corporate development and it - ethz.ch · (innovation, product range/breath and depth,...
TRANSCRIPT
Part 6
Corporate Development – Planning Process and Project Portfolio Management
Thomas GutzwillerSept., 2017
Corporate Development and IT
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Long-term Middle-term Short-term
TIME HORIZON
Products/services (innovation, product range/breath and depth, manufacturing depth/sourcing)
Regional markets/market entries
Distribution structure
Orientation to customer segmentsSTR
ATEG
Y
Process architecture/ business modelArchitecture ofinformation systemsProject portfolio
Projects
Incremental changes/maintenance
Operations
Strategic planning
Implementation planning
Implementation
From strategic planning to operations
3| Thomas Gutzwiller - Transformation| Part 3
TIME HORIZON
Products (innovation, product range/breath and depth,manufacturing depth/sourcing)/services
Regional markets/market entries
Distribution structure
Orientation to customer segmentsSTR
ATEG
Y
Process architecture/ business modelArchitecture ofinformation systemsProject portfolio
Projects
Incremental changes/maintenance
Operations
Strategic planning
Implementation plan
Implementation
From strategic planning to operations
Long-term Middle-term Short-term
4| Thomas Gutzwiller - Transformation| Part 3
TIME HORIZON
Products (innovation, product range/breath and depth,manufacturing depth/sourcing)/services
Regional markets/market entries
Distribution structure
Orientation to customer segmentsSTR
ATEG
Y
Process architecture/ business modelArchitecture ofinformation systemsProject portfolio
Projects
Incremental changes/maintenance
Operations
Strategic planning
Implementation plan
Implementation
Strategy management process Project development process
Operations Incremental improvement process
From strategic planning to operations
Long-term Middle-term Short-term
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Question:
How to plan a company's resources?
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Resource allocation
RUN CHANGE
Resources for daily business
Incrementalimprovements
Programs/projects
Control through business units Control through executive board
Operations Transformation
Investments
Control of resource allocation
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Project portfoliomanagement
External projectmanagement
Internal projectmanagement
Active and planned projects
Project A Project B
Sub Pro-ject A1
SubPro-jectA2
Phase 1
Phase 2
Phase 3
Activity
• Development and control of all active and planned projects
• Planning and managementof project teams and activities with the help ofa project process model(Beer Formula 1)
• Controlling of single projects (black box)
Levels of project management within CHANGE
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... Is oriented on company management targets and considers all change activities
... Arranges and prioritizes the projects and enforces the idea of manageable projects
... Aligns the personal and financial resources
Project portfolio management
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BOTTOM UP STREAM
Pushed from a business unit point of view, mostly for elimination of certain organizational deficiencies.
Part of the incremental development stream.
TOP DOWN STREAM
Out from the company’s strategy. Pushed from the executive team.
Part of the strategic/transformational development stream.
Often project initiatives are contradictory.
And often resources are not enough tosatisfy all projects.
Projects come up top down and bottom up
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• Step 1:
Differentiation of company wide strategic projects/programs and business unit specific initiatives
• Step 2:
Determination of resource allocation for individual business unit according to strategic priorities
• Step 3:
Within business unit specific projects business cases are to be created to identify projects with the best cost-benefit-relation
Prioritization method
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Responsibility of management in respect to resource allocation
Shared responsibility of exec. board
Busin. Unit 1
Individual responsibility
Busin. Unit 2 Busin. Unit 3 …… n
CH
ANG
ER
UN
Changing the business model
Running thebusiness model
Prioritization method
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Responsibility of management with respect to resource allocation
Busin. Unit 1
Individual responsibility
Busin. Unit 2
Individualresponsibilityfor operationalcost/profit
Busin. Unit 3 …… n
CH
ANG
ER
UN
Strategic programs/projectsD
esig
ning
inst
rum
ents
for c
hang
e
= Resources for strategic programs/projects= Resources for business-unit specific programs/projects and maintenance
Shared responsibility of exec. board
Prioritization method
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Urgency
Low Medium High
P1
P2
P3P4
P5M
ediu
mH
igh
Prioritization method – Importance/urgency grid
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Low Medium High
Med
ium
Hig
hP1
P2
P3P4
P5
Urgency
Prioritization method – Importance/urgency grid
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Steering committee
Project committee
Project manager
Sub project-manager
Sub project-team
Projectmanager
Project committee
Sub project-manager
Sub project-team
Projects
...
