Project

Risk Management
Change Management: Goal

The goal of change is to improve the organization by altering

how work is done When you introduce a change to the
organization, you are ultimately going to be impacting one or
more of the following:
• Processes
• Systems
• Organization structure
• Job roles
Change Management: Definition

Change management is the process, tools and techniques to

manage the people-side of change to achieve the required
business outcome.

Change management incorporates the organizational tools that

can be utilized to help individuals make successful personal
transitions resulting in the adoption and realization of change.
 Any change to processes,
systems, organization
structures and/or job roles Think
will have a
'technical’ side and a
'people' side that must
be managed. Project management &
Change management
have evolved as disciplines to
provide both the structure and
the tools needed to
Think You! realize change
successfully on the
technical and people side.
Common Reasons for Resistance

• Self-interest
• Fear of the Unknown
• Conscientious Objection or Differing Perceptions
• Suspicion
• Conservatism
Individualistic

• Mixture of Emotion and Rationalization

• Don’t assume others will respond the same or that you will,
under different circumstances
Important Dimensions

• Past history in putting change in place

• Degree of sponsorship
• Authenticity of sponsorship (Walk the Talk?)
• Organizational and individual current Stress
• Who will be impacted by the change
• Cultural fit of the change
• Addressing “What’s in it for me”
• Communication of the change and its progress
• Skill sets of the change agents
Change = Motivation X Vision X Next Steps

• Motivation – Some good reason to give up the status quo

• Vision – A Clear and practical vision of the desired future state
• Next Steps – an understanding of the next steps required to
progress toward the vision

If one is missing, little change will take place!

Variance Analysis

A technique for determining the

cause and
degree of difference between the baseline and
actual performance.

Project performance measurements are used to assess the magnitude

of variation from the original scope baseline. Important aspects of
project scope control include determining the cause and degree of
variance relative to the scope baseline (Section 5.4.3.1) and
deciding whether corrective or preventive action is required.
5.6.2.1
Change Control Management

A major element of the risk control

Things do not go always as expected.

Sources: Project customer, owner, project manager

Main Categories

1. Scope changes
 Design or additions on customer requests.
 Redesign for improvement
2. Implementation of contingency plans
 Driven by risk response plan
3. Improvement changes
 Suggested by project team members
Change Management Systems

Change management system involve:

• Reporting,
• Controlling, and
• Recording
changes to the project baseline.
Change Management Systems: Objectives

1. Identify proposed changes.

2. List expected effects of on schedule and budget.
3. Review, evaluate, and approve or disapprove changes
formally.
4. Negotiate and resolve conflicts of change, conditions, and cost.
5. Communicate changes to parties affected.
6. Assign responsibility for implementing change.
7. Adjust master schedule and budget.
8. Track all changes that are to be implemented.
Change Request Form
Change
Request
Log
Decision Making

Often solutions to immediate problems have adverse

consequences on other aspects of a project.

Implications of changes are assessed by people with

appropriate expertise and perspective

Construction projects: Architecture firm

Software development projects: Project architects
Plan of Record

The current official plan in terms of

scope, budget, and schedule.
It serves as a change management benchmark and
the baseline for evaluating project progress.

PMBOK: Record Management system

Integration: Documentation

Approved change must be identified and integrated

into the plan of record through changes in the
project WBS and baseline schedule.
Change Control Systems: Benefits

1. Inconsequential changes are discouraged.

2. Costs of changes are maintained in a log.
3. Integrity of the WBS and performance measures is maintained.
4. Allocation/ use of budget/ management reserve funds are
tracked.
5. Responsibility for implementation is clarified.
6. Effect of changes is visible to all parties involved.
7. Implementation of change is monitored.
8. Scope changes will be quickly reflected in baseline and
performance measures.
Variance Analysis

Determining the
cause and
degree of difference
between the
baseline &
actual performance.
Change Requests

Change requests may include:

• Corrective action,
• Preventive action, and
• Defect repairs.
Baseline Changes