Management of Project Change - Revision history

Tkokotas at 15:38, 18 December 2018

2018-12-18T15:38:17Z

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	~~[[Category:Change Management]][[Category:Project Management]]~~		''Developed by Andreas Vestergaard Andersen''


	Changes occur in almost all projects in all industries. Project changes regularly lead to cost overruns and major delays in connection with significant software and construction projects all over the world. It leads to conflicts and even to great business relationships being destroyed. The reason is often that companies have no project change management strategies and operational procedures. Further, the project management experience handling project changes are limited.		Changes occur in almost all projects in all industries. Project changes regularly lead to cost overruns and major delays in connection with significant software and construction projects all over the world. It leads to conflicts and even to great business relationships being destroyed. The reason is often that companies have no project change management strategies and operational procedures. Further, the project management experience handling project changes are limited.

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	[[Category:Uncertaity]]		[[Category:Uncertaity]][[Category:Change Management]][[Category:Project Management]]

Tkokotas at 12:51, 27 November 2018

2018-11-27T12:51:12Z

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			[[Category:Uncertaity]]

AndreasAndersen at 18:18, 28 September 2015

2015-09-28T18:18:32Z

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	6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.		6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.
	= Limitations =		= Limitations =
	Limitations in use of the above models can be that the contract between the customer and supplier is structured in a way that the models can’t be used. Other project change management processes can also be dictated by the contract. Furthermore, successful project change management requires supplier access to customer information and employees~~. If there is limited access to for example stakeholder information decision basis is be worsened~~. The same applies to the meeting structure. If the company doesn´t have the meeting structure these models require that the meetings needed to discuss and clarify must be changed or it can be difficult for the project team to handle. Also lack of access to the supplier and customer employees with authority to agree and negotiate project changes is a problem when using the above models. The models are somewhat complex and often only applied to large projects. For smaller projects the models are also powerful but should be scaled down. But it is import to stress that the models are scalable.		Limitations in use of the above models can be that the contract between the customer and supplier is structured in a way that the models can’t be used. Other project change management processes can also be dictated by the contract. Furthermore, successful project change management requires supplier access to customer information and employees. The same applies to the meeting structure. If the company doesn´t have the meeting structure these models require that the meetings needed to discuss and clarify must be changed or it can be difficult for the project team to handle. Also lack of access to the supplier and customer employees with authority to agree and negotiate project changes is a problem when using the above models. The models are somewhat complex and often only applied to large projects. For smaller projects the models are also powerful but should be scaled down. But it is import to stress that the models are scalable.

	= Annotated bibliography =		= Annotated bibliography =

AndreasAndersen at 18:17, 28 September 2015

2015-09-28T18:17:23Z

AndreasAndersen at 18:15, 28 September 2015

2015-09-28T18:15:11Z

AndreasAndersen at 18:09, 28 September 2015

2015-09-28T18:09:24Z

← Older revision		Revision as of 18:09, 28 September 2015
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	4) In this phase the supplier must identify and consider possible negotiation variables. This means everything that can be negotiated in the negotiating process. Examples of negotiation variables can be financial elements, contractual conditions, time, cost, etc. By knowing all these different variables prior to an upcoming negotiation it will be possibly to end up with a better outcome for all parties involved.		4) In this phase the supplier must identify and consider possible negotiation variables. This means everything that can be negotiated in the negotiating process. Examples of negotiation variables can be financial elements, contractual conditions, time, cost, etc. By knowing all these different variables prior to an upcoming negotiation it will be possibly to end up with a better outcome for all parties involved.

	5) In this phase all the negotiation variables should be prioritized. Which ones should be part of the negotiation and which should not. What is important at what isn’t? These considerations should be done both from a supplier and a customer perspective.		5) In this phase all the negotiation variables should be prioritized. Which ones should be part of the negotiation and which should not. What is important and what isn’t? These considerations should be done both from a supplier and a customer perspective.

