Illustrate an Effective Change Management Strategy

Available online at www.sciencedirect.com

www.elsevier.com/locate/ijproman

International Journal of Project Management 28 (2010) 405–412

Competencies for managing change

Lynn Crawford a,b,c,d,*, Anat Hassner Nahmias e

a Univ Lille Nord de France, F-59000 Lille, France, LSMRC

b Mirvac School of Sustainable Development, Bond University, Australia

c Cranfield University, UK

d Human Systems International Limited, UK

e Human Capital Practice, Presence of IT, Sydney, Australia

Received 26 January 2010; accepted 28 January 2010

Abstract

Organisational changes are recognised as a specific project type that can benefit from the application of project management skills, tools and techniques. Associated with this trend is evidence of rivalry in the marketplace between Project Managers and Change Man- agers concerning who should be managing business change. And these are not the only contenders. Corporate executives and senior man- agers, although they may engage the assistance of both Project Managers and Change Managers, generally see themselves as taking the leading roles in managing major organisational changes and transformations. As such endeavours are most likely to take the form of programs, comprising multiple projects across the organization, Program Managers are seen by some as being most likely to be respon- sible for managing organisational change initiatives. This paper reports on research undertaken to explore the differences in approach and practice of Project, Program and Change Managers as a basis for determining the competencies required to effectively manage change initiatives. � 2010 Elsevier Ltd and IPMA. All rights reserved.

Keywords: Change management; Business change; Program; Project; Competence

1. Introduction

In the project management field, organisational changes have become recognised as a distinct type of project or pro- gram (Partington, 1996) that has generated a growing research interest (Levene and Braganza, 1996; Crawford et al., 2003; Pellegrinelli, 1997; Leybourne, 2006; Bresnen, 2006; Lehtonen and Martinsuo, 2008; Nieminen and Lehtonen, 2008). In the field of change management, organisational change initiatives are often described as pro- jects or programs and reference is made to use of project management skills, tools and techniques (Dover, 2003;

0263-7863/$36.00 � 2010 Elsevier Ltd and IPMA. All rights reserved. doi:10.1016/j.ijproman.2010.01.015

* Corresponding author. Address: Mirvac School of Sustainable Devel- opment, Bond University, Australia. Tel.: +61 410 641 211; fax: +61 2 9968 1274.

E-mail addresses: [email protected], Lynn.Crawford@humansystems. net (L. Crawford).

Leybourne, 2006; Biedenbach and Söderholm, 2008; Oswick and Robertson, 2009).

In the marketplace, there is evidence of a degree of riv- alry between Project Managers and Change Managers con- cerning who should be managing business change. And these are not the only contenders. Corporate executives and senior managers, are generally the change owners, and although they may engage the assistance of both Pro- ject Managers and Change Managers, generally see them- selves as taking the leading roles in major organisational changes and transformations. As such endeavours are most likely to take the form of programs, comprising multiple projects across the organization, Program Managers are seen by some as being most likely to be responsible for managing organisational change initiatives (Pellegrinelli et al., 2007).

There is a popular view in the project management com- munity that Project Managers are managers of change or

406 L. Crawford, A.H. Nahmias / International Journal of Project Management 28 (2010) 405–412

change agents (Turner et al., 1996), but others (Partington et al., 2005) consider that projects or programs that require significant amounts of behavioral and organisational change, particularly those that might be characterised as involving 2nd order change (Levy and Merry, 1986; Gareis, 2010) demand high levels of interpersonal skill, astuteness and sensitivity and a fundamentally different approach to the candid, direct, and rational style valued in competent Project Managers. They also suggest that Project Manag- ers, or Project Managers promoted to Program Manager roles are not always suited to the demands of organisa- tional change projects. They need to learn skills and capa- bilities beyond those required to manage a typical project in order to drive change.

