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Author: Drew Davison

Drew Davison is the owner and principal consultant at Davison Consulting and a former system development executive. He is the developer of Project Pre-Check, an innovative framework for launching projects and guiding successful project delivery, the author of Project Pre-Check - The Stakeholder Practice for Successful Business and Technology Change and Project Pre-Check FastPath - The Project Manager’s Guide to Stakeholder Management. He works with organizations that are undergoing major business and technology change to implement the empowered stakeholder groups critical to project success. Drew can be reached at [email protected].

From the Sponsor’s Desk: The Power of One

It’s easy to follow routines.

But, good things often happen when someone senses an opportunity, deviates from the well-worn path, and chooses to follow a new road to an uncertain but potentially brighter future, bringing others on the journey as well. It’s the power of one!

In this case, a longtime member of a football pool took a different path when another member of the pool died and left his family in the lurch. His insight and leadership helped a community pull together to provide crucial support for the deceased’s family and build a cause in the process.

Related Article: From Doing to Managing to Leading

Thanks to M.A. for the story behind this case.

The Situation

Twelve friends had been involved in a football pool since high school. They went their separate ways in pursuit of their careers, but when the crisp autumn air signaled the start of another football season, they’d get together once again to conduct the draft they each hoped would win them the coveted prize. And, of course, share a few beers.

Shortly after the end of the season three years ago, Frank, one of the pool’s long time members, died of a massive heart attack. In his mid-forties, he was a middle-class guy with a stay-at-home wife and two young kids, one with special needs. His death placed his family in an immediate financial crisis.

Andy, the pool winner that season, saw an opportunity to help. He told his fellow pool members that he was donating his winnings – a little over $800 – to help the family. He asked for them to contribute what they could.

The Goal

Andy’s goal was to raise a bit of money to help the family in the short term. If he could convince some of his fellow pool members to contribute, that would help Frank’s family, at least in the short term.

The Project

Andy emailed the pool members about his intent to donate his winnings and asked them to donate what they could. He also called each pool member and chatted about Frank, what a shock his death was, what a great guy he was, what a great father and husband he was, how he would be missed and what a challenge it would be for Frank’s family to get on without him.

Shortly thereafter, the cheques started arriving in the mail. As they arrived, Andy would send out an update to the pool members with the latest total. He called the contributors to thank them for their generosity. He called Frank’s spouse to give her the good news.

The Results

Andy’s efforts raised more than $13,000 for Frank’s family that the first year. The money came from the pool members and their friends and family who heard about Frank’s death and what the pool members were doing to help.

Andy’s twelve-year-old son heard his dad talking to the pool members about Frank’s death and their plans to raise money for the family. Unannounced, he jumped on his bike, rode to his bank and withdrew all his money, $652.35 to be exact, to help the cause. When he presented the money to his father, Andy was moved to tears.

The following year, the group raised over $17,000 for Frank’s family. The year after, the total hit almost $20,000. Frank’s widow was overwhelmed. She had a little party for the pool members every year so she and her daughters could say thanks. She told the contributors that their donations had kept the family afloat.

Last year, Frank’s widow called Andy to tell him that she and her daughters were doing fine. She had found a good job. Her daughters were well looked after. She wanted the fundraising to wind down or go to another deserving candidate. The pool members decided to continue the fundraising effort and direct the proceeds to a local homeless shelter. The power of one!

How a Great Leader Made It Happen

Andy’s actions were motivated by a visceral need to make a difference for Frank’s family. It was intuitive. In reality, he actually applied a five-step approach to delivering change:

1. Identify the opportunity – This change would never have happened if Andy hadn’t recognized the opportunity and taken a different path. That was the catalyst for all the good that followed.
2. Take the lead – It’s one thing to have a good idea. It’s quite a different thing to actually take personal action in support of that idea. Andy’s decision to donate his winnings provided the example that others would follow.
3. Socialize – Andy talked it up. He told the other pool members what he planned to do. He talked to them about what a good guy Frank was and what a devastating loss his death was for the family. With Andy’s push, the feelings of the other pool members coalesced around the need to help.
4. Champion – Andy told his pool mates when the donations started coming in. He thanked each member when they made a donation. He told them about his son’s contribution. He encouraged them to get their family and friends involved. He passed on the words of thanks from Frank’s widow and his daughters. He kept the ball rolling and the donations coming.
5. Celebrate – We all like to celebrate when a project is delivered successfully. Andy and his football pool members were no different. They all celebrated as the donated amounts rose. They celebrated with Frank’s widow and daughters. The celebrations reinforced the rightness of their actions and the need to continue.

Now, you might ask, what does this story have to do with running a project or managing change? Simply this. A project is all about delivering a new way – a new product, a new organization, a new process, etc. As part of that effort, a myriad of decisions need to be made. If everyone involved in the change keeps an eye open for new opportunities and applies Andy’s five steps, just think of the multiplying effect that would have on the outcome. Stupendous! That would definitely capitalize on the power of one.

