There are quite a few stories out there about project failure caused by poor Organizational Change Management (OCM) or complete lack of OCM. What about successful Organizational Change Management? I have always felt like fashioning Change Management after a marketing campaign was a very good way to go. I was working on a huge worldwide program for a very large pharmaceutical company that had the best OCM I have ever seen. All of the leaders supported the change. This involved a good deal of their time as they had several events to help the users understand the importance of the change and rally around it. They communicated very frequently and in many different forms. The program leaders made sure that they were getting requirements from all locations participating. Obviously the leaders of the organization were willing to spend money to handle the people side of change as they could see there would be a return. We all know that huge worldwide programs can be the riskiest so the company did all in its power to try to ensure success.
And then there was the time I was brought into an organization to bring a great deal of change. The CIO wanted change. The PMO Director wanted change. Everyone wanted change! They just didn’t agree on what this change looked like! But they agreed it needed to be done yesterday (they really did as they had been looking for a resource to lead this for quite some time). This caused a great deal of resistance from the people who had to do the work to get the projects completed. And then there were the various businesses under the corporation who needed to come together to help develop the requirements that would work for all. I worked with the sponsors to ensure they stood behind the changes required from the program. I built targeted communications for all the various areas of the organization and communicated frequently. I didn’t have the luxury of a big budget and many resources to ensure OCM success for the program but I was a big fan of the solution so my enthusiasm kept me going. And as I said most of the people in the organization realized that several things needed to change as things weren’t going so well before the program was implemented.
When I was researching for a keynote speech I was to present, I came across a very inspiring story of a project success. The two hour house. One of the major elements of the very successful project was people working together because they really believed in the project. This project wasn’t about change in an organization but it was about people really believing in what they were doing. And that is what you want on OCM – for people to believe in the benefit to result from the project. For that particular project the “benefit” was proving they could build the house per a 2 hour schedule. In the end they were proving out the major elements they felt must be in place for success of the project (very detailed planning, risk management, only dedicated believers on the team, contingency planning etc.).
Projects are about improving or fixing things. So it should be easy to get people excited about the change that comes from the completion of a project, right? Not really. People don’t change. Status quo is easier. Here are the top reasons people are resistant to change.
1. Preparing for the change requires a lot of work. We have to learn new processes, systems, and new ways of doing things. This causes anxiety – what if I can’t do my job as well after the process changes? What if the new system is impossible to use?
2. There are uncertainties around change. We really don’t know how things are going to go after the changes are put in place. Uncertainty is scary!
3. The organization usually tells us why this is good for the business, or sometimes not. But what does it do for me? We don’t always get that message and lets face it, what’s in it for me matters. We have to take time out of our very busy schedules to get ready for the change so it helps to have strong motivation. Sometimes leaders don’t provide that motivation.
4. Many of the C levels in organizations didn’t get to the top by worrying about people’s feelings. They are not the touchy-feely type (I didn’t say everyone). They do know how to network and they can be friendly but the CFO doesn’t need to be expert in HR. So worrying about whether the people of the organization have concerns about the major changes in progress often isn’t at the top of the Executive to do list. Unfortunately, you can’t ignore that the people of the organization have to change and there are going to be some negative opinions about almost any change. This has to be taken into consideration and dealt with. Managers have to talk to their reports to understand concerns!
5. It could be that the people really understand and want the change. However, if major changes often fail in the organization, there is no trust that this project is going to succeed or even be completed. And one thing we all don’t like is feeling like we are doing a lot of work for something that might be abandoned or just won’t work.
So most Change Management theories say you must win the people of the organization over that the change is great, will be successful and will improve the lives of the members of the organization. Promoting the change as a marketing campaign (with the organization as the audience) can work wonders.
“Lean” organizations are so common today. Doing more with less is such a popular slogan. While the Portfolio of projects, initiatives and tasks is “super-sized”, the staff to complete all of this work is not big enough to get it all done. If resource demand is much higher than capacity, some things just aren’t going to get done, projects will fail, mistakes will be made and people are going to be very unhappy. This is a sure way to lose the best people.
