Delivering Complex Programs

with Consistency and Success

Program Management
Área | March, 2017
Playbook Contents

• Chapter 1: Introduction to Program Management

• Chapter 2: The PgM Journey

˗ Phase 1 – Imperative
˗ Phase 2 – Operationalize
˗ Phase 3 – Integrate
˗ Phase 4 – Execute
˗ Phase 5 – Sustain

Deloitte Delivering Complex Programs with Consistency and Success 2

Expositors

Miguel Torres Rodrigo Holmberg Miguel Hidalgo

Manager Organizational Manager Organizational Manager Operational
Project Managemet Project Managemet Excellence
Deloitte Deloitte Deloitte
PMO/PPP Operations Services PPP Consulting Services Master en Modelos de Gestión

Deloitte Delivering Complex Programs with Consistency and Success 3

Many Forces Drive Organizations to Transform

There are many forces driving companies to change how they do business, which is frequently addressed through
large, complex, multi-discipline Transformation Programs

Successful transformation is not just about responding to individual triggers, but about effective
integration and execution across all triggers to deliver the full value of a program

Deloitte Delivering Complex Programs with Consistency and Success 4

What is complexity?

• There is no simple, widely accepted definition

• Complexity theory has been developed across fields including: cybernetics, systems thinking, computer science,
engineering, physics, mathematics, earth sciences, sociology and philosophy

Truly Complex Projects

• Usually adaptive system of systems;

• Have high uncertainty in scope definition;

• Are distributed (organizationally, geographically, jurisdictionally);

• Have ongoing environmental and internal turbulence;

• Are most effectively implemented through wave planning; and

• Unable to be decomposed to elements with clearly defined boundaries.

Deloitte Delivering Complex Programs with Consistency and Success 5

What is complexity?

A project’s complexity profile is a summary of inherent project risks and complexities measured across five standard
categories and 29 factors; as such, it does not indicate how well a project is being managed. A project’s unique
complexity profile drives the degree of focus, governance and control, that should be built into the overall plan.

Complexity categories Measurement scale

This category gives consideration to the number of
stakeholders, how they are aligned, and stakeholder
Stakeholders
power. Stakeholders include co-venture partners,
government organizations, and large subcontractors.
This section assesses the challenges for the project
associated with people change management and
interaction between different stakeholders. It
considers breadth of change across project roles and
Social Factors
the organization and the level of paradigm shift for
major stakeholders. The level of multi-disciplinary
involvement and cross discipline familiarity is also
taken into account.
This section assesses the challenges associated with
key assumptions, uncertainty, and risk. It also
Ambiguity
assesses how risk is shared among key stakeholders,
and the level of certainty around project costs.
This section assesses the challenges associated with
Technical system changes. Consideration is given to integration
Design complexity, robustness, external technical interfaces,
and overall system development complexity.
This section assesses the challenges for the project
associated with the planning, management and
Project
execution of project activities. It also assesses levels
Structure &
of accountability, project team experience, schedule
Management
complexity, contracting mechanisms, degree of
flexibility, timeframes, and cost.
Business as usual type projects, normally not formalized
<4
by most organizations.
Generally well defined projects undertaken within a
4–5
business unit.
Generally core business projects that may be undertaken
5–6 across several business functions and often have
executive-level attention.
Generally larger projects commonly undertaken across
6–7
the organization. Normally have board-level attention.
Generally larger projects commonly undertaken across
7–8 the organization and create a noticeable impact on the
organization. Normally have board-level attention.
Larger projects that are ambiguous in nature, are seldom
undertaken across the organization and create a
8–9
significant impact within the industry. Has board-level
attention.
Largest projects rarely undertaken by organizations that
9 – 10
may involve and impact multiple organizations.

Deloitte Delivering Complex Programs with Consistency and Success 6

The need for consistent Program Management

Why Programs Fail*

58% of client surveyed indicated that they don't have an assigned business transformation leader to lead their
business transformation efforts. It is critical to have a consistent, repeatable approach to transformation program
management, as well as a consistent toolset, and qualified and experienced Program Managers.

Deloitte Delivering Complex Programs with Consistency and Success 7

Enterprise Transformation Management (ETM) is a framework that
facilitates the successful execution of critical activities across all
phases

Strategy Management Governance

Description: Description:
Focuses on aligning long-term Emphasizes executive-level
strategic objectives to visibility to consistently align
Strategy
transformation efforts that will Governance transformation efforts with
Management
collectively produce the desired strategic vision, and deliberate
enterprise end-state, with an processes around leading
emphasis on continually indicators / controls to increase
monitoring transformation proactivity, accountability, and
activity based on priorities and Enterprise effectiveness
impact Transformation
Management Performance
Communications Management &
& Change Reporting
Management
Communications & Performance
Change Management Management & Reporting

Description:
Emphasizes meaningful
engagement with key internal &
external stakeholders to improve
change readiness and ensure that
impacts are embraced and
sustained throughout the
transformation
RiskManagement
Management Description:
Risk
Tracks progress to business
benefits and provides a
comprehensive view of
transformation impact through
Risk Management real-time executive-level
dashboards and regular
Description: performance analysis
Stresses active identification and
mitigation of potential barriers to
transformation success, with particular
attention paid to ownership, executive
accountability, and cross-functional
impact

Deloitte Delivering Complex Programs with Consistency and Success 8

Key Steps of the Transformation Journey Align to the Five Program
Management Dimensions

By applying the five program management dimensions across the entire Transformation Journey, we can define,
plan, monitor, and control the core dimensions of the program.

Imperative Operationalize Integrate Execute Sustain

Transformation Integrated
Transformation Transition and
Imperative, Objectives Transformation Value Capture
Pipeline Knowledge Transfer
& Guiding Principles Roadmap

Preliminary Set of Governance

Implementation Plans Delivery Assurance Program Closure
Initiatives Framework

Define Value Decision Rights Decision-Risk Continuous

Executive Reporting
Expectations Framework Analysis Improvement

Interdependency
Anchoring Decisions Risk – Value Analysis Program Health Checks
Alignment

PgM Toolkit, Client Resources, and Supporting Knowledge

Key
Decision
Strategy Governance Performance Risk Enablers
Management

Deloitte Delivering Complex Programs with Consistency and Success 9

PgM for Waterfall vs. Agile Projects
When should a project be Waterfall vs. Agile?