In practice the role of the Change Manager has emerged from a different disciplinary background to that of Project Managers. Project management can be seen as having its origins in engineering with a focus on planning and control while organisational change as a discipline has grown from the Organisational Development field (Vaill, 1989) and places significant emphasis on the behavioral aspects of managing change. This leads to the recognition that there are two distinct bodies of knowledge underpinning the practices of the Project Manager and the Change Manager. The project management body of knowledge is well defined in standards and guides produced by the project manage- ment professional associations. The field of organisational change and development is less well served in terms of pro- fessional and representative bodies (Hughes, 2007, p. 47) and practice standards but arguably much richer in terms of theoretical foundations. Consideration of both fields suggests that Change Managers coming from organisa- tional development backgrounds may lack the technical and administrative discipline of project management, while Project Management qualifications offered by the profes- sional associations and even the majority of academic insti- tutions do not require Project Managers to demonstrate practice or underpinning knowledge in organisational development or behavioral aspects of change (Pellegrinelli, 2002). There is certainly evidence that poor management of human factors is associated with failure of organizational change projects (Buchanan and Boddy, 1992; Todnem, 2005; Luo et al., 2006; Maguire and Redman, 2007).

The role and professional background of the person best suited to manage change is a topic of often-impassioned debate in the literature and in practice. There are many who believe that this role should be performed by the Pro- ject or Program Manager (Obeng, 1994; Turner et al., 1996; Pellegrinelli, 1997; Kliem et al., 1997). Other authors believe that the person managing change should come from a background which is less technical or project-based and more focused on behavioral science such as human resources, organizational development, and/or psychology (Kanter et al., 1992; Connor and Lake, 1994; French and Bell, 1999; Cummings and Worley, 2001; Caluwé and Ver- maak, 2003). The OGC’s Managing Successful Pro- grammes (Office of Government Commerce (OGC), 2007)

envisages that roles of both Programme Manager and Busi- ness Change Manager will be involved in the management of change initiatives.

As mentioned earlier, Project and Program Managers’ roles are well-established in literature, in practice, in acade- mia and by professional bodies such as the Project Man- agement Institute (PMI) and the International Project Management Association (IPMA). Change Management roles are not as clearly articulated. Job sites such as “My Career,” “Monster,” and “Seek” provide evidence of con- sistent demand for Change Managers, but role definition and support is considerably less well developed than it is in the project management field. Although a Change Man- agement Institute (CMI), with global aspirations, was formed in Sydney in 2005 to meet “the professional devel- opment needs of Change Managers through the provision of networking, education and accreditation” (Change Management Institute, 2009), professional bodies for change management are not as well-established as they are for project management and there is very little litera- ture support for specific change management roles. The change management literature focuses more on theories and processes of change than on the definition of roles of those involved in its implementation. Many actors, at dif- ferent levels of the corporate hierarchy, are seen as involved in effecting organisational change. Reference is made to change leaders, change agents, Change Managers, change drivers, interim managers (Smid et al., 2006), organisational development consultants (French and Bell, 1999; Caluwé and Vermaak, 2003), as well as an “external consultant or internal project leader” (Jarrett, 2004, p. 246). Although the use of projects to implement change (Biedenbach and Söderholm, 2008) and the need for project management skills (Nikolaou et al., 2007) are mentioned, the change management literature does not specifically iden- tify a need for Project or Program Managers.

This paper reports on research that aims to contribute to the emerging and very practical debate about choice of managers of change projects by examining the competen- cies required to manage change.

2. Methodology

There are two parts to this research study. First, the pro- ject and change management literatures have been reviewed to provide a comparative analysis of the competencies expected of Project, Program and Change Managers. Such a comparison provides a useful basis for determining whether Project and Program Managers can be expected to have the necessary competencies for management of organizational change. Having examined the literature, a similar comparison is conducted of practice across three case studies of organizational change projects. The case studies were carefully selected to provide practical insights into the relative roles and contributions of both Project/ Program Managers and Change Managers in the imple- mentation of organizational change. Taking a performance

L. Crawford, A.H. Nahmias / International Journal of Project Management 28 (2010) 405–412 407

based view of competence (Heywood et al., 1992; Craw- ford, 2005) the activities undertaken by Project/Program Managers on the case study projects are compared with those of the Change Managers.

