IfWI-Konferenz Changes of Projects , Roland Gareis

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1 IfWI-Konferenz 2014 Changes of Projects , Roland Gareis

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3 Context: Results of Recent Research Projects 3

4 Agenda Change objects, types of project changes Learning of a project Further developing a project Transforming or radical new-positioning a project Case Study: Transforming the Project Hospital North

5 Projects & Programs as Objects of Change Social Systems Interactions Organizations Societies Temporary Organizations Permanent Organizations Projects Programs Companies Divisions Departments 5

6 Project Dimensions to be Changed Schedule Scope Costs > Project structures > Objectives, strategies > Scope (objects of consideration, WBS, work packages), schedule > Resources, costs, income, risks > Organization, culture, personnel > Infrastructure > Project contexts > Pre-project and post-project phase > Project stakeholders > Other projects > Company strategies > Investment 6

7 Reasons for Changes of Projects > Interventions from project stakeholders > e.g. project owner, clients, suppliers, authorities, employees > Self-reference of the project > e.g. project workshops, project controlling meetings Clients Project Owner Organization. Employees 7 7

8 Changes (Levy and Merry) 1 st order Change 2 nd order Change > Change in few dimensions > Change in few behavioural aspects > A quantitative change > Change in the content > No change of the identity > A continuity > Change in many dimensions > Change in many behavioural aspects > A qualitative change > Change in the structures > Change of the identity > A discontinuity 8

9 Change Types of Projects high Second Order Change Radical new- positioning a project Demand for Change Transforming a project First Order Change low Learning of a project Further developing a project few Project Dimensions Considered many 9

10 Agenda Change objects, types of project changes Learning of a project Further developing a project Transforming or radical new-positioning a project Case Study: Transforming the Project Hospital North

11 Organisational Learning: Concept > Not only indivduals but also organizations can learn > Organizations have an organizational brain > Organizational learning means that > the organization is considered as a competitive advantage > continuous improvements, small and incremental innovations are promoted > specific processes and methods to assure organizational learning are applied > un-learning is performed explicitly > Organizing organizational learning > Roles: Knowledge manager > Communications: Lessons learned workshop, knowledge management group, quality circle, training, etc. 11

12 Characteristics of the Change: Learning of a Project Reasons > Demand for continuous improvements in the daily project performance from stakeholders clients, suppliers, etc.) > Learning potentials, as a project is relatively unique Objectives > Improving quality > Promoting little innovations Priority > Integrating continuous improvement and innovations into the project Management > Concentrating on a single or a few dimensions of the project > Providing formal structures for the learning of the project (project controlling, lessons learned meetings) > Providing incentives for learning > Applying rituals for de-learning old knowledge Challenge > Reflecting, driving for improvements 12

13 Learning of a Project: Process Acquiring new project knowledge Securing new project knowledge Stabilizing new project knowledge Daily Project Business Tasks > Identifying new knowledge > Documenting new knowledge Tasks > Providing new knowledge (informing, training, ) > Unlearning old knowledge Tasks > Additional informing, training of new knowledge > Applying new knowledge > Reflecting application of new knowledge 13

14 Project Controlling: Basis for the Learning of a Project Project reporting Project (re-)planning Project performance Setting directive project actions Comparing planned and actual data 14

15 Agenda Change objects, types of project changes Learning of a project Further developing a project Transforming or radical new-positioning a project Case Study: Transforming the Project Hospital North

16 Phase Model of Lewin Phase Description Unfreezing > Traditional attitudes are not adequate anymore > Existing patterns of behaviour have to be unfrozen by internal and/or external approaches > Motivation for the change is built up Moving > New, changed patterns of behaviour are to be established > The change shall lead to a new dynamic balance of the oragnization > Experiments with different alternatives are possible Refreezing > The new patterns of behaviour are stabilized > Uncertainties of the invloved are to be reduced by communicating positive developments

17 Characteristics of the Change: Further Developing a Project Reasons > Assuring good project results > Demand for improvements Objectives > Implementing change requests > Promoting improvements, innovations Priorities > Focussing on the project scope, the schedule, the costs > Relating to the project objectives, organization, context Management > Concentrating on a few project dimensions > Assuring appropriate ressources for the further developing of the project > Communicating the further development of the project Challenges > Project sponsor committment > Providing required resources for the further developing of the project 17

18 Further Developing a Project: Process Planning the further developing of the project Implementing the further developing of the project Stabilizing the project Daily Project Business Tasks > Information gathering, e.g. a change request > Information analyzing > Analyzing the impact on the project structures > Planning change actions Tasks > Implementing change action 1- n > Adapting the project plans > Controlling the change actions Tasks > Informing stakeholders about the change > Evaluating the change > Further optimizing the project 18