	6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.		6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.

AndreasAndersen at 18:02, 28 September 2015

2015-09-28T18:02:52Z

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	As mentioned earlier, there are many different ways to handle project changes. In best case the companies involved in a project have a model for how the project changes should be handled. In worst case no model is in place and the project change management process is not clear to the parties involved. The project change management process includes every step from agreeing the project scope and deliverables to the successful implementation of the individual change.		As mentioned earlier, there are many different ways to handle project changes. In best case the companies involved in a project have a model for how the project changes should be handled. In worst case no model is in place and the project change management process is not clear to the parties involved. The project change management process includes every step from agreeing the project scope and deliverables to the successful implementation of the individual change.

	Below is an illustration of a generic project change management process <ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, ~~Sveko~~''</ref> that can be implemented in any company or applied to any project rather easily. It is important to notice that all activities in the model are linked to standard project management activities in order to ensure that these are easy to implement without adding new activities to the current project management set-up.		Below is an illustration of a generic project change management process <ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, Sweco''</ref> that can be implemented in any company or applied to any project rather easily. It is important to notice that all activities in the model are linked to standard project management activities in order to ensure that these are easy to implement without adding new activities to the current project management set-up.


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	=Negotiation of project changes=		=Negotiation of project changes=
	When the proposed project changes are completed, they have to be disclosed to the customer and be negotiated. Early discussion and warning of project changes to customers gives a greater negotiating space and opportunities for both sides. This can for example minimize the cost as mentioned in the change and cost curve at model 1. There are different negotiation processes and below is an example of a negotiation process <ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, ~~Sveko~~''</ref> that consists of 6 phases:		When the proposed project changes are completed, they have to be disclosed to the customer and be negotiated. Early discussion and warning of project changes to customers gives a greater negotiating space and opportunities for both sides. This can for example minimize the cost as mentioned in the change and cost curve at model 1. There are different negotiation processes and below is an example of a negotiation process <ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, Sweco''</ref> that consists of 6 phases:

	* 1) What is the project change?		* 1) What is the project change?

AndreasAndersen at 17:50, 28 September 2015

2015-09-28T17:50:12Z

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	4) In the fourth activity there will be a meeting between the customer and the supplier where the potential project changes will be discussed. Here it will be assessed if the project changes should be implemented or not. Further, the scope of the change, the cost of the change and the time of delivery should be discussed and agreed. The agreements should be captured in the change register in order to assure that this serves as a full overview of the project change status.		4) In the fourth activity there will be a meeting between the customer and the supplier where the potential project changes will be discussed. Here it will be assessed if the project changes should be implemented or not. Further, the scope of the change, the cost of the change and the time of delivery should be discussed and agreed. The agreements should be captured in the change register in order to assure that this serves as a full overview of the project change status.

	As it can be very difficult to decide if project changes should be implemented especially when several project changes comes into play and the customer budget for project change is limited. Consequently, a decision model can support the decision making process. In figure 3 a "Project change decision process" is inserted. The process in described in more detail below.		As it can be very difficult to decide if project changes should be implemented especially when several project changes comes into play and the customer budget for project change is limited. Consequently, a decision model can support the decision making process. In figure 3 a "Project change decision process" is inserted. The process is described in more detail below.

	5) In the fifth activity there will be follow up on the execution of the project change and its cost and timely delivery. Furthermore, monthly budget updates will be provided to ensure that the time and cost estimates are met.		5) In the fifth activity there will be follow up on the execution of the project change and its cost and timely delivery. Furthermore, monthly budget updates will be provided to ensure that the time and cost estimates are met.

