B U S I N E S S T R A N S F O R M A T I O N A N D E X E C U T I V E S E A R C H
The Strategic Value of Transformation Road Maps
Possessing a great transformation vision and strategy, and being able to execute it effectively, are two very different things. Organisations compete fiercely to develop market-leading strategies in their sector, utilising an advisory market that is worth billions of dollars per annum, but, even with that investment, a large percentage of transformation programmes fail to deliver the benefits anticipated at the outset (upwards of 50% across a variety of surveys in the last decade).
Companies continually demonstrate that a great strategy, without the ability to prioritise by value and deliver reliably, is akin to sitting on the starting line of a race in a Formula 1 car with slick tyres on a flooded track. You have vast horsepower under the bonnet but no effective way of transferring it to the road.
Claverton’s ‘Transformation Execution Excellence Framework’ includes several proven techniques geared specifically to helping organisations convert their ambitions into reality. One such technique is the use of a Strategic Transformation Road Map (STRM).
What is a Strategic Transformation Road Map?
An example of strategic transformation road map is shown below. Transformation programmes tend to be large, complex, expensive and risky…..but if done properly, they will generate huge value. An effective roadmap should articulate the journey your programme will embark upon and highlight where significant value will be achieved. The STRM is:
-
An articulation of the transformation initiatives needed to achieve your strategic objectives over time
-
A flexible framework for decision making, enabling you to consciously decide whether to make strategic investments or pragmatic choices
-
Adaptable, to accommodate changing commercial & business needs
-
Aligned to your Target Operating Model and reflects the importance you give to key aspects of your business
-
A way to measure whether you are doing what you set out to do
-
A method for focusing all participants on benefits realisation
-
Responsive and evolutionary, it reflects the inevitable change that happens in your business over the period of your journey; it is a “living document”
-
A communication vehicle – your ‘transformation on a page’ that helps every stakeholder understand the why, what, how and when of your transformation journey
Why does a Strategic Transformation Road Map (STRM) add value?
The Standish Group Chaos Report (2018) found that only 29% of project implementations with a technology element are successful, and 19% are considered utter failures. The clear indication is that the majority of transformations do not deliver the value they were expected to.
One of the key reasons driving failure rates is that there is pressure to start transformations programmes before they are truly ready. Often, the vision and strategy (the ‘why’ and ‘what’) are in place and the instruction is given to just ‘Go!’ either without an STRM or before it has been thoroughly tested to be able to cater for an outbreak of reality (the ‘how’).
The benefit of the STRM manifests itself throughout your transformation period. Some examples of the value it adds include:
-
As a statement of intent, it paints a clear picture of your ambitions with which to engage the rest of the C-suite and your wider stakeholder community
-
Reflecting the initiatives you have prioritised by value; your teams know what the organisation views as its imperatives and can therefore easily buy into the future vision
-
As a communication tool it is highly visible and valuable; when you convey positive, galvanising, accompanying messages, a framework for teams’ and individuals’ contributions is set
-
At a programme level, it may unlock synergistic benefits that you may fail to identify when looking at investments in isolation
-
Presenting the natural order of things, in other words, the activities, dependencies, risks and mitigations you must manage internally and externally in order to be successful
-
Predicting how you will deliver results against the targets you have set, providing the opportunity to ask ‘what if?’ and change or take corrective action as required
-
It helps you be pragmatic whilst still retaining sight of the journey as a whole; even if matters outside your control influence events, you can quickly flex and then draw people back to your vision, goals and objectives
Ultimately, an STRM is a dynamic articulation of transformational change – it brings your Operating Model to life and offers a sustainable delivery tool that focuses people on successfully delivering the business outcomes required.
STRM Considerations
Here are some key factors to consider when preparing your STRM:
Top down vs Bottom up
It’s a good idea to startthe preparation of your STRM top-down, running a strategic planning session to lay out the core building blocks and benefits. To complete the STRM, though, it’s imperative to make sure that your bottom-up planning is both realistic and reflective of the road map – otherwise it’s the road map that changes rather than the detailed plans.
Quick wins = Long Losses
Many transformation programmes face significant pressure to deliver quick wins, or show some delivery credibility to prove that they can generate some benefits. However, that often comes at a price, that price being a dilution of thought, planning and working through the risks and issues. Often, the result of quick wins is big trouble down the line; don’t lose focus on the big picture in exchange for some quick tactical gains.
