MPSP (Managing Processes, Systems

and Projects)
Individual Assignment
The Resource Allocation Process at
CompanyX
Name: Hisham El Sherbini

Elective Pathway: Leading the Operations Function

Course: Executive MBA EM12

Date: 25th of December 2012

Table of Contents
1. Executive Summary ....................................................................................................................... 1

2. Introduction .................................................................................................................................. 1

2.1. Overview of the organisation and Function .......................................................................... 1

2.2. Overview of the Relevant Context ........................................................................................ 2

3. Part 1: Analysis of Current Issue ................................................................................................... 3

3.1. Operations Strategy .............................................................................................................. 3

3.2. Does CompanyX take a Process View? .................................................................................. 4

3.3. How about a Systems Perspective?....................................................................................... 7

3.4. Trade-Offs? ........................................................................................................................... 9

3.5. Impact of Demand ................................................................................................................ 9

3.6. Findings ............................................................................................................................... 10

4. Part 2: Proposed Future Course of Action Recommendations & Justifications ........................ 11

4.1. Process Redesign Approach ................................................................................................ 11

4.2. Improving the Process Technology ..................................................................................... 12

4.3. Redefining Job Design ......................................................................................................... 12

5. Part 3: Implementation and Impact ............................................................................................ 13

5.1. Developing the Business Case ............................................................................................. 13

5.2. Managing the Project .......................................................................................................... 14

5.3. Managing the Stakeholders ................................................................................................ 14

5.4. Managing the Risk ............................................................................................................... 16

5.5. Measuring the Improvements CSFs (Critical Success Factors) .......................................... 16

6. Reflection .................................................................................................................................... 17

6.1. Strengths and Weaknesses of the Systems and Process Approach ..................................... 17

6.2. Influence on my Thinking about and my Approach to Management .................................. 17

7. References .................................................................................................................................. 18

8. Appendices ................................................................................................................................. 19
8.1. Glossary............................................................................................................................... 19

8.2. Project Definition ................................................................................................................ 20

8.3. Transition Cycle ................................................................................................................... 21

Hisham El Sherbini MPSP Assignment

1. EXECUTIVE SUMMARY

This report will attempt to analyse an operational issue involving the Resourcing function at
CompanyX. The process at the heart of the issue is the RAP (Resource Allocation Process).

The issue is perceived to be complex with multiple factors contributing to and resulting from it. The
report will illustrate the inefficiencies in the process itself, that the technology in use is not fit for
purpose as well as the lack of visibility and the right information at the right time to make decisions
involving efficient utilisation of Consultants. All of that has led to, on one hand, Customer
dissatisfaction and delay in realizing financial project benefits if not losing the customer altogether.
This is because Customers have expressed their concern at the Consultants not being available when
needed and that, when they are, their performance is not meeting their expectations. On the other
hand, it yielded a negative impact on the motivation, engagement and, whether directly or
indirectly, the utilisation of the Consultants. This can be reflected as well in the increase of rate of
attrition of the Consultants.

The report will recommend improvements to the process, the quality of information being collected,
optimising the use of technology, as well as increasing motivation and engagements of the
Consultants. Justification for the recommendations will be presented as well as an implementation
plan including means of measuring the benefits.

Data was collected through informal interviews with Mark, the Head of CS (Consultancy Services),
several Consultants in CS, the Resourcing team as well as several SAMs (Sales Account Managers). In
addition, some Customers were casually asked for feedback regarding their experience and level of
satisfaction with the CompanyXs Service Delivery operation.

2. INTRODUCTION

2.1. OVERVIEW OF THE ORGANISATION AND FUNCTION

CompanyX is one of the UKs leading IT infrastructure partners. It was founded in 1990 in Reading,
UK. Today, CompanyX has over 280 employees and achieved a turnover of 67m to March 31, 2012.
Almost 40% of CompanyXs profits (30% of revenues) come from CS. The Resourcing function can be
seen as pivotal to the business. It lies at the heart of Service Delivery as it is the channel through
which Knowledge and Skills flow from the Consultants pool through Sales to Customers. The
following organisation chart can help illustrate the relevant structure of CompanyX and highlight the
position of CS and Resourcing in that structure.

