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Applying Change Management Principles in the Project Management Community


Applying Change Management Principles in the Project Management Community Kristen Springer Greg Pogarch January 11, 2010 What we will share Introductions Change ... – PowerPoint PPT presentation

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Title: Applying Change Management Principles in the Project Management Community

Applying Change Management Principles in the
Project Management Community
  • Kristen Springer
  • Greg Pogarch
  • January 11, 2010

What we will share
  • Introductions
  • Change and Project Management defined and
  • GMAC and Change
  • Approach
  • Tool Demo
  • QA

What we hope you will take away
  • A deeper understanding of organizational change
  • The ability to describe why effective OCM is
  • Insight into the benefits that effective OCM has
    on a project and for the individuals leading a
  • A description of the characteristics of change
  • Understanding of common obstacles for
    implementing effective OCM
  • An approach on how stakeholder management and
    change adoption can be applied within project
    management methodology

What is Change?
In business, change often feels constant. There
are many type of business change, including
new systems
updated procedures
new business objectives
  • The only constant is change...
  • Isaac Asimov

revised policies
new organization structures
New Strategies
Human Response to Change
There are natural human responses to change.
Although all people are unique individuals, we
tend to have similar responses to change. In
general, people dont like change.
What is Organizational Change Management?
Organizational Change Management (OCM) is the
discipline or practice of helping people adopt or
accept change.
current state
future state
OCM helps transition individuals, teams, and
organizations from a current state to a desired
future state.
What is Organizational Change Management?
OCM includes both the processes and tools for
managing the people side of the change.


Organizational Change

Change Models/Approaches/Gurus
  • The practice of OCM is supported by research and
    practical application. There are many OCM models
    and frameworks, including
  • 8 Steps of Successful Change (John Kotters
    Leading Change 1995)
  • Formula for Change (Richard Beckhard and David
  • ADKAR (Prosci)
  • People Centered Implementation (Changefirst)
  • Change Acceleration Process (General Electric)
  • The Seven S Strategy (McKinsey)
  • Managing at the Speed of Change (Conner)
  • And others

How does OCM fit into PM work?
  • Every project/ program creates change
  • System / Technology (tools we use)
  • Process / Procedure (how we work)
  • Policy / Documentation (what we follow)
  • Skills / Role (who does what)
  • YOUR role depends on your organization
  • Lead/execute change efforts?
  • Ensure change efforts are completed?
  • Guide/encourage business to own change efforts?
  • All of the above?

Why is Effective OCM Important?
Effective OCM supports achievement of the
projects goals and objectives.
Enables timely project implementation with an
engaged and readied workforce and avoids negative
interruption to the business.
GE Capital Change Research
  • 100 of all projects evaluated as Successful
    had a good technical solution or approach
  • Over 98 of all projects evaluated as
    Unsuccessful also had a good technical solution
    or approach

What is the differentiating factor between
success and failure?
Formula for Results
The Effectiveness (E) of the result is equal to
the Quality (Q) of the solution times the
Acceptance (A) of the idea.
Q x A E Quality X Acceptance
The Equation Q x A E
This is what you will see if you spend nominal
effort on both the Q and the A
3x3 9
Change at GMAC Inc.
  • GMAC is a global financial services company that
    was founded in 1919. Initially formed to provide
    automotive finance products and services to
    General Motors dealers and clients, GMAC has
    since expanded its business to include mortgage
    operations, insurance, commercial finance and
    online banking.
  • Until 2006, GMAC was a wholly owned subsidiary of
  • Nov. 30, 2006 -- GM sold a 51 percent stake in
    the company to a group of investors led by
    Cerberus Capital Management, L.P.
  • Dec. 24, 2008 Federal Reserve Board approves
    GMAC as a bank holding company under the Bank
    Holding Company Act.
  • April 2009 -- GMAC entered into an agreement with
    Chrysler to provide auto finance products and
    services to Chrysler dealers and customers.
  • May 2009 -- GMAC's ownership structure was
    amended again when GM and Cerberus transferred
    certain of their GMAC equity interests to third
    parties, resulting in further diversity in the
    ownership structure of the company.
  • Nov 2009 GMACs Board of Directors appoints a
    new CEO, Michael Carpenter, to lead the company.

