Business Transformation Management Methodology

Many companies have no way of describing the approach they take towards transformation, so it's no surprise that a lot of transformation strategies result in a painful and unfulfilling journey. For most of those involved, the Business Transformation Management Methodology, or BTM Squared for short, is a four phase business transformation management methodology. It's an intensely documented approach to holistic business transformation which addresses the transformation journey from start to finish. My name is Rob Llewellyn and as you know, companies need people with the right capabilities to manage and lead transformation. As you know, orchestrating successful transformation isn't that easy and I mean innovative transformation which creates a new future without the constraints of the past. Which is why I hope that what I share in this episode will help you get better equipped to perform at your best as a manager, leader or consultant. If you want to learn more, go to studythrive.com Companies all over the world are embarking on all sorts of digital transformation journeys and while they adopt a variety of well known best practices such as PMP or Prince 2 for project management, MSP program management, ITIL for IT services, Scrum for building products or the Agile Manifesto, etc. How many have adopted a best practice business transformation approach? The truth is not many and studies by impartial academic and research organizations reinforce that statement. It's one reason why so many companies are struggling either to orchestrate transformation or to indulge themselves in anything more than digital sugarcoating. The Business Transformation Management Methodology, or BTM Squared for short, is a four phase holistic and integrated business transformation management methodology. It was developed by a think tank based out of the University of Northwestern Switzerland, consisting of senior transformation practitioners and leaders from well known global brands and leading academics. BTM Squared is an intensely documented approach to holistic business transformation management which addresses the transformation journey right from the start. It's often said that strategy is three times more difficult to deploy than develop, which explains why so many strategies result in a painful execution journey for everyone involved. Budgets and timelines expand and stakeholders get tired of the noise that comes from a poorly orchestrated transformation. The benefits on display in the business case begin to fade away as it becomes clear that the planned return on investment is diminishing as more time and resources are pumped into the initiative. This is not to mention the fact that the people and business units are aren't prepared for what lies ahead. This is a reality in many companies because they lack the right transformation tools and capabilities. The BBC's failed 100 million pound digital transformation is one example and thousands of others are swept under the carpets of companies that thrive on operational excellence but discover to their cost that transformation excellence requires a very different set of capabilities. BTM Squared was the world's first holistic business transformation management methodology that provides a framework with clear phases, deliverables and corresponding methods. It's a generic framework that can be applied to different business transformation use cases and it isn't specific to one business function, technology or industry. In its most simple form, there are four phases in the Business BTM Squared transformation life cycle which are Envision, Engage, Transform and optimize. This is the continuous life cycle of business transformation. While projects start and end, business transformation needs to be a continuous cycle. BDM Squared consists of nine transformation management disciplines. Let me quickly list them and then take a closer, albeit very high level, look at each. Meta Management is about leadership, culture, values and communication. Then we have Transformation Direction, which consists of Strategy Management, Value Management and Risk management. Next there's Transformation Enablement which is made up of five individual management disciplines. These are Project and Program Management, Business Process Management, IT Transformation Management, Organizational Change Management and Competence and Training Management. Now let's explore each of the nine management disciplines, starting with Meta Management in the context of business transformation. Meta Management provides the overarching frame for business transformation. It also provides the linkages among the disciplines and also the management structure which allows the transformation process to be effective. It addresses individual disciplines which include guidelines, leadership, culture, values and communication. Next is Strategy Management which primarily addresses the envision phase of the transformation life cycle during which a strategy is developed. Strategy development involves the selection of appropriate team members, collection of data, analysis of transformation needs and readiness. It also involves the design of a business vision, a business model, and the definition of an integrated transformation plan. Next is Value Management which involves defining the business benefits and the changes needed to realize them. It also includes evaluating the feasibility of making the changes successfully and producing an evidence based business case and supporting benefits realization. Plan Value Management relies heavily upon the engagement of stakeholders in the preparation of the business case and benefits plan to create the knowledge and commitment required to realize the benefits described in the business case. Risk Management provides fundamental guidance to the planning, development and effective execution of a business transformation. It's vital that the risks related to the process of transforming an organization towards a desired future state are well managed, along with risks that relate more to the possibility that the desired state quickly becomes either obsolete or inadequate. Then we have Program and Project Management which aims to support the implementation of the transformation strategy in order to achieve the benefits described in the business case. Program Management focuses on high level specification and the why and what of transformation. IT includes stakeholder management, benefits realization, dependency management, transition management, change acceptance, and integration with corporate strategies, while project management focuses on