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Building the Professional of 2020: An Building the Professional of 2020: An Approach to Business Change Process Integration Business Change Modelling Integration Business Change Modelling Harris Apostolopoulos BEng(Hons), MSc, MBA, PhDc City University London 29 May 2013

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Page 1: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Building the Professional of 2020: AnBuilding the Professional of 2020: AnApproach to Business Change ProcessIntegration

Business Change Modelling

Integration

Business Change Modelling

Harris Apostolopoulos BEng(Hons), MSc, MBA, PhDcCity University London

29 May 2013

Page 2: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

In Brief

Successful change can be influenced by a variety of factors,which can affect the result of change itself, as well as theobjectives of the project Change management is the strategic andobjectives of the project. Change management is the strategic andstructured approach for transitioning individuals, teams andorganizations from a current state to a desired future state.

Most project managers follow established project managementmethodologies in order to achieve success. However, somedegree of failure is evident in most projects worldwide. Oneimportant reason for this failure, is that projects often implementimportant reason for this failure, is that projects often implementchange, and in its turn change may introduce new risk parameters.

Page 3: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Agenda

Significance

Agenda

11

Project Management Overview22

Change Management Modelling

Change Management OverviewChange Management Overview

44

33

Risk Management OverviewRisk Management Overview55

Risk Management Tools and TechniquesRisk Management Tools and Techniques66

SummarySummary77

Page 4: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

S fSignificance

• Market needs are constantly changing; market adaptation, strategic businessplanning, flexibility, speed, cultural adaptation are more than mandatory.

• Most of the contemporary project management methodologies primarily focus on• Most of the contemporary project management methodologies primarily focus on(within predefined scope) :

Time C t Cost Quality

• Project management methodologies do not take into serious consideration Businessj g gCultural Issues, Change Management and Adaptation.

• Too much emphasis on deliverables or outcomes (e.g. capabilities) which on theirown do not deliver specific benefits or even in the processes (the way things have toown do not deliver specific benefits, or even in the processes (the way things have tobe done).

Page 5: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

OAgenda: Project Management Overview

Project jManagement

Risk Change ManagementManagement

Page 6: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Project Management

• The science of modern project management is not new, started to emerge in 1990s.

• What seems to have changed over the past decade are the ways of applying theoryinto practiceinto practice.

Consequence: The need to standardise and structure different ways of projectmanagement, in a detailed, documented and formal manner.

• Change management mostly observed and utilised as an integrated process withinproject management, is a rational process for exploring decision and behaviouralternatives in an attempt to realign the course of “derailed” deliverables due toalternatives in an attempt to realign the course of derailed deliverables due tochange and ensure project success.

• The two most established project management frameworks are PMI’s PMBOK andPRINCE2PRINCE2.

Page 7: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

( )

PMBOK (5th diti ) i t f

Project Management (cont.)

• PMBOK (5th edition) consists of:

47 processes mapped in 5 distinct process groups split into 10 knowledge areas, isrecognised by the American National Standards Institute (ANSI) as an Americang y ( )National Standard (ANSI/PMI 99-001-2008).

• PRINCE2 (2009) consists of:

7 processes which are organized into 7 themes, developed by the Office of Government Commerce (OGC), in the United Kingdom.

• Both frameworks, introduce a degree of complexity and seem lacking an effective mechanism for accommodating change in relation to risk assessment.

Ch t d i k t ll d d t titi• Change management and risk assessment are usually regarded as separate entities; which should be generally implemented during the initial stages of a project.

Page 8: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Project Management Integration

• Project management can have strategic value when there is link between the level ofProject management can have strategic value, when there is link between the level of effectiveness and how efficiently a project is accomplished and when the project’s outcomes (product or services); can provide overall business value.

Ch t it lf i l t t i d t t d h t• Change management itself, is also a strategic and structured approach to transitioning individuals, teams, and organisations from a current state to a desired future state.

• Pitagorsky (2011) “Project managers, to be effective must be competent change managers”.

• Homes (2001) explained that project managers should establish a solid foundation for• Homes (2001) explained that project managers should establish a solid foundation for change and that today’s role of project manager focuses more on the project and the team.