What is the impact of these changes to GMAC Inc.
  • Up until 2006 captive finance company of GM
    with numerous stand alone subsidiaries
  • Multiple large initiatives began to standardize
    processes and systems across the organization
  • Must meet regulatory guidelines as a bank
    holding company within 2-5 years
  • 100 projects lead by 5 large work teams launched
    to address compliance
  • New business priorities to diversify, cut costs,
    re-brand, etc
  • 100 projects are in flight to support critical
    business initiatives
  • Company is facing changing leadership, changing
    business priorities, and a changing identity

GMAC is introducing Change Enablement to its PM
Q x A E Quality X Acceptance
Stakeholder Management supports quality project
execution and prepares for change
  • Stakeholder Management is the process by which a
    projects key stakeholders are identified and an
    approach to win or maintain their support is
    developed. Good stakeholder management leads to
    quality project execution and deployment.
  • A stakeholder is any person or group who
    participates in or will be influenced by the
    outcome of your project.
  • Some of these people may be strong supporters.
  • Others have the influence to undermine your
    project and your position.
  • Some people will be the recipients and users of
    the end result of the work and carry on the
    success and intent of the project.

Q x A E
Stakeholder Management Workbook helps prioritize,
plan, monitor
  • Stakeholder identification
  •  Stakeholder analysis
  • Stakeholder communication plans/routines
  • Sr. Executive
  • Business Lead
  • Business Team Director
  • Project Team
  • Super Users
  • Department Employees

Stakeholder Management Workbook
  • Tool Demo

Disciplined Stakeholder Management benefits the
project team
  • Create a shared vision of the projects desired
  • Minimize disagreements and gains consensus with
    project sponsors
  • Minimize skepticism
  • Build enthusiasm for the project
  • Gain organizational commitment and advocacy
    during the lifecycle of the project, which may
    result in obtaining project resources or other
  • Organizational commitment to support the
    necessary activities to adopt the change
  • Address sensitive issues such as leadership

Change Adoption supports the business readiness
to accept change
  • Change Adoption supports smooth
    transition/change within the business and
    supports benefits realization to the enterprise

Q x A E
Change Adoption Workbook helps plan appropriate
communication, training and organization
transformation tactics
  • Change definition
  • Change impact analysis (people, process, policy,
  •  Change plan (includes organizational change,
    communication and training strategy)

Organizational Change
Change Adoption Workbook
  • Tool Demo

What are common barriers to using change
management in practice?
  • Perception that the change is not significant
  • Perception that there is not enough time or
  • Perception that traditional project
    meetings/routines are adequate
  • Lack of understanding and/or OCM skills on the
    project team
  • Lack of support by leadership
  • Misunderstanding of who owns organization change
    management among the project stakeholders

What happens when Change isnt managed
  • Changes are not defined and not well communicated
  • The case for change and the benefits of the
    change are not well understood
  • Fear, anxiety, and resistance prevent acceptance
  • Enough people dont get on board
  • People dont understand how they need to change
  • People dont have confidence in the change and
    complacency rules
  • New systems, tools, processes, and policies
    arent used properly or at all
  • Confusion abounds and deployment results are poor
  • Benefits realization goals take too long or are
    never reached
  • Transformation is not achieved

Summary What can YOU do?
  • Weave OCM work into the DNA of what you do
  • OCM must be a part of successful project
    implementation Q x A E
  • Can be executed multiple ways and without
    significant cost
  • PMs will benefit when they play a direct role in
    stakeholder management within their project
  • PMs can help the business learn to own and drive
    quality change adoption

  • Questions?