Have you ever delivered your project (i.e., an application) on time, on budget and to the requirements agreed to in writing only to learn that, two years later, the project deliverable is shelved because no one used it? Are you annoyed by stakeholders trying to change your project while you are in delivery mode? Projects bring about change in organizations - in structure, processes, tools and, inevitably, behavior. Our project deliverables must enable business outcomes, and business outcomes can only be realized with organizational change. This presentation will examine basic organizational change management theory and provide project managers with a basic toolkit that will enable participants to move from delivering deliverables to changing and transforming organizations.

1. Elisabeth Bucci, Sr Consultant, Projissima
Session# 449 Delivering is not enough: Becoming
Skilled in Organizational Change and Transformation
October 7, 2018| 4:45 – 6:00 pm

2. #PMICON18
Disclaimer
• The views and opinions expressed in the following PowerPoint slides are those
of the individual presenter.
• These PowerPoint slides are protected under the copyright laws of the United
States of America and other countries. Used by permission. All rights
reserved. Project Management Institute and PMI are registered trademarks.
All other trademarks are the property of their respective owners.
• The PowerPoint slides are for registered attendees of PMI Global Conference.
2

3. #PMICON18
Learning Objectives
At the conclusion of this session, participants will be able to:
(1) explain the components of an organizational change management strategy
and how to embed it in the project definition and execution;
(2) discuss how to manage the pitfalls of implementing organizational change
3

4. #PMICON18
Before we start
• A lot of info, sampler of 5-day certification training
• Lightning speed through theory
• Blue boxes are takeaways / pitfalls to avoid
• Emphasis will be on applying takeaways to the case study
4

5. #PMICON18
Agenda
• Once Upon a Time
• What is Organizational Change Management and why does it matter?
• The Human Dynamics of Change
• Stakeholder Management & Engagement
• Communication & Engagement
5

6. #PMICON18
Agenda (cont)
• The Change Wheel
• Is Delivering enough?
• Start now
6

7. #PMICON18 7
Once Upon a Time

8. #PMICON18
…there was this Project…
• Company: engineering consulting firm (partnership model)
• Training Manager (TM) approached IT, how about a system to track training
(rather than Excel)?
• Business Analyst worked with TM to define requirements, in Excel, prioritized
8

9. #PMICON18
…cont…
• HR: hey, performance management too, instead of each manager using Excel?
• Selection Committee: Training Manager + 2 key Engineering Managers /
Partners with great amount of influence
• Supplier selection process, demo by 5 suppliers
9

10. #PMICON18
…cont…
• Demos scored using evaluation sheet (based on requirements)
• Purchase Order issued
• Selection team disbanded
• Schedule with Go-Live
• HR not in Go-Live, “maybe later”
10

11. #PMICON18
…cont…
• Go-Live on-schedule, on-budget
• “Pilot” two months later, ran by TM
• Two years later license not renewed
• Back to Excel and PDFs sent by email
• PM & BA still traumatized
11

12. #PMICON18
…and this Project Manager…
• During the project, something was wrong…but what?
• Did the only thing I knew how to do: deliver. (Angrily.)
• This presentation is the result of a five-year quest towards understanding
• Journey included 30 days of practitioner certification training: PRINCE2®,
Managing Successful Programs®, Management of Portfolios®, Managing
Benefits™, Business Relationship Management® and Change Management™
12

13. #PMICON18
Introducing…
13
We’ll go back in time and
help our PM get it right
this time!
DeLorean DMC-12!

14. #PMICON18 14
What is Organizational
Change Management?

15. #PMICON18 15
AS IS TO BE
Business
Outcome
Benefits
levers
tipping point
GAP
Change
Wheel
PROJECT ??
©Elisabeth Bucci
Organization

16. #PMICON18
The Change Wheel
• Projects deliver change, move from As-Is to To-Be
• Challenge is: how do we climb the mountain?
– Need to change humans!
• Organizational Change Management = making the Change Wheel and moving
it over the mountain
16

17. #PMICON18 17
Why Organizational Change
Management really matters

18. #PMICON18
Need to manage interplay of three key elements
Change
Impacts
Change
Risks
Business
Continuity
18
1. Organizational
2. Stakeholder
Disruption caused
by change
initiative
3 types, next
slide
Failure to manage
these elements =
we don’t get over
the mountain
Source: See References

