Change management is a systematic approach to dealing with change both from the perspective

of an organization and the individual.

A somewhat ambiguous term, change management has at least three different aspects, including:
adapting to change, controlling change, and effecting change. A proactive approach to dealing
with change is at the core of all three aspects. For an organization, change management
means defining and implementing procedures and/or technologies to deal with changes in the
business environment and to profit from changing opportunities. In an information technology
(IT) system environment, change management refers to a systematic approach to keeping track
of the details of the system (for example, what operating system release is running on each
computer and which fixes have been applied).
Successful adaptation to change is as crucial within an organization as it is in the natural world.
Just like plants and animals, organizations and the individuals in them inevitably encounter
changing conditions that they are powerless to control. Adaptation might involve establishing a
structured methodology for responding to change requests in the business environment or
establishing coping mechanisms for responding to changes in the workplace (such as new
policies, or technologies).
Change management is an important part of project management. The project manager must
examine the proposed change and determine the effect the change will have on the project as a
whole before allowing the change request to be implemented.
Change Control Systems
Integrated change control is the primary component project managers use to manage proposed
changes within a project. When a change is proposed, the project managerwill filter the change
into one of four change control systems, depending on the primary area the change will affect.
The four change control systems are:

Scope change control system the proposed change directly affects the project
scope (this is the most common proposed change). A typical type of scope change could be
the project customer asks for additional items to be included in the project scope that were
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not already approved as part of the project scope. For example, the project customer asks to
add a bay window in a house construction project, or a customer asks the project manager to
include additional printing features in a software development project. These items were not
in the original project scope so they are changes to the project scope.

Cost change control system the scope contents have not change, but the price for the
items in the scope have increased or decreased. For example, in a construction project the
specific marble tile has increased in cost. Because the customer still wants the specific
marble tile, in this scenario, the scope doesnt change but the project budget will need to be
increased to purchase the desired materials. It is possible that the customer could decide to
use a different type of tile to stay within budget, but this different type of tile would change
the already approved project scope.

Schedule change control system the project schedule has been affected somehow and
events in the project are being delayed. For example, the materials needed for the project are
backordered from the vendor. The project cannot move forward until the materials are
delivered so the project is delayed waiting for the materials. The costs of the materials
havent changed and the project scope hasnt changed, but the project schedule is changing
due to the delay. The project manager may be able to rearrange events in the project so the
project team can work on other items while waiting for the vendor to deliver the materials.
The project manager may also recommend a scope change to choose a different, but available
material, to keep the project schedule moving.

Control change control system for projects where a contract is being utilized with a
vendor any changes to the project that affect the vendor will flow through the contract
change control system. Additions to the project scope, costs of resources, and even the
project schedule are defined in the agreed-upon project scope. Any changes that affect the
relationship between the customer and the vendor move through the contract change
control system. The project manager may not oversee this particular change control system,
but defer to the organizations central contract or procurement department.

A determination in any one of the change control system can directly affect the other change
control systems. All changes in a project will start with one of these four change control systems.

Integrated Change Control

Integrated change control examines the proposed change and determines its effect on the entire
project, not just the scope, schedule, costs, and contract. Integrated change control examines nine
project management knowledge areas to determine what effect the change will have on each
knowledge area:

Scope any change, even if it doesnt appear to affect the project scope, are always
examined to see if the change may have any impact on the project scope.

Schedule the project manager examines the proposed change to see if the project
schedule is affected. The project manager consider resource availability, access to the job
site, cash flow predictions, and deadlines in the project schedule.

Costs the project budget is constantly monitored for changes, even minor changes to the
project budget can accumulate into significant cost overruns within the project. Labor is
typically the largest expense on a project, so overages on completing project tasks can quick
drive changes to the project costs.

Quality any change can affect the expected quality of the project work. Any change, in
particular changes to the project scope, can affect the quality and must be monitored for
defects and unacceptable project work. Changes to the project schedule can affect project
quality as the work force may rush through assignments to meet the project schedule, but
generate defects in the rushed work.

Human resources changes to the project may require additional labor, specialized labor,
or if the project is delayed, the project manager may lose key resources that have other
assignments that now conflict with the delayed project schedule. Changes to the project
team, such as team members leaving the organization, can also affect the entire project.

Communications changes within the project must be communicated to the appropriate

stakeholders at the appropriate time. When a change happens the project manager must
examine who needs to be informed of the change and communicate the change in the best
modality considering the change implications.

Risk changes to the project can threaten the success of the project. Minor changes can
have a domino effect on the project and introduce significant risks. All proposed changes
must be examined for any possible risks the change may introduce to the projects ability to
reach its objectives.