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Hisham El Sherbini MPSP Assignment

Figure 1 - CompanyX Org Chart

Chief Executive

Sales Director Services Director

Head of Project
Resourcing
External Consultancy Management
Manager
Services Office

Consultants Pool Resourcing

Internal
(25 Consultants) Administrators

2.2. OVERVIEW OF THE RELEVANT CONTEXT

CompanyX, being a KIBS (Knowledge Intensive Business Services), is operating in a sector where
it can benefit from a lot of opportunities. The Cabinet Office (2011) stresses that ICT is critical
for the effective operation of government and the delivery of the services it provides to citizens
and businesses. CompanyX went through the dot-com boom and was least affected by the
latest recession, as per its financial figures. ITU (2009: 9) suggests that ICT is founded on
innovation and, while the economic turmoil may challenge some, it can also overturn the
established order and stimulate the emergence of new entrants with new technologies. More
opportunities can be realised from the sustainability trends. The Green IT Magazine (2012)
suggests that the IT sector can become a leader in showing how industry at large can benefit
from a low carbon economy and maximise new commercial opportunities as they arise.

All of that can introduce opportunities for CompanyX to grow and prosper. However, it can also
introduces challenges, particularly related to the speed by which technology evolves and
increased market demand but also due to the competition from other highly established
Consultancy and Professional Services companies.

Efficient allocation of Consultants, can give CompanyX this competitive advantage and is
perceived as key to the success of CS and the business as a whole. It can also keep the
Consultants engaged and motivated which can directly contribute to retaining them. Consultants
are seen by their peers and the industry as highly skilled, experienced and accredited and they
can easily move between companies, even to a competitor.

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3. PART 1: ANALYSIS OF CURRENT ISSUE

A good place to start can be the ADO model (Henley Business School, 2012b) as it can help illustrate
the life cycle of the operating system involving the process under consideration.

Figure 2 - The ADO Model

(Race, 2012)

The RAP has been in place for a couple of years and, hence, the natural starting point could be an
evaluation of current system performance, which can lead us to confirm whether what we are doing
is broadly in line with our strategic intent or whether we need a more fundamental re-evaluation
(Henley Business School, 2012b).

The RAP can be seen as a primary/operational process rather than strategic or support as it does
indeed provide services to external customers and it cuts across many functions (Henley Business
School, 2012b). Even though only few would disagree that Service Delivery at CompanyX has evolved
over the years, partially thanks to the RAP, one can still struggle to visualize the structure of the RAP
by which CompanyX intended to produce value for their customers. Hence, we first need to
understand the strategic intent behind the RAP, the views adopted by CompanyX, the process itself,
demand, as well as the performance objectives.

3.1. OPERATIONS STRATEGY

Slack & Lewis (2008) suggested that Operations strategyis concerned with how the competitive
environment is changing and what operations have to do to meet current and future challenges.
They also stressed on the long-term development of resources and processes to sustain the
advantage. It can be argued that CompanyX is missing the opportunity of being the best in the
industry or, even, redefining industry expectations (Slack et al, 2012).

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Hisham El Sherbini MPSP Assignment

The Four Perspectives by Slack & Lewis (2008) can help identify the missing pieces in CompanyXs
Operations Strategy.
Figure 3 Four Perspectives
TOP-DOWN (CORPORATE STRATEGY TO
BUSINESS STRATEGY
GROWTH
MEETING CUSTOMER NEEDS
ATTRACT AND RETAIN

MARKET REQUIREMENT
CUSTOMERS REQUIRE HIGH QUALITY
RESOURCES
OPERATIONS WITHIN AGREED TIME BOUNDARIES &
PEOPLE ARE THE MAIN RESOURCE STRATEGY THEY ARE WILLING TO PAY FOR THAT
IT IS USED TO SUPPORT AND ENABLE CUSTOMERS EXPECT FLEXIBILITY AND
SERVICE DELIVERY DEPENDABILITY

BOTTOM-UP
CONSULTANTS AND RESOURCING WORK
TOWARDS MEETING CUSTOMER NEEDS
IT SEEMS TO STRUGGLE TO COPE.
MANUAL PROCESSES PREVAIL
CONSULTANTS ARE ATTRACTED BUT NOT
ENGAGED OR MOTIVATED

(Adapted from Slack & Lewis, 2008)

We can then deduce that, in general, there seems to be an alignment between Operations Strategy
and Delivery Systems. However, what seems to be missing is the focus on engaging and motivating
the Consultants which can increase retention as well as investing in enhancing the technology that is
used as an enabler.