Spectrum of Agility
Waterfall Hybrid Agile Agile

Well defined Scope Ongoing prioritization

Predictive Planning Culture Adaptive

Low Need for Flexibility High

Well understood Technology Uncertain

Specialized Team Composition Cross-functional

Deloitte Delivering Complex Programs with Consistency and Success 10

Agile and Program Management
The potential Dilemma for Program Managers
PgM Challenge – Combining Agile, Waterfall & Hybrid Agile Projects in a Program
Project 1 - Agile
Agile is characterized by:
• Estimated scope with fixed
time and resources
• Requirements elaborated
during sprints
• Flexibility – changes are
easily accommodated
• Cross-functional teams
• Vertical slice of functionality
completed each sprint
• Potentially shippable product
after each sprint
Deloitte
Project 2 - Waterfall
Waterfall is characterized by:
• Fixed scope with estimated
time and resources
• All requirements detailed at
beginning of project
• Costly to incorporate changes
• Potential for team siloes
• Sequential work through each
phase
• One release at end of project
Project 3 – Hybrid Agile
Hybrid Agile is characterized by:
• Fixed scope with estimated time
and resources
• High level requirements at the
beginning of the project with
prioritization and modifications
throughout
• Cross-functional teams during
sprints
• Sprints organized by features or
prioritized processes
• Releases throughout or at end of
project
Delivering Complex Programs with Consistency and Success 11
Phase One: Imperative

The following describes how to support a client’s transformation journey

PgM Journey Description

1. Strategy and Transformation Imperative • Understand strategy and the transformation imperative facing the client
Imperative

• Establish the transformation objectives and guiding principles for decision making, and manage
2. Objectives, Guiding Principles & Stakeholder
Stakeholders
Management

3. Preliminary Set of Initiatives • Surface a preliminary set of transformation initiatives for analysis and prioritization
Operationalize

• Establish structures for governance and management of the transformation program

i. Governance Framework
• Define approach for identifying, escalating, making, and communicating key decisions
ii. Decision Rights Framework
• Analyze and rationalize initiatives and establish a pipeline of prioritized transformation initiatives
iii. Transformation Pipeline

i. Implementation Plans • Develop detailed work plans and resource plans for the individual initiatives
Integrate

ii. Interdependency Alignment • Identify and align the dependencies between the initiatives

iii. Integrated Transformation Roadmap • Develop an integrated implementation roadmap for the overall transformation program

i. Delivery Assurance • Monitor and control all aspects of the transformation program and implementation progress
Execute

• Regularly assess the program’s management processes to identify gaps and areas that require
ii. Program Health Checks
additional focus
iii. Executive Reporting • Provide timely, actionable, and metrics-driven assessments of progress to key stakeholders

i. Transition and Knowledge Transfer • Conduct transition and knowledge transfer to Business-As-Usual, and identify lessons learned for the
Sustain

program
ii. Continuous Improvement
• Develop approach and process for supporting and measuring continuous improvement
iii. Program Closure
• Resolve outstanding issues, archive program documents, and conduct client acceptance

Deloitte Delivering Complex Programs with Consistency and Success 12

Imperative Phase Outputs

At the conclusion of the imperative phase, three principle outputs will have been developed that will be further
utilized in the operationalize phase

Outputs from Imperative Phase

2 Guiding Principles and 3 Initiative Concept Notes

1 Transformation Objectives
Anchoring Decisions

Imperative Operationalize Integrate Execute Sustain

Deloitte Delivering Complex Programs with Consistency and Success 13

Phase Two: Operationalize

The The following describes how to support a client’s transformation journey

PgM Journey Description

1. Strategy and Transformation Imperative • Understand strategy and the transformation imperative facing the client
Imperative

• Establish the transformation objectives and guiding principles for decision making, and manage
2. Objectives, Guiding Principles & Stakeholder
Stakeholders
Management

3. Preliminary Set of Initiatives • Surface a preliminary set of transformation initiatives for analysis and prioritization
Operationalize

• Establish structures for governance and management of the transformation program

i. Governance Framework
• Define approach for identifying, escalating, making, and communicating key decisions
ii. Decision Rights Framework
• Analyze and rationalize initiatives and establish a pipeline of prioritized transformation initiatives
iii. Transformation Pipeline

i. Implementation Plans • Develop detailed work plans and resource plans for the individual initiatives
Integrate

ii. Interdependency Alignment • Identify and align the dependencies between the initiatives

iii. Integrated Transformation Roadmap • Develop an integrated implementation roadmap for the overall transformation program

i. Delivery Assurance • Monitor and control all aspects of the transformation program and implementation progress
Execute

• Regularly assess the program’s management processes to identify gaps and areas that require
ii. Program Health Checks
additional focus
iii. Executive Reporting • Provide timely, actionable, and metrics-driven assessments of progress to key stakeholders

i. Transition and Knowledge Transfer • Conduct transition and knowledge transfer to Business-As-Usual, and identify lessons learned for the
Sustain

program
ii. Continuous Improvement
• Develop approach and process for supporting and measuring continuous improvement
iii. Program Closure
• Resolve outstanding issues, archive program documents, and conduct client acceptance

Deloitte Delivering Complex Programs with Consistency and Success 14

Transformation Program Governance and Management Structure

While governance structures for transformation programs may
vary based on the needs of the organization, effective governance
structures align key functions, leadership, and execution.
Sample Transformation Governance Structure
Program Sponsor
Executive Steering
Committee
Executive Steering Committee Functions:
 Strategic direction and guidance
 Initiative prioritization and rationalization
 Alignment with business needs and functions
 Executive-level decision-making and issue
resolution
Business Engagement Functions:
 Stakeholder Management
 Organizational Change Management
 Training
 Communications
Domain Authority Functions:

Transformation Management Office  Requirements Management

 Data Architecture
Program Director  Technical & Quality Standards
 Business Process Management
 Technical & Business Architecture
 Solution Planning
Program Management
Program Control Functions:
 Risk Management
 Integrated Release Management
Business Domain Program Program  Change Control
Engagement Authority Operations Control  Benefits & Performance Management
 Quality & Standards
Program Operations Functions:
 Budget Management
Project Project Project Project  Schedule Management
 Program Reporting

Project Functions:
Legend
 Project Execution and Delivery
Transformation Project Level
Program Level  Project Risk and Issue Management
Strategy Level
 Project Reporting

Deloitte Delivering Complex Programs with Consistency and Success 15

Understand the dependencies between Scope, Issues & Risks

Issues, Risks and Changes impact each other, and they will impact Program resources and therefore timeline, scope
and budget.