AndreasAndersen at 17:45, 28 September 2015

2015-09-28T17:45:26Z

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	'''Control of the project basis'''		'''Control of the project basis'''

	The project basis should continuously be collected, agreed and made accessible in all project phases in order to ensure that all project participants work according to the same basis and that all project requirements are known when designing the solution. This applies for ~~client~~ requirements, statutory requirements, user requirements, etc. If these requirements are known and managed at the right time changes due to lack of knowledge of user requirements will be reduced.		The project basis should continuously be collected, agreed and made accessible in all project phases in order to ensure that all project participants work according to the same basis and that all project requirements are known when designing the solution. This applies for customers requirements, statutory requirements, user requirements, etc. If these requirements are known and managed at the right time changes due to lack of knowledge of user requirements will be reduced.

	'''Project reviews'''		'''Project reviews'''
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	1) The first activity should be a part of a standard project kick-off meeting between the customer and the supplier. In this meeting the expectations to deliverables should be aligned and the project change management process should be agreed. One of the biggest problems in relation to project change is that expectations to project deliverables and handling of project change are not aligned. When there is consensus and clarity of these topics the likelihood of project change is reduced and when project change occur there is a clear common understanding between the customer and supplier how this will be handled.		1) The first activity should be a part of a standard project kick-off meeting between the customer and the supplier. In this meeting the expectations to deliverables should be aligned and the project change management process should be agreed. One of the biggest problems in relation to project change is that expectations to project deliverables and handling of project change are not aligned. When there is consensus and clarity of these topics the likelihood of project change is reduced and when project change occur there is a clear common understanding between the customer and supplier how this will be handled.

	2) The second activity will take place after the expectations to the deliverables and the project change management process is aligned between the customer and the supplier. The supplier project team will have a meeting <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> lead by the Project Manager in order to ensure that the full project team understands the delivery process and the agreed project change management process. This will normally be a part of the project team kick-off meeting. This will ensure that the project team members are fully aligned and that the agreements made with the ~~Client~~ are understood. Finally, the project team members jointly identify the possible areas for project change in order to have a common understanding of these. This will ensure greater project change awareness during the project execution both on a conceptual and a detailed level.		2) The second activity will take place after the expectations to the deliverables and the project change management process is aligned between the customer and the supplier. The supplier project team will have a meeting <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> lead by the Project Manager in order to ensure that the full project team understands the delivery process and the agreed project change management process. This will normally be a part of the project team kick-off meeting. This will ensure that the project team members are fully aligned and that the agreements made with the customer are understood. Finally, the project team members jointly identify the possible areas for project change in order to have a common understanding of these. This will ensure greater project change awareness during the project execution both on a conceptual and a detailed level.

	'''The implementation phase''' will begin when the project starts and in this phase potential project changes will be identified and the customer will decide if the project change should be initiated. Finally, there will be continuous follow-up <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> of the project changes. The initiation phase has three overall activities there are marked by a red circle and the numbers 3, 4 and 5.		'''The implementation phase''' will begin when the project starts and in this phase potential project changes will be identified and the customer will decide if the project change should be initiated. Finally, there will be continuous follow-up <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> of the project changes. The initiation phase has three overall activities there are marked by a red circle and the numbers 3, 4 and 5.
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	3) In the third activity the ongoing potential project changes will be identified and collected during the monthly meetings in the project team. As the project goes ahead there will continuously be identified potential project changes and these will be discussed in the project teams. To have an overview of all the possible project changes a change register <ref name="Blog">Egelend, Brad. More on Change Management – The Change Log, 2011''. [http://pmtips.net/Blog/change-management-change-log "'' More on Change Management – The Change Log ''"]''</ref> will be used as seen on figure 2.		3) In the third activity the ongoing potential project changes will be identified and collected during the monthly meetings in the project team. As the project goes ahead there will continuously be identified potential project changes and these will be discussed in the project teams. To have an overview of all the possible project changes a change register <ref name="Blog">Egelend, Brad. More on Change Management – The Change Log, 2011''. [http://pmtips.net/Blog/change-management-change-log "'' More on Change Management – The Change Log ''"]''</ref> will be used as seen on figure 2.