• Effective projects are those which achieve a business change within a managed organisational context (Gooch, 1997).

Page 9: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

( )Project Management Integration (cont.)

• Project management and change management may seem as separate process but• Project management and change management may seem as separate process, but they are integrated in practice.

Project Management

CurrentState 

FutureState

Transition

Change Management

Figure 1: Project Management and Change Management Integration

Page 10: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C

PRINCE2 (2009) names the constraints into variables which are involved in every project

Project Constraints

PRINCE2 (2009) names the constraints into variables which are involved in every project and have to be managed for the successful performance of the project:

• Costs• Timescales• Quality• Scope• Risk • Benefits

PMBOK (2013) defines the competing project constraints which have to be balanced:

• Scope• Quality• Schedule• Budget• Resources• Risks

Page 11: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C OAgenda: Change Management Overview

Project jManagement

Risk Change ManagementManagement

Page 12: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Change Management and Project Management

• Change management, is growing quite fast among the project managementcommunity, setting the essential foundation to become an integrated process incontemporary project management methodologies (PMBOK; monitoring andcontrolling process, PRINCE2; change theme).controlling process, PRINCE2; change theme).

• Project teams are the specific stakeholders who are firstly influenced by changes,not only because they initiate them, but also have to follow them as planned.

• “Change” for project management can be seen as an integrated process which isrelated to controlling the project’s requirements in an effort to change them so as toeventually place activities in order and conform to customers requirements.y p q

• Not all changes have the same implications for projects as some might be acceptedand some others might not.

Page 13: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Change Management and Project Management (cont.)

• Project success, even if it remains vague and ambiguous depending on a plethora of factors, with the aid of project management frameworks the whole process towards success is formalised and documented.

• Change in structured project management frameworks is an embedded processwithin the project management methodology. In this context, every project is subjectto changes; one of the aims of structured project management methodologies is tod t t h d i ff t i i i i k d fi ll j tadapt to changes and in effect minimise risk and finally ensure project success.

• Project Management focuses on tasks or activities whereas, Change Managementfocuses on people impacted by change.p p p y g

• Both change management and project management evolved in a way that providednot only tools but also processes. Effectively, project management and changemanagement may seem as separate entities; practically they are integratedmanagement may seem as separate entities; practically they are integrated.

Page 14: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C fChange Management Definitions

• Change management is a systematic approach to dealing with change, both fromthe perspective of an organisation and on the individual level. A somewhat ambiguousterm, change management has at least three different aspects, including: adapting tochange controlling change and effecting changechange, controlling change, and effecting change.

Source: http://searchcio-midmarket.techtarget.com/definition/change-management

• Change management can be defined as a set of processes that is employed toensure that significant changes are implemented in an orderly, controlled, andsystematic fashion to effect organizational change.

• One of the goals of change management is with regards to the human aspects of tochange in order for organisational members to buy into change and achieve theorganization’s goal of an orderly and effective transformation.

Source: http://www.tech-faq.com/change-management.html

Page 15: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Ch D fi i i i f P j MChange Definitions in terms of Project Management

• The purpose of the Change theme is to identify, assess and control any potential andapproved changes to the baseline.

• Since change is inevitable during the life cycle of a project a systematic approach isrequired to the identification, assessment and control of issues that may result inchange. (PRINCE, 2009, p.91).

• The monitoring and controlling process group among others is responsible for theidentification of any areas in which changes to the plan are required (PMBOK, p.56).

A d h t t f th P f I t t d Ch C t l• Approved changes are an output of the Perform Integrated Change ControlProcess. The approved change requests may be a corrective action, a preventiveaction or a defect repair. Approved change requests (implemented by the projectmanagement team) can impact any area of the project or project management plan.(PMBOK p 82)(PMBOK, p.82).

Page 16: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

f CTypes of Change

• Two major categories, individual change management and organisational changemanagement.

• Especially in multinational companies, cross-cultural issues can affect plannedchanges and the process can get complicated.

• However, the transitional period of change (which may lead to adaptation) is not onlyHowever, the transitional period of change (which may lead to adaptation) is not onlya time consuming but also a risky process; due to cultural or even organisationalreasons the whole process is subject to fail.

