Business Transformation

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“As-Is” to “To-Be” Transformation & Transition Planning Researched and Developed Especially For Participating Agencies WASHINGTON STATE DIGITAL GOVERNMENT APPLICATIONS Academy May 2001 in the Transformation Involves Transformation Involves Transformation Involves Transformation Involves Transformation Involves May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 2 Dynamic & Iterative Approach 2 To-Be Chunking & Prioritizing Releases 1 As-Is Product Released 3 Transition Plan May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 3 3 Galvanizing Points Involved In Transformation  Your current / existing “As-Is” architecture The desired / targeted “To-Be” and   Transition Plan We’ll be going over each area in some detail May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 4 2 Outcomes for Today? 1 To-Be Chunking & Prioritizing Releases 3 As-Is Transition Plan Product Released  Understand how Transformation:  involves your “As-Is” and “To-Be”  is applicable for any IT or Business application  entails understanding the Relationship between things   Understand stages and activities involved in Best Practices approach Understand why this approach provides a critical success factor May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 5 2 Defining an Approach for Transformation 1 To-Be Chunking & Prioritizing Releases 3 As-Is Product Released Transition Plan Our Transformation lifecycle involves and develops five types of deliverables 1. 2. 3. 4. 5. Current (the “As-Is”) Candidate (the desired system “To-Be”) Break “To-Be” into “chunks” or releases and prioritize Transition Plan(s) from current “As-Is” to the “To-Be” Charter, Tactical Planning, Project Planning, Schedule May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 6 The “As-Is” and “To-Be” 2 To-Be Chunking & Prioritizing Releases 1 As-Is Product Released 3 Transition Plan May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 7 What We’re Talking about Between  the “As-Is” and the “To-Be” is the equivalent to: Blueprints (and just like blueprints they) • Show components of your system • Show the relationships between them as to • Layout and who is involved in doing what • Creates “Institutional Knowledge” • Provides a tool and cornerstone for Change • Involves getting “buy-in” from stakeholders So . . . May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 8 Why Do We Need Both an “As-Is” & A “To-Be” Model?     2 To-Be Chunking & Prioritizing Releases 1 3 As-Is Product Released Transition Plan  To clearly communicate a solid approach and business benefits to secure Executive Sponsorship To Establish a Point of Reference, to Establish Where We Are ! To avoid missed steps that could jeopardize project success To manage the impact of change to organizations, people and processes Provide thorough and effective Transition Planning from the “As-Is” to the “To-Be”  Package the changes into chunks or releases  To sequence or prioritize releases May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 9 Models are . . .     Used to investigate possible improvements in the real “system” (business processes and the included components which make up a process) Also used to discover the effect of different policies on that system. Models help us to understand the behavior generated by the various components of a system. In Management Science, models of various types are used to represent a system. The simplest type of model is probably a scale model. For example, scale models are used to plan the layout of warehouses, factories, offices, etc. However, these models are static, they cannot show how the various factors dynamically interact, and they are not very flexible not adaptable. When you consider a model in your organization . . . Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 10 May '01 2 To-Be Analysis Involves Considering  Chunking & Prioritizing Releases 1 3 As-Is Product Released Transition Plan  Components affected including:  Organization  Process  People  Management Controls  Technology  Facilities  Products, Services  External Agents Note that this applies to both your “As-Is” & “To-Be” Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 11 May '01 2 Process Centering Versus Process Redesign  To-Be Chunking & Prioritizing Releases 1 3 As-Is Product Released Transition Plan Process Centered is:  Horizontal orientation, focused on end-to-end, cross-functional activities  Challenging the underlying assumptions about the way we conduct business  Smooth integration of processes across the org  Creating an environment to support and reinforce process behavior • • • • • • May '01  BPR  Vertical orientation, discrete functional areas • Generate (sales), process (customer service), fulfill (production), distribute (logistics), bill (accounting), and post (finance) alignment of strategy culture performance measures organizational design skills systems  Operate as a fragmented, unrelated set of activities  Often with conflicting incentives, hand-offs, rework, errors and delays  Believing that technology is the greatest investment and answer when in actuality the greater