3.2. DOES COMPANYX TAKE A PROCESS VIEW?

Excerpts from the process definition by Davenport (1993, cited in Henley Business School, 2012b:11)
include:

A structured, measured set of activities designed to produce a specific

output for a particular customer or market. A process is thus a specific
ordering of work activities across time and space, with a beginning and
an end, and clearly defined inputs and outputs: a structure for action.

If we apply it to the RAP, we can only see some correlation to that definition as it is not perceived by
the Consultants to have clearly defined inputs and outputs or that its being reliably measured. In
addition, the Consultants reported different experience when interacting with the RAP. However,
the Resourcing function has a different opinion and they believe that they follow the process every

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Hisham El Sherbini MPSP Assignment

time. Using a SIPOC diagram can help, not only, model and visually map the process but also depict
key interfaces with the process (suppliers and customers), key activities that make up the process,
and the principal inputs and outputs used (Henley Business School, 2012b).

Figure 4 - SIPOC Diagram

Suppliers Inputs Process Outputs Customers

SAM Transformed Assignment to SAM

Customer notifies the
(Internal) resources deliver a (Internal)
SAM of a requirement
Customer (Information): service Customer
(External) (billable or (External)
Customers SAM submits request to
unbillable)
requirement Resourcing

SAMs Request
Resourcing look for a
Transforming
match between the
resources:
request and a Consultants
People profile and availability
Resourcing
mostly but Resourcing contacts the
also Consultant for
Consultants confirmation or just
IT systems reserves their time

Consultant contacts the

customer for more
information or goes to
deliver the work

(Adapted from Henley Business School, 2012b:38)

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The use of a more detailed Process Map can help us identify possible failure points:

Figure 5 - Swim Lanes

Customer
Customer Submits Yes
Is Customer Available?
requirement
No
F1
SAM
Completes a basic
Sends Availability Confirms or negotiates
form requesting a F3
to Customer availability
resource
F2
Resourcing

Specialised Area
Yes Checks availability Sends availability Reserves Consultant
of Consultant back to SAM
Clear?

No
Mass Email F4
Consultants

Specialized Consultant might be

Consultant notified

Pool of A Consultant comes F5

Consultants back with advice

(Adapted from Slack et al, 2012)

Failure Point Notes

F1 Customer might not be able to communicate the requirements clearly and the SAM is
usually unable to understand them or inquire further.
F2 What the SAM submits to Resourcing is a simple form that does not capture enough
information about what is required.
F3 Consultants time is booked based on the current availability which is not guaranteed to
be accurate.
F4 Consultant is rarely notified in advance to be able to challenge the assignment, collect
enough information or prepare for the job. The notification is usually missing contact
details of the customer such as name, address and/or phone numbers.
F5 Consultants feedback might not formally be verified by fellow Consultants or logged.

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Hisham El Sherbini MPSP Assignment

The communication between the different entities above is done through either email or a basic
form. There is currently no automated workflow or an automated method of notifying the
Consultants of their assignment. This leads to a lot of confusion as well as ping-pong emails going
back and forth between the different entities attempting to resolve the situation.

It is worth highlighting Maisters claim that:

the scheduling of work assignments is the single most important

managerial activity in a professional service firm. Whoever makes the
work assignment decisions is the person really managing the practice

(Maister, 1997 cited in Henley Business School, 2012b: 40)

Based on the above, we can safely say that it is the Resourcing function being responsible. According
to Maister (1997), scheduling requires the reconciliation of four (potentially conflicting) goals: client
service, profitability, skill-building, and morale and motivation. The Consultants as well as the SAMs
seem to agree that the Resourcing function lacks that insight especially when it comes to how
human capital is acquired, managed and developed whilst delivering ongoing services to clients.

3.3. HOW ABOUT A SYSTEMS PERSPECTIVE?

Henley Business School (2012b) warns that process thinking can be very powerful, but there are also
potential disbenefits to taking a view that is too narrowly focused on process and that we might
want to shift our orientation somewhat and think not just in terms of processes for the delivery of
goods and services but of operating systems. Hence, using a framework such as the Process Strategy
Matrix can help us look at the bigger picture as well as yield a stronger focus on operations
resources.