So, whatever the situation, always look for opportunities to make a difference. And, when you find those opportunities, put these points on your checklist of things to do so you too can be a Great Leader. And remember, use Project Pre-Check’s three building blocks covering the key stakeholder group, the decision management process and Decision Framework best practices right up front so you don’t overlook these key success factors.

Finally, thanks to everyone who has willingly shared your experiences for presentation in this blog. Everyone benefits. First time contributors get a copy of one of my books. Readers get insights they can apply to their own unique circumstances. So, if you have a project experience, good, bad and everything in between, send me the details and we’ll chat. I’ll write it up and, when you’re happy with the results, Project Times will post it so others can learn from your insights. Thanks

From the Sponsor’s Desk: Make Your Boss a Star

Has your boss ever handed you an assignment you thought was downright crazy?

Did you pull your hair out trying to figure out how to respond? Or, did you seek greener pastures to avoid the looming failure? If so, this story could provide some other options for you to consider if you encounter a similar situation in the future.

In this case, a software development manager received an undoable assignment from his boss. The manager’s response not only turned the assignment into a corporate success, but it also made him a hero and made his boss a star.

Thanks to G.A. for the facts behind this case.

Related Article: The Good Boss

The Situation

Dave, a technical manager, was responsible for a software development group that looked after the internal needs of an international technology services organization. His team had an enviable track record of successful project delivery and a very appreciative client base. Dave attributed that success to their collective obsession with client engagement, a very empowered, talented and motivated team and a passion for continuous improvement.

Dave’s boss, the Director of Solutions Delivery, was responsible for another three software development groups in addition to Dave’s team; a west coast group that focused on a diverse set of commercial clients, a centrally located organization that serviced a large number of financial services and retail clients, and an east coast team that was oriented mostly to government contracts. Those three organizations had a somewhat spotty record with their clients and a mixed record of success.

The Director had long been impressed with the achievements of Dave’s team, and he wanted to capture some of that magic in his other groups. In addition, there were five other software development groups outside of his organization that he had his eye on. These were teams that supported the business groups’ sales and service activities. The Director believed that if he could bring those five outlying teams into his organization, even on a dotted line basis, his chance of further recognition and promotion would be boosted significantly.

So the Director called Dave into his office and presented his plan. This would be Dave’s project. It would boost the company’s reputation by improving its software delivery practices, experience, and track record. It would boost Dave’s reputation as a skilled software manager, internally and externally. And, of course, that could lead to future promotions within the company and other opportunities outside.

During the meeting, Dave tried to get the Director to provide more specifics on a number of fronts:

• The burning platform? Poor performance and declining market acceptance.
• The opportunity? Increased client satisfaction leading to increased business.
• Goals? Figure it out!
• Worth? It shouldn’t cost very much.
• Requirements? Implement the practices that make Dave’s organization so successful.
• Benefits? Increased revenue and lower costs from greater productivity.
• Locations? All nine development groups.
• Target dates? You can work that out with the other managers.
• Phasing and staging needs? Give me some recommendations.
• Assumptions? Don’t assume anybody knows about this plan or buys in just yet.
• Constraints? Figure it out.
• Volumes? You figure out the number of people impacted, the number of projects involved.
• Stakeholders involved? You’ll have to bring them up to speed.

The Goal

Dave’s challenge was to identify the best practices that had made his organization so successful and implement them across all nine of the company’s software development groups. The Director provided no incremental budget and no explicit time frame although the implication was sooner rather than later.

The Project

When Dave returned to his office after the meeting with his Director, he cancelled his next meeting and started making notes about the other eight development groups and the challenges ahead. He knew all of the managers, but not well. They were geographically dispersed which made the job even harder. They had no reason to listen to him. They had their own priorities and challenges. There were over a thousand software developers and other assorted roles spread across the nine groups. He had no idea what skills and proficiencies they had. The nine groups had different markets and faced unique demands from their clients. He had no idea how many projects were in progress at any one time or the size and nature of those projects.

Dave felt overwhelmed. This was a huge job! There was no way he could do what the Director was asking along with his current job. There was no way he could do it without more money, more staff and support from the other managers, Directors and VP’s. He knew if he tackled the job under the current mandate, he’d hit a brick wall and look like an idiot in the process. And he’d make his boss look like an idiot as well. So Dave started to draft out some alternatives.

