Applying Change Management Principles in the Project Management Community Kristen Springer Greg Pogarch

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
explained
 GMAC and Change
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Approach
Tool Demo
 Q&A
What we hope you will take away…
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A deeper understanding of organizational change
management
The ability to describe why effective OCM is
important
Insight into the benefits that effective OCM has on a
project and for the individuals leading a project
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:
“The only constant is change...”
- Isaac Asimov
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 don’t like
change.
What is Organizational Change Management?
Organizational Change Management (OCM) is the discipline or
practice of helping people adopt or accept change.
OCM helps transition individuals, teams, and organizations from
a current state to a desired future state.
What is Organizational Change Management?
(continued...)
OCM includes both the processes and tools for managing the
people side of the change.
Communication
Training
Process
Tools
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 Kotter’s Leading Change
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1995)
Formula for Change (Richard Beckhard and David Gleicher)
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
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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
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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 project’s goals and
objectives.
Enables timely
an engaged
project implementation with
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.
QxA=E
Quality X
Acceptance =
Effective
Results
The Equation:
QxA=E
This is what you will see if you
spend nominal effort on both the Q
and the A
This is what you can expect to see
if you put a lot of effort into the Q
but not the A
This is what you can expect to see if
you spend equal amounts of effort on
both the Q and the A
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.
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Until 2006, GMAC was a wholly owned subsidiary of GM.
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Nov. 30, 2006 -- GM sold a 51 percent stake in the company to a group of investors
led by Cerberus Capital Management, L.P.
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Dec. 24, 2008 – Federal Reserve Board approves GMAC as a bank holding company
under the Bank Holding Company Act.
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April 2009 -- GMAC entered into an agreement with Chrysler to provide auto finance
products and services to Chrysler dealers and customers.
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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.
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Nov 2009 – GMAC’s 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
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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
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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 Community
Stakeholder
Management
Change
Adoption
QxA=E
Quality X
Acceptance =
Effective
Results
Stakeholder Management supports quality
project execution and prepares for change
QxA=E
Stakeholder Management is the process by which a project’s 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.
Stakeholder Management Workbook
helps prioritize, plan, monitor
1. Stakeholder identification
10
• Sr. Executive
• Business Lead
9
2.
Stakeholder analysis
8
Keep Satisfied
Manage
Closely
7
(key player)
• Business Team
Director
6
3. Stakeholder
communication
plans/routines
Influence
5
• Project Team
4
3
2
Keep Informed
Monitor
• Super Users
(minimum effort)
• Department Employees
1
1
2
3
4
5
Interest
6
7
8
9 10
Stakeholder Management Workbook
 Tool Demo
Disciplined Stakeholder Management
benefits the project team
 Create a shared vision of the project’s
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desired results
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 support
Organizational commitment to support
the necessary activities to adopt the
change
Address sensitive issues such as
leadership resistance
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
QxA=E
Change Adoption Workbook helps plan appropriate
communication, training and organization
transformation tactics
1.
Change definition
2.
Change impact analysis (people,
process, policy, technology)
3.
Change plan (includes
organizational change,
communication and training
strategy)
Communication
Training
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 resources
 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 isn’t
managed
 Changes are not defined and not well communicated
 The case for change and the benefits of the change are not well
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understood
Fear, anxiety, and resistance prevent acceptance
Enough people don’t get on board
People don’t understand how they need to change behavior
People don’t have confidence in the change and complacency
rules
New systems, tools, processes, and policies aren’t 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?