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Ask the Pro: Effectively Managing the People Dimensions of Service Delivery Transformations

Michael Gretczko, Principal, Deloitte Consulting LLP

Question: 

As a leader, I have experienced that large-scale transformation initiatives are fraught with risk. I hear from others that effective people management is critical to managing these risks. Is that true? If so, how?

Answer: 

People management aims to achieve an efficient, uninterrupted transition to a new way of doing business. When carefully architected, a focus on the people issues can significantly reduce program risk and accelerate the pace of the progress in the Service Delivery Transformation. People management utilizes targeted solutions based on insights from change analytics and identifies opportunities to accelerate performance with new roles, responsibilities, and skills needed in the new service environment. The focus of its efforts include specific areas, such as, change management and alignment, communications, organization design, service center recruiting/staffing, and training.

As leaders or stakeholders in Service Delivery Transformation initiatives, the following indicators help pinpoint the people risks that may need attention. Focusing on overcoming these potential risks can help facilitate effective change through the journey to a new Service Delivery model:

  • Lack of leadership and stakeholder engagement. Leaders and specific stakeholders are not consistently and visibly supporting the change. Impacted stakeholders are not completely willing and prepared to adapt. The change may not be designed effectively through engagement of the required people.
  • Workforce is not fully aligned to the transformation. The change may not have sufficient and ongoing investment and ownership from the workforce. The workforce may not be both aware of and ready for the changes that will occur on day one of the new Service Delivery model.
  • Inadequate systems and structures. The required resources, processes, and tools may not be in place to execute the change. The new organizational design may not align with the new service delivery model’s business imperative, and the total rewards (compensation and benefits) structures may not align to the market for the new roles and responsibilities.
  • Lack of necessary workforce capabilities. The workforce may not possess the applicable skills, knowledge, and behaviors to maintain customer satisfaction during the transition or within the new Service Delivery model.

In my experience, the people component is an important factor that if overlooked can compromise the ability of the organization to achieve the benefits of Service Delivery Transformation. The most effective transformations I have been a part of have the people components as a deliberate and prominent part of the initiative.

Michael Gretczko, Principal, Deloitte Consulting LLP

 

 

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This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

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