Your organization will always have tons of ideas for improving business, improving processes or buying the latest technology. But you can’t do it all! However, you can stick to a very solid corporate strategy and prioritize what gets done based on the strategy.
Right-sizing the Portfolio of Projects and Initiatives:
1. Develop a clear, solid Strategy based on your organization’s core competency.
2. Communicate the strategy so that everyone knows how to translate the strategy into what gets done.
3. Develop a method to determine value of projects and initiatives (relate to strategy and other benefits to be realized).
4. Prioritize the portfolio of projects and match resource capacity and demand.
While your organization certainly is made up of superstars, they aren’t super human. There really are only 24 hours in a day and you really do have finite resources.
The Business Need
Sound strategic planning is fundamental to achieving business objectives. Execution of the strategy is difficult and the complexities created by out of sync and competing activities, processes, functional groups and systems across the organization create many obstacles on the road to success. Constant change, corporate politics, functional silos and many other factors affect progress toward business objectives.
A sound business plan and clearly defined goals are essential, but the key to successful execution is understanding how to accomplish those goals. This paper looks at process relationships and information flow across the business from strategic planning to achievement of the strategy, from great ideas to benefits realization. To ensure the business efficiently and effectively achieves its strategy; the organization must optimize the outcomes from their processes across the entire life-cycle.
While organizations put emphasis on improvement of individual processes, improvement across processes and systems is often neglected. This big picture transformation is more difficult to tackle. Over time, standalone systems, functional stovepipes and constant change cause issues around data, communication, processes, systems and performance. While this task of analyzing and improving the full life-cycle is difficult, the results are very valuable to the organization.
The Life-cycle Answers:
• Strategic Planning – How can the organization succeed?
• Portfolio Management – What should we be doing to achieve our strategy? How do we maximize ROI?
• Project Management – How do we best achieve these things we should be doing?
• Operations – are we effectively putting the plans in place for ongoing operations?
The Business Issues
Virtually every organization has information fragmented in multiple repositories and enterprise applications. Many obstacles keep organizations from meeting their basic needs for efficient operations, strategic alignment and profitability. Common business issues include:
o Duplication of effort and disconnected processes
o No standardization, documentation or understanding of process
o Poor metrics and poor performance
o Insufficient or bad data
o Difficulty in obtaining data
o No authoritative source of data, duplicate entry
o Insufficient applications and infrastructure to support best practice processes
o Disparate applications and systems
The Holistic view of the full life-cycle
Strategic Planning, Portfolio Management, Project Management, Program Management and Operations make up the life-cycle from concept to benefits realization. These processes exchange critical information. All of these processes contribute to achievement of strategy, thus are critical to business success.
Weaknesses in any of these areas will result in problems in the other areas as there is information feeds and dependencies between these functions. In addition, the processes in each of these major areas must be efficient and must provide quality information to the other areas.
Typical Process Area Issues:
• Strategic Planning – Objectives may not be clear and not understood by the organization and the Organization may not be able to interpret the strategy into what needs to be done.
• Portfolio Management – Many organizations don’t use objective criteria for investment selection which results in a Portfolio that is not optimized. The Portfolio may not be sized correctly to match resource capacity to demand.
• Project Management – There may be overlapping and redundant projects. There may be resource conflicts, priority conflicts and poor performance.
• Operations – Transition process may not be sufficient for a smooth roll-out. Rush to get to production can result in problems after roll-out.
The strategic goals are meaningless to the organization unless they are clear, understood by all and interpreted into the activities (Portfolio Management: selected projects) required to achieve the goals. This means that executives should not throw high-level strategic goals out to the organization with the directive to make it happen. Instead, they should have a clear idea of the major activities designed to meet the strategic objectives to ensure the organization is headed in the right direction. Leaders in Strategic Planning and Portfolio Management can work together to clearly connect the strategy with the required tactical activity.