Information Flow
Risks May Create Scope or Change Requests

Changes May Create Risks

When a Risk Is Realized, Issue Resolution May
It May Become an Issue Impact Scope
Issue
Risk Management Change
Management Control
Risks May Be Created Changes May Create
From Issue Resolutions Issues
or From Issues That Are
Left Unresolved

Issues May Require Updates

Resource Changes May
to the Resource Plans and Management Require Updates to
IWP and vice versa the Resource Plans
Plan or Resource Changes May Create Risks and IWP and vice
Integrated versa
Risks May Create Changes to Plans
Workplanning

Managing these processes carefully and understanding the dependencies minimizes (unpleasant) surprises
for you and your client! Leverage the capabilities of your PgM tool* related to tracking and escalation.

*A detailed overview of Deloitte’s recommended PgM tool can be found in the PgM toolkit chapter of this deck.

Deloitte Delivering Complex Programs with Consistency and Success 16

Decision Rights Framework

• Decision Rights are a key component of success for transformation programs and are about making business
decisions. They are a framework by which business issues requiring formal decision making can be managed

• These decisions can be triggered by internal (e.g., request for funding) or external events (e.g., change in
regulations) and require a consistent set of information / analysis to support decision making

• Decision Rights can be defined as:

˗ What decisions need to be made

˗ How to organize (committees/individuals) to make decisions

˗ What are the supporting management processes and tools to support decision making

Components of a Decision Rights Framework:

1. Decision Inventory A list of the types of decisions that need to be made

2. Roles and Determine groups/individuals involvement in each decision based on a RACI (Responsible,
Responsibilities Accountable, Consulted, Informed) model

3. Decision-Making Documenting high level decision-making process to enable efficient execution of business
Processes processes across multiple functions

A hierarchy of decision-making groups owning the defined decisions. It facilitates

4. Decision Rights Model
interaction among key stakeholders involved in the decision making process

An effective decision-making process can be managed by utilizing a Decision Rights Framework so that
all participants understand and adhere to their roles, responsibilities, and authority.

Deloitte Delivering Complex Programs with Consistency and Success 17

Develop Transformation Pipeline

Using high-level estimates from the initiative prioritization exercise, draft transformation pipeline of initiatives as a
starting point for the development of the robust transformation roadmap. The pipeline indicates which set of
initiatives should be executed in the short, medium, and long-terms.

Ranked Queue Transformation Pipeline

1. Initiative C Higher Wave I Wave II Wave III

2. Initiative A Wave I

Difficulty to Achieve
3. Initiative E

4. Initiative B Wave II

5. ....
Budget / Resource
cap
m.....

n. Initiative X Lower Time (0-30 months)

o. Initiative Y Wave III Finance Technology Human Resources Real Estate

Risk Operations Legal and Compliance Comms and Branding

p. Initiative Z
.... Cross Functional

Note: Size of bubble represents relative size of opportunity for each Function
Illustrative

Deloitte Delivering Complex Programs with Consistency and Success 18

Operationalize Phase - Outputs

In the Integrate phase, these major outputs will be synthesized along with other tools into a robust Transformation
Roadmap

Outputs from Operationalize Phase

1 Governance Structure 2 Change Management Plan 3 Initial Pipeline Plan

Imperative Operationalize Integrate Execute Sustain

Deloitte Delivering Complex Programs with Consistency and Success 19

Phase Two: Operationalize

The The following describes how to support a client’s transformation journey

PgM Journey Description

1. Strategy and Transformation Imperative • Understand strategy and the transformation imperative facing the client
Imperative

• Establish the transformation objectives and guiding principles for decision making, and manage
2. Objectives, Guiding Principles & Stakeholder
Stakeholders
Management

3. Preliminary Set of Initiatives • Surface a preliminary set of transformation initiatives for analysis and prioritization
Operationalize

• Establish structures for governance and management of the transformation program

i. Governance Framework
• Define approach for identifying, escalating, making, and communicating key decisions
ii. Decision Rights Framework
• Analyze and rationalize initiatives and establish a pipeline of prioritized transformation initiatives
iii. Transformation Pipeline

i. Implementation Plans • Develop detailed work plans and resource plans for the individual initiatives
Integrate

ii. Interdependency Alignment • Identify and align the dependencies between the initiatives

iii. Integrated Transformation Roadmap • Develop an integrated implementation roadmap for the overall transformation program

i. Delivery Assurance • Monitor and control all aspects of the transformation program and implementation progress
Execute

• Regularly assess the program’s management processes to identify gaps and areas that require
ii. Program Health Checks
additional focus
iii. Executive Reporting • Provide timely, actionable, and metrics-driven assessments of progress to key stakeholders

i. Transition and Knowledge Transfer • Conduct transition and knowledge transfer to Business-As-Usual, and identify lessons learned for the
Sustain

program
ii. Continuous Improvement
• Develop approach and process for supporting and measuring continuous improvement
iii. Program Closure
• Resolve outstanding issues, archive program documents, and conduct client acceptance

Deloitte Delivering Complex Programs with Consistency and Success 20

Detailed planning aligns stakeholders and ensures success

Effective planning maps out tasks of projects in the program, timing, roles, and responsibilities. Project schedules
are a key tool to ensuring stakeholders understand their responsibilities and expectations and that the program has
appropriate insight into activities and resources necessary to complete the project scope.

