Life cycles

Financial Management

Governance arrangements

Business case

Sustainability

Portfolio shaping

Life cycles

The ability to structure and organise change initiatives.

A life cycle is a framework comprising a series of distinct stages required to transform an idea or concept into reality in an orderly and efficient manner. A life cycle can be viewed as the structure underpinning deployment. Recognised life cycles include: linear (commonly referred to as waterfall), iterative (commonly referred to as agile) and hybrid. The choice of life cycle depends on the desired outputs, outcomes, benefits and the expected uncertainty, novelty and risk appetite for a change initiative.

Knowledge

Application

1

Knowledge of the life cycle options available.

Analyse potential life cycles for the management of change initiatives.

Consider:

• The different life cycle approaches and when they are applicable.
• The factors that influence which life cycle to select, including the maturity of the organisation, the type of change and the business case drivers.

2

Knowledge of the culture and mindset of the organisation.

Determine internal and external contexts which could affect the use of a life cycle.

Consider:

• The use of predictive and adaptive approaches.
• The level of certainty, the organisation’s attitude to risk and the management structure in place, for example, matrix/decentralised/hierarchical.
• Ways to promote a psychologically safe and collaborative working environment to support the chosen life cycle.

3

Knowledge of the organisational capability for delivering different life cycle options.

Identify the underlying principles for a life cycle that will suit the management of change initiatives within the organisation.

Consider:

• The value and priority of a change initiative.
• The level of stakeholder support and experience within the organisation.
• Ways in which different leadership styles can impact ways of working.

4

Knowledge of the sources available to define the processes, standards and guidelines.

Define the processes, standards, and guidelines to implement the life cycle, adopting these from published sources or internal sources, or developing them as required.

Consider:

• The processes, standards and guidelines associated with different life cycles.
• The types of life cycles available and what the change encompasses, for example benefits realisation.
• The benefits and costs of applying a life cycle approach to change initiatives.

5

Knowledge of the need for continuous improvement.

Reflect on the strengths and limitations of a life cycle, making refinements as required based on experience.

Consider:

• The sources of data to inform development.
• The methods for eliciting feedback.
• The ways in which the advantages and disadvantages of different life cycles can be identified.
• Different ways of engagement to promote two-way conversation.
• Methods such as test, learn and adapt.

Governance arrangements

The ability to establish and maintain governance structures that define control of deployment for delivery of change initiatives, and that align with organisational practice.

Governance arrangements comprise the framework of authority and accountability that defines and controls the outputs, outcomes and benefits from change initiatives. They are the mechanism whereby the investing organisation exerts financial and technical control over the deployment of the work and the realisation of value.

Knowledge:

Application:

1

Knowledge of the types of governance processes that are in place to manage a change initiative.

Define reporting, decision-making hierarchies, and levels of authority for a change initiative.

Consider:

• The organisational structures.
• The governance standards/board charter.
• The levels of stakeholder influence that inform decision making.

2

Knowledge of types of organisational culture and working practices.

Design a change initiative governance structure, taking into account context, complexity and potential impact.

Consider:

• The level of rigour to be applied and the needs of different life cycles.
• The complexity of a change initiative.

3

Knowledge of the relationship between a change initiative’s governance and the organisational governance.

Establish the relationship between a change initiative’s governance and the organisation’s governance structures.

Consider:

• The levels of stakeholder influence.
• The way in which a change initiative interacts with the organisation’s governance structure.
• The areas of the organisation impacted by the change.

4

Knowledge of levels of ownership.

Ensure clarity of ownership and levels of authority by agreeing the responsibilities and accountabilities with relevant individuals.

Consider:

• The roles and responsibilities for ownership.
• The principles of delegation and levels and limits of authority.
• The agreed escalation routes.
• The frequency and methods of reporting.

5

Knowledge of ways to maintain confidence.

Ensure effective reporting and decision making through maintained governance structures, staffing and maintenance of approved reporting and decision making.

Consider:

• The importance of adherence to standards.
• The integrity of the sources of data available to inform decision making.
• Ways to secure the capacity and capability to deliver.

Sustainability

The ability to balance the environmental, social, economic and administrative considerations that will impact a change initiative.

Sustainability involves taking individual and organisational responsibility to ensure outputs, outcomes and benefits are sustainable over their life cycles, meeting the current needs of stakeholders without compromising or overburdening future generations.

In addition, change initiatives need to be delivered through sustainable working practices and methods. Sustainability is so significant and important, that change initiatives need to proactively alter behaviours and apply methods that ensure these considerations become second nature.

Knowledge:

Application:

1

Knowledge of the sustainability agenda of the organisation that informs business activity.

Promote and adhere to sustainable working practices that support organisational standards.