detailed specification and the how of implementation along with control of activities to produce products. Next we have Business Process Management, which defines the scope of process changes needed for the expected improvements in performance. To make the transformation effort a continuous success, business processes have to be considered from a strategic perspective. The identification of end to end business processes and the assignment of responsible business process owners is a major task. It's important to understand that process management doesn't equal process modeling, but rather the relationship between IT business and people. Then there's IT Transformation Management, which evaluates the impact of current IT processes, competencies and systems on business transformation and vice versa. IT assesses and enables solution readiness of the business, defines and assesses the gap between the as is and 2B of it, deploys IT operations and services, and implements IT governance. IT also involves improving IT operations and services and managing the IT lifecycle. Organizational Change Management, or ocm, as it's commonly known, addresses the human element of business transformation. IT deals with the people who have to change their ways of working and involves setting up a foundation for effective OCM with respect to governance and assessing organizational change readiness. Establishing and implementing stakeholder communication and performance management strategies and continuously receiving feedback to make improvements is key. The 9th Transformation Management Discipline is Competence and Training Management, which provides qualification and enablement with respect to the competencies required for business transformation and the strategic core competencies vital for the company's future success. Competence and Training Management identifies and analyzes training needs and objectives, develops training measures and implements the learning process. If digital business transformation efforts are to be successful, all of these nine transformation management disciplines need to be adequately addressed and it's worth noting that technology is just one of the nine disciplines in the list. This really highlights the fact that transformation is less about technology and more about people in business. Organizations need to ensure that the digital business transformation leaders avoid the pitfall of placing an unbalanced emphasis on technology, process and some project management while paying lip service or light touches to the other transformation management disciplines. Research has shown that this common error is the basis for clear, countless failed and struggling transformation programs throughout the world. BTM Squared is an integrated and holistic business transformation management methodology that can help firms avoid the pitfalls that over 70% fall into. As in any profession, theory is necessary, but the capability to bring those theoretical best practices and good intentions to life is what separates the best best transformation leaders from the rest BTM Squared helps great managers and leaders complement their existing core capabilities with the new transformation capabilities they need to step up into the complex world of digital business transformation. While a leader might have one or two decades of operations under their belt, orchestrating transformation is a brand new challenge for many of them. But they can complement their previous experience with a new way of thinking and working. The ability to orchestrate the entire business transformation is essential if the performance is to be one that people want to hear. Without it, the tune will be one of noise that no stakeholder expects to pay for. On the other hand, with the right leadership, the transformation could become one of the company's finest performances that its people are proud to be part of. But why use BTM Squared? Well, BDM Squared is based on extensive academic research and commercial experience. It helps its adopters build credibility among their business peers, and it's an objective, unbiased framework to identify and solve business challenges. BDMS Grid is an ideal tool for regular and quick assessments of business transformation, and it addresses both the rational and irrational aspects of transformation. The methodology distinguishes managers and leaders who use a proven approach to transformation from those that can't articulate approach that everyone understands. BTM Squared isn't focused on any particular technology or company, and it's open for any organization to use without having to engage the consulting or integration firms that will seize every opportunity to land and expand. The business Transformation Management methodology used to be accompanied by two levels of certification, which are the Business Transformation program manager, or BTPM, and the global business transformation manager known as GBTM. There's probably a little over 1,000 certified BTPM practitioners and fewer GBTM practitioners in the world, and I'm proud to have both. Many are the senior consultants who work within SAP's advisory services division, which provides advice and guidance to senior business and technology executives. Others can be found in firms such as Daimler, lg, DHL and Unilever, and a small number of independent consultants were also awarded the certifications. Although the courses and certifications based on BTM Squared are no longer available, the Thrive Digital Business Transformation Management course is a new alternative. It also includes additional elements of transformation such as innovation and digital use cases. If you don't already know, the word thrive is an acronym made from six words which are transformation, holistic, response and Innovation, value and enterprise. All good leaders will need to adopt these six principles if they want to orchestrate successful transformation which will enable them and their companies to thrive in the digital economy. The course is primarily delivered online to thousands of transformation managers and leaders from the world's most respected companies. But to accommodate demand, a classroom version of the course also started running in 2018. I appreciate your listening, and here's a quote to finish off the day from Brian Lawley. Methodology must be flexible. Companies often don't adopt the materials and methods they were trained on because they aren't flexible enough. What flexible methodology is helping your company undertake a meaningful transformation? If you want to take your transformation company capabilities and credentials to the next level, go to studythrive.com.