Tilda Publishing
Project Management
Why Change Management Matters for Project Success
Imagine a tree standing tall, its branches stretching toward the sky, full of leaves and fruit. To an observer, the tree’s growth and strength seem to come effortlessly. But beneath the surface, hidden from view, lies an intricate root system—twice as large as the tree itself. These roots provide stability, absorb nutrients, and ensure resilience against storms. Without strong, well-maintained roots, even the mightiest tree can wither, break, or be uprooted by sudden changes in the environment.
A project works the same way. Clients, stakeholders, and teams often focus on the visible aspects—deliverables, deadlines, and budgets—without realizing that the foundation of a successful project lies in its management processes.
According to the PMBOK 7th edition, one of the crucial activities for a project manager is Tailoring—selecting the best approaches and methodologies to guide a specific project toward success. In this article, I’d like to take a closer look at one such critical set of processes: change management.
Now, let’s explore why change management is crucial and how to integrate it into your projects effectively.
According to the PMBOK 7th edition, one of the crucial activities for a project manager is Tailoring—selecting the best approaches and methodologies to guide a specific project toward success. In this article, I’d like to take a closer look at one such critical set of processes: change management.
Now, let’s explore why change management is crucial and how to integrate it into your projects effectively.
What Is a Change?
A change is any deviation from the previously approved baseline plan. It can impact the project’s key constraints: schedule, scope, and cost, as well as quality and stakeholder satisfaction. Ideally, a change affects only one of these elements, but in reality, it often influences all of them.
For example, consider a project with a two-month timeline and a budget of $10,000. The client requests an additional task, which extends the project by two weeks and increases the cost by $3,000.
Once the new timeline and budget are approved, the project's baselines are updated, incorporating the additional work into the scope. As a result, the schedule extends to 2.5 months, and the cost baseline increases to $13,000. In this case, all three baselines—scope, schedule, and cost—have changed.
This is why change management is called integrated: modifying one baseline often leads to adjustments in the others. Modern project management software, such as Microsoft Project, links these baselines together, ensuring that a change in one automatically updates the others. This functionality makes change management much more efficient.
For example, consider a project with a two-month timeline and a budget of $10,000. The client requests an additional task, which extends the project by two weeks and increases the cost by $3,000.
Once the new timeline and budget are approved, the project's baselines are updated, incorporating the additional work into the scope. As a result, the schedule extends to 2.5 months, and the cost baseline increases to $13,000. In this case, all three baselines—scope, schedule, and cost—have changed.
This is why change management is called integrated: modifying one baseline often leads to adjustments in the others. Modern project management software, such as Microsoft Project, links these baselines together, ensuring that a change in one automatically updates the others. This functionality makes change management much more efficient.
Where Do Changes Come From?
Changes in a project can arise from various sources, including:
Change is inevitable. New information constantly emerges, and market conditions can shift at any moment. Therefore, telling a client, "Hold off on new ideas until we finish the project, and then we’ll discuss them," is an unrealistic approach—yet it's a common mistake among novice project managers.
Agile methodologies encourage us to embrace change—and for good reason. Without adjustments, clients might end up with products that are outdated before they even launch.
For instance, if a competitor plans to release a similar solution within six months, the project timeline may need to be accelerated to maintain a competitive edge. Or, suppose a new regulation requires real-time tax reporting for all transactions; this would necessitate modifications to the system under development.
- Shifts in business goals and priorities.
- Incorrect assumptions, unforeseen issues, or emerging risks.
- New information discovered during project execution.
- The addition or replacement of a stakeholder.
- Regulatory or legal changes that affect project requirements.
Change is inevitable. New information constantly emerges, and market conditions can shift at any moment. Therefore, telling a client, "Hold off on new ideas until we finish the project, and then we’ll discuss them," is an unrealistic approach—yet it's a common mistake among novice project managers.
Agile methodologies encourage us to embrace change—and for good reason. Without adjustments, clients might end up with products that are outdated before they even launch.
For instance, if a competitor plans to release a similar solution within six months, the project timeline may need to be accelerated to maintain a competitive edge. Or, suppose a new regulation requires real-time tax reporting for all transactions; this would necessitate modifications to the system under development.
How to Manage Change in a Project
The change management process typically follows these steps:
1. Identifying the Change
The process begins with a Change Request Form, usually available online (e.g., Google Forms). The requestor’s name and submission time are recorded automatically, leaving only the description of the requested change to be filled in.
Stakeholders often communicate change requests informally—via calls, emails, or chat messages. While these spontaneous ideas may seem promising at first, writing them down often reveals flaws. Additionally, a formal request process ensures that no changes are forgotten or overlooked.
