Sustaining Cultural Change

This article is the final one in a trilogy focussed on enacting change. The previous instalments were as follows:

  1. Marketing Change
  2. Education and cultural transformation.

The first two pieces covered generating enthusiasm for change in advance of enacting it and then the role that professional training has in repositioning behaviours. I left off with the first training event having been a success. I will pick up the story from this point and seek to answer the question: how do you sustain initial success over the medium term?

Before starting to discuss some approaches that worked for me in this area, I should remind readers of the context. This was delivering a new BI system in a European insurance organisation with the explicit aim of enacting a cultural transformation; in this case making top-quality management information part of the corporate DNA.
 
 
Introduction

flying-buttress-h200

It is part of human nature to sometimes rest on your laurels. Having worked hard to make sure than something goes well, it is tempting to sit back and admire what you have done. Unfortunately gains are not always permanent and indeed may be quickly eroded. It is a useful to recall the adage that you are only as good as your last performance. As in a sporting contest, when you have made a good start, it is then the time to press home your advantage.

After our first successful training session, we had several other waves of training for our first report family – in fact we trained over 300 people in this first activity, 150 more than we had anticipated, such was the demand that we had generated and the positive feedback from people who had attended. But at this stage we had only won the first battle, the outcome of the war remained in the balance. We had made a good start, but it was important that the team realised that there was still a lot of work to be done. In this final article I want to talk about some of the ways in which we sustained our focus on the system and managed to embed its use in day-to-day activities.
 
 
Using new functionality to reinforce training

By the time the training team had come to the end of its first phase, the development team had produced its second report family. This was aimed at a slightly narrower group of people, so training was a less extensive task. Also we were showing new BI functionality to people who were already users, or at least had attended the training. The training for the second release was just a half day, but we asked people to book out a whole day. The extra time was spent in attending either a refresher course (for people who had not been confident enough to use the system much after initial training) or a master-class (for those who had taken to it like a duck to water). We also offered these two options to people who were not recipients of the second report family.

Inevitably there were initially some people who were not 100% converts to the new system at first; crucially less than half of users fell into this category. Over time both the enthusiasm of their peers and the fact that early adopters could present information that was not generally available at internal and external meetings began to exert pressure on even the most sceptical of people.
 
 
Travelling to the users

With later report families, which were again aimed at the mass market, we change our approach and travelled to give training in different countries. This helped to tailor our training to local needs and prevented anyone becoming isolated by language issues. Again when we travelled we would go for two days and have two half-day formal classes. The other half days were taken up with refresher courses, master classes or – something that started to become more and more requested – one-on-one sessions. These are in many ways ideal as the user can go at their own pace and focus can be on compiling and saving reports that are directly pertinent to them – classroom work has of its very nature to be more general.

Sadly we did not have unlimited funds to travel round Europe, so these one-on-one sessions morphed into using the telephone and network facilities with the trainer “taking over” the PC of the delegate to work together. This approach has also been very successful on our Help Desk.
 
 
The importance of the Help Desk

Speaking of the Help Desk – because the BU systems was very business-focussed people tended to raise business-focussed questions (as opposed to “when I click on this button, the system locks up”). This meant that the Help Desk needed to understand both the technology and the business and we used our business analysts and trainers to staff it – this is high-end resource to apply, but they were just as proud of the system as the extended team and wanted to help people to get the best of it.
 
 
Summary

So, we were relentless. We didn’t really ever lower the intensity we had established when launching the system; business adoption and retention both reflected this. Even once our cultural change had been mostly achieved and BI had become as much part of everyday life as the ‘phone or e-mail, the team continued to put just as much effort into new releases. The contributions of professional training and a business-focussed Help Desk functions were both indispensable in sustaining our success.
 

A common-sense approach to BI from Information Management

information-management

I am not sure whether it is the economic crisis focusing minds, or if there has been a turning point in the maturity of BI, but there seem to have been quite a few common-sense articles about the area recently. One I have just read is by Fei Luo at Information Management. The article may be read here.

