BUSINESS TRANSFORMATION MANAGEMENT WITH BTM²

By Rob Llewellyn

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The Business Transformation Management

Methodology (BTM²) is a four-phase holistic
and integrated business transformation
management methodology developed.
This post serves as an introduction to an
intensely documented approach to holistic
business transformation management, which
addresses the transformation journey from
strategy through to business benefit realisation
and everything in between.

STRATEGY MORE DIFFICULT TO

DEPLOY THAN DEVELOP

It is often said that strategy is three times more

difficult to deploy than develop, which explains
why so many strategies result in a painful
execution journey for everyone involved.
Budgets and timelines are frequently exceeded
and stakeholders get tired of the noise excreted
from the project, programme or portfolio due to
inadequate transformation orchestration.

The colourful benefits on display in the

business case begin to fade as it becomes
clear that the planned return on investment is
diminishing as more time and resources are
sucked into the initiative. This is not to mention
the fact that the people and business areas
that will inherit the new world, are ill prepared.

This is a reality in many companies, because

they lack the right transformation tools and
transformation management capabilities. The
failed BBC Digital Transformation is one
example, and thousands of others are swept
under the carpets of companies who thrive on
operational excellence, but discover to their
cost that, transformation excellence requires a
very different set of capabilities.

“70% of siloed digital transformation

initiatives will ultimately fail due to
insufficient collaboration, integration,
sourcing or project management.”
– IDC

HOLISTIC TRANSFORMATION

BTM² was the world's first holistic business

transformation management methodology that
provides a framework with clear phases,
deliverables and corresponding methods. It is a
generic framework, which can be applied to
different business transformation use cases,
and is not specific to one business function,
technology or industry.

BTM² is a leading holistic and integrated

business transformation methodology which is
based on academic and business research and
has been used and validated in multiple
business cases. It is described in this 348 page
reference book which refers to countless
external resources. So this article can serve
only as a short introduction to the mission
critical subject that many organisations still
struggle to get right.

FOUR PHASES OF
TRANSFORMATION

There are four phases in the of BTM²

transformation lifecycle, which are:

• Envision
• Engage
• Transform
• Optimise
NINE TRANSFORMATION
MANAGEMENT DISCIPLINES

BTM² consists of nine transformation

management disciplines which are:

• Meta Management (Leadership, Culture,

Values, Communication)
• Strategy Management (Transformation
Direction)
• Value Management (Transformation
Direction)
• Risk Management (Transformation
Direction)
• Project and Programme
Management (Transformation Enablement)
• Business Process
Management (Transformation Enablement)
• IT Transformation
Management (Transformation Enablement)
• Organisational Change
Management (Transformation Enablement)
• Competence and Training
Management (Transformation Enablement)
TRANSFORMATION MANAGEMENT
COMPONENTS

The illustration above shows a very high level

of BTM². The next level down is shown in the
chart below and a detailed body of knowledge
resides within each of the many components.
AN INTRODUCTION TO EACH
MANAGEMENT DISCIPLINE

META MANAGEMENT

In the context of business transformation,

Meta Management provides the overarching
frame for a business transformation and
provides the linkages amongst the disciplines
and also the management structure, which will
allow the transformation process to be
effective. It addresses individual disciplines
which include guidelines, leadership, culture,
values, and communication.
STRATEGY MANAGEMENT

In the context of business transformation,

Strategy Management primarily addresses the
Envision phase of the transformation life-cycle,
during which a strategy is developed. Strategy
Development involves the selection of
appropriate team members, collection of data,
analysis of transformation needs and
readiness, design of a business vision, and a
business model and the definition of an
integrated transformation plan.

VALUE MANAGEMENT

In the context of business transformation, Value

Management involves defining the business
benefits and changes needed to realise them,
evaluating the feasibility of making the
changes successfully, and producing an
evidence-based, rigorous business case and
supporting benefits realisation plan. Value
Management relies heavily upon the
engagement of stakeholders in the preparation
of the business case and benefits plan to
create the knowledge and commitment
required to realise the benefits described in the
business case.

RISK MANAGEMENT

Risk management provides fundamental

guidance to the planning, development and
effective execution of a business
transformation. It is vital that business
transformation managers to manage the risks
that relate to the process of transforming their
organisation towards a desired future state and
those risks that relate more to the possibility
that this desired state becomes either obsolete
or sub-optimal.

BUSINESS PROCESS
MANAGEMENT

Business Process Management defines the

scope of process changes needed for the
expected improvements in performance. To
make the transformation effort a continuous
success, business processes have to be
considered from a strategic perspective. The
identification of end-to-end business processes
and the assignment of responsible process
owners is a major task. It is important to
understand that process management does
not equal process modelling, but rather the
relationship between IT, Business and People
related tasks.

IT TRANSFORMATION
MANAGEMENT

IT Transformation Management evaluates the

impact of current IT processes,
competencies and systems on business
transformation, and vice versa. It assesses and
enables solution readiness of the business,
defines and assesses the gap between the as-
is and to-be of IT, deploys IT operations and
services, and implements IT governance. It also
improves IT operations and services, and
manages the IT lifecycle.
ORGANISATIONAL CHANGE
MANAGEMENT

Organisational Change Management (OCM)

addresses the human element
of business transformation. It deals with the
people who have to change their ways of
working and involves setting up a foundation
for effective OCM with respect to governance
and assessing organisational change
readiness. Establishing and implementing
stakeholder communication and performance
management strategies, and continuously
receiving feedback to make improvements is
key.

COMPETENCE AND TRAINING

MANAGEMENT

Competence and Training Management

provides qualification and enablement with
respect to the competences required for
business transformation, and the strategic core
competences vital for the company's future
success. Competence and Training
Management identifies and analyses training
needs and objectives, develops training
measures for the identified gaps, foster the
learning transfer and analyses the success of
the measures.

PROJECT AND PROGRAMME

MANAGEMENT

Programme management aims to support the

implementation of the transformation strategy
in order to achieve the business benefits
described in the business case. Programme
management focuses on high-level
specification and the “why and what” of
transformation. It includes stakeholder
management, benefit realisation, dependency
management, transition management/change
acceptance and integration with corporate
strategies. Project management focuses on
detailed specification and the “how” of
implementation, along with control of activities
to produce products.
LISTEN TO A BTM² INTRODUCTION

THE BUSINESS OF DIGITAL

TRANSFORMATION
If digital business transformation efforts are to
be successful, all of the above nine
transformation management disciplines need
to be adequately addressed, and it is worth
noting that technology is just one of nine
disciplines in the list. This highlights the fact
that transformation is less about technology
and more about people and business.

Organisations need to ensure that their digital

business transformation leaders do not fall into
the pitfall of placing an unbalanced
emphasis on technology, process and some
project management, while paying lip-service
or light touches to the other transformation
management disciplines. Research has shown
that this common error is the basis for
countless failed and struggling transformation
programmes throughout the world.

WHY USE BTM² ?

• BTM² is based on extensive academic

research and commercial knowledge
• BTM² helps its adopters build credibility
among their business peers
• BTM² is an objective, unbiased framework to
identify and solve business challenges
• BTM² is a ideal tool for regular and quick
assessments of business transformation
• BTM² addresses both the rational and
irrational aspects of business transformation
• BTM² distinguishes managers/leaders who
use a proven approach to transformation
• BTM² creates a competitive advantage
• BTM² is not focused on any particular
technology or company
• BTM² is open for any organisation to use
without having to engage a partner
• BTM² provides guidance, support and
structure for transformation programmes

This BTM2 online course is an affordable and

convenient way to upgrade your own
capabilities, to better manage and lead
transformation.
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