Procurement changes to the project can affect the procurement of the project. Consider
changes to the project scope and how the need for additional materials, contract labor, or
facilities can affect the need to procure these goods and services.

Stakeholders changes to the project can positively or negatively affect the stakeholders
synergy, excitement, and support of the project. The project manager must examine the
potential affect the change may have on the project stakeholders. Some changes can add or
remove stakeholders to the project; for example, adding or removing elements to the project
scope can add or remove additional stakeholders to the project.

Integrated change control is a project management knowledge area that maps the effect a change,
action, or outcome in one area of the project can affect all other areas of the project. When
determining if a change is needed in the project it is paramount to perform integrated change
control.
Managing Unapproved Changes
Changes that do no flow through the defined change management system in a project are
unapproved changes. Unapproved changes are also known as defects because they are defective
to the approved project scope. When the project team does not deliver exactly what was
promised in the project scope then the change is an exception to what was promised the project
customer.
The most common unapproved change is when the project team makes an error in their work.
For example, a project team paints a house the wrong color. This is an unapproved change from
the project scope and it is a defect. The project manager must now determine how to manage the
change. Integrated change control is needed because the change has happened and the project
manager must examine all areas of the project to determine what effect the unapproved change
has on the remainder of the project.
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The most common outcome of an unapproved change is that the project team must perform
corrective actions and correct the error. Correct actions, such as with repainting the house in this
scenario, will likely change the project budget and change the project schedule because of the
rework, added materials, and the delay of other activities that are contingent on the completion of
painting the house. In some cases, the project manager and project stakeholders may work
together and agree to change the project scope to match the defect. In this instance, the project
customer may agree to accept the house with the different color paint for a reduction in project
costs.
Gold plating is another example of an unapproved change. Gold plating happens when the
project is needing less funds than what is available for the project, so the project manager
decides to add features to the project scope to consume all of the project budget. For example, a
software development project may have additional features added to the project to consume the
budget. Gold plating is a defect and is technically of poor quality because it is not what the
customer asked the project manager to deliver.
Some project managers take the stance of under promise and over deliver to justify gold
plating. The problem is that the customer hasnt requested or approved the changes the project
manager has added to the project. The customer may be eagerly awaiting the project completion
or needed the balance of the budget for other liabilities in the organization.
With any unapproved changes the project manager should lead the team through defect repair
and corrective actions. This means rework and then validating that the work was done properly
the second time to ensure acceptance of the project scope by the project customer.
Updating the Project Documents
When a change is proposed and managed in a project the project manager must document the
entire process. This begins with a change request; all change requests must be in writing to
ensure that the project manager and the person requesting the change are in agreement about
what the project manager is to possibly include in the project.

As the change request moves through the change control systems and through integrated change
control the project manager should document how the change may affect each component of the
project. This ensures that all thoughts and insight are captured with the change request and can
be useful to communicate with the requestor the total cost, time needed, and outcome the change
request will bring to the project. If the change request is declined this too is documented,
communicated to the requestor, and kept as part of the project archives.
If a change request is approved then there are several documents which may need to be updated
to reflect this change:

Change log all change requests and unapproved changes are entered into a change log
that the project manager maintains. This log becomes part of the project records and
archives.

Scope if the scope is changed then the project scope statement is updated to reflect the
change.

Work Breakdown Structure (WBS) this visual representation of the project scope may
need to be updated to reflect the project scope if a scope change has been approved.

WBS Dictionary the dictionary that clearly defines all elements of the WBS may need
to be updated to reflect the additions to the WBS and the project scope statement.

Project Schedule a change request that changes the project schedule will cause the
project schedule and the associated schedule baseline to be updated.

Project Budget a cost change will require the project budget and the project cost
baseline to be updated.

Project Management Plan a change in scope, schedule, cost, or contract could cause the
entire project management to be updated for additional planning, project execution, control,
and closing activities to accommodate the additions to the project.

Change requests and their outcomes must always be documented in the project. Its essential
during the closing activities of the project to have evidence of why a change has happened in the
project scope, schedule, costs, or contract that may be different than what was originally agreed
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upon at the initiation of the project. By documenting the project changes throughout the project
work it ensures consistency and smooth closing for the project manager, the performing
organization, and the project stakeholders.

CHANGE MANAGEMENT PROCESS

The change management process is the sequence of steps or activities that a change management
team or project leader follow to apply change management to a change in order to drive
individual transitions and ensure the project meets its intended outcomes. The below elements
have been identified from research as key elements of a successful change management process.
The below elements have been identified from research as key elements of a successful change
management process.

Here are the nine elements of a successful change management process:

1. READINESS ASSESSMENTS
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Assessments are tools used by a change management team or project leader to assess the
organization's readiness to change. Readiness assessments can include organizational
assessments, culture and history assessments, employee assessments, sponsor assessments and
change assessments. Each tool provides the project team with insights into the challenges and
opportunities they may face during the change process. What to assess:
Assess the scope of the change:

How big is this change?

