Evaluate impact of organizational change to project and determine required actions

Organizational change is a reality for any project. In fact, many projects come to life specifically because of changes within an organization, such as when adopting a new technology, branching into new markets, or reorganizing departments. These changes can have profound effects on a project at every stage, from initiation to closing, directly impacting the project’s success or failure.

Understanding these effects is crucial for any Project Management Professional since managing them effectively can significantly increase the chances of the project’s success.

II. Identifying the Potential Impacts

The extent to which organizational change can affect a project depends primarily on the nature of the change. It is essential to understand the different possible impacts:

1. Scope: Changes within organizations can directly alter the scope of the project. A new strategic direction or a shift in business objectives can require the project to be adjusted accordingly.
2. Schedule: Organizational changes might result in new time constraints for the project. New corporate deadlines or competing projects may interrupt the existing project’s schedule.
3. Cost: Changes in the organization may include budgetary changes. Budget cuts or re-allocations can shrink the resources available for the project.
4. Quality: The project’s quality aims, determined by organizational objectives and requirements, can fluctuate if those objectives or requirements change due to alterations in the organization.
5. Risk: Organizational change can introduce new risks or alter the probability or impact of existing risks. It’s crucial to reevaluate the project’s risk management strategy in light of these changes.

For instance, let’s imagine a scenario where a company embarks on a major reorganization and a project underway is expected to deliver a new software solution for the sales department. With the reorganization, a critical stakeholder who was an advocate for the project gets reassigned to a different department. This can alter the project’s overall objectives, delay the schedule, change the scope, and introduce a whole new set of risks to manage.

III. Determining Required Actions

Once we have identified the potential impacts of organizational change on a project, it is crucial to determine the appropriate actions to mitigate these impacts effectively.

1. Rescope: If the project scope changes, swift action must be taken to revise the project plan and align it to the new targets.
2. Reschedule: For changes in project timelines due to organizational changes, you’d have to adjust the project schedule to accommodate these changes.
3. Rebudget: The need may arise to reallocate resources or renegotiate contracts if changes in the organization have an impact on the project’s budget.
4. Restrategize: If project quality targets or risk profiles change due to organizational alterations, adjusting your project’s quality and risk management strategies.
5. Realign Stakeholders: Changes in the organization can impact the power/influence dynamics of project stakeholders. It’s important to reassess and realign the stakeholders’ interests and influences.

Table 1: Required Actions

These adjustments are not standalone actions but should be coordinated together to provide a comprehensive response to the organizational changes. Aim to maintain the equilibrium in the project, keeping the project team informed and involved during the transition.

In conclusion, organizational changes can significantly impact the dynamics and deliverables of a project. Project Management Professionals must be prepared to effectively identify these impacts and take the necessary actions to ensure the success of their projects. The ability to navigate these uncertain waters and adapt to change is an essential skill for every project manager.