pem zhipeng xie engg 5812 change management presentation

INTEGRATING CHANGE MANAGEMENT AND

PROJECT MANAGEMENT

Change Management as Part of Project Management

University of Sydney

Pem Zhipeng Xie

• Introduction of Change Management and Project Management

• The Benefits and The Drawbacks

• How to integrate change management into project management

• Case Study

• Conclusion

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2

3

4

5

CONTENT

1. Introduction of Change Management and Project Management

The application of a set of tools, processes, skills

and principles for managing the people side of

change.

The application of 10 knowledge areas, skills, tools,

and techniques on project activities to meet the

project requirements.

PROJECT MANAGEMENT CHANGE MANAGEMENT

PHASE

DIFFERENCE

Effecting change through a disciplined approach to

identify the scope, tasks, activities, and deliverables

to achieve the new “state”.

Achieving change through a disciplined approach to

empower people to change behavior and process to

success in the new “state”.

Lifecycle-PRINCE2

1. Starting up a project

2. Initiating a project

3. Directing a project

4. Controlling a stage

5. Managing stage boundaries

6. Managing product delivery

7. Closing a project

(Bentley, 2010 )

Lifecycle-PMBoK

1. Initiation

2. Planning

3. Execution

4. Monitoring & Controlling

5. Close

(Project Management Institute, 2013)

PROSCI 3-Phase approach

1. Preparing for change

2. Managing change

3. Reinforcing change

(Creasey & Hiatt, 2016)

ADKAR Methodology

1. Business need

2. Conceptual Design

3. Implementation

4. Post Implementation

Both managements aim to increase the likelihood that the projects deliver the intended

results and outcomes successfully.

PROJECT MANAGEMENT CHANGE MANAGEMENT

COMPETENCY

SimilarLeadership Leadership

Team development/team selection Team development

Stakeholder management Stakeholder management

Communication Communication

Decision-making and problem-solving Decision-making and problem-solving

Planning: cost, time, risk, quality, scope Planning/Project management skills

Different

*Governance

*Contract management

*Monitoring and controlling: cost, time, risk, quality, scope

*Organization structure

*Project definition

*Administration, project reporting and Documentation

*Transition management

*Change control

*Closing

*Cross cultural skills

*Analysis and assessment

*Creativity and challenge

*Initiative and self-management

*Coaching skills

*Facilitation skills

*Presentation skills

*Process design

*Learning and development

*Action orientation

*Strategic thinking

*Influencing skills (Crawford & Nahmias, 2010)

Related



• How to Integrate Change Management Into Project Management

• Case Study

• Conclusion

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5

CONTENT

BENEFITS DRAWBACKS

1. Help the organization to achieve expected benefits

2. Clarify and control the life cycle of changes, improve the

current status to a desired future status

3. Minimize change disruption, maximize the benefits and

maintain system integrity.

4. Forecast potential changes, identify already occurred

changes, develop preventive strategies and coordinate

all changes.

5. Raise project efficiency, adjust change perception,

maintain a positive attitude toward change, increase

employees’ willingness to acquire new skills and

knowledge.

1. The unclear and improper roles and tasks allocation

might lead to the confusion because the integration is

constructed on the overlapping and complementary

competencies from two fields.

2. Destroy the projects if there is no proper process of

change management.

3. Have negative effect, lead to strategy fail, bring down

company.

2. Benefits and Drawbacks of Integrating CM and PM

(Connor, 2011)

（Kanaane，Akabane, Peterossi& Endler，2015)

(Linton, 2016)


• The Benefits and Drawbacks


• Case Study

• Conclusion

1

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4

5

CONTENT

Dimensions Descriptions Suggest approaches

People

It requires clear definition of the roles,

responsibilities and relationships for the PM

and CM resources

• Evaluate the change, organization and sufficient sponsorship.

• Decide the greatest framework for the relationship between CM

and PM resources.

• Clearly define the role, responsibility and relationship for the PM

and CM resources.

Process

It requires assembling activities between PM

and CM during the project lifecycle. It aligns

the activities of the technical with people side

angles.

• Creating the CM approach with precise, process- oriented and

milestone- driven makes the integration easier.

• Develop the concrete deliverables.

• Actively identify the critical activities throughout the project

lifecycle.

Tools

It requires identifications of a specific tool

plan involving both technical and people

perspectives. The two common tools are the

communication plan and risk assessment.

• Identify particular tools for integration.

• Clarify the ownership of the tool and maintenance.

Methodologies

It develops a common and standard method

to integrate the organization’s PM and CM

methodologies.

• Choose a common organizational standard change management

methodology.

• Consider all potential risks into the integration.

Results and outcomes

It focuses on achieving the same objective

and the definition of the success for both the

CM and PM.

