1. Week 4 – Managing Transformational Change

2. Using Project Management as an Organizational Change Tool
Transformational change affects strategy, processes, organizational systems and people.
However, such change often involves uncertainty, fear, and resistance by people across the organization.
Oftentimes strategic programs (a group of related projects) are used to attempt transformational change.

3. Using Project Management as an Organizational Change Tool
Projects are ideal mechanisms for implementing transformational change because they can transcend organizational processes and systems.
Cross-functional project teams can also more completely assess the impacts of potential change actions. These teams may also calm people, since their area is often being represented on the project team.

4. Using Project Management as an Organizational Change Tool
However, even smaller non-strategic projects often face strong resistance and often sabotage from organizational members who may fear a loss of power or responsibility.
Thus, a project manager attempting transformational change must have two qualities:
Superb people skills and
Strong and clear top management support of the project and a clearly articulated strategy

5. Using Project Management as an Organizational Change Tool
As suggested in the 10 guiding principles addressed in week 1, the project manager must collect a wide variety of facts and perform thorough analysis. This is needed not only to understand systems and formal processes, but the informal structure, people with power, and the culture of the organizations. Some organizations are more open to change than others.
Top management must be unwavering in its support for transformational projects.

6. Using Project Management as an Organizational Change Tool
Unwavering top management support is not always easy to give, particularly when some parts of the project are attacked as being unnecessary or poorly implemented.
To have any chance of success, the project manager and the project team must have both strong task-oriented skills and people- oriented skills.

7. Using Project Management as an Organizational Change Tool
A project manager who has the ability to empathize with and understand the concerns of people within the organization is often successful in allaying peoples’ fears.
The key is “trust.” The project manager must know how to build it, and more importantly, know how to maintain it. Telling the truth is essential.

8. Using Project Management as an Organizational Change Tool
This brings up to two primary issues:
What should be done with people who remain resistant to the point of damaging the transformational change?
How should the project manager communicate to people in the organization in situations where significant downsizing will be necessary?

9. Using Project Management as an Organizational Change Tool
These are not easy questions to answer.
In some situations the project manager, or perhaps more appropriately the project sponsor, should take actions which might lead to the termination of the employee involved.
The announcement of the need for downsizing should be made by top management very early if not before the project is started. Thus, the project manager does not have to hedge when addressing these questions. Of course, this will probably increase resistance to the project.

10. Using Project Management as an Organizational Change Tool
As mentioned before, the successful project manager must also be task-oriented.
Schedule delays, cost overruns, or scope deficiency can be viewed as project weaknesses.
This provides strength to change resisters and should not be underestimated.
Finally, as the following case demonstrates, transformational change can be secret as well as open.

11. Secret Strategic Transformation – A Case Example
The book, The Soul of a New Machine, explained how Data General Corporation’s Eagle super mini-computer was developed in the early 1980s. Tom West, the project leader, had convinced top management to allow him to run a parallel development effort in the basement of the Massachusetts headquarters. Data General had just opened a new research and development center in North Carolina and the bulk of the development resources naturally went there. Tom West had sold his secret project as an insurance policy. Data General was falling behind in the market place and needed a new 32-bit machine quickly in order to be competitive. As it turned out,  the Massachusetts team actually developed a superior computer in record time with minimal resources. It went to market in 1981.

12. Secret Strategic Transformation – A Case Example (Continued)
Yet, despite its obvious success, the ending to this story wasn’t exactly pleasant. Most of the project heroes were not rewarded. Although Tom West received a major promotion, many other team members felt unappreciated by the company. Many team members were transferred to the North Carolina research center, where they were seen as trouble-makers who had made the North Carolina operation look bad. Several people left soon after project completion. On the other hand, many team members were quoted as saying that the intensity and personal accomplishment of doing something great made it all worthwhile, despite subsequent events.

13. End of Managing Transformational Change