Consider:

• The management strategies in place, and the need to understand the external factors that may identify risks and opportunities and influence direction.
• Any sector-specific responsibilities, principles and priorities that may need to be considered.
• What needs to be considered for continuity, and generating efficiencies for the future.
• The alignment of any external party to the internal policies.
• Working practices that support sustainability.

2

Knowledge of the sustainability priorities.

Determine the sustainability vision and objectives for a change initiative. Undertake appropriate assessment to support sustainability methods and outcomes. Explore stakeholder perception and actively manage sustainability expectations and outcomes.

Consider:

• The way in which the business case aligns to and supports the sustainability agenda.
• Tools and techniques available to proactively embrace sustainability.
• Measures and metrics used to evaluate and inform the sustainability assessment.
• The internal and external communities impacted and how they will be impacted.
• The way in which the adoption of sustainability principles may have a positive or adverse impact on a change initiative.

3

Knowledge of which mechanisms can embed sustainability and of ways to communicate sustainability measures.

Employ relevant techniques to embed a culture of sustainability within a change initiative. Apply a range of communication styles to promote sustainability objectives.

Consider:

• Ways to understand the individual drivers that can be used to change behaviours.
• Different ways of telling a story to gain ownership at all levels.
• Different working practices that support the sustainability agenda.
• Techniques to facilitate creative thinking that supports both the business case and the sustainability objectives.

4

Knowledge of what information is needed to confirm that practices are still being followed.

Ongoing monitoring and reporting of sustainability. Ensure that stakeholders are engaged and responsive to sustainability practices. Promote the sharing of lessons learned and actively encourage sustainability and accountability at all levels.

Consider:

• Ways to assess and show that stakeholders are still engaged with sustainability practices.
• The ability to support ongoing operations within business-as-usual.
• Ways to embed into the organisation’s culture a continued focus on sustainability in day-to-day activities.
• The sources of data and methods to promote continuous improvement.

5

Knowledge of changes in sustainability practices.

Actively keep abreast of changes to inform new initiatives. Promote efficiencies to facilitate sustainability in other change initiatives across industry sectors. Propose ways to acknowledge and celebrate achievements in sustainability both internally and externally.

Consider:

• Ways to keep up to date with external guidance and regulation that will impact the sustainability agenda.
• How to stay up to date with innovative practices, to inform forward thinking and new ways of working.
• Different ways to promote and communicate achievements and improvements.

Financial management

The ability to enable financial resource for delivery and to plan and control the finances of change initiatives, as part of the organisation’s overall financial management, to ensure optimisation of the business case.

Financial management considers the affordability of the proposal within the timeframe, and ensures that the money required is secured and made available when needed, and is subsequently managed. It provides an interface between the financial management arrangements for a change initiative and the financial systems of the organisation.

Knowledge:

Application:

1

Knowledge of the governance rules for investment.

Adopt a consistent approach to the investment appraisal of a change initiative in line with organisational practice.

Consider:

• The financial governance that exists within the organisation, including the financial reporting system to be adhered to.
• The reporting procedures that are in place for a change initiative.

2

Knowledge of the characteristics of a consistent approach to estimating.

Ensure a consistent approach to estimating is used across a change initiative.

Consider:

• The elements that require estimation.
• The different types of costs (labour, non-labour, and ongoing costs to the organisation) and their timings.
• Ways to identify optimism bias in estimating costs.
• The available sources that can be used to validate estimates and the need for ongoing refinement.

3

Knowledge of the value a change initiative will give to the organisation.

Determine capital and revenue expenditure for a change initiative, ensuring alignment with the organisation’s financial plan.

Consider:

• The difference between capital and revenue expenditure.
• The link between the financial value of a change initiative and the strategic objectives.

4

Knowledge of the reporting procedures for reviews.

Establish financial reporting milestones and reviews for a change initiative.

Consider:

• The types of financial reports.
• The timing of funding release.
• The commercial milestones that are in place for all parties.

5

Knowledge of the organisational procedures for the release of funds.

Establish control limits for the reporting and approval of budget variances, and arrangements for the release of funds at appropriate stages in a change initiative.

Consider:

• The levels of financial accountability.
• The validity of the revised forecast.
• Agreed tolerance levels.
• Contingency options available.
• The importance of rigour in communicating fiscal responsibilities.

6

Knowledge of the financial reporting system in place.

Produce financial progress reports based on the financial information related to a change initiative. Adjust a financial plan based on the progress of a change initiative and associated financial reviews.

Consider:

• The tools/techniques available to monitor and report.
• The actual cost versus forecasted cost.
• The categorisation of costs, including internal versus external resources.
• The implications for forward planning and potential impact on a change initiative.

Business case

The ability to prepare, gain approval of, refine and update business cases that justify the initiation, investment and/or continuation of change initiatives in terms of benefits, costs and risks.

