Change Management within Project Management: AnIntegrated Structural Business Process Approach

23 Feb. 2012, BCS Hellenic Section

In Brief

Most project managers follow established project management methodologies inorder to achieve success. However, some degree of failure is evident in mostorder to achieve success. However, some degree of failure is evident in mostprojects worldwide. One important reason for this failure, is that projects oftenimplement change, and in its turn change may introduce new risk parameters.

Successful change can be influenced by a variety of factors, which can affect theg y y ,result of change itself, as well as the objectives of the project. Changemanagement is the strategic and structured approach for transitioningindividuals, teams and organizations from a current state to a desired futurestate.

Change and project management must be considered as integrated Transitionalactivities. The success of the one largely depends on the success of the other.

Harris Apostolopoulos BEng(Hons), MSc, MBA, PhD.C, MIET

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g( )

Agendag

Introduction to Change Management Change Management and Project ManagementChange Management ModellingP j t’ F il R iProject’s Failure ReasoningProject Management and Change Management IntegrationSurvey: Project Management TeamSurvey: Project Management TeamConslusions / Open Discussion

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Generic Change Management DefinitionsDefinitionsChange management is a systematic approach to dealing with change, both from the perspective of an organisation and on the individual level. A somewhat ambiguous term, change management has at least three different aspects including: adapting to change controlling change and effecting changethree different aspects, including: adapting to change, controlling change, and effecting change.

Source: http://searchcio-midmarket.techtarget.com/definition/change-management

Change management - the formal process where changes to the project are introduced and approvedChange management the formal process where changes to the project are introduced and approved.

Source: http://www.pmhut.com/pmo-and-project-management-dictionary

Change management can be defined as a set of processes that is employed to ensure that significantChange management can be defined as a set of processes that is employed to ensure that significant changes are implemented in an orderly, controlled, and systematic fashion to effect organizational change.

O f th l f h t i ith d t th h t f iOne of the goals of change management is with regards to the human aspects of overcomingresistance to change in order for organisational members to buy into change and achieve theorganization’s goal of an orderly and effective transformation.

Source: http://www.tech-faq.com/change-management.html

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Source: http://www.tech faq.com/change management.html

The Change Curveg

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Source: http://www.change-works.com.au/blog.php?blog_id=34

Types of Changeyp g

Two major categories individual change management and organisational change• Two major categories, individual change management and organisational change management.

• Especially in multinational companies cross-cultural issues can affect planned• Especially in multinational companies, cross-cultural issues can affect planned changes and the process can get complicated.

• However, the transitional period of change (which may lead to adaptation) is not only a, p g ( y p ) ytime consuming but also a risky process; due to cultural or even organisationalreasons the whole process is subject to fail.

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Views on Changeg

Duck (1993) argued that change is intensely personal.

Luecke (2003) separated change into four types; structural, cost cutting, process and cultural.

Cultural change mainly concerns the organisation’s general approach to doing businessCultural change mainly concerns the organisation s general approach to doing businessor the relationship between managers and employees.

Schaffer (2000) discussed discontinuous versus continuous incremental change.

Johnson et. al., (2006:) explained that “it is for the benefit of an organisation the nature of change to be incremental” of four types:

AdaptationReconstructionEvolution

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Revolution

Cultural Changeg

Hofstede (1980) argued that the cultural differences between nationalities were evidentwhen employees of the same organisation were spread over many countries.

Stuttard (2000) concluded that “one common mistake is that, foreign managers fail torealize how pervasive it is”.

Pitta et.al, (1999); managers’ business behaviour is directly related to the country’sculture.

• Dealing with culture has the difficulty to define it universally.

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Agendag

Introduction to Change Management

Change Management and Project ManagementChange Management ModellingP j t’ F il R iProject’s Failure ReasoningProject Management and Change Management IntegrationSurvey: Project Management TeamSurvey: Project Management TeamConslusions / Open Discussion

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Significanceg

Market needs are constantly changing; market adaptation, strategic business planning, flexibility, speed, cultural changes are more than mandatory.

Most of the common project management methodologies such as critical chain project management (CCPM), and PRINCE2, PMI, focus on:

Time Cost Quality

Those project management methodologies do not take into serious considerationBusiness Cultural Issues, Change Management and Adaptation., g g p

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Significance (Cont.)g ( )

Too much emphasis on deliverables or outcomes (e.g. capabilities) which on their own oo uc e p as s o de e ab es o outco es (e g capab t es) c o t e odo not deliver specific benefits, or even in the processes (the way things have to be done).