Much of what Fei has to say chimes with my own experience of successfully driving change using BI in organisations. In particular, the observations about business involvement, having a strategy, regular business communication and the importance of training are all well-made. I would go even further saying that good BI projects must have a proper business / IT partnership at their centre; one that goes beyond business involvement and becomes business commitment.

My further thoughts about some of the themes raised by Fei Luo’s article can be viewed in the following blog posts:

Business involvement:
Having a strategy:
Business communication:
The importance of training:

I was pleased to see these areas being drawn together in a single, cogent article.
 


 
Fei Luo is vice president of information services at City National Bank, a public bank headquartered in California. Fei Luo can be reached at Fei.Luo@cnb.com.
 

BI and a different type of outsourcing

outsourcing

The current economic climate seems to be providing ammunition for both those who favour outsourcing elements of IT and those who abjure it. I’m not going to jump into the middle of these discussions today (though I am working on an article about the pros and cons of outsourcing BI which will appear here at some future point). Instead I want to talk about another type of outsourcing, one that ended up being a major success in a BI project that I recently led. The area I want to focus on is outsourcing analysis to the business.

The project was at an Insurance company and in these types of organisations one hub for business analysis is the actuarial department. These are the highly qualified and numerate people who often spend a lot of their time in simple number crunching with the aim of ensuring that underwriters have the data they need to review books of business and to take decisions about particular accounts. As with many such people, they have both the ability and desire to operate at a more strategic level. They are sometimes prevented from doing do by the burden of work.

As I have explained elsewhere, an explicit aim of this project was cultural transformation. We wanted to place reliance on credible, easy-to-use, pertinent information at the heart of all business decisions; to make it part of the corporate DNA. One approach to achieving this was making training programmes very business focussed. One exercise that the trainers (both actuarial and indeed me) took delegates through was estimating the future profitability of a book of business based on performance in previous years (using loss triangulation if you are interested). This is a standard piece of actuarial work, but the new BI system was so intuitive that underwriters could do this for themselves. Indeed they embraced doing so, realising that they could get a better and more frequently updated insight into their books of business in this way.

This meant two things. First the number-crunching workload of actuarial was reduced. Second when underwriters and actuarial engaged in discussions, for example around insurance estimates to be included in year-end results, the process was more of an informed dialogue than the previous, sometimes adversarial, approach. Actuarial time is freed-up to focus on more complex analysis, underwriters become more empowered to manage their own portfolios and the whole organisation moves up the value chain.

This is what I mean by the idea of outsourcing analysis to the business. In some ways it is the same phenomenon as companies outsourcing internal administrative tasks to customers via web applications. However, it is more powerful than this. Instead of simply transferring costs, knowledge and expertise is spread more widely and the whole organisation begins to talk about the business in a different and more consistent manner.

It’s nice to be able to report a success story for at least one type of outsourcing.
 

Cindi Howson at Intelligent Enterprise on using BI to beat the downturn

cindi-howson-w250

Another interesting article, this time by Cindi Howson at Intelligent Enterprise. In this Cindi speaks about Four Business Intelligence Resolutions for 2009:

  1. Using BI to beat the downturn
  2. Developing a BI Strategy and Standardising
  3. Training Users, and
  4. Investing in yourself

I found some interesting parallels between Cindi’s thinking and my own. For item one, see the “BI and the Economic Crisis” category. For item two Holistic vs Incremental approaches to BI is possibly pertinent. Finally, I echo some of Cindi’s themes from item three in Education and cultural transformation.
 


 
Cindi Howson is the founder of BIScorecard, a Web site for in-depth BI product reviews. She has been using, implementing and evaluating business intelligence tools for more than 15 years. She is the author of Successful Business Intelligence: Secrets to Making BI a Killer App and Business Objects XI R2: The Complete Reference. She teaches for The Data Warehousing Institute (TDWI) and is a frequent speaker at industry events.
 

“Can You Really Manage What You Measure?” by Neil Raden

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I have to say that BeyeNETWORK is becoming the go to place for intelligent BI insights.

In this recent article, Neil Raden challenges the received wisdom that, if you can measure something, managing it follows as a natural corollary. This is a problem that I have seen in a number of BI implementations. It can be characterised as the Field of Dreams problem, if we build it, they will come!