19. #PMICON18
Change Risks
19
Strategic
Program/
Project
Business
Benefits
Risks
*Does your risk
management plan
include all of these
risks? Why not?
Benefits not
realized*
Solution doesn’t
meet needs
Disrupt
operations*
Source: See References

20. #PMICON18
Why Organizational Change Management really matters
• Not about holding hands singing Kumbaya!
• Is about not wasting money
• Organizational Change Management = risk mitigation strategy
• This is how to justify a Change Management budget
• This is why we must manage all risks (strategic, business), not just
project/program risks
20
Why spend all of this money if we get nothing for it?

21. #PMICON18 21
The Human Dynamics of Change

22. #PMICON18 22
AS IS TO BE
Business
Outcome
Benefits
levers
tipping point
GAP
Change
Wheel
PROJECT ??
©Elisabeth Bucci
Organization

23. #PMICON18 23
AS IS TO BE
tipping point
GAP
©Elisabeth Bucci
Organization
To get over the
mountain we need
to deal with the
human dynamics of
change

24. #PMICON18
What is Organizational Change Management?
24
art and science of managing the human
dynamics of change
Make the Change Wheel and move it over the
mountain!

25. #PMICON18
Two dimensions creating complexity
25
+
individual
individuals
grouped in
organizations
=
complexity

26. #PMICON18 26
Change and the individual

27. #PMICON18
Bridges Transition Model
27
Change Transition≠
actual events in
a project
schedule
human, psychological
process of letting go of one
pattern to engage with
another
Source: See References

28. #PMICON18
Bridges Transition Model
28
time
productivity
ENDINGS NEUTRAL ZONE NEW BEGINNINGS
Letting go
mourning
in-between
journey
stressful
creative
excited
energized
committed
Change
starts
here!
Source: See References

29. #PMICON18
Bridges Transition Model: take-aways
• Each journey is different (even for the same individual)
• Each individual is different (within the same change initiative)
29
Individual change can only begin after the process of
transition is complete

30. #PMICON18
Change and Learning
30
Planned change → Managed LearningX
process of acquiring
knowledge
→ enduring change in
behaviour
Source: See References

31. #PMICON18
Learning Cycle (Kolb)
31
Concrete Experience
Reflective
Observation
Abstract
Conceptualization
Practical
Experimentation
Something happens
You think
about it
You identify a
pattern
You test your theory
Source: See References

32. #PMICON18
Learning Styles (Honey Mumford)
32
Concrete Experience
Reflective
Observation
Abstract
Conceptualization
Practical
Experimentation
Activist
Reflector
Theorist
Pragmatist
Source: See References

33. #PMICON18
Learning Cycle & Styles
• Each individual has a preferred learning style
• Learning doesn’t happen until each individual passes through the
entire learning cycle
33
Training activities must be designed for all learning styles

34. #PMICON18
Learning Dip
34
time
performance
Unconscious
Competence
Conscious
Incompetence
Conscious
Competence
Unconscious
Competence
Old way New way
Source: See References

35. #PMICON18
Learning Dip
35
time
performance
The learning dip is
unavoidable
Investing in
organizational change
management saves
time…and money!
Saves $$!!
“Managed Learning”
helps to minimize the
depth and width

36. #PMICON18
Let’s go back and help our PM get it right this time!
36

37. #PMICON18
Case Study, additional information
• Pilot held, responsibility of / organized by TM
• held two months after Go-Live
• attendees had not been involved in the project
• “show and tell” and “what do you think of the application”
• Job Aids were posted on the Intranet describing how to use the application
37

38. #PMICON18
Let’s help our PM understand the Learning Cycle
• Organize the first pilot with Core Change team as early as possible (well before Go-
Live)
• Approach the pilot as a learning exercise “Practical Experimentation”, with
exercises for certain situations
• A Job Aid is not learning! Job Aids support users as they learn!
• Apply adaptive approach to ensure learning happens
– Update Job Aids around the situations which arose in the pilot
– Post Go-Live, hold follow-up exercises to allow trial-and-error with the
application and pass through the entire learning cycle
38

39. #PMICON18
Change and the individual: key takeaways
• Different strokes for different folks
• Same folks: different change, different strokes
• Individual transition first, then Change
• Individual change is managed learning
• You can’t avoid the learning dip
39
There is no one-size-fits all Change Management Plan!
Need an adaptive approach to Change Management planning!

