Applying Change Management Principles in the Project Management Community
Kristen Springer
Greg Pogarch
January 11, 2010
What we will share…
Introductions
Change and Project Management – defined and explained
GMAC and Change Approach Tool Demo
Q&A
What we hope you will take away…
A deeper understanding of organizational change management
The ability to describe why effective OCM is important
Insight into the benefits that effective OCM has on a project and for the individuals leading a project
A description of the characteristics of change Understanding of common obstacles for
implementing effective OCM An approach on how stakeholder management and
change adoption can be applied within project management methodology
What is Change?
“The only constant is change...”- Isaac Asimov
“The only constant is change...”- Isaac Asimov
In business, change often feels constant. There are many type of business change, including:
Human Response to ChangeThere are natural human responses to change.
Although all people are unique individuals, we tend to have similar responses to change.
In general, people don’t like change.
What is Organizational Change Management?
Organizational Change Management (OCM) is the discipline or practice of helping people adopt or accept change.
OCM helps transition individuals, teams, and organizations from a current state to a desired future state.
What is Organizational Change Management? (continued...)
OCM includes both the processes and tools for managing the people side of the change.
Process Tools
Communication
Training
Organizational Change
Change Models/Approaches/Gurus
The practice of OCM is supported by research and practical application. There are many OCM models and frameworks, including:
8 Steps of Successful Change (John Kotter’s Leading Change 1995)
Formula for Change (Richard Beckhard and David Gleicher) ADKAR (Prosci) People Centered Implementation (Changefirst) Change Acceleration Process (General Electric) The Seven S Strategy (McKinsey) Managing at the Speed of Change (Conner) And others…
How does OCM fit into PM work?
Every project/ program creates change System / Technology (tools we use) Process / Procedure (how we work) Policy / Documentation (what we follow) Skills / Role (who does what)
YOUR role depends on your organization Lead/execute change efforts? Ensure change efforts are completed? Guide/encourage business to own change efforts? All of the above?
Why is Effective OCM Important?
Effective OCM supports achievement of the project’s goals and objectives.
Enables timely project implementation with
an engaged and readied workforce and
avoids negative interruption to the business.
GE Capital: Change Research
100% of all projects evaluated as “Successful” had a good technical solution or approach
Over 98% of all projects evaluated as “Unsuccessful” also had a good technical solution or approach
What is the differentiating factor between success and failure?
Formula for Results
Q x A = EQ x A = E Quality X Acceptance =
Effective Results
The Effectiveness (E) of the result is equal to the Quality (Q) of the solution times the Acceptance (A) of the idea.
The Equation: Q x A = E
This is what you will see if you spend nominal effort on both the Q and the A
This is what you can expect to see if you put a lot of effort into the Q but not the A
This is what you can expect to see if you spend equal amounts of effort on both the Q and the A
Change at GMAC Inc.
GMAC is a global financial services company that was founded in 1919. Initially formed to provide automotive finance products and services to General Motors dealers and clients, GMAC has since expanded its business to include mortgage operations, insurance, commercial finance and online banking.
Until 2006, GMAC was a wholly owned subsidiary of GM.
Nov. 30, 2006 -- GM sold a 51 percent stake in the company to a group of investors led by Cerberus Capital Management, L.P.
Dec. 24, 2008 – Federal Reserve Board approves GMAC as a bank holding company under the Bank Holding Company Act.
April 2009 -- GMAC entered into an agreement with Chrysler to provide auto finance products and services to Chrysler dealers and customers.
May 2009 -- GMAC's ownership structure was amended again when GM and Cerberus transferred certain of their GMAC equity interests to third parties, resulting in further diversity in the ownership structure of the company.
Nov 2009 – GMAC’s Board of Directors appoints a new CEO, Michael Carpenter, to lead the company.
What is the impact of these changes to GMAC Inc. Up until 2006 – captive finance company of GM with numerous
stand alone subsidiaries Multiple large initiatives began to standardize processes and
systems across the organization
Must meet regulatory guidelines as a “bank holding company” within 2-5 years 100+ projects lead by 5 large work teams launched to address
compliance
New business priorities to diversify, cut costs, re-brand, etc… 100+ projects are in flight to support critical business initiatives
Company is facing changing leadership, changing business priorities, and a changing identity
GMAC is introducing “Change Enablement” to its PM Community
Q x A = Q x A = EE
Quality X Acceptance = Effective
Results
Stakeholder Management supports quality project execution and prepares for change
Stakeholder Management is the process by which a project’s key stakeholders are identified and an approach to win or maintain their support is developed. Good stakeholder management leads to quality project execution and deployment.
A stakeholder is any person or group who participates in or will be influenced by the outcome of your project.
Some of these people may be strong supporters. Others have the influence to undermine your project and your
position. Some people will be the recipients and users of the end result of
the work and carry on the success and intent of the project.
QQ x x AA = E = E
Stakeholder Management Workbook helps prioritize, plan, monitor
1. Stakeholder identification
2. Stakeholder analysis
3. Stakeholder communication plans/routines
Keep Satisfied Manage Closely(key player)
Keep Informed
Influence
Interest
Monitor (minimum effort)
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5 6 7 8 9 10
• Sr. Executive• Business Lead
• Project Team
• Business Team Director
• Super Users
• Department Employees
Stakeholder Management Workbook
Tool Demo
Disciplined Stakeholder Management benefits the project team
Create a shared vision of the project’s desired results
Minimize disagreements and gains consensus with project sponsors
Minimize skepticism Build enthusiasm for the project Gain organizational commitment
and advocacy during the lifecycle of the project, which may result in obtaining project resources or other support
Organizational commitment to support the necessary activities to adopt the change
Address sensitive issues such as leadership resistance
Change Adoption supports the business “readiness” to accept change
Change Adoption supports smooth transition/change within the business and supports benefits realization to the enterprise
QQ x x AA = E = E
Change Adoption Workbook helps plan appropriate communication, training and organization transformation tactics
1. Change definition
2. Change impact analysis (people, process, policy, technology)
3. Change plan (includes organizational change, communication and training strategy)
Communication
Training
Organizational Change
Change Adoption Workbook
Tool Demo
What are common barriers to using change management in practice? Perception that the change is not significant Perception that there is not enough time or resources Perception that traditional project meetings/routines
are adequate Lack of understanding and/or OCM skills on the
project team Lack of support by leadership Misunderstanding of who owns organization change
management among the project stakeholders
What happens when Change isn’t managed Changes are not defined and not well communicated The case for change and the benefits of the change are not well
understood Fear, anxiety, and resistance prevent acceptance Enough people don’t get on board People don’t understand how they need to change behavior People don’t have confidence in the change and complacency
rules New systems, tools, processes, and policies aren’t used
properly or at all Confusion abounds and deployment results are poor Benefits realization goals take too long or are never
reached Transformation is not achieved
Summary – What can YOU do?
Weave OCM work into the DNA of what you do…
OCM must be a part of successful project implementation: Q x A = E
Can be executed multiple ways and without significant cost
PMs will benefit when they play a direct role in stakeholder management within their project
PMs can help the business learn to own and drive quality change adoption
Questions?