One way to better align BI provision with the management of an organisation is to make sure that any BI element that you deploy is targeted at answering a specific business question. It is important that answering the question leads to action.

If the reaction to learning that sales in the Philadelphia office are down by 2% is a shrug, then not a lot has been achieved. If instead it is easy to further analyse the drivers behind this (e.g. which part of the sales funnel is suffering from a blockage?, is this a temporary blip, or a trend?, is the phenomenon centred on a specific product, or across the board?, etc.) then we begin to embed the use of information to drive decision-making in the organisation. If this leads to an informed telephone conversation with the Philly branch manager and the creation of an action plan to address the fall-off in sales, then BI is starting to add value. This gets us into the area of Actionable Information that Sarah Burnett writes about.

This is one reason why it is important that business intelligence is considered within a framework of cultural transformation; one of the main themes of this blog.
 


 

BeyeNETWORK provides viewers with access to the thought leaders in business intelligence, performance management, business integration, information quality, data warehousing and more.

Neil Raden is an “industry influencer” – followed by technology providers, consultants and even industry analysts. His skill at devising information assets and decision services from mountains of data is the result of thirty years of intensive work. He is the founder of Hired Brains, a provider of consulting and implementation services in business intelligence and analytics to many Global 2000 companies. He began his career as a casualty actuary with AIG in New York before moving into predictive modeling services, software engineering and consulting, with experience in delivering environments for decision making in fields as diverse as health care to nuclear waste management to cosmetics marketing and many others in between. He is the co-author of the book Smart (Enough) Systems and is widely published in magazines and online media. He can be reached at nraden@hiredbrains.com.
 

Gartner says “BI must transform and improve businesses”

The title is paraphrased. The actual quote, as reported on BeyeNETWORK, is as follows: –

“Organizations will expect IT leaders in charge of BI and performance management initiatives to help transform and significantly improve their business,” said Nigel Rayner, research vice president of Gartner. “This year’s predictions focus on the need for BI and performance management to deliver greater business value.”

To me this immediately suggests one, potentially awkward, question – what on Earth have some BI initiatives been focussed on before 2009 if it was not transforming and improving business?
 

Education and cultural transformation

Back in September of this year, Obis Omni were kind enough to invite me to speak at their Forum 2008, which took place on the outskirts of London and had the theme of “Realising Business Intelligence & Corporate Performance Management Success”.

The strap-line of my presentation was “EMIR – A case study in cultural change”. I have written about some of the themes that I discussed at this seminar elsewhere on this blog (e.g. about the importance of promoting your project in Marketing Change and the strong role to be played by extended business teams in Scaling-up Performance Management). In this article I am going to talk about some aspects of the pivotal area of education.
 
Obis Omni
 
Background on The EMIR Project can be found elsewhere on this site. Briefly it was a business intelligence / data-warehousing project aimed at improving the profitability of the European operations of a multinational insurance organisation.

More importantly, EMIR was always seen as primarily a cultural transformation initiative. The explicit aim of the system was to transform the culture of the organisation into one in which the use of credible, timely and easy-to-use information became as much second nature as picking up the telephone. Of course one initial learning here is that if you are in the business of cultural transformation, it helps an awful lot to tell people that this is the case. Having this element as a public goal was of great assistance.
 
 
Making a good first impression

Having already established a strong extended business team (see the links in the first paragraph above) the project team also realised that there was another important group to win over; our first set of 20 or so training delegates. We felt that if they went back to their offices singing the praises of EMIR then this, supported by the voices of the extended team would give us the necessary momentum to carry us through the first training phase and make a great start to our cultural change work.

It is often said (perhaps sometimes glibly) that as much attention should be paid to the deployment of IT systems as to their development. Many IT managers may not truly believe this in their heart-of-hearts, perhaps an “if I build it, they will come” attitude is sometimes more prevalent. However, with the EMIR project we took the educational aspect extremely seriously.

To start with this we made EMIR training a 3-day event, something that was unprecedented in IT training in the organisation. Second, we insisted that all delegates (the senior managers of the European organisation) travel to London to attend the course*. One reason for the duration was that we wanted to cover a lot of ground, but also we wanted to send a message that this was an important event and merited the devotion of an appropriate amount of time.