Alternative #1: This was boss’s proposal. It was undoable! He would fail. His boss would fail. It was a lose-lose proposition.

davisonsept1

Alternative #2: Dave called this approach “Creeping Commitment” – do a little at a time, what you could manage and afford, what was supported by other managers, Directors and VP’s and communicate widely about the progress and successes. Hopefully, the approach would encourage others to get on board.

davisonsept2

In this approach, he’d start with his three peer managers who report to his boss. His boss could establish their collective priority and make sure all were accountable for the shared results. He’d also need a project manager to run the Shared Best Practice Baseline program and four or five staff to develop the best practice repository, train the staff, and monitor practices and results.

At the same time, the Director could introduce the program to his VP and the other VP’s, Directors and managers in the other groups in the spirit of collaboration. His boss would look good as the results came in (Dave was convinced he could make some significant gains across the other three development groups) and others would be enticed to follow his lead. Win-win!

Armed with these options, Dave took the proposal to his boss. But he didn’t start out pitching his ideas. Instead, he asked his boss for advice: how could he get the other directors and managers on side, how could he get them to realign their priorities to include the Shared Best Practice Baseline program, how could he resolve conflicts over best practices, how could he reduce the risks for him and his boss if things didn’t go well. As Dave had hoped, as they talked over Dave’s questions and concerns, they started building the fundamental elements of Alternative #2: engaged stakeholders, phased development and implementation, a small team of dedicated staff, broad communication and dialogue with the other potential targets, precise goals, tracking, and reporting.

At an opportune point in the discussion, Dave asked if he could summarize their discussion so far. The Director agreed. So Dave described the discussion to that point, which was essentially Alternative #2. He drew the approach highlighted above on the Director’s whiteboard. The Director loved it! Why wouldn’t he? He thought it was his idea! He even agreed to give Dave incremental staff and budget to form the Shared Best Practice Baseline program team. Dave was a happy camper when he left that meeting. So was his boss. Win-win!

Dave arranged for the Director to update the other three managers. They collectively fleshed out the substance of Dave’s initial questions regarding the burning platform, opportunity, goals, worth and so on, until all five participants were in agreement. They also agreed on the implementation strategy going forward, focusing initially on stakeholder engagement and communication practices, then project planning and control. Dave brought on an experienced project manager to lead the best practices team, the necessary people were brought on board, and the work commenced to great expectations.

The Results

The first phase of stakeholder engagement was completed in six months in the Director’s other three development groups. Client satisfaction was up 43% across all groups. Project performance, measured on cost, time, quality and client value had improved 29%. The staff satisfaction rankings had increased 17%. Of course, these results were shared with the other VP’s, Directors and development groups. The CEO received his own personal briefing quarterly.

As they started up the second phase targeting project planning and control, the VP with four development groups under his purview negotiated with Dave’s Director to get his teams included in the program. So Dave expanded his team to cover the newly added development groups, taking them through the stakeholder engagement best practices while targeting the original three teams with the planning and control best practices.

After fourteen months, all nine development teams were in the program and a permanent core practices team was established, under Dave’s direction, of course, to facilitate compliance, performance monitoring, and new practice development. The two project teams continued to introduce new practices throughout the nine teams and leaders, and team members were often moved into the teams they were supporting to provide additional exposure and experience. Twenty-two months after that first meeting between Dave and his boss, his boss was promoted to VP of Corporate Software Solutions. Dave’s promotion to Director soon followed, reporting to the new VP, of course.

How a Great Leader Changed the Result

Dave’s response to his Director’s initial assignment was the fulcrum on which his success rested. As we’ve seen above, his choices were bang on, including the following six actions:

1. Think it through
Dave didn’t just jump at his boss’s edict. He didn’t quit in frustration. He thought the demand through, recognized what his boss was trying to do – part good but half-baked idea, part self-promotion – and came up with an approach that was manageable and would be a win-win for everyone.
2. Ask for advice
By asking for advice, Dave helped his boss think the idea through as well, building mutual understanding and shaping that original managerial whim into a reasonable, doable and beneficial change for the organization.
3. Manage up
A large part of Dave’s success was due to his team’s focus on client engagement. This initiative was no different. He knew he needed executive support to succeed. The foundation for his approach, honed with his boss’s input, was the development and cultivation of executive support at all levels of the organization.
4. Creeping commitment
The Director’s initial plan to take over all software development was a huge logistical and cultural change. It would have been met with strong resistance from all quarters. If he had pitched the idea to the CEO initially, it would have been readily rejected. By taking Dave’s “a-bit-at-a-time” approach, clearly demonstrating incremental value to the organization at each step, the potential resistance dissipated over time. Executives who would have been opposed initially instead saw the Director’s involvement as a benefit to be taken advantage of.
5. Phased delivery
Dave’s decision to phase the delivery of the best practices was critical to the project’s success. He and his new team got used to working with the other groups on a targeted change. They built rapport, cohesion, and capability a bit at a time. They experienced and celebrated success together. When they added the next best practice piece to the equation, it was just business as usual.
6. Communicate

The foundation of the project’s broad acceptance was the communication plan. This wasn’t just a monthly project status update distributed widely. It was a multi-way communication process that provided every stakeholder with the information they needed, when they needed it, in the form required. The other interested teams got timely show-and-tell sessions that related explicitly to their normal working days. Executives received the success stories, clients’ reactions, staff satisfaction numbers and results in productivity gains and quality improvements. The communication plan was actually the sales channel. And it worked marvelously.

