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Interdependency Management

Interdependency Management

Clear management of interdependencies is key to success in an integration or a carve-out. This topic tends to be underestimated, as workstream leads have a habit of primarily being fully focused on ‘their’ deliverables. When an integration or a carve-out entails a large number of projects and activities, managing interdependencies is likely to become very important.

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Purpose

Aerial view highway interchange

Interdependencies are an integral part of work plans within different workstreams/projects and cross-references. When a workstream relies on an activity from another workstream, it should be clearly indicated in both work plans, and responsible project managers should be committed to contribute.

Additionally, managing interdependencies plays a crucial role in realising value from an integration or carve-out. More often than not initiatives that yield large financial benefits span across multiple workstreams, thereby generating interdependencies between the different workstreams.

Our KPMG Separation & Integration practice implements a holistic approach in all our engagements and believes in thinking outside the box.

Visibility & commitment

To ensure visibility and commitment, all workstreams are involved in listing the interdependencies with other specific programs. Both the Receiving (the program which relies on the activity/project from another program) and the Supplying party (the program which needs to execute a certain activity/project to enable another program to progress) sign off.

Example

The Finance workstream can only implement its one way of working according to company standards when a certain application is live and data is in one system. The Finance workstream is the Receiving party and the IT workstream is the Supplying party.

IT is depending on Finance with the implementation of some tooling as the Finance workstream needs to define further functional requirements. In this case Finance is the Supplying party and IT the Receiving party.

These interdependencies will be listed in one form and signed off between Finance and IT.

People wearing red helmet working together on racing car

Hands-on approach

By executing carrousel sessions, where all project managers are present, KPMG Separation & Integration consultants identify where they can support the workstream leads. By using a predefined format, workstream leads are encouraged to share the purpose and planning of their project and use the collective knowledge to identify and capture the interdependencies.

Once captured, all interdependencies are assessed in order to separate the most complex ones. Those will be placed under additional co-ordination and reported in Steerco and In-Progress meetings.

As integrations and carve-outs usually evolve with information becoming ​gradually available, the interdependencies need to be revisited on a regular basis. A daily stand-up meeting is a great method to connect between project managers.

Additionally, the team has extensive knowledge of how to set up and effectively use technology tools such as Sofy®, Traction® or other off-the-shelf planning tools to actively monitor, co-ordinate, track and report on interdependences.

Our unique Separation & Integration team has a broad range of consultants from different professional backgrounds and industries. Through a holistic approach, thinking outside the box and by integrating our expertise, we achieve added value.

More information

Would you like to know more about managing interdependencies throughout a deal or other large scale strategic transformation projects? Contact Liselore Sauer or Sarang Malik.

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