9.10. Communicating Rationalization Outcomes

Effectively communicating the outcomes of rationalization efforts is critical to building trust, securing ongoing support, and demonstrating the value of Application Portfolio Management (APM) initiatives. Transparent and structured communication ensures that stakeholders understand the results, benefits, and lessons learned from rationalization activities.

9.10.1 Why Communication is Important

• Builds Stakeholder Confidence
  • Demonstrating tangible outcomes reassures stakeholders that rationalization efforts are effective and aligned with organizational goals.
• Drives Continued Support
  • Clear communication of success encourages ongoing buy-in from executive leadership, IT teams, and business units.
• Fosters Transparency
  • Sharing both successes and challenges creates trust and positions APM as a collaborative effort.
• Highlights Business Value
  • Articulating cost savings, risk mitigation, and operational improvements reinforces the strategic importance of APM.

9.10.2 Key Objectives of Communicating Rationalization Outcomes

• Highlight Benefits Achieved
  • Cost savings, reduced redundancies, and improved efficiency.
  • Enhanced alignment with organizational goals.
• Share Metrics and KPIs
  • Quantify outcomes using measurable data, such as cost reductions, eliminated redundancies, and improved application performance.
• Address Stakeholder Concerns
  • Acknowledge challenges faced during rationalization and explain how they were addressed.
• Provide Transparency
  • Clearly articulate decisions and their rationale to foster understanding and trust.

9.10.3 Target Audiences for Communication

• Executive Leadership (CIO, CFO, etc.)
  • Focus: Strategic alignment, cost savings, and business impact.
  • Preferred Format: Executive summaries, dashboards, and ROI reports.
• IT Teams
  • Focus: Technical outcomes, operational efficiencies, and lessons learned.
  • Preferred Format: Detailed reports, process documentation, and technical presentations.
• Business Units
  • Focus: Impact on workflows, improved tools, and user experience.
  • Preferred Format: Tailored updates, training sessions, and one-page summaries.
• End-Users
  • Focus: Changes in applications, benefits of new tools, and support resources.
  • Preferred Format: Email updates, training materials, and FAQs.

9.10.4 Steps to Communicate Rationalization Outcomes

1. Define the Narrative
   • Frame the rationalization outcomes as part of a larger organizational strategy (e.g., digital transformation, cost optimization).
   • Emphasize how the outcomes align with business goals and address specific pain points.
2. Prepare Key Metrics and Visuals
   • Use data to back up the outcomes, such as:
     • Total cost savings achieved.
     • Number of redundant applications eliminated.
     • Performance improvements (e.g., faster response times or better uptime).
   • Create visuals like charts, graphs, and dashboards to make the data accessible and impactful.
3. Tailor Messages to Stakeholders
   • Customize communication based on the audience’s priorities and level of technical understanding.
   • For example:
     • For executives: Highlight ROI and strategic impact.
     • For IT teams: Focus on technical efficiencies and lessons learned.
4. Share Success Stories
   • Include real-world examples of rationalization benefits, such as:
     • Consolidation of collaboration tools improving team productivity.
     • Retirement of legacy systems reducing compliance risks.
   • Use case studies or testimonials to humanize the impact.
5. Provide Context for Challenges
   • Be transparent about obstacles encountered during rationalization and how they were overcome.
   • Highlight lessons learned and plans to improve future efforts.
6. Celebrate Success
   • Publicly acknowledge the efforts of teams and individuals who contributed to the rationalization initiative.
   • Use internal communication channels (e.g., newsletters, intranet) to share the achievements.
7. Facilitate Feedback
   • Create opportunities for stakeholders to share their feedback on the rationalization outcomes.
   • Use surveys, workshops, or one-on-one meetings to gather input.
8. Maintain Ongoing Communication
   • Rationalization is not a one-time activity; communicate updates as part of an ongoing APM practice.
   • Regularly share progress, new initiatives, and long-term goals.

9.10.5 Examples of Key Metrics to Share

• Financial Impact
  • Cost savings: “Achieved $500,000 in annual cost reductions by retiring underutilized applications.”
  • TCO reductions: “Lowered Total Cost of Ownership by 25%.”
• Operational Improvements
  • Reduced redundancies: “Eliminated 15 overlapping applications, consolidating into 3 enterprise-wide tools.”
  • Improved performance: “Reduced average application response time by 30%.”
• User Impact
  • Adoption rates: “User adoption of the consolidated CRM increased by 40%.”
  • Satisfaction: “Employee satisfaction with tools improved by 25% based on survey results.”
• Risk Mitigation
  • Security improvements: “Decommissioned 10 legacy applications with known vulnerabilities.”
  • Compliance: “Achieved full compliance with GDPR through data consolidation efforts.”

9.10.6 Challenges in Communicating Outcomes

• Lack of Clarity
  • Challenge: Stakeholders may not fully understand the outcomes or their significance.
  • Solution: Simplify technical language and focus on tangible benefits.
• Resistance to Change
  • Challenge: Stakeholders may focus on disruptions caused by rationalization rather than its benefits.
  • Solution: Emphasize the long-term value and provide support during transitions.
• Inconsistent Messaging
  • Challenge: Mixed messages can confuse stakeholders or undermine trust.
  • Solution: Ensure all communications align with a central narrative and use consistent language.

9.10.7 Best Practices for Effective Communication

• Be Transparent
  • Share both successes and challenges to build trust and credibility.
• Use Storytelling
  • Incorporate success stories or testimonials to make outcomes relatable and engaging.
• Leverage Visuals
  • Use dashboards, infographics, and charts to present data in an accessible format.
• Involve Champions
  • Enlist influential stakeholders to advocate for the rationalization initiative and its outcomes.

9.10.8 Outcomes of Effective Communication

• Enhanced Stakeholder Trust: Clear communication builds confidence in the APM process.
• Stronger Buy-In: Demonstrating value encourages continued support for future rationalization efforts.
• Improved Collaboration: Transparent updates foster a culture of teamwork and shared goals.
• Increased Momentum: Celebrating success motivates teams to pursue additional APM initiatives.

By effectively communicating rationalization outcomes, organizations can not only demonstrate the value of their efforts but also pave the way for sustained success in managing and optimizing their application portfolios.