2.1. Comparative competencies from the literature

Crawford (2002) identified aspects of Project Manager competency by comparing the findings of a number of research based studies. Aspects of competency were grouped and then ranked according to the number of times they were mentioned across eight studies. Those aspects receiving the least number of mentions were progressively grouped with the most directly related aspect receiving a higher number of mentions, and the aspects re-ranked. This procedure was conducted iteratively, resulting in the emergence of 24 competency aspects encompassing knowl- edge, skills and personal attributes identified as important to effective project management performance.

Results from Crawford (2002) study were updated and enhanced by inclusion of data from five additional studies and five standards including the ICB (International Project Management Association, 2006), APMBoK (APM, 2006), PMBOK� Guide (PMI, 2004), GAPPS standards (GAPPS, 2007) and OGC Successful Delivery Skills Framework (Office of Government Commerce (OGC), 2004).

The same analytical process was then applied to derive comparable sets of competencies for Program Managers

Table 1 Literature based project, program and change management competencies acro

Project Manager Program Manager

Similar competencies

Leadership Leadership Team development/team selection Team development/resource d Stakeholder management Stakeholder management Communication Communication

Cultural consideration Decision-making and problem-solving

Planning: cost, time, risk, quality, scope Planning

Governance Governance management Contract management Commercial Monitoring and controlling: cost, time, risk,

quality, scope Risk and issues management, monitoring, quality managem

Different competencies

Organization structure Project management office co Project definition Benefits management Administration, project reporting and

documentation Transition management Change control Closing

and Change Managers. Results of the analysis are shown in Table 1.

2.2. Case studies

Three case studies of organizational change projects were studied in three different organizations. Both organi- zations and change projects were carefully chosen to pro- vide as much control as possible over variation. The three organizations were of similar size but in three differ- ent industry sectors:

1. A large telecommunications company with 9000 employees.

2. A financial institution with 12,000 employees (before a merger, under which it grew to 30,000).

3. A public university with 10,000 employees.

To have as much control as possible over the type of change project, its influence and its measurability, the change projects were also chosen based on a set of criteria:

� Type of change: All change projects are an implementa- tion of an organization-wide IT system. These are the most common changes found in organizations today. All change projects may be considered 1st order changes (Gareis, 2010) as the overall identities of the parent organizations were not changed.

ss the three roles.

Change Manager

Leadership evelopment Team development

Stakeholder management Communication Cross cultural skills Decision-making and problem-solving Planning/Project management skills

scope management, progress ent

nsideration Analysis and assessment Creativity and challenge Initiative and self management Coaching skills Facilitation skills Presentation skills Process design Learning and development Action orientation Strategic thinking Influencing skills

408 L. Crawford, A.H. Nahmias / International Journal of Project Management 28 (2010) 405–412

� Number of influenced staff: Each organizational change has been implemented for a minimum of 1000 people and a maximum of 3000 people within the organization. � Project expenditure: Cost for implementing each of these

major technological implementations ranges from $5 million up to $20 million.

For all projects, the change had already taken place, the project or program had been completed, and the results of the change had been measured or could be estimated when the study was conducted. The change initiates were chosen on the basis that there was successful implementation as perceived by the sponsor. A critical factor in choice was that one was managed by a Change Manager, one by a Project Manager, and another by both a Change Manager and a Project Manager. For each project, semi-structured interviews were conducted with the leader/s of the change project, whether that was the Project Manager, the Change Manager, or both; the sponsor of the change initiative; three employees influenced by the organizational change; and a project team member (see Fig. 1).

In practice, it was not possible to differentiate roles of Project and Program Manager as in these case studies the terms project and program were used interchangeably throughout the interviews. The term project was most com- monly used. This is indicative of the pervasiveness of the term project, the less mature recognition and understand- ing of program and the questionable perception of pro- gram management roles as a progression from Project Manager in career terms as identified by Pellegrinelli et al. (2007).

