Change Kathy S. Schwaig

Objectives Understanding external forces that drive change and the effects of change on the project manager Identifying and handling individual responses to change Surviving professionally in the face of change Managing change

External Forces That Drive Change Expansion of economies to include global markets Abundance of easily accessible information and markets Rapid technological growth and obsolescence Gap between skill requirements and skill levels Constant mergers, downsizing, and buyouts Fluctuating availability and prices of resources Increasing interdependence of systems as oppose to isolated technologies

Effects of Change on the Project Manager Examples of Little changes: new reporting forms, change in specification for a system, new equipment, different purchasing procedures Examples of Major changes: new suppliers, complete re-design of a project at a near ready stage, change in management, acquisition or loss of a highly skilled project team member

TechArt TechArt (fictional company name) is doing well, with many internal projects under way. A facilities project is planning to convert a warehouse into an expanded printing area. Included in this is a reorganization of the current printing area into a larger software design unit and private conference rooms for meetings with clients. The systems area has a cross- departmental project to design an internal communications network to connect all areas, both on-site and off-site. This project affects all functions; marketing, design, production, printing, shipping, accounting, and supplies. Several other internal projects are either ongoing or in the making, including a customer service training program for all employees and a hardware upgrade. These are in addition to external projects with customers. Because the company is doing well with almost no debt, but market share growth is fairly static, the owners have decided to offer the business for sale, to “cash out’ and retire. Investors are in almost daily, and there is some talk about the company going public due to its unique design technology patents

How Can Change Impact a Project Manager…some examples Rumors cause employees to “jump ship” Recruiters and headhunters start calling Project are put on “hold” Project affecting the bottom line are priority #1 Have to recruit new team members Fear, infighting, and negativity All expenditures are more scrutinized

Individual Responses to Change Reaction #1 – Negative Reaction #2 – Accepting Reaction #3 - Inciting

Professional Survival in the Face of Change Develop Awareness of External Factors Recognize Cause-and-Effect Relationships Take Creative Action View Change as Positive

Organizational Approaches to Change Slash and Burn Support and Nurture Inspire and Motivate

Urgent Change Management Challenge #1 – Bailout Prevention Damage Control Challenge #2 - Poor Morale Prevention Damage Control

Ongoing Change Management Set an example Behave consistently Recognize employees for demonstrating creative adaptations Nurture growth in employees Involve employees in setting goals for future competitiveness