Learn how weaknesses in project management and in project governance are common reasons for project failure.
Organizational change is risky and reported failure rates for transformation projects are high. Projects often fail because of an over-emphasis on the “science”, or the tools and techniques, of project management and a lack of attention to the “art”, or the people-related aspects of organizational change. Weaknesses in project management and in project governance are common reasons for project failure when an art and science-based approach to transformation is not adopted. The Executive Sponsor of an organizational change project plays an important role in ensuring the success of the transformation using an art and science based approach in these areas.
Effective governance of a transformation project involves establishing a strong governance structure and effective processes; ensuring that the project is executed to high standards of ethics, transparency and accountability, and ensuring that the interests of relevant stakeholders are represented in the initiative and that these stakeholders are kept adequately informed of project progress and consulted as necessary.
Preparing the organization for a successful “art and science” based transformation consists of two key responsibilities: selection of the Project Manager and conducting an organizational change readiness assessment. The Executive Sponsor should determine the types and balance of art and science skills needed for management of the transformation project, and ensure that selection tools that effectively assess both types of skills are used. Staff surveys and interviews can be used to investigate the cultural and people-related aspects of cultural readiness, but there is also a needed to analyse the organization’s “systemic change shaping levers” such as the compensation and rewards system and the performance management system. Based on the findings of the change readiness assessment, the Executive Sponsor should work with the Project Manager and other stakeholders on initiatives to improve change readiness if necessary.
Finally, the Executive Sponsor plays an important role in ensuring that project achieves the desired transformation objectives and not just its operational goals. To do this, they must first ensure that the project’s goals properly reflect the strategic objectives of the transformation and are aligned with the organization’s core values and purpose. They will also act as the executive level connector and facilitator, ensuring that relevant senior stakeholders are aware of their own roles and responsibilities with regard to the project and representing their interests and perspectives to the Project Manager.
To effectively carry out their role on a transformation project, the Executive Sponsor, like the Project Manager, needs the right combination of art and science skills. An effective Executive Sponsor will possess good political acumen, negotiation and communications skills and the ability to form trust-based relationships with stakeholders, among other art skills. They also need a broad awareness of the “science” of project management and transformation in order to work effectively with the Project Manager, ensure that a systematic approach to the project is followed, and understand quantitative performance measures and their implications.
Together, the Executive Sponsor and the Project Manager must possess the right combination of art and science skills, which will vary depending on factors such as project complexity and numbers of stakeholders. Getting the right balance of art and science is the key to successful transformation.
The Reasons for Transformation Project Failure
In today’s fast changing business world, organizations of all types and sizes must continually transform in order to remain competitive and efficient. But change is inherently risky, and reported failure rates for transformation projects are high. Projects often fail because of an over-emphasis on the “science”, or the tools and techniques, of project management and a lack of attention to the “art”, or the people-related aspects of organizational change. Weaknesses in project management and in project governance are common reasons for project failure when an art and science-based approach to transformation is not adopted. The Executive Sponsor of an organizational change project plays an important role in ensuring the success of the transformation using an art and science based approach in these areas.
The Complementary Roles of the Executive Sponsor and the Project Manager
Both the Executive Sponsor and the Project Manager of an organizational change project need to possess excellent art and science skills in order to be able to work together successfully to bring about a successful transformation.
The Executive Sponsor represents the interests of the organization as a whole in relation to the project, and is in turn accountable to the organization, via the project Steering Committee, for the achievement of the top-level transformation goals. Their role with regard to the transformation can be compared with that of a Chief Executive Officer (CEO) of a corporation.
The Project Manager is accountable to the Executive Sponsor, and is primarily responsible for the successful operational implementation of the project to enable it to meet its transformation goals. Their role on the project is similar to that of the Chief Operating Officer (COO) of a corporation.
The role of the Executive Sponsor consists of three main responsibilities: project governance, preparing the organization for a successful “art and science” based transformation, and ensuring that the project achieves its transformation goals as well as its operational goals.
Project Governance
Effective governance of a transformation project involves establishing a strong governance structure and effective processes; ensuring that the project is executed to high standards of ethics, transparency and accountability, and ensuring that the interests of relevant stakeholders are represented in the initiative and that these stakeholders are kept adequately informed of project progress and consulted as necessary.
