2. Situation
Complications
Answer
• Projects are a norm in today’s
organization
• Across industries, complexity
continues to grow
–Distributed workforce (WFH)
–Interwoven business models
(outsourcing, supply chain,
web-based collaboration,
etc.)
• Relentless competition and
need to improve or lose
–Lower barriers to entry –
outsourced design,
production, support, etc.
–Lean start-up, open
innovation (Innovators
Dilemma)
• Project failure rates remain
high
–Standish Group reports
failure rate over 50%
• Expectations “do more with
less” continue
• Project management is
implicated (if not held
outright accountable) for
project failures
• What can project managers
do to help improve
outcomes?
• Focus on “people issues”
and utilize Organizational
Change Management tools
and techniques to reduce
risk
Key
Question
3. Background and Assumptions
• Today’s competitive environment drives
organizations to be responsive and nimble
– Projects are used to change organizational capabilities
• Changing organizational capabilities has a
direct impact on people and organizations
– Implementing new metrics, deploying a new system,
redesigning business processes
• Actively managing change delivers better
results and reduces risk of project failure
4. There’s a correlation between Change Program
Effectiveness and Projects that Meet Objectives
Source: PROSCI: 2011: The Case For Change: Results and Outcomes
16%
51%
80%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor Fair Good Excellent
ProjectsthatMetObjectives
Change Program Effectiveness
What makes a Change Program effective?
• People know what is expected of them
• People have the information, skills and tools to succeed at what is
expected
• People are held accountable for meeting expectations
5. What do we know about projects?
• They are temporary in nature…have defined
outcomes…utilize resources that have other jobs
(and share time between project and “day job”
Resources assigned to a project vary across the lifecycle
6. What do we know about how people
relate to change?
• People prefer certainty and control
• Because projects drive change, people will
experience some level of uncertainty
• With uncertainly, people’s performance level
falls
7. Why projects need change
management
• Projects cause stress…
– Seldom enough time, resources or budget for optimal
completion
– Changes to any of the above have a ripple effect
throughout the project
• Funding was just cut 15%
• New requirements have been identified
• A key resource found another opportunity and is leaving
• Unmanaged change often leads to poor
outcomes
– The objective of a project is to deliver change
8. Change is a journey that people react
to differently
Fisher’s Process of Personal Change
Time
Emotion/Reaction
9. • 1500 businesses indicated
only 30% of their
transformational programs
were successful
(McKinsey)
• 92% of transformation program
failures are due to people, org and
leadership shortfalls (Gartner) People 23%
Technology 4%
Leadership 42%
Org / Cultural 27%
Process 4%
Total exceeds 100% due to multiple answers of respondents.
Resistance to Change
Limitations of Existing Systems
Lack of Executive Commitment
Lack of Executive Champion
Unrealistic Expectations
Lack of Cross - Functional Team
Inadequate Team and User Skills
IS Staff and Users Not Involved
Project Charter Too Narrow
20% 40% 60% 80% 100%
People-related issues
Other issues
• 7 of the top 9 problems
experienced on major
projects were people-related.
(Infosys)
When “people issues” are not
addressed, failure rates increase
10. The goal of change management is to
minimize disruption
Minimize the duration
of performance loss
Minimize the depth of
performance loss
11. OCM tools to help ease the change
journey
Business Case –
Trigger event
driving project and
change
Burning Platform –
Why Change is
required
Communications
and Leadership –
What’s Happening
and WIIFM
Education and
Training – Provide
new knowledge
and skill needed to
succeed
Recognition and
Rewards – Anchor
desired behaviors
with recognition
12. Aligning tools with the project lifecycle
Business Case and
Burning Platform
Communications and Management Involvement (Leadership)
Education and Training
Recognition and Rewards
13. • Focus on the risk of not changing
and the negative outcomes
resulting from status quo
• Describe the need for change in
irrefutable terms and
communicate it constantly
• People are more receptive to
change when they understand
the motivation and driver
– Address the unasked question
of “Why do this?”
Business
Case and
Burning
Platform
Communications and Management Involvement (Leadership)
Education and Training
Recognition and Rewards
Burning Platform and Business Case
*Managing at the Speed of Change
Daryl Conner, 1992
*
14. Communication and LeadershipBusiness
Case and
Burning
Platform
Communications and Management Involvement (Leadership)
Education and Training
Recognition and Rewards
• Visible leadership is needed to communicate the importance and
criticality of the project
– Leaders need to set a vision for the future
• As the project progresses, the number of resources assigned
increases
– Conduct stakeholder assessments to understand readiness/resistance
– With the addition of resources, there will be new questions and
concerns
• Communication should be planned and have a consistent message –
don’t ad lib critical info
– For large, long-duration projects a communication schedule should be
developed (ID message, audience, delivery method, etc.)
• Develop a Communications Calendar to ensure consistent messaging
15. Sample Vision Communication
15
Positioning We want to improve the way we process expenses claims.
Tagline • Faster
• Disciplined
• Accurate
Elevator Speech eExpenses provides an enhanced online end-to-end capability allowing faster processing,
faster reimbursement and better control..