I ti f h t h h it t d b ilit f• Irrespective of change type, change has a reason…, magnitute and probaility ofsuccess or failure.

Page 17: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C C C fChange Categories Classification

Individual • Rules / Regulations

Depending on a plethora of classifications, change can be categorised but notlimited to as:

• Individual• Organisational• Structural / Restructure• Cost cutting

• Rules / Regulations • Continuous / Discontinuous • Evolutionary• Revolutionaryg

• Process• Cultural• Technical

y• Strategic• Transformational• Risky / Controlled / Monitored

• System • Planned / Unplanned• Remedial

• Technological • Developmental• Proactive / Reactive

Page 18: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C CProject Change Curve

Source: http://www.leanhrm.com/change.html

Figure 2: Project Change Curve

Page 19: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

CAgenda: Change Management Modelling

Project jManagement

Risk Change Management

ManagementManagement Models

Page 20: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

SMcKinsey 7-S Model

Used to define the areas of an organisation that needs to be in alignment so as to operate

Figure 3: McKinsey Model of Strategic Change

effectively. Can identify areas that need to change. when implementing a business strategy,and areas that may be affected by proposed business changes.

Source: Business Analysis Techniques, p. 18

Page 21: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Seven Forces Model

Figure 4: The seven forces model for Project Success (Turner, 1990)

Page 22: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Beckhard and Harris (1987) came p ith a famo s form la in an attempt to

Beckhard and Harris Formula

• Beckhard and Harris (1987) came up with a famous formula in an attempt tomathematically formulate change. Actually they tried to relate change being a resultof factors such as “the level of dissatisfaction with the status quo and the proposedend state.

C = [ABD] > X

C = changeC = changeA = level of dissatisfaction with the status quoB = Desirability of the proposed change or end stateD = Practicality of the change (minimal risk and disruption)X = Cost of changing

May be seen also as (D x V x F) > R

Factors : Dissatisfaction, Vision, First Steps, Resistance

Page 23: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Kotter’s Model

Error #1: Not Establishing a Great Enough Sense of Urgency

Error #2: Not Creating a Powerful Enough Guiding Coalitiong g g

Error #3: Lacking a Vision

Error #4: Undercommunicating the Vision by a factor of Teng y

Error #5: Not Removing Obstacles to the New Vision

Error #6: Not Systematically Planning for and Creating Short-Term Winsy y g g

Error #7: Declaring Victory Too Soon

Error #8: Not Anchoring Changes in the Corporation’s Cultureg g p

Page 24: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C C ( )The Change Curve,Kübler-Ross (1969) Model

Source: http://www.change-works.com.au/blog.php?blog_id=34

Figure 5: Kübler-Ross Model

Page 25: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

SThe SARAH Model

Figure 6: SARAH Model Stages

Source: Business Analysis Techniques, p. 238

Page 26: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

ADKAR Framework Model

Figure 7: ADKAR Change Model ( developed by Prosci )

Source: http://zenexmachina.files.wordpress.com/2012/09/adkar-for-scrum-adoption.png

Page 27: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C CCultural Change

• Hofstede (1980) argued that the cultural differences between nationalities were evidentwhen employees of the same organisation were spread over many countries.

• Stuttard (2000) concluded that “one common mistake is that, foreign managers fail torealize how pervasive it is”.

• Pitta et.al, (1999); managers’ business behaviour is directly related to the country’sculture.

• Personal and Organisaitonal cultures need to be integrated especially when working inlti ti l i ti j tmultinational organisations or projects.

• Cultural conflict is in a sense a physiological dimension which stakeholders need totake into serious consideration.

• Dealing with culture has the difficulty to define it universally.

Page 28: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

SJohnson and Scholes’s cultural web

Figure 8: Cultural web interrelated elements

When aligning an organisation’s culture with the respective strategy; should be taken into consideration so as to provide support in the planning of business change.

g

Source: Business Analysis Techniques, p. 233

Page 29: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C lt l I fl ( )Cultural Influence(s)

Leadership The culture among stakeholders can foster trust

11A project is more successful if it fitswith the services' managerpersonality.

