Business Change Lifecycle Flashcards
What are the stages of the business change lifecycle?
- Alignment
- Definition
- Design
- Implementation
- Realisation
ADDIR
These all feed into the business case
In the alignment phase what 3 areas do we need to look at to ensure alignment?
- Enterprise Architecture
- Business Environment
- Business Strategy
ADDIR - Business Change Cycle
What happens during the **‘Definition’ **Phase of the business change lifecycle?
- Closer look
- root cause analysis
- recommendations
- requirements building.
ADDIR - Business Change Lifecycle
What happens during the design phase of the lifecycle?
- Detailed specification
- Design of the solution
- Testing of the solution
ADDIR - Business Change Lifecycle
What happens during the implementation of the business change lifecycle?
- planning
- preparation
- deployment of change
ADDIR - Business Change Lifecylce
What happens during the realisation stage of business change lifecycle
Review of predicted benefits
Business Change Lifecycle
What are the Pros and Cons of iterative delivery?
Pros:
* Fail fast
* Deliver value quicker
* Easier to adapt
* Better engagement
Cons:
* Difficult to estimate time and costs
* Designs can keep changing
* Resource is difficult to predict - may need more
Business Change Lifecycle
What are the Pros and Cons of Linear delivery?
Pros:
* Easier to plan
* Easier to estimate time & cost
* More stability
* Fixed timeline
Cons:
* Not easy to change
* Can take a while to see results
* Needs might have changed
What tool is used to gather analysis to complete analysis for alignment
SWOT:
- Internal
- Strengths
- Weaknesses
- External
- Opportunities
- Threats
In a **SWOT **analysis - what tools would you use to gather internal insight?
- VMOST
- Balanced Scorecard
- Resource Audit
- Performance Measurement
- Growth Share Matrix
In SWOT Analysis what tools would you use to gather external insights?
- PESTLE Analysis
- Porters 5 Forces
VMOST
What does VMOST stand for?
- Vision
- Mission
- Objectives
- Strategy
- Tactics
VMOST
What is the aim of a VMOST?
To align strategic goals with operational activities
VMOST
What does the Vision do?
Outlines the TARGET STATE for the organisation
eg: “Delivering Happiness to Customers”
VMOST
What does the Mission do?
Explains WHAT YOU DO and how you achieve your vision
eg. Instagram: Capture and share the worlds memories
VMOST
What does the Objectives do?
Outlines the large items you wish to achieve
eg: Diversify product range, expand to new regions
VMOST
What does the Strategy do?
High Level plans needed to achieve the objectives
eg. Leverage sustainable technologies to become a global leader
VMOST
What does the Tactics do?
Provide Low Level Detail that work towards the strategy
eg: Launch nationwide recruitment campaign
Balanced Scorecard
What is the aim of a balanced scorecard?
Assesses the breadth and balance of “goals” and “objectives” that an org uses to measure strategic performance
It should align to the vision and strategy of the organisation
Balanced Scorecard
What are the key areas of a balanced scorecard?
- Financial
- Customer
- Learning and Growth
- Internal Business Process
Centered around Vision and Strategy
Balanced Scorecard
What does **Financial **element of the BSC measure?
Measures that relate to the financial performance eg:
* profitability
* share prices
* turnover
* liquidity
Balanced Scorecard
What does **Customer **element of the BSC measure?
Measures that relate to the customer such as:
* complaints
* loyalty
* reviews
* feedback
Balanced Scorecard
What does the **Learning & Growth **element of the BSC measure?
Measures that relate to investment in the org for future learning & growth
* employee skill development
* new product/service development
* continual improvement initiatives
Balanced Scorecard
What does Internal Business Process element of the BSC measure?
Measures that relate to processes:
eg.
* error or defect rates
* lead times
* performances against SLA’s
Resource Audit
What is the purpose of a resource audit?
To aid the identification of strengths and weaknesses for an organisation
Resource Audit
Name 3 types of resource
- Physical
- Financial
- Human
- Know-how
- Reputation
Performance Measurement
What is performance measurement in relation to objectives?
It is a way of measuring how well an organisation is executing it’s objectives
Performance Management (SWOT)
How is a good objective written?
Using the SMART technique
* Specific
* Measureable
* Achieveable
* Relevant
* Time-bound
Performance Management
What are Critical Success Factors?
CSF’s should align to the organisations Mission & Vision.
They are Qualitative descriptions of the critical factors that must be in place for the org to achieve defined objectives.
eg: increased customer satisfaction, Better product offerings
Performance Management
What are Key Performance Indicators?