The main difficultly arises from the fact that culture itself is difficult to be definedThe main difficultly arises from the fact that culture itself is difficult to be definedbecause it differs among organisations and individuals.

Kroeber (1985); there are more than 160 different definitions of culture.

As Kanungo (2006) argued “people in different cultures respond in different ways”in effect understanding and adapting to changes.

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Project Curvej

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Source: http://www.visitask.com/s-curve.asp

PMBOK and Changeg

42 steps mapped in 5 processes:

1) initiating2) planning3) executing4) monitoring & controlling5) closing5) closing

When issues are found while project workis being performed, change requestsare issued which can modify projectpolicies or procedures, project scope,project cost or budget, project schedule,or project quality. Other change requestscover needed preventive or correctiveactions to forestall negative impact lateractions to forestall negative impact laterin the project. Requests for a change canbe direct or indirect, externally orinternally imitated, and can be optional orlegally/contractually mandated. (PMBOK,4th diti 87)

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4th edition, pp.87)Source: Project Integration Management Overview, PMBOK, 2008; p.73

PMBOK and Change (Cont.)g ( )

Changes: in the project management planthat result from the Project Riskthat result from the Project RiskManagement process may require decisionsat the appropriate level of management toreassign personnel, establish or modifybudgets, make commitments to othersoutside the project, interact with regulators,and comply with the rules of accounting andlaw pp.5, PMIRisk).

Perform Integrated Change Control: is the process of reviewing all change requests approving changes

Source: Perform Integrated Change Control, PMBOK, 2008; p.95

Perform Integrated Change Control: is the process of reviewing all change requests, approving changes,and managing changes to the deliverables, organisational process assets, project documents, and the projectmanagement plan. (PMBOK, 4th edition, pp. 61)Change Control: Identifying, documenting, approving or rejecting and controlling changes to the projectbaselines, (PMBOK, 4th edition, pp.428)Change Request: Requests to expand or reduce the project scope, modify policies, processes, plans, orprocedures, modify costs or budgets, or revise schedules. (PMBOK, 4th edition, pp.428). Change requests caninclude corrective action, preventive action, and defect repairs. (PMBOK, 4th edition, pp.97)Change Control Board (CCB): A formally constituted group of stakeholders responsible for reviewing,evaluating approving delaying or rejecting changes to a project with all decisions and recommendations being

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evaluating, approving, delaying, or rejecting changes to a project, with all decisions and recommendations beingrecorded. (PMBOK, 4th edition, pp.428)

PRINCE2 and Changeg

Change Control: Changes to specificationsor scope can potentially ruin any project

Source: PRICNE2 Template, PRINCE2 2005; p.195

or scope can potentially ruin any projectunless they are carefully controlled. Changeis, however, highly likely. The control ofchange means the assessment of theimpact of potential changes, theirimportance, their cost and a judgmentaldecision by management on whether toinclude them or not OGC, PRINCE2, p.285)

A change in requirementsA change in the environment applicable to the project, for example:

- a legislative change- a corporate change of direction

40+ separate activities and organized into eight processes:

a corporate change of direction- a new customer- a new supplier- an unexpected change to a member of the project management team- actions by a competitor

t di ti

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- a programme management directive- a corporate reorganisation OGC, PRINCE2, p.286)

Project Change Curvej g

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Source: http://www.leanhrm.com/change.html

Agendag

Introduction to Change Management Change Management and Project Management

Change Management ModellingP j t’ F il R iProject’s Failure ReasoningProject Management and Change Management IntegrationSurvey: Project Management TeamSurvey: Project Management TeamConslusions / Open Discussion

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Change and Adaptationg p

Pascale (1990); “change requires that businesses continuously reinvent themselves”

Sinclair (1993);culture can be managed and this is a responsibility of the management itself.

Tichy (1983);“we are all beings of habit and tend to repeat what we are comfortableTichy (1983); we are all beings of habit and tend to repeat what we are comfortable with.”

Schlossberg (1981) , Successful adaptation might involve establishing a structuredth d l f di t h h li i t h l imethodology for responding to changes such as new policies, or technologies.

Parkes (1971); “First, abandoning one set of assumptions and then developing a fresherframe, so as the person to cope with the new changes”.