Leadership The culture among stakeholders can foster trust,teamwork, and open communication in way thatoverall services delivery success can bepromoted.

ff

The language needs to beunderstandable by all stakeholders.

CommunicationPeople have different skills, attitudes andexperiences, in effect they also have differentviews of what is priority or important.

Culture can impact the speed of working, the2

Culture may be seen as the “glue”

Successful Services Delivery

Culture can impact the speed of working, thedecision-making process, and the impulse to actwithout appropriate planning. This may lead toconflict and stress in some organisations, therebyaffecting the performance of the servicesdelivery33

Culture may be seen as the gluebetween people and processes.

delivery.

Th i i ( h t th i ti i t d t b i th f t ) i flThe vision (what the organisation intends to become in the future) can influenceculture and strategic planning.

Page 30: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

CChange Theories at a glance

Table 1: Theories Comparison

Lewin(1951)

Lippitt et. al., (1958)

Bullock & Baten(1985)

Bridges(1991)

Rogers (2003)

(1985)

Unfreezing

Phase1:Diagnose the problemPhase2: Assess motivation and change capacityPh 3 A h t’

Exploration Ending AwarenessPhase3:Assess change agent’s motivation and resources

Moving

Phase4:Progressive change objective selection

Planning NeutralInterest

EvaluationMovingPhase5: Choice of appropriate role of the change agent

Planning Neutral EvaluationTrial

RefreezingPhase7: Terminate the helping relationship

Action New Beginning

AdoptionIntegrationrelationship BeginningIntegration

Page 31: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

OAgenda: Risk Management Overview

Project jManagement

Risk Change ManagementManagement

Page 32: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Ri k D fi iti i t f P j t M tRisk Definitions in terms of Project Management -PMBOK

• An uncertain event or condition that, if it occurs, has a positive or negative effect onone of more project objectives (PMBOK, p.558).

• The objectives of project risk management are to increase the likelihood and impactof positive events, and decrease the likelihood of negative events in the project.(PMBOK, 308).

• Project risk has its origins in the uncertainty present in all projects. Organisationsperceive risk as the effect of uncertainty on projects and organisational objectives.Positive and negative risks are named opportunities or threats respectively. (PMBOK.g pp p y (311).

Page 33: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Ri k D fi iti i t f P j t M tRisk Definitions in terms of Project Management –PRINCE2

• An uncertain event or set of events that, should it occur, will have an effect on theachievement of objectives. A risk is measured by a combination of the probability of aperceived threat or opportunity occurring and the magnitude of its impact onperceived threat or opportunity occurring, and the magnitude of its impact onobjectives. (PRINCE2, p. 311).

• Risk taking in project is inevitable since projects are enablers of change and changeintroduces uncertainty, hence risk. (PRINCE2, p. 78).

• The purpose of engaging risk strategy is to develop the ways risk management will beembedded in the project management activities.embedded in the project management activities.

Page 34: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

C C fRisk Categories Classification

M k ti

Depending on a plethora of classifications, risk factors can be categorised butnot limited to as:

• Technical• Quality • Performance • Change

• Marketing• Legal• Environmental• Scope• Change

• Organisational• External / Internal• Business

Scope• Quality• Schedule• Process

• Weather• Cultural• Project Management

• Management• Requirements • Security

Page 35: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Project Management and Risk Management

Figure 9: Risk Profile

Risks have a tendency to grow exponentially with time if left unmanaged.

Drake (2005a, 2005b), cited via Service Transition v.3, p.143

Page 36: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Project Management and Risk Management

Figure 10: Impact of variables based on project time.

The variables (project life cycle) have progressively lower impact as decisions arebeing made.

PMBOK (2013), p.39

Page 37: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

CPRINCE2 and Risk

The identification of risks, identifies the potential risks or opportunities; once identifiedthey are written in the risk log, whereas evaluation of risks assesses the probability and the impact of risks. PRINCE2 (2005, p.255) identifies impacts based on the following l telements:

• Time• CostCost• Quality• Scope• Benefit• People/Resources

Page 38: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

CPRINCE2 Risk Responses

• Avoid (threat)• Reduce (threat)• Fallback (threat) Threat: an uncertain event that could have a negative• Transfer (threat)• Accept (threat)• Share (threat or opportunity)

E l it ( t it )

impact on objectives.

