Transforming Business with Program Management

63

4

Secure Cross Functional

Executive Sponsorship

Sponsorship is the single most important factor in ensuring successful

transformation of a business through program management. Numerous

studies on transformation programs have shown that one of the major

obstacles for transformational change is the lack of executive commit-

ment to the program. For a complex program to be successful in realizing

the program vision, achieving business objectives, and delivering the tar-

geted business outcomes, the need for an executive champion through the

course of the program is critical. Sponsorship is this executive commit-

ment and championship, and typically this role is titled executive sponsor.

e program executive sponsor authorizes, legitimizes, and demonstrates

ownership of the program. Since the program management team con-

fronts sticky cross divisional and cross functional issues, risk, changes,

constraints, and obstacles, the program manager ensures that the program

gets the highest level sponsorship from the executive sponsor throughout

the program management life cycle. Program sponsorship is needed at

multiple levels and in varying degrees at dierent stages of the program to

change the business. e program manager ensures that the sponsorship

needs are being met from program start to end.

e following topics are described in this chapter with the help of sup-

portive illustrations, including a real world case study:

• Sponsorship of business transformation program

• Multilevel program sponsorship model

• Program value justication technique: Overview, objective, approach,

and helpful hints

• Upward management of program sponsors

64 • Transforming Business with Program Management

• Sponsorship of program outcome delivery and benets realization

• Case study: Program to transform procurement function via

outsourcing

SPONSORSHIP OF BUSINESS

TRANSFORMATION PROGRAM

Most transformation programs are complex, as they drive signicant busi-

ness change across organizational boundaries and impact a large number

of stakeholders. e business change denition and impact analysis work

of the program team coupled with the stakeholder analysis provides the

key inputs to develop the sponsorship model. e example in Figure4.1

highlights the nature and layers of sponsorship needed on a typical trans-

formation program.

Executive Sponsor

Manufacturing,

Supply Chain,

Distribution

Sales,

Marketing,

Products

Program

Manager

and

Program

Management

Team

(Business

and

Technical)

Requirements Denition and Finalization – Business and Technical

Solution Design – Logical and Physical

Systems Development/Conguration

Organization Change Management – Impact, Communications, Training, and Readiness

Architecture Development – Business, Technical, and Organization

Implementation – Processes and Systems

Transition to Operations and Closure

Testing –Workow, Integration, Systems, and User Acceptance

Steering Committee

Services,

Finance,

Compliance

IT, Customer

Service, HR,

Legal

Functional Leadership

Program Delivery Tracks

Process Analysis and Redesign – Business and Technical

Business

Advisors

Technical

Advisors

Track/Project

Sponsors

FIGURE 4.1

Sponsorship model for a typical transformation program.

Secure Cross Functional Executive Sponsorship • 65

e program sponsorship model is designed to have the vertical (or

functional) sponsorship as well as the horizontal (or track) sponsorship.

is program is impacting stakeholders in numerous business functions

(e.g., sales, supply chain, and nance), and functional level sponsorship is

necessary to either comply with or commit to the changes within those

functions. e cross functional changes that this program is driving can

be implemented with executive sponsorship, as that organization level pos-

sesses sucient power and inuence to do the same. e business change

the program is driving is supported by the program steering committee

comprising inuential stakeholders from the impacted business areas.

e illustrated program has numerous horizontal delivery tracks to

facilitate execution of this program. Each of these tracks is led by project

manager(s), and each track is ultimately owned by a track sponsor. e pro-

gram manager and track sponsor collaborate in ensuring the highest level

support to the program delivery tracks. So, if the team tasked with tracking

the business and technical requirements is encountering any obstacles, the

program manager can support that team by eliminating the barriers.

Typically, the program manager plays the sponsor role for the project(s)

in the delivery tracks. Based on the organization’s structure, funding

mechanisms, and responsibility boundaries, it is possible for a non program

manager to play the project sponsor role for a subset of the projects con-

stituting the program. However, in such a scenario, the sponsoring indi-

vidual partners with the program manager are directing and supporting

that project subset. e transformation program manager ensures that the

ultimate goal—getting the right stakeholders to engage in the right pro-

gram activities at the right times—is achieved on the program.

e delineation of roles and responsibilities within the core program

team is essential. Figure4.2 highlights the following six roles in the con-

text of the sample transformation program presented here:

• Executive sponsor

• Steering committee

• Program manager

• Track sponsor

• Project manager

• Core team