The key contact in each organization was the project sponsor, who identified and invited participants. Intervie- wees were told that the research study would investigate both the Project/Program Manager and the Change Man- agers roles. Semi-structured interviews were conducted, transcribed and then analyzed using grounded theory tech- niques (Strauss, 1998) with the aid of NVivo qualitative data analysis software.

Financial Institution

12,000 employees

Change Manager

Academic Institution

10,000 employees

Change Mgr & Project Mgr

Telecommunications

9,000 employees

Project Manager

Sponsor

Change Manager

Change Subject

Team Member

Sponsor

Change Manager

Project Manager

Change Subject

Sponsor

Project Manager

Change Subject

Team Member Team MemberInterviewees Interviewees

Case Study 1 Case Study 2 Case Study 3

Fig. 1. Participant structure.

3. Discussion

From the literature, competencies expected of Project, Program and Change Managers were found to have simi- larities, although there were some differences as identified in Table 1.

In the case studies, however, greater differences were found between what Project/Program Managers and Change Managers actually do. The focus here is on change related activities (see Table 2). As noted above, it was not possible in the case studies to differentiate between Project and Program Managers as the interviewees used the terms interchangeably.

The review of the literature suggested a greater similarity between expected competencies of Project/Program Manag- ers and Change Managers than was evidenced by the activi- ties they carried out in practice. As indicated in Table 2, Project Managers focus on core Project Management activ- ities and conduct few directly change management related activities. Similarities are in communication, stakeholder management and planning but in each case the focus of Pro- ject Managers and Change Managers is different.

Change Managers use communication primarily to engage stakeholders, sell change, enlist champions, facili- tate political diffusion and manage stakeholder expecta- tions. Communications activities of Project Managers are primarily concerned with involvement in meetings, presen- tation of the project, and reporting particularly to spon- sors. The focus of Change Managers is more on engagement rather than management of stakeholders, tak- ing a wide view of stakeholders with particular emphasis on users and those affected by change. Project Managers, on the other hand, are more comfortable with the concept of stakeholder management and although they may identify a wider range of stakeholders, their concern centres on team members and project interfaces. Change Managers focus on planning to effect and embed change. The primary concern of Project Managers is planning for the project.

The change management literature makes it clear that context is a major factor in determining the approach that should be taken which will in turn influence the competen- cies required. A major finding from the case studies in rela- tion to context was that some organizational factors such as supportive culture and leadership assisted projects in achieving their goals although they did not completely eliminate the requirement for change management activi- ties. For instance, in the Telco, with only a Project Man- ager and no dedicated change management resource, few change management related activities were undertaken by the Project Manager who focused on project management related activities. Team members and affected staff com- mented on this in interviews and noted that a greater focus on change management including communication would have been beneficial. However there was general agreement that the project was successful and this appears to be lar- gely due to a shared view that the change was necessary, strong management leadership for the change and existence

Table 2 Similar and different activities undertaken by Project/Program and Change Managers in the case studies.

Project/Program Managers Change Managers

Similar change related activities

Communicating—organizes presentations, represents the project at team meetings and reports to sponsors

Communicating with stakeholders and managing their expectations

Stakeholder management and management of teams with interface to the project

Stakeholder management

Planning Change management planning

Different activities

Managing resources, people, budget schedule, risk

Changing behaviors and organizational culture to achieve the goals

Team development Preparation of users System assessment Organizational structure Project definition Political diffusion Issues resolution Impact analysis Vendor management Selling the change Strategic decisions Champion schemes Preparation of work environment Involvement in process

analysis work Project closing from project to

operational Training and education to affected staff

1. PM with some CM skills 2. PM with strong CM skills

Or PM plus CM

3. PM with strong CM skills Or PM plus CM

Low High

S trong

S upportive

culture and/or

Leadership

4. CM with PM

W eak

Degree of Behavioural Change Required

Fig. 2. Suggested decision matrix for engagement of project (PM) and/or Change Managers (CM).