40. #PMICON18 40
AS IS TO BE
Business
Outcome
Benefits
levers
tipping point
GAP
Change
Wheel
PROJECT ??
©Elisabeth Bucci
Organization

41. #PMICON18 41
AS IS TO BE
tipping point
GAP
©Elisabeth Bucci
Organization
Progress in
behaviour change
is independent of
project progress!
PROJECT is here
Delivering project
deliverables ≠
Delivering
behaviour change

42. #PMICON18 42
Change and the organization

43. #PMICON18
Kotter Eight Step Model
1. Establish a sense of urgency
2. Create a guiding coalition
3. Develop a vision and a strategy
4. Communicate the change vision
5. Empower employees for broad-based action
43

44. #PMICON18
Kotter Eight Step Model (cont)
6. Generate short-term wins
7. Consolidate gains and produce more change
8. Anchor new approaches in the culture
44
Implicit assumption: Organizational change can be planned and
managed top-down
Source: See References.

45. #PMICON18
Senge’s Systemic Model
• Sustainable organizational change is emergent
• Sustainable change happens when small-scale initiatives are
nurtured by networks at all levels
45
Source: See References
Implicit assumption: Sustainable organizational change requires
nurturing long after the project is complete

46. #PMICON18
Senge’s Systemic Model
46
Senge Kottervs
Change is emergent,
bottom-up
Change is managed, top-
down
small-scale big-bang
nurtured by all
management levels
executive-led “guiding
coalition”

47. #PMICON18
Lewin’s Three-Step Model
47
As-Is
To-
be
Identify
forces
Unfreeze Change Refreeze
Break down existing habits… …confusion/
clarification…
…learn and
form new
habits
next slide
Looks like…Bridges’ transition model, applied to organizations!
Source: See References

48. #PMICON18
Lewin Force Field Analysis
48As-Is
driving
restraining
Change occurs
when:
driving forces >
restraining
forces
Business Drivers:
P olitical
E conomic
S ociological
T echnological
L egal
E nvironmental

49. #PMICON18
Let’s go back and help our PM get it right this time!
49

50. #PMICON18
Case Study: additional information
• Business Case: save time spent by training staff to coordinate, track training
courses, never quantified
• Engineering Mgr on Selection Committee:
– “We cannot grow from 800 employees to 2000 employees without an LMS”
– “Me too” project
• HR: centralized performance management system, benefits not stated
– quickly chose an application
– “Easy button” project
50

51. #PMICON18 51
Fill in PDF
form with
employee &
training info
Send by
email to
supervisor for
approval
Send by
email to TM
for approval
Stored
signed PDF
on shared
drive
Enter
training in
Training
Module
Click Submit
for approval
Supervisor
clicks
Approved
TM clicks
Approve
As-Is
To-Be
What’s the
value of this
step?
Do you need a
PDF form?
The PDF Paradigm

52. #PMICON18
Let’s help our PM apply Lewin’s force field analysis
52
As-Is
Retire PDF
form
“can’t grow from 800 to
2000 employees without
an LMS”
automate process for
training employees (4)
Business Driver?
Sense of urgency?
Business Outcome?
Target state?
Benefit?
System to track employee
performance
Define new
processes
and roles Driving forces were
not big enough for
change!

53. #PMICON18 53
AS IS TO BE
Business
Outcome
Benefits
levers
tipping point
GAP
Change
Wheel
PROJECT ??
©Elisabeth Bucci
Organization

54. #PMICON18 54
AS IS TO BEGAP
Change
Wheel
©Elisabeth Bucci
Organization

55. #PMICON18 55
AS IS TO BEGAP
Change
Wheel
©Elisabeth Bucci
Organization
What
change?

