+++ How to Successfully Manage Changes through Projects in Organizations +++ Change Management in 8 Steps according to John P. Kotter +++
By Karin Baldauf (guest author) Read article in German
The digital transformation produces a great many projects these days. Often, these have a direct impact on companies’ ways of working and organization. Managing these projects is not only about the technical implementation. It is just as much about establishing the necessary organizational changes necessary.
Besides, these far-reaching projects concern many members of staff, who may not have come into contact with projects before at all.
Therefore, change management assumes a very important role.
If you are a project manager entrusted with such organizational projects, this is exactly where your challenge lies. Your future task will consist of two parts:
- Explain “how” you plan to implement the project.
- Explain convincingly, “why” the project was initiated and “what” you aim to achieve with it.
Which in turn means: As a project manager, your future responsibilities not only include the implementation of a project (project management elements). You also have to be a competent change manager. In this way, you ensure the long-term creation of value within your organization (change management elements).
The goal of this article is it to provide project managers with ideas for the successful realization of such organizational projects. You will learn how to:
- incorporate change management into your projects early and in a structured manner
- turn affected people into involved parties – besides the actual achievement of objectives
- ensure the accompanying organizational change
Towards the end, the 8-step model by Professor John P. Kotter will present you with a practice-oriented method of change management in phases. This is bound to help you achieve the change within your organization more easily.
“Change refers to the continuous or discontinuous development of an organization, in which one or more dimensions of the organization are changed. It is assumed that the social structures and stakeholder relationships are altered along with a change. Thus, we are talking about a social change.”
Gareis, Gareis (2017)
For the clarification of the term change, please note here: We are not referring to changes regarding aspects of scope or content of a project. Rather, we are concerned with organizational changes through projects.
You might also enjoy reading Project Management 2019 – 11 Important Trends
Change in Human Behavior is Difficult to Achieve
As a project manager, one thing should be clear from the outset: Changing the behavior of humans is not an impossible but still a fairly difficult task.
You will probably know from yourself, how hard it can be to change your own behavior. Whether it be giving up smoking, for example, sticking to a diet or to finally do more sports – this usually requires a lot of drive and conviction.
Even if the reasons for an important change are perfectly obvious – we easily find excuses.
But what makes it so difficult to put changes into effect?
There are many potential reasons:
- Feeling that the present state is quite comfortable
- Fear of the unknown
- Feeling of failure
- Fear of being incompetent
- Desire for security, routine, and dependability
- Lack of motivation
- Sense of being overwhelmed by the new
- Lack of perseverance
- Lack of faith in one’s own abilities
- The purpose of the change has not been conveyed
All of these are reasons which can make a project fail.
This is how resistance within the organization often can manifest itself during project implementation:
- Sickness absence rates and other reasons for absence
- Decisions already made are brought into question repeatedly
- Special cases turn into a recurring point of discussion
- Solutions are dissected right down to the last detail
- Tasks already assigned are re-delegated again
Differences between Project and Change Management: Advanced Skills Necessary
To be able to counteract this intra-organizational resistance in the project, you must re-align your focus as a project manager. This is no longer about the question of how to execute the project. Rather, you now have to ask: “Why are we doing the project” and “what is the project supposed to accomplish?”
Differences between project management and change management consist in function and focus. In the same way, the skills necessary for the respective role naturally differ, too:
Project management requires the following skill set:
- Analytical skill
- Planning skills
- Organizational skills
- Attention to detail and processes
Only with these skills can projects be implemented “on time, budget and quality”.
In change management, however, knowledge of human nature is the key to success.
As a project manager, you have to know or learn to encourage people to give up their set patterns of behavior and ways of working.
As a project manager, you have a further function in this case: that of the change manager. Thus, you are also responsible for changing the knowledge, attitude and behavior of the team members in the project. And this also extends to the staff members affected by the effects of your project.
Change management is a business process of organizations. This process is meant to contribute to the successful accomplishment of changes. The focus of change management is on managing a change rather than performing actual tasks in the context of a change.
Gareis, Gareis (2017)
Humans Have to Come to the Fore
As illustrated below, change management supports project management. The goal is to get from the current status of an enterprise, via a transitional state, to a desired future state.
As a project manager, you no longer have to look at project plans, work packages, processes, milestones etc. only from the perspective of project management. You have to switch to the perspective of change management. Among other things, this will help you to take into consideration the human aspects of the changes within your organization, which originate in your projects.
Your activities in change management accompany all involved members of the organization from the present to the future state. This is the only way you can succeed in obtaining the actual benefit from your projects. What is more, this approach goes far beyond what you could achieve with project management alone.
