plan, manage, support and control them and 3rd party contracts. Build this team alongside a strong confidant
Have a clear strategy and communicate it, even the uncomfortable parts:
In the same way that you need an overall business strategy, and strategies for operating units and business functions (e.g. Finance, Technology, Marketing, Sales, etc.) transformation programmes need a strategy too. Often, they cut across and impact functional domains and directly reflect multiple components of business strategy. Tip: Build a strategy that justifies the outcomes of its implementation in terms of how they will improve business performance
Your ‘Transformation Strategy’ should be clearly articulated, documents, socialised and as widely communicated as possible. Tip: The more people you involve in its creation the stronger it will be, as will the buy-in of the delivery team and key stakeholders.
Don’t hide adverse impacts on people’s roles – it will come out sooner rather than later and by tackling it up-front you seize the opportunity to motivate and incentivise the people you need – even if they are leaving the organisation. Tip: If there is bad news for some people, address it head on
Successful transformations use your best people
It is crucial to generate support from within your own team for your transformation outcomes. Weak sponsors will just ‘tell’ staff to get on board, often without involving them. Tip: put your best people on your transformation programme from the early strategy phase and give them a stake in the future.
Incentivise your closest people appropriately: even if you hire a team you trust and who have your best interests at heart – they need to succeed only if you succeed. Consider how best to incentivise them. Tip: use criteria-driven completion bonuses as a powerful force for success
When you’ve dispensed with the heavy lifting, focus on your stakeholder relationships. Build upon the strong ones and utilise them to minimise the impact of the weak ones. Transformation programmes need a strong Executive Steering Committee: use your strong relationships to keep any naysayers on board and under control. Tip: keep your friends close and your enemies closer. It is important that the power of positive stakeholders is continually marshalled to keep negative stakeholders firmly in their box.
Conclusion
Weak sponsorship can undermine a business transformation more thoroughly than any other single factor. To avoid the resulting pitfalls, equip yourself and your team with the right expectations, a great transformation strategy and the best people before you take on the role.
Contact Claverton
To talk to us about your transformation needs please visit our website (www.clavertonconsulting.co.uk) or or email us at info@clavertonconsulting.co.uk.
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