Change Mamagement for the Project Manager

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Change Mamagement for the Project Manager

• Who needs it?

2
Presenter Background

• Why should you listen to Pierre?
• 1980s
• NYSE, Bell South, ATT
• 1990s
• Early Amex, Lehman Bros, Lucent
• Mid Northeast Utilities
• Late Amex Technologies
• 2000s
• Flextronics Intl, Haldex, If
• 2004-now PGE DCPP

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Objectives

• Present research of successful/failed change
  efforts and key elements related to change
• Understand the underlying forces in play and
  essential actions that can be taken to drive
  successful change
• Discuss keys to success in driving change

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Change Management Definition

• Pierres Pragmatic definition for Change
  Management
• Everything everyone related to the project
  didnt think about or chose to ignore

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History of ERP / IT changes

• The Chaos Report (1995)
• 31.1 of projects canceled before completion
• 52.7 of projects cost over 189 of original
  estimates
• The KPMG Canada Survey (1997)
• Over 61 of sample were deemed to have failed
• gt75 blew their schedules by 30 or more
• gt50 exceeded budgets by a substantial margin
• The Robbins-Gioia Survey (2001)
• 51 viewed ERP implementation as unsuccessful
• 46 didnt understand how to use ERP to improve
  business
• 56 had a PMO, 36 of this sample felt their
  ERP implementation was unsuccessful

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Success/Failure Elements

• User Involvement
• Executive Management Support
• User Requirements
• Cannot be separated nor can any single element be
  ignored

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The Underlying Forces of Change

• Certain forces exist in every project that make
  change efforts a challenge under the best of
  circumstances
• Organizational inertia
• Urgency is relative
• Inherent risks of unintended consequences

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Organizational Inertia

• Newtons Laws of Motion
• 1st Law
• An object at rest tends to stay at rest and an
  object in motion tends to stay in motion
• 2nd Law
• Acceleration or Force of an object is dependent
  upon two variables
• The mass of the object
• The momentum of the object
• 3rd Law
• For every action, there is an equal and opposite
  reaction

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Organizational Inertia

• Theorem 1
• To overcome organizational inertia, Newtons
  Laws must be understood and obeyed
• CM Translation In order to change an
  organizations direction and speed, you must
• Build MASS related to the change and generate
  MOMENTUM for the change

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Urgency is Relative

• Pierres Law of Special Relativity
• Theorem 2
• The inherent degree of importance of a given
  issue to a decision maker is directly
  proportional to the proximity in both time and
  space to that decision maker
• CM Translation To ensure success of a change you
  must
• Create a Sense of URGENCY
• Or

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Unintended Consequences

• Heisenbergs Uncertainty Principle
• Locating a particle in a small region of space
  makes the momentum of the particle uncertain and
  conversely, measuring the momentum of a particle
  precisely makes the position uncertain
• CM Translation The Truth depends on your
  perspective

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Unintended Consequences

• Theorem 3 The perception and understanding of a
  change depends on the perspective of the
  observer.
• To ensure your change accomplishes its intended
  objectives without creating additional problems,
  you must be relentless in your efforts in seeking
  accuracy
• Triangulate
• Assess the change from multiple perspectives
  continuously test these perspectives

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Change Management A More Precise Definition

• Change Management is an integrated and
  orchestrated series of actions exerting force on
  an organization to change its direction and
  speed in a manner that will drive the
  organization to support the desired result

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CM Theorems Reviewed

• Theorem 1
• To overcome organizational inertia, Newtons Laws
  must be understood and obeyed
• Theorem 2
• The inherent degree of importance of a given
  issue to a decision maker is directly
  proportional to the proximity in both time and
  space of the issue to the decision maker
• Theorem 3
• The perception and understanding of a change
  depends on the perspective of the observer.

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Applying CM Theorems

• Theorem 1
• To overcome organizational inertia, Newtons Laws
  must be understood and obeyed
• Build MASS by gaining Allies
• Formal Leadership
• Informal Leadership

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Ally Analysis
Energy for
High

• Target Audience and Progression
• Skeptics
• Fence sitters
• Unconscious/ unaware
• Avoid engaging
• Rebels
• Opponents
• Complainers
• Dont confuse Skeptics for Opponents

Skeptics
Fence Sitters
The Unconscious/ Unaware
Rebels
Opponents
Complainers
Energy against
Low
High
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Applying CM Theorems

• Theorem 1
• To overcome organizational inertia, Newtons Laws
  must be understood and obeyed
• Generate MOMENTUM by
• Use the forces of Attraction and Repulsion

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Generating Momentum
Make it easy to move in the desired direction
and

• Make the work simpler
• Introduce concepts early and incrementally
• Design training with the end user and their daily
  routine in mind
• Repeat and reinforce before and after the change

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Generating Momentum
Make it easy to move in the desired direction
and Painful to stay with the existing direction

• Establish Clear Consequences for not embracing
  the change
• Make the pain and risk of not changing outweigh
  pain and risk perceived with changing
• Define those risks in clear, objective, and
  tangible ways
• Establish clear metrics for monitoring specific
  actions required to change the organizations
• Mass
• Momentum
• Direction

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Urgency Is Relative

• Theorem 2
• The inherent degree of importance of a given
  issue to a decision maker is directly
  proportional to the proximity in both time and
  space to that decision maker
• To ensure success of a change you must
• Create a Sense of URGENCY
• or
• Wait

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Managing Unintended Consequences

• Triangulate Constantly engage your allies
• Begin with the end in mind
• Maintain focus on the desired result
• Test assumptions and perspectives
• Challenge the prevailing position
• Test, retest, and test some more
• Maintain clear roles, responsibilities, and
  expectations

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CM Keys to Success

• Beginning the process of building Mass
• Right people on the CM team Process knowledge is
  key
• Instant credibility
• Recruiting power
• Minimize blind spots

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CM Keys to Success

• Knowledge IS Power
• Make the change attractive by making it easy
• SAP Control Panel
• Make it Real and consequential
• Communicate the impact of SAP will have on daily
  work
• Communicate impact of not changing
• Make it Self Fulfilling
• Prepare the organization for each step of the
  change
• Celebrate every incremental change toward the
  desired result

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CM Keys to Success

• Timing is Everything
• Repeat, repeat, repeat
• Dont train till you see
• Its not over until they dont miss a thing

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Success/Failure Profiles Revisited

• User Involvement
• Obey Newtons Laws of Motion
• Build Mass and Momentum by gaining Allies
• Executive Management Support
• Ignore the law of Special Relativity at your
  peril
• Create urgency or wait until the urgency becomes
  manifest
• User Requirements
• Remember Heisenberg there can be multiple truths
• Test your truth from many perspectives

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• Questions?