	All potential changes will be listed in the change register. In the change register areas as change initiator, change description, change cost, agreed supplier fee, etc. will be recorded. The project changes should be reflected in the project plan which normally is done as a [[Gantt Chart]]. The change register gives a very good overview of the status for all identified potential and agreed project changes. The change register will be used in meetings with the ~~client~~ and in the project teams.		All potential changes will be listed in the change register. In the change register areas as change initiator, change description, change cost, agreed supplier fee, etc. will be recorded. The project changes should be reflected in the project plan which normally is done as a [[Gantt Chart]]. The change register gives a very good overview of the status for all identified potential and agreed project changes. The change register will be used in meetings with the customer and in the project teams.

	4) In the fourth activity there will be a meeting between the customer and the supplier where the potential project changes will be discussed. Here it will be assessed if the project changes should be implemented or not. Further, the scope of the change, the cost of the change and the time of delivery should be discussed and agreed. The agreements should be captured in the change register in order to assure that this serves as a full overview of the project change status.		4) In the fourth activity there will be a meeting between the customer and the supplier where the potential project changes will be discussed. Here it will be assessed if the project changes should be implemented or not. Further, the scope of the change, the cost of the change and the time of delivery should be discussed and agreed. The agreements should be captured in the change register in order to assure that this serves as a full overview of the project change status.
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	=Negotiation of project changes=		=Negotiation of project changes=
	When the proposed project changes are completed, they have to be disclosed to the ~~client~~ and be negotiated. Early discussion and warning of project changes to customers gives a greater negotiating space and opportunities for both sides. This can for example minimize the cost as mentioned in the change and cost curve at model 1. There are different negotiation processes and below is an example of a negotiation process <ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, Sveko''</ref> that consists of 6 phases:		When the proposed project changes are completed, they have to be disclosed to the customer and be negotiated. Early discussion and warning of project changes to customers gives a greater negotiating space and opportunities for both sides. This can for example minimize the cost as mentioned in the change and cost curve at model 1. There are different negotiation processes and below is an example of a negotiation process <ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, Sveko''</ref> that consists of 6 phases:

	* 1) What is the project change?		* 1) What is the project change?
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	6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.		6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.
	= Limitations =		= Limitations =
	Limitations in use of the above models can be that the contract between the customer and supplier is structured in a way that the models can’t be used. Other project change management processes can also be dictated by the contract. Furthermore, successful project change management requires supplier access to ~~Client~~ information and employees. If there is limited access to for example stakeholder information decision basis is be worsened. The same applies to the meeting structure. If the company doesn´t have the meeting structure these models require the meetings needed to discuss and clarify must be changed or it can be difficult for the project team to handle. Also lack of access to the supplier and customer employees with authority to agree and negotiate project changes is a problem when using the above models. The models are somewhat complex and often only applied to large projects. For smaller projects the models are also powerful but should be scaled down. But it is import to stress that the models are scalable.		Limitations in use of the above models can be that the contract between the customer and supplier is structured in a way that the models can’t be used. Other project change management processes can also be dictated by the contract. Furthermore, successful project change management requires supplier access to customer information and employees. If there is limited access to for example stakeholder information decision basis is be worsened. The same applies to the meeting structure. If the company doesn´t have the meeting structure these models require the meetings needed to discuss and clarify must be changed or it can be difficult for the project team to handle. Also lack of access to the supplier and customer employees with authority to agree and negotiate project changes is a problem when using the above models. The models are somewhat complex and often only applied to large projects. For smaller projects the models are also powerful but should be scaled down. But it is import to stress that the models are scalable.

	= Annotated bibliography =		= Annotated bibliography =

AndreasAndersen at 17:42, 28 September 2015

2015-09-28T17:42:56Z

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	'''The initiation phase''' should begin prior to the start of the project to ensure that the expectations to the project deliverables and the approach to handling project changes are aligned between the customer and supplier. The initiation phase has two overall activities that are marked by a red circle and the numbers 1 and 2.		'''The initiation phase''' should begin prior to the start of the project to ensure that the expectations to the project deliverables and the approach to handling project changes are aligned between the customer and supplier. The initiation phase has two overall activities that are marked by a red circle and the numbers 1 and 2.