A lot of effort and thought went into the presentations that would be made, the different styles of training (some lecture style, more hands-on), the quality of the supporting training materials, the arrangement of the rooms and so on. I assigned one of my senior managers to oversee the training and we also employed an external training consultant to help us design the courses and user guides and achieve the professional look that we were going for.
 
 
The importance of real-life examples

Sometimes training simply explains how to use the technical features of a system, but, again, we were in the business of cultural transformation and so this shifted opur emphasis. Because of this, and also because the system was pretty intuitive and easy to use, in training we focussed on using the system to address real-life business problems. One example of this would be estimating the future profitability of a book of business based on historical trends.

This approach meant that the business value inherent in the system was clearly demonstrated. This was not an IT system, it was a business system. A key first step in changing the behaviour of managers was establishing that there was something in it for them; namely that they could get at information that was previously unavailable, that access to information was quick and easy and that their decision-making would be enhanced. Ticking these boxes through our real-life exercises helped to engage the enthusiasm of delegates and made them more receptive to our other proposals for how to build use of the system into their day-to-day lives.

This business-focussed training was initially carried out by our actuaries, however as demand for training soared in later weeks, I also ran many of these workshops. It was potentially a major challenge for an IT person to be telling insurance underwriters how to run their business, but something that I actually enjoyed very much. While discussing training personnel, we always had at least two people present in the classes as well as the lead trainer. The role of these other people was to check that delegates were keeping up and help anyone who was struggling with an exercise. We did not want anyone to fall so far behind that they became disengaged from the programme.
 
 
Breaking the back of cultural change

Our approach worked and our first twenty delegates became converts to the EMIR cause. Before the first training session, delegates has (understandably) been somewhat reluctant to commit so significant a period of time to the training process. After it an example of the type of message that attendees took back with them to their offices was: –

“This is the best management information I have seen, it represents a big leap forward”

It was not all down-hill from this point and a further article will deal with how we sustained cultural change over the latter stages of this project. However, after this initial success, some things became easier and we had safely negotiated what was probably the largest hurdle in the project.

Given this, I was quite happy to release some project funds for champagne at the end of our first three days, but should stress that the project was brought in under budget nevertheless.
 


 
Continue reading about this area in: Sustaining Cultural Change.
 
 
Note: –

* In latter training phases – having succeeded in making our point – training was often carried out in each European country, something I will cover in the future.
 

Holistic vs Incremental approaches to BI

There is a strong link here to my Vision vs Pragmatism article. In this I argued that Vision and Pragmatism are both essential for the success of any project, be that related to change, to IT, and certainly when using IT to drive change. Unsurprisingly, similar comments apply to whether a holistic or incremental approach to BI is the superior route. However, in this case, I will come down more firmly on the side of one of the options.
 
 
The benefits of an incremental approach

Of course the secret of the success of many projects is their incremental nature. Incremental deliveries, particularly those early on in a project, enable you to do a number of things, including: –

  1. Proving that business value can be added the work that you are doing
  2. Showing tangible evidence of progress
  3. Demonstrating that the project team is responsive to business priorities
  4. Chopping up funding into more digestible parts
  5. Providing early exposure to change management issues; allowing time to learn from mistakes when still operating at on a smaller scale

Overall incremental work can enhance the credibility of a project team and thereby made it easier to secure senior management support. Such work is indispensable to any project.
 
 
How does the sum of the parts measure up?

However there is a point to be made here in favour of a holistic approach which goes beyond my previous preference for always having an overarching vision. This is something that is specific to business intelligence and relates to the nature of information delivery. In a nutshell the sum of several incremental BI developments may be considerably less than the whole if each is not part of an overall strategy.

BI is about having the information necessary to run the business. However, it is also about how that information is delivered and how internally consistent it is. Often BI projects aim to address a fragmentation of existing reporting systems that leads to confusion amongst users and even a general distrust of figures. It is entirely possible to perpetuate this situation, simply replacing older reporting technology with shiny new ones. Each of these new systems may be easier to use that its predecessor and offer significantly greater access to information, but the fragmented nature of information provision will not have been addressed; it may even have been made worse.
 