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of a strong and well supported project management culture within the organization. This suggests that where there is a culture that recognizes the value of project management, good teamwork, low change resistance and strong leader- ship supporting the change it may succeed, regardless of the quality of change management activities. Factors that are influenced by the change project are the degree of behavioral change required and the extent of changes to the way people perform their jobs. These were influenced in the case studies using project engagements, communica- tion, training, and process redesign.

Concepts of 1st and 2nd order change provide another lens through which to consider the roles and competencies required to manage change initiatives. 2nd order change, being “discontinuous, deep structural and cultural change” (Gareis, 2010) could be considered to required greater breadth and depth of change management competencies and activities.

Reflection on the findings of this study were distilled to produce a matrix to assist managers and practitioners in making decisions concerning the competencies required and the resourcing and management of change initiatives (see Fig. 2).

The two axes represent the key contextual factors found in this research to influence the intensity of change manage- ment activities required. A high degree of behavioral change and a weak supportive culture and leadership will require more intensive change management activities, high- lighting the need for competent resources dedicated to change management. At the other end of the spectrum, if there is little behavioral change required and there is strongly supportive culture and leadership, then the change

may be effectively managed by a Project Manager with some change management skills. Other scenarios would suggest Project Managers with varying degrees of change management competence and/or engagement of both a Project Manager and a Change Manager.

A key finding from the case studies is that, except in pro- jects where there is very little behavioral change required, the Project/Program Manager will not have the time or bandwidth to carry out all the change management activi- ties required to ensure a successful outcome. For relatively small scale change initiatives a Change Manager with some project management skills may be an appropriate choice especially as project management skills are regularly iden- tified as one of a number of competencies required in the Change Manager’s arsenal (Change Management Institute, 2008). Nikolaou et al. (2007, p. 298) claim that “a change agent must rely on skills from both project management and organizational development (OD)” and in their study of traits and skills of change agents found that only project management skills demonstrated a significant positive cor- relation with overall team performance, even when the effect of dispositional characteristics such as openness to experience, resilience, self efficacy, resistance to change, cognitive and affective attitudes and behavioral tendencies were taken into account (p. 306).

In this study we have focused on performance based competencies that are evidenced by what is done in the workplace, rather than personal competencies. The change management literature strongly emphasises the importance of personal competencies to effective change management. It may be assumed that not all Project and Program Man- agers are dispositionally suited to management of change, although the findings of Nikolaou et al. (2007) supported

Table 3 Competencies and activities required to manage change based on synthesis of findings from literature and case studies.

Competencies required Change activities to be undertaken

Leadership Changing behaviors and organizational culture to achieve goals

Stakeholder management Preparation of users Planning Organizational structure Team selection/team

development Political diffusion

Communication Impact analysis Decision-making and

problem-solving Selling the change

Cultural awareness/skills Champion schemes Project management skills Involvement in process analysis work

Training and education to affected staff

410 L. Crawford, A.H. Nahmias / International Journal of Project Management 28 (2010) 405–412

by others such as Bruch et al. (2005), reporting on strategic change implementation at Lufthansa, and Leybourne (2006) relating to project-managed implementation of stra- tegic change in the UK financial services sector, provide some confidence that change initiatives will generally ben- efit from some form of project management.

3.1. A guide for project/program and change management

competencies and activities

In this study both literature and empirical research were utilized to provide a guide to the competencies required and activities to be undertaken by a Project/Program Man- ager and Change Managers to successfully implement change on change projects.

Table 3 above summarises the change management competencies that were found in literature across the roles of the Project/Program Manager and the Change Man- ager. These competencies, according to literature, are those needed by Project/Program and Change Managers to implement change successfully as part of a change project. Table 3 presents the change management activities that were undertaken by the Change Managers on the case study change projects. These findings are consistent with guidance from the change management literature.