Dave’s approach to the best practices baseline assignment ensured his success and made his boss a star. He didn’t have to invent it. He didn’t have to learn it. It was what he and his team did every day to deliver for his clients. He leveraged best practices.

So, if you find yourself in a similar situation, please put these points on your checklist of things to do in future endeavours so you too can be a Great Leader. And remember, use Project Pre-Check’s three building blocks covering the key stakeholder group, the decision management process and Decision Framework best practices right up front so you don’t overlook these key success factors.

Finally, thanks to everyone who has willingly shared your experiences for presentation in this blog. Everyone benefits. First time contributors get a copy of one of my books. Readers get insights they can apply to their own unique circumstances. So, if you have a project experience, good, bad and everything in between, send me the details and we’ll chat. I’ll write it up and, when you’re happy with the results, Project Times will post it so others can learn from your insights. Thanks

From the Sponsor’s Desk: Missed Opportunities

Change is all around us, from those minor adjustments in our daily lives to world-shaping events. Excepting the whims of Mother Nature, in each change, someone is usually the catalyst, the driver.

If the change affects us directly, we can only hope that whoever the catalyst is, they have the greater good in mind. Unfortunately, that’s usually not the case. Most business decisions are made with the shareowners in mind. But one would expect not-for-profit organizations to take a somewhat more holistic view.

In this case, a not-for-profit organization, in response to competitive pressures, overlooked their primary reason for being in their rush to change. That oversight cost their clients, their staff and the community they served and threatened the very existence of the organization.

Related Article: Implementing Change – A 7-Phase Methodology

Thanks to L.D. for the details on this case.

The Situation

This not-for-profit home health care organization was facing a severe challenge. It provided nursing care, personal support workers, therapists and other health care providers for people in their homes, communities, and workplaces. A number of large for-profit companies had entered the market and were offering those same services for less, putting pressure on the organization’s long-term viability. Their response to the challenge was one of missed opportunities.

The senior management considered a number of options for reducing costs and increasing their competitiveness. The organization had a long history of quality service enabled by highly motivated and well-trained staff and fully supported by a forward-looking management group. Unfortunately, all of the options considered highlighted the need to reduce expenses. That translated into management cuts. The cuts would make their services more cost-competitive but reduce their future capability. It was a short term versus long term choice.

The senior management chose the alternative they believed offered the least long-term downside – implementation of self-managed teams. That would allow the elimination of the four district managers, the palliative care and mental health managers, and the best practice manager through the transfer of that work to local teams. All nursing care teams would report to the remaining senior service delivery manager.

The Goal

The goal for the organization was to implement self-managed teams throughout the organization to eliminate seven management positions. Accountability for staffing, nursing communications and training would reside with the senior service delivery manager. All other management duties would be transferred to the self-managed teams.

The Project

The Director of Operations announced the change to self-managed teams through a special newsletter to nursing care staff. The letter emphasized the benefits of self-managed teams, including increased job satisfaction, productivity, and quality of care. The staff was invited to one of three half-day self-managed team training sessions in the organization’s offices. Attendance was mandatory and unpaid.

The training sessions highlighted the rationale for the move, again emphasizing increased job satisfaction, productivity and quality of care, and the timeline and process for the implementation over the next month. The sessions covered the team structure – a team leader and two team members, responsibilities, the stages of team formation – forming, storming norming and performing and provided some tools to get the teams formed and up to speed. Teams would be geographically focused and be accountable for managing all clients in the assigned area, 24 hours a day, 365 days a year.

One of the key strategies for moving to the new organization was self-selection. Team members could approach the new team leaders (former district nurses and managers) to be on their teams. As well, team leaders could approach team members to join their groups. Some former managers and district nurses chose to leave or retire rather than fill a team leader role. Any gaps in the leader and member roles at the end of the matching process were filled by the senior service delivery manager. Team leaders were permanent, full-time employees on salary with benefits. The team members were part-time employees paid on an hourly basis, with no benefits.

During the month-long rollout, experience ranged from calm to chaos. A few teams formed quickly and began the process of exploring and shaping their new work world. A couple of teams formed and then disbanded due to unresolvable conflict. Most teams stuck closely to the former district nurse model where the district nurse called the shots and handed the team members their cases and times.

