Change Management and the Project Lifecycle

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1 Change Management and the Project Lifecycle - An illustrative look at change management practices that can aid sustainable project success Presenter: Chris Nguyen Page 1

2 What Lens Do You Wear? Change Mgt Project Mgt Page 2

3 Presentation Lifecycle Start-up Execution Benefits Realisation Close Objective: To illustrate and inspire discussion around change management and its relationship with Project Management Introduction Scene Setting Change Mgt and Project Mgt Types of change activities to consider Case Examples Questions and Answers On time Key Learnings Stage Gate Milestones Requisite laughter achieved No one asleep Some inspired questions Questions inspire more questions Page 3

4 Why apply change management practices to a Project? With Change Management Business Performance & Benefits Realisation Go- Live With no Change Management Performance drop Time Increased implementation success rates and benefits realisation Reduced time to achieve business goals Increased employee performance during transformational change Improve sustainability of change initiatives Less resistance to change and greater ownership Page 4

5 Where might Change Management activities overlap with Project Management Readiness building among user groups Readiness Assessment Project Planning HR process re-design Human Impact assessment Ownership and involvement building of staff Organisational Design Communication execution Training Stakeholder engagement Benefits Realisation Project Controls Cost management Quality and standards Page 5

6 What other activities a Change Manager could be expected do? Facilitate steering committees and advisory groups for greater buy-in or alignment Change management skills building Team building and project team effectiveness Large group interventions Organisational design Impact assessments, Tracking/measuring commitment to the change, Developing change strategies Page 6

7 CASE examples Typical projects requiring significant change Large IT transformation Significant business re-design Mergers and Acquisitions Sourcing projects Culture change initiatives Page 7

8 CASE examples: Sourcing Project Change Management activities executed Business Scenario Global IT function Sourcing Project 10,000 affected staff Location across the globe in Asia, Europe and America 1. Large group facilitation 2. Leadership team facilitation 3. Change management skills program 4. Communication design 5. Advisory group facilitation 6. Retention program Change Management key objectives 1. Build leadership alignment to business case 2. Build leadership capability to lead change 3. Communicate case for change 4. Build organisational readiness 5. Support business continuity 7. Programme team effectiveness building 8. Involvement program Benefits to project 1. Aligned and effective sponsorship and leadership 2. Focus on managing people through the change process 3. Clear understanding of project status all the way 4. Key business continuity targets maintained 5. Effective Programme team and structure Page 8

9 CASE examples: Organisational Restructure Business Scenario Regionalisation of a Exploration and Production business operating in 8 countries across Asia-Pac Over 8,000 affected staff Change Management key objectives 1. Build leadership alignment to business case 2. Build leadership team 3. Build affiliation across the region 4. Launch a focus of business process improvement 5. Organisational design requirements Change Management activities executed 1. Large group facilitation 2. Leadership team facilitation 3. Communication design 4. Resourcing programme Benefits to project 1. Aligned and effective sponsorship and leadership 2. Focus on managing people through the change process 3. HR process management Page 9

10 Change Scope & Complexity A quick evaluation Least Challenging Most Challenging Single function change Well understood change Can be executed by line managers without specialist support Little political resistance Few if any perceived change losers Change mainly consistent with culture 1. What is the ORGANISATIONAL SCOPE of the change? Cross-functional change Multi-location change Change across large complex organisations Multi-country change 2.How INNOVATIVE AND UNCERTAIN is the change? Largely predetermined change but with some uncertainty and/or requirement for fresh thinking Requires specialist support/ training Complex, uncertain change Change solutions are not within the organisation s experience or knowledge 3. What is the anticipated RESISTANCE to the change? Some political resistance Significant perceived change losers High political resistance Large number of influential perceived change losers 4. How CULTURAL CHALLENGING is the change? Change challenges culture to some extent Change may be blocked by cultural forces Change requires a radically different culture to succeed The change challenges peoples willingness to change greatly 5. What level of MANAGEMENT CHANGE SKILL is required? Managers have succeeded with difficult change programmes Managers have succeeded with simple change but have limited success with difficult change Managers have had little change experience in large and complex organisational changes Page 10

11 Key Lessons Learnt 1. Do not underestimate the time it takes to build and maintain consensus and commitment. 2. New change offers opportunity for re-engineering current processes or culture change 3. Recognise the need to re-build consensus and commitment if new key stakeholders come on board during the change process 4. Recognise that people who have already bought in to the case for change may opt-out when they realise its impact on their currently existing working practices Page 11

12 Key Lessons Learnt 5. Ensure that revised roles are clearly defined and understood 6. Self-discovery helps considerably in acceptance of any new system or process 7. Ensure that the change works as advertised, mistakes associated with a change can create a major loss of confidence 8. Develop and communicate a clear message about where all effort is leading and why. Keep reinforcing that message 9. Demonstrate some tangible results as soon as possible Page 12

13 Further Questions or Discussion? Chris Nguyen Senior Manager Performance Improvement Page 13

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