In summary, in order for an individual, whether Project/ Program or Change Manager, to successfully implement change into organizations, he or she should possess all the competencies listed in Table 2 common across the roles and summarised in column one of Table 3 below. They must also be able to perform, or ensure performance of the activities listed in column two of Table 3, as they are directly related to proven achievement of successful change.

4. Conclusion

The goal of this study was to investigate the relative roles of Project/Program Managers and Change Managers on organizational change projects and the contextual fac- tors that might affect the change management competen-

cies required, the change activities that need to be undertaken, and the most appropriate professional back- ground to manage the process. Analysis of literature and rich data drawn from carefully selected case studies has contributed to theoretical and practical understanding of the phenomenon and provides a sound basis for future research testing the findings in other settings and with dif- ferent methodologies. In this study, the types of change projects were all IT implementations conducted in different types of organizations. This is an important limitation of the study. Although findings have support from the litera- ture and provide useful guidance for further research, they lack generalisability and recommendations should be trea- ted with caution. Studies of different types of organiza- tional change would be a useful further progression of this research. Categorization of 1st and 2nd order change, as discussed by Gareis (2010) could provide a useful frame- work for such studies.

The organizational factors identified as significant in this research were specific to those the three cases studied. There are many other factors in organizations that influ- ence or are influenced by organizational change projects. It would be worthwhile investigating organizational/con- textual factors in greater depth, perhaps investigating each factor separately. A study such as this would contribute greatly to the understanding of how contextual factors influence the competencies required to effectively imple- ment change.

This study has implications for both the theory of pro- ject management and change management. From a theo- retical perspective, this study brings together two largely disparate fields that operate within the same organizational territory, that is, the management of change. The two fields are project/program management and change manage- ment, a field which has evolved from organizational devel- opment and human resources practices. In practice, there is often competition between Project/Program Manager and Change Managers for the management role on organiza- tional change projects but this study has demonstrated that there is opportunity for a fruitful partnership. From a the- oretical perspective, change management can be seen as theory-rich while the role of the Change Manager is weakly supported in terms of professional formation. The project/ program management field is generally considered to be theory-poor, while the roles of Project and Program Man- ager are very well supported by professional bodies, stan- dards, and certification processes. This suggests a fruitful opportunity for partnership not only in the management of organizational change projects, but in theoretical and professional development.

Another contribution of this study is in testing the claims of Project and Program Managers as implementers of change. According to this study, and in contradiction to many papers and books written to date on the matter, Project and Program Managers do not necessarily have the required competence or perform the full activities required to promote and implement the changes that they

L. Crawford, A.H. Nahmias / International Journal of Project Management 28 (2010) 405–412 411

are leading as part of their projects. Although many authors suggest that Project and Program Managers are implementers of change, the case studies analyzed do not support this when compared to Change Managers. The findings of this research have potential to contribute to cur- riculum and educational development for Project and Pro- gram Managers.

The study highlights the need for professional formation for Change Manager roles which have significant applica- tion in practice, but have been subjected to little scrutiny in terms of research. To date, there are few or no industry bodies representing change management roles, there are few academic courses designed to cater specifically for such roles and there is no agreed governance for how the roles might be executed or “how ethically regulated change man- agement practice might develop” (Hughes, 2007, p. 47). The growing popularity of the Change Manager role sug- gests a need for professionalization.

In a practical sense, as a result of this study, a set of change management competencies, change related activities and a matrix to assist in decisions about appointment of a Project Manager or Change Manager or both for organizational change projects have been presented. Results support the already well-practiced use of a Change Manager in the man- agement of change and enhance understanding of how the Project/Program Manager and Change Manager relate to one another on change projects. In recruitment for organiza- tional change projects there needs to be consideration for the management of the change and the person who will drive the changes into the organization beyond the daily tasks of man- aging the Project/Program, performed by the Project/Pro- gram Managers. The implications of having this additional role are in changes to the way projects are run, including their governance, reports, and all other project activities as well as the development of new project activities which are change management-specific.

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