Business Transformation Framework – in 3 minutes
Over the last 25 years we have developed and consistently improved upon a methodology we call the Business Transformation Framework. It is our approach to help organizations to get from strategy to a plan of action in order to realize strategic goals. The Business Transformation Framework is applicable in all kinds of organizations. It can be taught and learned. And once learned and embedded it becomes a true organizational capability and competitive edge!
Change is happening all the time and at an increasing speed. We can see it all around us. These disruptive changes have impact on the business models of organizations. They are forcing organizations to make tough choices on the way they do business, the way they communicate with their customers, about their product- and service offerings, their internal processes and their applications and IT infrastructure.
Organizations obviously need the capability to adopt change, make decisions and to align their strategic goals. But equally important, to “get from strategy to execution”, organizations need the capability of designing and implementing change based on the strategic direction. This is what we call “business transformation planning”. Business Transformation Planning is an important and essential process for effective design and management of business transformations in a changing world.
The Business Transformation Framework is an approach for structured and planned change. It helps to translate the business strategy into an executable transformation portfolio. It does this by defining the required business transformation, taking into account the various aspects of operational management, being: customers & services, processes & organization (including culture), information and applications and IT-infrastructure and facilities.
The Business Transformation Framework encompasses a model to assure alignment in two ways: ‘strategic alignment’ and ‘business – IT alignment’.
First, ‘strategic alignment’ is assured using the Business Transformation Framework ‘from top to bottom’. We are referring to the ‘rows’ in the Business Transformation Framework. It starts with clarifying the strategy and objectives, because a clear strategy is vital to defining the changes. To further operationalize the strategic goals we define a set of guiding principles. Based on the guiding principles and an understanding of the current situation and we design the target situation. Action items refers to all kinds of activities needed to realize the required business transformation and to achieve the target situation. We use these action items to define the business transformation portfolio by grouping them into projects en programs. The business transformation portfolio can be seen as a roadmap in which all projects and programs are planned according to their priorities and interdependencies.
Second, the ‘business – IT alignment’ is achieved using the Business Transformation Framework ‘from left to right. We are referring to the ‘columns’ in the Business Transformation Framework. Each column represents an aspect of operational management. We distinguish between four aspects, being: clients & services, processes & organization, information & applications and IT infrastructure and facilities. Clients & services is about which clients the organization wants to serve, what products and services the organization offers to them, how it distributes these, under what conditions and to what quality or service levels. The aspect of “Processes and organization” focuses at the internal processes, organizational structures and organizational cultural. The aspect “Information & applications” is about providing optimal support for the services, processes and employees in terms of data and information systems. The last aspect “IT infrastructure & facilities” refers to what is needed for the information systems to work according to specifications, like software development platforms, application and data servers, network infrastructure, data centers, and so on.
The book covers the following:
Chapter 1 explains why the Business Transformation Framework is an excellent tool for organizational change.
Chapter 2 discusses how the Business Transformation Framework is used to get from strategy to execution.
Chapter 3 explains in more detail the model used in the Business Transformation Framework.
Chapter 4 discusses what the process of Business Transformation Planning looks like.
Chapter 5 covers topics like portfolio management, architecture management and project- and business change management in order to realize the planned change.
Chapter 6 concludes with some practical advice to get started.