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Project & Change Management – time for a rethink Neil White APM – Enabling Change SIG Future Change Pillar Lead Sheffield Business School 1st July 2014

Project & Change Management - time for a rethink

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Introduction The presentation ( http://www.apm.org.uk/group/enabling-change-sig ) opened by describing the nature and size of the challenge that Organisational Change represents in our rapidly evolving operating environments. The fact that many varying business functions and roles are involved in transformational change and that this is often underestimated when ‘sizing’ a change. Unsuccessful change is a costly waste of resource with originating change drivers usually being left un-reconciled. Apart from the financial cost, change failure has a detrimental effect on those associated or impacted by the changes and leaves them less inclined to attempt to succeed with future change. Enabling successful outcomes It was posited that an improvement in the definition and specification of related organisational management disciplines would make the challenge of organisational change easier. Well defined boundaries being seen as necessary to provide a clear view of what was expected from those operating in each discipline; the degree and quality of relative specification helping to inform the nature and quality of collaboration. It was stressed that the size and composition of each discipline had to be an appropriate and proportionate response to the size and nature of the organisation. The relative positioning of the Organisational Change, Project/Programme & Portfolio, Business Management and Benefits Realisation Management disciplines was presented. To illustrate how the uncertainty regarding functional boundaries may have evolved, several formal definitions of Programme Management were described. In particular it was asserted that clearer delineation between the programme and business change management functions was required. Benefits Realisation The fact that all change effort should be focussed on the realisation of benefits, in line with the organisations development strategy, and not simply the successful ‘delivery’ of new enablers such as IT, structural, management, process or technology etc was described. The Benefits Realisation Management discipline was briefly introduced and the APMG Benefits Management Model was described as a good approach to establishing and maintaining such a capability. The fact that benefits are only actually realised once the required change ‘enablers’ are transitioned, integrated and exploited within the business functions themselves was used to emphasise the essential nature of the Project and Programme Management disciplines. The interdependent and essential relationship between Change and Benefits Management was described and how the aims of each were mutually beneficial in achieving the organisation’s change goals was emphasised. Finally, it was emphasised that an effective BRM implementation depended on a minimum level of project and programme management capability. The fact that it also represented a significant transformational and cultural change in its own right was often not c

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Page 1: Project & Change Management - time for a rethink

Project & Change Management– time for a rethink

Neil WhiteAPM – Enabling Change SIGFuture Change Pillar Lead

Sheffield Business School1st July 2014

Page 2: Project & Change Management - time for a rethink

Related Management Disciplines

Benefits Realisation Management

Current understanding

BRM & Change Management

Agenda

IntroductionIntroduction

Page 3: Project & Change Management - time for a rethink

Neil White Change Management Specialist

20+ yrs RAF (Engineering)Change Management for last 20yrsBusiness Improvement (SEI CMMI) - Assessor & Assessment Team LeadTransformation Change ManagementBenefits & Business ChangeMSc Change Management

‘an ardent believer that the ability to change is more important than the required changes themselves’

Association for Project ManagementEnabling Change SIG – Change Futures Pillar leadBenefits Management SIG Committee

Page 4: Project & Change Management - time for a rethink

The SIG’s mission is to ‘improve the change capability of organisations,

teams and individuals’

Enabling Change SIG

Page 5: Project & Change Management - time for a rethink

SIG organised around four ‘Pillars’:Change FuturesChange Capabilities & MethodsMembership & EventsIndustry-focused Change Liaison Groups

Enabling Change SIG – Structure

Focused onThought LeadershipCommunity engagement

Page 6: Project & Change Management - time for a rethink

Related Management Disciplines

Benefits Realisation Management

Current understanding

BRM & Change Management

Introduction

Page 7: Project & Change Management - time for a rethink

The organisational change landscape

Business Functions

‘Users’Managers

CustomersSuppliers

Misc external Stakeholders

Challenges

Threats

Opportunities

Shareholders

BusinessOperations

R&DBAU

PESTLE

Board• CEO• CFO• COO

And others....

Page 8: Project & Change Management - time for a rethink

Change Challenge - Organisations

Page 9: Project & Change Management - time for a rethink

Financial Management Factor

£+

t£-

Change Benefits

Waste!

Page 10: Project & Change Management - time for a rethink

We know much about what can and does go wrong – there are few surprises left!

The way it is

If the statistics regarding change failure are correct something has to change......

