Change Management: Enforcing the Transitional Integration towards Projects’ Success
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This document focuses on the integration of change management and project management, emphasizing that effective change management is crucial for project success. It outlines change management as a structured approach to transitioning organizations and individuals towards desired states while highlighting the significance of communication, leadership, and stakeholder engagement. The document also presents various change management models and risk assessment strategies, underscoring the need for organizations to adapt to changes in order to thrive in dynamic environments.
Change Management: Enforcing the Transitional Integration towards Projects’ Success
- 1. Project Management Workshop Change Management: Enforcing the Transitional Integration towards Projects’ Success Dr Harris Apostolopoulos EMBA, PMP Strategy Advisor (Corporate | Program/Project Management | PMO) harris.apostolopoulos@gmail.com 01 Dec. 2016
- 2. In Brief The inevitable constant forces on the triage of scope, time and cost, place change as one of the top priorities in organizational strategies. Uncontrolled changes, regardless of size and complexity can form the antithesis of a stable corporate environment satisfying the exigencies and expectations of customers, affecting planned effort, cost constraints and ultimately success in projects On the other hand change has to beultimately success in projects. On the other hand, change has to be managed, monitored and controlled accordingly. Briefly, Change Management is the strategic and structured approach for ftransitioning individuals, teams and organizations from a current state to a desired future state. To this frame, Change and Project Management must be considered as integrated transitional activities. The success of the one largely depends on the success of the other. Project management can havelargely depends on the success of the other. Project management can have enhanced strategic value, when there is a link between the level of effectiveness and how efficiently a project can provide relevant business value. PMI® and PMBOK® are registered trademarks and PMP® is a registered certification mark of the Project Management Institute, Inc., registered in the United States and other nations.
- 3. Agenda Introduction11 Change Management & Project ManagementChange Management & Project Management22 Ch M t M d lCh M t M d l Successful Change: Stakeholders, Communicaton, Agility, Resistance, ConflictSuccessful Change: Stakeholders, Communicaton, Agility, Resistance, Conflict 33 44 Change Management ModelsChange Management Models Summary55
- 4. Change is not so easy… Source: https://www.torbenrick.eu/blog/wp-content/uploads/2015/12/Who-wants-change-Who-wants-to-change.jpg
- 5. Change Management and Project Management • Change management, is growing quite fast among the project management community, being the essential foundation towards an integrated process in t j t t th d l icontemporary project management methodologies. • Project teams are the specific stakeholders who are firstly influenced by changes, not l b th i iti t th b t l h t f ll th l donly because they initiate them, but also have to follow them as planned. • “Change” for project management can be seen as an integrated process which is related to controlling the project’s requirements in an effort to change them so as torelated to controlling the project s requirements in an effort to change them so as to eventually place activities in order and conform to customers requirements. • Not all changes have the same impacts for projects as some might be accepted and• Not all changes have the same impacts for projects as some might be accepted and some others might not.
- 6. Change Management and Project Management (cont.) • Change in structured project management frameworks is an establsihed process within the project management methodology. In this context, every project is subject to changes; one of the aims of structured project management methodologies is to adapt to changes and in effect minimise risk and finally ensure project success. • Project Management focuses on tasks or activities whereas, Change Management focuses on people impacted by change. • Both change management and project management evolved in a way that provided not only tools but also processes. Effectively, project management and change management may seem as separate entities; practically they are integrated.management may seem as separate entities; practically they are integrated.
