Integrated and Intelligent Business Transformation: H-Bar
Our H-Bar model is an integrated approach to defining and delivering business improvement and transformation initiatives. The idea is based on the pragmatic selection and application of tools to resolve specific business challenges, focused on the needs of the business or organisation – NOT the constraints of tools.
The H-Bar model consists of four simple factors that all have to be present to optimise the probability of success – when improving or transforming businesses at scale..
1. Strategy, Governance & Financial Control
At the top of the model the blue arrow, signify STARTEGY DESIGN, GOVERNANCE and FINANCIAL CONTROL. It is imperative any business improvement or transformation initiative is rooted firmly in the strategy of an organisation; otherwise, there will be no sponsorship or support in general for an initiative.
2. Scope Definition & Planning
The first vertical part of the ‘H’ signifies front end loading in terms of business engagement, scope definition and forming of the coalition that will drive the initiative from start to end. PROJECT / PROGRAM / PORTFOLIO MANAGEMENT INITIATION and PLANNING activities are key to defining the initiative in close collaboration with the business – for the business. When defining an activity, the pragmatic application of document templates is necessary and the following document types could be used: Project Management Plan, Project Management Canvas, Project Charter etc. all depending on the nature of the initiative. More complex types of initiatives will require extensive definition/planning documentation whereas more simple activities may only require a Project Charter.
3. Agile and Controlled Delivery
The horizontal part of the ‘H’ represents DELIVERY of the initiative. Depending on the nature of the project to be delivered, the methodologies to be applied at the stage can vary significantly. Typically, when delivering/improving processes / services / assets the approaches most relevant will be:
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Lean
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Six Sigma (DMAIC / DMADV)
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IT Development, Waterfall based
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IT Development, Agile based
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Design Thinking
As part of the HYBRID thinking – most often the best and most effective solution prove to be a combination of all of the (5) methods presented above. Simply using (1) tool – will in most cases be sufficient to deliver a new process, service or asset. However, one tool comes with very limited capability in rel. to the desired outcome.
An example could be an ERP implementation. A project of this nature and complexity could easily require parts of all (5) methods to be included in the delivery of the ERP Project.
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Lean, could be used to identify WASTES in the current processing landscape – and by doing value-stream maps for the future state, prove the value to the business of process improvement activity.
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SIX SIGMA, could be used to reduce PROCESS VARIATION by either improving current processes (DMAIC) or designing processes for 6-sigma level performance (DMADV).
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IT DEVELOPMENT - WATERFALL, could be useful in IT infrastructure and integration aspects of the ERP implementation.
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IT DEVELOPMENT – AGILE, could be very useful in relation to USER INTERFACE / BPM aspects of the ERP project.
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DESIGN THINKING, is always fantastic to involve Stakeholders in requirements, prototyping and validation of ideas for business improvement.
The conclusion for the ‘DELIVERY’ phase is as follows: Agility and speed is a must have today due to the speed required to survive. By being Agile, and collaborating closely with the internal/external customers of the solution, the likelihood for failure or sub-optimal solution development is eliminated during the delivery. Furthermore, the recipents of the project output will have a ‘share’ in the end output, and thereby accept the solution.
4. Delivery of Value
The last vertical of the ‘H’ concerns the implementation and creation of value as per the project scope and/or business case.
At this point in time of a project, it is essential that the solution is embedded into operations as smoothly as possible. To ensure this is the case CHANGE MANAGEMENT must be applied. The tools to be considered in this regard are:
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Change Acceleration Process (CAP)
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Q = A x E
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ABC
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PIC/NIC
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DCOM™
By determining the CHANGE READINESS of the operation and stakeholders in general, it is possible to select the suitable CHANGE MANAGEMENT tools and combine them with the right BEHAVIOURAL MANAGEMENT tools – to drive implementation of the project output.
This activity is vital to generate the desired results of a project concerning process / product / services or assets. By involving members of the Operations and Stakeholders in general, the ground should be well prepared for a successful handover from ‘project’ to ‘operations’, business as usual.
H-BAR & Risk Management
Project Managers are under pressure to deliver on Time, Budget, Quality and Scope (TQCS) parameters. As the business environment is more and more complex and pressure to deliver faster and for less cost, it is imperative Project Managers and Businesses are in CONTROL of the efforts to deliver OPEX reduction activities or CAPEX initiatives (ROI).
The H-BAR model is an integrated change tool, that can be used by all sectors, and in particular in rel. to MANAGEMENT of RISK. How?
It is possible to assess a project in all (4) aspects of the project lifecycle:
1. Strategy, Governance and Financial Control:
a. Is the strategy well defined?
b. Is a governance model in place – to ensure effective execution?
c. Is the business case well defined and how is the project performing against the business case (e.g. Earned Value Analysis)
2. Scope Definition & Planning
a. Is the scope defined clearly?
b. Have all Stakeholders been consulted?
c. Is the plan realistic?
d. What are the Risks, Issues, Opportunities?
3. Agile and Controlled Execution
a. Is the delivery performed in partnership with Stakeholders?
b. Is the ‘voice of the Customer’ being sought?
c. Is the project team high performing?
d. Are issues, risks and opportunities identified and if necessary escalated for resolution?
4. Delivery of Value
a. Has Change Management planning been performed?
b. Are Stakeholders prepared for transition from Project to ‘business as usual’?
c. Have relevant training activities been scoped / delivered?
d. Will Stakeholders have the opportunity to be successful with the new product, process, service or asset?
e. Have positive re-enforcers been identified?
Using these questions – Project Managers and Management in general can assess the probability of success for an initiative.
Successful business improvement/change or transformation is a function of a number of factors:
By decomposing the project into it’s vital parts and calculating the %’s it is possible to assign an order of magnitude to the probability of the project being successful. In the example above the number is 42%. This must not be interpreted as a scientific score but instead an order of magnitude.
This approach to understanding the ‘VOICE OF A PROJECT” is vital for all involved Stakeholders to understand how the project is performing and work as a team to rectify performance issues.
Conclusion:
In today’s world – the capability of businesses to change, improve and transform themselves is as important as having great products/services (core business proposition).
The H-Bar model, offers an integrated framework to manage change, improvement and transformation, end-2-end.
The framework, when used over and over, will build an organisational capability that increased over time and therefore increases the maturity of organisations in rel. to create competitive advantage and out-perform the competition.
Business improvement, change and transformation can be like climbing a mountain, but with the right tools and attitude – it is possible to move mountains. The H-Bar model is the ideal, flexible, agile and organic framework.