Envision: Set up a foundation for an effective organizational change management with respect to governance and assess organizational change readiness. 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. It addresses individual disciplines which include guidelines, leadership, culture, values, and communication. Envision: create the big picture of process management. Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. We’ve supported dozens of Business Transformations in industries like Pharma, Healthcare, Finance, Oil and Gas—you name it. Transformational IT management within BTM2 addresses the following steps (referring to the transformation lifecycle) for business transformation success: Source: Winter, R., Gubler, P., Wortmann, F., Elting, A., Schultheis, W. (2012) Transformational IT Management. Business Process Transformation involves radically changing the elements of your processes to meet new business goals. Next is Strategy Management which primarily addresses the Envision phase of the transformation life-cycle, during which a strategy is developed. More than half of the companies undertaking transformation fail to achieve the desired business result. Usually, these new goals are centered around a new digital transformation implementation. In A. Uhl & L. A. Gollenia (Eds. Business Transformation Management Methodology. It helps its adopters build credibility among their business peers, and it's an objective, unbiased framework to identify and solve business challenges. Well, BTM² is based on extensive academic research and commercial experience. Organisations need to ensure that their 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. Transformation requires that everybody is engaged and motivated and doing the new things that the business needs. 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 transformation leaders from the rest. It's important to understand that process management doesn't equal process modelling, but rather the relationship between IT, Business and People. Get the Appropriate Strategic Vision. Farnham, UK: Gower. A formal process that spans a host of activities from strategy to execution is critical for success. In turn this helps to support and innovate new business strategies. Rationalize and Define Future Actions. Rob Llewellyn is a digital business transformation advisor and founder of CXO Transform. BTM² is an ideal tool for regular and quick assessments of business transformation, and it addresses both the rational and irrational aspects of transformation. A digital education platform helping leaders improve their ability to steer their organisations towards digital economy success. Engage: defines to-be IT analysis and assesses gap to as-is. Such activities may be business process outsourcing, the implementation of enterprise software or mergers and acquisitions. Read more icon. These transformations help organizations compete more effectively, become more efficient, or make a wholesale strategic pivot. Andrzej Hutniczak bpo. p. 169. Business transformation requires a longer-term and often major change in the competences of team members and the management. Lean Six Sigma, HSBC’s OOE) Collaborating and developing a sense of community which incorporates process experts within the function, the business and service delivery Any radical organizational change can be termed business transformation. The business transformation portfolio – here is an example – brings together all the action items, and then groups, prioritizes, and plans them into a single roadmap. Most significantly, this involves both analyzing as-is processes and innovating to-be processes. Optimize: improves IT operations and services and manage IT lifecycle management. Farnham, UK: Gower. It can be defined as a much broader and comprehensive view of how to look at business processes. VM should be seen as a pragmatic approach to drive value adoption in business & IT investments. In A. Uhl & L. A. Gollenia (Eds. This book provides an integrative Business Transformation Management Methodology, the BTM², with an emphasis on the balance between the rational aspects of transformation and the often underestimated emotional readiness of employees to absorb and accept transformation initiatives. Farnham, UK: Gower. The Methodology for Business Transformation v1 1. What flexible methodology is helping your company undertake a meaningful transformation? Transform: Apply and adopt stakeholder management, communication management, and performance management. Specifically, change management deals with the people who have to change their ways of working because of a business transformation. It also involves improving IT operations and services and managing the IT lifecycle. Organizations need to go beyond simply addressing risks that are inherent to an individual business transformation since, in isolation, such aggregation provides only limited guidance to those seeking to understand and manage the complex interdependencies that surround strategic risks. Digital business transformation is the process of exploiting digital technologies and supporting capabilities to create a robust new digital business model – Gartner In today’s increasingly competitive market, CXOs face constant challenges to keep up with the pace of technological change so they can succeed and outperform their competitors. ), A Handbook of Business Transformation Management Methodology. Essential steps comprise both designing an enterprise process framework and assessing the organizations process maturity. Business transformation is the process or results of changing from one state or condition to another. It can be defined as a much broader and comprehensive view of how to look at business processes. The Business Transformation Management Methodology – or BTM² for short – is a four-phase holistic and integrated business transformation management methodology. Global Enterprise Model (GEM) for Utilities Featured Expert. They are often adopted independently, but many companies are employing all three as they work to increase the value they deliver. A slow transformation process is an ineffective one. Programs typically have a more strategic vision of the desired end goal, but no clearly defined path to get there. Welcome to the second article in our series, “A Process for 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. Successful transformation requires an integrated approach that links business strategy to transformation ambition, and transformation ambition to executional discipline. Now let's explore each of the nine management disciplines, starting with Meta Management. Managing change effectively is a complex science that goes beyond the process and proformas of projects. It enables operations, maintenance and support of transformation deliverables. The Business Transformation Management Methodology (BTM²) is a four-phase holistic and integrated business transformation management methodology. The Business Transformation Management Methodology – or BTM² for short – is a four-phase holistic and integrated business transformation management methodology. Andrzej Hutniczak. Assessing maturity is a process, but well worth the effort in the knowledge you will gain. It can be painful to find out your organization is not at the maturity level you assumed. Business Transformation: is a journey KPMG is a leading business adviser for major transformational change programs throughout Australia KPMG has experience in managing and providing expertise to large, complex organisations in the public or private sector undertaking business transformation or merger initiatives. The success depends on the complex interplay of actors in a multifaceted ecosystem. Meta Management. BTM² was the world's first holistic business transformation management methodology that provides a framework with clear phases, deliverables and corresponding methods. Companies the world over are embarking on all sorts of digital business transformation journeys, and while they adopt a variety of well-known best practices such as PMP or PRINCE2 for project management, MSP Programme Management, ITIL for IT services, Scrum for building products, or the agile manifesto, etc. It's one reason why so many companies are struggling either to orchestrate transformation, or to indulge themselves in anything more than digital sugar coating. And studies by impartial academic and research organisations reinforce that statement. Andrzej Hutniczak bpo. To stay ahead, companies must transform even when they’re already dominating their markets. In A. Uhl & L. A. Gollenia (Eds. It also involves the design of a business vision, a business model and the definition of an integrated transformation plan. It is our approach to help organizations to get from strategy to a plan of action in order to realize strategic goals. 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