Project & Change Management - time for a rethink
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Introduction The presentation ( http://www.apm.org.uk/group/enabling-change-sig ) opened by describing the nature and size of the challenge that Organisational Change represents in our rapidly evolving operating environments. The fact that many varying business functions and roles are involved in transformational change and that this is often underestimated when ‘sizing’ a change. Unsuccessful change is a costly waste of resource with originating change drivers usually being left un-reconciled. Apart from the financial cost, change failure has a detrimental effect on those associated or impacted by the changes and leaves them less inclined to attempt to succeed with future change. Enabling successful outcomes It was posited that an improvement in the definition and specification of related organisational management disciplines would make the challenge of organisational change easier. Well defined boundaries being seen as necessary to provide a clear view of what was expected from those operating in each discipline; the degree and quality of relative specification helping to inform the nature and quality of collaboration. It was stressed that the size and composition of each discipline had to be an appropriate and proportionate response to the size and nature of the organisation. The relative positioning of the Organisational Change, Project/Programme & Portfolio, Business Management and Benefits Realisation Management disciplines was presented. To illustrate how the uncertainty regarding functional boundaries may have evolved, several formal definitions of Programme Management were described. In particular it was asserted that clearer delineation between the programme and business change management functions was required. Benefits Realisation The fact that all change effort should be focussed on the realisation of benefits, in line with the organisations development strategy, and not simply the successful ‘delivery’ of new enablers such as IT, structural, management, process or technology etc was described. The Benefits Realisation Management discipline was briefly introduced and the APMG Benefits Management Model was described as a good approach to establishing and maintaining such a capability. The fact that benefits are only actually realised once the required change ‘enablers’ are transitioned, integrated and exploited within the business functions themselves was used to emphasise the essential nature of the Project and Programme Management disciplines. The interdependent and essential relationship between Change and Benefits Management was described and how the aims of each were mutually beneficial in achieving the organisation’s change goals was emphasised. Finally, it was emphasised that an effective BRM implementation depended on a minimum level of project and programme management capability. The fact that it also represented a significant transformational and cultural change in its own right was often not c
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Project & Change Management - time for a rethink
- 1. Project & Change Management – time for a rethink Neil White APM – Enabling Change SIG Future Change Pillar Lead Sheffield Business School 1st July 2014
- 2. Related Management DisciplinesRelated Management Disciplines Benefits Realisation Management Benefits Realisation Management Current understandingCurrent understanding BRM & Change ManagementBRM & Change Management Agenda IntroductionIntroductionIntroductionIntroduction
- 3. Neil White Change Management Specialist 20+ yrs RAF (Engineering) Change Management for last 20yrs Business Improvement (SEI CMMI) - Assessor & Assessment Team Lead Transformation Change Management Benefits & Business Change MSc Change Management ‘an ardent believer that the ability to change is more important than the required changes themselves’ Association for Project Management Enabling Change SIG – Change Futures Pillar lead Benefits Management SIG Committee
- 4. The SIG’s mission is to ‘improve the change capability of organisations, teams and individuals’ Enabling Change SIG
- 5. SIG organised around four ‘Pillars’: Change Futures Change Capabilities & Methods Membership & Events Industry-focused Change Liaison Groups Enabling Change SIG – Structure Focused on Thought Leadership Community engagement
- 6. Related Management DisciplinesRelated Management Disciplines Benefits Realisation Management Benefits Realisation Management Current understandingCurrent understanding BRM & Change ManagementBRM & Change Management IntroductionIntroduction
- 7. The organisational change landscape Business Functions ‘Users’ Managers Customers Suppliers Misc external Stakeholders Challenges Threats Opportunities Shareholders Business Operations R&D BAU PESTLE Board • CEO • CFO • COO And others....
- 8. Change Challenge - Organisations
- 9. Financial Management Factor £+ t £- Change Benefits Waste!