Project owner
.....
Project owner
Program manager
Organization of major projects/programs
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Case Study "ROTOR Gourmet"
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„ROTOR GOURMET S.A.“ is set in the catering industry and runs more than 1’000 canteens in France. To ensure future profitability the group has to optimize its logistic.
The objectives of the corporate transformation program “Optimization of sourcing and distribution” (OSD) are:
(1) Empowerment of buying department to bundle the flow of goods and the information flow more efficiently and to optimize the number of suppliers as well. Result: 5% reduction of purchasing costs
(2) Relief of the canteens in purchasing and implementation of standardized menu plans
(3) Optimization of the whole supply logistic for the canteens
(4) Implementation of a new intranet supply system for the canteens
Organization of major projects/programs (Case “ROTOR GOURMET”)
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Question:
How to organize the transformation program?– Which are the appropriate projects?– Which are the appropriate project committees?
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Organization of major projects/programs(example project OSD of ROTOR GOURMET S.A.)
Steering Committee
Program Manager
SP OperationsSupport
SP Front System
SP Purchasing SP BackendSystem
SP Finance/Accounting
SP Training/Introduction to
Org.
Project Office
SP = Sub Project
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Organization of major projects/programs(example project OSD of ROTOR GOURMET S.A.)
Project committee„Business practices“
Project committee„IS/IT“
Project committee„Rollout“
1 Proj. M.
1 Project Owner 1 Project Owner 1 Project Owner
Steering Commitee
Project Office
Program Manager
SP OperationsSupport
SP PurchasingSP Finance/Accounting
SP Training/Introduction to
Org.
SP Front System
SP BackendSystem
1 Proj. M. 1 Proj. M. 1 Proj. M. 1 Proj. M. 1 Proj. M.
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Each transformation program is overlookedby the steering committee.
Steering committee…
• Groups multiple thematic similar, common planed and conducted projects into programs
• Governs as top board the project portfolio
• Is composed basically by the company’s executive board, the CIO and the program manager
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Each project has a project owner.
The Project owner…
• Develops the project request together with the project leader and theprogram manager
• Is responsible for the compliance – with the planned costs– the planned time line and – the realization of benefits out of the project
• Manages the project committee and thus guides the project inrespect of business benefits, in respect of time and financial resources
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For each project a project committee is defined.It is an essential instrument for “Psychology of transformation”.
The project committee...
• Observes project procedure, costs, benefits and deadlines
• Approves project results
• Is composed by – the project owner, – representatives of the concerned business unit (middle management) and – the project leader
• Represents two roles: – review committee and – conflict committee
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Phase end report
Review committee
Activities of project phase
next phase Project breakup
OK
not OK(to be revised)
not OK(recommendation)
Periodic project status report
Project committee as review committee…
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The program manager reportsthe steering committee.
The overall program manager...
• Is represented in the steering committee and has to report to it, prepares its agenda, performs its follow-up and pushes its decisions
• Is represented in the project committees (project supervision) and ensures the quality assurance regarding cross-project standards
• Coordinates all cross-project concerns and plans roughly the individual projects
• Leads the project leaders and observes the ongoing progress of individual projects
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Each project has a project leader.
The project leader…
• Observes and leads the project activities (internal project management) andensures the compliance of cost and deadlines
• Coordinates and leads the team members respectively – if existing – the sub-project leaders
• Represents the project and its results towards the project owner, the project committee (project supervision) and the program manager
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Business Unit specific steering committee
Steering Committee strategic programs/projects
Line organization of Business Unit
Steering committees to control change
Responsibility of management in respect to resource allocation
Shared responsibility of exec. board
Busin. Unit 1
Individual responsibility
Busin. Unit 2 Busin. Unit 3 …… n
CH
ANG
ER
UN
Changing the business model
Running thebusiness model