Initial Pipeline Plan

Begin developing project schedules using
output from Phase 2’s “Initial Pipeline Plan”

Standard Project Schedule Fields Milestones

Name Name of team / project element
Milestone
% Complete Estimated % complete of project element
 R1 - Objectives Approved
Requirements
Duration Duration of project element  R2 - Requirements Elicited & Documented
Start Project element start date  P1 - High Priority Process Artifacts Completed
Finish Project element finish date Process  P2 - Medium Priority Process Artifacts Completed
 P3 - Low Priority Process Artifacts Completed
Predecessor Dependency element # within work plan
Planned project deliverable for each  D1 - Design Complete
Deliverable  B1 - Build Complete
element
External Project
Dependencies external to project work plan  IR1 - Implementation Readiness Complete
Dependency Rollout
Estimate Key assumptions / rationale for element  DP1 - Deployment Complete
Assumptions durations
 C1 - Project Close
Resource Names Resource ownership of project elements

Project Schedule

 Programs typically use PMC and MS Project to build and manage

project schedules
 Schedules are then uploaded into HP PPM PgM for ongoing
management at the Program Level
Deloitte Delivering Complex Programs with Consistency and Success 21
Implementation Plans – Reporting

High-level program reporting across project milestones is imperative to successfully track and understand progress.

Individual Project Schedules Individual Workstream-Level Reports

Each project builds a detailed bottoms-up Projects from the same workstream are consolidated into a standardized
workplan reporting template, which provides:
 Quick, simple view of the overall workstream progress and schedule
 Ability to track completed, early and late milestones in a program-wide forum
on a weekly basis
Today’s Date
Project A

Current date for status tracking reference

ILLUSTRATIVE
Workstream A
2009 2010
Workstream B
SEPT OCT NOV
2009 DEC JAN FEB MAR APR MAY 2010
JUN JUL AUG SEPT

IMO R2 – Requirements Elicited 100% SEPT

(3 of 3) OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT
and Documented

IMO R2 – Requirements Elicited 100% (3 of 3)

– Business
IMO R3 and Requirement
Documented
Approvals Completed 100% (3 of 3)

IMO R3 – Business Requirement

– System Requirement
IMO R4 Approvals Completed 100% (3 of 3)
0% (0 of 3)
Approvals Completed

IMO R4 – System Requirement

IMO P1-3 - ProcessCompleted
Artifacts
0% (0 of 3)
Approvals 100% (3 of 3)
Completed

IMO P1-3 - Process Artifacts

100% (3 of 3)
IMO D1 Completed
- Design Complete 0% (0 of 3)

IMO D1 - Design Complete 0% (0 of 3)

IMO B1 - Build Complete 0% (0 of 3)
Project B

0% (0 of 3)
IMO T1 IMO B1 - Build System
- Independent Complete
(0 of 3)
0%
Testing Complete

IMO T1 - Independent System (0 of 3)

IMO IR1Testing
- Implementation
0%
Complete
Readiness Complete 0% (0 of 3)

IMO IR1 - Implementation

Readiness Complete 0% 0% (0 of 3)
IMO DP1 - Deployment Complete
(0 of 3)
IMO DP1 - Deployment Complete 0%
IMO TR1 - Training Complete
Milestone Quantity
NOT APPLICABLE (0 of 3)
Milestone End Date Progress Bar
IMO TR1 - Training Complete Information NOT APPLICABLE
Planned final completion % complete of the
Number of milestones complete
date across milestone specific milestone
out of the total across the
category category
workstream

Note: A Milestone is defined as a significant event or time period within the life cycle of the project. These typically are used for progress reporting or linking to external
dependencies. Milestones are usually zero effort, zero duration tasks that have predecessor/successor links or constraints and no resource assignments

Deloitte Delivering Complex Programs with Consistency and Success 22

Implementation Plans – Planning Project Resources

Allocating and managing against a resource plan ensures projects stay within budget and meet defined milestone
dates
Snapshot of Resource Planning Grid

ILLUSTRATIVE
External
Program Project Resource Resource PM Start End Total Total
- Hourly Rate
Name Name Type Name Comments Date Date Hours Cost
Rate
Day 1 – XXX XXX XXX John Secured 5/16 9/30 XXX XXX XXX
Paper Smith availability Resource Management Highlights
Column Descriptions
 Project personnel needs with
Program Name Descriptive Program Name where applicable
detailed resource estimates to
ensure adequate staff levels
Project Name Descriptive Project name
 Forecast resource capacities and
Resource Type Select descriptive title for the resource
allow the Program Management
Other Resource type differs from identified list team to proactively guide and
assist project teams when
External Rate Rate used for external resources – contractors and consultants
needed
Resource Name Resource’s name
 Enable Project Managers to
PM Comments Comments from the project manager / lead track which roles have been
Start Date Start of resource duration filled and time periods which
may be lacking resource
End Date End of resource duration coverage during execution
Total Hours Calculated value of weekly hours

Count of resource’s hours for the week ending on that date ; 1

Date full-time employee (FTE) is equivalent to 40 hr

Deloitte Delivering Complex Programs with Consistency and Success 23

Aligning Interdependencies

Identifying, managing, and aligning critical path project dependencies is key to minimizing the effect of slippages
and mitigating the risk of overall delays.

Key Steps

1 Identify program-level milestones and Map identified interdependencies and points requiring
2
dependencies with “Walk the Walls” workshop coordination using Dependency Planner

3 Prioritize risk and plan mitigation strategies using

Risk Management Framework

Deloitte Delivering Complex Programs with Consistency and Success 24

"Walk the Walls" – Workshop Overview

“Walk the Walls” is a planning alignment exercise that enables the rapid identification of cross-team deliverables and
dependencies throughout the program, and the building of an integrated milestone roadmap to govern the program
going forward.
Tools Key Activities

 Workstreams develop “Milestone cards” by identifying their

Transformation
Pipeline respective:
Inputs − Program-wide deliverables

Detailed Workplans − Critical path milestones

− Cross-program interdependencies

 Review and ensure alignment on program-wide path to achieve

transformation (milestones, dates, dependencies)
Objectives “Walk the Walls”
 Develop mutual understanding of interdependencies across teams
Workshop
 Identify additional gaps, risks and issues, open questions, and
open interdependencies

Dependency Planner
 Document initiative interdependencies and establish points for
coordination
Outputs
 Perform decision risk analysis to identify planning risks,
Risk Management determine degree of risk, and develop risk mitigation plans
Framework

Note: Walk the Walls is often used in M&A engagements. For more information, refer to the M&A Square 1 site for supporting tools and methods.

