The PMO Role in Change Management Ranjit Sidhu

Ranjit Sidhu Director ChangeQuest Ltd The PMO Role in Change Management

© 2015 ChangeQuest Ltd Establishing a PMO function Useful change concepts for establishing a PMO PMO’s role in supporting organizational change What we’ll cover Establishing a PMO function Useful change concepts for establishing a PMO PMO’s role in supporting organisational change 1 2 3

© 2015 ChangeQuest Ltd Establishing a PMO function 1

© 2015 ChangeQuest Ltd Once upon a time an organisation had… No formal PM process or methods Lots of ad hoc and urgent requests Little visibility of progress Poor resource management Conflicting priorities No sight of benefits

© 2015 ChangeQuest Ltd Setting off on the journey Started small – supporting one programme Aim to support project managers Established key milestones Put simple reporting in place Visible improvements

© 2015 ChangeQuest Ltd Taking a steady approach Invested time to listen and understand concerns Chose not to be directive, but gently nudge Pace was set by the project managers More teams came on board Pace of change was slow… but the change was ‘sticking’

© 2015 ChangeQuest Ltd Obstacles and challenges Top two reasons why PMOs are terminated: 1.Organisational restructuring 2.Change in senior management 2015 Global State of the PMO Survey ESI International

© 2015 ChangeQuest Ltd The hero’s journey Adapted from ©Dwight Longenecker Ordinary World Crossing the Threshold Meeting Mentors Trials, and Obstacles Bigger Ordeal Claiming the Prize Integration

© 2015 ChangeQuest Ltd Useful change concepts for establishing a PMO 2

© 2015 ChangeQuest Ltd Kelman’s three levels of adoption Compliance Identification Internalisation Tell them what to do, they’ll have to do it They need to understand why they need to do this and consequences of not changing They need to be able to make decisions about what, why, when and how things are done Which do you want for your PMO ?

© 2015 ChangeQuest Ltd Delivery vs Transition

© 2015 ChangeQuest Ltd Approach to change Approach to change will vary depending on the level of complexity and uncertainty

© 2015 ChangeQuest Ltd Anxiety and resistance Survival anxiety What if I don’t change ? Will I get left behind ? It can’t stay this way! Learning anxiety Will I fail ? Will I be exposed ? Emphasise the WHY and drivers for change Provide coaching, support, mentoring, training

© 2015 ChangeQuest Ltd Bringing about change UNFREEZECHANGEREFREEZE …new mindsets and habits formed and established …a period of confusion, challenge and clarification … Inertia is overcome, and existing habits and mindsets are broken down… Lewin

© 2015 ChangeQuest Ltd Threat vs reward Uncertainty Too many unknowns Lack of information New things to deal with Certainty, information Feeling in control Being listened to Have some autonomy Anxious, think less clearly Willing to learn, motivated THREATREWARD

© 2015 ChangeQuest Ltd Communication and engagement Put yourself in their shoes, consider the impact to them Focus on two-way, face-to- face interactions for greater engagement Segment audiences, to tailor messages Cater for different personality preferences Allow plenty of time Actions speak louder than words

© 2015 ChangeQuest Ltd Stakeholder engagement principles Mayfield (2013) You can forget important stakeholders but they won’t forget you Identification is a continuous practice – new stakeholders emerge, old ones fade away Seek first to understand, and then be understood (Covery, 1999) Emotion trumps reason Demonstration trumps argument

© 2015 ChangeQuest Ltd Monitoring and gathering feedback Gathering feedback from people throughout the change initiative, is essential for monitoring the effectiveness of your change efforts

© 2015 ChangeQuest Ltd Publicise good news stories Create a rumour mill for positive news

© 2015 ChangeQuest Ltd Back at the organisation… Managed to get the new sponsor on side Have a standard PPM framework, but allow flexibility and autonomy High visibility, management reporting Effective resource management, cost tracking and improved delivery Tracking benefits Educating and supporting PMs Starting to develop change management capability within the team

© 2015 ChangeQuest Ltd PMO’s role in supporting organizational change PMO’s role in supporting organisational change 3

© 2015 ChangeQuest Ltd Balancing delivery with change Are there sufficient activities to manage the people side of change ? Has sufficient time been allowed to engage people in change ? Building readiness for change Is a suitable approach applied given the nature of change and culture of the organisation ? Project Plan Change Plan

© 2015 ChangeQuest Ltd Assessing impact of change The severity of the impact depends on: Change ability of the organisation History of change in the organisation Individual responses to change The environment and nature of change Change impact Business continuity Change risks

© 2015 ChangeQuest Ltd Assessing overall impact on the business Change initiative Department A Department B Department C Department D One HHLH Two MLHH Three HMLM An organisational heat map can provide an overview of the number of changes impacting business areas

© 2015 ChangeQuest Ltd Measuring benefits and adoption of change Track and report on how well the changes are being adopted Help put reinforcement strategies in place to ensure the change sticks Track and measure benefits resulting from the change

© 2015 ChangeQuest Ltd Developing change capability Raising awareness for the need for change management Developing change management capability within the organisation

© 2015 ChangeQuest Ltd Integrating project and change management Prosci 2009 edition of Best Practices in Change Management ‘a direct correlation between change management effectiveness and project success – meeting objectives, schedule and budget’ Best Industry Outcomes 2012 ‘shows fewer than 20% of organisations have change management capability. Direct correlation between under utilisation of change management and increase in project failure’

© 2015 ChangeQuest Ltd The PMO role in change management The PMO function has a vital role to play in helping organisations adopt and integrate change management with project management.

Ranjit Sidhu Director Questio ns e t +44 (0) ranjit_sidhu /changequest