 
A single platform

The ideal for a BI solution is to have a single platform which supports all pertinent reporting needs. There will undoubtedly be different segments of this, tailored to different groups of users, but these should use subsets of the same dimensions and measures and the same reporting and analysis tools should be used. Adhering to these precepts means that when users of one part of the system need to employ another part, they are not taking a step into terra incognita, but instead are familiar with their surroundings and get the sense that the same logic pervades all of the system.

On a practical level, this approach minimises costs due to software licenses and simplifies your technical architecture, again keeping a lid on expenditure. Fewer people are also needed to both build and maintain a single, central system than many divergent ones. Just as importantly, a single-platform approach means that training becomes focussed on business issues rather than the functionality of a different reporting suites. My experience suggests that, after an initial investment in thorough training for users, introduction of new reporting capabilities can be very smooth and efficient in such a set-up.

Of course developing good BI takes time and effort. Getting to the eventual ideal state that I have described above will undoubtedly take some time (in my most recent BI project it took five years to fully realise). This means that there is no real alternative to the incremental approach that I described at the beginning. However, taking a more holistic approach ensures that your incremental deliveries are aligned with both each other and overall business needs. It also means that with each incremental release there is a related reduction in fragmentation. This is the difference between slowly unveiling a large, coherent edifice and revealing several separate sculptures one at a time.
 
 
The link with cultural transformation

In particular if an aim of your BI project is to transform how users behave (of course this should be a central aim of any BI project, what else is BI for?), then this is going to be most easily achieved with a holistic approach where each phase builds on the success of the previous ones. In this scenario, each incremental delivery can be seen more as extending the remit of your BI system to a new area, rather than adding on a new module. Phase N+1 always reinforces the messages from Phases 1 to N. Each step reduces fragmentation, increases consistency and further improves decision-making. This is the best way to make sure that your BI efforts exceed the sum of their parts, rather than falling short of them. Such a rigorous approach is also the best way to ensure that you meet your cultural transformation objectives.
 

Vision vs Pragmatism

The ESA's Herschel infrared space observatory

This time last year, I was a member of a panel on a webinar hosted by Computing and Accountancy Age magazines. This post is not specifically about this webinar, but rather about positions that I regularly found myself taking in response to questions. The questions were along the lines of “Do you think that X or Y is more important in trying to achieve Z?”, my frequent reply was “both”. In fact at one point I recall deprecating my own fence-sitting.

Fence-sitting is not normally seen as the most noble of human activities, it tends to suggest a lack of decisiveness, even timidity. However, when faced with a question as basic as “What is more important for survival, food or water?”, then “both” seems to be the only intellectually credible stance to take. Allowing for the nit-picking point that you will die of thirst quicker than you will starve, over the medium term food and water are equally important. I feel the same about vision and pragmatism in business projects and in business people.

There is nothing that homo sapiens likes more than to pigeonhole his or her fellows. We tend to take a binary approach to people’s skills. Fred is a visionary, but you wouldn’t want him to run a project. Jane is brilliant at the details, but she doesn’t see the big picture. Perhaps we are more comfortable with the idea that the strength of any colleague is automatically balanced by a weakness; it brings them back down to a reasonable level – what the Australians call tall poppy syndrome. Maybe the way that we think about visionary people is also influenced by the connotations of the word, bringing to mind soothsayers, prophets and oracles. All of these historical figures had an other-worldly persona (often literally). They were not like “normal” people. Culturally, those who have visions are seen as a race apart. As Fitzgerald might have said “Let me tell you about the visionary. They are different from you and me.”

Setting aside any psychological angle, there are two points to be made here. First, of course people are all different and are endowed with varying abilities. This means that any successful team needs to have a balance of personalities and skill-sets. If you have some one who is purely a visionary on a team, then that is a great strength (most of the time), but orthodoxy suggests that this needs to be balanced by people who have less ethereal skills. So far, so hum-drum.

