The Role of Program Management in an Organisational Change
Organisations generally understand that they need to embrace change in order to remain competitive and achieve strategic goals. However, many struggle to manage all aspects of the change process missing key components as smooth implementation and solid support throughout[1]. To become a master in managing your change management program is a key factor to the success of your organisational change. The simple fact is change have both negative and positive effects in any organisation. Managed poorly, the process creates major problems for the culture and people. Managed well, it provides the platform for growth and success.
Abstract:Organisational change is a huge alteration for any company and can be a dawning task if not managed properly. An organisational change usually consist of a wide range of related change projects and other activities, which align with the overall strategic goal for the future of the company. Program management is a great method to cope with an organisational change, as it consist of a toolbox that evaluate each potential change project. Program management will support managers by providing overview, efficient execution of projects, project alignment, evaluated risks, stakeholder map and create the highest amount of benefits. All which point toward a more effective and efficient change management process. This article focus on how an organisation can manage their change projects through a change management program. Research papers and books regarding change management will form the bases of the change management approach. In addition, program management methods and tools will structure the approach, guarding the overall change process. The result are to be found in the Application of Program Management where the overall subject is discussed. This article is a application-oriented overview and summary.
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Change Management
There is not a single recipe for Change Management that can be applied to all organisations at all times. The subject is simply too complex. The most simplified way of viewing the change process is through Lewin´s three-step change process [J. Hayes, 2010];
All types of change initiatives have to start the change process by unfreezing from their current status quo. When talking about change unfreezing is the first and the most essential change of the whole change process. Unfreezing creates the conditions that facilitate transitioning, moving the organisation to a new state. Viewing at organisational change compared to other change initiatives, organisational change is the most intensive; hence, it got the capability of re-orientate or re-crate parts of or the entire organisation [J. Hayes, 2010].
Change is often managed less effectively than it might be because those responsible for managing it fails to attend to some of the critical factors and aspects of the change process. This issue have already had its impact on organisations whose employees had bad experience with change initiatives, and are more reluctant to change than others. To enable managers to cope with change, the Key Steps In the Change Process are presented [J. Hayes, 2010].
At first glance, it seems like change is a rational and linear process. Nevertheless, this is rarely how it unfolds in practice. The model is a systematic process that guide managers through all the relevant stages that a change initiative have to take into account from planning to implementation. One of the key aspects in the change process is Reviewing and Managing people issues throughout the entire process. Which are the most important factors for the managers to contemplate and manage when initiating in an organisational change, due to the fact that employees are the one whom are able to make the organisational change possible.
Survival of the fittest We all know Darwin´s evolutionary theory[2], including the theory of natural selection. In 1864, Herbert Spence interpreted Darwin´s theory into the financial world, and came up the more popular phrase Survival of the fittest[3]. This might seem fare fetched from organisational change. Nevertheless, organisations have a huge range of operations and systems, which interconnect, but also operate independently - much like the animal kingdom.
The point here is that when an organisation develops a re-orientation or a re-creation of the company, it is time to kill your darlings and manage the change to ensure survival of the fittest operations and systems. A less impactful change can be adopted on strong operations to ensure their survival in the future. Thus making the company future-proof. Another important aspect - previously stated - is managing people issues. If a manager cut an operation of the agenda, the employees feels dumped. Why it is important for the whole organisation to understand that, the overall system gets stronger when some components destroyed or replaced by others Nassim Nicholas Taleb. Here, managers should strive for social coherence and acceptance throughout the entire organisation, to ensure that all parts of the organisation is as ready as possible for the change ahead.
Their are many challenges regarding organisational change. Managers in charge of the operation, must research, analyse and handle challenges carefully in order to succeed. Factors which cause failure [4]. Barriers in Change Management [5], [6]. Best Practice challenges in Change Management [7], Human Resource Best Practice in organisational change [8].
Further investigation on the change process will not be conducted in this article. Relevant literature for managing change are presented here;
2010, The Theory and Practice of Change Management, John Hayes. - 2011, Facilitation Change, Lauge Baungaard Rasmussen. - 1996, Leading Change, John P. Kotter.
When talking about selection of operations and change initiative. A change manager will benefit from evaluating the effect, risk, the amount of resources and a general overview of the different change initiatives ahead. All these aspects can be drawn towards Program Management, which will be explained in the next section.
Program Management
A program is a set of projects identified by a given organisation that will deliver a defined objective. Roughly speaking, a project provide deliverables, program provide benefits and portfolio provide strategic guidance [J. Oehmen, Lecture 6]. A program can only succeed if the projects within the program are completed, and without it the projects will be uncoordinated and not integrated in the final goal. Program management is a structured way of managing change initiative and be proactive towards change, moreover it provides a solid framework for handling complexity and risks [9].
Program Management provide following benefits;
- Definition of projects to generate deliverables that together will provide the desired benefit - Active coordination of project execution - Effecient execution (common governance and processes)
Further difinition; Goal; Deliver benefit: High level objective comprised of multiple deliverables. Role of Change; Change management “creates value”: It is pro-active and adaptive to focus program on an evolving understanding of benefits, capabilities and environment. Relatedness of components; While sub-projects create physically distinct deliverables, there is a strong mutual dependence. Planning; Life-cycle perspective to develop definition of deliverable. Time Scale; Duration of system lifecycle: Years to 10s of years. Effecientcy; Coordination among projects. Effectiveness; Understand and operationalize “benefits”.
The basis of Program Management have now been presented, the following section will briefly describe the methods and tools integrated in the perception of Program Management.
Tools and Methods
Program Managements Performance Domain
PMI: Standard for Program Management, 2013, state following domains which Program Management interact with[10]. Each domain holds different tools and methods which all are useful for managers to cope with organizational change and program management in general. The four elements features; Program Strategy Alignment, Program Benefit Management, Program Stakeholder Engagement, Program Governance and Program Life Cycle Management, each will be explained in the sections below.
Program Strategy Alignment
Strategy alignment will support managers in identifying opportunities and benefits to achieve the organization's strategic objectives through program implementation. For managers to ensure a strategic alignment, the Elements of Program Strategy Alignment is a structured way to get there, it consist of the four elements illustrated in the figure.
Program Business Case, asses balance between costs and benefits of the program. A detailed description of the value the program are to deliver and justification of the resources used in the program. Other relevant elements; Details about problems or opportunities, business and operation impact, cost benefit analysis, alternative solutions, financial analysis, potential profit, social need/coherence, risks and the programs alignment towards the organisations strategic objects.
Program Plan, is the clarification of the organisation´s concept, vision, mission and benefits created by the proposed program. Further more it defines goals and objectives.
Program Roadmap, describe dependencies between major milestones, illustrate the link between planned work and business strategy, reveal gaps – lost time, highlights milestones, summarize objects, challenges and risks, indicate required infrastructure.
Environmental Assessments, help managers to understand the surrounding environment, understand opportunities and threats that are to be exploited and/or mitigated by the program. Other relevant elements would be; SWOT analysis, relevant historical information, analysis and documentation of key assumptions.
