Large international organisation bureaucratic structure: Precision, speed, unambiguity, … strict subordination, reduction of friction and of material and personal costs- these are raised to the optimum point in the strictly bureaucratic administration. They are better suited for more complex or larger scale organizations, usually adopting a tall structure.
Transformation will become a must-have core capability for success, be that for commercial or governmental organisations: In this white paper we argue that instilling the capability requires the creation of a dedicated Transformation Office, responsible for driving complex, disruptive change initiatives that have a profound impact on both operational structures and the strategy of the organisation.
We outline the required remit and key focus areas of a Transformation Office led by a Chief Transformation Officer and how it differs from, yet works alongside, conventional Project Management or of Strategy Delivery Offices.
The Demands of the Digital Economy The digital economy is driving unprecedented disruption for businesses and governments across the globe. This fast changing environment has particular significance in the business and government environments of emerging economies. The implications are even more profound for GCC countries, where the economies are highly dependent on fossil fuel.
While increasing numbers of business and government leaders across the region acknowledge that transformation is key, the challenge they are grappling with is precisely how to make this step-change happen. Based on our research, this white paper from ShiftIN Partners introduces a new approach for driving transformation and one befitting the digital age.
Central to this is the establishment of what we call a Transformation Office, led by a Chief Transformation Officer. Transformation nowadays is a balancing act between adapting to new realities and maintaining the agreed course of action.
From our perspective transformation can take many shapes, from transforming business models to cater to a shared economy to transforming the way that critical services are delivered to residents. We categorize transformation into three core verticals and three transversal transformations: The transformation that is driven mainly by a seriously underperforming business or organisation: The transformation that is driven by changes in policy, mandates or of the Vision of the senior top leadership e.
The transformation of the current technology and IT backbone of the organisation, driven by an increase on demands from the business or social environment Support functions: The transformation of legacy structures in terms of support such as legal, HR, finance driven by an increase on demands from business or social environments, as well as the continuous seek for efficiency, cost reduction and service level increase.
In practice there are no clear boundaries between these transformations, and most likely a core vertical transformation is pegged by a good share of transversal transformation. For instance, the change in a business model, where an entire new value proposition will be introduced e.
The Need for a Transformation Office When discussing transformation, we cannot but consider strategy. As transformation, whatever the scope, represents such a substantive change for an organisation, it will always be anchored to the longer-term strategy. Running a transformation program will likely be encompassed within the span of the strategic planning horizon and transformation initiatives typically mid-term in nature will be the key strategic initiatives that deliver breakthrough performance improvement.
For many organisations today the requirement to transform or fail even die is so critical that there is a pressing need to re-think how organisations manage such mission-critical initiatives. Transformation efforts can and most likely will fail if they are not properly and exclusively managed as a unique set of initiatives.
Such efforts can be made without interfering with the ongoing tactical or operational action while maintaining the direction towards agreed strategic or long term outcomes.
We argue therefore that there is a pressing need for a dedicated Transformation Office, responsible for driving such complex, disruptive change initiatives.
Why not the Project Management or Strategy Delivery Office Many would counter-argue that prevailing organisational functions already assume responsibility for transformation programs.
Both are essential for driving performance improvement, but given their inherent complexity and criticality, managing transformation cannot and should not be done using the same approach used for managing projects, strategy or performance.
Both offices sustain key responsibilities that should not be compromised through additional mid-term complexity that may distract the organization from the agreed direction or jeopardize the ongoing actions on the ground.
As case in point, assume the implementation of a new finance and accounting system within an organisation: It is typically a complex project with many involved stakeholders internal and external and so robust project management disciplines will be key to successful implementation.
But this is not a transformation initiative. Now when it comes to strategy implementation, a major transformational effort can be seen as a key strategic initiative, hence the natural owner is often seen as the Strategy Delivery Office and this is often the preferred vehicle.
However apparently logical, we argue that this is no longer a fit-for-purpose approach. Transformation requires large amounts of change management, coordination of complex stakeholders, and more importantly people committed to make it happen and that have the right skills.
So we argue for three distinct offices that have their own remits but work together in driving performance.
The transformation that this entity will have to endure will be substantial, and the need to maintain focus and manage change will overriding success prerequisites. Or consider a large financial institution, which operates in retail banking, corporate banking, wealth management and investment banking.
If the bank decides to reorganize its operations by creating two subsidiaries — one in charge of centralizing all its operations and other in charge of re-shape all its digital banking services — the impacts on the entire business will be profound.
The expected implementation and the degree of change associated will be very challenging, hence having a proper governance of this transformation and a stand-alone structure can bring that focus and help to navigate through complexity.
When organizations merge, as a further illustration, the transformational process is exclusively managed by a dedicated office to guarantee success but also to allow the merging organizations to maintain their short term and long term course or journey.
A similar case can be considered when a governmental organization is privatized: Organisational preferences regarding structure and culture will come into play.
What is more important is to recognize the distinct, yet complementary roles of the three offices.MAPPING AND RE-MAPPING ORGANISATIONAL CULTURE: A LOCAL GOVERNMENT EXAMPLE ∗ by Gerry Johnson Introduction There is a tendency for organisations' strategies to persist because they are configured within that.
The organisational structure can be enhanced with exactly the information your personnel administrators and other users need for getting a perfect view of the master data so they can secure your data quality.
Most SAP HR installation have the standard layout of displaying the organisational structure through transaction PPOMW, . chapter organizational structures: concepts and f0rmats When two or more people work together to achieve a group result, it is an organization.
After the. The question of whether you should centralize or decentralize your IT structure is a bit misleading: It suggests that firms commit completely to one model or the other. In practice, that’s rarely the case. “Centralized” and “decentralized” are two ends of a spectrum, and most organizations.
Transformation Office Framework. Regardless if it is a business model transformation, an IT transformation, or any other type of transformation, . Webpage on Management Functions, Human Resource Management, Economic and Social Environment, Accounting and Finance for Managers, Marketing, Management Information System, Quantitative Analysis, Management Economics, Organisational Design Development & Change, Strategic Management, Social Processes and .