Change management in project

Change management in project
See also
SWOT analysis Scenarios of states in environment Risk category Risk response plan Implementation of strategy TOWS analysis Decentralization Strategic risk Strategic IT System

During the course of the project, changes are often caused by unforeseen events. Procedures for the change process should be pre-determined and formalized. However, change management should consist in their classification, description, evaluation and verification of effects. However, when it comes to the definition of change management alone, we can distinguish at least two approaches:

• Change management is a specialized management method, similar to e.g. strategic management, human resources management or quality management
• Change management is an interdisciplinary subject that combines the components of management theory, methods and techniques of organizing institutions and work as well as psychological, sociological, economic and technical knowledge.

Classification of changes

When preparing for projects, always take into account the risk of changes compared to the plan. Classification of these changes can be made taking into account various criteria, but the main features are the division into:

• Changes caused by external factors.

External factors include the legal and market environment that may force the project managers to adapt activities to the newly introduced law or order additional tests or expert opinions. This forces a change in the project schedule to select new staff, or to extend the duration of the project or change the budget. Social, economic or organizational factors may also influence such a change. The sponsor of the project may change, the owner of the company may be restructured, protests from local people or a political crisis. (Wirkus M., Roszkowski H., Dostatni E., Gierulski W.

• Changes caused by internal criteria.

The internal factors include poor budget planning, disregarding the necessary tasks to complete the project, arranging tasks in the wrong order, poor planning of cooperation with suppliers, and choosing the wrong team that does not have the appropriate competence.

• The significance of changes.

We can highlight significant changes, i.e. those that require additional formal approval and non-essential changes that do not require such changes. An example of changes that are important in, for example, construction projects are changes that require a change of a building permit.

• Scope and necessity.

The project may have changes that have a large impact on the scope of the project and its budget. There are also minor changes that have a very small impact on the final effect of the project. However, the implementation of some changes may be important to the extent that without them it will not be possible to complete the project.

Documents of change

Every good change management process should have two documents:

• Application for change.

In some projects, there is no specific and formalized pattern of this document, and in others the model is set by the project team. Every change that the client requests should be previously included in such a conclusion. Supplementing such a proposal launches another round of deciding on the feasibility of a change and, possibly, changes in resources.

• Description of the impact on the project.

After submitting and clarifying the application, a document describing the impact of the change on the project is created. The description of this document presents feasible options and determines the positive and negative consequences of adopting a particular solution. In addition, the project manager recommends the best solution according to him, but the final choice belongs to the client.

Scenarios for making changes

After completing and accepting the application for changes, one of the above scenarios may occur:

1. The introduction of the change does not result in the increase of costs and time of the project implementation.

This is the optimal scenario that does not fix large problems for the project manager.

2. The introduction of the change is possible and does not result in an increase in costs, whereas the duration of the project is extended.

In this scenario, the negative effect is the change of the schedule while the budget of the project does not change.

3. The introduction of the change is possible and does not result in an increase in the project implementation time, while its costs increase.

In this case, if the time is a priority, then it is necessary to increase the expenditure of resources so that the project schedule remains unchanged.

4. The change is feasible on the condition that both resources and time of project implementation are increased.

This situation gives permission to extend the schedule and use additional resources.

5. Change is possible, but requires modification of the project plan and revision of part of its schedule.

An example could be adding additional tasks to the project, such as adding 4 additional functionality of the application, where only 10 were used for the basic plan. This is a significant change, one in which case you can rank the tasks from the most priority to the least and see which ones require completion on time, and which are not so much priority. For example, you can first complete the eight most important functions, which are the core and essence of the task. However, the other six are, as it were, an addition and complement to finish beyond the deadlines. Often, despite the delay of the schedule, it gives the opportunity to realize project assumptions or minimizes losses to a minimum.

6. Change is possible, but the scope of changes is large and significant.

Important modifications should be made in the project. The scope and priority of these changes is so large that its inclusion will invalidate the project plan. In this case, the manager can either stop the whole project and start a new one based on a suitably modified plan, or finish the current one and start a completely new project after it, whose only goal will be to introduce these changes to the finished first version of the project.

Control of changes in the project

The change control system should be documented through a formalized scheme for reporting, considering and making changes to the project. This system forces the person introducing appropriate argumentation justifying the change and gives the opportunity to develop a reliable assessment of the proposed solution from the perspective of the impact of the change on the other aspects of the project.

The process of change management in the project takes place throughout the entire life cycle of the project, both from its beginning and ending. During the implementation of the project, it is necessary to control changes, because in many cases the final project is not carried out and does not end exactly as it was assumed during the planning stage. The change management process should consist of the following elements:

1. Integrated change control.

At this stage, appropriate communication with the participants of the project should be effective in order to be able to see the need for change.