Opportunity: an uncertain event that could have afavourable impact on objectives.

• Exploit (opportunity)• Enhance (opportunity)• Reject (opportunity)

OGC, PRINCE2 Guide, 2009, p. 77

- Overall, risk management has to take the form of a systematic process and asPRINCE2 explains, it should not be based on chance.

OGC, PRINCE2 Guide, 2009, p. 85

Page 39: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

O SPMBOK Risk Strategies

Strategies for Negative Risks or threats:Strategies for Negative Risks or threats:

• Avoid • Transfer • Mitigate• Accept

St t i f P iti Ri k t itiStrategies for Positive Risks or opportunities:

• Exploit • EnhanceEnhance • Share • Accept

Overall, risk management has to take the form of a systematic process and asPRINCE2 explains, it should not be based on chance.

Page 40: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

CFrameworks Risk Accommodation Comparison

Contemporary Project Management Frameworks Risk Accommodation

OGC PRINCE2 (2005) OGC PRINCE2 (2009) PMI PMBOK (2013)

Identify (context Plan Risk Select Risk Risk Identification

y (

and risks) Management Characteristics

Risk Monitor and Assess

Qualitative

Risk AnalysisCollect and

CommunicateEvaluation

Report

Risks

(Estimation and

Evaluation)

y

Quantitative

Risk Analysis

Analyse Data

Prioritise Risks

Plan and Plan Risk Categorise Risk Risk Response

RespondPlan

Response

g

Causes

Risk Selection ImplementMonitor and

Control Risks

Document

Results

Table 2: PRINCE2 and PMBOK Risk Accommodation Comparison

Page 41: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Agenda: Risk Management Tools and Techniques

Project jManagement

RiskManagementChange 

M Tools  & Techniques

Management

Page 42: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

fRisk Tools Facilitation - Identification

• Risks can be found everywhere; the difficult part is not only to identify them but also to control them.

• The primary goal of ‘Risks Identification’ is to recognize the threats and opportunities• The primary goal of Risks Identification is to recognize the threats and opportunities may affect the project’s objectives and in effect deliverables.

- SWOT analysis- Change/Risk surveys- Delphi techniqueRACI diagrams-RACI diagrams

-PESTEL Analysis-Interviews- PERTRisk Breakdown Structure (RBS)-Risk Breakdown Structure (RBS)

-Brainstorming sessions

Page 43: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Responsibility Assignment Matrix (RACI)

• Used to define Roles and Responsibilities in project tasks or deliverables

• Useful in clarifying roles and responsibilities in cross-functional/departmental projects and processesand processes.

http://www.pmhut.com/wp-content/uploads/2008/10/raci-matrix.jpg

Figure 11: RACI Matrix

Page 44: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Project Evaluation and Review Technique (PERT)

• In Risk analysis, can help to identify risks, verify or develop estimates, or evaluate risk against known or predicted risk referents (probabilistic tool).

• Each task has a certain amount of time associated with its duration• Each task has a certain amount of time associated with its duration.

Charette, p.202 Figure 12: PERT Network

Page 45: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Risk Breakdown Structure (RBS)

• A hierarchical risks representation, starting from higher levels and going down to lower level risks. (Similar to the organisation of the Work Breakdown Structure (WBS)).

http://www.projectrisk.com/risk_register_development.htmlFigure 13: RBS Structure

Page 46: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Risk Tools Facilitation - Assessment

• Change, if uncontrolled can be associated with activities of uncertain outcome(s) which would be deemed unwanted deliverables from project stakeholders.

• When change management and risk management are brought together risk aftermath• When change management and risk management are brought together, risk aftermath can be reduced.

- Simulations- Monte Carlo Analysis- CPM (Critical Path Method)

AHP (Analytical Hierarchy Process)- AHP (Analytical Hierarchy Process)- Risk Maps- Probability Trees- Fault Tree Analysis

Page 47: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Analytical Hierarchy Process (AHP)

• Analytic Hierarchy Process (AHP) is an established and structured hierarchical• Analytic Hierarchy Process (AHP) is an established and structured hierarchical technique for making complex decisions that helps users sort out the "best" decision for their challenge.