19 Further Developing a Project because of a Change Request > A change request > usually refers to a change in scope, is a change to the baseline > with impact on the ressources, the budget, the schedule > requires a formal approval > Initiators of a change request > Beneficiary > Authority > Process for managing a change request > Process tasks > Process methods: Change request form, change request log 19

20 Managing a Change Request: Process Start: Demand for a change Filling out the change request form Rough description of the required change Evaluation of the change request Decision about the change request Not good Quality of the change request No Change request to be developed Yes Ok Decision about implementation of the change Description of the required change Change to be implemented Analysis of the impact of the change No Information about decision not to Implement Yes Implementation of the change End 20

21 Project Change Request: Template Initiation CR ID: Requestor: Priority: Low / Medium / High Initiation Date: Title: Reason for change: Short Description of Change : Impact Analysis Change impact related to: Objective: Schedule: Resources: Budget: What is the change request implementation plan? Date: Person in charge for plan implementation: 21

22 Agenda Change objects, types of project changes Learning of a project Further developing a project Transforming or radical new-positioning a project Case Study: Transforming the Project Hospital North

23 Transforming a Project: Characteristics Reasons > Signals about future threats and potentials > Identification of new project opportunities Objectives > Rationalizing > Implementing major project innovations > Strategic and cultural new-orientation Priorities > Developing and implementing new project objectives > Strenghtening project structures and context relations > Redesigning the project scope, schedule, budget, organization, Management > Considering many dimensions of the project > Top down strategy new orientation of the project > Assuring broad involvement and quick wins Challenge > Contradiciton: Hard cuts and new growth 23

24 Transforming a Project: Process Planning the project transformation Implementing the project transformation Stabilizing the project Daily Project Business Tasks > Interrupting the routine > Analyzing the situation > Defining new project objectives > Creating a sense of urgency for the transformation > Developing transformation competences > Rough implementation planning Tasks > Detailed implementation planning > Changing strategies, objectives, scope, schedule, organizations, etc. > Assuring quick wins > Communicating, training > Rough stabilization planning Tasks > Detailed stabilization planning > Adapting the changed scope, schedule, organizations, etc. > Further integrating new values into the project > Communicating, training 24

25 Radical New-Positioning a Project: Characteristics Reasons > Project crisis situation: failures, losses, loosing partners, etc. > Critical relationsships with project stakeholders Objectives > Improving the project results; achieving positive project ratios > Regaining potentials for an efficient project performance Priorities > Focusing on most important objectives > Re- engineering the project structures, reducing the project scope > Keeping qualified members of the project organization > External projects: Liquidity management Management > Formally defining a project crisis > Considering all project dimensions > Strict, results oriented top down management > Involving the project sponsor and external resources > Intensive project communication > Intensive project controlling Challenge > Taking time for appopriate analyses > Loosing old and integrating new project team members 25

26 Radical New-Positioning a Project: Process Planning the project crisis resolution Performing the project crisis resolution Stabilizing the project Daily Project Business Tasks > Interrupting the routine, defining the project crisis > Rough project crisis analysis > Implementing ad hoc measures > Rough planning of the project crisis resolution > Defining the project communication strategy Tasks > Project crisis communication > Detailed planning of the project crisis resolution > Developing organisational & individual competences > Implementing selected strategies, measures > Controlling implemented measures > Formal project crisis closedown Tasks > Detailed project stabilization planning > Adapting the changed scope, schedule, etc. > Further integrating new values into the daily project business > Communicating the new project structures and contexts 26

27 2nd Order Project Changes: Characteristics > High social complexity > Changing the basic project structures > Consideration of many project dimensions > Consequences for everybody in the project organization > Resistance to change of the members of the project organization > Combination with performance of daily project business > High dynamics > Time pressure > Often changing project conditions > Strategies > Hard cuts, new growth > A specific process, specific methods, roles and communication structures > Not: Democracy, involvement of everybody 27 27

28 Agenda Change objects, types of project changes Learning of a project Further developing a project Transforming or radical new-positioning a project Case Study: Transforming the Project Hospital North

29 Hospital North: Objects 29

30 Hospital North: Facts > Development and planning: > Realisation: > Number of beds: 800 > Number of employees: 2000 > Initial investment: 825 Mio 30

31 Hospital North: Boundaries Project Hospital North Vision building, architectural competition Preliminary design Design Construction Utilization Projects & Program-Chain: Hospital North Vision building, architectural competition Project: Hospital North Conception Project: Hospital North Planning Program: Hospital North Realization Utilization 01/ / /2009 Spring/2010 Spring/2010 Summer/2011 Summer/2011 Spring/