Unfortunately, however, organizations are ready to invest money in training courses concerning project management methods and tools. But only in the rarest cases will change management be considered financially. The result is thus a deficiency in knowledge regarding change topics. This in turn often leads to project delays, incomplete project results and in some cases even to project aborts.
Once again, put in a nutshell: Resistance, apathy and lack of commitment have a substantial impact on the project output and the project schedule. They can only be minimized, or even eliminated entirely, if the people concerned come to the fore once again.
Another interesting read in this context: How to Introduce Resource Management
An Example: Introducing a CRM System = Change in the Organization
An example from own my experience is the implementation of an IT-supported CRM system in the enterprise. (A similar example would be setting up an enterprise-wide PPM system.) This introduction applied to many departments in the enterprise.
For the IT department, this represented “only” another piece of software which had to be installed. For the members of the departments sales (back office and field service), marketing, product and customer service, it was however a huge rebuilding phase. Established processes and structures in the enterprise changed all of a sudden.
Workflows and techniques practiced for many years had to be reorganized, amended or relearned.
Change mananagement is also central to successful PMO setup.
- Project Management Office > Everything you need to know about a PMO!
- Read article How to Set Up a PMO
- Consult checklist with the 10 Vital Success Factors
Therefore, this reorganization went far beyond the enhancement or the introduction of a simple piece of software. Only by getting the affected staff members on board with all their fears and doubts, could the project be completed successfully within one year.
Therefore, your task as a project manager in the capacity of change manager is to place the people concerned at the center from the beginning. Moreover, see arising resistance for what it is: namely the desperate attempt to maintain the status quo.
If you know how to channel these forces, which manifest themselves in the resistance against the change, into a positive transformation process, you achieve a huge benefit: As a project manager, you will have additional personnel potentials and resources to fall back on.
Which brings us to this important tip: Involve the affected stakeholders into the change process occasioned by your project at an early stage. This enables them to:
- understand the “why”
- help shape the change
- implement the changes in their working sphere in a constructive way
Change Management in Projects – The 8-Step Model
The 8-Step Model by Professor John P. Kotter (Harvard Business School) outlines how project managers can meet the challenges of change management. This concept developed in 1996 extends Kurt Lewin’s 3-Step Model from the year 1947.
Kotter’s stage model is a holistic approach with which to implement a change within an organization successfully.
Kotter’s point is this. To make a radical change really happen, it is necessary to pass through all eight stages in the given order.
Watch out: Kotter points out that skipping individual steps creates only an illusion of rapid progress but will never lead to a satisfying result.
Kotter describes his strategy in detail in his book Leading Change (2011).
Steps 1 to 3: Creating the Climate for Change
Step 1: Establish a Sense of Urgency
It is important to establish a sense of the urgency or the necessity of the project from the beginning. The more staff members within the organization and the project team catch on, the higher the motivation will be to set the project in motion.
As a project manager, always demonstrate honestly and convincingly, why the project needs to be accomplished. Often it is helpful to outline not only the chances of the project but also worst-case scenarios. Those are scenarios, which could occur, if the project did not go smoothly.
As a general rule, we can say: The more people are talking about the project, the more this sense of urgency will also develop within the organization.
Step 2: Form a Powerful Coalition
After convincing the people within the organization of the necessity of your project, your work continues. In your position as a project manager, you have to keep up this sense of urgency consistently by winning over key persons within the enterprise for your project.
These people so not necessarily owe their influence on the staff members to their position in the organization chart. Frequently, other criteria are decisive, such as status, years in the enterprise, specialized knowledge etc.
One thing is important, however. If possible, all levels of the organization affected by the project should include such key personalities. Likewise, the latter should have adequate leadership qualities, powers and expertise.
Your task as a project manager is to keep this coalition of key personalities alive through meetings. Thus, the sense of the urgency and necessity of the project will persist within the organization.
Step 3: Create a Vision and a Strategy of Change
The next tasks for you as a project manager are:
- Create an easy-to-understand and easily remembered vision of your ideas and solutions surrounding the project
- Develop a concrete strategy based on this to assist you in achieving the goal of the project
The better people know where they are heading, the more they can concentrate on putting the set vision into practice.
According to Kotter, the vision should feature six characteristics:
- Conceivable: The vision must give a clear and credible picture of the future.
- Worthwhile: The vision should appeal to the long-term interests of the stakeholders within the organization.
- Feasible: The vision must be realistic and achievable.