	1) The first activity should be a part of a standard project kick-off meeting between the customer and the supplier. In this meeting the expectations to deliverables should be aligned and the project change management process should be agreed. One of the biggest problems in relation to project change is that expectations ~~are not attuned~~ to project ~~the~~ deliverables and handling of ~~possible future changes in a~~ project. When there is consensus and clarity of these topics the likelihood of project change is reduced and when project change occur there is a clear common understanding between the customer and supplier how this will be handled.		1) The first activity should be a part of a standard project kick-off meeting between the customer and the supplier. In this meeting the expectations to deliverables should be aligned and the project change management process should be agreed. One of the biggest problems in relation to project change is that expectations to project deliverables and handling of project change are not aligned. When there is consensus and clarity of these topics the likelihood of project change is reduced and when project change occur there is a clear common understanding between the customer and supplier how this will be handled.

	2) The second activity will take place after the expectations to the deliverables and the project change management process is aligned between the customer and the supplier. The supplier project team will have a meeting <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> lead by the Project Manager in order to ensure that the full project team understands the delivery process and the agreed project change management process. This will normally be a part of the project team kick-off meeting. This will ensure that the project team members are fully aligned and that the agreements made with the Client are understood. Finally, the project team members jointly identify the possible areas for project change in order to have a common understanding of these. This will ensure greater project change awareness during the project execution both on a conceptual and a detailed level.		2) The second activity will take place after the expectations to the deliverables and the project change management process is aligned between the customer and the supplier. The supplier project team will have a meeting <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> lead by the Project Manager in order to ensure that the full project team understands the delivery process and the agreed project change management process. This will normally be a part of the project team kick-off meeting. This will ensure that the project team members are fully aligned and that the agreements made with the Client are understood. Finally, the project team members jointly identify the possible areas for project change in order to have a common understanding of these. This will ensure greater project change awareness during the project execution both on a conceptual and a detailed level.

← Older revision		Revision as of 18:17, 28 September 2015
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	Below are examples of different types of project objectives and stakeholders<ref name="Booklet">'' Guidance on project management. 1.th edition, Danish Standards 2012''</ref> that a project change can affect.		Below are examples of different types of project objectives and stakeholders<ref name="Booklet">'' Guidance on project management. 1.th edition, Danish Standards 2012''</ref> that a project change can affect.

	'''Effect ~~(e.g.)~~:''' Time, Quality, Future proofing, Sustainability, Brand and image, Health and Safety, Etc.		'''Effect:''' Time, Quality, Future proofing, Sustainability, Brand and image, Health and Safety, Etc.

	'''Stakeholders ~~(e.g.)~~:''' The Client, The Clients’ clients, Users, Authorities, Suppliers, Society, Shareholder and investors, Etc.		'''Stakeholders:''' The Client, The Clients’ clients, Users, Authorities, Suppliers, Society, Shareholder and investors, Etc.

