Change Management in PM


Published on

Published in: Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Change Management in PM

  1. 1. Stakeholders in Change Management June 25, 2013 6/25/2013 Euro MPM Summer Semester 2013 Lecture: Change Management Submitted to: Prof. Dr. Andre Dechange Prepared by: Elis Niyazieva
  2. 2. Stakeholders in Change Management June 25, 2013 Table of Contents 1.Stakeholder analysis according to its relevance to Change management……….…...….1 1.1 Relevance of stakeholders for successful change management……………….…......3 2. What is missing in Chapter 13 “Stakeholders”according to Kotters 8 Step model…….3 th 3. How could change management aspects be integrated into the PMBOK 5 edition…...7 4.Conclusion………………………………………………………………………………………...…12 Page 1 References…..……………………………………………………………………………………….….13
  3. 3. Stakeholders in Change Management June 25, 2013 “Change is hard because people overestimate the value of what they have and underestimate the value of what they may gain by giving that up.” — James Belasco and Ralph Stayer Flight of the Buffalo (1994) 1. Stakeholder analysis according to its relevance to Change management and to Kotter’s 8- Step Model The PMBOK states that it is crucial to involve stakeholders from the very start, because it improves the probability of shared ownership, acceptance and satisfaction which, in turn, enhances the success of the project. This greatly overlaps with Kotter’s 8-step change management approach, which identifies the need for establishing a sense of urgency. This is done by examining the competitive and market forces present in the organization industry. Stakeholders can be defined as people who have not necessarily all the interest in the change, but they take part in it, whether they are the managers, targets of the change, or other interested parties. A lack of stakeholder management is one of the key reasons why change projects fail, so identifying and understanding them by ensuring their participation in all plans and activities is a critical path. In my opinion, each new project itself brings a need of at least a small change in the psychological point of view of a stakeholder. Therefore, stakeholder processes can be very useful, whereas they provide the most important information for the change management process in an organization. Stakeholders are taking part in the success of a change project by:  Providing important information concerning the resources, services, some material needs, practical considerations for a project and realistic objectives  Preventing problems during implementation and identifying points of opposition  Showing a sense of ownership and responsibility in the project and involvement during the implementation step  Ensuring the goal of a project remains on the people who are planned to be supported/served 2 Finding hidden items that may be not so easy do realize in the planning stage Page 
  4. 4. Stakeholders in Change Management June 25, 2013 For the same reasons and some other stakeholder management is connected to change management and the ability to realise the benefits the change can deliver. The benefits cannot be realised until the key stakeholders accept and embrace the changes. th From the very first pages of PMBOK Guide 5 edition,in the framework chapter, it is very easy noticeable that there is an indirect approach to change management, described in short. This matrix shows us the reaction (engagement) of the stakeholders according to the PMBOK, but further in the paper work some extended examples are shown as a tool for better understanding stakeholders interest in change and their present vision acceptance, as well as short-term goal orientation. 1.1 Relevance of stakeholders for successful change management Why Stakeholder management is important for a good Change management? From one point of view change management means already stakeholder management. Because we can define change management as a process used by stakeholders who are connected with the process, structural and other organisational changes or with any capital investment in the organization itself. Therefore, in a change management initiative, stakeholder management should be an integrated process coordinated at the change manager’s level. All of the organisational elements working on the change need to coordinate their stakeholder management efforts to support the overall outcome. Confusing and mixed messages don’t help anyone.* Stakeholders should be engaged as early as possible for the changes, because the later change engagement begins, the more time costing the process is. Page 3 *
  5. 5. Stakeholders in Change Management June 25, 2013 2. What is missing in Chapter 13 “Stakeholders ”according to Kotters 8 Step model Every single person in an organization can be seen as a salesperson, selling his or her proposals, ideas, and recommendations. Even a CEO, or owner of one company has to achieve buy-in of key strategies and techniques from different experts. Change Management in short can be considered “selling” the new ideas to the stakeholders. The implementation of a useful improvement and success in an organization can be answered through 3 questions: 1) What to change? 