Planning Your Organizational Change

Last week, I talked about the inevitability of change and why project and senior managers face challenges in successful change execution. (Don’t Take Organizational Change for Granted – Manage it) I know that you cannot overcome all problems associated with change. However, planning and communication minimize the discomfort.

The first planning step is deciding where you want the organization to be when the change is complete. This creates both the vision and evaluation criteria. On rare occasions, the resulting change vision rests solely with a leader, more often though the vision comes from discussions with people representing several parts of the organization. After the initial discussions, the successful change requires a project leader, a champion and a small group of committed individuals.

The core team tasked with implementing the change needs to spent time creating a “talking points presentation” about what, why, and how. Talking points are sound bites (Yes, just like the politicians use!). They are not paragraphs of text or pages of process – those come later. In creating the key points you want to communicate, address the reasons people resist change – fear, no perceived need, moving people out of their comfort zone – cover those concerns specifically in the talking points. Remember, just as in politics, change is local.

Consider implementing a rolling change rather than a company-wide alteration of process and tools simultaneously. Although the core actions of the change have the same goals for each part of the organization, the impact and implementation details will vary across departments. If you have the luxury of time and resources, consider beginning the change with test cases or single departments and learn how to improve the implementation process as you go along. I have a theory in change management – “Less is more.”  Don’t try to get everyone to make big changes all at once, rather go for small wins and changes in perception and behavior.

During the initial planning, create an implementation schedule and make sure that employees know that their feedback and suggestions will be integrated, as the change becomes inclusive of the entire company. Add training into the schedule. Include a time for evaluation at each increment or stage and factor in some time for reflection.

DO NOT FORGET TO SHARE WITH CUSTOMERS AND CLIENTS

Customers and clients do not like surprises, even positive ones. Share the talking points and plans with key customers and stakeholders. Tell them how they will experience the change – sell it. Ask for their input and feedback. Keep the communication personal. Schedule face-to-face meetings; include a presentation at a shareholder’s meeting or in the annual report. Have marketing or business development personnel, customer service staff or business analysts talk with key clients as the organization prepares for change.  I just worked with a small health care company and the CEO was excellent at incorporating the clients and stakeholders into the changes he was making internally.  The result for his company was increased respect and business.

Share successes and challenges with all stakeholders. Celebrate success!

Don’t Take Organizational Change for Granted – Manage it

Have you been in an organization that has been “treading water” for the last few years?  Now that we see the economy starting to pick up many organizations will need to change parts of the business or processes that they have neglected.  This will result in new projects or new programs and the need to manage the organizational change inherent in these efforts.

Here are a few absolute truths about organizational change:

  • Change is inevitable
  • Managed change is better than chaotic change
  • Change is about people
  • There is no magic bullet

Organizations choose to change for many reasons. However, the reasons usually boil down to money. More customers, better products, great efficiency, improving employee retention or empowerment are all laudable goals that in the final analysis are about securing organizational success – which in turn is about money. As a program manager, project leader or employee, if you want your organization to succeed, you must be willing to adapt and support organizational change.

Common Organizational Change Triggers
Organizational change is required when there is a significant shift in the economic environment in which a company exists such as a major recession, a new player in your market sandbox or the emergence of a disruptive technology.  New senior managers may choose to redirect departments, begin new projects or cancel existing ones. The culture evolves away from the status quo.

Not as dramatic as the above instances, another organizational change that needs effective management involves change in the organization’s technical infrastructure. With some frequency, companies seek to establish new ways to collect and organize project and program data, integrate new communication techniques and knowledge management strategies or create a Project Management Office to manage resources and quality across the organization.

Why People Resist Change
As I mentioned at the beginning, organizational change is about people. No matter how valid the reasons for change may be, only a small percentage of those affected will sign on and support the change just because management says to do so. According to Michael Hammer, author of Reengineering the Corporation, 60 to 75 percent of all restructuring fails because of the human dimension.

People resist chance. Why? Peter Barron Stark Companies offers 10 reasons people resist change. I have selected some key ones that resonate with my experience as a change agent:

  1. People are creatures of habit. Asking people to change moves them out of their comfort zone.
  2. Fear of failure
  3. No obvious need. If employees do not see the big picture, the need for change – which is inconvenient and requires extra effort – may not be believed. “My job is going okay now, why change?”
  4. Fear that the new way may not be better
  5. Fear of the unknown

Strategies for Successfully Managing Organizational Change
Organizational change management is a structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. Done well, it helps empower employees to accept and embrace changes in their current business environment. There are at least seven reasons why you should apply change management to ensure that the change resulting from the implementation of a new system is managed proactively and with care. As I said, managed changed beats chaotic change, every time!

