Combining Project Management & Change Management Efforts to Boost ROI

    Jun 3, 2021 | Posted by Michael Campbell

    Delivering a project on time and on budget does not necessarily mean that the project's intended benefits and planned ROI are realised. Often projects are delivered and only later face the reality that there was a gap between what returns were expected and what were actually achieved. Any project not considering the integration of change management will struggle to optimise the business results it expects. 

    What are the differences/similarities between Project Management and Change Management?

    Project management and change management are often considered to be the same thing. Although there are some similarities, they are founded from two different disciplines. Both aspects involve the use of people, processes and tools to effectively help organisations reach their project and strategic objectives.

    That said, project management is often more focused on the technical side of change - building the new capability. In a traditional approach it often has a defined start and end date and includes tasks, milestones and final deliverables as well as formally identified processes with desired requirements and goals. It often involves a well-documented and guided processes which has been established through a formal project management body of knowledge. 

    With the more fashionable Agile approaches to project management in use today, while the budget and timescale are defined and constrained, the new capability is built incrementally through a series of "sprints" and often cannot be fully foreseen when launching the project. 

    Change management - the people side of change - is applicable to both the traditional and Agile project management approaches. It too has a documented process for achieving individual and organisational change objectives and is focused on the delivery of ROI from the adoption of the new capability by impacted Line Managers and Front Line employees. Change management milestones can be aligned stage gates in the Project Management lifecycle, for example using the Prosci ADKAR model for individual change, to programmatically ensure adoption and ROI generation.

    If you're interested in learning more about how to integrate change management into your Agile processes, consider the CMC Prosci Virtual Integrating Agile and Change Management 1-day workshop. 

    What benefits flow from integrating Project Management and Change Management?

    Projects often cause stress for stakeholders and employees. Although not universal, in some organisations project managers are becoming responsible not only for delivering the new capability on time and on budget, but also for the realisation of the expected business results and ROI.

    To enable this, change management professionals are increasingly being integrated into project teams and projects managers are increasingly recognising the need for their personal investment in how to do better change management.  Organisations are adopting a variety of team structures to integrate the people, processes and tools of the project and change management disciplines. This change is the ways of working helps to reduce unnecessary stress and anxiety for employees impacted by change, as techniques to ensure effective user adoption of new capabilities are designed into project./change plans right from the outset.

    Overall, organisations should encourage change management professionals and project managers to work closely together to ensure project efforts deliver expected ROI, as well as finish on time and on budget, and reduce the impact of change on the productivity of employees and line managers. Prosci research has shown that projects with excellent change management are 71% more likely to be on schedule and 81% more likely to be on or under budget.

    Download: The Value of Integrating Change Management and Project Management

    Value of Integrating PM and CM Blog Image

    How does change management and project management impact the ROI of change projects?

    ROI of change management is the portion of the ROI on a project, that is directly related to how well  employees respond to the new changes in their working process, which involves adoption and utilisation rates of the new project.  The result of applying change management is the achievement of intended results and outcomes for the project. At Prosci we call this the “people side of change” and we support impacted employees to embrace, adopt and use the new capability.

    The Prosci ROI of Change Management Model depicts three factors in the people side of change that directly improve or constrain the return of investment (ROI) of a project, linking directly to the ROI of change management - speed of adoption, ultimate utilisation and proficiency.

    Have you heard about our Project Management for Change Skills Builder?

    In this virtual or in-person workshop you’ll receive a variety of tools, templates, case studies and execution plans, and gain hands-on, practical experience all under the guidance of a CMC Global instructor with years of experience in Project Management.

    We’ll transfer to you, our knowledge about project management key practices and introduce the standard project management concepts, terms and tools.

    Throughout the day you’ll apply what you are learning to a real or fictitious project.

    You’ll access the CMC Global Project Management for Change Toolkit which is then yours to take away and use!

    It includes tools, templates and videos which recap on key elements. Join us for one of our virtual public workshops in the UK (25th January) or Singapore (22nd January) and South Africa (5th February) time zones, or we can deliver this workshop on a private basis to a group or team members.

    Find out more or Take a look at the leaflet.

    Topics: Enterprise Change Management, change management, Successful Change and Transformation, project management, Project ROI, Change Project, Planning and Executing Change Management

     

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