- 10. We know much about what can and does go wrong – there are few surprises left! The way it is If the statistics regarding change failure are correct something has to change...... Despite the strong growth in the Change Management industry the failure rates appear to remain persistently high
- 11. Related Management DisciplinesRelated Management Disciplines Benefits Realisation Management Benefits Realisation Management Current understandingCurrent understanding BRM & Change ManagementBRM & Change Management IntroductionIntroduction
- 12. Four key disciplines (capabilities) Organisational Change Management Business Change Management Benefits Realisation Management Project, Programme & Portfolio Management
- 13. A high degree of uncertainty exists around who is accountable and responsible for what with respect to organisational change Need for boundaries The appropriate management disciplines must be clearly identified and ‘bounded’ This provides a basis for organisational change capability development
- 14. Programme Management Definition [1] A group of interrelated projects and other activities managed in a coordinated way to realize benefits contributing towards the strategic objectives” ISO Standard on Programme Management
- 15. Programme Management Definition [2] A temporary, flexible organization, created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization’s strategic objectives. Managing Successful Programmes [2011]
- 16. Programme Management Definition [3] “The application of knowledge, skills, tools and techniques to a program to meet the programme requirements and to obtain benefits and control not obtained by managing projects independently” PMI Lexicon of Project Management terms. V.2 (2012)
- 17. Programme Management Definition [4] “A group of related projects and change management activities that together achieve beneficial change for an organisation” Definition: APM BoK, 6th edition
- 18. APM’s Revised Competency Framework 26 competency areas in four domains Governance Planning and control Managing others Professionalism It does not incorporate Benefits Realisation Management Change Management It incorporates: Proj, Prog & Portfolio Management
- 19. Projects [APM, BoK6] Project, Programme, Portfolio Relationship Programmes [MSP, 2011] Business Change Managers responsible for benefits realisation Organisational Strategy Portfolio
- 20. Suggested positioning of disciplines This order of precedence provides assures that an organisation’s investment in change is aligned with its development strategy
- 21. Related Management DisciplinesRelated Management Disciplines Benefits Realisation ManagementBenefits Realisation Management Current understandingCurrent understanding BRM & Change ManagementBRM & Change Management IntroductionIntroduction
- 22. Confidence Method & process Accurate InformationInvolvement Just Cause Respect ? What people ‘need’ to know but often don’t ? Resources
- 23. Benefits Realisation Management enables an end-to-end context for change to be established & maintained Benefits Realisation Management Organisational Challenges & Vision The Benefits Realisation ‘factor’ Business Change Benefits
- 24. A Benefits Management Model 5 Practices 7 Principles
- 25. Benefits Management Practices Benefits Management – 5 Practices Identify & Quantify Value & Appraise Plan Realize ReviewBenefits Management Practices
- 26. Align benefits with strategy Start with the end in mind Utilize successful delivery methods Integrate benefits with performance management Manage Benefits from a portfolio perspective Apply effective governance Develop a value culture Benefits Management - 7 Principles
- 27. BRM Process Overview Assures that an organisation’s investment in change is wholly beneficial and aligned to its business development strategy Vision Strategic Objectives Functional Objectives Manage Benefits Changes
- 28. Related Management DisciplinesRelated Management Disciplines Benefits Realisation ManagementBenefits Realisation Management Current understandingCurrent understanding BRM & Change ManagementBRM & Change Management IntroductionIntroduction
- 29. Benefits Realisation and Stakeholders
- 30. The sting in the tail! Capability factor Culture factor
- 31. This suite of integrated management capabilities is most effective with BRM at its heart Summary There is a natural and symbiotic relationship between BRM and Change Management Need for boundaries between key organisational management disciplines Significant challenge to engender the required cultural changes and minimum levels of capability maturity The Reality & consequences of change & change failure
- 32. Project & Change Management – time for a rethink Neil White APM – Enabling Change SIG Future Change Pillar Lead Mob: 07890397046 neilwhite57@gmail.com Sheffield Business School 1st July 2014 Questions? uk.linkedin.com/in/changevista/
- 33. APM Online For Further information LinkedIn The Association for Project Management (Official group) Facebook Association for Project Management Twitter @APMProjectMgmnt Slideshare slideshare.net/assocpm Google+ Association for Project Management YouTube youtube.com/APMProjectMgmt
Notas del editor
- From the APM volunteer community
- What my presentation today will cover. Consequences of change failure. The role that Management disciplines play and the need for boundaries. Look at BRM and how this is best enabled when integrated with the other disciplines A look at the Symbiotic nature of BRM and Change Management.