- 7. PMI’s Change Management Definitions • Change management is a comprehensive, cyclic, and structured approach for transitioning individuals, groups, and organizations from a current state to a future stateg , g p , g with intended business benefits. • It helps organizations to integrate and align people, processes, structures, culture, and strategy. • Successful organizations do not evolve randomly, but through purposeful and dynamic strategies that anticipate, influence, and respond effectively to emergent and shifting external trends, patterns, and events. O i ti ill i d th i i di i li d h t tf li• Organizations will survive and thrive using a disciplined approach to portfolio, program, and project management and responsive, flexible, and effective change management inherent within that context. In order for a robust change process to occur, leaders need to challenge their assumptions and adjust business and leadership models from what has worked in the past to what has become a business imperative for organizational success in a complex environment. While many leaders may dislike change and resist it, the alternative to change may well be obsolescence or irrelevance.change and resist it, the alternative to change may well be obsolescence or irrelevance. Source: Managing Change in Organizations: A Practice Guide, PMI®, 2013
- 8. Change Management Definitions Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. A somewhat ambiguous term, change management has at least three different aspects including: adapting to changechange management has at least three 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 approved. Source: http://www pmhut com/pmo-and-project-management-dictionarySource: 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 significant changes are implemented in an orderly, controlled, and systematic fashion to effectg g p y, , y organizational change. One of the goals of change management is with regards to the human aspects of overcoming resistance to change in order for organisational members to buy into change and achieve the organization’s goal of an orderly and effective transformation. Source: http://www.tech-faq.com/change-management.html
- 9. The Change Curve (Kübler-Ross,1969) Denial Anger Problem Solving ormance Anger Bargaining Acceptance Shock ergy&Perfo Depression Shock Morale,Ene Time M Commonl organi ations don't change onl beca se of ne s stems processes or str ct res TheCommonly, organizations don't change only because of new systems, processes or structures. They change because the people within the organization adapt and change too. Source: Kübler-Ross, E. (1969) On Death and Dying, Routledge
- 10. The Change Curve (cont.) The Change Curve is a famous and powerful model used to understand the different stages of personal transition and organizational change.g p g g • People often get stuck in one stage, or oscillate between two (around blame) • Individuals’ length and depth regarding the change curve can vary significantly based on a plethora of factors. • The Change Curve is a function of time. Resistance or Acceptance is perceived differently by individuals who announce or receive the change(s). • The change curve works for both positive changes and unwelcome (negative) ones • The real challenge is to assist individuals or organizations through their “own” Change Curve, support them during the transition and in effect embrace the new change(s)change(s). • Leaders, Change Managers or other stakeholders need to communicate heavily and effectively about the anticipated changes.
- 11. The Project Change Curve Source: http://www.leanhrm.com/change.html
- 12. PMI’s Change Management Guidelines The general guidelines for an effective change management process in the change life cycle framework for portfolio, program, and project management are: • Formulating the change by identifying and clarifying the need for change, assessing readiness for change, and delineating the scope of change. Pl i th h b d fi i th h h d l i t k h ld t• Planning the change by defining the change approach and planning stakeholder engagement as well as transition and integration. • Implementing the change by preparing the organization for change mobilizing theImplementing the change by preparing the organization for change, mobilizing the stakeholders, and, delivering project outputs. • Managing the change transition by transitioning the outputs into business operations, measuring the adoption rate and the change outcomes and benefits, and adjusting the plan to address discrepancies. S t i i th h i b i th h i ti lt ti d• Sustaining the change on an ongoing basis through communication, consultation, and representation of the stakeholders; conducting sense making activities; and measuring benefits realization. Source: Managing Change in Organizations: A Practice Guide, PMI®, 2013
- 13. PMI’s Pulse of the Profession on Change • Change initiatives are time consuming and costly, significantly impacting an organization's drive toward success; nearly half of them fail. • Only 18% of organizations report being highly effective at organizational change management (Change Enablers) • Primary causes of organisational change failure: - Insufficient communications (59%) Lack of leadership (56%)- Lack of leadership (56%) • Factors for effective organizational change management: - Effective communication plans (68%)p ( ) - Effective execution of communication plans (64%) - Effective identification, measurement and communication of the intended benefits of the change (62%) Source: PMI’s Pulse of the Profession In-Depth Report: Enabling Organisational Change Through Strategic Initiatives, March 2014
- 14. Expectancy Theory The motivation force to do anything is a function of three things: • How strongly individuals believe their efforts will lead to good performance (expectancy) • How strongly individuals believe, good performance will lead to rewards (instrumentally) • How much individuals value a particular outcome (valency) Expectancy X Instrumentality X Valence Effort Performance Rewards It is major importance, in a change situation to understand the value (positive or Source: Huczinsky and Buchanan, Organizational Behaviour: An Introductory Text, Prentice Hall, 2007 j g ( negative) of the change from different stakeholders’ perspective.
