Packages of measures are the basic building blocks of an enterprise transformation. If these packages are poorly defined, the success of the transformation is almost impossible. So when is a package well defined? There are a few rules of thumb that can help you with your transformation!
As a rule, projects are set up according to the Divide and Conquer method. The idea is quite simple: divide a complex project into manageable subprojects and implement them step by step. There are a few principles that have proven their worth in everyday project work. We will show you what you should consider!
A package of measures
- is the sum of all individual measures of an initiative (e.g. all measures to increase sales).
- has a start and end time, as well as a clearly defined content/scope and a cost estimate.
- is assigned to a person (who is responsible for the package, but does not necessarily have to work on it alone).
- should be comparable to the other packages of the project.
Definition by content
The absolute basic rule is that a package of measures should be consistent in content. For example, you could combine all measures for increasing sales in one package. The focus should not be too broad. All cost reduction measures could include both working capital measures and personnel expense measures. In these situations, it often makes sense to tie up several packages. The next rules explain why.
Definition by size
There's no such thing as a perfect size. Every project is a little different. However, there is already a kind of best practice. This is because a package of measures should not make up more than 20% of the total project effect. So if you want to save 500,000 euros in costs, a package of measures should not have much more than 100,000 euros in effect. Of course there are exceptions. Nevertheless, the rule is a good indicator. Studies (such as this one here for example) show that large initiatives in particular usually fail, while several small initiatives are more often successful.
Definition by reporting cycle
Transformation projects usually have a defined reporting cycle. A steering committee often reports monthly on the progress of the project and decides on new developments. A further rule of thumb with a lot of practical value is based on this periodicity: a package of measures should be evaluable in the first 3 to 5 reporting cycles. This means that after 3 to 5 reporting cycles it should be clear whether the package will be pursued further. The shorter the overall project, the faster you should get to the point where a decision is possible.
Definition by time
The overall project length also plays a role. A package of measures should not last much longer than 33% of the total project horizon. Assuming you are planning a project over 2 years, then a package should not last much longer than 8 months. Because the longer a package of measures is planned, the more difficult it is to maintain the motivation of the project participants.
So what is a good package of measures?
A good package does not have to follow all the rules of thumb slavishly. But the rules of thumb help a lot on their own. Even the process of checking against these rules will bring you something. Because you will be able to justify deviations from the rules and this alone will sharpen the package!
Of course, Falcon can also help you substantially with the structuring of your projects. Do you want to know how? Ask us via info@nordantech.com. We wish you much success with your projects!
Download Best Practice
You want to know more? Read our Best Practice Effects booklet and learn how to structure packages in the best way!