- Focused: The vision must be clearly formulated in order to serve as a decision aid.
- Flexible: When necessary, the vision should respond to altered circumstances.
- Communicable: The vision should be easy to communicate and fast to explain.
Steps 4 to 6: Engaging and Enabling the Entire Organization
Stage 4: Communicate the Vision of the Change
You have to make sure that the vision is permanently fixed in the hearts and minds of the staff members. To achieve this, you have to bring it up again and again in meetings, emails, presentations etc. Thus, you convey the core message in an especially broad and tailored way.
As a project manager, you should thus use every opportunity to communicate your vision behind the project within the organization. This is the only way you will manage to maintain the acceptance and the commitment of the staff members over the entire life cycle of the project.
Step 5: Empower Those Involved and Remove Obstacles
At this point, the vision has been communicated effectively in the organization and the majority of people is ready to get on board with the changes. Now, the last remaining obstacles need to be identified and removed. This includes the structures and the systems of the organization. These have to be adapted to the requirements of the project. We are talking about e.g. job descriptions, knowledge and information systems as well as incentive and compensation systems.
Change management should accompany the Introduction of Project Portfolio Management.
Only thus, can the employees act in their area and take on responsibility for the announced changes, which such a project entails. This gives people the opportunity of finding innovative solutions to ultimately obtain the desired project results.
In this phase, it is important to create a culture which promotes and rewards the exchange of knowledge within the organization. You as a project manager play an important part in working towards this.
Step 6: Create Quick Wins
Nothing motivates like success. For this reason, you should obtain partial successes early on in the project. This will allow you to carry the momentum and energy gathered initially into the further course of the project.
Achieving short-term positive results is crucial to the long-term success of change initiatives. This is the only way to keep critics in check or ideally even sway them. For this, you need to identify goals attainable in the short term in your project planning and position them accordingly in your project schedule.
Such successes will enable you to prove that your project and the associated changes pay off for the enterprise and the staff.
Steps 7 to 8: Implementing and Sustaining the Changes
Step 7: Consolidate Your Gains and Introduce Further Changes
Kotter states that it would be fatal to rest on one’s laurels too soon. Real change takes time and runs deep. But every partial success achieved in the project offers the possibility to build on it.
It is up to you as a project and change manager to maintain the sense of urgency and necessity in the team and within the organization. Try to find additional backers for the project and the changes involved.
It is also of crucial importance to make the corporate culture consistent with all the new behavior patterns and practices resulting from the change.
Step 8: Anchor New Approaches in the Corporate Culture
With the conclusion of the project, it is vital to anchor the changes obtained firmly in the corporate culture. Now is the time to prove that the new way is better than the old.
Otherwise, there is risk that criticism of the project and its results may resurface.
You should communicate and publish the successes and changes you achieved actively in the entire enterprise.
In addition, senior staff and key persons must continue to support the change. Likewise, newly recruited staff need to be aligned to the new way.
Conclusion – Change Management for Project Managers
This article has looked at organizational changes through projects. In the future, these will increase, e.g. due to digital transformation. Such organizational projects will always entail changes concerning the staff members and the way they work.
In the future, the success of such projects will be measured differently. It will still be relevant whether goals have been reached on time and on budget. But more and more attention will be on whether the project’s intended change in the organization actually came to pass.
In substance, a project might also be implemented without change management. However, change management increases the chance that the project result is:
- profitably introduced to the enterprise
- accepted by the staff
As a project manager, you should engage in change management to master two challenges:
- Ever more complex projects
- Their impact on the organization
To date, the project management associations such as PMI, IPMA, PRINCE etc. barely address these change processes.
But, with the 8-step model by Kotter, this article has introduced you to a suitable method. This model is bound to make you more successful when implementing your projects with all the organizational change processes involved.
What have been your experiences with change management in projects? Do you feel we have missed an important point? We look forward to receiving your comment below.
About the author: Karin Baldauf has degrees in Business Administration and Business Software Technologies. She has worked in various positions of project management for 16 years. As a project manager, she successfully completed projects in the areas of mechanical engineering and automation, the textile industry as well as IT. Nowadays, she is head of multi-project management in sales at Meusburger Georg GmbH & Co KG – an Austrian manufacturer of standard parts for mold and die making with 17,000 customers worldwide and 1,500 employees. Her special interest in project management is directed at the connection to the areas of change management and knowledge management for a particular reason. Over the last 20 years, Meusburger has developed “WBI”, a simple and pragmatic method of knowledge management. Now, they also teach this system to interested parties.
More detail about Karin Baldauf on Linkedin.
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