The Results

A few teams excelled. One, in particular, formed a very collaborative team culture with a team motto of “Duck, Bob, and Weave”. After the initial forming period, the team sent the following comments to the senior service delivery manager:

“It was an exciting and challenging transition. Our team was enthusiastic about SMT’S and went into it without any qualms. We did go through a major learning process and made many adjustments but found the process fascinating and rewarding. We learned and continue to learn from all our experiences and have been able to progress towards a fully functioning team.

Having one’s own clients and team definitely changes your outlook. It is more comfortable and rewarding and much better nursing practice to be involved with the same clients from beginning to end. Working as a team allows consistency and security for the clients which results in improved care.”

The team kept statistics by team member on number of clients, types of treatment, healing rates for wound care, complaints and compliments, hours worked, visits made, time per visit and the reasons for month to month variations (e.g. competitive pressures, training, vacation, case complexity, etc.). They reviewed their performance weekly and identified and captured improvement opportunities and best practices. They also produced a monthly report for themselves with a copy to the senior service delivery manager showing month by month progress, including the following charts:

davisonJuly1davisonjuly2davisonjuly3

The team registered three significant concerns: workload, unpaid time, and the need for continuing self-managed team support. The team found that:

  • Providing full-time, round-the-clock coverage for their district with only the three team members was extremely challenging. Variability in service requests, the complexity of care, training for new procedures, vacation and sick time added to the stress.
  • Unpaid time could account for up to 25% of their total time. They were paid by case, with a certain time established for each. Unapproved extra time on a case, travelling time, meetings with their team leader and manager, picking up supplies and calls to physicians and other healthcare professionals on behalf of their clients were not compensated.
  • Additional support, tools, and training for self-managed team development was essential to maximize their performance potential. They wanted to share their findings with other teams and find out what was working and not working in those other teams. No training or support had been offered beyond the initial half-day session.

Unfortunately, other teams and staff weren’t nearly so positive. They viewed the change as something that was being done to them, without their input or involvement. There was significant resistance. Many of the former district nurses who had accepted team lead roles were overwhelmed with the additional leadership, planning, and coordination duties. Some simply continued to operate as district nurses and essentially ignored their supposed teammates. Others went on to other, less stressful jobs.

The organization’s management was generally not forthcoming with any solutions for the stress being experienced, the unpaid work or further self-managed team training. Turnover increased. Client service suffered. Recruiting became more difficult, with many new recruits departing after a few weeks because of the stress and lack of support. The sustainability of the organization is now in question.

How a Great Leader Could Have Changed the Result

1. Clearly articulate the burning platform

Management was not truthful about the challenges the organization was facing. It should have come clean and shared the burning platform, the competition from for-profits, with its staff. They needed to be involved in the search for solutions. The organization had talented, loyal, committed, long-serving staff. Unfortunately, they weren’t engaged to be part of the solution. A missed opportunity.

2. Present a compelling vision

The message from management focused on self-managed teams. Period. Instead, they could have focused on the need to improve competitiveness and productivity while sustaining and advancing their commitment to clients, community, and staff. They could have stressed the need for collaborative creativity, new work forms, structures and relationships to keep their organization performing at its peak. They didn’t. A missed opportunity.

3. Invest in the change

A change requires extra time, effort, and energy to be successful. It needs nourishment. It needs funding to realize a new way of performing. This organization’s management starting cutting as soon as the changes were announced. There was no transition support, no active measurement, and monitoring of progress being made, or not. There was no attempt to capture and disseminate the experiences of the teams, to share best practices. There were few additions or adjustments to address the concerns. A missed opportunity.

4. Leverage your strengths

The organization had a long-standing reputation for integrity and quality service to its clients. It had raised charitable donations for many years to fund its good works and had the ability to raise additional funds to support its mission, vision, and mandate going forward. Instead, senior management caved to the short-term pressure and focused solely on the expense side. A missed opportunity.

5. Measure

Management had very little information about how the change was progressing. They managed the financials, of course. They managed the number of full time and part time employees. They managed the number of clients and the services provided because that related directly to revenues. They tracked customer complaints. But, they didn’t know how the teams were functioning, how their staff was coping until it was too late. A missed opportunity.

6. Communicate

There was no overall communication plan for the change to self-managed teams, a major oversight. The communication that did happen was generally after the fact, one way, from managers to staff. One questionnaire was sent out after management realized the number of clients and levels of service were declining and turnover was increasing because of disintegrating teams. Unfortunately, there was limited remedial action taken. Very little was done on a team by team basis to solve individual challenges and share those remedies with other teams. A missed opportunity.

In his book The Wisdom of Crowds, James Surowiecki shows how large groups of people are almost invariably smarter than an elite few; “better at solving problems, fostering innovation, coming to wise decisions, even predicting the future”. Unfortunately, it seems no one on this organization’s management team read that book. Another missed opportunity.

