Project Management & Change Management

Most businesses change most of the time. The market, the business environment, laws and many other external sources of change impose changes. Other changes are initiated by businesses themselves; building competitive advantage, furthering strategic objectives etc. Often these changes are made by running projects. Change management is simply the process, tools and techniques used to manage the people aspects of a change. In the context of projects, change management is about meeting the project's objectives, on time, within budget and realizing the return on investment (ROI) they set out to achieve. People often ask what is change management in the context of projects and what does it do for projects.

Prosci , a research organization in the USA, performs worldwide surveys on change management. It has neatly summarized the relationship between change management, project management and how these interact with leadership to produce the successful execution of projects.

Their 'change triangle' is shown as :

Leadership / Sponsorship

Leaders and sponsorship are responsible for making deciding to make the change, providing direction and demonstrating commitment to the change. The role of sponsor is determined by the actual change that is being implemented. Leaders establish strategy and direction. It follows therefore that the changes they initiate must be clearly aligned with the strategy of the organization. From a project perspective, leadership plays a key role in project governance and participating in change management, as an active and visible sponsor.

Project Management

Project management is a structured approach using processes and tools to implement business solutions. One of the key components of effective project management is having the change defined - you must know what is changing (processes, systems, job roles, organizational structure, etc.) in order to manage that change effectively. Project management trades off resources available with time, budget and scope of a change. Successful changes typically apply project management to their initiatives.

Change Management

Research shows that business results are achieved when employees are involved and participate in the change. As mentioned above, change management is the set of processes, tools and practices used to manage the people side of a change. Change management is concerned with implementing the change to meet the business objectives of the project. Change management requires two groups to change - individuals (people experiencing and transitioning through change) and an organization (groups that are managed through the change process). Change management is the tools and processes of helping employees transition from the current state to the future state (as defined by the change) in a way that minimizes the negative aspects of change (productivity loss, negative customer impact and employee turnover) while simultaneously maximizing the speed of adoption, utilization of the change and building proficiency throughout the organization. Communication, sponsorship, coaching and training are the tools used to help employees make their individual transition.