Is it working? – Performance Management
Performance Management is an element in each of the processes as metrics and analysis are required to ensure each area is achieving its goals and to ensure benefits realization from the system as a whole. For decision makers, Portfolio Management will provide benefits realization metrics including financial benefits. Portfolio Management measures progress toward corporate goals based on the metrics for each goal and reports this information to Strategic Planning/Executives. For each Project, metrics will be established to ensure the project team is meeting the project goals. Project Performance is measured and analyzed to develop corrective actions and ensure risks are managed. This Performance information is reviewed in Project and Program reviews to ensure Project Management performance is optimized. Performance information is fed from the Project Management system to the Portfolio Management system (and/ or the Program Management system) to allow decision-making for the portfolio and programs. In Portfolio reviews, project performance is taken into consideration and failing projects may be stopped.
Where has this solution been applied and what were the results?
A division of a government agency required an analysis of all applications, systems, processes and data across life-cycle management. The analysis showed they had legacy systems that were no longer supported, high maintenance homemade tools (requiring frequent coding), applications that only had a handful of users, standalone applications for each process, data entered manually in more than one application and manual processes. The analysis led to corrective actions to eliminate or retire systems, automate and streamline processes and data feeds and implement a more robust infrastructure. An IT/ Process Roadmap was developed to provide the needed solution concept and plan.
A large company had merged many other companies into the organization. There were many scattered databases, duplication of effort, re-packaging of information for different levels of the organization, different databases, processes, and reports across the same functions. Excessive time was spent manually generating reports in preparation for management decision-making meetings. There were no standard project performance metrics across the enterprise. Portfolio management had been developed using a very complex process involving numerous Excel spreadsheets. A new life-cycle was designed to standardize and automate Project Management, Portfolio Management, IT Governance and Financial Management across the merged businesses. This solution brought all the data for these processes into a centralized database, providing greatly improved efficiency, improved data accuracy, cost and labor savings and elimination of non-value added work.
Building the Holistic Life-cycle Solution
How do you build the holistic life-cycle process to optimize sharing information across processes, eliminate duplication of tasks, and improve each process while optimizing across all processes? First, ensure high-level sponsorship with a clear understanding of the value of this effort from the top down. As this solution provides both strategic and tactical benefit and provides significant financial benefit, this holistic approach should be an easy “sell” to the leaders of the organization. However, the new life-cycle design may require breaking down barriers between functions and may bring major changes in governance and decision-making. Good Change Management planning can help ensure success of the new solution.
By mapping the current processes, systems and data flow, you will reveal gaps, duplications and problem areas. Analysis of this current situation will determine required improvements to establish the optimized life-cycle. Keep in mind that the goal is to improve individual processes as well as tying the processes together and developing good information flow and process coordination across the life-cycle.
This improved life-cycle will provide benefits of strategic achievement, a portfolio of investments with the highest ROI and improved efficiency across the organization. The transformation effort is not easy to achieve but well worth the effort.
I was recently asked what did I learn early that I have been able to use throughout my career. My answer is the power of taking ownership of your results.
This goes back to a time when I was in an organization where people were very de-motivated. Things just weren’t going well. We were doing some projects that we really didn’t think we should be doing (weren’t feasible) but we had no choice. We had to do what top management said to do.
At one point we landed a very big project with a good deal of risk, visibility and pressure from our top leader. We had a very lean project team and a very tight schedule. There were team members that didn’t get along. Since many team members were thinking more about polishing up their resumes and getting out of this job nightmare, I was very worried about our ability to pull this off. But I am a stubborn and determined Project Manager.
This will sound crazy but stay with me! I took these very cynical Engineers to a motivational presentation. I expected that most of them would just be happy to get away from the office for a day but they listened and really got it. What we brought back to the office was the concept that we owned the results of our work. We, as a team, could do this successfully if we all stepped up and agreed that we were going to ensure success. We realized we had control of our destiny. We were very motivated.
And it worked so it is a very cool story! We had all kinds of trouble (such as learning curve for all the new things we had to figure out, one key team member left one month before the end of the project et.) and worked more than we ever had (many long hours). We were successful, the project was on time and the top leaders were very impressed!
So when I am trying to turn around negative attitude in the workplace and get people motivated, I remind people that things don’t happen to us, we make things happen. A little bit corny but it works!