	=Negotiation of project changes=		=Negotiation of project changes=
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	6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.		6) In this phase the final dialogue and negotiation with the supplier will be planned before the final negotiation. Here it is very important that all the information and decisions from the five earlier phases are finished and ready for the future negotiation. Furthermore, it will be a good idea to define a starting point, target and pain threshold for each negotiation variable. Finally the supplier must consider the situation from the customer’s point of view. As a minimum the supplier must consider the reaction of the supplier and what types of scenarios that may arise when the negotiations have begun.
	= Limitations =		= Limitations =
	Limitations in use of the above models can be that the contract between the customer and supplier is structured in a way that the models can’t be used. Other project change management processes can also be dictated by the contract. Furthermore, successful project change management requires supplier access to customer information and employees. If there is limited access to for example stakeholder information decision basis is be worsened. The same applies to the meeting structure. If the company doesn´t have the meeting structure these models require the meetings needed to discuss and clarify must be changed or it can be difficult for the project team to handle. Also lack of access to the supplier and customer employees with authority to agree and negotiate project changes is a problem when using the above models. The models are somewhat complex and often only applied to large projects. For smaller projects the models are also powerful but should be scaled down. But it is import to stress that the models are scalable.		Limitations in use of the above models can be that the contract between the customer and supplier is structured in a way that the models can’t be used. Other project change management processes can also be dictated by the contract. Furthermore, successful project change management requires supplier access to customer information and employees. If there is limited access to for example stakeholder information decision basis is be worsened. The same applies to the meeting structure. If the company doesn´t have the meeting structure these models require that the meetings needed to discuss and clarify must be changed or it can be difficult for the project team to handle. Also lack of access to the supplier and customer employees with authority to agree and negotiate project changes is a problem when using the above models. The models are somewhat complex and often only applied to large projects. For smaller projects the models are also powerful but should be scaled down. But it is import to stress that the models are scalable.

	= Annotated bibliography =		= Annotated bibliography =
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	* Ambler W. Scott. The Object Primer, Agile Model-Driver Development with UML 2.0. 3.th edition, Cambridge 2004.		* Ambler W. Scott. The Object Primer, Agile Model-Driver Development with UML 2.0. 3.th edition, Cambridge 2004.
	A very good article that describes some of the elements from the book "The Object Primer, Agile Model-Driver Development with UML 2.0". It gives a good understand of how cost changes over time and shows the different between traditional cost over time and for example cost over time for software development. Furthermore the article describes why it is important to work closely with the stakeholders and gives a good insight in the feedback cycles that are the most effective and financially best.		A very good article that describes some of the elements from the book "The Object Primer, Agile Model-Driver Development with UML 2.0". It gives a good understand of how cost changes over time and shows the different between traditional cost over time and for example cost over time for software development. Furthermore, the article describes why it is important to work closely with the stakeholders and gives a good insight in the feedback cycles that are the most effective and financially best.

	* Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013.		* Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013.

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	= Cost of changes =		= Cost of changes =
	[[File:Traditional cost of change curve 2.gif\|500px\|thumb\|right\|~~Figure~~ 1.Traditional cost of change]]		[[File:Traditional cost of change curve 2.gif\|500px\|thumb\|right\|Model 1.Traditional cost of change]]
	To avoid increased cost it is important to analyze and deal with possible project changes <ref name="Article">'' Ambler W. Scott. The Object Primer, Agile Model-Driver Development with UML 2.0. 3.th edition, Cambridge 2004. [http://www.agilemodeling.com/essays/costOfChange.htm"''Examining the Agile Cost of Change Curve''"]''</ref>. If the project team doesn't have a clear plan for how project changes are handled, the changes could be implemented to late or not being implemented at all.		To avoid increased cost it is important to analyze and deal with possible project changes <ref name="Article">'' Ambler W. Scott. The Object Primer, Agile Model-Driver Development with UML 2.0. 3.th edition, Cambridge 2004. [http://www.agilemodeling.com/essays/costOfChange.htm"''Examining the Agile Cost of Change Curve''"]''</ref>. If the project team doesn't have a clear plan for how project changes are handled, the changes could be implemented to late or not being implemented at all.