Deloitte Delivering Complex Programs with Consistency and Success 25

"Walk the Walls" – Milestone Alignment Activity

During “Walk the Walls,” teams ensure that relevant milestones have been identified, milestone owners assigned,
alignment on milestone timing obtained, and dependencies highlighted
 Each team pre-populates index cards identifying their project’s Format Example
Prep critical path milestones and interdependencies
Function Dependency Finance
Day 1
Critica SWDNA
l
 Color-code dependencies based on type (e.g., dependency on IT, Name & # P017
go-live date, etc.) and/or priority
Milestone Description Decommission ASU Daily
 Post milestone cards to the “Wall” Feed
 Teams do preliminary “Walk the Walls” to obtain an initial Begin Date End Date May 25, 2012 Day 2
understanding of how the program’s deliverables relate

 Present inbound / outbound dependencies and timing for each

Present deliverable, spending more time on critical path deliverables
 Identify risks or issues that might impact deliverables
 Make note of any misaligned end dates, missing milestones /
dependencies, project scope overlaps, additional resourcing needs etc.

 Detailed “Walk the Walls” with in-depth discussions if adjustments to

Discuss milestones, dates, dependencies, resourcing, and/or scope are needed
 Identify and define interdependencies; ensure that teams are aligned on
dependency needs and timing
 Raise any concerns that should be recorded in the “parking lot”

At the end of the session, the group will:

Review
 Review the revised wall to ensure that the new timeline is accurate
 Work through any issues captured in the “parking lot”
 Document all identified interdependencies

Note: Walk the Walls is often used in M&A engagements. For more information, refer to the M&A Square 1 site for supporting tools and methods.

Deloitte Delivering Complex Programs with Consistency and Success 26

High-Level Initiative Roadmap – Example

The high-level roadmap displays the major initiatives identified to transition the client’s future state: ILLUSTRATIVE
Jan 2013 Dec Jan 2014 Dec Jan 2015 Dec 2016
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Insurance sales Claims Claims (Harvest) Insurance sales Claims Claims (Harvest) Insurance sales Claims Claims (Harvest)
Key business Farm loans sales Farm loans sales Farm loans sales
milestones Crop AgriStability
AgriStability Supp/tax info AgriStability Supp/tax info Crop HPR AgriStability Supp/tax Crop HPR
fee deadline deadline HPR supplementary fee deadline deadline deadline fee deadline info deadline
deadlin fee deadline deadline
e
Systems operations and maintenance

Oracle DB & PB upgrade

Core systems High availability data centre implementation
capabilities with disaster recovery
Core systems Core systems
fit-gap analysis transition
strategy
Competency classification Finance
solution updates
Job descr. &
Organization structure classifications Legend
Policies, procedures &
Future state processes, policies, and procedures systems | workflows Foundational initiative Dependencies
updated
Future state processes Program | product System initiative Milestone
defined changes implemented Future
Ongoing program | product Non-transformation
Organization Program | product updates
updates (operational)
initiative (to be
transition defined)
Knowledge Employee portal
Culture def. and strategy
Management (KM) upgrade
Future-state Culture KM strategy KM tools and
culture defined strategy defined defined processes in place
Organization training and transition Support staff in new roles
Initiate corporate New org. structure in place
training plan Performance management system upgrade

Client interaction Master data mgmt.

model (MDM)
Customer Data clean-up MDM standards
Single view of complete and system in
segmentation
place
the customer Customer Relationship
Management (CRM)
CRM discovery complete CRM implemented

Phase 1: Benefits delivered in Phase 2 Phase 2: Benefits delivered in Phase 3 Phase 3: Benefits delivered in Phase 4 Phase
(2013/14): (2014/15): (2015/16):
Transition Transformation Optimization 4:
Ready • Defined org. structure, RACI, job descr. Initiatives • New policies and procedures defined Initiatives • Portal enhancements (TBD) Final
• Program | product changes implemented • Staff trained and systems updated to
• Customer segmentation strategy support new org. structure
complete • New org. structure fully transitioned
• MDM implemented • CRM implemented
• Channel strategy complete • Portal content migrated to new platform

Deloitte Delivering Complex Programs with Consistency and Success 27

Business Transformation Methodology

The following is a generic methodology that contains most of the common activities found in business
transformation projects

Components of Business Transformation

1. Change Management 1. Project Administration

2. Leadership & Stakeholder Alignment 2. Project Organization
3. Communications 3. Risk, Issue, Decision Management
4. Learning & Capability Transfer PMO 4. Project Reporting
5. Org. Design & Workforce Transition 5. Project Finance
6. Deployment Readiness

Business /
CompanyCustomer
Vision 1. Strategy Design
Strategy

1. Architecture
2. Environment Management Technology
3. Data Conversion
1. Operating Model
4. Management Information
2. Process Design
5. Applications
3. Facilities
6. Infrastructure
4. Real Estate

Deloitte Delivering Complex Programs with Consistency and Success 28

De la Gestión de Proyectos a la
Gestión de Procesos

Un Enfoque de Trabajo

Miguel E. Hidalgo G.
Senior Manager - Operational Excellence
Mhidalgog@deloitte.com

Deloitte Delivering Complex Programs with Consistency and Success 29

Se debe lograr una transición que genere el menor impacto y facilite
la operación conforme a lo esperado

1 Diseñar el modelo operacional futuro,

vinculando la estrategia con objetivos tácticos

2
Asegurar que los procesos futuros (To Be):
• Se alineen con la transformación
• Maximicen la eficiencia
• Mejoren la calidad del servicio/producto

3
Asegurar el Soporte e Instalaciones para la
nueva estructura estructura organizacional.

Deloitte Delivering Complex Programs with Consistency and Success 30

Un enfoque integral

Deloitte Delivering Complex Programs with Consistency and Success 31

Un enfoque metodológico que permite la optimización y mejora de
procesos, logrando alinearlos a los atributos del cliente y estrategia
de la organización

Definir Oportunidades
Medir Rendimiento
Objetivo: Identificar el
Objetivo: Medir el estado
problema, alcance del
actual del rendimiento del
proyecto y establecer
proceso e identificar
metas de mejora. Valores Personas
oportunidades.
Fundamentales Excepcionales

Controlar Mejoramiento de
Rendimiento Negocio
Objetivo: Monitorear Ejecución de Objetivo
y mejora continua. Excelencia Común

Alta
Analizar Oportunidades
Colaboración
Implementar Objetivo: Identificar las
causas y evaluar
Objetivo: Desarrollar
potenciales soluciones.
soluciones para enfrentar
las causas.