32 Program: Hospital North Realization Boundaries Project: Hospital North Planning ICT Planning ICT Preparation Start of Operation Venus Personnel Planning Organisation Planning Personal Preparation Organisation Preparation Start of Operation Hospital North Facility Management Planning Facility Management Preparation Project: Construction Realization Program: Hospital North Realization 32

33 Program: Hospital North Realization Organization Chart Architectural Advisory Board Project Advisory Board Program Sponsor External Project Supervision Project Coordinator City of Vienna Project: Personnel Planning Interim Hospital Management Program Secretariat Medical Coordinator Program Managers Financing Expert Project: Organization Planning User Participation Program Marketing Project: Facility Management Planning Contracting Expert Project: ICT Planning Sustainability Coordinator Project: Construction Realization 33

34 Program: Hospital North Realization Communication Besprechungskreis Abkürzung Dauer in Stunden Frequenz Häufigkeit Wochentag pro Monat Ressourcenbelastung pro Monat Loidl Wölfl Strenn Assistenz Schwarz Linsbauer Hruby Mazakarini Zortea Lambert Bluma Laber Watkins Plundrak Werner Klenkhart Grünstäudl Pankl Pöll/Roth Schultes Wachet Kirchknopf Stohmeier Staudinger Lenz Huemer HTK EHC Statik PS ÖBA BK Jour fixe des Medizinischen Koordinators KAV-JF MK 2 monatlich 1,0 Dienstag 2, KAV-Projektteamsitzung KAV-PTS 2 wöchentlich 4,3 offen 8, Jour fixe KAV-Programmleitung KAV-PL 1,5 wöchentlich 4,3 Mittwoch 6, KOFÜ & Kernteam & Projektteam KAV-KK-P 1,5 monatlich 1,0 Donnerstag 1, KOFÜ & Kernteam KAV-KK 1,5 monatlich 1,0 Donnerstag 1, Jour fixe von KAV-PL und PL Begleitender Kontrolle Jour fixe von KAV-PL, PL Begleitender Kontrolle und PL Projektsteuerung KAV-JF BK 1 wöchentlich 4,3 Donnerstag 4, KAV-JF PS 1 wöchentlich 4,3 Donnerstag 4, Jour fixe von KAV Auftraggeber mit PS KAV-JF PSAG 1 monatlich 1,0 1, Projektkoordinationsbesprechung KAV-PKS 2 wöchentlich 4,3 Donnerstag 8, Baukoordinationsbesprechung KAV-BauKS monatlich 0,0 Controllingsitzung KAV-CO 1,5 monatlich 1,0 Mittwoch 1, Liquiditätsmanagement KAV-LM 1 monatlich 1,0 1,0 Wochen-Vorbereitungssitzung KAV-WoVoSi 1 wöchentlich 4,3 Freitag 4,3 Projektteam Quartalsklausur KAV-Teamkl 4,5 1x pro Qu. 1, Vergaben und Verträge KAV-VV 1,5 14-tägig 2,2 Dienstag 3, Jour fixe der Ombudsfrau KAV-Ombud 1 monatlich 1,0 Dienstag 1, Jour fixe mit der Ombudsfrau (Plansinn) - Anrainerkommunikation KAV-Anrainer 1 monatlich 1,0 Dienstag 1, Projektbeirat KAV-PB 2 halbjährlich 0,2 0, Gestaltungsbeirat innen KAV-GB innen 2 halbjährlich 0,2 0,3 0 Gestaltungsbeirat außen KAV-GB außen 2 halbjährlich 0,2 0,3 0 Koordination Änderungsanträge PS-AEA 1 wöchentlich 4,3 Dienstag 4, Planungskoordinationsbesprechung PS-PKB 3 wöchentlich 4,3 Dienstag 12, BO - Vorabstimmung Leistungsplanung, Org., Pilotierung BO-VLOP 1,5 wöchentlich 4,3 Freitag 6, BO - Leistungsplanung, Org., Pilotierung BO-LOP 1,5 wöchentlich 4,3 Donnerstag 6, BO - Pilotierungen BO-Pilot 2,5 14-tägig 2,2 Donnerstag 5, Personal - Planungsprojektrunden PE-PP 2 wöchentlich 4,3 Dienstag 8, FM-Jour Fixe FM-JF 1 wöchentlich 4,3 Montag 4,3 4 6 FM Betriebsführungskonzepte (wechselnde Zusammensetzung) FM-BFK 2 wöchentlich 4,3 Montag 8, FM interne Abstimmung FM-Koord. 0,5 wöchentlich 4,3 Mittwoch 2,2 2 2 Controllingsitzung Projekt IKT Planung IKT-CO 1 monatlich 1,0 Dienstag 1, Jour fixe IKT - BO - FM IKT-BOFM 3 monatlich 1,0 offen 3, Projektteamsitzung IKT-PT 1,5 14-tägig 2,2 Dienstag 3,2 3 3 Auftraggeberbesprechung IKT- AG 1 monatlich 1,0 offen 1, Jour fixe IKT - Bau IKT-Bau 3,5 monatlich 1,0 offen 3, SUMME 123,