Business cases provide the justification for undertaking and continuing with a change initiative. The business case needs to be reconsidered at regular review points during a change initiative, in case the original justifications are affected by later developments.

Knowledge:

Application:

1

Knowledge of the relevant factors affecting business cases.

Determine the relevant factors which could influence the development of a convincing business case.

Consider:

• The perceived value/benefits that will be delivered to the organisation and the links to the strategic objectives.
• The different commercial approaches, based on organisational strategy, and perceived cost, time, quality, risk and resource required.

2

Knowledge of ways to analyse relevant factors affecting business cases.

Support a persuasive argument through effective analysis of relevant factors which could influence the development of a convincing business case.

Consider:

• The range of sources that could be used to gather relevant data.
• The ways of sharing the data to promote understanding and meet stakeholder needs.

3

Knowledge of ways to create a benefits framework.

Establish a benefits framework for a business case.

Consider:

• The driving factors of the benefits.
• The stakeholders, timing, and impact of the benefits from a change initiative.

4

Knowledge of the influencing factors in a business case.

Document a business case in a relevant format, and gain an initial and ongoing formal acceptance of a business case.

Consider:

• The governance structures that are in place for initial and ongoing viability and acceptance.
• Ways to justify and quantify value, including the options that have been considered.
• Stakeholders’ expectations and commitment to a change initiative.

5

Knowledge of the factors that may impact or influence the value of a change initiative.

Monitor and refine a business case as circumstances and factors change, including implementing a change control and configuration management system when updating a business case.

Consider:

• The controls in place to manage any changes to the business case.
• The potential impact of risk on the business case.
• The effects on stakeholders and the wider organisation.
• Ways to actively manage stakeholder engagement to ensure continued support.

Portfolio shaping

The ability to set up portfolios to ensure efficient delivery of strategic objectives.

Portfolio shaping is the grouping of change initiatives at an organisational or functional level to select, prioritise and control deployment in line with strategic objectives and the capacity to deliver, balancing change initiatives and business-as-usual, while optimising return on investment.

Knowledge:

Application:

1

Knowledge of the ways required changes are determined.

Determine changes required by the organisation’s strategic objectives.

Consider:

• The strategic objectives and the relationship between individual change initiative outcomes.
• Visibility of any changes to the strategic direction or pace of strategic implementation.

2

Knowledge of the ways that change initiatives can be categorised.

Categorise related change initiatives in relation to an organisation’s strategic objectives; map the intended outputs, outcomes and benefits of related change initiatives to an organisation’s strategic objectives.

Consider:

• The way the portfolios contribute to the strategic direction.
• The different categories that could be used.
• Ways to map outputs to achieve the outcomes.
• Ways to achieve optimal balance within a portfolio.

3

Knowledge of ways to determine gaps which may exist in the alignment of related change initiatives.

Determine gaps which may exist in the alignment of related change initiatives, either current or proposed, to strategic objectives.

Consider:

• The ways in which to review and report on progress across portfolios to confirm alignment to strategic objectives.
• Any changes in internal and/or external factors that may impact strategic objectives.

4

Knowledge of measures that could be used to compare the likely value of, both current and proposed, related change initiatives to an organisation’s strategic objectives.

Establish appropriate measures to compare the likely value of, both current and proposed, related change initiatives to an organisation’s strategic objectives.

Consider:

• Ways in which measures can be established.
• Ways to gain agreement on the measures to be tracked against.
• Any governance controls that inform key processes to ensure standardisation at portfolio management level.
• How each change initiative contributes in terms of value, and ways to communicate that contribution at strategic level.

5

Knowledge of ways to prioritise related current and proposed change initiatives.

Use appropriate measures to prioritise related current and proposed change initiatives and consider the availability of finance and other resources when applying prioritisation measures.

Consider:

• The balance of short-term gains and long-term gains in relation to prioritisation activity.
• The level of risk that the portfolio is carrying.
• An understanding of the capability, capacity and funding available.
• Ways in which to allocate resource based on priorities.

6

Knowledge of ways to assess ongoing progress and viability.

Recommend whether change initiatives should be initiated, maintained, or closed to maintain a balanced portfolio.

Consider:

• The sources of data/evidence to inform decisions.
• Any changes in the strategic direction that will impact a change initiative within the portfolio.
• Ways to refine the portfolio for optimal performance.

7

Knowledge of the importance of communication in relation to portfolio management.

Communicate appropriately and effectively to stakeholders any recommendations to inform decisions about the maintenance of a balanced portfolio.

Consider:

• The wider context and evidence for any recommendations.
• The communication/information needs of stakeholders and ways to keep them engaged.
• The governance/corporate structure in place to control portfolio change.