How many people are affected?

Is it a gradual or radical change?

Assess the readiness of the organization impacted by the change:

What is the value-system and background of the impacted groups?

How much change is already going on?

What type of resistance can be expected?

You will also need to assess the strengths of your change management team and change
sponsors, then take the first steps to enable them to effectively lead the change process.

2. COMMUNICATION AND COMMUNICATION PLANNING

Many managers assume that if they communicate clearly with their employees, their job is done.
However, there are many reasons why employees may not hear or understand what their
managers are saying the first time around. In fact, you may have heard that messages need to be
repeated five to seven times before they are cemented into the minds of employees.
Three components of effective communication
Effective communicators carefully consider three components:
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1.

The audience

2.

What is communicated

3.

When it is communicated
For example, the first step in managing change is building awareness around the need for change
and creating a desire among employees. Therefore, initial communications are typically designed
to create awareness around the business reasons for change and the risk of not changing.
Likewise, at each step in the process, communications should be designed to share the right
messages at the right time.
Communication planning, therefore, begins with a careful analysis of the audiences, key
messages and the timing for those messages. The change management team or project leaders
must design a communication plan that addresses the needs of frontline employees, supervisors
and executives. Each audience has particular needs for information based on their role in the
implementation of the change.

3. SPONSOR ACTIVITIES AND SPONSOR ROADMAPS

Business leaders and executives play a critical sponsor role in times of change. The change
management team must develop a plan for sponsor activities and help key business leaders carry
out these plans. Research shows that sponsorship is the most important success factor.
Avoid confusing the notion of sponsorship with support
The CEO of the company may support your project, but that is not the same as sponsoring your
initiative. Sponsorship involves active and visible participation by senior business leaders
throughout the process, building a coalition of support among other leaders and communicating
directly with employees. Unfortunately, many executives do not know what this sponsorship
looks like. A change manager or project leader's role includes helping senior executives do the
right things to sponsor the project.

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4. CHANGE MANAGEMENT TRAINING FOR MANAGERS

Managers and supervisors play a key role in managing change. Ultimately, the manager has more
influence over an employees motivation to change than any other person. Unfortunately,
managers can be the most difficult group to convince of the need for change and can be a source
of resistance. It is vital for the change management team and executive sponsors to gain the
support of managers and supervisors. Individual change management activities should be used to
help these managers through the change process.
Once managers and supervisors are on board, the change management team must prepare a
strategy to equip managers to successfully coach their employees through the change. They will
need to provide training and guidance for managers, including how to use individual change
management tools with their employees.

5. TRAINING DEVELOPMENT AND DELIVERY

Training is the cornerstone for building knowledge about the change and the required skills to
succeed in the future state. Ensuring impacted people receive the training they need at the right
time is a primary role of change management. This means training should only be delivered after
steps have been taken to ensure impacted employees have the awareness of the need for change
and desire to support the change. Change management and project team members will develop
training requirements based on the skills, knowledge and behaviors necessary to implement the
change. These training requirements will be the starting point for the training group or the project
team to develop and deliver training programs.

6. RESISTANCE MANAGEMENT

Resistance from employees and managers is normal and can be proactively addressed. Persistent
resistance, however, can threaten a project. The change management team needs to identify,
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understand and help leaders manage resistance throughout the organization. Resistance
management is the processes and tools used by managers and executives with the support of the
change team to manage employee resistance.

7. EMPLOYEE FEEDBACK AND CORRECTIVE ACTION

Managing change is not a one way street; employee involvement is a necessary and integral part
of managing change. Feedback from employees as a change is being implemented is a key
element of the change management process. Change managers can analyze feedback and
implement corrective action based on this feedback to ensure full adoption of the changes.

8. RECOGNIZING SUCCESS REINFORCING CHANGE

Early adoption, successes and long-term wins must be recognized and celebrated. Individual and
group recognition is a necessary component of change management in order to cement and
reinforce the change in the organization. Continued adoption needs to be monitored to ensure
employees do not slip back into their old ways of working.

9. AFTER-PROJECT REVIEW

The final step in the change management process is the after-action review. It is at this point that
you can stand back from the entire program, evaluate successes and failures, and identify process
changes for the next project. This is part of the ongoing, continuous improvement of change
management for your organization and ultimately leads to change competency.
These elements comprise the areas or components of a change management program. Along with
the change management process, they create a system for managing change. Good project
managers apply these components effectively to ensure project success, avoid the loss of valued

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employees and minimize the negative impact of the change on productivity and a company's
customers.

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