So, if you find yourself in a similar situation, please put these points on your checklist of things to do in future endeavours so you too can be a Great Leader. And remember, use Project Pre-Check’s three building blocks covering the key stakeholder group, the decision management process and Decision Framework best practices right up front, so you don’t overlook these key success factors.

Finally, thanks to everyone who has willingly shared your experiences for presentation in this blog. Everyone benefits. First-time contributors get a copy of one of my books. Readers get insights they can apply to their own unique circumstances. So, if you have a project experience, good, bad and everything in between, send me the details, and we’ll chat. I’ll write it up and, when you’re happy with the results, Project Times will post it so others can learn from your insights. Thanks

From the Sponsor’s Desk: Change Management Lessons from Brexit

On June 23, 2016, the United Kingdom (UK) voted to withdraw from the European Union (EU). The referendum, called by Prime Minister David Cameron, produced a 52% to 48% win for the Leave side.

Tellingly, the campaign has been dubbed “Brexit” by the Leave side, a contraction of British and Exit. If the UK chooses to honour the referendum results and proceed with the exit, the changes could trigger significant economic, social and political changes, within the UK, the EU and beyond.

Related Article: From the Sponsor’s Desk: Beware the Change Within a Change

Given the risks involved, one would think both sides in the debate would pull out all the stops and use whatever techniques were available to gain an advantage. One such practice, proven in the corporate world and on projects large and small, is the management of change. While change practitioners may differ in the approaches taken and the tools used, there are some common, proven themes that work across the change spectrum. In this post, we’ll look at how the Leave and Remain sides in the referendum applied change management practices and how that use contributed to the final result.

Thanks to P.S. for the background on the story.

The Situation

Britain, with a population of 65 million, has been a member of the EU for more than forty years. By some measures, the EU is the world’s biggest economy, almost five times the size of Britain’s, with a population of over 500 million.
As reported by Jaime Watt in the Toronto Star on July 3, “Britons have been deeply skeptical of the European project for decades. Wary of the undemocratic components of the European Union, skittish about the lack of control over immigration, and overwhelmed by strict regulations handed down from Brussels, many felt the negatives of the EU far outweighed the positives.”

There has been a national campaign in Britain for a referendum for over 25 years. Its most outspoken supporter has been the UK Independence Party (UKIP) under the leadership of Nigel Farage. In the last European Parliament elections in 2014, UKIP had an enormous share of the UK vote. It doubled the number of seats and ended up with more MPs in the European Parliament than either the Conservatives or Labour.

A number of risks were identified for a British exit from the EU. The UK could enter into a recession of indefinite length and uncertain severity. The UK relies on the EU for about 40 per cent of its exports whereas the EU relies on Britain for only 16 percent of its exports. An exit could also bring about the dismemberment of the UK, with pro-EU Scotland again seeking Scottish sovereignty and pro-EU Northern Ireland possibly seeking a merger with the Irish Republic. If you couple these concerns with possible additional departures from the EU and the impact on the European and world’s social, political and economic status, the stakes were very high.

In a speech in 2013, Cameron, then leader of a Conservative and Liberal Democrat Coalition Government, criticized the EU’s economic performance, lack of competitiveness, and excessive regulation:

“There is a growing frustration that the EU is seen as something that is done to people rather than acting on their behalf. And this is being intensified by the very solutions required to resolve the economic problems.

People are increasingly frustrated that decisions taken further and further away from them mean their living standards are slashed through enforced austerity, or their taxes are used to bail out governments on the other side of the continent.

We are starting to see this in the demonstrations on the streets of Athens, Madrid, and Rome. We are seeing it in the parliaments of Berlin, Helsinki and the Hague. And yes, of course, we are seeing this frustration with the EU very dramatically in Britain.”

David Cameron faced battles on several fronts. There were a large group of Conservative MPs sympathetic to UKIP. The Conservative Party had been committed to holding a referendum on the EU for over a decade. Cameron renewed that commitment in 2015, at a time when opinion polls suggested that a majority of the electorate would oppose leaving the EU. It looked like a very safe gamble at the time.

The Goal

The goal for the Leave side was to get sufficient support in the referendum to pull the UK out of the EU. For the Remain side, the goal was to gain a majority result to keep the UK in the EU.

The Project (The Referendum)

On February 20, 2016, David Cameron set June 23rd as the date for a referendum on Britain’s membership in the European Union.

A YouGov poll conducted in the run-up to the British referendum showed that the vote for Brexit was very much one of the old against the young. The older the voter, the more he or she was inclined to leave. Some 64 percent of the age group from 18 to 24 said they would vote for Remain; just 35 percent of those between 50 and 64 wanted to stay.