56. #PMICON18 56
Stakeholder Management &
Engagement

57. #PMICON18
Stakeholder is…
57
individual
group
organization
that
may affect
be affected by
perceive itself to
be affected by
change
and/or
outcome
Definition: PMBOK v 6
Stakeholder engagement is the key to
effective change.

58. #PMICON18
Stakeholder Management is a Knowledge Area
58
Source: PMBOK v 6
Engagement = winning hearts and minds.
Management is not enough!

59. #PMICON18
Mayfield’s 7 Principles of Stakeholder Engagement
59
You can forget important stakeholders, but they won’t forget you.1
Identification is continuous: new ones emerge, others fade.2
Prioritizing/segmenting is a moment in time. Rinse & repeat.3
Some stakeholders are best engaged by others.4

60. #PMICON18
Mayfield’s 7 Principles of Stakeholder Engagement (cont)
60
Seek first to understand, and then be understood.5
Emotion trumps reason.6
Demonstration trumps argument.7
Engagement = winning hearts and minds.
Management is not enough!
Source: See References

61. #PMICON18
Stakeholder Engagement: Keys to Success
• Continuous process, similar to Risk Management
• Capture insights in Stakeholder Register
• More “art” than “science” (“winning hearts & minds”)
• Meet as many stakeholders one-on-one as early as possible
• Best done as a team
61
Stakeholder engagement strategy should drive project
activities…not the other way around!

62. #PMICON18
Stakeholder Prioritization / Segmentation
62
Source: PMBOK v 6

63. #PMICON18
2x2 Models
63
Collaborators
Champions
Compromisers
Enable, offset
resistance
Accommodators
Remove apathy,
keep supportive
Resistors
deal with
resistance
low high
lowhigh
Benefits
Rec’d
Changes
Req’d
Source: See
References
(Jenner)
Also:
Trust vs alignment
Change Impact vs
Influence
Power or Energy or
Change Readiness vs
Commitment to Change

64. #PMICON18
Prioritization / Segmentation Keys to Success
• KISS: Pick 2 or 3
• Don’t lose sight of the purpose: to facilitate engagement of
stakeholder groups by addressing their WIIFMs
• Remember Mayfield: moment in time! Keep it updated!
64
Spend more time on planning engagement and
management, less on pretty graphics!

65. #PMICON18
Let’s go back and help our PM get it right this time!
65

66. #PMICON18
Case Study, additional information
• Other Engineering managers reached out to BA to find out about
project and wanted to be involved, “ideas to share”
• PM ignored “no time”, “scope change”
66

67. #PMICON18
Let’s help our PM understand Stakeholder Engagement
• Start with Stakeholders! Not the WBS! Not the project schedule!
• Have / maintain Stakeholder Register
• Don’t disband “Selection Committee”, convert to “Core Change Team”
• Engineering Managers who reached out: meet, role on “Core Change Team”
• *Note: Stakeholder Management become a Knowledge Area in 2013, after project
was complete. Just sayin’…
67

68. #PMICON18
Project Steering Committee
• Kotter’s “Guiding Coalition”
• Project Sponsor ensures value for money and leads the organizational change
• Strong sponsorship = key to success
• Therefore need to understand benefits before you start the project!
68
The Project Steering Committee is Stakeholder Engagement in
action

69. #PMICON18
Let’s go back and help our PM get it right this time!
69

70. #PMICON18
Case Study, additional information
• Training Manager was the Project Sponsor
• One month before Go-Live, when it was clear that the PDF form would
disappear, TM stated that the application did not meet requirements.
• PM “invited” TM to go to CFO and request that project be cancelled.
• TM decided to proceed with project.
70

71. #PMICON18
Let’s help our PM understand Project Governance
71
Expected Business
Outcome
improved productivity of
Training team
grow to 2000
employees
centralized performance
management system
better visibility of employee
performance leading to
increased revenue
easier coordination of
training activities
increased revenue
(engineering consulting
services)
?
Is this really the
benefit?
Benefit
stated
benefit
If this is the
benefit, is HR the
sponsor?
Should this not be
the benefit?
Is this outcome
enabled by an
LMS?