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Change Modelsg

Briefly, Lewin (1951) described change as a three-stage process:

UnfreezingConfusionRefreezing

B id (1991) ith i il d lBridges (1991) come up with a similar model:

EndingNeutralNew beginningNew beginning

Bullock and Baten (1985) named their model stages as:

ExplorationPlanningActionIntegration

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g

Cultural Model for Project Successj

O i ti lProject

Manager competencies

OrganisationalCultural values

values values

Performance Management

OrganisationDesign Project

Management C lt

Processes

Culture

values valuesProcesses

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Source: Kendra and Taplin, 2000,

Agendag

Introduction to Change Management Change Management and Project ManagementChange Management Modelling

Project’s Failure ReasoningProject s Failure ReasoningProject Management and Change Management IntegrationSurvey: Project Management TeamSurvey: Project Management TeamConslusions / Open Discussion

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Chaos Reportp

1994 “Chaos” report indicated that before they ever get completed 31 1% of projects will be cancelled1994 Chaos report indicated that before they ever get completed. 31.1% of projects will be cancelled Average success rate was estimated to 16.2% (1994).(2003) project success rates have increased to just over 34%.On the contrary, project failures have declined to 15% (of all projects), which is more than half (31%) in 1994.

Chaos Report (2007); overall picture of IT project failure has not gone under significant changes; actually, it varies from 50% to 70%. It is being indicated that a poor requirement analysis remains the main reason for project failure. g p q y p j

Other views:

Taylor (2000) in his research revealed that out of 1,027 projects only 130 (12.7%) was successful.

After all, nailing down the requirements is usually only 8% to 15% of the overall project effort (Gottesdiener, 2001).

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Why Changes Fail?y g

-Bourne & Walker (2005) categorised project failure as technical, data, user, andorganisational; culture of the stakeholders is one of the organisational reasons why projectsfail.

-Winters (2002), explained that culture is one of the top 10 reasons why project fail; forhim culture means more than just expectations.

-Most of the times it is the manager’s fault who fails to understand what the customers reallywant, transform words into action and finally deliver the project.

-Gottesdiener (2001) argued that “rework due to requirements defects can eat up as much0% f ll b d !as 50% of your overall budget!

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Kotters’ Failure Reasoningg

Error #1: Not Establishing a Great Enough Sense of UrgencyError #1: Not Establishing a Great Enough Sense of Urgency

Error #2: Not Creating a Powerful Enough Guiding Coalition

Error #3: Lacking a VisionError #3: Lacking a Vision

Error #4: Undercommunicating the Vision by a factor of Ten

Error #5: Not Removing Obstacles to the New VisionError #5: Not Removing Obstacles to the New Vision

Error #6: Not Systematically Planning for and Creating Short-Term Wins

Error #7: Declaring Victory Too SoonError #7: Declaring Victory Too Soon

Error #8: Not Anchoring Changes in the Corporation’s Culture

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Poor Requirements Analysisq y

-Changing the initial requirements is:

-Time consuming, but also a risky activity, which in effect requires strategic planning andflexibility.

Robertson (2002) argued that “the traditional job of requirements analysis is to talk to users-Robertson (2002) argued that the traditional job of requirements analysis is to talk to users,find out how they work, ask them what they want, specify what is required, and have it built”.

-Langham(2004) stressed the fact that communication difficulties have more to do with

business culture than any failure of a project organisation or methodology.

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The Best Ways to Sustain Changey g

Step1: Mobilize energy and commitment through joint identification of business problems and their solutionsand their solutions

Step2: Develop a Shared Vision of How to Organize and Manage Competitiveness

Step3: Identify LeadershipStep3: Identify Leadership

Step4: Focus on results, Not on activities

Step5: Start change at the periphery, then let it spread to other units without pushing it fromStep5: Start change at the periphery, then let it spread to other units without pushing it from the top.

Step6: Institutionalize, success through formal policies, systems and structures

Step7: Monitor and Adjust Strategies in Response to Problems in the Change Process

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Source: Beer et al., (1990: pp.161-163),

Agendag

Introduction to Change Management Change Management and Project ManagementChange Management ModellingProject’s Failure ReasoningProject s Failure Reasoning

Project Management and Change Management IntegrationSurvey: Project Management TeamConslusions / Open Discussion

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Project Management and Change Management

Project management can have strategic value, when there is link between the level of effectiveness and how efficiently a project is accomplished and when the project’s outcomes (product or services); can provide overall business value.

Change management itself, is also a strategic and structured approach to transitioning individuals, teams, and organisations from a current state to a desired future state. g

Pitagorky (2011) “Project managers, to be effective must be competent change managers.

Homes (2001) explained that project managers should establish a solid foundation for ( ) j gchange and that today’s role of project manager focuses more on the project and the team.

Effective projects are those which achieve a business change within a managed organisational context (Gooch, 1997).