Before we can apply this model, we need to define the different Performance metrics. Quality is the
ability to provide the most appropriate Consultant for the Job who can deliver exceptional
performance to satisfy Customer needs. Speed is how quick can to respond and provide resources to
the Customer. Dependability is how resources can be provided consistently and at the time
promised and expected by the customer. Flexibility is the ability to respond to changing customer
needs. Cost involves assigning the most profitable resources with the least overheads possible.

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Hisham El Sherbini MPSP Assignment

Figure 6 - Process Strategy Matrix

Quality 4 Not Limited/Inaccurate

designed information
for Quality

Speed 3 Slow and Generally Manual/No Missing

inefficient responsive/ notification information causes
contribute delays
positively
Process
Performance Dependability 4 Repeatable Committed
Objectives
Flexibility 3 Rigid Dont Not
contribute designed to
positively be flexible

Cost 3 Not unaware Unable to Not enough

designed contribute
for cost
efficiency

Process People Technology Information

(Adapted from Race, 2012)

Looking at the competitive importance, on a scale of 1 to 5 where 5 is high, we can see that the
quality, in general, is high importance and that is what customers pay for and expect as Johnston &
Clark (2008:42) put it: [customers] go to a firm of consultants for peace of mind. That is also why
cost is not generally of a high importance as customers understand that the cost of peace of mind
can be high and they are generally willing to pay for that. CompanyX seem to be less keen on getting
into price wars with competitors and, since the profit is already high, they prefer to focus on quality
and dependability. Customers expect their solutions to be tailored hence flexible enough and they
expect CompanyX to deliver on time because of the deadlines the customers usually have. The
speed of responding is not usually key as long as the promised deadline is met, hence dependability
is high.

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Hisham El Sherbini MPSP Assignment

We can also deduce from the matrix above that the contribution of Technology is not as we would
expect. It seems to be not fit for purpose. The information collected does not contribute positively to
any of the performance objectives. The people seem to be generally committed but unaware of their
role in providing cost efficiency. They also tend to be rigid and rather inflexible.

3.4. TRADE-OFFS?

There is a very important point to highlight which is the trade-off between the different
performance objectives. The trade-off decision made by the Resourcing function involved favouring
Dependability and Speed over any of the other objectives. They admitted focusing on the process
and ensuring that it is repeated every time a resource is required. However, unawareness of the cost
of allocating the resource has been leading to resources being allocated inefficiently. The Resourcing
function have been using a First-In-First-Served approach. Consultants often complain that they are
allocated to assignments involving over 2hrs commute each way every day. Some of them had to
book local accommodation which added to the cost incurred by CompanyX. At the same time, there
were assignments within 30mins commute that the same Consultants could have been allocated.
Quality is affected when the Consultants have to endure long and frustrating commutes; they
admitted that they are not able to give their best.

3.5. IMPACT OF DEMAND

Having mentioned demand in section 2.2 as a potential challenge, Slack et al (2012:20) suggest that
Four characteristics of demand in particular have a significant effect on how processes need to be
managed. Applying the Four Vs to the RAP can yield the diagram in Figure 7:

Figure 7 - Four Vs

Volume High
Low

High Variety Low

High Variation Low

High Visibility Low

(Slack et al (2012)
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Hisham El Sherbini MPSP Assignment