investment comes with making changes and creating new ways of working Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 12 Breaking From The Equilibrium From Traditional to BPR Process 1 Dept A Dept B Dept C Process 2 Process 3 Traditional - Stovepipe Process / BPR Centric In most businesses today, an event like obtaining a business license goes through a series of vertically organized departments. As a result, organizations may have a highly fragmented view of: 1) customers and 2) end-to-end business. May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 13 From BPR to Capability-Driven Process 1 Process 2 Process 3 Capability 3 Process / BPR Centric Focuses solely on Process without much consideration for other value-add capabilities May '01 Capability 1 Capability 2 Capability-Driven Focuses beyond Process to that of Enterprise-wide, value-added opportunities (looks for leveraging) Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 14 From Capability-Driven to Alliance-Based Capability 2 Capability 1 Capability 2 Capability 3 Capability-Driven Capability 1 Capability 3 Alliance-Based Focused on newly forged Alliances and Partnerships for Enterprise-wide solutions, capabilities and Process Handoffs May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 15 Process Maturity Model Capability 2 Process 1 Process 2 Process 3 Traditional Stovepipe Process / BPR Centric Capability 1 Capability 2 Capability 1 Capability 3 Capability 3 Process Centric Alliance-Based Process Centering and Breaking from the Equilibrium is A Conscious Effort May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 16 2 To-Be A “Best Practice” Profile -- Chunking & Prioritizing Releases 1 3 As-Is Synopsis -- Start Fresh Start with a clear slate Approach - A project isn’t always what you may think it is. Often organizations approach with a project that deals only with the surface result of the real problem or opportunity. Transition Plan Product Released Synopsis -- Set Outrageous Goals Wider is better. Approach - Assume the project’s reach is not limited to one department. Case a wide net and bring in players with different perspectives (people who don’t typically cross paths -- accounting with lawyers). May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 17 2 To-Be Process Centering -What It Means         Chunking & Prioritizing Releases 1 3 As-Is Product Released Transition Plan Think and manage in terms of cross-functional processes that were previously invisible Creating value as the process moves across the organization and end in a business outcome valued by the customer Assessing the gap between the current and desired business performance Redesigning the processes from the customer’s perspective Eliminating activities that don’t add value Creating a shared cross-functional process (Agency & Agencies) Designing process across enterprise boundaries Involving new partnerships and totally new process handoffs May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 18 2 To-Be A “Best Practice” Profile -- Chunking & Prioritizing Releases 1 3 As-Is Synopsis -- Incremental Advancement Consider replacing your current paper (license, permit, form) interface with an on-line (internal) interface. Transition Plan Product Released Benefits  It’s simple  Manages risk  Allows demonstrating the proof-of-concept in a well controlled, internal environment  Processes are untouched, just the user-interface is modified  The scope of the project can be expanded to include easily managed process changes.  With experiences gained, the program can move on to engineering processes that cross agency boundaries. May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 19 2 To-Be A “Best Practice” Profile -- Chunking & Prioritizing Releases 1 3 Product Synopsis -- Steps to a new “To-Be” Released Envision what could be in a perfect world. Then, assess against the real world or current “As-Is.” This gap analysis is used to reach the desired state. Approach  How can we add compelling value to our current and future customers? To our staff?  How would we design it if we’re just starting a business, a digital business?  Think of E-Commerce space as jointly owned: where can processes in your business transaction have new process handoffs? Where can participation with others occur (real-time, e-mail, FAX) or newly align with other internal systems? As-Is Transition Plan May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 21 2 To-Be Chunking & Prioritizing Releases “As-Is” Exercise   1 3 As-Is Product Released Transition Plan Group discussion of Components (Events & Participants) relevant to your “As-Is” model What’s the value to:  Current “As-Is?  To a Future “To-Be?   Reference: “As-Is Business Transformation” Word.doc (ATOM) 15 minutes May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 22 Worksession & Intermission 2 To-Be Chunking & Prioritizing Releases 1 3 As-Is Product Released Transition Plan May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 23 Reconvene: “As-Is” Worksession     We left off at discussion of Components (Participants and Events) involved in your today’s “As-Is” situation. Asking: “How does each Participant add value to an Event Asking: “How does any Event add value to our end product / service?” A critical success factor is to apply this same activity and do it at a detailed level with your desired “To-Be” architecture What’s It Mean To You?  