  • Do your homework. Think about or brainstorm about the impact the change may have on your customers, internal business processes, and current systems for employee rewards, assignments and recognition as well as any required changes in structure, facilities to support services.
  • Clearly define the vision of change and the scope. What will change; how the change will positively affect the organization and what are the success criteria. What is the schedule of activities?
  • Build a strong change management team with diverse skills and excellent abilities to communicate, motivate and lead. Create a set of talking points and prep the change management team, so everyone is singing the same song.
  • (I am taking this one straight out of a Cognitive Technologies’ paper on EASE™ Change Management Toolkit)Understand the Impact on the OrganizationUnless your new system scope is quite small, it probably will impact multiple parts and/or levels of the organization. The broader the impact is, the higher the risk for failure. Most implementation failures are attributed to organizational issues that trigger “antibodies” that attack and kill the project. Organizational aspects you should consider as you determine the potential system impact include:  job roles and responsibilities, organizational structure, policies and procedures, HR, cultural acceptance to change (i.e., ongoing learning), and the success or failure of previous change initiatives.
  • Prepare for resistance by understanding why people resist change and counter with information and support.
  • Start small, but maintain momentum with information updates and gradual extension of the changes into the organization.
  • Communication early and often. Keep the change in the forefront of messages, presentations and conversations.

Here are a couple more resources that are useful:

The Biggest Mistakes in Managing Change
by Carol Kinsey Goman, Ph.D.

Business Balls: Change Management

Teaching the Elephant to Dance
by James A. Belasco, Ph.D.

PMBOK – The Case for Change Management

Early in my career, when I was an individual contributor on projects, I viewed meetings – including change control meetings – as an “interruption of” real work. Let me be clear, I WAS WRONG. As I moved into management of progressively larger projects, the need for a formalized way to deal with and document change requests became evident. Moreover, I became the one calling those meetings!

Is change after requirements are agreed upon inevitable?
Yes. Give me a user interface and I will find you several users who want changes made. No matter how conscientiously you gather user requirements during the early phases of a project; changes will be requested once users get their hands on the software during alpha or beta testing. I love that famous quote from Benjamin Franklin where he said, “In this world nothing can be said to be certain, except death and taxes.” I have a saying that I modified from Franklin’s – “There are only three things in life that are certain: death, taxes, and change.”

Partially this is human nature. A user envisioning a system that exists only on paper does not realize they will want to change font colors or have their spelling checked. New software has bugs that show up only during alpha and beta testing, when clever users finally get their hands on the software. Alternatively, the environment in which the software will operate changes, the customer adds data sources or new user groups.

As project manager, operations manager, or even VP, you must consider each change request in terms of its impact on cost, schedule, planned infrastructure, integration and input/output/processing modules. Now, just because a change is requested, does not mean you can or have to make the change, but you must consider it and document that consideration and the reasons the change request is rejected.

Components of an Effective Change Management Process
The PMBOK in sections 4.5 and 5.5 sees change management as part of an over-all integration of best practice processes that includes change requests, approval or rejection processes and management that includes deliverables organizational process assets, project documents and the project management plan. Change requests can include corrective action, preventive action and defect repairs.

A Change Control Board (CCB) reviews all requests and approves, delays or rejects them. The CCB should include key project staff, representatives of user groups and customers. It may also include software QA representatives, consultants or someone from the PMO.

All change requests should be identified by unique number and include information on the problem or desired change. A formal system to track change requests status, document costs and benefits, and provide feedback to stakeholders should be in place. The entire proceeding of the CCB meetings, the change requests and outcome actions become part of the project record.

Some Good News
Many changes you are asked to make improve the quality and functionality of your software. Useful enhancements that cannot readily be fit into schedules and budgets can form the basis for future contracts. The effort and documentation of the CCB protects your company if later problems arise with the customer’s satisfaction and payment.

Best Practice Tip
Not every project or organization is going to need the same type of change management or level or rigor.  The PMBOK outlines what functions and processes make up controlling scope and managing change – but not how to apply it to your specific needs.  If you are implementing a new project or establishing your organization’s change process and methodology, then get an experienced and trained PM or consultant to assist in applying this critical process area to your project or group.  A few well spent hours by a seasoned PM will pay off in the long run for your success in managing change.

Resources for More Information:
Project Smart; Using Change Management and Change Control Within a Project; Dave Litten; 2009
http://www.projectsmart.co.uk/using-change-management-and-change-control-within-a-project.html

 Software Quality Assurance Organization: Software Quality Assurance within the CMMi Framework
http://www.software-quality-assurance.org/cmmi-requirements-management.html#sp13

The Ideal PM Tool set
http://herdingcats.typepad.com/my_weblog/2009/12/the-ideal-pm-tool-set.html

PM Hut; Implementing Change Control
http://www.pmhut.com/project-management-process-phase-3-implementing-change-control

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