The volume of customer requests processed through the RAP and the resulting output can be
perceived as relatively low compared with other products and services developed either by
CompanyX or within the Industry as a whole. Repetition seems to be low but there is a fair bit of it
since the use of templates and trying to standardize offerings are becoming commonplace.
Customer requirements highly vary, they are usually quite specific. However, resemblance can
sometimes be seen between the different requests and slightly analogous approach to fulfilling the
customer requirements can be followed. This coincides with the claim that an important aspect of
service delivery concerns the investment in methods, procedures, and modular solutions, which
allow for a more efficient service delivery the next time a similar problem arises with a client
(Lwendahl, 2005 cited in Henley Business School, 2012b: 41). This in turn raises the challenge of
how to use such standardised procedures and still deliver unique service to the client. With regards
to variation, the Resourcing team reported that some patterns can be detected across the year and
that, to some extent, they can predict the demand. They said that they usually see higher demand in
the shoulder months (end of September to middle of December and end of January to end of June
with a drop perhaps around the Easter period) than they do for the rest of the year. Still, it is fair to
say that there is high variability which is a characteristic of Service processes (Henley Business
School, 2012b). There is a fair bit of visibility in the RAP process. Even though a SAM mainly manages
the Customer relationship, receiving the request and looking to fulfil it, the Customer often interacts
with the Consultants directly in the initial phases to better communicate the requirements and,
possibly, with Project Managers in the planning and execution phases later. So, we can fairly suggest
that the customer does have a degree of visibility of the process which agrees with Henley Business
School (2012b) claiming that Many service processes are high visibility.

3.6. FINDINGS

From the above analysis, we can conclude that CompanyX seems to have used more of a Machine
Metaphor or Closed System view where much emphasis is placed on control while little emphasis
is placed on environment (Flood & Jackson, 1991:8).

In the SIPOC diagram (Figure 4), we can see that the Resourcing function is the main transforming
resource. Also, from the detailed Process Map Swim Lanes, we can see very limited contribution
from the Consultants.

There is little Demand Forecasting being exercised and the First-in-First-Served approach followed by
Resourcing seems inflexible and cost-inefficient. In addition, it leads to demotivation and
disengagement of the Consultants.

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Hisham El Sherbini MPSP Assignment

The technology used is clearly not fit for purpose. The information collected is little and inaccurate.
All of that is putting more pressure on the Resourcing function to focus just on dependability rather
than the other performance objectives.

When referring to the definition of the Service Concept laid out by Johnston & Clark (2008:42) being
a shared understanding of the nature of the service provided and received, we can also see little
resemblance to how the Resourcing function perceives it. They were doubtful about the organising
idea, the service experience and the service outcome. They seemed to be more focused on the
process itself.

4. PART 2: PROPOSED FUTURE COURSE OF ACTION RECOMMENDATIONS & JUSTIFICATIONS

4.1. PROCESS REDESIGN APPROACH

The inefficiencies identified in the process need to be addressed. As suggested by Race (2012), there
can be different ways of designing and redesigning processes. Figure 8 illustrates those different
approaches:

Figure 8 - Process Redesign Approaches

Tactic Driver Approach

Simplification Eliminate redundancies and
duplicated effort in processes.
Gaps and Problems occur when
Disconnects information or materials are
passed between departments or
functional groups.
Variability Reduce variability throughout the
Reduction process.
Bottelneck Manage the constraints that
Reduction govern flow through the process.
Increase the visibility of the availability of Consultants to
both the Consultants themselves and the SAMs. That can
reduce the number of emails going back and forth hence
simplifies the process and speeds it up.
Improve the quality of the forms that collect requirements
from SAMs forcing them to better understand the customer
requirements and communicate them.
Work closer with the SAMs and use statistical data to better
forecast demand which can reduce the variability.
Engage the Consultants more during the process to reduce
the bottleneck effect experienced at the Resourcing level.

(Adapted from Race, 2012)

Elaborating on the last tactic, Henley Business School (2012b:40) suggested that the key
transforming resource in PSFs is going to be people with highly specialised skills. Hence, we can
deduce that it would be beneficial to increase the contribution of the Consultants.

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4.2. IMPROVING THE PROCESS TECHNOLOGY

Slack et al (2012:125) suggested that:

Generally, processes that have high variety and low volume will employ
process technology with lower degrees of automation [They] generally
require process technology that is general purpose

From that and based on the findings in section 3.6, it is crucial to implement a process technology
that is more fit for purpose. It does not have to provide full automation but a certain degree of
automation will be sufficient. It also needs to increase the visibility of both the technical skills of the
Consultants and their availability to all stakeholders.

Using the enhanced technology, we can enforce rules on the forms used to collect requirements and
other details from the SAMs to ensure the quality of information is improved and sufficient, assisting
in the decision making.

Tight coupling of the workflow system, a web-based application improving the visibility of the
availability of Consultants as well as an intelligent notification system can give fast process
throughput, as suggested by Slack et al (2012).