• Clearly define the objective and success criteria by both the PM

and CM team.

(PROSCI, 2016)

3.1 Integrate the change management and project management from five dimensions

(Crawford & Nahmias, 2010)

3.2 Matrix for Integrating Change Management and Project Management

Decision matrix for integrating change

management and project management

(Base on supportive culture, leadership

and degree of behavioral change required )

(PROSCI, 2016)

SUCCESS Improve leadership in CM

Match scope timely

Comprehend and familiar with

integration process

Increase awareness and reality of CM in

project team

Clarify role and accountability

between CM and PM

3.3 Five Factors For Integrating CM and PM Successfully




• Case Study

• Conclusion

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5

CONTENT

Enterprise resource planning (ERP) is system used by organizations to manage all the

business functions by integrating the comprehensive software. (AL-NAFJAN & AL-MUDIMIGH, 2011)

4. Case Study

Case Background

ERP

Include mature business applications and tools for:

• Financial and cost accounting

(Accounting/Finance)

• Sales and distribution (Sales and Distribution)

• Materials management (Inventory management)

• Human resource (Human resources)

• Production planning and computer integrated

manufacturing (Manufacturing)

• Supply chain (Purchasing)

• Customer information (Customer relationship

management)(AL-NAFJAN & AL-MUDIMIGH, 2011)

(Paroda, 2016)

Change Management in Phase 1 and Phase 2

Phase One Phase Two

(Lee &Lee, 2004)Valley of Despair

Phase 1: Change management for ERP implementation

The ERP implementation could be completed by investing high costs and great technical effort, however, it

leads to a radical change of technical infrastructures, business processes, organizational structure, roles and

skills of organizational members and knowledge management activities (AL-NAFJAN & AL-MUDIMIGH, 2011).

Therefore, the implementation of ERP needs to be completed by a project team and a change management

team.

• The organization needs to not only change the IT system but also accustom

their employees to the new business processes and new organizational

structure.

• Employees do not fully understand of the new ERP system and ignore the

benefits of the ERP system.

• Employees lack a knowledge of the impact caused by the ERP implementation

and the skills of using the new system.

organization

employees

Phase 1: Change management for ERP implementation

Problems Competency from CM

Employee resisting caused by the lack of skills in using the

system• Communicating and educating employees to deliver the

necessity and benefits before the implementation by

presentations and other methods.

• Offer trainings for employees for using the new systems,

• Offer incentives to fast learners of the system and motivate other

employees within the organization.

Before implementing of the new ERP system, employees

can not understand the benefits of new system and worry

about the high cost and low efficiency on learning ERP

system.

The middle and upper managements feel threatened about

their positions because ERP caused the change on

organizational structures and organizational operation.

Old employees within some departments worry about loss

advantages of considerable experience in using the

traditional organizational system.

• Train those employees by an extending and tailored way to

reduce uncertainty and risk during adopting the new systems.

• Building an individual’s knowledge and information about

innovative systems can effectively reduce uncertainty and

degrees of perceived risk during adopting an innovation.

• Build a trusted-relationship with these employees by confirming

the value of their experiences and skill, provide the sense of job

security, listen to their suggestions and give feedbacks to their

concerns and worries.

Resistance behaviors:

• Focusing on problems and inadequacies in the new one

• Consistently comparing the old with the new system

• Presenting intolerance to new system’s bugs and errors

• Perceiving small mistakes as a serious issues

Some employees’ resistance threaten the process of ERP • Replace these employees.

(AL-NAFJAN & AL-MUDIMIGH, 2011)

• In order to make sure the feasibility of the new business processes or

system, the organizations need to run the trial of the information flow.

• Some organizations are still not sure about the amount of change needed to

achieve the high level performance.

• Employees are allocated with new jobs or additional works and

responsibilities.

Phase 2: Change management for the performance improvement after implementation

Researches revealed that the phase 2 change management is more important than the implementation

of the ERP system, in other words, the final result of the new system depends on the change

management majorly (Lee & Lee, 2004).

organization

employees

Phase 2: Change management for the performance improvement after ERP implementation

Problems Competency from CM Note

It is hard to manage IT-enabled change.

• The socio-technical system (STS) approach could

be applied to enhance the acceptance of new

working environment (Lee & Lee, 2004).

STS: The approach combines the sub-

system (technology, people,

management, and structure) with the

interrelated systems for the dramatically

change organization structure and

works (Lee & Lee, 2004).

Staffs are resistant to IS innovations.

• Firms and organization should focus on the root

cause of the resistance, especially, the human

perspective.

Staffs refuse to change because some

individuals feel that they are threatened

by the change.

• Balance the force between acceptance and

resistance of changes (Lee & Lee, 2004).

