Most business leaders understand that executive sponsorship is a key success factor for any technology-based change initiative. In practice, however, they often fail to establish the type of sponsorship required to guide large-scale programs to a successful conclusion. When sponsors believe that their job is simply to set overall direction, obtain funding, and launch the program team, the risk of failure rises dramatically...

1. Global Services Insight
Executive sponsorship:
the cornerstone of transformation
By Kurt Kuelz
Most business leaders understand that execu-
tive sponsorship is a key success factor for any
technology-based change initiative. In practice,
however, they often fail to establish the type
of sponsorship required to guide large-scale
programs to a successful conclusion.
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2. Global Services Insight
When sponsors believe that their job is simply to set overall
direction, obtain funding, and launch the program team, the risk About PTC Global Services
of failure rises dramatically.
The 1,400 professionals at PTC Global
Services help the world’s leading
For example, a large PTC customer was seeking to harmonize
manufacturing companies gain product
product design and manufacturing processes across multiple
and service advantage through solution
business units. The company exhausted a full year with little
strategy and design, process transformation,
progress due to the lack of effective executive sponsorship. The
technology configuration, and organizational
program goal was clear: Implement a new PLM solution to support
training and adoption. Our in-house experts
process improvement and standardization across the company.
and premium services partners work
But the program lacked an engaged executive sponsor to drive
overtime to ensure the best possible results
successful program execution.
and maximum return on investment.
Learn more at PTC.com/consulting
As often happens with such initiatives, there was substantial resis-
tance to change within the business units and the IT organization. For more Insights from the Global Services
Internal tensions were growing and people were losing confidence team, please visit:
that the program could actually deliver on the expected value. PTC.com/consulting/insights
Or scan this code with your mobile device:
Finally, a year after program launch, a senior executive who
understood both the potential value of the program and the
requirements of effective sponsorship stepped in to put the
initiative back on track.
His first challenge was to re-inspire confidence among the
program’s executive leadership. Many on the program team felt
they lacked the expertise and support to drive a harmonization
program across the business units, regardless of the potential
“
benefits. The first year’s lack of results validated their concerns.
The new sponsor reviewed program budgeting, staffing, and
governance, and decided to bring in PTC Global Services as a
joint stakeholder and value contributor. The sponsor repeatedly
briefed the program team on expected business outcomes and
put in place strong accountability for those outcomes. As a
vocal champion of the program, he persistently drove home his
message with his executive peer group as well as all stakeholders
and affected employees.
The reality is that
With strong sponsorship in place, the program team was inspired
programs suffer
to change the program trajectory and accelerate progress. A
year later, the program had showed dramatic results. Once near greatly when
sponsorship
cancellation, the PLM program has now become a gold standard
on how all transformation initiatives at the company should be
managed. The key was the strong, continuous leadership of the
executive sponsor. falls short.”
It simply cannot be overstated: True enterprise transformation Kurt Kuelz
programs cannot succeed without effective executive sponsorship. Divisional Vice President, PTC Global Services
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3. Global Services Insight
In PTC’s experience with large manufacturers, there are four
essential elements to consider.
First, the sponsor needs to be actively engaged in the program from
start to finish. He or she must constantly explain and champion the
initiative up, down, and across the organization to ensure that all
stakeholders understand and commit to the vision for change. You
can’t just get the program going and then outsource leadership to
the program team. Teams inevitably drift off course during complex
programs, and small diversions are easily missed when sponsors
fail to play close attention. When sponsors are not actively engaged,
program drift can take too long to correct and initiatives can end up About the Author
falling far short of their goals.
Kurt Kuelz, Divisional Vice President of
PTC Global Services, is responsible for the
Second, the sponsor needs to lead the decision process through strategy, portfolio, practices, and resources
the inevitable conflicts that arise when preferences within business for PTC’s worldwide consulting business.
units and IT conflict with each other and with what is best for the An expert in process transformation, Kurt
corporation as a whole. Program team members often have little has helped lead product development
experience taking the strategic perspective and weighing the busi- transformation programs with some of
ness pros and cons of different options and tradeoffs. The push and PTC’s largest clients, including Airbus,
pull of daily operations often leads team members to stay close to Schneider Electric, Caterpillar, Cummins,
their business unit perspective; executive sponsors need to step in SKF, Volkswagon, and Volvo. Kurt is also
with guidance and hard decisions. the corporate lead for PTC’s Value-Centric
Engagement model which helps PTC
Third, effective sponsors take full advantage of outside experience customers ensure success through strong
and points of view. Ego often gets in the way of people listening governance, multiyear roadmaps, and
to outside advice but good sponsors view this as a strength not flawless program execution.
a weakness. The chances of success rise dramatically when
internal and external experts work together considering different
approaches before arriving at a decision.
© 2012, PTC. All rights reserved. Information concerning the
Finally, effective sponsors understand that courage is required for benefits and results obtained by customers using PTC solutions
program leaders to drive real change. Without strong leadership, is based upon the particular user’s experience and testimonial, is
furnished for informational use only, and should not be construed
program teams often avoid bold decisions and gravitate toward as a guarantee or commitment by PTC. Due to the varying degree
lower level incremental change. Sponsors need to remind their of complexity of our customers’ products and/or their design
teams that they are expected to make the hard decisions necessary processes, typical or generally expected results are not available.
PTC, the PTC logo and all PTC product names and logos are trade-
to achieve strategic value. Team members, in turn, need to know marks or registered trademarks of PTC and/or its subsidiaries
that the executive sponsor will back them up and support their in the United States and in other countries. All other product or
company names are property of their respective owners.
decisions at the executive level.
J1142–Executive sponsorship–Insights–EN–1112
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