2) To what to change to? 3) How to make the change happen? Even if a solution with a real improvement has been identified by appropriately answering the first two of the questions, the answer of the third question can often make or break the all the previous effort. Because finding answers the questions is not just an issue of technical solutions and project management. It involves dealing with the "people factor" and mainly their resistance to accept changes and to arise will of change. The champion of a solution can face a dilemma. Does s/he spend limited time and attention on refining the details of the solution or on the politics and buy-in necessary for its success? Sometimes the belief that a "perfect" solution will minimize stakeholder resistance can make organisations blunt to “see” where the unexpected and unreasonable resistance for change. Kotter’s eight step change model is dealing with stakeholders on every step.Resistance to change can be understood in terms of a series of characteristics which show up consistently and regularly and therefore we can use Kotter’s 8 step approach as a guideline to understand better how and exactly when change can be applied, which are the steps to apply the change,etc. From the PMBOK we know that some stakeholders have a limited ability to influence on a project. There are also stakeholders who have significant influence on the project. Exactly, those stakeholders with a big influence on the project can be used in step 2 “Establishing a sense of urgency” of Kotters 8 step model. The stakeholder analysis may give information about the impact and action on the future Page 4 change. For this reason in identifying stakeholders it is good to have included also:
  6. 6. Stakeholders in Change Management June 25, 2013 A Change Impact Analysis: This analysis would evaluate how changes affect stakeholder groups and their reaction. An example of this change impact analysis can be done for with a table like this: Example of Change impact analysis table Description of the stakeholder that will be impacted by change Stakeholder #1 How this stakeholder will be impacted? -new processes, roles, structures Impact of change What new skills & behaviours will be required of this New skills & behaviour required stakeholder or stakeholder groups What are the barriers,issues or possible the stakeholder Barriers, issues or resistance : Possible change may have? management Examples of ways to deal with barriers,issues and solutions can be: resistance But in different situations the analysis should answer questions like: What would make the stakeholders more supportive of the change?  Providing them with more Information or giving them more understanding?  Changes in planned actions?  Direction from more senior managers?  Involvement and ownership?  Proof of the success of the change? After trying to engage stakeholders, finding out the ones resisting change would be a logical step. As change management techniques mention some of the main reasons for Resistance to change can be:  The lack of awareness,  The lack of sponsorship,  The lack of job security,  The lack of information,  The ineffective execution,  The lack of trust,  The lack of having the “Big” picture in the mind. Page tools for a better relationship and some extra trust building tools. 5 Therefore in the stakeholder engagement process should be included special techniques &
  7. 7. Stakeholders in Change Management June 25, 2013 It is important to include also methods to reduce resistance. A good example of Kotters approach would be to include special education, participation, communication and support. On the picture (13.3 Manage Stakeholder Engagement) we can see that some tools are already proposed to build better relationships in between the organisation, however they are mentioned very shortly. In my opinion, it would be a big plus to give examples of some famous techniques from worldwide famous companies or just some tools used from consulting companies. The interpersonal skills mentioned in the PMBOK are: building trust, resolving conflicts, active listening and overcoming resistance to change.* In the Output can be included also a plan categorizing which tools to use to engage stakeholders with different levels of resistance, power etc. * ©2013 PMI - PMBOK 5th edition p. 407 Another good tool we can include is: Risk Assessment: Generates key questions stakeholder groups may need to answer for the demands, control, role, relationships, support and their general view on the change. This tool can give us information for the way to implement the change, what risk of the change outcome can occur and some useful information for the impact of change according to the stakeholders opinion. Page Resource:* 6 *
  8. 8. Stakeholders in Change Management June 25, 2013 A very helpful tool to engage stakeholders and motivate them is the Performance Support Plan. Performance Support (Training) Plan: • Identifies training scope and materials. • Designs a training curriculum that bridges process, tool, and role changes. • Allows individuals to learn in a variety ways beyond the traditional training formats. The main goal of every Performance Management strategy would be to motivate individuals within their organization and as a result to improve and optimise the overall success of it. A very solid Performance Management strategy optimises different objectives in the organization, in which change management objectives are also included. Organizations may use the help of other expert companies in Performance management. A good example of such a company would be: * rs=adwords th 3. How could Change management aspects of Kotter be integrated in PMBOK 5 edition? Change management has an important role in every organisation, because the task of managing change is not easy at all. Change management refers to making it in a very systematic and planned way. The change in the organization or a project can be initiated from inside or from outside of it. An example for that is when we have a product which became popular after integrating a change in design. But this is an external factor that rises organizations for a change. The change process could be also seen or used as a problem solving situation. The change that occurs can be a result of a problem that took place in the company. A very good implementation for the Stakeholder chapter can be integrating a negotiation framework as well as problem-solving part in the Stakeholder communication Page 7 matrix.
