A
solid business strategy is key to enterprise transformation
success. Senior executives must support this strategy and be willing to
sponsor it. This strategy must be supported by senior executives at all
levels of the organization. Value Realization will
help you understand the characteristics and effects of strategic changes on
your operational, and transformative goals.
What Is Value Realization?
In
its simplest form Value Realization is the ability to measure and quantify the
impact of people or projects on executive business goals. The
value that an enterprise project provides to a stakeholder, business, or
individual gives them a tangible method of measuring the impact on customers,
operations, shareholders, and ultimately their own business. Enterprises
can accelerate their hybridcloud journey by aligning with
business outcomes. This is achieved by clearly establishing a
risk-adjusted Return On Investment (ROI), for an overall
portfolio transformation using insight and evidence.
Why should you embrace value realization?
Leadership
behavior and coaching are crucial to achieving lasting
change. Organizations and teams need to be flexible and open to change in
order be effective. Clear metrics are essential to avoid going back to the
old ways of doing things. This requires you to understand your goals and
establish a baseline. Value Realization helps you quantify value and
indicates that you are making significant progress in your transformation
journey.
For
a journey towards Value Realization, the Objectives and Key Results approach
(OKR ) is essential. It is market-leading. The OKR approach can be used to
set goals and improve performance. These objectives are aligned with the
enterprise strategy, and they are linked to the key outcomes of that
strategy. Key Performance Indicators (KPIs) are used to identify key
outcomes. These KPIs can be tangible outcomes of various initiatives. The
KPIs can then be rolled up into results, which gives direct visibility to the
business’s ultimate goals.
What are the Benefits of Value Realization Implementation
We have seen
significant improvements in aligning KPIs with organizational goals. This
includes a 40% decrease in Total cost of ownership (TCO) and a
25% quicker time to market. An enterprise can use a standardized approach
that was developed by a Cloud Center of Excellence to allow
distributed agile rollout of value realization. The CCoE will shift its
focus to standardizing your approach, measuring value, and accelerating change
as organizational agility increases. The Value Realization Office , which
is a group made up of leaders, can help you to define the most
effective leadership practices.
In the
beginning, the VRO focuses on evaluating current parallel agile practices in
order to determine if they can be logically standardized across the
enterprise. The VRO is responsible to align teams to the enterprise design
and to pilot scaling to new team members using standard design for
scaling. Based on lessons learned from pilot areas and existing agile
teams, the VRO refines and iterates the scaling model.
Clients who
establish Value Realization Offices have seen the following benefits:
The OKRs of
the client are correlated to c consistent and quantified results
Empowered
leadership who makes decisions and sees tangible outcomes
based on KPIs
Enable team
performance improvement with data-driven decisions
Teams with
clearly defined KPIs, and integrated reporting
All levels of
the organisation are more responsible
The key
outcomes can all be achieved by a team connected
How can you continuously realize your business's value?
Enterprises
must communicate clearly what the enterprise strategy and technology goals are
to help them achieve their business goals. VROs ensure alignment of the
business strategy by monitoring and adjusting. VROs will
create a framework with key metrics that quantify outcomes and link them back
to strategic goals. This will allow greater transparency and
accountability.
Many KPIs
will be required for the cloud transformation journey. These include a
faster time to market and a better customer experience. These KPIs also
reflect increased productivity and employee satisfaction. These KPIs are a
single source for truth and help to drive enterprise value. It is
essential to have one source of truth that all stakeholders can
access. This provides transparency and allows you adjust your goals as
necessary. This dashboard can only be created when there is a
well-designed matrix of business outcomes , which are mapped to key objectives
metrics within the organization.
Governance is
all about combining elements of Value Realization with process and people
accountability. It is not about a Project Management Office, but about making
decisions. Governance is about taking decisions from the bottom. It
is crucial for leaders to be proactive and remove obstacles from the team,
empowering them to make changes over time. middle managers can help
accelerate change by becoming authentic, people-centric and emotionally
intelligent workers.
To track OKRs
and KPIs, a flexible governance system is combined with
constant alignment with leaders to enable quick pivots and interventions that
are in line with objectives. This gives teams sufficient headroom and
eliminates distractions. It also clarifies the time commitment needed to
achieve objectives. Stable operations are vital, but outages and delays
can lead to loss of savings.
Summary of Value
Realization
Value
Realization requires a new way of looking at how to measure and drive business
goals across companies. To ensure success, the Value Realization solution
must be cross functional, collaborative, open to all, and include a wide range
of stakeholders. Value Realization involves both strategic leadership as
well as practical actions.
You have the
opportunity to coordinate teams through The Value Realization Office. It
will become a core part of the enterprise's DNA. Every decision and every
action will be centered around the question "Is my company able to link
this action or initiative with overall enterprise strategic goals?"
Tags:
value
realization, operational and
transformative goals, executive level
business goals
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