72. #PMICON18
Let’s help our PM get it right this time!
• Benefits must be clear before starting the project (now in PMBOK v6)
• Benefit should have been “increase revenue from engineering consulting services”
by better managing engineering talent
• Project Sponsor should have been Engineering VP, not Training Manager
• User interests on Project Steering Committee:
– Training Coordinator Super-User: maintain the system
– Engineering Managers: users of system
• Conversation “Does application meet requirements?” should have been “Do we
still have a business case?”
72

73. #PMICON18 73
Communication & Engagement

74. #PMICON18
Focus on Engagement, not just Communication
• Communication is only one aspect of an effective Change Management
strategy
• Engagement = winning hearts and minds, appealing to emotion (Mayfield’s
Stakeholder principles)
74
Telling people will not lead to engagement.
Do not let communication become “mechanical”.
Involve leadership!

75. #PMICON18
Factors which encourage engagement
• Don’t wait until full information is available
• Focus on two-way, face-to-face interactions when more engagement is needed
• Consider the WIIFM, focus on the individual
• Segment audiences to target information and avoid overload
• Allow plenty of time
• Encourage feedback and act on it
75
Source: See References

76. #PMICON18
Let’s go back and help our PM get it right this time!
76

77. #PMICON18
Case Study, additional information
• Communication: Emails and Intranet updates, by TM
• Soft Go-Live: communication to project team only, no users
• Pilot, responsibility of / organized by TM (already discussed)
77

78. #PMICON18
Let’s help our PM get it right this time!
• Communication is not engagement!
• Intranet and email: engagement?
• Messages from Engineering VP more powerful than TM
• “Pilot” was too little, too late. Engagement?
78

79. #PMICON18 79
The Change Wheel

80. #PMICON18
Change Delivery Plan vs Change Management Plan
• Change Delivery Plan = activities in the project schedule which can be tracked
– Examples: Communication sessions, Conduct Stakeholder Interviews,
Training activities, updates on the intranet, send out newsletter, perform
pilot
• Change Management Plan = set of recurring actions which lead to change
readiness
80

81. #PMICON18
Change Management Plan = Change Wheel
81
S
C
Sk
B
R
F
M
Stakeholders
Communication
Skills (of Change team)
Build Buy-in
Resistance
Feedback
Measurement
who, why, how/when
engaged
how targeted, channels,
when Sponsor, change agents,
change specialists
how to deal with
how to collect & use
how do we know it’s
working?
Plan to engage and sustain,
levers
Source: See
References

82. #PMICON18 82
AS IS TO BE
Business
Outcome
Benefits
levers
tipping point
GAP
Change
Wheel
PROJECT ??
©Elisabeth Bucci
Organization

83. #PMICON18 83
AS IS TO BE
levers
GAP
Change
Mgt Plan
PROJECT
©Elisabeth Bucci
Change Delivery Plan
It’s the Change Management Plan that
gets us over the mountain, not the
Change Delivery Plan!
The Change Delivery Plan must be
adjusted regularly. We must welcome
“scope changes”! Think “adaptive”!
includes

84. #PMICON18 84
AS IS TO BE
Business
Outcome
Benefits
levers
tipping point
GAP
Change
Wheel
©Elisabeth Bucci
Organization

85. #PMICON18
Use Levers to Enable and Sustaining Change
85
“Small changes can
create big results.”
–Peter Senge
levers =
Elements of a
change & its
landscape
that can be
activated in some
way
to enable adoption
on a broad scale
Source: See References

86. #PMICON18
Levers
86
emotional
procedural
structural
peer pressure, guilt, pride
process
how org is controlled
carrot
stick
burning bridges
reward
penalty
can’t go back
applied by
Need to apply systems thinking to
manage unexpected outcomes.
Think “adaptive”!
Source: See References

87. #PMICON18 87
Is delivering enough?

