In the first part of this article with the evocative title "Implementation of projects: Reality and planned progress usually diverge greatly. Does that have to be the case?" was about commonly underestimated influencing factors - those that so often cause projects to fail. You can find out what companies need to do differently in order to make their projects a success in part two of this blog post, which deals with the use and approach of professional and holistic change management. Among other things, you will find clear step-by-step instructions on the enormous difference this makes in the long term in terms of budget requirements and the specific influencing factors that need to be kept in mind.

What can be done differently with professional change management?

Above all, the process and focus of the activities change radically compared to the classic project approach.

1. Step: Analysis of the company's change culture. The potential for change and the company's past experience of change are examined here.
2. Step: Analysis of existing resources and qualifications. The focus here is both on the people who can manage change and on their capacity utilization. As a rule, the "burden is always placed on" the same people in the company. It is important to note that the individual cannot focus on both the business and the change process at the same time.
3. Step: Decision on the change process. Who, how and how many resources are needed to ensure the change process.
4. Step: Planning and decision regarding the actual project.
5. Step: Joint project implementation using all available resources. Clear definition of overall responsibility between project management and change management.

What does holistic change management cost?

As shown above, the process flow changes significantly. Consequently, this also applies to the budget process. This is illustrated in the following diagram.

For the process controlled by professional change management, it is advisable to use significantly more resources at the beginning of the process for the phase of specifications, definitions and preparations for change. This is where the mammoth share of the subsequent success is deployed. This is why the best resources are called upon here and a high concentration of primarily conceptual and communicative activities required.

This budget process as part of holistic change management has proven to have several advantages:

• Budget control becomes much more transparent and simpler
• The risk of a "cost explosion" in a late project phase is significantly reduced (sunken costs)
• The main risk factors for failure (soft facts, emotional facts) are actively addressed at the beginning and not only when they have already led to massive disruptions.

Of course, the total costs of such a process with the use of professional, external change management are higher than with traditional planning: according to experience, depending on the company and complexity of the project, around 15 and 25 percent of the planned budget. Compared to the costs that may be incurred - for example due to delays, resistance, readjustments, restarting or even total failure of the project - they are comparatively low. This is particularly true if the hidden costs of a project failure are also taken into account, as well as not only the external but also the internal costs/expenses.

Summary, or: Why are projects not made more effective in practice through holistic change management?

There is a great deal of project experience in the SME sector and a large number of projects are constantly being defined, initiated and implemented. In times of high vulnerability and instability, as we are currently experiencing, and the need to constantly redesign and reshape the organization of the business, the need to implement these changes through projects is also increasing.

When questioning the success of projects and the difficulties encountered, it is easy to identify a commonality in the answers. Project success fails because of the "little" things:

• on the soft facts
• invisible values, behavior, fears, concerns
• inadequacies, inconveniences, lack of guidance and orientation
• communication, persuasion and motivation
• ... ultimately because of the all-too-human factors.

Or as a former teacher of mine used to say: "...it's human again in the company...". In other words: if we pay due attention to the "human touch" and influence it successfully, then our projects win.

As a rule, everyone is aware of this. And yet, in far too few cases are these factors taken into account in project planning and management from the outset. Often only when significant disruptions occur or the project failsyou remember what you already knew beforehand. In this respect, this article is a further plea for a well-known fact:

Systematic and holistic change management makes projects much more effective and successful.

Editor's note: Also read part one of this double post: Implementation of projects: Reality and planned progress usually diverge greatly. Does that have to be the case?

(Cover image: © Jacob Lund | Fotolia)