A. Title: How to manage a change in the implementation of a project management methodology B. Author:

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1 A. Title: How to manage a change in the implementation of a project management methodology B. Author: Carlos Eduardo Bagatin - HCMMP C. Type of Case: Success D. Project Type: Process Change E. Project Start: January / 2013 F. Project End: December / 2013 G. Total hours spent will Change Management: More than 5000 hours H. Number of people in the Change Management team: 12 people I. Number of full-time people involved in the project: 03 people J. Investment made in the project: Up to $ 100,000 K. Abstract: The company focus theme of this case, it is a Japanese multinational manufacturer of industrial equipment, present in over 15 countries, with headquarters in São Paulo, Brazil, with approximately 200 employees, average revenue annual gross of around US $ 120,000, Analyze the organizational aspects, antagonists, difficulties, impacts on the human level, implementation and development of project management tools in the engineering department of the organization and how these obstacles were overcome through the use of effective change management and efficiency. I- Project Description i. Project Objectives In the year 2013, the affiliate organization located in Brazil takes the decision to implement the concepts and tools for project management methodologies in the engineering department. It was a pilot, because in none of the other fifteen subsidiaries, was used to want some project management methodology in the conduct thereof. The governing body of the organization in Brazil had to take four years, and sought solutions to reduce spending on the implementation of projects as well as improvement in the delivery of quality equipment and services and the consequent increase in the profitability of the projects. In the case of an organization based in Japan, the cultural challenges and resistances, and aspects of Japanese culture itself to be rigid, methodical and conservationist. The company has quite the technological expertise but many difficulties the administration of the processes of the everyday life, conflict resolution, the governing body formed through a functional organizational structure of the type fully vertical. The setting was so negative that all projects implemented in 2012, did not have an acceptable return and customers were complaining about the late delivery of the projects, as well as poor quality of equipment and services. Human Change Management Institute 1

2 ii. key Challenges For the chosen solution had legitimacy and could not be questioned later, a consultancy in project management methodologies was hired. The change in the conduct of projects to the implementation of methodologies based on concepts from PMI and PRINCE2, and adaptation of other frameworks such as COBIT5 (Governance), ITIL, Scrum (Agile), impacting not only the results of the projects, but mainly in people who were involved, and not just those belonging to the engineering department and projects, but all other departments of the organization, such as warehouse, financial, technical assistance, etc. The sponsor of the chosen project was the Chief Financial Officer of the company, with direct support of the President, which was responsible for presenting the decision-making process and the rationale for the other stakeholders. There would be the need to assemble a group of people, which would be responsible for multiplication and communication of the methodology used, and should be represented by at least the following departments: Engineering, Service, Warehouse, Executive Board, Finance, Shopping, Commercial, Control Quality and Human Resources. A project manager was appointed to manage the steering committee, facilitating conflict management, boycotts and resistance. Major Difficulties Since this is a Japanese source company, all kinds of changes were not welcomed by top management. We needed the involvement and commitment of various sectors of the company. Quality, costs, stakeholders, risks, time, etc., depend on the support of other departments, contributing information and helping in the process of continuous improvement. With the organizational structure of the functional and vertical structure company, and many departmental managers with several years of business and nontechnical, they did not understand how this change could improve the company's results, since they were already in the organization for more than fifteen years and the way it had always been done things was the best way. In addition, many did not want to take on new challenges, for or were in a comfortable situation will or about to retire. iii. Project development (change management approach to overcome the challenges and difficulties) The purpose of the project was built on three pillars of the vision and strategic objectives of the company: Human Change Management Institute 2

3 To strengthen these purposes, the identity of the project was built using the following slogan: "Understanding power for Best Answer". Aiming to spread the project management culture, were adopted two paths: Workshops on the subject for all employees, as well as awards for suggestions of innovative ideas, with the goal of optimizing processes and reducing costs. The Change Management followed the phases, as follows: All being guided through the entire cycle for the following activities: Iniciation and Implementation: In this phase, mapping and classification of stakeholders is presented as follows: Human Change Management Institute 3

4 Still in this phase, RACI matrix is performed as follows: The following milestones of change were established: Acquisition Phase: In this phase, the additional needs of technical staff training, as well as risk analysis of cultural clashes between suppliers and staff have been defined. In addition, the roles and responsibilities of the RACI Matrix was validated with suppliers. Execution Phase: In this phase was held the Kick-Off event of the project, with the presence of the main stakeholders. Also prepared an action plan for the conduct of organizational impacts. Human Change Management Institute 4

5 We built WBSOI (Work Breakdown Structure of Organizational Impacts), with the main themes: Human Change Management Institute 5

6 Human Change Management Institute 6

7 Mapping some impacts: Action plan to mitigate the impacts: Also in this meeting it was decided to change the existing organizational structure, which was the functional type, is hierarchically built from top to bottom, for another, called balanced matrix, where the change manager, the project manager, and the other of each sector managers, would share the same level of decision-making power, and would be aligned horizontally. Implementation Phase: In this phase, to be held the meeting of GO / NO GO, it was decided to follow the project through a Pay-Back analysis, key risks, risk management plan, including a contingency plan, tolerances and the official communication to other stakeholders. At this stage were several group dynamics involving people from different sectors. At this time, projected a graph (a kind of "S" curve) to show the amount of time that would be spent in each phase of the change management (hours x months): Human Change Management Institute 7

8 At this stage, we try to put together a SWOT analysis type: Closing Phase: In this phase, during the meeting of "closure", was asked each participant to say a phrase that represented their participation in the project. A large event was held, with the distribution of prizes, delivery certificates and highlights recognition. Also a team relocation plan was drawn up, as well as a support plan to support the project and the changes that could occur after the project implementation. Production Phase: Once implemented the change, we needed that it be sustained until the moment of consolidation and integration will organizational culture, otherwise all efforts would be lost. At this stage, we create change in consolidation indicators, and they are periodically monitored and controlled. To choose the types of indicators, we apply the technique of 5W2H. Human Change Management Institute 8

9 The following indicators were used: Results Achieved: The type of organization where the change project was implemented, would lead any people will give up, even before the start. A Japanese multinational organization, culture and fully rigid conservationist with a strong organizational structure, would not accept any changes. Many of the people involved in the change had years of business and were called the comfort zone. With the engagement of staff changes and the support from the direction of the company, these people go to support and collaborate with the project. After the implementation of a project management methodology, costs fell, profitability improved, sales increased, and customers were more satisfied. Human Change Management Institute 9

10 Left time, something that did not exist before, for the development of new products, and technical and organizational training for employees. The result and impact suffered by the change driven off in a controlled manner, although there are stress peaks, and emergence of new stakeholders opposed to the change. To crown the result, staff changes was invited to implement change in other Latin American subsidiaries. In addition to the business objectives, the legacy left by the project influenced the organization so that today we have a change management office and project management. Lessons Learned: This case demonstrates that the implementation of changes can be managed as a project, and there may be an integration between the two, and increasing the effectiveness of both. It was possible to see that the implementation of changes through project management can be used for various types of organizational changes and the sequential nature of the phases of a change management aligns perfectly with the project management theories. Human Change Management Institute 10

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