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2.01 - Managing Change

A Change Programme is an integral part of a business strategy. It consists of a set of projects focused on important business targets with time and performance monitoring milestones. A formal and disciplined project organization structure is necessary to achieve results.

Typical Business Targets for a Programme of Projects

  • Improve stock turnover ratio by three times
  • Double the Sales per employee ratio
  • Halve the ratio of indirect and staff to directs using natural groupings
  • Halve the new product introduction time
  • A full time project team or task force resource is essential, as is a professional managed programme.

Project Management

  • It is essential to have a full-time, trained and line responsible project manager.
  • A core management steering group to make quick decisions, act as resourcing committee and support a parallel quick hit programme
  • A visible project plan with key milestones
  • A programme planning and audit function

Programme Management - Structure

Project Selection

There are two groups of projects. Each business needs to prioritise and select those which are necessary to achieve its competiveness targets.

Level 1

Strategic restructuring projects aim to simplify and re-shape complex traditional systems and structures to improve and support fundamental business processes. The target is a driveable platform from which world class competiveness can be achieved.

Typical Level 1 support projects are:-

  • Business competitive audit appraisal
  • Manufacturing System Re-design
  • Organization Re-design
  • IT Strategy and Applications
  • Post –acquisition synergy achievement
  • Product introduction design
  • Supply Chain Management

Level 2

Support systems projects then act as the source of consolidation and further improvement and drive the re-structured business, so meeting the desired level of competitiveness

Typical Level 2 Support Projects are:-

  • Quality and Reliability Systems
  • Product groups Costing system design
  • Skills grouping, job structure design
  • Continuous improvement system design
  • Design for Manufacture, assembly and to cost
  • Materials Flow Management System design
  • Performance audit and follow-up

Practical Arrangements for Getting Started

An initial executive management workshop

  • Team building training for each project team or task force
  • Making the change programme visible and using Project Management practices
  • Using disciplined project management approaches
  • A good communication system
  • Parallel implementation of quick hits to demonstrate early success

A General Managers Typical Programme

General Managers View of Project Progress

Further Reading