Projects of ChangeChallenges of managing organizational changes

Peter PfeifferAugust 2009

Presentation Content

Organizations change …

All the time, each and every day!

Some because they want to,

Others because they need to,

Some evolve and develop,

Some organizations simply disappear

What doesorganizational change

has to do withprojects ?

Some projects are proactivelyturned towards organizational change.

Others are reactively related to change.

The vast majority of projects is related to organizational

change

… but ¾ of all organizational change projects fail

Why do so many change projects fail?

People’s resistance

inadequate PM approach

Confusion of change and product

Resistance,

Doubts,

Fear

Forms of Resistance

Active / passive

Open / covered

Individual / group

Aggressive / timid

biological

sociological

psychological

Perspectives of Resistance

Resistance and Adaptation

necessity of adaptation to environment

Changes in the environment

changes in living beings

The change comes from outside: the reference is the environment.

Resistance and Adaptation

Internal adjustments until self-conservation is reestablished

Changes in the environment

congruency with the changes in the

environmentSelf-conservation

The change comes from inside: the reference is the living being.

Collective Resistance

Organizational change affects interest groups, influence,

control, power.

Groups are fundamental elements of organizations

They are links between the individual and the organization.

Generate more identity than the organization as a whole.

Allow to share perceptions and visions.

Groups are also a critical element of change

Facilitate to “organize” resistance, without exposing the individual.

Suggest the impression that the collective is stronger than the sum of the individuals.

Change tends to stimulate the competition between groups.

Individual Resistance

Organizational change affects people not only as employees but also as

individuals.

Technology

Hierarchy

Tasks

Rules/Norms

Procedures

Objective Information

Sentimentos

Simpatia/Antipatia

Esperança

StatusAmbição

Desejos

Valores

Medo

Insegurança

Desconfiança

Rejeição

Tabus

Ansiedade

To know the risks, one needs to dive deeper!

Feelings

Sympathy/Antipathy

Hope

StatusAmbition

Desire

Values

Fear

Insecurity

Mistrust

Rejection

Taboos

Anxiety

Technology

Hierarchy

Tasks

Rules/Norms

Procedures

Objective Information

Resist or not resist?

People don't resist change, they resist being changed.

Peter Bregman

PM Approach

“Classical” Project Management might not be the best approach

to deal with organizational change.

Change should be strategic – that is rather a program's issue.

PM’s main purpose is to deliver products – change is different.

Its structure is temporary – change has to be permanent.

It does not include some important tools and techniques - organizational development does.

Types of ProjectsDevelopmentDeployment

Engineering

Purpose/Objectives

Planning/Monitoring

Direction/Leadership

Needed Competencies

OrganizationalDevelopment x

≠

Project Organization

People x Products

Provoke behavioral changes, intangible, but relevant.

Are strongly influenced by organizational, social, cultural and economic aspects.

Development Projects

Have to deal with a high degree of uncertainty for planning and implementation.

Beneficiaries are not commercial clients of the project.

Development Projects

Example Project Management Office

PMO is to introduce change and promote development within the organization.

At the same time, the

establishment of a PMO is a development

project.

More explicit Challenges

Obtain sponsorship and resources.

Demonstrate the value of the PMO.

Have qualified staff.

Have the responsibilities well defined.

“Culture” (whatever that means).

Less explicit Challenges

The management of perceptions, beliefs, politics and power.

What are the keys to success?

Recognize the diversity of people.

Build up trust.

Orient the pace of change towards people, not technology.

Reveal the value for the people, not only for the organization.

Involve people actively.

Create, use and share the organizational knowledge.

Not all organizations need to be identical ...

... but all should comply efficiently with their mission and be a pleasant place to work!

Some resources used:• Bauer, Ruben (2009): Conhecimento e cognição. Apresentação no SBGC no Rio

de Janeiro.

• Bregman, Peter (2009): How to Counter Resistance to Change. http://blogs.harvardbusiness.org/bregman/

• Burke, Wyatt Warner (2007): Organization change. Theory and Practice. Los Angeles: Sage Publications.

• Friess, Peter M. (2000): Systemische Konzepte für das Management von Organisationsprojekten. www.gpm-ipma.de/docs/

• Neumann, Donald/Baureis, David/Stock, Torsten (2009): Capacidade de Transformação: Gestão Ágil de Projetos em Estruturas Organizacionais Transformáveis. In: Revista MundoPM, nº 26.

• Nicolette, Dave/ Kosekla, Lasse (2008): Overcoming Resistance to Change. http://submissions.agile2008.org/node/1655

• Pfeiffer, Peter (2005): Gerenciamento de Projetos de Desenvolvimento. Conceitos, Instrumentos e Aplicações. Rio de Janeiro: Brasport.

• Pfeiffer, Peter (2006) Facilitação de Projetos. Conceitos e técnicas para alavancar equipes. Rio de Janeiro : Brasport.

• Schlichter, John (2009): Transformando a Cultura através do PMO e OPM3. In:Revista MundoPM, nº 27.

• www.flickr.com