2. The formal registration procedure for applications.

Provide appropriate documentation and procedures for introducing change requests.

3. Classification of the application into one of the specified categories

Appropriate redirection of the application to categories such as external, internal, etc.

4. Reviewing the application.

Before introducing the change, the application should be reviewed by the project manager or the Change Control Commission or other experts.

5. Assessment of potential effects of changes.

You should consider risks such as schedule, costs and other consequences.

6. Evaluation of possible solutions

At this stage, a reliable assessment of the causes, effects and conditions of modification is required.

7. Analysis of the impact of changes on the project

It should also be determined what impact the change on costs, timeliness, scope and quality will have.

8. Redefining project parameters

On the basis of the analysis of deviations of the schedule, budget and scope of work from the original plan, the project parameters should be redefined.

9. Presentation of the results of the analysis of the Change Control Committee or the Steering Committee

After verifying the previous points, a decision should be made to approve or reject the application.

10. Implementation and documentation of results

The last step is to accept modifications for implementation or to register the rejection of the application.

Examples of Change management in project

• Risk Analysis: Risk analysis involves assessing the risk of a change and determining what measures can be taken to mitigate it. This can include performing a cost-benefit analysis to assess the economic impact of the proposed change.
• Change Request Tracking: Keeping track of change requests is a key aspect of change management. This helps ensure that changes are properly documented and tracked so that any potential conflicts can be easily identified and addressed.
• Impact Analysis: Impact analysis is a process of evaluating the potential impacts a change may have on the project. This includes assessing the impact on the project timeline, budget, resources, and other aspects.
• Change Control Board: A Change Control Board is a group of stakeholders that reviews, evaluates, and approves changes. This helps ensure that changes are properly evaluated and that the project remains on track.
• Communication: Communication is key to successful change management. This includes informing stakeholders of changes and communicating any necessary adjustments or modifications.
• Training: Training is also necessary to ensure that everyone involved in the project understands the implications of the change and is prepared to implement it. This can include providing tutorials, demonstrations, and other resources to ensure that everyone is properly educated.

Advantages of Change management in project

Change management in project is a necessary tool to ensure successful outcomes. It is important to have procedures in place to manage changes throughout the process to ensure that any change can be properly evaluated and implemented. Here are some advantages of change management in project:

• Change management assists in the identification of potential risks and deviations from the original plan. It is important to understand how changes can affect project outcomes and to identify any risks associated with them.
• Change management also allows for greater control and flexibility of the project. It enables teams to adjust plans and timelines to meet objectives and adapt to changing circumstances.
• It can help to reduce the costs associated with changes, as teams can identify potential cost savings and optimize the use of resources.
• By having a change management process in place, teams can stay informed of changes and ensure that everyone is on the same page. This helps to ensure that everyone is working together towards the same goals.

Limitations of Change management in project

Change management in project can be limited in a number of ways. These include:

• Limited resources: Change management often relies on access to resources, such as experts and personnel, that may not always be available when needed. This can slow down the process and reduce its effectiveness.
• Poor communication: A lack of communication between the project team and stakeholders can lead to misunderstandings and misaligned goals, which can limit the effectiveness of change management.
• Lack of experience: Without prior experience in change management, project teams may not understand the process and may be unable to make informed decisions.
• Unclear objectives: Without clear objectives, the scope of change management can become muddled, resulting in reduced results.
• Resistance to change: People may be resistant to change and this can create a barrier to implementing change management processes.
• Time constraints: Change management often requires a significant amount of time to implement, which can be difficult to manage in the face of tight deadlines.

Other approaches related to Change management in project

One of the approaches to Change Management in project is to determine and formalize procedures for the change process. Other approaches include:

• Risk Management: Risk management is a crucial part of change management, as it allows the project team to identify risks associated with a proposed change and to develop strategies to mitigate those risks.
• Issue Management: Issue management is an approach to managing problems and conflicts that arise during the course of a project. It involves defining the problem, investigating its cause, and finding a solution.
• Configuration Management: Configuration management is a process of controlling, managing, and tracking changes to the project components and other elements. It ensures that all versions of the project components are consistent and up-to-date.
• Process Improvement: Process improvement is an approach to streamlining the project processes and improving their efficiency. It involves analyzing existing processes, identifying areas of improvement, and implementing changes to increase efficiency.

In summary, other approaches related to Change Management in project include Risk Management, Issue Management, Configuration Management, and Process Improvement. These approaches are important for ensuring that any changes made to the project are properly managed and implemented.

References

• Hwang, B. G., & Low, L. K. (2012). Construction project change management in Singapore: Status, importance and impact. International Journal of Project Management, 30(7), 817-826.
• Carnall, C. (2018). Managing change. Routledge.
• Todnem By, R. (2005). Organisational change management: A critical review. Journal of change management, 5(4), 369-380.