The Vote Leave campaign, headed by former London mayor and Conservative MP Boris Johnson and Conservative MP Michael Gove, focused on three popular themes: control over immigration, national sovereignty, and the economy. The campaign slogan was “Take Control”. The campaign literature cited the following reasons for leaving the EU:

  1. 1. We stop handing over £350 million a week to Brussels.
  2. We take back control of our borders and can kick out violent criminals.
  3. We take back the power to kick out the people who make our laws.
  4. We decide what we spend our own money on.
  5. We free our businesses from damaging EU laws and regulations.
  6. We take back the power to make our own trade deals.
  7. We have better relations with our European friends.
  8. We regain our influence in the wider world and become a truly global nation once again.

A number of organizations also worked in support of the Leave campaign, including Leave.EU, Grassroots Out (with Nigel Farage, the UKIP leader) and Labour Leave. As John Cassidy reported in the New Yorker, “Officially, Farage played no role in the Leave campaign. He and his party have such a toxic reputation that the Conservative “Eurosceptics” who led the official campaign didn’t want anything to do with them.”

David Cameron, the British Prime Minister, was the face of the Remain campaign, officially called “Britain Stronger in Europe”. Jeremy Corbyn, the leader of the Labour party, was supposed to be supporting the Remain side. He didn’t. According to one commentator “Corbyn showed nothing but the vaguest of interests. No passion, no speeches, no action.”

The Remain campaign presented the following ten reasons for staying:

  1. As part of Europe, British businesses have free access to sell to 500 million consumers. If we left the EU, our trade would face tariffs and barriers.
  2. Independent experts have found that over 3 million jobs in Britain are linked to our trade with Europe.
  3. A strong economy means households are better off in Europe. If Britain were to leave Europe, the hit to the economy would be equivalent to £4,300 for each UK household.
  4. Being in the EU means a stronger economy, which means more investment in public services. Leaving would mean spending cuts of £36bn.
  5. 44% of the UK’s international exports are to EU countries, worth £229 billion in 2014.
  6. Between 2004 and 2014, the average investment from European countries every year was £24.1 billion – that’s over £66 million a day in investment from Europe.
  7. The cost of holidays are cheaper in the EU, for example because the price of flights has come down 40% because the EU changed the rules to allow low-cost airlines like EasyJet to set up in Europe.
  8. Over 200,000 UK students have spent time abroad on the Erasmus exchange programme. Students who have undertaken placements on the Erasmus programme are 50% less likely to experience long-term unemployment than their counterparts.
  9. Workers’ rights are protected by EU legislation, including entitlements to paid holiday of at least four weeks a year, maximum working hours, anti-discrimination laws and statutory paid maternity and paternity leave.
  10. Our access to the European Arrest Warrant (EAW) has meant over 1,100 suspected criminals have been arrested in the EU and returned to Britain to face justice. Also under the European Arrest Warrant, Britain has sent 7,400 suspected criminals who had fled here back to the EU.

There were a number of other organizations supporting the Remain campaign, including Labour In for Britain, Conservatives In for Britain and Another Europe Is Possible.

Over four months, the two campaigns covered Britain with leaflets, brochures, and canvassers. There was even a naval engagement, with Leave and Remain flotillas sailing down the Thames River. And then came June 23, 2016 and the vote. The question on the ballot stated, “Should the United Kingdom remain a member of the European Union or leave the European Union?” The options were:

  • Remain a member of the European Union
  • Leave the European Union

The Results

As we now know, the Leave option received the majority of votes, 52% to 48% for the Remain side. As Jennifer Wells reported in the Toronto Star on June 26, “That a vote of such momentous importance was run like an election for seats on an acidly tempestuous borough council was, as many have noted, an epic miscalculation.”

Following the vote, David Cameron, the current Prime Minister, announced his resignation. Boris Johnson, the heir apparent to Cameron, bowed out of the leadership race and Michael Gove, who had previously expressed no interest in succeeding Cameron, threw his hat in the ring and then finished third in the in the vote to replace him, and out of the race. The next British PM will be a woman, either Theresa May, the longest-serving Home Secretary in more than 50 years, and pro-Remain or pro-Brexit energy minister Andrea Leadsom.

Leslie Jamison wrote in the New Yorker, “With the exceptions of London, Scotland, and Northern Ireland, every major region of the UK voted to exit the E.U. The Remain vote was particularly weak in the West Midlands and the Northeast of England, two areas that have been hit hard by de-industrialization. But even in the relatively prosperous Southeast of the country, if you subtract London from the results, a majority of people voted to leave.”

John Cassidy wrote in The New Yorker the day after the vote, “What has certainly happened is that decades of globalization, deregulation, and policy changes that favored the wealthy have left Britain a more unequal place, with vast regional disparities. It’s the shape of our long lasting and deeply entrenched national geographic inequality that drove differences in voting patterns.”

Torsten Bell, the director of the Resolution Foundation, a bipartisan think tank, attributed the result thus: “The legacy of increased national inequality in the 1980s, the heavy concentration of those costs in certain areas, and our collective failure to address it has more to say about what happened last night than shorter-term considerations from the financial crisis or changed migration flows.”