The main tool through which a transformation project is governed is the project Steering Committee, along with the decision-making and communications processes that are established for use by this Committee. The Committee represents the interests of the organization as a whole in relation to the transformation, and the Executive Sponsor should ensure that all relevant areas are represented.
The Executive Sponsor should ensure that project governance draws effectively on art and science. The use of formal, systematic methods and structures for decision-making and performance monitoring is important in project governance, to provide concrete evidence that a project is being well managed and can achieve its strategic transformation goals as well as its operational goals. But effective governance also requires the use of soft skills, such as strong leadership, sound judgement, excellent interpersonal skills and the ability to reach a consensus and a shared vision.
Preparation for a Transformation Initiative
Preparing the organization for a successful “art and science” based transformation consists of two key responsibilities:
1) Selection of the Project Manager: This involves determining the types and balance of art and science skills needed for the transformation project, and overseeing the selection process to ensure the right person for the job is appointed. The Executive Sponsor should work closely with the HR department to ensure they understand the art and science skill requirements and use selection methods and tools that suitable for assessing both types of skills.
2) An Organizational Change Readiness Assessment: The use of a tool such as Schroeder & Schroeder, Inc.’s Organizational Change Readiness Assessment System (OCRAS)TM can help ensure that all possible risks to a successful transformation can be identified and addressed, and that the transformation objectives can actually be achieved. This includes:
• Analysis of the organization’s “systemic change shaping levers” such as the compensation and rewards system and the performance management system, which promote or hinder particular types of attitudes and behaviours among organizational members.
• The use of an organizational climate survey and interviews to investigate “cultural change readiness” by exploring people- and cultural-related factors, that may promote or hinder successful transformation. These might include, for example, leadership styles, staff morale and the importance of team working in the organization.
Based on the findings of the change readiness assessment, the Executive Sponsor can work with the Project Manager and other stakeholders on initiatives to improve change readiness. For example, cultural changes might be achieved using better communications about the reasons for the changes, and by directly involving employees in implementing the project goals in their own areas of work to increase their sense of ownership of the project.
Achieving the Strategic Transformation Objectives
Finally, the Executive Sponsor plays an important role in ensuring that the project achieves the desired transformation objectives and not just its operational goals. To do this, they must first ensure that the project’s goals properly reflect the strategic objectives of the transformation and are aligned with the organization’s core values and purpose.
They will also act as the executive level connector and facilitator, ensuring that relevant senior stakeholders are aware of their own roles and responsibilities with regard to the project and in turn representing the interests and perspectives of these stakeholders to the Project Manager so that these are incorporated in project plans and budgets.
The Executive Sponsor should also monitor project progress against the transformation goals, working with the Project Manager to define appropriate qualitative as well as quantitative indicators, for example relating to changes in employee attitudes or behaviours.
The Need for Art and Science in Executive Sponsorship
To effectively carry out their role on a transformation project, the Executive Sponsor, like the Project Manager, needs the right combination of art and science skills. An effective Executive Sponsor will have art skills that include:
• An astute understanding of organizational “politics” and how these affect stakeholder perspectives and interests in a project.
• The ability to negotiate effectively to reconcile conflicting interests in the project while meeting the needs of the organization as a whole.
• Excellent communications – to represent the project effectively to internal and external stakeholders at differing levels of seniority.
• The ability to use “whole brain” thinking to identify and understand the full range of project opportunities and risks, including qualitative factors relating to culture and people.
• The ability to form trust-based relationships with stakeholders.
Though the Executive Sponsor does not need such detailed “science” skills as the Project Manager, the following are important for their role:
• Broad awareness of project management methods and techniques, to understand and interpret project management plans and reports, and to communicate in the “right” language with the Project Manager.
• The ability to understand and interpret quantitative performance indicators.
• The ability to implement a systematic, comprehensive approach to project governance.
Together, the Executive Sponsor and the Project Manager must possess the right combination of art and science skills, which will vary depending on factors such as project complexity and numbers of stakeholders. Getting the right balance of art and science is the key to successful transformation.