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Projects of Change
Challenges of managing organizational changes




                            Peter Pfeiffer
                                August 2009
Presentation Content
Organizations change …

All the time, each and every day!
Some because they want to,
Others because they need to,
Some evolve and develop,
Some organizations
 simply disappear
What does
organizational change
    has to do with
      projects ?
The vast majority of projects
 is related to organizational
            change

   Some projects are proactively
   turned towards organizational
   change.
   Others are reactively related to
   change.
… but ¾ of all organizational
    change projects fail
Why do so many change
projects fail?
People’s resistance

inadequate PM approach

Confusion of change and
product
Resistance,
Doubts,
Fear
Forms of Resistance

   Active / passive

   Open / covered

   Individual / group

   Aggressive / timid
Perspectives of Resistance


      biological


           sociological

  psychological
Resistance and Adaptation


Changes       necessity        changes
in the        of adaptation    in living
environment   to environment   beings



    The change comes from outside:
    the reference is the environment.
Resistance and Adaptation

Changes
in the                              congruency
environment Internal adjustments with the
             until self-conservation changes
             is reestablished          in the
Self-                               environment
conservation


      The change comes from inside:
     the reference is the living being.
Collective Resistance

Organizational change affects
 interest groups, influence,
       control, power.
Groups are fundamental
elements of organizations

 They are links between the
 individual and the organization.
 Generate more identity than the
 organization as a whole.
 Allow to share perceptions and
 visions.
Groups are also a critical
   element of change

Facilitate to “organize” resistance,
without exposing the individual.
Suggest the impression that the
collective is stronger than the sum
of the individuals.
Change tends to stimulate the
competition between groups.
Individual Resistance

Organizational change affects people
 not only as employees but also as
             individuals.
Objective Information      Tasks

 Technology       Procedures

                 Rules/Norms
  Hierarchy




Sentimentos             Medo

  Desejos        Insegurança

 Esperança       Ansiedade
              Desconfiança
  Simpatia/Antipatia
                        Rejeição
   Status
              Ambição

       Valores    Tabus
To know the risks, one needs to dive deeper!
Objective Information        Tasks

 Technology       Procedures

                 Rules/Norms
  Hierarchy




  Feelings               Fear

                  Insecurity
   Desire
                Anxiety
   Hope
                         Mistrust
 Sympathy/Antipathy
                         Rejection
   Status
              Ambition

       Values     Taboos
Resist or not resist?


People don't resist change,
they resist being changed.
                     Peter Bregman
PM Approach
“Classical” Project Management
might not be the best approach
  to deal with organizational
             change.
Change should be strategic – that is
rather a program's issue.
PM’s main purpose is to deliver products
– change is different.
Its structure is temporary – change has to
be permanent.
It does not include some important tools
and techniques - organizational
development does.
Types of Projects
Deployment         Development
Organizational
Development
                 x
                     Engineering

   Purpose/Objectives
   Planning/Monitoring
                             ≠
   Direction/Leadership
   Needed Competencies
Project Organization
People   x   Products
Development Projects

Provoke behavioral changes,
intangible, but relevant.
Are strongly influenced by
organizational, social, cultural
and economic aspects.
Development Projects

Have to deal with a high degree
of uncertainty for planning and
implementation.
Beneficiaries are not
commercial clients of the project.
Example Project Management Office


PMO is to               At the same
introduce                  time, the
change and            establishment
promote               of a PMO is a
development            development
within the                   project.
organization.
More explicit Challenges

Obtain sponsorship and resources.
Demonstrate the value of the PMO.
Have qualified staff.
Have the responsibilities well
defined.
“Culture” (whatever that means).
Less explicit Challenges



The management
of perceptions,
beliefs, politics
and power.
What are the keys
  to success?
Recognize the diversity of people.
Build up trust.
Orient the pace of change towards
people, not technology.
Reveal the value for the people, not
only for the organization.
Involve people actively.
Create, use and share the
organizational knowledge.
Not all organizations need
to be identical ...
... but all should comply efficiently
with their mission and be a pleasant
place to work!
Some resources used:
•   Bauer, Ruben (2009): Conhecimento e cognição. Apresentação no SBGC no Rio
    de Janeiro.
•   Bregman, Peter (2009): How to Counter Resistance to Change.
    http://blogs.harvardbusiness.org/bregman/
•   Burke, Wyatt Warner (2007): Organization change. Theory and Practice. Los
    Angeles: Sage Publications.
•   Friess, Peter M. (2000): Systemische Konzepte für das Management von
    Organisationsprojekten. www.gpm-ipma.de/docs/
•   Neumann, Donald/Baureis, David/Stock, Torsten (2009): Capacidade de
    Transformação: Gestão Ágil de Projetos em Estruturas Organizacionais
    Transformáveis. In: Revista MundoPM, nº 26.
•   Nicolette, Dave/ Kosekla, Lasse (2008): Overcoming Resistance to Change.
    http://submissions.agile2008.org/node/1655
•   Pfeiffer, Peter (2005): Gerenciamento de Projetos de Desenvolvimento.
    Conceitos, Instrumentos e Aplicações. Rio de Janeiro: Brasport.
•   Pfeiffer, Peter (2006) Facilitação de Projetos. Conceitos e técnicas para alavancar
    equipes. Rio de Janeiro : Brasport.
•   Schlichter, John (2009): Transformando a Cultura através do PMO e OPM3. In:
    Revista MundoPM, nº 27.
•   www.flickr.com