This will result in your Future Set of requirements May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 24 Transition Planning Best Practices 2 To-Be Chunking & Prioritizing Releases 1 As-Is Product Released May '01 3 Transition Plan Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 25 A Transition Plan Involves . . .  Categorizing TODAY’s OPERATIONS Today • Maintaining the equilibrium • Manual processes, manual forms • Tweaking Business Plans • Variable processes & tools • Limited hours of service Changes NEW OPERATIONS Future • Common and integrated system, tools • Extended Help Desk needed • Remake the Department • Use E-Form, E-License to create, innovate & transform business • Figure out how to exploit technology to boost % customer satisfaction Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 26 • __% customer satisfaction May '01 The Next Slide Identifies What to Pay Attention to In Categorizing Your Changes     There are always opportunities to drill down to lower levels Note the importance to identify the differences between the “As-Is” and the “To-Be” Describe the changes required to evolve you current “As-Is” to the targeted “To-Be” Categorize the changes by the components affected (by resource, by software, procedures etc.) May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 27 Categorize the Changes Current State A S I S T O B E Desired State Type name here Type title here Type name here Type title here Type name here Type title here Type name here Type title here Organization Process Products People Controls Facilities Technology – Identify the differences between the “As Is‟ and „To Be‟ – Describe in terms of the changes required to evolve the current to the target – Categorize the changes by the organizational component affected. May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 28 2 To-Be Chunking & Prioritizing Releases Transition Plan Exercise  1 3 As-Is Product Released Transition Plan Separate into your teams  Brainstorm specific changes between your “As-Is” to your “To-Be” for your project  Ready to report your findings  15 minutes May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 29 Reconvene Transition Plan Worksession   You just went through an exercise on identifying changes between your “As-Is” and your desired “To-Be” Had you identified:  New staff skills or new staff required?  Help Desk requirements (7x24x360)?  New Training requirements?  Changed roles of existing staff?  New interfaces between your new application and a database, middleware, datawarehouse?  New procedures or policies required? The next foil provides a reminder to . . . May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 30 Balance Degree and Pace of Change Need to Change    “To- Be” Process Cost Change Success Triangle Org. Health Benefit Performance Improvement  What results must you attain first? What is the timeframe for the attainment of the results? What are the dependencies between the work? How much change are you prepared to accept?  Impact on employees/business  Impact on suppliers/customers Services Delivery    “Need to balance desired outcomes against organizational cost (dollar, org health and impact to existing work) and resulting benefit to customer” May '01 How many resources are you prepared to make available? Which business specialists are you prepared to make available? How much risk are you prepared to consider? Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 31 Transition Planning Best Practices Checklist:  Plan transition based on delivery of “chunks” of “To-Be” process which deliver organizational benefit  Take Integrated Implementation approach (process, controls, people, technology, etc.)  Assess trade-offs between Benefits, Costs and Risks along with Timing  Develop individual project proposals for incremental releases  Invest in transition monitoring mechanisms up-front (validation, feedback, transition team)  Know change goals, change agents and change sponsors  Communicate change  Ensure proper hand-off between planning and execution  Conduct multiple iterations to achieve desired scope and to unearth hidden requirements  Foster innovation with an iterative process May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 32 2 To-Be A “Best Practice” Profile -- Chunking & Prioritizing Releases 1 3 As-Is Synopsis -It’s not enough to just do a Transition Plan. You will need to communicate it Early  Often and  Consistent Transition Plan Product Released At the: 1) Executive Level -- 2) Management Level -- 3) Staff Level  (What’s it mean to them? What’s New, Changed, Going Away?) Benefits  Proactive  Mitigates impacts and risks  Facilitates acceptance and buy-in May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 33 Dynamic & Iterative Approach 2 To-Be Chunking & Prioritizing Releases 1 As-Is Product Released 3 Transition Plan Outcomes? Feature Set of Requirements Iterations Project Planning May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 34 Up To Now We’ve Been Through . . .    