The second point is a potentially more interesting one. Maybe, contrary to what I have written above, visionaries are not so different from the rest of us. Instead of being skin-clad augurs with wild hair, maybe visionaries are people who can embrace a certain way of thinking when necessary. Maybe vision is something that you can turn on and off. This certainly chimes with most theory about personality types. Something that is often forgotten is that extrovert / introvert is not a binary choice, but a continuum. Also where some one places on this scale on average, may be quite different to where they place at a particular moment. Some one who is 75% introvert on average may be exceptionally extrovert in certain circumstances. Applying the same logic, some one who is not normally visionary, may be so sometimes and vice versa. So instead of the orthodoxy of having a team made up of discrete personality types, maybe we should realise that the behaviour of team members and what they can contribute may change over time.

There is clearly a lot that could be discussed here, I am going to restrict myself to talking about vision and what is often seen as it alter-ego, pragmatism. The question I will consider is “What is more important for a project, vision or pragmatism?”. This is where I return to fence-sitting, my answer is a resounding “both”. Vision is necessary to work out what to do, pragmatism is necessary to do it; a food and water situation. In fact I would argue that the optimum way to run a project is to initially develop a vision of the ideal outcome, ignoring any constraints. Such an approach is often seen as unrealistic and is tagged with unfavourable epithets such as “ivory tower” or “blue sky thinking”. However it is a necessary step. I much prefer the idea of thinking of what could be achieved and then applying constraints of time, funding and appetite for change, than the opposite where any potential progress is immediately ham-strung by such considerations. If vision is used to define a desirable, but potentially unattainable, Utopia and then pragmatism is used to pare this down to what is achievable, then the resulting strategy will retain some of the shape of the original ideas. It is likely to result in an approach that has a central theme, that is coherent and which will offer a platform for further progress. Applying pragmatism first is likely to yield a fragmented programme that is uncertain what issues it is meant to be addressing and, by seeking to do only what is incremental, will inevitably fall short of what could be possible (even given constraints).

Looking at this issue the other way round. If there is not the second-pass of applying pragmatism to the initial vision (even sometimes to the degree that the vision is rejected as unworkable), then failure is all but guaranteed. Pragmatism is the structural engineer finding solutions to the challenges posed by the architect’s design. It is figuring out the “how” after vision has established the “what” and “why”. It is also one of the main attributes that is necessary for governing execution, suggesting as it does a flexible approach and the maxim that “what counts most is what works best”. It is difficult to envisage how anything other than pragmatism would lead to success in these phases of a project. There is however something else to consider here. Something that sustains projects through execution is often the initial vision. This gives the team a sense of what they are doing and why they are doing it. This can be crucial when the inevitable setbacks are faced. Vision may also need to be switched back on when a major obstacle needs to be overcome or a change in direction is required. Rather than thinking of vision and pragmatism being sequential phases, perhaps they are alternating mind-sets that continue to vie for pre-eminence during a project. On average vision has the upper hand early on and pragmatism in the middle and later stages, but at any given point, it maybe desirable for the positions to be reversed.

This is another echo of the earlier comments about personality types and it is to this area that I will return in closing. Certainly projects need both visionaries and pragmatists; however these can often be the same people. I would argue strongly that a number of people are capable of both developing visions and aggressively pruning these to make them realisable, or chopping them into phases with phase B predicated on the success of phase A. Further I think that a make-up that embodies both vision and pragmatism, together with having the ability to flip between them as dictated by circumstances, tends to be the ideal one for managing projects. Certainly having one person who can encompass “what”, “why” and “how” seems efficient, but this holistic view of the process tends to go hand-in-hand with a passion to deliver. This passion is a product part of vision (believing in your own ideas) and part of pragmatism (owning the delivery of these ideas) and a very powerful factor behind successful projects.
 


 
Continue reading about ideas related to this area in: Holistic vs Incremental approaches to BI.
 

Thank you to Sharm Manwani

Sharm Manwani's Blog

Sharm is Associate Professor of IT at Henley Business School who I was lucky enough to hear speak at the recent Chase Zander Change Director Forum. He was kind enough to link to the article, Business is from Mars and IT is from Venus, that I wrote about this seminar on his blog at Computing.co.uk (the specific article may be viewed here).

I would recommend people browsing through Sharm’s articles which provide a sharp insight on technology’s contribution to business change.