The Boston Consulting Group has developed three tools to identify critical risks and interdependencies in change efforts and regularly tests for them. 7 min read.
BCG’s Perry Keenan’s ‘How to Ensure Your Change Efforts Stay on Track’ highlights,
Companies often fail to anticipate and react to the full range of pitfalls that can harm their change programs. Explaining this is one reason why 50% of straightforward change efforts and 75% of more complex ones are considered failures.
BCG has developed three tools so that organisations can develop the capability and confidence to manage known risks and interdependencies,
- Project Roadmap
- Rigour Test
The Project Roadmap condenses a complex Project Schedule into 15-25 critical milestones, which identifies critical risks and interdependencies. These milestones link to indicators of when and how financial and operational impact will be delivered, providing sufficient early warning to highlight potential slippage.
Perry Keenan indicates the outcome of change initiatives is driven by four elements,
- [D] Duration of the project or time between key milestones.
- [I] Integrity of the team.
- [C] Commitment to the change.
- [E] Effort required by the project team.
A method for scoring and statistically analysing the dynamics of DICE has been created, which allows transformation initiatives to be assessed for success. Programs rated as ‘Win’ are likely to achieve their objectives, while those rated as ‘Worry’ should proceed with caution and those rated as ‘Woe’ should not proceed unless corrective actions are taken to improve the programs chance of success.
The Rigour Test helps when planning a program to ensure critical risks and interdependencies are identified, and that corresponding KPI’s for financial and operational impact are linked to underlying project roadmap milestones. This test is a 30-to-60 minute discussion among key stakeholders – sponsor, program manager, 2-to-3 key team members and the PMO. Other possible attendees include Finance, HR and IT. The discussion consists of three sets of questions,
- Part 1: Implementable Plan
- Roadmap is clearly defined, logically structured, and readily implementable
- Part 2: Quantified Impacts
- Impacts, their sources, timing and leading indicators are clearly identified
- Part 3: Interdependencies and Risks Addressed
- Interdependencies and other risks/issues are identified and clearly addressed
Plans experience inevitable change. By building roadmaps, undertaking a DICE assessment and Rigour Test prior to launch (updated monthly), organisations can better manage disruptions and maximise a change programs economic value. This approach steadily improves business confidence in for the current transformation and emboldens the business to take on more ambitious change.
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