A Dynamic and Iterative Approach Going over the framework of Transition Planning A Transition Plan provides: Feature set of Requirements Iterations Project Planning And, also sequa’s to . . . May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 35 (. . . From Transition Plan to . . .) Project Plans to . . . Developed Releases New To Be R3 As Is R2 Release Plans Old To Be R1 May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 36 Considerations  You’ll need to take a look at:  Impacts to current application plans  Possibly aligning your changes into releases  Suspending redundant activities within the Agency, Dept.  Configuration Management and  Change Control Management  Create / update Release Plans  Communicate plans to Stakeholders up front May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 37 . . . From Transition Plan to Project Plans Project # Project Name / Description Sponsor Transition Plan Staging & “Chunks” Project purpose & objectives Project Plan Project products Project # Project Name / Description Sponsor Timeline Project purpose & objectives Resources Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FTE by Skill Type Project Plan Project products Project # Project Name / Description Sponsor Project purpose & objectives Project Costs(ballpark range) Timeline Item Yr 1 $ Project Benefits (ballpark range) Where (MCD) Activities Yr 1 1 2 3 4 5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Project Plan FTE by Skill Type Resources Yr 2 Yr 2 Project products Yr 3 Yr 3 Performance Measures Complexity H/M/L Timeline Resources Project Costs(ballpark range) Activities Item Yr 1 $ Project Benefits (ballpark range) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Where (MCD) Yr 1 1 2 3 4 5 FTE by Skill Type Yr 2 Yr 2 Yr 3 Yr 3 Performance Measures Project Costs(ballpark range) Complexity H/M/L Project Benefits (ballpark range) Item Yr 1 $ Where (MCD) Yr 1 1 2 3 4 5 We included a list of Critical Success Factors and typical Issues Experienced on the next few foils -May '01 Yr 2 Yr 2 Yr 3 Yr 3 Performance Measures Complexity H/M/L Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 38 2 To-Be A “Best Practice” Profile -Synopsis Remember to pay attention to       Impact to current application plans and resources Aligning your changes into releases Suspending redundant activities Configuration Management Change Control Management Creating and updating Release Plans Communicating plans to stakeholders up front Chunking & Prioritizing Releases 1 3 As-Is Product Released Transition Plan Benefits  Risk Mitigation May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 39 2 To-Be Chunking & Prioritizing Releases Critical Success Factors         1 3 As-Is Product Released Transition Plan Analysis balanced against “analysis paralysis” Having a dynamic, iterative process versus a static, one-time approach Prepare and coach ahead of time for change Confirm objectives and expected outcomes with Executive Sponsors and “customers” Having the right “Content Experts” involved at each stage Executive Sponsorship with both Business & Technical Developing Impacts to the Organization and Risk assessments for given solutions and changes Developing a Transition Plan and preparing for change Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 40 May '01 Issues Experienced            Not having the right players involved from the get go Making decisions based on gut-feel instead of profound knowledge based on “As-Is” to the “To-Be” architecture Little or no planning for resistance to change Scope creep or taking on “world hunger” (failing to stage initiatives) Little or non-existent Executive Sponsorship Having Business but no Technical Sponsorship (or visa versa) Too optimistic timeframes (failing to consider new KSA’s or competition of limited resources) Simply automating a manual process without considering benefits, customer experience, ROI, etc. Failing to apply known proven technology solutions to business problems Applying technology without knowing what the business issue is Failure to consistently communicate and market May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 41 Recap & Implications Our approach covered today suggests:  . . . Each stage of Transforming from the “As-Is” to “ToBe” has a pallet of potential tools and deliverables  . . . Adapting to what we need to do to be successful  . . .Capturing and reviewing business transformations  . . . New adapting of technology -- technology moving very rapidly -- valuation of initiatives changes accordingly  . . .What is a solution today may not prove to be viable tomorrow due to changing technologies or priorities -there’s a need then for a way in which to continually monitor, develop and adapt to change May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 42 For More Information . . . Contact John Specht -- (360) 902-2881 johns@dis.wa.gov WASHINGTON STATE DIGITAL GOVERNMENT APPLICATIONS A cademy Department of Information Services May '01 Author / Focal: John Specht, (360) 902-2881 -- Digital Government Applications Academy Page 43

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