Managing the financial impacts of change

I've had a few discussions lately about financial control in a change and project environment. Too much to discuss in detail here, but here's a 'top of my head' list of the things that you might do to keep financial control of your project;

• Build a narrative business case, and detailed plan;
• Align that to detailed numbers - implementation (revenue) expenses, capital expenses phased to show cashflow (cash is king!), and benefits case - what will be delivered when and what will the real impacts be;
• Develop a risk weighted NPV - use factors such as 'do we know how to do this?', 'do we have the resources?', 'budget?' to show an NPV - over time improve the NPV by adjusting the risk factors as you satisfy yourself that you can achieve it. The NPV (or ROCE) is a great measure to show expected financial outcomes.
• use qualitative measures to support your numbers (which of course you will monitor in detail weekly/monthly!) - are deliverables being completed or is there a bow-wave of activity building up with consequent cashflow impact, are the numbers and criticality of open issues/risks increasing etc
• Use graphs to compare measures - see the relatives as well as the absolutes.
• Make sure any numbers that you use are reconciled to source data (ie; are accurate), and preferably 'triangulated' to two sources

With proper (basic) systems and processes, much of this monitoring can be automated!

Enough for now!

Why do we deliver change...to create value

We deliver change to create value - that's it. I've written on this subject before but given one or two discussions I've had recently thought it worth reiterating the point.

Change is a difficult thing. But it must always have an ultimate goal - in corporate life we deliver change because it creates shareholder value (it is difficult to see any other reason), and in the social and governmental sectors we might go through a change programme to establish some social or environmental improvement. Why would you go through potentially gut-wrenching change for no good reason?

Facilitation for change - tools to support us through change

I've been along to a meeting today - these folks are all professional facilitators based in central England, and much of what they do is help groups of people achieve their change goals (as well as mediation, public policy and loads of other things). It is a long time since we could rely on things to 'just happen', and facilitated workshops, conferences, meetings etc help in ensuring that objectives are achieved.

This got me thinking - as change consultants/change managers what do we have in our armoury to help us through some really tricky people-related change activities. Here's my list off the top of my head...

• processes to support change analysis
• project and programme management approaches
• Communications expertise; and
• Professional facilitation of course

....but other than experience and common sense probably not a lot else.

If you want to get in contact with any of the UK Facilitators let me know.

Project Management and Change Management

There is a debate going on in another forum about the use of structured project management methodologies (eg; Prince 2) versus the management of change. We need to be clear that project management is not the same as change management - managing the project is part of managing the change, but it is a relatively mechanistic process, providing the assurance of technical delivery and to some extent the delivery of the benefits. Change management is about delivering the behavioural change that ensures that the benefits endure, that the technical changes are accepted, and that the expected outcomes are achieved.

Another way of looking at this is that there are many more people involved in delivering the change (the sponsor, Board, managers etc), whereas the project processes can be delivered by the Project Manager (who, if they are enlightened/experienced will be focussed on delivering the change as well as the technical delivery).

One thing that annoys me is where some third party suppliers/partners (in IT particularly) tend to come along after winning a contract and expect that they can simply implement their bit of technology and it will work and be accepted - they often get a shock and then cost overruns etc, and consequently relationships start to fail between supplier and customer....the real world is difficult!

Here's a link to a basic project/change role comparison from the change management learning center if you're interested.

Change training and development

I was asked today about change training and development.

I know there are a few public courses around, but in my view bespoke training related to a particular business sector is most helpful - different sectors tend to have different challenges, ways of operating, language etc, and all of these things are important in how people act and react to change. Probably the best course that I've run is a focussed 'advanced' training within the Financial Services sector, based on 'real-life' case studies and a little bit of role playing. This allowed participants to establish an approach to managing through change (at a very high-level inevitably) in a safe environment - and its loads of fun too!

If training can be supported by mentoring, so much the better.