This Guest paper was originally published in August 2013 on the PICARO website.
After some editing to make for easier web site reading, it is reproduced here with the permission of the author. Copyright Leopoldo Innecco © 2015
Note: US spelling of the original text has been adopted.

Published here March 2015.

Introduction | PICARO | Propose Transformation Phase
Collect and Analyze Transformation Drivers | Align Transformation Strategy and Organization
Understanding Corporate Success Factors | The PICARO Tree of Life | Rollout Transformation

Collect and Analyze Transformation Drivers

The beginning of this phase comprises the Stakeholder Needs Analysis (SNA). To paint a complete picture of an organization and the environment in which it operates, it is important to understand what could drive them to change. Hence it is critical to map the needs of all stakeholders, internal or external, customers or suppliers.

This will help the organization to understand the role they play in their value chain and understand what is expected of them and how they can contribute to value creation in it. It is surprising to see how many organizations expect to sell what they produce without ever listening to their customers. Customers are the ultimate decision makers on your future revenue. Therefore, listening to what they have to say is the first and most important step towards ensuring a sustainable business.

Some methodologies focus on undertaking an initial gap analysis to establish which initiatives should be followed going forward. But this raises the question: "How can we choose the path we should take if we do not yet know our destination?" This forces people to avoid blindly choosing what they think is important, without first creating a vision, or defining critical success factors, to justify the adoption or rejection of individual component initiatives.

In addition, how can you do any sort of gap analysis or establishing priorities before you know what your revenue decision makers expect of you? This is the reason why the SNA is done right at the beginning of the project. The Stakeholders Needs Analysis combined with the As-Is analysis, is where the peak in resourcing needs happens in business transformation projects.

This peak is mainly driven by the need to meet several people in the same short period, analyze large amounts of data, and consolidate everything into a format that is easy to understand. All this must be linked back to the reason why the organization exists. Don't underestimate the complexity around identifying and scheduling interviews with stakeholders, as this could most certainly lead to project delays if not properly planned and handled.

Once the forgoing work is completed, it is possible to undertake and deliver the Initial Gap-Analysis. Although the strategy is not yet formulated, it is nevertheless possible to do two types of gap analysis. The first is between what the organization does and what their customers expects from them, and the second is between what the organization does and accepted best practices. This deliverable focuses on establishing how much alignment exists between what the organization thinks contributes to their value chain and what actually creates value in the eyes of their stakeholders.

The reference to best practices only serves the purpose of helping establish a point of reference on how to best meet their stakeholders' expectation and create the demanded value creation. The completion of this deliverable provides the last input for the project to start formulating the new strategy; it marks the split between the past and the future. This demarcation represents a milestone wherein the "Current State of Affairs" is validated.

Propose Transformation Phase  Propose Transformation Phase

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