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Project Management and Change Management Integration

P j t M tProject Management

Current Transition Future

Change Management

Project management and change management may seem as separate, but they are integrated in practice.

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Source: http://www.change-management.com/tutorial-definition-2009.htm

Project Management and RISK Management

Risks that are worth to be investigated can be highlighted through analysis to their highchance of occurrence or the high impact they can have.

One of the main purposes of project risk management is to identify, estimate and controlproject risks which effectively are related to project success or failure.

Risks that are related to change management are addressed both with strong control andnegotiation strategies.

Risk can be very simply identified as “any potential problem that threatens the success of aproject” (Taylor, 2006).

Changes incur RISK and have to be controlled.

Oxford’s dictionary definition: “Risk is related to: a situation involving exposure to danger, the possibility that something unpleasant or unwelcome will happen”.

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Agendag

Introduction to Change Management Change Management and Project ManagementChange Management ModellingProject’s Failure ReasoningProject s Failure ReasoningProject Management and Change Management Integration

Survey: Project Management Teamy j gConslusions / Open Discussion

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Successful Change Management & Adaptation TreeAdaptation Tree

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Case Study: Project Management Team SurveySurvey

Parent Node: PMT (Project Management Team)Child Nodes: Performance, Motivation, Appraisal, Rewards, TrainingRespective Attributes

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Glossary: Performance (Child)y ( )

Performance: Based on the achievement of preset metrics such as KPI’s (Key PerformanceIndicators),Balanced Score Cards, KSFs, (Key Success Factors), 360, SLAs (Service LevelAgreements)Planning outcomes: The term used to describe the totality of what the project is set up to deliver,consisting of all the specialist products (OGC, PRINCE2, p.333)Proper planning and organisation of the transition on a life-cycle basis will facilitate a successfulchange (Kerzner, 1995, Project Management, 5th edition, p.149)change (Kerzner, 1995, Project Management, 5 edition, p.149)Attaining Goals: Comply to pre-defined results in terms of project goal and objectives.Benchmarking: comparing one's business processes and performance metrics to industry bests;commonly related to time, cost and quality. Try to take advantage the good paradigm and avoid thepitfalls.A t l l P f lt b d b t t li it d t bj ti ( l t t ti fAcceptance level: Performance result based but not limited to objectives (goal, target, time frame,schedule, budget etc)Regular review: Periodic review of project management’s team performance depending onproject’s conditions, e.g., bi-monthly, quarter, etc.Review on agreed standards: Refers to project management standards as defined for exampleg p j g pby PMBOK, PRINCE2, ITIL, Scrum, ISO, etc.Audit and verify: evaluation of project management team and processes based on goals andobjectives for the success of the project.Clear targets: Targets should be clear to all stakeholders from project initiation and connected toresults; upon change they have to be communicated again unambiguously

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results; upon change they have to be communicated again unambiguously.

Conclusions

-The best way to integrate cultural differences and changes into projects requirements analysis processesi t i l l k t th l i b i bl d hi ltis to involve people work together on solving business problems and achieve results.

-In order for projects to be successful all stakeholders even though they might have differentvocabularies they have to find a way, actually model the customer’s requirements and conform to what isbeing expected.g p

-On the other hand, there can be no right way to adapt to cultural changes and moreover to predefinethe results of an IT project, because what works on individual level might not work for others.

Even though there is no right way to manage change flexibility is mandatory; in a broader corporate-Even though, there is no right way to manage change, flexibility is mandatory; in a broader corporateorganisational frame, managing culture is the solution.

-The main goal of all organisational changes is improvement and sustainability; change over change is astage that most managers try to avoid.

-Change Management and Project Management can be seen as integrated and complementaryprocesses.

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Questions?

To live is to change, and to be perfect is to have

changed often

P l d h ith

John Henry Newman

Thank YouPeople do no change with the times, they change the

times

P.K Shaw

Change is the law of life. And those who look only to the y

past or present are certain to miss the future.

John F. Kennedy

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References

Beer, M. Russel, A. Spector, B (1990). Why Change Programs Don’t Produce Change , Harvard Business Review , No.6, Issue. Nov-Dec.

Bourne, L. and Walker, D. (2005). Visualising and mapping stakeholder influence, Management Decision Journal, Iss. 43, pp. 649-660.

Bridges, W (1991). Managing Transitions, Addison-Wesley, Reading, MA.

Bullock, R. J. & Batten, D. (1985). It's just a phase we're going through: A review and synthesis of OD phase analysis Group and Organization Studies, December Vol. 10 (4), p. 383-412

Duck, J (1993). The art of Balancing, Harvard Business Review, Issue. Nov-Dec

Gooch, J. (1997). Managing for demonstrably effective IT projects, Information Management & Computer Security, Vol.5, No.4, pp.133-137.

