CHANGE MANAGEMENTIN PROJECTS

By Edda Nömmela

WHY: Project Failure

TOMANAGEMENT

INTROCHANGE

DEFINITIONChange management is the application of structured processes and set of tools for leading the people side of change to achieve a desired outcome (Prosci, 2016).

It focuses on the PROCESS –how change is implemented.

IN AN IDEAL WORLD

If I build it, everyone will use it

If I build it, everyone will use it immediately

If I build it, everyone will use it effectively

IN A REAL WORLDOrganizations are introducing more EMPOWERING structures, cultures and ways of working

Change management is discretely incorporated into the existing roles and responsibilities of project managers.

INTERPERSONAL and POLITICAL SKILLS are needed to work cross-functionally with a diverse group of stakeholders

WHAT IS CHANGE MANAGEMENT

Crucial part of a change project

Deals with the most important yet most unpredictable aspect of the implementation; THE PEOPLE

Each and every project manager should know the basics

Meet

objectives

Finish on time and on budget

Return On Investment (ROI) realized

LEADERSHIP

CHANGE

MANAGEMENT

PROJECT

MANAGEMENT

(Prosci, 2016)

“Valley of despair”

Without change management With change management

WHY IS IT IMPORTANT(Newton, 2007)

PROJECTFAILURE

PART I

FOR INTERNAL USE ONLY

A TYPICAL PROJECT

10

0%

10%

20%

30%

40%

50%

60%

2002 2004 2006 2008 2010 2012 2014

Successful

Challenged

Failed

(The Standish Group International, 2015)

No stakeholder involvement

EARLY WARNING SIGNS OF FAILURE

No documented success criteria

(Kappelman et al. 2006)

AND CHALLENGED PROJECTS

Top 5 responses for what project managers would do better next time:

1. Engage sponsors better

2. Start change management activities sooner

3. Emphasize employee engagement and involvement

4. Secure sufficient resources for change management

5. Improve communications

(Hiatt & Creasey 2003, p. 129.)

MANAGINGCHANGE

PART II

Common vision and direction that is

separate from the past

Find sponsors and supporters to

create a guiding coalition

Craft an implementation

plan including quick wins

Communicate extensively and

encourage involvement

Consolidate gains and produce more

change

Reinforce and institutionalize the

change

Commitment

Engagement

Awareness & understanding

PRINCIPLES

“if you fail to plan, then you plan to fail” Remember the 5 P's:

Proper Planning Prevents Poor Performance

Projects are 90% planning, 10% implementation

There are no IT projects!If a project is seen solely as an IT project, getting the buy-in from business teams is a lot more difficult the project is likely to fail

FOR INTERNAL USE ONLY

FAMOUS CHANGE MANAGEMENT MODELS

16

Lewin 1951 Kotter 1996 Beer et al. 1990 Nadler 1998

Unfreeze1. Establish a sense of urgency2. Create a guiding coalition

1. Commitment to change through joint diagnosis of business problems

1. Recognize the change imperative

Move/Change

3. Develop a vision and strategy 2. Develop shared vision

2. Develop a shared direction4. Communicate the vision

5. Empower employees to action3. Consensus, competence to enact and cohesion around new vision

6. Generate short-term wins7. Consolidate gains and produce more change

4. Spread through all departments without push from the top

3. Implement change

Refreeze 8. Incorporate changes into the culture

5. Institutionalize through formalpolicies

4. Consolidate change

6. Monitor and adjust in response to problems

5. Sustain change

ORGANIZATIONS HAVE MANY DIMENSIONS

CHANGES HAVE TO BE ANALYZED FROM ALL

DIMENSION: WHAT

CHANGES AND HOW?

DATA

PROCESSES

SYSTEMS

CULTURE

PEOPLE

STRUCTURETASKS

CHANGEACTIVITIES

PART III

KEY CHANGE MANAGEMENT ACTIVITIES

Change analysis and planning

Stakeholder engagement

Communication

Expectations management

Training coordination

Change monitoring / follow-up

INSPIRING CHANGE

SEE:Point to the destination and why it’s worth going there

FEEL:Knowing isn’t enough – make people feel something

CHANGE:Shrink the change – find small milestonesBuild the guiding teamBehaviour is contagious – build habits

Remember: What looks like a people problem is often a situation problem

(Heath & Heath 2010)

RESISTANCE TO CHANGE

Resistance is a way of saying ‘NO' to change.

Change brings new choices that create uncertainty.

Their resistance is expressed through a lack of motivation and low commitment to change.

What looks like resistance is often lack of clarity.

The best approach to managing resistance is an open and honest dialogue with the resistors, where their concerns are heard and addressed.

SUMMARY

Managing change(s) is an essential value-adding activity in successful project management.

People’s behaviour, attitude and support often decide if a project is a success or a failure.

Most projects won’t have a special resource for doing change management. Therefore, it is essential that every project manager knows the basicsabout change analysis, stakeholder engagement, communication and managing resistance.