The present is a time of great entrepreneurial ferment, where old and staid institutions
Peter Drucker
suddenly have to become limber.
During realization of an opportunity change may occur in two distinct ways:
- technical change: changes to work scope (whether generated by the project team or contractors) or other changes (e.g. progress) affecting cost and schedule;
- process or organizational change: changes in the business processes or the organizational structure or individuals used to realize the project. Each of the above needs careful management in order to minimize impact on the project.
A diligent technical change control framework is an important pre-requisite in ensuring
effective executive control. Changes occur for many reasons, but need to be controlled.
Successful projects usually run a weekly change meeting chaired by the project manager.
There are normally only three reasons for accepting change:
• to enable safe operation
• to ensure plant functionality (the plant will operate to specification)
• because the added value of the change far outweighs the cost and schedule consequences
There are only three possible outcomes for each proposal:
i accept
ii it is worth further research to clarify benefit and/or cost
iii reject
The essential features of a change control process are:
• its regularity
• the incisiveness of its decision making
• the audit-trail of decisions
Project teams lose focus if their time is spent worrying about potential changes.
Uncertainty breeds doubt, and sends mixed messages to contractors. Prompt decision
making avoids this.
Technical change control is also linked to commitment control. It is an essential early
warning on potential cost and schedule delays, and forecasting when financial authorities
might be exceeded. It is important that technical change control be handled effectively at
project manager level for this reason.
Business Process & Organisational Change
Significant changes to business process, organizational structure or senior individuals in
the team may occur for several reasons (e.g. to maximize the value of the opportunity).
The changes may emerge from the Improvement Process or because problems are being
experienced in meeting the project’s objectives.
However, large changes in the way that the project is managed may be difficult to put in
place due to people’s entrenched attitudes and/or lack of a structured process to assist people
to accept change. It is important that a change management process is established and
people are trained in its use if such changes are to be managed effectively and efficiently.
Prerequisites for successful change.
As shown in Figure 4.8.1, there are four prerequisites
for successful process or organizational change. The
absence of any of these four prerequisites will
incapacitate the change initiative.
1 The need for change should be clear and compelling. Without this pressure, any
change initiative will drift towards the ‘bottom of the in-tray’.
2 A structure has to be established for implanting the change in the people,
organisation and culture. Without the capacity for change, anxiety and frustration
will emerge and hinder progress.
3 Likewise, where the change will lead has to be easily grasped. The leadership team
has to share this picture in a simple yet clear Vision – goals that stretch the
imagination. Their absence will see a fast start fizzle out, as the way forward
becomes blurred and ill defined. There must also be a realistic expectation that the
team can meet the goals.
4 Actionable first steps have to be formulated or else haphazard efforts and false starts occur.
There must be a sense of teamwork – a sense that ”we’re all in this together.”
Figure 4.8.2 provides a description of the major elements of change management. It also
highlights the change in emphasis with time between change management and transition
management.
Shift in emphasis from Change Management to Transition Management
As the change moves through the illustrated phases the emphasis moves from managing
change to managing the transition from the previous state to the desired state a much
more difficult task! While a “change” can be considered to be the end of the physical
change (e.g. the family moving to a new city), transition addresses the psychological
changes needed to make the change a success (e.g. becoming familiar with navigating
around the new city).
There are several preconditions for successful and energising transitions:
• a sense of urgent need that is clear to everyone
• a vision that is inspiring and clearly worth achieving
• goals that stretch people’s abilities
• a spirit of teamwork – ‘we’re all in this together’
• a realistic expectation that goals can be met
The Management of Organizational and Process Change Guide discusses the issues that
need to be addressed in each phase of the change process.