88. #PMICON18
Project Lifecycle
88
Ideation Project Transition SustainStrategy
Business
Driver
Expected Business
Outcome
Benefit Management
Plan
Business Case
Project Charter
To-Be
Project Closeout

89. #PMICON18
Where is the risk of failure highest?
89
Ideation Project Transitio
n
SustainStrategy
Busines
s Driver
Benefit
Management
PlanBusiness
Case
Project
Charter
To-Be
Project
Closeout
What’s wrong with
this picture?
Expected
Business
Outcome

90. #PMICON18
When does the Planning to Sustain start?
90
Ideation Project Transition SustainStrategy
Business
Driver
Benefit Management
Plan
Business Case
Project Charter
To-Be
Project Closeout
Plan to Sustain
Do your project charters
include a Plan to Sustain
change?
Expected Business
Outcome

91. #PMICON18 91
AS IS TO BE
Business
Outcome
Benefits
levers
tipping point
GAP
Change
Wheel
PROJECT ??
©Elisabeth Bucci
Organization

92. #PMICON18 92
AS IS TO BE
Business
Outcome
Benefits
tipping point
GAP
PROJECT ??
©Elisabeth Bucci
Projects fail before
they start and end
before they
succeed!

93. #PMICON18 93
AS IS TO BE
Business
Outcome
Benefits
tipping point
GAP
PROJECT
©Elisabeth Bucci
Delivering is not
enough, we need to
manage the change

94. #PMICON18 94
Delivering is not enough

95. #PMICON18
Project Manager or Change Manager?
95
Achieve business case vs Ensure organization is ready for
change
Project executed on-time, on-
budget, on-scope
vs Stakeholder & business
expectations are met
Customer requirements
understood and serve as the
basis for the project scope
vs Customer’s views and needs
may change throughout the
project and must be respected
Source: See References, adapted

96. #PMICON18
Project Manager or Change Manager?
• Stakeholder Management
• Change Readiness
• Change impact
• Capability Development
• Business engagement & transition
• Sustaining Change
96
Why not the Project
Manager?
Source: See References, adapted

97. #PMICON18
Project Manager or …?
• Define scope
• Task scheduling & prioritization
• Identify & allocate resources
• Manage & track tasks to completion
• Resolve problems & issues
97
As we move towards self-
managed teams, will
these remain the tasks of
the Project Manager?
Source: See References, adapted

98. #PMICON18 98
Delivering is not enough.
We need to manage the change.

99. #PMICON18 99
Start now

100. #PMICON18
Before you start your project…
 Do you understand:
– Business Driver?
– To-Be state?
– Expected Business Outcome?
– Benefits expected?
– Gap between As-Is and To-Be
 Is the above in the Business Case?
100
Does your project pass
the “So What” test?
If your project fails the
“So What” test, failure is
inevitable. Identify and
communicate risk!

101. #PMICON18
Before you start your project…(cont)
 Project deliverables aligned to the Business Case?
 Project Steering Committee with strong Project Sponsor, who will get
benefits?
 Plan to Sustain Change?
101
It doesn’t matter if your project is already in process! Start now!
No budget for change management? Identify the risk of not managing
change!

102. #PMICON18
During Project Planning…
 Risk register include risks to benefits (strategic) and to business operations?
 Core change team in place?
 Stakeholder Assessment done (with core change team?)
 Change Impact Assessment? Change Readiness Assessment?
 Change Management Plan? Change Delivery Plan?
 Plan to Sustain Change updated? Levers identified?
102
Not in this
presentation

103. #PMICON18
Keep going…and don’t stop!
 Stakeholder Register updated?
 Change Management Plan updated? Change Delivery Plan adjusted?
 Risk Register updated with Business/Strategic Risks?
 Plan to Sustain change updated? Adoption Levers working? New ones
needed?
103

104. #PMICON18 104
Delivering is not enough.
We need to manage the change.

105. #PMICON18
Learn more
105

106. #PMICON18
Let’s keep talking
106
Elisabeth Bucci

107. #PMICON18 107
Your turn

108. #PMICON18
References
• Smith, R., & King, D. ,& Sidhu, R. , & Skelsey, D (Eds). (2015). The Effective
Change Manager’s Handbook.London, UK: Kogan Page Ltd.
• Jenner, S. (2014). Managing Benefits. London, UK: TSO.
108

109. #PMICON18
Thank you!
109

110. #PMICON18
Evaluate this Session!
110
Provide your feedback via the event mobile app by completing a brief evaluation!
If you bookmarked/added this session to your Personal Agenda… a link to the
survey is now in your activity feed! Tap the post to get started.
Or, to access the survey:
• Select Agenda
• Select session
• Tap Take Survey at the bottom of the screen.