- This new SIG is aimed at supporting the APM community Some programme managers see the Change Management task as their responsibility. Though not a view that I hold this position must be respected Could that be part of the c70% change failure problem
- Two key areas of interest: Change futures pillar – looking at the challenges of change management in the future Capabilities and methods pillar consolidates what we know about change today
- A quick reprise of the current situation regarding organisational change
- We should not be surprised that many organisations find it hard to change. Adding to the size of the challenge unclear picture of the purposes of the changes unclear picture of the role that people play An organisations ‘stakeholders’ must make sense of the ‘same’ changes Some are, or feel, so detached from the change process that they don’t even see themselves as stakeholders? All stakeholders deserve a rational, proven and confident approach to change
- This graph shows the aggregated effect (c16 views) of the impact on organisations of change They all depict a period of (chaos) reduced performance but after a period of instability show an improved position – however as we have heard today the statistics tell us that the new status quo is not necessarily an improved position But what this graph doesn’t reflect is the fact much change does not depict is the extent of benefit achieved from that change Change Management aim is to reduce the period of instability and ensure change goals are achieved
- All investment in change must be beneficial i.e. pet projects can no longer be tolerated and change failure is unacceptable Change failure is not only wasteful The change driver will not have gone away so the organisational position will be worse of than before What this means is that unless a change is going to succeed in realising its business benefit it must be stopped. Q. How does the organization know it needs stopping? Q. How do you evidence the fact? The Benefits Realisation Management discipline thatwe shall learn more of shortly enables these and many other questions to be answered!
- Ever-repeating change related problems Some of the known problems: Staff turnover Poor accountability & responsibility Succession planning Communication – what to say & when to say it Poor understanding of value & costs Aversion to risk Poor confidence No vision No or ambiguous objectives No or poor data to inform decisions Too much change! etc etc Need an approach that unites stakeholders and recognises their individual skill sets (disciplines) Time to rethink current disciplines Hold them to account for their performance Organisation should be self-sustaining & evolutionary and learn from their experiences – good and bad
- A look the contribution made by organisations management disciplines
- Introduce four key management disciplines Organizational Change Management – management of change environment and enterprise level change methods and support Project, Programme & Portfolio – Delivery of change enablers and business capabilities Business Change Management – must take and implement the changes BRM – provides assurance that changes are aligned with organizational strategy and are wholly beneficial Each discipline Strives to be best Collaborates for the greater good An overriding fact for each disciplines Change initiatives must focus less on the delivery of changes and more on realising benefits and value
- Some Project and Programme Managers believe that they are responsible for delivering business change – with little business knowledge End users not involved until implementation of changes but have responsibility for their success Business Managers not able to control the impact of change in their working environments Disciplines with clear boundaries reduce uncertainty Provide a basis for improvement based upon lessons learned
- Looking at four definitions of Programme Management Does not appear to support the fact that it is business functions that must realize benefits through change
- Programmes enable benefits but cannot deliver them Still not clear enough distinction for many
- Appears to position programmes as deliverer of benefits rather than an enabler
- Best definition to position programme management as a benefits enabler
- APM Competency framework 26 competency areas in four domains Used to be focussed upon Project Managers but now incorporates Project. Programme and Portfolio Management disciplines APM positions Change and Benefits Management as separate disciplines Ethics, compliance and professionalism, Team management, Conflict management, Leadership, Procurement, Contract management, Requirements management, Solutions development, Schedule management, Resource management, Budgeting and cost control, Risk, opportunity and issue management, Quality management, Consolidated planning, Transition management, Financial management, Resource capacity planning, Governance arrangements, Stakeholder and communications management, Frameworks and methodologies, Reviews, Change control, Independent assurance, Business case, Asset allocation, Capability Development
- Classical relationship between Project, Programmes and Portfolios Project and Programme management develop change enablers and business capabilities Responsibility for successful operations and benefits realisation rests with the business functions Even with this level of structure and implied rigour – project and programmers continue to fail! So alone this degree of specification cannot be the answer
- The order of preference shown here is key in assuring that the organisation’s objectives are of paramount importance and the delivery of change is rightly focused on the realization of benefit You will notice that BRM is positioned to steer both PPP and business change management
- Audience participation: Provide examples to these common questions.. Stakeholder Management satisfies these questions: WHY? The reason why change is necessary in terms that all stakeholders can relate to What? An understanding of what must change in order to achieve the agreed organisational objectives HOW? An understanding of how the required changes will be made achieved through open dialogue and people participation Where? An agreed schedule of activities to be achieved to develop, prepare for and implement the required changes When? An agreed schedule of activities to be achieved to develop, prepare for and implement the required changes Who? An overt declaration of who is accountable and responsible for what In particular my experience tells me that people to know: That the change cause is just Confident in their organisation’s approach Respected 4 what they know & change impact on them That there will be sufficient resources to manage the change That meaningful and accurate information To be involved in the change process Organisation uses a defined method and processes So approach is there can provide answers to questions such as these and provide a framework for change?