Deloitte Delivering Complex Programs with Consistency and Success 32

Integrando…

Diseñar el modelo operacional futuro, vinculando la

estrategia con objetivos tácticos

Asegurar que los procesos futuros (To Be) se alineen con la

transformación, maximicen la eficiencia, y mejoren la calidad del
servicio/producto

Asegurar el Soporte e Instalaciones para la nueva estructura estructura

organizacional.

Definir Medir Analizar Implementar Controlar

Deloitte Delivering Complex Programs with Consistency and Success 33

En la fase “Definir” se revisa el estado actual, objetivos y planificación
del proyecto

Definir Medir Analizar Implementar Controlar

En la primera fase del proyecto se destina a evaluar el estado actual de la organización y planificar todas
las actividades claves, plazos y productos.

Actividades Claves
• Establecer Modelo Operativo de Alto Nivel.
• Identificar la capacidad de gestionar procesos (Madurez).
• Determinar brechas y Plan de Implementación.

Herramientas

Deloitte Delivering Complex Programs with Consistency and Success 34

En la etapa de “Medir” se analizan los atributos del cliente y se realiza
un análisis de los procesos

Definir Medir Analizar Implementar Controlar

Realizar análisis del desempeño actual de los procesos, identificar productos/servicios estratégicos, y los
atributos que valora el cliente.

Actividades Claves
• Definir alcance y Plan de Implementación.
• Realizar análisis “Voice of the Customer” (VOC).
• Levantar procesos As Is y su evaluación (desempeño, KPIs).
• Identificar requisitos para el soporte e infraestructura.
• Redefinir Modelo Operativo.

Herramientas

D K S
Develop New Products/Services Market Products and Services Sell Products and Services Cont'd.

S-110
D-160 K-210 S-170
D-220 K-010 K-070 K-150 S-010 Build and Maintain
Plan and Manage Implement/Control Initiate, Manage
Implement Plan and Conduct Identify Marketing Develop Public Analyze the Sales Relationship with
Product Business the Marketing and Close Internet
Products/Services Research Opportunities Relations Strategy Area Customer and
Plans Plan Sale
Intermediary

D-170 S-120
K-090 K-160
Define Marketing D-230 K-020 S-060 Identify Specific S-180
Develop Product Develop Physical
and Sales Plan Qualify Products/ Conduct Market Develop Sales Sales Provide Sales
Life Cycle and Distribution
(Customer Services Analysis Plan Opportunities for Support
Global Strategies Channel Strategy
Requirements) Direct Sales

K-100
D-180 K-030 S-070 S-130 S-190
D-240 Develop K-170
Conduct Conduct Determine Initiate, Manage Manage and
Manage Change Positioning for Manage Product
Research and Competitor Customer Contact and Close Direct Evaluate
Orders Products and Obsolescence
Development Analysis Team Sale Performance
Services

D-250 K-110 S-080

D-190 K-180 S-140 S-200
Manage Alpha/ K-040 Design and Determine Call
Develop and Develop Sales Initiate and Develop
Beta Product Define Categories Develop Pricing Center
Design Products Force Strategy Manage Proposal Operating Plan
Releases Strategy Infrastructure

S-090 S-210
K-130 K-190
K-050 Design and S-150 Close the Loop to
D-200 D-260 Design and Design and
Identify Customer Develop Initiate, Manage Marketing,
Develop and Launch Products/ Develop Develop
or Market Applications/ and Close Planning,
Design Services Services Promotion Customer Service
Segments Infrastructure for Contracts Manufacturing,
Strategy Strategy
Internet Sales and Logistics
K-140 S-100 S-160
D-210 K-060 Design and K-200 Select/Manage Initiate, Manage
Develop and Perform Internal Develop Develop Product/ Resellers, Sales and Close
Design Processes Assessment Advertising Service Forecast Agents, Brokers, Telemarketing Infrastructure
Processes
Strategy Distributors Sale

Deloitte Delivering Complex Programs with Consistency and Success 35

En la etapa de “Analizar” se recopila y analiza la información obtenida

Definir Medir Analizar Implementar Controlar

En esta etapa se analiza la información obtenida y se define un roadmap para la implementación óptima de
cada uno de los procesos.

Actividades Claves
• Benchmarking del Modelo Operativo y/o comparación con el modelo actual.
• Realizar Benchmark donde se identifiquen las mejores prácticas y KPI’s de la industria.
• Realizar análisis causa-efecto. Simulaciones. Casos de Prueba.
• Identificar oportunidades y definir roadmap de implementación.
• Generar presupuestos para infraestructura y nuevos miembros del equipo.

Herramientas

Deloitte Delivering Complex Programs with Consistency and Success 36

En la etapa de “Implementar” se incorporan las mejores prácticas de
la industria y comienzan a rodar los nuevos procesos

Definir Medir Analizar Implementar Controlar

Una vez que se tienen las oportunidades de mejora identificadas y validadas, se comienza a trabajar en el
“vamos”.

Actividades Claves
• Diseñar procesos To Be, con todos sus elementos.
• Implementación de los nuevos procesos.
• Implementar la nueva infraestructura e incorporación de nuevos miembros del equipo.
• Generar las competencias del equipo.

Herramientas
D K S
Develop New Products/Services Market Products and Services Sell Products and Services Cont'd.