35 Investment Analysis Considering SD Principles Costs and Benefits for the Investor Cost/Benefit Type Cost Description Investment Analysis Benefit Description Consequence Monetary Evaluation Economic Ecologic Social Local Regional Global Services, products Technologies Organization Personnel Infrastructure Financing, Budget Relations to Stakeholders Costs and Benefits for Stakeholders Stakeholder Cost Description Benefit Description Consequence Monetary Evaluation Economic Ecologic Social Local Regional Global Stakeholder 1 Stakeholder 2 Stakeholder n Investment ratios Monetary cost-benefit ratio from the investor s perspective: Utility ratio from the investor s perspective: Monetary cost-benefit ratio including the stakeholders perspectives: Utility ratio including the stakeholders perspectives:

36 Related Investments Analysis Investments of the Vienna Hospital Association (VHA) Identity VHA Hospitals Hospital Infrastructure (central kitchen Etc.) QMATIS IMPULS CSI Unit Dose Shops Hotel Investment Hospital North Private Investments Public housing Heeresspital Investments target area Siemens Town-Countryside management Integration park area Public transport Integration individual traffic Integration bicycle and walk network Development Brünner street Town planning Development, health cluster Infrastructure Railway station Investments of the Municipality of Vienna Investments of Austrian Railways 36

37 Hospital North Planning: Objects of Consideration Object Type Object Buildings Core hospital Venus building Mars building Park, courtyards Transportation areas Medical departments, Medical departments institutions Medical centers Institutes Medical specialty areas Organization Organization chart Role descriptions Communication structures plan Process descriptions Values description Risk management plan Facility management strategy Personnel Personnel groups: management, doctors, nurses, non-medical staff, technical staff Personnel plan Personnel recruitment plan Personnel development plan 37

38 Hospital North Planning: Project Objectives Plan 38

39 Changed Project Dimensions > Scope > Construction of the hospital buildings plus considering the organization, the personnel of the hospital, etc. > Objectives > Differentiation between the objectives of the investment, the several projects, and the program > Differentiation by economic, ecologic and social objectives > Plans > Short-term project schedules, budgets, etc.; mid-term program plans, long-term investment analyses > Considering opportunity costs > Operationalizing the consideration of the sustainable development principles 39

40 Changed Project Dimensions (2) > Risk > Risk reduction by reducing the complexity (definition of different projects, which can be understood, overseen, documented, managed, ) > Different risk analyses for the investment, the project, and the program > Culture > Transparency, risk-orientation, empowerment (by defining the projects-program chain) > Explicit differentiation between the values regarding the hospital, the program, and single projects > Organization > A program management team plus several project organizations (with different project sponsors, project managers, project teams) > Integrative responsibilities of the program sponsor and the program managers > Different communication structures 40

41 Changed Project Dimensions (3) > Personnel > Additional personnel for the management of the program and the projects > Human leadership style: Not being measured only against long-term objectives, being paralized by the overall budget > Stakeholder relationships > Different stakeholders for the program and for single projects > Possibility for differentiated stakeholder participations > Possibility for differentiated reporting to different stakeholders 41

42 Happy Projects! Roland Gareis

43 Project Change Request Log XYZ Change Request Log Project Name: Project ID: 1234 Project Manager XYZ 0 CR No. Title / Short description Requestor (Initiator) Initiation Date CR Priority Assigned CR Status (within the project) To/ Responsible Delivery date Approval date by Steering Committee Initiating business line (stakeholder) Comments High Medium Low Red Yellow Green LEGEND: CR Priority High (legal and/or critical and/or Sponsor requirement) Medium (all the other requirements which doesn't fit to High or Low priority) Low (non-legal and/or non-critical requirements) CR Status Red (deviations of more than 10% vs the planned value (duration, budget, scope)) Yellow Green (deviations of less or equal 10% vs the planned value (duration, budget, scope)) (deviations of less or equal 5% vs the planned value (duration, budget, scope)) 43

44 Integrated Change Control > Ensuring that only approved changes are implemented > Reviewing, analyzing and approving change requests promptly > Managing the approved changes > Reviewing, approving or denying recommended corrective and preventive actions > Coordination changes across the entire project (e.g. a schedule change may affect cost, risk, quality, and staffing) 44

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