- 15. Change Categories Classification Depending on a plethora of classifications, change can be categorised but not limited to as: • Individual • Organisational • Rules / Regulations • Continuous / Discontinuous • Structural / Restructure • Cost cutting • Process • Evolutionary • Revolutionary • Strategic • Cultural • Technical • System • Transformational • Risky / Controlled / Monitored • Technological • Planned / Unplanned • Remedial • Developmental • Proactive / Reactive
- 16. Significant Change Management Models • Lewin (1951) described change as a three-stage process: - Unfreezing C f i- Confusion - Refreezing • Bridges (1991) managing the transition model:• Bridges (1991) managing the transition model: - Ending - Neutral - New beginningNew beginning • Bullock and Baten’s (1985) planned change model: - Explorationp - Planning - Action - Integration
- 17. Lewin’s Three Step Model One of the cornerstone models for understanding organizational change was developed by Kurt Lewin, founder of social psychology back in the 1950s. Unfreeze Change RefreezeUnfreeze Change Refreeze • Define the current situation • Create a vision of the desired end A period of: - Confusion Challenge A completely different set up: • New mindsets andthe desired end- state • Identify the forces that will help drive and resist change - Challenge - Clarification • New mindsets and habits formed and established Source: Lewin, K. (1951). Field Theory in Social Science. New York: Harper and Row and resist change
- 18. Lewin’s Three Step Model - Unfreeze Inertia can be broken (changed) in the following three ways: Unfreeze y 11 Clearly define the current situation - The more collaborative this process can be the more effective it is. This can be justified by the fact that individuals will be more committed to a bigger picture they have defined. Moreover, the active involvement of more people may lead to a more rich and full picture. 22 rich and full picture. Create a vision of the desired end state - The richer and fuller, the more individuals contribute and more clear the vision 33 can be for the end state the merrier. Identify the forces which will help drive and resist the change - Increase driving forces; Decrease resisting ones. (Lewin’s Force Field Analysis is an indicative tool that my be used for this process. Source: Lewin, K. (1951). Field Theory in Social Science. New York: Harper and Row
- 19. Lewin’s Three Step Model – Change & Refreeze Leading and Supporting People through ChangeChange - A change plan is followed - Experimentation over solutions to problems is possible P i i f l d l ith h l i h id tif- Provision of role models with whom people in change can identify - Communicate frequently, - Empower Individuals Solidifying the Change New work practices become new work habits Refreeze - New work practices become new work habits - New ways of thinking become the conventional wisdom - Behaviours based on results are rewarded Lewin (1951) - Develop processes to anchor the changes into the culture - Provide clear communications, support and training
- 20. Managing the Transition, Bridges’ Model • Change can be regarded as the actual events, activities and steps than can be put into a diary or project plan. • Transition is related to the human, psychological process of letting go of one pattern and engaging with a new one. Endings Neutral Zone New Beginnings Source: Bridges, W (1991). Managing Transitions, Addison-Wesley, Reading, MA
- 21. Managing the Transition, Bridges’ Model (cont.) Endings – letting go of the old ways and the old identity people had • It is crucial to describe what will be different. What WILL NOT Change • Acknowledge all losses, large and small, avoid mistakes of the past • Identify the reasons why the current situation cannot continue • Communication is of major importance, obtain valuable input about issues / problems Neutral zone – help people be part and make the journey • This is the between time, often difficult and stressful especially for those affected most • Try to use images / metaphors to give meaning by example, support and look for opportunities • Set up temporary feedback and communications systems New beginnings – Give people a purpose, encourage commitment • Give people at purpose, a picture, a plan and an active role • Encourage individuals to be part of the journey, connect with other people and teams • Try to be consistent (behaviour, messages, decision making) • Celebrate key milestones (especially at the end)• Celebrate key milestones (especially at the end) Source: Bridges, W (1991). Managing Transitions, Addison-Wesley, Reading, MA
- 22. Bullock and Batten – Planned Change Phases 11 Exploration -Verification for the need for change (plan or not) Ensure required resources are available to proceed with the changes as 22 - Ensure required resources are available to proceed with the changes as necessary Planning 22 -Completion of an associated diagnosis; sequences change actions based on a plan (analysis of data) - Sign off the plan and ensure management buy-in (approve) A ti33 Action -Proceed as planned (start active mobilization) - Ensure regular feedback is received; take corrective actions upon required Replan if necessary- Replan if necessary 44 Integration - Integrate and align change within the organization (sustain change) Source: 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. g g g g ( g ) - Formalize and establish, processes, policies, training, rewards, etc
- 23. Change Risk Assessment Model (CRAM) CRAM (Change Risk Assessment Model) Risk Identification ( g ) is a novel model approach which can significantly contribute to the missing formality of business models especially in the change(s) risk assessment areathe change(s) risk assessment area. CRAM is composed of three interrelated processes which are continually recorded Risk Monitoring & Control Risk Assessment processes which are continually recorded and monitored. CRAM’s processes accomplish specific risk objectives (identification, assessment, monitoring & control) which are applied to projects or at a greater extend to business environments with a view to facilitate and control change. Source: Apostolopoulos, C., Halikias, G., Maroukian, K., Tsaramirsis, G. (2016). Facilitating Organisational Decision Making: A Change Risk Assessment Model Case Study, Journal of Modelling in Management; Emerald, Vol. 11, Iss. 2, pp.694-721.