• Sets priorities being a systematic method for comparing a list of objectives leading to a• Sets priorities being a systematic method for comparing a list of objectives leading to a decision; utilising pairwise comparisons.

Figure 14: AHP Technique

Page 48: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Risk Map

Si l lit ti i k ti ti th b bilit f i k i l ifi d l (L) di• Simple qualitative risk estimation; the probability of risk is classified as low (L), medium (M), high (H).

• Combined classifications may also apply.

Very Low Low Medium High Very High

Very High H H VH VH VH

High M H H VH VH

Medium L M H VH VH

Low L L M H VHLow

Very Low L L M H H

Figure 15: Risk Map Sample

Page 49: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

/Probability / Impact Map

• Probability scales can be regarded as measures of probability derived from percentages.

Risk = Probability x Impact

http://microlps.freewebsites.com/PMP/A_Guide_to_the_Project_Management_Body_of_Knowledge_PMBOKGuide/LiB0065.html

Figure 16: Probability Impact Map

Page 50: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Probability Tree

• Probability tree generate and list all the events under one chart• Probability tree generate and list all the events under one chart.

• The probabilities for each event must result to total of 1.0000.

http:www.zdnetasia.comsee-effect-of-dependent-risk-by-using-decision-tree-39420897.htm

Figure 17: Probability Tree

Page 51: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

( )Fault Tree Analysis (FTA)

• Top down deductive reasoning failure analysis• Top down, deductive reasoning failure analysis.

• Uses Boolean logic to analyze and combine a series of lower-level events; Mostly used by engineers.

http://www.edrawsoft.com/fault-tree-diagram-software.php

Figure 18: Fault Tree Analysis

Page 52: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

& CRisk Tools Facilitation – Monitor & Control

The Risk Monitoring & Control process mainly intends to identify, analyse, plan and tracknew risks, constant and periodic review of initially identified risks, monitor and controlexisting or residual risks. Moreover the process is concerned with the review of properexecution of risk responses while evaluating their overall effectivenessexecution of risk responses while evaluating their overall effectiveness.

Risk Reassessment- Risk Reassessment- Meetings ( Consultation, status update)- Variance Analysis-Trend AnalysisRisk Auditing-Risk Auditing

Page 53: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

Professional's 2020 Core Competencies Integration

Change Manager

Project Manager

Negotiations NaturalNegotiations Manager

Natural Leader2020

Risk Manager

Conflict Manager

Figure 19: Integrated Competencies of the Professional 2020

Page 54: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

S

Today’s competitive business environment requires professionals to develop integrated skills on CM, PM and RM.

Summary

1111

22 Project management and change management may seem as separate, but they are integrated in practice

33

44Since change and risks cannot be avoided, services stakeholders have to take into account the levels of risk theycan tolerate.

Project risk management is essential for successful project management since project changes have an impact onprojects success or failure.Project risk management is essential for successful project management since project changes have an impact onprojects success or failure.

55Every project is subject to changes; one of the aims of structured project management methodologies is to adapt tochanges and in effect minimise risk and finally ensure project success

Change management integrated within project management may be proven a powerful coalition to judge whether theoutcome (project changes leading to successful result) is sensitive to slight or drastic changes in opinion andjudgements either in individual or organisational level

Change management integrated within project management may be proven a powerful coalition to judge whether theoutcome (project changes leading to successful result) is sensitive to slight or drastic changes in opinion andjudgements either in individual or organisational level

Organisations have precise missions and objectives that take the challenge to accomplish taking the least possiblerisks..

Organisations have precise missions and objectives that take the challenge to accomplish taking the least possiblerisks..

66

77judgements either in individual or organisational level.judgements either in individual or organisational level.

Page 55: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

B ildi th P f i l f 2020 A A h t

“I do not believe you can do today’s job with yesterday’s methods and be in business tomorrow”

Nelson Jackson

Building the Professional of 2020: An Approach to Business Change Process Integration

Thank You!Questions?

[email protected]

[email protected]

Page 56: Building the Professional of 2020: An Approach to Business Change Process Integration (Business Change  Modelling)

fReferences

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