Defining future state capabilities for transformation success

by Abhik Sengupta

by Jessica Flynn

Short termism and a siloed approach are key challenges in implementing technology change. Not addressing these challenges can lead to a tactical improvement focus that prioritises business owners with larger portfolios but less potential business value. What can organisations do to ensure that core capabilities, aligned to desired business benefits are focused on?

Based on experience working across multiple transformation projects, Blackdot has identified the key steps leading enterprises take to achieve implementation adoption and success. Our best practice approach to technology transformations is based on a five-step recipe for success.
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Our previous blog explored step one: Assessing current state

This blog explores step two: Defining future state organisational capabilities. Once the current state has been defined, it is important to start with a clear view of the desired future state organisational capabilities, and the business benefits they can provide.

By focusing on issues that the organisation cares about and capabilities that are core to the business, it is possible to innovate with core capabilities, while standardising enabling capabilities. Many organisations have a siloed view and target tactical improvement of capabilities for a short-term benefit. Business owners with larger portfolios can attract more attention while delivering smaller business value. In order to address this risk, target business benefits to each of the desired organisational core capabilities, to align with value driver uplift. Value drivers can be aligned with desired core capabilities using either the value chain or the customer journey.

BEST PRACTICE TIPS

Get a clear view of desired future state organisational capabilities

Map the desired future state organisational core capabilities across the four components of people, process, technology and assets. Clearly understand each capability and its future state maturity level requirements to map out the gap between current state across the four components. Focus on tangible value drivers like increase in revenue, reduced operational cost or improved efficiency of assets. Establish information objectives early to support on delivery of core capabilities.

Align a business benefit to each capability uplift

Understand benefits for each core capability uplift and their alignment to the organisation’s strategic goals. Identify the magnitude and achievability of tangible and intangible benefits from improving each capability. Assign a single business owner who has the decision rights on each capability and is accountable for delivering the identified benefits. Establish an ongoing continuous improvement and sustainable plan for the desired future organisational capabilities where the delivery and benefits are monitored continuously by the executive.

Align architecture & centralised process management to the business value chain

Align process design and technology architecture to desired core business capabilities for flexibility and agility. Centralise business process management capability to maximise reuse. Reduce siloed views to simplify process and data complexity. Define data and information architecture to master core entities in a single location and support frontline agility by centralising the business process.

What's next?

With the core capabilities appropriately aligned, our next blog outlines how to empower business leaders to develop a technology blueprint to harmonise experience, accelerate innovation & contain complexity in the third step of our ‘5 Steps to Implementation & Adoption Success’ series.

Want to know more about how technology enables organisation-wide implementation & adoption?



Written by Greg Taylor (Principal, Organisational Change) with Jessica Flynn