Gottesdiener, E. (2001). Collaborate for Quality, STQE, The software testing and quality engineering magazine, March/April, http://www.stqemagazine.com; retrieved May.11

Hofstede G H (1980) Culture’s Consequences Beverly Hills CA: SageHofstede, G.H. (1980). Culture s Consequences, Beverly Hills, CA: Sage

Homes, G., (2001). The hybrid manager”, Industrial and Commercial Training, Vol.33, No.1, pp.16-25.

Johnson. G, Scholes. K, Whitington. R (2006). Exploring Corporate Strategy, 7th ed., Pearson Education, Prentice Hall

Kanungo, R (2006). Cross culture and business practice: are they coterminous or cross-verging? Cross Cultural Management Journal, Vol13, g ( ) p y g g gNo.1, pp.23-31

Kendra, K., and Taplin, L. J. (2004). Project Success: A cultural framework. Project Management Journal, Vol.35, No.1, pp.20-45

Kezner, H. (1995). Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 5th edition, International Thomson Publishing Inc.

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Kotter, J (1995). Leading Change, Why Transformation Efforts Fail,Harvard Business Review, Issue. 73 (March-April) , pp. 59-67

References (Cont.)( )

Langham, M. (2004). Practice Leader Bloor Research; http://www.it-director.com/technology/productivity/content.php?cid=7021; retrieved Nov.08.

Lewin, K. (1951). Field Theory in Social Science. New York: Harper and Row.

Luecke, R. (2003). Managing Change and Transition Harvard Business Essential, Harvard Business School Essentials

Office of Government Commerce. Managing Successful Project with PRINCE2 Reference Manual, published by TSO (The Stationery Office), 2005

Oxford Dictionary On line, Definition or Risk: http://oxforddictionaries.com/view/entry/m_en_gb0712950#m_en_gb0712950; retrieved; Mar. 2011

Parkes, C.M. (1971). Psycho-social transitions, Social Science and Medicine, Vol. 5 No.2, pp.101-15

Pascale, R (1990). Nothing fails like success, Managing on the Edge: Companies That Use Conflict to Stay Ahead, New York

Pitta, D. Fung, Hung-Gay, Isberg, S (1999). Ethical issues across cultures: managing the differing perspectives of China and USA, Journal of Consumer Marketing Vol 16 No 3 pp 240 256Consumer Marketing, Vol.16, No.3, pp.240-256

Pitagorky, G. (2011). Project Managers are Change Managers, http://www.projecttimes.com/george-pitagorsky/project-managers-are-change-managers.html; retrieved Nov.11

Project Management Institute (PMI; 2004). A guide to the project management body of knowledge (PMBOK® guide), 4th edition.

Robertson, J. (2002). Eureka! Why Analysts Should Invent Requirements, IEEE software, Iss. July/August

Schaffer, R. (2000). Rapid –Cycle Success versus the Titanics, Harvard Business School publications, 78, no.3, Issue. May-June)

Schlossberg, N.K .(1981). A model for analyzing human adaptation to transition, The Counseling Psychologist, Vol.9, No.2, pp.2-18

Si l i A (1993) A h t i ti l lt d thi J l f B i Ethi V l 12 I 1 63

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Sinclair, A. (1993). Approaches to organisational culture and ethics, Journal of Business Ethics Vol. 12, Iss. 1; pg. 63

References (Cont.) II( )

Stuttard, J. (2000). The new silk road; Secrets of Business Success in China today, PriceWaterhouseCoopers, Wiley & Sons publications

Taylor, H. (2006). Risk management and problem resolution strategies for IT projects: prescription and practice, Project Management Journal, Vol 37 No 5 pp 49-63Vol. 37, No.5, pp.49 63.

The Standish Group (1994). Chaos Report, http://net.educause.edu/ir/library/pdf/NCP08083B.pdf; retrieved Nov. 08

The Standish Group (2003). Chaos Report http://findarticles.com/p/articles/mi_m0EIN/is_2003_March_25/ai_99169967; retrieved Jan.12

The Standish Group (2007). Chaos Report, http://www.standishgroup.com/search/search.php; retrieved Jan.12

Tichy. N. (1983). Managing Strategic Change: Technical, political, and cultural dynamics, John Wiley, New York.

Winters, F. (2002). Top Ten Reasons Projects Fail, http://www.gantthead.com/content/articles/147229.cfm; retrieved Nov.08.

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