	In ~~figure~~ 1 it is shown how cost of change grows over time <ref name="Article">'' Ambler W. Scott. The Object Primer, Agile Model-Driver Development with UML 2.0. 3.th edition, Cambridge 2004. [http://www.agilemodeling.com/essays/costOfChange.htm"''Examining the Agile Cost of Change Curve''"]''</ref>. The graph shows the cost of change on the y axis and time on the x axis. If project changes are handled in an early stage the cost and time consumption will be minimized <ref name="Article 5">Wallace, Simon. Scope & Change Control, The ePM book''. [http://www.epmbook.com/scope.htm"'' Scope & Change Control''"]''</ref>. At an early stage a project change has limited consequences and the impact of the change is small. The change can still be handled in the project planning when the project deliverables have not been produced or delivered. At a late stage where project deliverables have been produced or delivered a project change will lead to costly rework.		In Model 1 it is shown how cost of change grows over time <ref name="Article">'' Ambler W. Scott. The Object Primer, Agile Model-Driver Development with UML 2.0. 3.th edition, Cambridge 2004. [http://www.agilemodeling.com/essays/costOfChange.htm"''Examining the Agile Cost of Change Curve''"]''</ref>. The graph shows the cost of change on the y axis and time on the x axis. If project changes are handled in an early stage the cost and time consumption will be minimized <ref name="Article 5">Wallace, Simon. Scope & Change Control, The ePM book''. [http://www.epmbook.com/scope.htm"'' Scope & Change Control''"]''</ref>. At an early stage a project change has limited consequences and the impact of the change is small. The change can still be handled in the project planning when the project deliverables have not been produced or delivered. At a late stage where project deliverables have been produced or delivered a project change will lead to costly rework.

	In order to avoid late or unforeseen project change different strategies can be applied. Below are three of the most efficient and often used strategies described in brief.		In order to avoid late or unforeseen project change different strategies can be applied. Below are three of the most efficient and often used strategies described in brief.
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	= Process of project changes =		= Process of project changes =
	[[File:Process of the project changes new.png\|550px\|thumb\|right\|~~Figure~~ 2. Process of project changes]]		[[File:Process of the project changes new.png\|550px\|thumb\|right\|Model 2. Process of project changes]]

	As mentioned earlier, there are many different ways to handle project changes. In best case the companies involved in a project have a model for how the project changes should be handled. In worst case no model is in place and the project change management process is not clear to the parties involved. The project change management process includes every step from agreeing the project scope and deliverables to the successful implementation of the individual change.		As mentioned earlier, there are many different ways to handle project changes. In best case the companies involved in a project have a model for how the project changes should be handled. In worst case no model is in place and the project change management process is not clear to the parties involved. The project change management process includes every step from agreeing the project scope and deliverables to the successful implementation of the individual change.
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	'''The implementation phase''' will begin when the project starts and in this phase potential project changes will be identified and the customer will decide if the project change should be initiated. Finally, there will be continuous follow-up <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> of the project changes. The initiation phase has three overall activities there are marked by a red circle and the numbers 3, 4 and 5.		'''The implementation phase''' will begin when the project starts and in this phase potential project changes will be identified and the customer will decide if the project change should be initiated. Finally, there will be continuous follow-up <ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref> of the project changes. The initiation phase has three overall activities there are marked by a red circle and the numbers 3, 4 and 5.

	3) In the third activity the ongoing potential project changes will be identified and collected during the monthly meetings in the project team. As the project goes ahead there will continuously be identified potential project changes and these will be discussed in the project teams. To have an overview of all the possible project changes a change register <ref name="Blog">Egelend, Brad. More on Change Management – The Change Log, 2011''. [http://pmtips.net/Blog/change-management-change-log "'' More on Change Management – The Change Log ''"]''</ref> will be used as seen on ~~figure~~ 2.		3) In the third activity the ongoing potential project changes will be identified and collected during the monthly meetings in the project team. As the project goes ahead there will continuously be identified potential project changes and these will be discussed in the project teams. To have an overview of all the possible project changes a change register <ref name="Blog">Egelend, Brad. More on Change Management – The Change Log, 2011''. [http://pmtips.net/Blog/change-management-change-log "'' More on Change Management – The Change Log ''"]''</ref> will be used as seen on model 2.