4.3. REDEFINING JOB DESIGN

Again, being a business with High Variety and Low Volume, the job design should be broad and
relatively undefined with decision-making discretion and intrinsic job commitment. In such
organisations, as Race (2012) suggested, there needs to be more focus on people, besides the
process. In the writers MPP assignment, it was highlighted the issues of demotivation and
disengagement that the Consultants were experiencing and improving the environment for the
Consultants can yield the aspired results on all fronts (El Sherbini, 2012).

Job commitment can be encouraged by the activities in Figure 9.

Figure 9 - Job Design

Job Design Approach Action

Job enlargement Allocating a large number of tasks that are broadly of the same time to the Consultants
Job enrichment Allocate tasks to the Consultants that involve more decision making, greater autonomy, and
therefore greater control over the job.
Job rotation The Consultants have multiple skills and the Resourcing function should periodically engage
them in different sets of tasks to provide some variety in their activities.
Empowerment The process technology should not constrain Consultants.
Team-working The new technology will include a collaborative platform that can enhance team-work.

(Adapted from Slack et al, 2012)

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5. PART 3: IMPLEMENTATION AND IMPACT

According to Archibald (1992, cited in Henley Business School, 2012c:6), CompanyX can be seen as a
Project-driven organisationwhere the core business is projects. It is indeed a company that
supplies bespoke services to meet customer demands. It comes as no surprise then that CompanyX
have also employed the PMO (Project Management Office) concept, as seen in the Organisation
Chart in Figure 1. However, the scope has mainly been customer or external projects. Yet, we believe
that leveraging that PMO, the PM (Project Management) and the Software Development skills that
CompanyX possess can indeed contribute to the success of the implementation of the enhanced
process technology recommended above and, at the same time, reduce the cost.

It is crucial, however, to sell the idea to Management and secure people and financial resources.
Creating a sense of Urgency, helping others see the need for change and the importance of acting
immediately is vital (Race, 2012). Hence, the development of the business case can be seen as a vital
first step. In addition, Slack et al (2012) stress on the importance of managing stakeholders and how
key that is to the success of the project.

5.1. DEVELOPING THE BUSINESS CASE

The principle stakeholders in the Business Case document are Mike, Steve and Mark. They are the
ones who would use that document for decision making. Other stakeholders such as the Resourcing
Manager, Julie, and the Sales Manager would have an interest as well. In brief, the business case
document would comprise of the sections in the following table (Silburn, 2012):

Section Notes
Summary This project addresses the multi-fold issue involving irregular and low utilisation of Consultants,
dissatisfied customers, delay in realizing financial benefits as well as high attrition of Consultants
due to lack of motivation and engagement.
Project Scope The scope includes the implementation of a workflow-based technology solution to be developed
in-house by CompanyXs Consultants and managed by CompanyXs PMs.
Project Drivers The drivers include meeting customer needs, increasing and normalizing the resource utilisation,
increasing efficiency to beat the competition as well as engaging and motivating the Consultants
to ensure higher performance and loyalty.
Project Objectives 1. Increase Customer Satisfaction to be measured through surveys and the overall Sales
turnover of Consultancy compared with similar periods in the last few years.
2. Increase Consultants motivation and engagement to be measured through surveys and
compared with the current survey results.
3. Increase utilisation of all Consultants to over 70%.
Solutions Acquire a new software solution off-the-shelf:
o Expensive
o Will require customization to fit CompanyXs needs
o Extra cost for maintenance
Develop a software solution in-house

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Hisham El Sherbini MPSP Assignment

o More cost effective

o Developers and PMs are more aware of CompanyXs environment and needs
o Cost of maintenance reduced as it is in-house
o Increase motivation by involving the technical personal rather than
marginalizing them
Preferred Developing a solution in-house as it provides best value for the company.
Solution
Financial (Will be provided later as the right personnel are engaged and details of the investment are
Appraisal calculated).
Procurement No hardware or software needs to be purchased as all the resources are available in-house.
Strategy
Project CompanyX use an adapted version of Prince 2 to run its external projects. A similar approach will
Programme be followed to run this project internally.
Project Risks The primary Risk comes from stakeholders. The change to the process will face resistance and
hence appropriate management of Stakeholders is essential. The technology presents another
risk since the solution will be developed entirely internally. UAT (User Acceptance Testing), Stress
Testing and other methods can be followed to minimise the risk.

