Projects Require Change Management
All projects result in a change in how people, organizations, and systems operate the current state to a future target state that incorporates the use of the project products. Effective leadership is required to deliver this change.
PRINCE2 7 change management
Change management is the means by which an organization transitions from the current state to the target state. The current and target states can be captured and described as a set of routines, responsibilities, relationships, cultures, and capabilities.
Identifying which areas of the organization will be impacted by the project as it transitions from the current state to the target state describes the change the project will deliver. For some projects, there may be interim states the business will transition through, and these can also be described.
PRINCE2 7 addresses change by creating and maintaining a change management approach for the project. In determining the level of detail to capture in the change management approach, it is worth considering:
- what decisions the change management approach is supporting the project team to make the skills and capabilities required during and after the transition from current to target state
- which areas of the organizational ecosystem are likely to be impacted by the project
- the key relationships to be considered
- the evolving culture
- how best to transition; for example, through learning or upskilling, transitioning knowledge from the project team, or recruiting new people into the business.
The Change management approach document
The change management approach is part of the project initiation documentation.
Its purpose is to establish the target organizational state required for the project to meet its objectives together with the means by which the business will shift from the current state and through any interim states.
Scope: what changes will be delivered by the project; any exclusions
Change states: description of current, interim, target states
State characteristics: for each state, highlighting those that are changing: for example, routines, practices, process, culture, responsibilities, structure, capabilities
Enabling activities: before transition, during transition, after transition; for example, consultation, trials, training, and helpline
Resources: for the enabling activities
Responsibilities: for the enabling activities
Supporting tools and techniques: for the enabling activities; for example, modeling
Standards: any standards that apply to change management activities
References: for any associated documents or products.
Project Stakeholders
Projects will impact people from across the organizational ecosystem. Therefore, a project will need to involve those with a formal role in the project team and key people either impacted by or critical to the success of the project (who may not hold a formal role).
These people are the stakeholders in the project and will cover the full spectrum of users, suppliers, and the business. Stakeholders can be external to both the project team and the business.
A stakeholder can be defined as any individual, group, or organization that can affect or be affected by (or perceives itself to be affected by) the project.
A strong understanding of the relationships between the project and the organizational ecosystem, and the ability to identify key stakeholders at the interface between the two is fundamental to leading successful change.
These stakeholders are the key influencers, who may be the following:
- senior executives
- those found in the user, supplier, or wider operational communities within the organization undertaking day-to-day tasks and decision-making
- those who can be identified by considering the bottlenecks where information, knowledge, and money flow across interfaces (for example, document controllers, technical experts, and commercial managers); and by speaking to people in the areas impacted by the project to learn who holds the knowledge in their area and is best informed on how things will practically work
- those who can shape the perception of the majority within the project ecosystem
- these are the people, through their network, who can have the greatest influence on the adoption of the project products and the realization of project benefits, then taking time to understand their perspectives on the project and any constraints they have will help improve project delivery
- the people the project management team needs to work closest with to ensure the success of the project.
- Stakeholders at the interface with the project may change over time as the project evolves and relationships develop. The way in which a project is established should support relationship building across interfaces.
- This can be established through regular meetings and working groups that build a shared understanding of different perspectives, the project data, and knowledge agreed on by stakeholders.
In the figure above, the size of the bubbles can vary. For example, for some projects the majority of the users may sit in the organizational ecosystem. For some projects all the suppliers could fall within the project ecosystem as they are uniquely engaged for the specific project and have no other relationships with the business.
Understanding where the business, supplier and user interests sit in each of the ecosystems helps in deciding how they will be represented on the project and how they will be engaged.
PRINCE2 7 Project Culture
Projects often combine people from different parts of the organizational ecosystem, where different working cultures may exist. A project team may need to establish a project culture that is distinct from the business but in such a way that it remains aligned with the wider organizational ecosystem.
A shared understanding of the project developed with key influencers must be captured as part of the project brief.
This shared understanding of the project combines with an understanding of the external legal and regulatory obligations and relevant business commitments (such as sustainability targets) to provide a guide for multi-layered decision-making.
Based on the shared understanding developed with the key influencers, it is possible to establish ways of working to ensure all impacted areas of the organizational ecosystem are appropriately involved in the project as it progresses.
The ways of working are captured in the management approaches for the project. Gaining a shared understanding is also enabled through who is assigned to project roles, including decision-makers on the project board who represent business, user, and supplier interests.
The project management team structure and the quality and planning practices in PRINCE2 ensure that users are represented or involved in defining, developing, quality control of products, and consulted in the decision-making process.
The shared understanding enables aligned behaviors and sets the culture for the project.
Culture is defined as the set of shared attitudes, values, goals, and ways of working that characterize a group of people.
At the start of a project, the project culture tends to reflect the organization’s culture. However, a distinct project culture may emerge as it evolves. It is important that the formal ways of working evolve to reflect the emerging project culture and support alignment with the wider organizational ecosystem that the project needs to interact with.
As the project progresses, key influencers on a project may change, as do the key relationships. It is important to ensure that the shared understanding of the project remains valid and supports the project’s evolving culture.
Project teams should check the shared understanding at the end of each stage of the project and whenever there is a change in key influencers.
Defined ways of working should remain aligned with how people are actually working. Persistent non-compliance with project processes is often a leading indicator that the agreed ways of working have become unaligned with the emerging project culture.
Although it is tempting to assume that non-compliance is because of poor behaviors, there could be an underlying disconnect that is worth exploring. The ways of working should evolve to remain aligned with the desired project culture and with the wider organizational ecosystem which the project interacts with.
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