	All potential changes will be listed in the change register. In the change register areas as change initiator, change description, change cost, agreed supplier fee, etc. will be recorded. The project changes should be reflected in the project plan which normally is done as a [[Gantt Chart]]. The change register gives a very good overview of the status for all identified potential and agreed project changes. The change register will be used in meetings with the customer and in the project teams.		All potential changes will be listed in the change register. In the change register areas as change initiator, change description, change cost, agreed supplier fee, etc. will be recorded. The project changes should be reflected in the project plan which normally is done as a [[Gantt Chart]]. The change register gives a very good overview of the status for all identified potential and agreed project changes. The change register will be used in meetings with the customer and in the project teams.
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	4) In the fourth activity there will be a meeting between the customer and the supplier where the potential project changes will be discussed. Here it will be assessed if the project changes should be implemented or not. Further, the scope of the change, the cost of the change and the time of delivery should be discussed and agreed. The agreements should be captured in the change register in order to assure that this serves as a full overview of the project change status.		4) In the fourth activity there will be a meeting between the customer and the supplier where the potential project changes will be discussed. Here it will be assessed if the project changes should be implemented or not. Further, the scope of the change, the cost of the change and the time of delivery should be discussed and agreed. The agreements should be captured in the change register in order to assure that this serves as a full overview of the project change status.

	As it can be very difficult to decide if project changes should be implemented especially when several project changes comes into play and the customer budget for project change is limited. Consequently, a decision model can support the decision making process. In ~~figure~~ 3 a "Project change decision process" is inserted. The process is described in more detail below.		As it can be very difficult to decide if project changes should be implemented especially when several project changes comes into play and the customer budget for project change is limited. Consequently, a decision model can support the decision making process. In model 3 a "Project change decision process" is inserted. The process is described in more detail below.

	5) In the fifth activity there will be follow up on the execution of the project change and its cost and timely delivery. Furthermore, monthly budget updates will be provided to ensure that the time and cost estimates are met.		5) In the fifth activity there will be follow up on the execution of the project change and its cost and timely delivery. Furthermore, monthly budget updates will be provided to ensure that the time and cost estimates are met.
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	= Project change decision process =		= Project change decision process =
	[[File:Project change decision process.png\|550px\|thumb\|right\|~~Figure~~ 3. Project change decision process]]		[[File:Project change decision process.png\|550px\|thumb\|right\|Model 3. Project change decision process]]

	As mentioned earlier, it can be difficult to choose between the project changes that potentially could be implemented. Often there is a tight deadline and limited budget and therefore it is not necessarily all project changes that can be implemented. Consequently, it is important to choose the project changes that offer best value for money in combination with the effect for the relevant stakeholders<ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref>. A model to handle the project change decision making process can be seen in ~~figure~~ 3<ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, Sweco''</ref>.		As mentioned earlier, it can be difficult to choose between the project changes that potentially could be implemented. Often there is a tight deadline and limited budget and therefore it is not necessarily all project changes that can be implemented. Consequently, it is important to choose the project changes that offer best value for money in combination with the effect for the relevant stakeholders<ref name="Book">''Attrup Lindegaard, Mette & Olsson Ryding, John. Power i projekter og portefølje. 2. Udgave, Jurist- og økonomforbundetsforlag 2013''</ref>. A model to handle the project change decision making process can be seen in model 3<ref name="Person">''Søren Vestergaard Andersen, Director of Business Process Management, Sweco''</ref>.

	A key parameter deciding if a project change should be implemented is the value for money aspect. In the model the value can be seen at the y axis and the cost can been seen at the x axis. The purpose of the matrix is to decide what changes that are most important seen from a cost and value (cost benefit) point of view.		A key parameter deciding if a project change should be implemented is the value for money aspect. In the model the value can be seen at the y axis and the cost can been seen at the x axis. The purpose of the matrix is to decide what changes that are most important seen from a cost and value (cost benefit) point of view.