5.2. MANAGING THE PROJECT

CompanyXs PMs are more than capable of handling the project through its different phases:
Initiate/Envision, Plan, Build/Develop, Test/Stabilize, and Deploy/Release. As mentioned before, they
follow an adapted version of Prince 2.

It is crucial to develop a Project Definition that highlights the Vision, Purpose, Objectives, Scope and
Strategy of the project to implement the enhanced technology. A lot of this information will come
from the Business Case document (More details on that in Appendix 8.2).

As suggested by Friis (2004), it is important to understand business requirements and transform

them into IT requirements. Involving the stakeholders from the beginning can assist with that. The
stakeholder analysis is detailed in the next section (Section 5.3). The Risk Management is discussed
in Section 5.4.

5.3. MANAGING THE STAKEHOLDERS

From Organization Chart in Figure 1 as well as the SIPOC diagram in Figure 5, we can identify the
following Process Stakeholders:

SAMs Manage the relationship with external customers.

Resourcing Process the SAMs request for a resource and allocate it.
Consultant Is allocated to a SAMs request to perform the job required.
Mike Chief Executive Ultimate decision maker
Steve Service Director
Mark Head of CS

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Hisham El Sherbini MPSP Assignment

By placing them on a Power-Interest grid, we can better understand their interest and power.

Figure 10 Power-Interest
Grid

High Mike

Keep satisfied Manage closely

Steve
Stakeholder power

Mark
SAMs
Resourcing
Monitor Keep informed

Consultants
Low

Low High
Stakeholder interest
(Adapted from Slack et al, 2012)

We can see that Mike is the ultimate decision maker and his buy-in is crucial to the success of the
project. We need to keep him satisfied. Steve has direct interest as he oversees Service Delivery. He
is definitely keen on the success of his division and is powerful enough to influence Steves decision.
He needs to be managed closely to ensure his support. Mark has the highest interest and relative
power to fight for the project to go ahead and seek approval for budget. Mark demands continuous
involvement with the project. If we can see Mark as the Sponsor with all his enthusiasm shooting
for the moon and being the champion of the project, perhaps we can see Steve as the Steward
who bring the sponsor down to Earth (Turner, 2009:315).

The SAMs are likely to perceive this change as negative and, since they have considerable power
(mainly because they are the ones who make the bucks), they need to be won which can be done
by illustrating to them how the new project can improve their chances of winning more orders more
quickly which can improve their own performance and, accordingly, their commission. The
Resourcing has relatively less power but they showed high interest in improving their image. They
are perceived by the Consultants as well as the SAMs as the bottleneck of the process. The
Consultants have little power but keen on pursuing any chance to increase their motivation and
engagement.

By managing the stakeholders carefully, we can reduce the impact of the transition especially when
it comes to the initial shock followed by denial and dejection that can be experienced by the SAMs
and the Resourcing function, to be specific (Henley Business School, 2012b). The Transition Cycle
illustrates the above in Appendix 8.3.

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5.4. MANAGING THE RISK

Risks coming from the new in-house developed technology and the resistance expected from the
different stakeholders are the primary ones. However, a more thorough Risk Management exercise
will be carried out and led by the selected Project Manager as it is important to evaluate potential
risks, their likelihood and impact. As a result, the identified risks will be transferred, terminated,
tolerated/accepted, or treated/mitigated (Henley Business School, 2012b). This approach is more
illustrated below:

Figure 11 Risk Assessment

(Race, 2012)

The risk coming from the resistance expected from the stakeholders should be seen and dealt with
as an opportunity.