- 24. CRAM’s Tree Hierarchy • CRAM hierarchical tree consists of one (1) core (root) node, eight (8) parent( ) ( ) , g ( ) p nodes, five (5) child nodes and its respective sixty-one (61) attributes. For example, ‘Communication’ parent node consists of seven (7) risk attributesconsists of seven (7) risk attributes (sub-factors). • Depending on the scope and• Depending on the scope and deliverables of a project, CRAM’s nodes and related risk attributes hierarchy per level, can change so as to accommodate more of fewer criteria. Source: Apostolopoulos, C., Halikias, G., Maroukian, K., Tsaramirsis, G. (2016). Facilitating Organisational Decision Making: A Change Risk Assessment Model Case Study, Journal of Modelling in Management; Emerald, Vol. 11, Iss. 2, pp.694-721.
- 25. CRAM’s Results Respondents’ results regarding the top four influential change risk factors based on CRAM ranking are as follows:ranking are as follows: 1. Leadership (27.99%) 2. Communication (24.28%) 3. Project Management Team (14 79%)Team (14.79%) 4. Culture (14.32%) Source: Apostolopoulos, C., Halikias, G., Maroukian, K., Tsaramirsis, G. (2016). Facilitating Organisational Decision Making: A Change Risk Assessment Model Case Study, Journal of Modelling in Management; Emerald, Vol. 11, Iss. 2, pp.694-721.
- 26. Change and Leadership Source: https://www.torbenrick.eu/blog/wp-content/uploads/2015/12/Who-wants-change-Who-wants-to-change.jpg
- 27. Change and Leadership (cont.) • Change leaders can help stakeholders by encouragement and focus on change • Their active involvement is dynamic; learning is based on the initial recognition that there is a problem, then exploring for a solution, then persisting in helpful directions. • Learning is the best route to low resistance of changes • For successful project management among the roles that the project manager has to take is the role of the leader. • The project manager is the ‘glue’ between the project and the team members, ensuring that stakeholders remain focused on the project goals. • In relation to change management, the project manager acting as a leader has to make th t t b d t d th h t tsure that team members understand the change management system.
- 28. Change and Stakeholders • Organizations’ stakeholders will have many different views and opinions about the vision and priorities for change. • Stakeholder engagement is of great importance to the whole process of effective changeStakeholder engagement is of great importance to the whole process of effective change Principle 1: Seek first to understand and then to be understood Principle 2: You can forget important stakeholders, but they won’t forget you Principle 3: Stakeholders’ identification as a practice is continuous Principle 4: Prioritizing and segmenting stakeholders is in a moment in time. Regularly reprioritize. Principle 5: Some stakeholders are best engaged by others Principle 6: Emotion trumps reason Principle 7: Demonstration trumps argument Source: Mayfield, P (2013) Practical People Engagement: Leading change through the power of relationship s, Elbereth, UK
- 29. Change(s) and Cost Poorly managing change can be costly! The sooner the better as Source: PMBOK® Fifth edition, p. 39 Poorly managing change can be costly! The sooner the better…as significant changes occur throughout the projects’ life cycle.
- 30. Change Requests Escalation • Change Type: Critical to Program • Interdependency: – Change impacts other projects’ timeline or budget Change impacts the overall design of the project LEVEL 4 Escalation to Sponsor (per case Program– Change impacts the overall design of the project • Approval of Change Requests: Change requires approval from Program Board, Sponsors. The Program manager is notified also. • Change Type: Critical to Program Interdependenc Change impacts other projects’ internal (per case Program Board) LEVEL 3• Interdependency: Change impacts other projects’ internal deliverables with no impact on overall timeline or budget • Approval of Change Requests: Change requires approval from the Program Manager. The Sponsor(s) have to be informed. Per case the Project board should be notified also. LEVEL 3 Escalation to Program Manager CHANGEECHANGEE • Change Type: Critical to Project • Interdependency: Change impacts other teams within the project, the project timeline or budget • Approval of Change Requests: Change requires approval from the Project Manager. The program manager has to be informed. LEVEL 2 Escalation to Project Manager ESCALATIONESCALATION j g p g g • Change Type: Critical to Project • Interdependency: Change is internal and does not impact any other t j t LEVEL 1 NN team or project • Approval of Change Requests: Change does not require approval from Sponsor (Project Manager can Approve) LEVEL 1 Project
- 31. Change Requests – Mandatory Approval Approved • The change has to be recorded (template). • The change request has to be relevant with the program / project. • The change request has to be reviewed and evaluated. • The change has to be approved. • The change has to be monitored and controlled. • When approved, the Change Register has to bepp , g g updated. • Actions Follow