Employees hold the negative attitude

toward the new process and

responsibilities brought by the change.

• Organizations or firms need to create the suitable

and pleasant working environment to increase the

level of OCB.

The employees with high level of

Organizational Citizenship behaviours

(OCB) would be able to embrace the

new surroundings.

Employees lack the IT capability.• The proper training and workshop for users and

the frequent communication between IT experts.The lack of user IT capability lead to the

failure of the system.

High level IT infrastructures are not

organized well.

• The organization could hire the Knowledgeable IS

specialist to guarantee that each technology is

applied properly in the right place.

High level IT assets are composed by

three elements (Lee & Lee, 2004).

*Highly talented IT human asset

*Reusable technology asset

*Strong relationship (business

management and IT)




• Case Study

• Conclusion

1

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5

CONTENT

• It’s vital to understand the different roles and competencies of change management

and project management before integration (Linton, 2016) and the structure and level of

integration depends on the type of project. In other words, there is no model suitable

for all cases.

• The proper cooperation of the competencies from the change management and

project management improves the alignment to the project or the organization. (Linton,

2016).

• The integration makes the project team able to reach the high level performance

mainly by clarifying the role complexity (Linton, 2016) and enhancing the level of

Organizational Citizenship behaviours. (Lee & Lee, 2004)

• The combination of technical perspective, project management, and people

management aspect, change management, makes the project able to face the drastic

environment. (Lee &Lee, 2004)

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5. Conclusion

3

5. ConclusionProject Management

(Project Manager)Change Management

(Change Manager)

from similar part

Communication• Presentation skills• Reporting the progress to sponsors

• Managing the requirements and expectation from stakeholders

Stakeholder• Managing the project team to reach the goals• Stakeholder management

• Stakeholder management

Stage • Planning • Change management planning

from different part

• Managing resources, people, budget, schedule

and risk

• Team development

• System assessment

• Project definition

• Issues resolution

• Vendor management

• Strategic decision

• Preparation of work environment

• Project closing from project to operational stage

• Changing behaviours and organizational

culture to achieve the goals

• Preparation of users

• Organizational structure

• Political diffusion

• Impact analysis

• Selling the change

• Champion schemes

• Involvement in process analysis work

• Training and education to affected staff

(Crawford & Nahmias, 2010)

Reference

• AL-NAFJAN, A. N., & AL-MUDIMIGH, A. S. (2011). THE IMPACT OF CHANGE MANAGEMENT IN ERP SYSTEM: A CASE STUDY OF

MADAR.Journal of Theoretical & Applied Information Technology, 23(2).

• Bentley, C. (2010). Prince2: a practical handbook. Routledge.

• Connor, R. (2011). Changing change management. Strategic HR Review, 10(5), 35. doi:10.1108/shr.2011.37210eaa.002

• Crawford, L. & Nahmias, A. (2010). Competencies for managing change. International Journal Of Project Management, 28(4), 405-412.

http://dx.doi.org/10.1016/j.ijproman.2010.01.015

• Creasey, T., & Fiscus, B. (2016). Best practices in change management: Prosci benchmarking report: 411 organizations share lessons and best

practices in change management. Prosci.

• Kanaane, R., Akabane, G., Peterossi, H., & Endler, D. C. N. (2015). Organizational Change Management in a Strategic Perspective. American

Journal of Management, 15(2), 88.

• Lee, S., & Lee, H. (2004). The importance of change management after ERP implementation: an information capability perspective. ICIS 2004

Proceedings, 76.

• Linton, T. (2016). Change Mangement. Lecture, University of Sydney.

• Paroda, R. (2016). Battling the Mandate: ERP & EAM Integration Styles | Blue Mountain Quality Resources. Coolblue.com. Retrieve 7 September

2016, from: https://www.coolblue.com/blog/industry-insights/battling-the-mandate-erp-eam-integration-styles/

• Project Management Institute (2013). A guide to the Project Management Body of Knowledge (PMBOK guide), 5th edn, Project Management

Institute, Newtown Square, Pa.

• Prosci (2016). Dimensions of integrating change management and project management. Retrieved September 06, 2016, from

https://www.prosci.com/change-management/thought-leadership-library/dimensions-of-integrating-change-management-and-project-management

• Prosci (2016). SUCCESS FACTORS FOR INTEGRATING CM AND PM. Retrieve September 6, 2016, from https://www.prosci.com/change-

management/thought-leadership-library/success-factors-for-integrating-change-and-project-management

INTEGRATING CHANGE MANAGEMENT AND PROJECT MANAGEMENT

Change Management as Part of Project Management

THANK YOU

Pem Zhipeng Xie

pem zhipeng xie engg 5812 change management presentation

Leadership & Management