2. Clarifying the Change Request
Once a request is received, the project manager must confirm their understanding. If necessary, they should seek clarification from the requestor and document the refined details in the Change Request Form.
3. Assessing the Complexity and Feasibility of Change Analysis
Some change requests are so complex that evaluating their impact alone can take weeks. In such cases, an effort estimate for the analysis must be prepared and approved by the project sponsor before proceeding further.
4. Evaluating the Impact on Scope, Schedule, Cost, and Quality
The project team must assess how the requested change will affect:
5. Evaluating Costs, Benefits, and Alternative Solutions
There are usually multiple ways to implement a requested change. However, stakeholders may not always suggest the most efficient solution. It is up to the project team to explore alternative approaches that achieve the same result with less effort.
6. Estimating the Cost of the Change
At this stage, the project team calculates the effort, cost, and time required to implement the change using different alternatives.
7. Approving or Rejecting the Change
The project sponsor reviews the proposed alternatives, selects one, and approves the necessary resources. Once approved, the project team incorporates the change into the workflow.
8. Updating Project Documents and Implementing the Change
After approval, new tasks must be added to the Work Breakdown Structure (WBS), budget, and schedule before actual implementation begins.
9. Documenting the Decision and Informing Stakeholders
Before implementing any change, documentation must be updated to reflect how the system currently operates. This ensures traceability and helps diagnose future issues if they arise.
1. Identifying the Change
The process begins with a Change Request Form, usually available online (e.g., Google Forms). The requestor’s name and submission time are recorded automatically, leaving only the description of the requested change to be filled in.
Stakeholders often communicate change requests informally—via calls, emails, or chat messages. While these spontaneous ideas may seem promising at first, writing them down often reveals flaws. Additionally, a formal request process ensures that no changes are forgotten or overlooked.
2. Clarifying the Change Request
Once a request is received, the project manager must confirm their understanding. If necessary, they should seek clarification from the requestor and document the refined details in the Change Request Form.
3. Assessing the Complexity and Feasibility of Change Analysis
Some change requests are so complex that evaluating their impact alone can take weeks. In such cases, an effort estimate for the analysis must be prepared and approved by the project sponsor before proceeding further.
4. Evaluating the Impact on Scope, Schedule, Cost, and Quality
The project team must assess how the requested change will affect:
- Scope (What new work needs to be done?)
- Schedule (How will it affect deadlines?)
- Budget (What additional costs are required?)
- Quality (Will this impact the final deliverable?)
5. Evaluating Costs, Benefits, and Alternative Solutions
There are usually multiple ways to implement a requested change. However, stakeholders may not always suggest the most efficient solution. It is up to the project team to explore alternative approaches that achieve the same result with less effort.
6. Estimating the Cost of the Change
At this stage, the project team calculates the effort, cost, and time required to implement the change using different alternatives.
7. Approving or Rejecting the Change
The project sponsor reviews the proposed alternatives, selects one, and approves the necessary resources. Once approved, the project team incorporates the change into the workflow.
8. Updating Project Documents and Implementing the Change
After approval, new tasks must be added to the Work Breakdown Structure (WBS), budget, and schedule before actual implementation begins.
9. Documenting the Decision and Informing Stakeholders
Before implementing any change, documentation must be updated to reflect how the system currently operates. This ensures traceability and helps diagnose future issues if they arise.
How to Implement Change Management in Your Project
It is best to establish a change management process at the project’s outset—ideally discussing it with the client before work begins.
If a project has been running for a while without structured change management, introducing such a process might face resistance. In such cases, the project manager can explain that the company has adopted a new approach and that they must follow the updated process.
Additionally, any change introduces potential risks. Therefore, assessing the impact of changes from a risk management perspective is essential.
To address minor changes, the project sponsor can pre-approve a set number of billable hours for small adjustments. If the allotted hours are exhausted, the project manager must seek additional approval.
If a project has been running for a while without structured change management, introducing such a process might face resistance. In such cases, the project manager can explain that the company has adopted a new approach and that they must follow the updated process.
Additionally, any change introduces potential risks. Therefore, assessing the impact of changes from a risk management perspective is essential.
To address minor changes, the project sponsor can pre-approve a set number of billable hours for small adjustments. If the allotted hours are exhausted, the project manager must seek additional approval.
Conclusion
A well-defined change management process prevents uncontrolled scope creep, which can lead to budget overruns, missed deadlines, and strained stakeholder relationships. Business needs will always evolve, but structured change management fosters constructive discussions and collaborative decision-making.
Ultimately, no change should be implemented without the project manager’s awareness and formal approval—ensuring project integrity and alignment with strategic goals.
Ultimately, no change should be implemented without the project manager’s awareness and formal approval—ensuring project integrity and alignment with strategic goals.
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