- 32. Change and Communication • During communication, feedback is essential. Feedback is a “mechanism” which lets the sender know how and if the message has been received. Moreover, it provides valuable information whether is has been understood. • Try to consider what are your aims. What you want to achieve from each communication • Don't expect the same level of understanding (change messages require frequent repeat)• Don t expect the same level of understanding (change messages require frequent repeat) • Methods of communication can vary (presentations, seminars, e-mails, video messages, surveys etc.) • Give people the opportunity to talk and express themselves • Target audience to segment information and avoid overload • Expect barriers to effective communications (change is time consuming and risky process)• Expect barriers to effective communications (change is time consuming and risky process) • Don’t be afraid to ask and seek for help • Clear and simple change messages can save you out of a lot of troublep g g y • Use appropriate tone and style, try not to overreact (use a lot of examples, stories, etc)
- 33. Change and Agility Agile processes handle project and product change(s) in beneficial ways. Ch i t d i t b t it ti ti l d thl• Changes are incorporated into subsequent iterations routinely and smoothly. • One of the goals is to handle change(s) with a view on increased customer satisfaction. Stakeholders can pro ide feedback abo t req ired changes hich in t rn are• Stakeholders can provide feedback about required changes which in turn are incorporated into the actual project. • Agile Project mentality views change as a positive and constructive way to improve a product as the project progressesproduct as the project progresses. • Late changes in the project, are the most valuable ones. • The transformation from an not-Agile to an Agile environment may force a lot of pressure to the team.pressure to the team. • Change management is an inherent part of agile processes. • An Agile environment is highly adaptable to shifting business requirements; get prepared to rethink and revaluate the basic assumptions of management.p p p g
- 34. Change and Resistance • People don’t like to change their status quo suddenly • Identification and analysis of the change impacts is crucial. The earlier the better. One of the most common impacts is resistance. • In order to minimise stakeholders’ resistance, assess them properly. • Remember: Individuals’ reactions will be different within the change stages Be prepared for• Remember: Individuals reactions will be different within the change stages. Be prepared for surprises. No two individuals will react in the same way to change. • The history of change in the organization may be valuable and a way to tackle resistancey g g y y effectively. • Leave space for those affected by change to make choices, get involved etc. • Planning in secrecy (not informing people) will inevitably lead to resistance
- 35. Manage Conflict Proactively and Effectively • Different people, for example due to opposing preferences might misunderstand each other • Individuals may end up in severe conflicting situations not because of the content of issues but because of their different ways of seeing things. • An ideal “solution” is to look for the strengths that each person can contribute to a given situation • Value and respect different preferences - allow time for those which require it - avoid idea being lost in long run brainstorm sessionsavoid idea being lost in long run brainstorm sessions • During commutation process, ensure that the vision for change is clear - Be open and honest do not hide data and always say the truth- Be open and honest, do not hide data and always say the truth - Observe the differences , engage people early, be friendly and mind the cultural differences. - Be aware of assumptions!
- 36. Brainstorming – The Black Box On a piece of paper, anonymously please answer the following three questions: 1) What are the 3 things you like most in your business environment? 2) What are the 3 things you don’t like in your business environment? 3) If you had the authority, (e.g. CEO, Board Director) what are the 3 things you would change in your business environment?
- 37. Summary Project Management focuses on tasks or activities whereas, Change Management focuses on people impacted by change. 11 22 Change management is a systematic approach to dealing with change, both from the 22 33 perspective of an organization and on the individual level It is major importance, in a change situation to understand the value (positive or negative) of the change from different stakeholders’ perspective. It is major importance, in a change situation to understand the value (positive or negative) of the change from different stakeholders’ perspective. 44 Transition is related to the human, psychological process of letting go of one pattern and engaging with a new one. Organizations’ stakeholders will have many different views and opinions about the vision and priorities forOrganizations stakeholders will have many different views and opinions about the vision and priorities for change. Stakeholder engagement is of great importance to the whole process of effective change55 66 Individuals’ reactions will be different within the change stages. Be prepared for surprises. No two individuals will react in the same way to changeNo two individuals will react in the same way to change. 77 Be open and honest, prepare well, allow time for those needing it; celebrate success.Be open and honest, prepare well, allow time for those needing it; celebrate success.
- 38. Change Management: Enforcing the Transitional Integration towards Projects’ Success Th k Y ! Questions? Thank You! harris.apostolopoulos@gmail.com