1. 1. ..teach a man to fish
2. 2. Why do 30% of IT projects fail? Why do 70% of CEOs get the sack? They cant manage the so-called soft stuff, people and change According to a Fortune 500 cover story, nine out of ten organisations fail to implement their strategic plan for many reasons: 60% of organisations do not link strategy to budgeting 75% of organisations do not link employee incentives to strategy 86% of business owners and managers spend less than 1 hour/month discussing strategy 95% of workforce does not understand their organisations strategy
3. 3. How many have worked on failed projects? Was there a Benefits Realisation Plan? Was there an active Project Sponsor? Was the BR Plan aligned to the Organisations Strategy? Did the business users understand the project goals and intended benefits?
4. 4. Bid/Project BskyB won its five-year legal battle against EDS after judge Vivian Ramsey accepted BSkyBs claim that EDS had misrepresented its capabilities in selling a CRM system. EDSs new owner HP will seek leave to appeal. BSkyBs lawyers, Herbert Smith said, EDS will have to pay a minimum of 200 million which is several times the cost of the original system.
5. 5. Project Establish a Shared Service infrastructure and culture between many disparate branches and agencies of a state government organisation. Commenced in 1996 with establishment of initial Shared Service structure with an expansion commenced in 2002 and audited in 2004, found; No measurable Benefits Plan Unreal expectations of success Sponsorship transparent (meaning see-through) and not senior enough to withstand resistance to the level of change required
6. 6. Merger Two distinct and separate (warring) cultures Two separate sets of infrastructure and applications (mines better than yours) Losses: o Company posted a $350 million loss for 2011 and another $131.1 mil for the first half of 2012. Parent company EBITDA dropped 20.9% to $112m o In the two years since July, 2012 the company has lost over 1 million customers o Announced plans to slash 500 jobs by November, 2012 with further cuts to come
7. 7. Bid/Project Replace existing HR/Payroll solutions across 4 separate departments Create a Shared Service concept for all backoffice applications/services Blend 4 separate departments
8. 8. WL Gore Realised the value of organisation units not larger than 200. Gave each employee day each week of dabble time. Gore has delivered 50 years of steady earnings growth without a single annual loss. Gore has been included in every one of Fortunes annual rankings of the 100 Best Companies to Work For.
9. 9. Behemoth - about to become irrelevant 1999 and 2000 produced 1% growth in revenue despite leading patents (12,773) and IBM Labs successes (router and relational database) Moved Emerging Business Opportunity (EBO) innovation projects outside the company Incubated EBOs until mature, self-sufficient Incorporated EBO projects into parent company Change in culture with senior IBM managers now moving into innovation projects Started in 2000 and by 2005 there were 22 new businesses delivering $15 billion in annual revenues. In 2007 IBM revenues of $91 billion and over 320,000 employees
10. 10. Common Cause creates Community Empowered Teams Open-book Financial Information Share the Equity Senior Execs pay capped at 19 times company average. (Average Fortune 500 company is 400-1) 93% of stock options granted to non-execs
11. 11. Empowering and engaging people are critical to success. Valuing critical thinking processes throughout your organisation. Harness the power of everyone, not just the few. Communicate using language and tools that each audience understands. Use pictures/symbols rather than words. Put in place tools, people and measurements that ensure execution to current strategy.
12. 12. 2005 Towers Perrin surveyed 86,000 employees in over 16 countries. Asked various questions about how engaged they were in their work. Found the vast majority of employees across all levels in an organisation are less than fully engaged in their work. A mere 14% of employees around the world are highly engaged while 24% are disengaged and the rest reside somewhere in the middle. Roughly 85% of people at work around the world are giving less of themselves than they could.
13. 13. Benefits Realisation Management can make Project/Programme/Change Management much easier and more effective Benefits Realisation Management when tied to Strategy ensures the organisation is always executing to their current Strategic Plan
14. 14. No projects, mergers, new products/services or opportunities to commence without an approved Business Case and A clearly articulated Benefits Realisation Management Plan that MUST be linked to Strategy Communication of BRP must be tailored for each intended audience Business/Project Sponsors must be able to articulate the BRP for any audience Any change in Strategy or Project goals must be measured for impact on BRP (using a Benefits Traceability Matrix)
15. 15. A Benefits Realisation Maturity Model Index (BRMMI) Similar to the CMMI (Capability Maturity Model Integration) developed by Carnegie-Mellon. Benchmarking organisations on a Maturity scale with Benefits Realisation capabilities rated against others in similar industries/practices worldwide even!
16. 16. Predict today and lose tomorrow? Ellen J. Langer I think there is a world market for maybe five computers. Thomas Watson, Chairman of IBM, 1943 There is no reason for any individual to have a computer in their home. Kenneth Olsen, President and Founder of Digital Equipment Corporation, 1977 Television wont be able to hold on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night. Darryl F. Zanuck, Head of Twentieth Century-Fox, 1945 Man will never reach the moon regardless of all future scientific advances. Dr. Lee De Forest, inventor of the vacuum tube, 1957 There is no likelihood man can ever tap the power of the atom. Robert Millikan, Nobel Prize in Physics, 1923
17. 17. As we move toward a world in which economic value is increasingly the product of inspiration, mission and the joy that people find in their work, the sorts of management innovation that will be most essential are precisely those whose benefits will be most difficult to measure an important fact for every management innovator and every CEO, to keep in mind. Gary Hamel/Bill Breen in The Future of Management (italics and bold are mine)
18. 18. Teach a Man to Fish..