The STRM is everyone’s responsibility
Your team will buy into the transformation journey if they helped to create it, meaning they will take personal responsibility and own road map activities and outcomes more readily than if they are simply told to execute a plan. Engage as many people in the creation of the STRM as you possible can, gather their perspectives and use them to hone your transformation proposition. To build on this, you will have no doubt identified your top internal talent and have given thought to their future – make sure they know that and your top team will galvanise everyone else.
Map the benefits
It can be tough to relate benefits to a transformation road map because, often those benefits involve people losing their jobs which raises all sorts of questions and concerns. But, guess what? People aren’t stupid – they know that change means they may be at personal risk, so it’s much better to be out in the open early so you can deal with all aspects of people change, rather than pretending it doesn’t exist until your team start pulling against you. A failure to deal with this key point is one of the main reasons behind implementation failure rates of over 70%.
Use independent expertise
One tip is to unlock the power of your people via external transformation expertise which can facilitate events that will quickly and simply build an effective Road Map. This approach injects external experience and advice from independent people who have no vested interest in any particular outcome, but who do have broad, strategic perspectives and familiarity with how to initiate and implement transformation effectively.
Pitfalls and how to avoid them
A well-produced road map is one of the cornerstones of any transformation programme. However, it’s important to recognise that a road map can also convey the wrong messages if it doesn’t capture your journey in the right way. Here are a few common pitfalls which you should look out for when preparing your STRM:
-
Unintentionally undermining your strategic goals, for example, by undertaking too many tactical initiatives because they are tagged as ‘quick wins’
-
Being overly-ambitious and biting off more than you can chew, for example, committing to too much work or tackling complexities that are poorly understood
-
Failing to communicate effectively to stakeholders when their pet initiatives do not appear on the road map. Everything should be prioritised by value which means that all stakeholders need to understand, and accept, how ‘value’ is defined
-
Creating unnecessary and/or complex dependencies - complex portfolios are harder to deliver than simple ones so never forget the KISS principle - ‘Keep It Simple Stupid’
-
Failing to align the road map to your culture or delivery capability. If your organisation has found it challenging to deliver initiatives in the past, what has changed so that it will be different this time around?
-
Treating the production of the road map as a one-time deal is a mistake. It is an ongoing process, particularly if it extends over multiple years. It is important to agree how things become part of the road map and how things can be de-prioritised or stopped if they are no longer regarded as relevant
A road map is a great tool for socialising your intentions. Just remember that other people may have different intentions - do not become too emotionally attached to your road map before you socialise it for the first time! Other people will almost certainly want to change it before they will buy into it.
How can I measure progress?
The activities on the road map must be measured using a metrics-driven approach to ensure success. Common measures centre around demonstrating that the road map is delivering value:
-
Benefits Realisation Plans: which ascribe the benefits generated from the road map to named individuals who, in turn, are accountable for their delivery
-
Risk Profiling: which periodically assesses the delivery risks associated with the road map and recommends action before risks crystallise into issues
-
Regular Health Checks: which examine each active project on the road map to ensure that it remains on track
-
Earned Value Analysis: a project management technique which examines the value generated against the progress a programme or project has made
How should I convey our road map message?
Communicating the road map has its own particular pitfalls:
-
High-level dates are often taken at face value; be clear when they are not firm or could be affected by change
-
People view it as purely a ‘plan’ - i.e. the items on it will be treated as fixed as opposed to a ‘guide’ reflecting that a level of fluidity is likely to be required
-
It could quickly be viewed as shelf-ware, so communicate, communicate and communicate using the road map every time
-
Develop it withstakeholders, don’t do it to them! The development process will generate stakeholder debate and buy-in
Once the Road Map is fully operational, it is important to keep briefing executive stakeholders as buy-in and focus tends to wane over time. Certainly, you should not rely upon Steering Committees to communicate your messages upwards nor rely upon the PMO to get yourmessage across effectively.
And Finally........
A comprehensive road map provides a framework within which your business can work effectively and generate clearly articulated successes. Building one in the right way will mobilise and invigorate your team, creating a clarity of purpose which is conducive to a high-achieving culture of successful delivery. A STRM can create:
-
An easy way to demonstrate strategy becoming reality
-
A compelling communications mechanism
-
A method for establishing and displaying clear priorities
-
A single message for everyone to get behind
-
A participative process that can continue over time, continually generating buy-in
-
A simple mechanism to measure the value of your investment in a project portfolio
To find out how Claverton can help you to build an effective Strategic Road Map please contact us at info@clavertonconsulting.co.uk or call us and talk to one of our highly experienced transformation advisors.