S-110
D-160 K-210 S-170
D-220 K-010 K-070 K-150 S-010 Build and Maintain
Plan and Manage Implement/Control Initiate, Manage
Implement Plan and Conduct Identify Marketing Develop Public Analyze the Sales Relationship with
Product Business the Marketing and Close Internet
Products/Services Research Opportunities Relations Strategy Area Customer and
Plans Plan Sale
Intermediary

D-170 S-120
K-090 K-160
Define Marketing D-230 K-020 S-060 Identify Specific S-180
Develop Product Develop Physical
and Sales Plan Qualify Products/ Conduct Market Develop Sales Sales Provide Sales
Life Cycle and Distribution
(Customer Services Analysis Plan Opportunities for Support
Global Strategies Channel Strategy
Requirements) Direct Sales

K-100
D-180 K-030 S-070 S-130 S-190
D-240 Develop K-170
Conduct Conduct Determine Initiate, Manage Manage and
Manage Change Positioning for Manage Product
Research and Competitor Customer Contact and Close Direct Evaluate
Orders Products and Obsolescence
Development Analysis Team Sale Performance
Services

D-250 K-110 S-080

D-190 K-180 S-140 S-200
Manage Alpha/ K-040 Design and Determine Call
Develop and Develop Sales Initiate and Develop
Beta Product Define Categories Develop Pricing Center
Design Products Force Strategy Manage Proposal Operating Plan
Releases Strategy Infrastructure

S-090 S-210
K-130 K-190
K-050 Design and S-150 Close the Loop to
D-200 D-260 Design and Design and
Identify Customer Develop Initiate, Manage Marketing,
Develop and Launch Products/ Develop Develop
or Market Applications/ and Close Planning,
Design Services Services Promotion Customer Service
Segments Infrastructure for Contracts Manufacturing,
Strategy Strategy
Internet Sales and Logistics
K-140 S-100 S-160
D-210 K-060 Design and K-200 Select/Manage Initiate, Manage
Develop and Perform Internal Develop Develop Product/ Resellers, Sales and Close
Design Processes Assessment Advertising Service Forecast Agents, Brokers, Telemarketing Infrastructure
Processes
Strategy Distributors Sale

Deloitte Delivering Complex Programs with Consistency and Success 37

En la etapa de “Controlar” se monitorean diseñan los tableros de
control y se realizan revisiones a los procesos

Definir Medir Analizar Implementar Controlar

En esta etapa se monitorean los procesos y su desempeño, de acuerdo a lo planificado,

retroalimentándolos.

Actividades Claves
• Diseñar el tablero de control de los KPIs.
• Monitorear los KPIs y establecer la eficiencia de los procesos.
• Levantar alertas en caso de ser necesario.
• Realizar análisis causa-efecto para los procesos con bajo desempeño.

Herramientas

Deloitte Delivering Complex Programs with Consistency and Success 38

Integrate Phase Outputs

At the conclusion of the integrate phase, three principle outputs will have been developed that will be further utilized
in the Execute phase

Outputs from Integrate Phase

1 Implementation Plans 2 Interdependency Alignment 3 Transformation Roadmap

Imperative Operationalize Integrate Execute Sustain

Deloitte Delivering Complex Programs with Consistency and Success 39

Phase Four: Execute

The following describes how to support a client’s transformation journey

PgM Journey Description

1. Strategy and Transformation Imperative • Understand strategy and the transformation imperative facing the client
Imperative

• Establish the transformation objectives and guiding principles for decision making, and manage
2. Objectives, Guiding Principles & Stakeholder
Stakeholders
Management

3. Preliminary Set of Initiatives • Surface a preliminary set of transformation initiatives for analysis and prioritization
Operationalize

• Establish structures for governance and management of the transformation program

i. Governance Framework
• Define approach for identifying, escalating, making, and communicating key decisions
ii. Decision Rights Framework
• Analyze and rationalize initiatives and establish a pipeline of prioritized transformation initiatives
iii. Transformation Pipeline

i. Implementation Plans • Develop detailed work plans and resource plans for the individual initiatives
Integrate

ii. Interdependency Alignment • Identify and align the dependencies between the initiatives

iii. Integrated Transformation Roadmap • Develop an integrated implementation roadmap for the overall transformation program

i. Delivery Assurance • Monitor and control all aspects of the transformation program and implementation progress
Execute

• Regularly assess the program’s management processes to identify gaps and areas that require
ii. Program Health Checks
additional focus
iii. Executive Reporting • Provide timely, actionable, and metrics-driven assessments of progress to key stakeholders

i. Transition and Knowledge Transfer • Conduct transition and knowledge transfer to Business-As-Usual, and identify lessons learned for the
Sustain

program
ii. Continuous Improvement
• Develop approach and process for supporting and measuring continuous improvement
iii. Program Closure
• Resolve outstanding issues, archive program documents, and conduct client acceptance

Deloitte Delivering Complex Programs with Consistency and Success 40

Execute Phase Outputs

At the conclusion of the integrate phase, three principle outputs will have been developed that will be further utilized
in the Execute phase

Outputs from Execute Phase

1 Monthly Health Check Scorecard 2 Integration Success Metrics 3 Status Reports

Imperative Operationalize Integrate Execute Sustain

Deloitte Delivering Complex Programs with Consistency and Success 41

Phase Four: Execute

The following describes how to support a client’s transformation journey

PgM Journey Description

1. Strategy and Transformation Imperative • Understand strategy and the transformation imperative facing the client
Imperative

• Establish the transformation objectives and guiding principles for decision making, and manage
2. Objectives, Guiding Principles & Stakeholder
Stakeholders
Management

3. Preliminary Set of Initiatives • Surface a preliminary set of transformation initiatives for analysis and prioritization
Operationalize

• Establish structures for governance and management of the transformation program

i. Governance Framework
• Define approach for identifying, escalating, making, and communicating key decisions
ii. Decision Rights Framework
• Analyze and rationalize initiatives and establish a pipeline of prioritized transformation initiatives
iii. Transformation Pipeline

i. Implementation Plans • Develop detailed work plans and resource plans for the individual initiatives
Integrate

ii. Interdependency Alignment • Identify and align the dependencies between the initiatives

iii. Integrated Transformation Roadmap • Develop an integrated implementation roadmap for the overall transformation program

i. Delivery Assurance • Monitor and control all aspects of the transformation program and implementation progress
Execute

• Regularly assess the program’s management processes to identify gaps and areas that require
ii. Program Health Checks
additional focus
iii. Executive Reporting • Provide timely, actionable, and metrics-driven assessments of progress to key stakeholders

i. Transition and Knowledge Transfer • Conduct transition and knowledge transfer to Business-As-Usual, and identify lessons learned for the
Sustain

program
ii. Continuous Improvement
• Develop approach and process for supporting and measuring continuous improvement
iii. Program Closure
• Resolve outstanding issues, archive program documents, and conduct client acceptance

Deloitte Delivering Complex Programs with Consistency and Success 42

Knowledge Transfer Framework

Separate from training for end-users, “Knowledge Transfer” is an integral part of the change process. It is the
collaborative process of building explicit knowledge, skills, and abilities (along with the confidence to apply them)
through activities, mentoring, and other project activities.
Knowledge Transfer Framework

Change Readiness Assessment Communications

Change Risk Wheel
The Change Risk Diagnostic provides a structured approach which can be used to rapidly identify
the critical project risks that need to be addressed in the Change Management Plan
Competing Initiatives
Vision Proposition
What other projects and initiatives will
How strong is the business case?
impact the transformation?