5.5. MEASURING THE IMPROVEMENTS CSFS (CRITICAL SUCCESS FACTORS)

CSFs are those few factors that are decisive for the success of the project. Having identified them,
these are measured by tracking KPI (Key Performance Indicators) (Henley Business School, 2012b):

Business Objective CSF KPI

Increase Profits from
Consultancy Services
Reduce Consultants Attrition
Increase Sales Revenues
Increase Resource Utilisation Percentage average utilisation over the quarter.
Increase Motivation & Surveys using a scale of 1 to 10 where 10 is desirable
Engagement of Consultants
Increase Customer Satisfaction Surveys using a scale of 1 to 10 where 10 is desirable

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Hisham El Sherbini MPSP Assignment

6. REFLECTION

6.1. STRENGTHS AND WEAKNESSES OF THE SYSTEMS AND PROCESS APPROACH

In the early stages of my career, I worked at EDS (THE EDS Electronic Data Systems), an
organisation with around 100,000 employees at that time dedicated to IT Services. When I was
there, I learnt about process. I learnt how they structured any project, any change, into a process.
But I also learnt that it is not just the process that matters but the operating system indeed or, in
other words, the environment. I experienced, at first hand, the strengths of applying such an
approach on a wide level and the benefits gained including winning and successfully delivering major
multi-million, if not billion, dollars projects. But, also at the same time, how they are able to
motivate and engage team members and help them all feel responsible for the success of the
project.

Perhaps EDS was a perfect example. But I also experienced, and with CompanyX to be specific as
covered in this assignment, how things might sometimes be not that perfect and how, if some
elements of the approach were missing, that can lead to undesired outcomes. To me, the trick is to
ensure that both the mechanical elements (process, technology) and the human element (people)
are covered.

6.2. INFLUENCE ON MY THINKING ABOUT AND MY APPROACH TO MANAGEMENT

The study of the PSP Module Core showed me how difficult it is for managers, in any capacity, to
take decisions. The amount of information and insight they should have are just enormous.

I chose the Leading the Operations Function pathway specifically because I believe that the
strategic role of operations is often misunderstood, miscommunicated, undermined, or even
completely ignored. I totally believe that organisations succeed only if they can appreciate the
strategic role of operations and how operations can indeed be a source of strategic advantage
(Henley Business School, 2012a).

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Hisham El Sherbini MPSP Assignment

7. REFERENCES

Cabinet Office (2011) Government ICT Strategy [Accessed 16 Dec 2012]

http://www.cabinetoffice.gov.uk/content/government-ict-strategy
Green IT Magazine, The (2012) About [Accessed 16 Dec 2012]
http://www.greenitmagazine.com/
Flood, R & Jackson, M (1991) Critical systems thinking: Directed Reading. New York,
Chichester.
Friis, M (2004) Transform business objectives into technology requirements. Fifty Lessons
(video)
Henley Business School (2012a) Leading the Operations Function Elective Pathway, Henley
Business School
Henley Business School (2012b) Managing Processes, Systems and Projects Module Core ,
Henley Business School
Henley Business School (2012c) Managing the Project-based Environment Elective
Pathway, Henley Business School
El Sherbini, H (2012) MPP Assignment
ITU (2009) Confronting the Crisis Its Impact on the ICT Industry [Accessed 16 Dec 2012]
http://www.itu.int/osg/csd/emerging_trends/crisis/report-high-res.pdf
Johnston, R & Clark, G (2008) The service concept. In: Service Operations Management, 3rd
ed. Harlow: Pearson Education, Chapter 2
Race, P (2012) MPSP Presentation Slides, Henley Business School
Silburn, N L J (2008) Developing the Business Case
Slack, N & Lewis, M (2008) Operations Strategy, 2nd ed. Harlow: Pearson Education
Slack, N, Brandon-Jones, A, Johnston, R & Betts, A (2012) Operations and Process
Management: Principles and Practice for Strategic Impact, 3rd ed. Harlow: Pearson Education
Turner, J. R. (2009) The Handbook of Project-based Management, 3rd ed, Chapter 15

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Hisham El Sherbini MPSP Assignment

8. APPENDICES

8.1. GLOSSARY

Acronym Meaning Note

CS Consultancy Services The business unit which is the focus of this report
CSF Critical Success Factors
KIBS Knowledge Intensive Business Services Business operations heavily reliant on professional
knowledge
KPI Key Performance Indicator
PM Project Management
PMO Project Management Office
RAP Resource Allocation Process The process at the heart of this assignment
SAM Sales Account Manager

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Hisham El Sherbini MPSP Assignment

8.2. PROJECT DEFINITION

(Race, 2012)

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Hisham El Sherbini MPSP Assignment

8.3. TRANSITION CYCLE

(Adapted from Adams et al, 1976 cited in Henley Business School, 2012b)

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