Despite the strong growth in the Change Management industry the failure rates

appear to remain persistently high

Page 11: Project & Change Management - time for a rethink

Related Management Disciplines

Benefits Realisation Management

Current understanding

BRM & Change Management

Introduction

Page 12: Project & Change Management - time for a rethink

Four key disciplines (capabilities)

Organisational ChangeManagement

Business ChangeManagement

Benefits Realisation Management

Project, Programme & Portfolio Management

Page 13: Project & Change Management - time for a rethink

A high degree of uncertainty exists around who is accountable and responsible for what

with respect to organisational change

Need for boundaries

The appropriate management disciplines must be clearly identified and ‘bounded’

This provides a basis for organisational change capability development

Page 14: Project & Change Management - time for a rethink

Programme Management Definition [1]

A group of interrelated projects and other activities managed in a coordinated

wayto realize benefits contributing towards

the strategic objectives”

ISO Standard on Programme Management

Page 15: Project & Change Management - time for a rethink

Programme Management Definition [2]

A temporary, flexible organization, created to coordinate, direct and oversee

the implementation of a set of related projects and activities in order to deliver

outcomes and benefits related tothe organization’s strategic objectives.

Managing Successful Programmes [2011]

Page 16: Project & Change Management - time for a rethink

Programme Management Definition [3]

“The application of knowledge, skills, tools and techniques to a program to meet the programme requirements

and to obtain benefits and control not obtained by managing projects

independently”

PMI Lexicon of Project Management terms. V.2 (2012)

Page 17: Project & Change Management - time for a rethink

Programme Management Definition [4]

“A group of related projects and change management activities that together

achieve beneficial change for an organisation”

Definition: APM BoK, 6th edition

Page 18: Project & Change Management - time for a rethink

APM’s Revised Competency Framework

26 competency areas in four domainsGovernancePlanning and controlManaging othersProfessionalism

It does not incorporate

Benefits Realisation ManagementChange Management

It incorporates: Proj, Prog & Portfolio Management

Page 19: Project & Change Management - time for a rethink

Projects [APM, BoK6]

Project, Programme, Portfolio Relationship

Programmes [MSP, 2011]

Business Change Managers responsible

for benefits realisation

Organisational Strategy

Portfolio

Page 20: Project & Change Management - time for a rethink

Suggested positioning of disciplines

This order of precedence provides assures that an organisation’s investment in change is aligned with its development strategy

Page 21: Project & Change Management - time for a rethink

Related Management Disciplines

Benefits Realisation Management

Current understanding

BRM & Change Management

Introduction

Page 22: Project & Change Management - time for a rethink

Confidence

Method & process

Accurate InformationInvolvement

Just Cause

Respect

?

What people ‘need’ to know but often don’t

?Resources

Page 23: Project & Change Management - time for a rethink

Benefits Realisation Management enables an end-to-end context for change to be established & maintained

Benefits Realisation ManagementOrganisational Challenges &

Vision

The Benefits Realisation ‘factor’

Business Change Benefits

Page 25: Project & Change Management - time for a rethink

BenefitsManagement

Practices

Benefits Management – 5 PracticesIdentify & Quantify

Value & Appraise

Plan

Realize

ReviewBenefitsManagement

Practices

Page 26: Project & Change Management - time for a rethink

Align benefits with strategy

Start with the end in mind

Utilize successful delivery methods

Integrate benefits with performance management

Manage Benefits from a portfolio perspective

Apply effective governance

Develop a value culture

Benefits Management - 7 Principles

Page 27: Project & Change Management - time for a rethink

BRM Process OverviewAssures that an organisation’s investment in change is wholly beneficial and aligned to its business development strategy

Vision

Strategic Objectives

Functional Objectives

ManageBenefits

Changes

Page 28: Project & Change Management - time for a rethink

Related Management Disciplines

Benefits Realisation Management

Current understanding

BRM & Change Management

Introduction

Page 29: Project & Change Management - time for a rethink

Benefits Realisation and Stakeholders

Page 30: Project & Change Management - time for a rethink

The sting in the tail!

Capability factor

Culture factor

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This suite of integrated management capabilities is most effective with BRM at its heart

Summary

There is a natural and symbiotic relationship between BRM and Change Management

Need for boundaries between key organisational management disciplines

Significant challenge to engender the required cultural changes and minimum levels of capability maturity

The Reality & consequences of change & change failure

Page 32: Project & Change Management - time for a rethink

Project & Change Management– time for a rethink

Neil WhiteAPM – Enabling Change SIGFuture Change Pillar LeadMob: [email protected]

Sheffield Business School1st July 2014

Questions?

uk.linkedin.com/in/changevista/