Organization/Infrastructure Vision Focus

How will our culture and How clear is the vision?
organizational infrastructure
support the project?

Migration Plan
How clearly defined are the steps
Stakeholder Resistance to achieving the future state?
How much resistance exists?

Technical/Training Sponsorship
How skilled are individuals in the Technology How much support truly exists?
and organization aspect of transformation?

Distribute communications to ensure

Area Ready for Change Area of Potential Concern Significant Obstacles to Change
Executives Management Employees Project Team

AMTRAK_104_02

Revise opportunities and barriers identified that employees are well-informed about
that must be addressed for the project to and involved in the change
be implemented successfully
Materials: Change Management
Materials: Change Readiness Assessment, Communication Strategy, Phase 1
Phase 1

Knowledge Transfer

Stakeholder Analysis Training

Identify and involve stakeholders with

authority, power, and influence to lead and Develop materials and conduct trainings to
visibly support the knowledge transfer ensure employees are provided skills to use
Materials: Stakeholder Analysis, Phase 1 the new processes and systems to their
work

Deloitte Delivering Complex Programs with Consistency and Success 43

Continuous Improvement – Overview

Continuous Improvement maximizes the organization’s ability to efficiently execute business processes in a way that
is aligned with strategic goals, while ensuring improvements are institutionalized and engrained in the fabric of the
organization.

Components of Continuous Improvement

WHAT WHY WHO

Disciplined approach to continually Institutionalize an approach to track Business as usual, steering committee,
identify and evaluate opportunities for realization of benefits and maintain governance body, and knowledge
service optimization value realization after program close. transfer teams involved.

Identify key metrics that the program

will focus on to drive Continuous
Improvements to the business
Analyze causal hypotheses, identify
root causes, validate hypothesis
Improve by developing ideas to
address root causes, test solutions,
execute improvement
solutions/measure results
Control and maintain performance by
establishing standard measures to
enable continuous improvement,
communicate results
Sustain transformation objectives by
establishing a repeatable framework to
identify, implement, and measure
service improvement
Measure targeted KPIs, identify
surface level opportunities or
symptoms, baseline operational
processes
Track, monitor, and sustain benefit /
value realization resulting from
transformation
Organizational Leadership sets
strategic direction used to drive the
Continuous Improvement program
Business stakeholders who focus on
business value and business-facing
improvements
Execution teams focused on ensuring
successful transformation (i.e.,
Program, Continuous Improvement
teams)

Deloitte Delivering Complex Programs with Consistency and Success 44

Formal Program Closure

All projects and programs have a finite start and end. Closing projects involves gaining stakeholder and customer
acceptance of the final products and services, and bringing the program to an orderly end.

Closing Process
Processes performed to conclude all activities across the program to
formally complete the program, projects, or phase.

Close Program, Projects, or Phase Close Procurement Process

After Action Review
Focus on final product, service or result Focus on formal closing of contract,
Evaluate
transition, and updating of organizational process procurement artifacts, and procurement-
assets related lessons learned. • What did we set out to
• Administrative Closure: Release project • Contract Closure: Formal closeout of do?
resources, return assets, pack up daily all contracts, review of deliverables, • What did we achieve?
operations, etc. conduct project deliverable acceptance
• What went really well?
• Handover: Conduct review meeting, train − Verify project scope and review
handover stakeholders terms and conditions • What could have gone
better?
− Capture and handover all project artifacts − Update organizational activities
and formal documentation on • What prevented us from
− Receive formal written notice that doing more?
completion/termination of project/phase
contract is completed
• End of Project Learning: Update organization • What can we learn from
process assets, document lessons learned this?

It is important to formally close the program in order to reflect on what can be learned to improve
future transformations.

Deloitte Delivering Complex Programs with Consistency and Success 45

 Rosario Norte 407
Las Condes, Santiago
Chile
Phone: (56) 227 297 000
Fax: (56) 223 749 177
deloittechile@deloitte.com
Simón Bolívar 202
Office 203
Iquique
Chile
Phone: (56) 572 546 591
Fax: (56) 572 546 595
iquique@deloitte.com
Av. Grecia 860
3rd floor
Antofagasta
Chile
Phone: (56) 552 449 660
Fax: (56) 552 449 662
antofagasta@deloitte.com
Los Carrera 831
Office 501
Copiapó
Chile
Phone: (56) 522 524 991
Fax: (56) 522 524 995
copiapo@deloitte.com
Alvares 646
www.deloitte.cl Office 906
Viña del Mar
Chile
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a Phone: (56) 322 882 026
globally connected network of member firms, Deloitte brings world-class capabilities and deep local expertise to help clients succeed Fax: (56) 322 975 625
wherever they operate. Deloitte’s approximately 200,000 professionals are committed to becoming the standard of excellence. vregionchile@deloitte.com

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, any of its member firms or any of the Chacabuco 485
foregoing’s affiliates (collectively the “Deloitte Network”) are, by means of this publication, rendering accounting, business, financial, 7th floor
investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, Concepción
nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or Chile
taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Phone: (56) 412 914 055
Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. Fax: (56) 412 914 066
concepcionchile@deloitte.com
Deloitte © refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of
member firms, each of which is a legally separate and independent entity. Please see www2.deloitte.com/about for a detailed description of Quillota 175
the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Office 1107
Puerto Montt
Deloitte Touche Tohmatsu Limited is a private company limited by guarantee incorporated in England & Wales under company number Chile
07271800, and its registered office is Hill House, 1 Little New Street, London, EC4A 3TR, United Kingdom. Phone: (56) 652 268 600
Fax: (56) 652 288 600
© 2017 Deloitte. All rights reserved. puertomontt@deloitte.com