A Transformation Office makes delivery accountable
Major change programmes often achieve their goals only in part. In a global McKinsey survey, fewer than one third of respondents rated their company’s transformation as successful. Even successful programmes estimate that they realise, on average, only 70 percent of the potential value.
Limit value loss during implementation
According to McKinsey, almost half of the value loss occurs during target setting and planning. Implementation accounts for the largest single share: an average of 35 percent of the value loss. This is precisely where a Transformation Office focuses its work.
Successful programmes realise an average of 70 percent of potential value
Follow up on decisions and responsibilities
The Transformation Office follows up on commitments, connects owners with concrete plans and milestones, and monitors the schedule. When important decisions are not made, it must escalate issues to company leadership and secure a decision.
Build oversight on clear foundations
In our experience, three foundations matter when establishing the office: a measurable target vision, an operating model with clear decision-making rights, and consistent standards for prioritisation, reporting, project management and change management. This makes initiatives from different business functions comparable and manageable.
Three decision-making levels in the operating model
A designated contact from finance
Review outcomes with finance
The link to finance should be established from the start. McKinsey recommends a designated contact within the Transformation Office. This person helps assess whether a completed measure has actually realised its expected value.
Sources
- McKinsey, The transformation office: Key success factors: https://www.mckinsey.com/capabilities/transformation/our-insights/the-transformation-office-key-success-factors
- McKinsey, The science behind transformations: Protecting value from day one: https://www.mckinsey.com/capabilities/people-and-organization/our-insights/the-organization-blog/the-science-behind-transformations-protecting-value-from-day-one
- McKinsey, The science behind transformations: Maximizing value during implementation: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-organization-blog/the-science-behind-transformations-maximizing-value-during-implementation