  9. 9. Stakeholders in Change Management June 25, 2013 The framework should:  Incorporate the shared vision and ownership  Provide materials that speak to both the rational and emotional side of the stakeholders  Create activities at the individual, team, and organizational level  Identifies existing processes that are being retired so employees can redirect their focus toward new initiatives Influence of Stakeholders Unknown Little/No Some Significant Influence Influence Influence Importance of Stakeholder Significant Importance Some C A D B Importance Little/No Importance Unknown Group A: The stakeholders have High Importance and High Influence. This shows dominant relevance to the change project. Here support for project success must be won through effective engagement and consultation using multifaceted involvement in planning and governance. Group B: These stakeholders have High importance and low influence. The group represents entities vulnerable to marginalisation. There’s a need for action for taking care of their interests. The solution would be again effective engagement and consultation. Group C: These stakeholders state a High Influence and low importance. This represents a group which can wield power and drift decision to a point, but are still of low importance in the change project. There’s need for higher analysis and cooperative management. Group D: Shows stakeholders with a low Influence and low importance. Which means a low analysis and minor concern. But to implement Change in general and from parts the Kotter’s 8-step model approach we need to introduce similar tables to our organization and to identify which stakeholders have a Page would have the highest resistance etc. 8 big impact of the change, which stakeholders could have a big reaction on the change, which
  10. 10. Stakeholders in Change Management June 25, 2013 Example matrix could be: Stakeholder Matrix showing the Impact/Reaction to change Impact of Change on Stakeholders Unknown Little/No Impact Some Impact Significant Impact Stakeholder Reaction to change Significant reaction Some C A D B reaction Little/No reaction Unknown Group A: The stakeholders have High Impact and High Reaction. This shows dominant relevance to the change project. Here support for project success must be won through effective engagement and consultation using multifaceted involvement in planning and governance. Group B: These stakeholders High Impact and low Reaction. The group represents stakeholders who respond to change in a positive way and are aligned with the change. There’s a need for action for taking care of their interests. The solution would be again effective engagement and consultation. Group C: These stakeholders state a high Reaction and low impact. This represents a group which can command a reaction and drift decision to a point, but are still of low impact of the change project. There’s need for higher analysis and cooperative management tools. Group D: Shows stakeholders with a low reaction and low impact. Which means there should be considered some extra way of engaging this stakeholders for further changes, although their impact is considered to be low. In my opinion, it is good to categorize the tools needed according to all of this matrixes, especially if we integrate Kotter’s 8-step model for a better understanding of the level of change Page 9 integrated and the level of change vision communicated.
  11. 11. Stakeholders in Change Management June 25, 2013 Stakeholder Matrix showing the Interest / Resistance to change Another important analysis we could imply in Stakeholder register could be also the Interest versus Resistance matrix. This matrix could show us the interest of the stakeholders in the upcoming change and it would help to see up to which level a resistance may occur against this change. Interest of Stakeholders Unknown Little/No Some Interest Interest Significant Interest Resistant of Stakeholder Significant resistance Some C A D B Resistance Little/No resistance Unknown The importance of constant evaluation is emphasised in the field of change management. For this reason, Kotter’s principles of change, evaluating the data may reveal success, lead to short-term wins and motivate all stakeholders. In this concern, it should be included also in Controlling Stakeholder Engagement. Controlling is defined in the field of change management as procedures that systematically collect information for change activities that adjust the organisational processes, so the last 2 steps of Kotter’s 8-Step model can be integrated into Controlling Stakeholder Engagement to take some notes of previous changes and to always update documents concerning stakeholder engagement Page 10 and check if the tools are applied properly, as well as controlling the constant change application.
  12. 12. Stakeholders in Change Management June 25, 2013 On figure 13-1. Project Stakeholder Management Overview we can see the Processes mentioned in the PMBOK for stakeholder management and the 8-step process of Dr. John Kotter divided Page 11 according to the process groups of the knowledge area.
  13. 13. Stakeholders in Change Management June 25, 2013 4. Conclusion From an analysis of the PMBOK in general and specifically the chapter “Stakeholder management” it can be seen that Kotter’s 8-Step change model and other change management models and techniques, have significant overlaps or at least a lot in common. Thus there would be a great benefit in integrating the two disciplines. The managers who integrate change must identify and understand who the key stakeholders are in order to make a sufficient analysis as stakeholders have an emerging influence on the project and therefore change that occur. However, it is extremely important to be aware of the level of support each of stakeholders has for the change effort as and the degree to which each can affect it. For this reason, implementing change management approach as Kotter’s 8-step Model would be a great asset.The other tools and techniques are welcoming, and together they would provide a good performance initiative to bring forward the operational improvement of an organization during a change, whereas they would help to improve the engagement of stakeholders in general by leading to new ideas for tools and techniques. No matter the success of an organization change is inevitable. Exactly because of that, change management is crucial for every organisation as the right process to provide organizations with benefits to become leaders in the industry, to gain advancement or general progress compared to their present or future competitors. “The secret of change is to focus all of your energy, not on fighting the old, but on building the new.” Page 12 -Socrates
  14. 14. Stakeholders in Change Management June 25, 2013 References: 1) 2013 PMBOK ® 5 th Guide and Standards 2) Kotter's 8-Step Change Model- Implementing Change Powerfully and Successfully 3) 4) Stakeholders in Change older_change.htm 5) 6) Stakeholders and Change Management Page 13 management/