Audiences(WIFFM) End users:
• Intuitive
• Fast
Managers:
• Enhanced control
Prague SC:
• Efficiency
• Enhanced control
Auditors/Authorities:
• Accuracy of records
Benefits and
Attributes
Speedy processing
of expenses claims;
tracing of expenses
records
Better cost tracking and
forecasting through
better visibility of
expenses claims
Solely online processing
with no dependency on
physical receipts
Easier archive
management
Features/What’s
Changing
Web-based input
and automatic
routing for approval
Automatic workflow Processing only; no
administrative
dependency
N/A
17. Stakeholder Assessment showstopper
value proposition - understanding the
business needs and the decisions that
derives the project
vision focus – clear
understanding of the
future state of Client
X after phase 2a
transition plan
– understanding
the steps that
will be taken to
move from Client
X from current
state to phase
2a completion
sponsorship – level of mgmt
support
stakeholder resistance – willingness
and capability to accept fusion phase
2a
technical and
non technical
skills –
employees are
equipped with
skills to move into
the new
environment
organization
and
infrastructure –
implications of
Fusion on
processes and
HR structures
that support the
new work
environment
competing initiatives – effective
coordination with other Client X initiatives
minimal impact to project
success
ready for change
18. Education and TrainingBusiness
Case and
Burning
Platform
Communications and Management Involvement (Leadership)
Education and Training
Recognition and Rewards
• Using education and training in addition to
communication can reduce fear/resistance
– Education helps people understand what’s expected in
the future
– Training helps build confidence in their capabilities to
perform in the new environment (post-project)
• Change creates uncertainty which often results
in fear
– In a state of fear, performance falls and people cling to
known methods, processes and tools and resist change
19. Education and Training
January Workshop Calendar
Sun Mon Tues Wed Thurs Fri Sat
30 31 1 2 3 4 5
New Year’s Day
• Change Management
Game Planning
• Retailer Segmentation
Deep Dive
• January Activity
Readiness Checkpoint
• Deliverable Template
Draft
6 7 8 9 10 11 12
• Deliverable Template
Final
13 14 15 16 17 18 19
• Stage-Gate #1
Readiness check
20 21 22 23 24 25 26
• CSE Steering
Committee Meeting
• Confirm Readiness to
Socialize Stage-Gate #1
Message
27 28 29 30 31 1 2
• Stage-Gate #1
Confirmation
Stage-Gate #1
Proposed
Scheduled
Completed
Rescheduled
Workshop /
Interview
Milestone
Review session
C- New Solutions Analysis, C - Customer Type Analysis, P – CP CPML Review, V - Customer Value Interviews
C - New Solutions Analysis, P - Seeds BPML Review, and V - Customer Value Interviews
C – Customer Type Analysis C – Customer Segment Profile Definition, C – Product Characteristic Analysis
C – Customer Segment Profile Definition, C – Product Characteristic Analysis , P – BPML Review Contingency, V – Value Interview Review/Follow-up
C – Customer Segment Profile Definition Contingency
20. Calendar - Session Details
Session New Solutions
Analysis
Customer Type Analysis Customer Segment
Profile Definition
BPML Review
# and Duration 3 – 1 hour 4 – 2 hours 13 – 1 hour To be determined by Casey
and Vivek
Objective Understand the GTM
strategies for US Ops,
implications on sales
channel
Gather inputs to build a
standard customer type
profile
Gather inputs to
understand the differing
characteristic New across
each customer segment
by customer type
Conduct as-is meetings to
develop and confirm as-is
BPML
Required
Participants
US Ops – David
NewCo – Chris
Dealer – Colin, Jeff, Lori,
Jon
Retailer – Tracy, Quinn
Distributor - Tracy,
Quinn
Dealer – Colin, Jeff, Lori,
Jon
Retailer – Tracy, Quinn
Distributor - Tracy, Quinn
To be determined by Casey
and Vivek
Inputs Solution
documentation
Customer Type
Documentation (Dealer,
Retailer, Distributor,
Grower)
Customer Segment
Documentation (Dealer,
Retailer, Distributor,
Grower)
Existing BPML
documentation
Outcomes Understand how the
New solution go-to-
market and the
customer targeting
and treatments
strategies
Development of the
standard customer
profile by customer type
(
Development of the
customer segment
profiles
As-Is CP BPML
21. Recognition and RewardsBusiness
Case and
Burning
Platform
Communications and Management Involvement (Leadership)
Education and Training
Recognition and Rewards
• People will respond to change differently
– Rewarding those who model desired outcomes sets
expectations for others
– Rewarding positive behaviors reduces the potential
need for reprimands to dissuade negative performance
• “What’s rewarded is repeated”
– Rewarding positive outcomes helps anchor and
reinforce the benefits of producing desired outcomes
• Effective use of recognition and rewards reduces
the risk that people do not “climb out” of the J-
Curve model
22. The goal of change management is to
minimize disruption
Minimize the duration
of performance loss
Minimize the depth of
performance loss
23. Summary and Recap
• For many organizations change is a constant
with the rate continually increasing
• Actively managing change leads to improved
outcomes
• Appropriate use of tools and techniques
through-out a project reduces risk of failures