- What BRM brings to the table……….. BRM creates and maintains a path between an organisations vision and strategic objectives and the beneficial outcomes it must achieve A path that all stakeholders can relate to!!
- Identify & quantify – workshops benefits and non-benefits & quantify to increase accuracy Value & appraise – financial & non-financial benefits – cost benefit analysis – frameworks at org level Plan – validate, prioritise, pretransition planning, benefit measures. Leading and Lagging. Before during and after, stakeholder engagement, Accountability and and transparency of BRM. Mitigation of disbenefits Realize – benefits tracking and reporting – trend analysis. Review – review is a constant. Major stages reviews. Linked to project Gate process. Achieve lessons learned. Process improvement, forecasting improvement
- Identify & quantify – workshops benefits and non-benefits & quantify to increase accuracy Value & appraise – financial & non-financial benefits – cost benefit analysis – frameworks at org level Plan – validate, prioritise, pretransition planning, benefit measures. Leading and Lagging. Before during and after, stakeholder engagement, Accountability and and transparency of BRM. Mitigation of disbenefits Realize – benefits tracking and reporting – trend analysis. Review – review is a constant. Major stages reviews. Linked to project Gate process. Achieve lessons learned. Process improvement, forecasting improvement
- Align benefits with strategy – ensure benefits are realised evidence meeting of strategic objectives Start with the end in mind – ensure that projects and programmes are focussed on the delivery of benefits Utilize successful delivery methods – prince2/MSP/ unsuccessful delivery = no or limited benefits Integrate benefits with performance management – for efficiency and limit overhead and use of real operational data Manage Benefits from a portfolio perspective – benefits management is more effective if used on whole portfolio of change projects. Limits double counting. Lessons learned and communicated. Consistency. Apply effective governance – evidence that we are doing the right thing the right way. Clarity. Aligned. Even handed Develop a value culture – people understand the importance of business value and benefit and not simply change for changes sake i.e. New process or IT system.
- Another process view of the end-to-end thread that BRM provides between an organisations vision and strategic objectives through to the realisation of the required benefits BRM enables: An unambiguous view of an organisation’s challenges and their response to them Effective resource management Changes are aimed at beneficial change Informed decision making Investment in change to be tailored to meet business need Prioritization of benefits and change initiatives Effective stakeholder engagement Meaningful accountable and ownership of change outcomes It is never to too late to apply benefits management thinking to a change initiative – but the earlier and more effectively it is done the better
- BRM provides the perfect opportunity to ‘implicate’ its people in the change process. BRM can bring people ‘up the change lifecycle’ and provide them with a meaningful context and role in the change process Early involvement results in better commitment and informed solutions Exploits untapped Innovation and creativity Although sponsored from ‘above’ change initiatives should fully engage with stakeholders across the whole lifecycle Vision & Objectives, applicable and understood by all Identify Benefits & changes – achieved through participative workshops Developing changes – heavy involvement by users Optimising the initiatives – organisation interest in correct priorities are set Managing the initiatives – focus on the enablement of benefits – not the changes Manage Performance – ensure benefits are realised
- Culture BRM requires a major culture shift in behaviour People must be willing and able to challenge and be challenged To enable this free flow of information People must be willing to accept accountability, ownership, responsibility Capability Benefits Management can only be truly effectively when an organisation has a minimum project/programme and portfolio management capability
- Notes on Symbiosis from Wikipaedia This is an incomplete list of notable mutualistic symbiotic relationships, in which different species have a cooperative or mutually dependent relationship. This relationship can be endosymbiotic, whereby an organism resides in another's body or cells. There are three types of symbiosis: mutualism, commensalism, and parasitism. Mutalism is symbiosis in which both organisms benefit. Commensalism is symbiosis in which one organism benefits and the other is not harmed or helped. Parasitism is symbiosis in which one organism benefits and the other is harmed. Some of these relationships are so close that we speak of the composite of two species as one unit; for example, we speak of the composite of algae and fungi as lichens. This is analogous to our speaking of a modulator and a demodulator as a modem.