Planning and implementing complex transformation projects – from target definition to roadmap

The successful transformation of companies is a multi-layered process that goes far beyond the mere implementation of individual measures. In this article, we would like to focus on the strategic planning and implementation of complex transformation projects.  

The central question is: How can a clear, feasible roadmap be developed from an often still vague objective? 

1. Target definition: Where should the journey go?

Every transformation begins with the careful definition of objectives. In contrast to traditional reorganization projects, where the objectives are usually defined quantitatively, the objectives of transformation projects are often only qualitative: more modern, more digital, more efficient, more agile. 

It also happens that goals cannot yet be determined at the beginning of the transformation, but are only defined step by step "along the way" during the ongoing project. 

It is important to translate these ideas and overarching guiding principles into concrete interim goals and measurable milestones.  It is equally important to identify so-called "no-gos" – i.e. aspects that should be avoided or abolished at all costs in the course of the transformation. The target definition should cover all relevant levels and areas of the company: from tax and legal framework conditions to the design of co-determination structures and issues of leadership, communication and training. 

2. Ways and alternatives: How can the goal be achieved?

Once the goals are clear, the next step is to analyze possible implementation steps. This is where the complexity of modern transformation projects becomes apparent: There are different implementation options for many objectives, each with their own advantages and disadvantages as well as interactions with other project objectives. For example, the merger of two companies can be achieved by establishing a new joint operation of two companies or by the absorption of one company by the other through a transfer of operations in accordance with Section 613a of the German Civil Code (BGB). Both methods have different legal consequences, for example with regard to the employees' right to object or the continued validity of works agreements and collective agreements. Choosing the right path therefore requires a comprehensive assessment of all alternatives, their impact on scheduling, negotiating partners and the other project objectives.

3. Project team: Who steers the transformation?

Transformation projects regularly affect numerous areas of the company – from IT and data protection to labor and corporate law and tax issues. An interdisciplinary project team should therefore be formed as early as the planning phase to coordinate the various workstreams, keep a holistic view of the goals and paths and be able to react flexibly to new challenges. If this type of project management cannot be carried out internally because the additional tasks cannot be taken on by existing staff, outsourcing of this function should be considered. This can have advantages in terms of greater objectivity, but can also have disadvantages due to the less close relationship with the rest of the structure. In any case, close cooperation between different disciplines is essential in order to manage the diverse aspects and interactions of the transformation.

4. Roadmap and time management: How is the implementation structured?

Once the goals, paths and responsibilities have been defined, the detailed, "classic" planning of the implementation begins. It is important to develop a realistic timetable and roadmap that takes into account the sequence of the individual project steps and the necessary negotiations (e.g. with works councils and, if applicable, trade unions). In the case of cross-company or cross-company transformations, identifying the right negotiating partners at the level of co-determination is of central importance. Negotiations with committees that disregard the statutory responsibilities mean lost time for the company. If operational changes are planned that affect several plants or companies, the group works council (cross-company) or the general works council (cross-company) are responsible for negotiating the reconciliation of interests. Social compensation plans, on the other hand, must be negotiated with the local works councils. Parallel negotiations with several committees are therefore not uncommon and require precise coordination of the procedure. It is important to plan who negotiates what with whom and when, to compile drafts and information and to prepare for negotiations. The roadmap should also take into account escalation and alternative scenarios in order to be able to react flexibly to unforeseen developments.

Conclusion: Careful planning is the key to success

Planning complex transformation projects is an iterative, agile process that requires a clear focus on objectives, the evaluation of alternative paths, the formation of an effective project team and well thought-out time management. This is the only way to master the diverse challenges of modern transformations and successfully implement sustainable changes in the company.  

In the next articles in our series, we will look at other practical aspects – from communication with employees to training measures and government funding opportunities.