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Projects of Change

  • 1. Projects of Change Challenges of managing organizational changes Peter Pfeiffer August 2009
  • 3. Organizations change … All the time, each and every day! Some because they want to, Others because they need to, Some evolve and develop,
  • 5. What does organizational change has to do with projects ?
  • 6. The vast majority of projects is related to organizational change Some projects are proactively turned towards organizational change. Others are reactively related to change.
  • 7. … but ¾ of all organizational change projects fail
  • 8. Why do so many change projects fail?
  • 9. People’s resistance inadequate PM approach Confusion of change and product
  • 11. Forms of Resistance Active / passive Open / covered Individual / group Aggressive / timid
  • 12. Perspectives of Resistance biological sociological psychological
  • 13. Resistance and Adaptation Changes necessity changes in the of adaptation in living environment to environment beings The change comes from outside: the reference is the environment.
  • 14. Resistance and Adaptation Changes in the congruency environment Internal adjustments with the until self-conservation changes is reestablished in the Self- environment conservation The change comes from inside: the reference is the living being.
  • 15.
  • 16. Collective Resistance Organizational change affects interest groups, influence, control, power.
  • 17. Groups are fundamental elements of organizations They are links between the individual and the organization. Generate more identity than the organization as a whole. Allow to share perceptions and visions.
  • 18. Groups are also a critical element of change Facilitate to “organize” resistance, without exposing the individual. Suggest the impression that the collective is stronger than the sum of the individuals. Change tends to stimulate the competition between groups.
  • 19.
  • 20. Individual Resistance Organizational change affects people not only as employees but also as individuals.
  • 21. Objective Information Tasks Technology Procedures Rules/Norms Hierarchy Sentimentos Medo Desejos Insegurança Esperança Ansiedade Desconfiança Simpatia/Antipatia Rejeição Status Ambição Valores Tabus
  • 22. To know the risks, one needs to dive deeper!
  • 23. Objective Information Tasks Technology Procedures Rules/Norms Hierarchy Feelings Fear Insecurity Desire Anxiety Hope Mistrust Sympathy/Antipathy Rejection Status Ambition Values Taboos
  • 24. Resist or not resist? People don't resist change, they resist being changed. Peter Bregman
  • 26. “Classical” Project Management might not be the best approach to deal with organizational change.
  • 27. Change should be strategic – that is rather a program's issue. PM’s main purpose is to deliver products – change is different. Its structure is temporary – change has to be permanent. It does not include some important tools and techniques - organizational development does.
  • 29. Organizational Development x Engineering Purpose/Objectives Planning/Monitoring ≠ Direction/Leadership Needed Competencies
  • 31. People x Products
  • 32. Development Projects Provoke behavioral changes, intangible, but relevant. Are strongly influenced by organizational, social, cultural and economic aspects.
  • 33. Development Projects Have to deal with a high degree of uncertainty for planning and implementation. Beneficiaries are not commercial clients of the project.
  • 34. Example Project Management Office PMO is to At the same introduce time, the change and establishment promote of a PMO is a development development within the project. organization.
  • 35. More explicit Challenges Obtain sponsorship and resources. Demonstrate the value of the PMO. Have qualified staff. Have the responsibilities well defined. “Culture” (whatever that means).
  • 36. Less explicit Challenges The management of perceptions, beliefs, politics and power.
  • 37.
  • 38. What are the keys to success?
  • 39. Recognize the diversity of people. Build up trust. Orient the pace of change towards people, not technology. Reveal the value for the people, not only for the organization. Involve people actively. Create, use and share the organizational knowledge.
  • 40. Not all organizations need to be identical ...
  • 41. ... but all should comply efficiently with their mission and be a pleasant place to work!
  • 42.
  • 43. Some resources used: • Bauer, Ruben (2009): Conhecimento e cognição. Apresentação no SBGC no Rio de Janeiro. • Bregman, Peter (2009): How to Counter Resistance to Change. http://blogs.harvardbusiness.org/bregman/ • Burke, Wyatt Warner (2007): Organization change. Theory and Practice. Los Angeles: Sage Publications. • Friess, Peter M. (2000): Systemische Konzepte für das Management von Organisationsprojekten. www.gpm-ipma.de/docs/ • Neumann, Donald/Baureis, David/Stock, Torsten (2009): Capacidade de Transformação: Gestão Ágil de Projetos em Estruturas Organizacionais Transformáveis. In: Revista MundoPM, nº 26. • Nicolette, Dave/ Kosekla, Lasse (2008): Overcoming Resistance to Change. http://submissions.agile2008.org/node/1655 • Pfeiffer, Peter (2005): Gerenciamento de Projetos de Desenvolvimento. Conceitos, Instrumentos e Aplicações. Rio de Janeiro: Brasport. • Pfeiffer, Peter (2006) Facilitação de Projetos. Conceitos e técnicas para alavancar equipes. Rio de Janeiro : Brasport. • Schlichter, John (2009): Transformando a Cultura através do PMO e OPM3. In: Revista MundoPM, nº 27. • www.flickr.com