KPI’s are quantative measures (SMART)
The can be used to measure performance against one or more CSF.
eg: Customer Engagement: number of Customers who complete survey
Performance Measurements
What are Targets?
Targets are specific, they measure performance against objectives and KPI’s
eg: Survey completion - 60% of surveys are completed
Growth Share Matrix
What is Growth Share Matrix?
Used to categorise the organisations products relative to the level of both market share and market growth
Pestle Analysis
What is Pestle used for?
External analysis of elements out of the control of an organisation
PESTLE
What does Pestle stand for?
Political
Economic
Socio-cultural
Technological
Legal
Environmental
PESTLE
What do you consider under Economic?
International, national and local economic standing inc:
* interest rates
* inflation
* employment rates
* disposable income
* foreign currency rates
* costs or resources
PESTLE
What do you consider under Political?
Policies made by
* Local and national government
* Transnational such as United Nations
* Trends and policies advocated by associations
eg: Taxation, Fair trade policy
PESTLE
What do you consider under Socio-culture?
Trends within society and culture
* Changes to demographics
* Change in preferences and habits
* Changes in popularity, influencing
PESTLE
What do you consider under Technological?
Trends with technology
* Availability of new technology - eg wifi, AI, etc
* Increased use of robotics
* Movement towards digital
* Accessibility of digital
PESTLE
What do you consider under Legal?
Legal & regulatory impact
* New/changes in laws
* Employment laws
* GDPR
* Health & Safety
* Sector specific legislation
* Disability & equality laws
* Copyright
PESTLE
What do you consider under Environmental?
Trends and influences concerned with natural environment
* Climate change
* net zero
* Animal welfare
* Waste disposal recycling
PORTERS 5 FORCES
What is the purpose of Porters 5 Forces?
Aids with analysis of the relative positioning and power of the organisation
PORTERS 5 FORCES
What are the 5 forces of the model?
- Industry competitors and rivals
- Bargaining power of suppliers
- Bargaining power of buyers
- Threat of new entrants
- Threat of substitute products or services
PORTERS 5 FORCES
What might you consider under Industry competitors and rivals?
- Volume of industry competitors
- Relative size, power and influence of competitors
- The extent of growth in the overall market
- The barriers to leaving the industry
eg: For fast food chain: global fast food chains, smaller chains,
PORTERS 5 FORCES
What might you consider under ‘Bargaining Power of Suppliers’?
Looks at power and influence of suppliers:
* Relative size of suppliers compared to rivals
* Strength of suppliers brand or service
* Costs of switching suppliers
* Alignment with suppliers
eg: window cleaners may have less bargaining power than a global org
PORTERS 5 FORCES
What might you consider ‘Bargaining Powers of Buyers’
- Degree of buyers choice
- Size of buyers compared with rivals
- Cost of switching between suppliers
- Threat of buyer competition
eg: bigger buyers will have more influence in negotiations
PORTERS 5 FORCES
What Might you consider ‘Threat of new entrants’
provides stimulus to enhance products and services - new entrants however need to:
* meet industry legislation
* create market awareness
* create a compelling and unique value proposition
* secure distribution
* seek capital
* skilled workers & resources
PORTERS 5 FORCES
What might you consider for ‘Threat of substitute products or services’
Looks at the availability and convenience of substitute services or products:
* buyers could decide they can live without
* could find an alternative way of meeting goal
1. different transportation
2. different entertainment
3. different energy consumption
TARGET OPERATING MODEL & POPIT
What is POPIT and what does stand for?
POPIT can be used when analysing the as is to the to be, it should cover:
* People
* Organisation
* Process
* Information & Technology
TARGET OPERATING MODEL & POPIT
What does People look at in the POPIT model?
People refers to the people who will be effected:
* What level of skill/training will they need?
* How will people communicate/?
* How will change be welcomed?
TARGET OPERATING MODEL & POPIT
What does Organisation look at in the POPIT model?
Organisation considers:
* Who are the key stakeholders?
* What will the new org model look like?
* What will the culture be?
* Who will be the managers / structure?
* Do we need more/less staff?
TARGET OPERATING MODEL & POPIT
What does Process look at in the POPIT model?
Process refers to:
* What processes will be used?
* Do processes need to change?
* Are there going to be any efficiencies in the process?
TARGET OPERATING MODEL & POPIT
What does Information & Technology look at in the POPIT model?
Information
* What data will be stored & how will it be processed?
* How secure will the data be?
Technology
* What technology will be used in the target state?
* How well will it align to processes?
* Will the technology be scaleable?