Thomas Friedman wrote in the New York Times on June 29, “Because although withdrawing from the EU is not the right answer for Britain, the fact that this argument won, albeit with lies, tells you that people are feeling deeply anxious about something. It’s the story of our time: the pace of change in technology, globalization and climate have started to outrun the ability of our political systems to build the social, educational, community, workplace and political innovations needed for some citizens to keep up.”

Barrack Obama, in a speech to the Canadian Parliament on June 29, summed up the results thus: “If the benefits of globalization accrue only to those at the very top,” he said, “then people will push back.”

How Change Management Could Have Changed the Result

Let’s be honest, implementing change in a democracy on a national or international scale is orders of magnitude more complex than implementing change within an organization, or even across a company. The numbers of stakeholders are on a different plane entirely – millions versus thousands. In addition, the authority of the change sponsors is vastly different – from elected officials counting on engaged citizens on the one hand to senior executives in usually authoritarian, hierarchical structures on the other.

Yet, proven change management practices are still relevant, if somewhat more challenging to apply. Let’s use John Kotter’s 8 Step Change Model to assess the two campaigns. Kotter is a Professor Emeritus at the Harvard Business School, a best-selling author, the founder of Kotter International and a well-known thought leader in the fields of business, leadership, and change. His 8 Step Change Model has been used widely and successfully across a wide range of industries and situations. It encapsulates the key change management principles in an easy to apply framework.

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1. Create a Sense of Urgency

Often, the sense of urgency is expressed as the “burning platform”, the situations or circumstances that force a change to a new future state.

The Leave side has been agitating for action for decades. Their burning platform was the perceived loss of British sovereignty and the growing power and influence of UKIP. David Cameron’s burning platform was the increasing pressure from within his own Conservative party. The EU’s performance contributed to the burning platform, including the austerity measures enacted in response to the 2008 financial crisis and subsequent tepid economic performance and its handling of the refugee crisis.

2. Build a Guiding Coalition

The Leave campaign committee included twelve Conservative MP’s. Twelve! The Remain campaign committee included just one Conservative MP. How could Cameron have ever imagined that his Remain campaign could win if he couldn’t even convince members of his own party that the benefits of remaining in the EU exceeded the negatives?

3. Form a Strategic Vision and Initiatives

Kotter’s describes this step thus: “A vision must be bold, concise, authentic and evoke a clear future state. Initiatives must have defined goals and link directly to the strategy designed to create that future state.”

The Leave side painted a vision of an independent Britain, in charge of their own destiny. Not surprisingly, they didn’t talk about what would be lost in the exit and what the future relationships with the EU would look like. The Remain campaign focused as much on the negative consequences of leaving as they did on the benefits of the status quo. What they didn’t present was any future vision that addressed British concerns with that status quo.

The referendum question echoed that binary Leave or Remain choice exactly, a terribly simplistic choice for a very complex question. David Cameron has commented on numerous occasions about the need to reform the EU, to make it more competitive, responsive and less bureaucratic. Why were those options not reflected in the ballot?

Interestingly, neither side bothered to talk about the Initiatives that would be needed to achieve the vision.

The remaining five steps deal with change implementation. They describe the steps the Remain side should have taken years ago to address the issues that were made apparent up to and during the referendum and by the referendum results. The remaining five steps also describe the actions that absolutely need to be addressed for the Leave process to be executed effectively to deliver a better future for everyone.

This wasn’t a referendum on staying within the EU. It was an assessment of how the past forty or so years of EU membership had served the U.K. Had the Remain camp recognized that fact and responded accordingly, with proven change management practices to guide them, the results of the referendum could have been very different. The referendum result is a poignant message to whichever candidate earns the right to be Britain’s next Prime Minister – do a better job of looking after the needs of your citizens. That message should resonate with all leaders, public and private enterprise alike.

So, if you find yourself in a similar situation, put these points on your checklist of things to do in future endeavours so you too can be a Great Leader. And remember, use Project Pre-Check’s three building blocks covering the key stakeholder group, the decision management process and Decision Framework best practices right up front, so you don’t overlook these key success factors.

Finally, thanks to everyone who has willingly shared your experiences for presentation in this blog. Everyone benefits. First-time contributors get a copy of one of my books. Readers get insights they can apply to their own unique circumstances. So, if you have a project experience, good, bad and everything in between, send me the details and we’ll chat. I’ll write it up and, when you’re happy with the results, Project Times will post it so others can learn from your insights. Thanks

From the Sponsor’s Desk: The Wonders of Wishful Thinking

Mergers and acquisitions are invariably fraught with peril. Wharton accounting professor Robert Holthausen, who teaches courses on M&A strategy, says that researchers estimate the range for failure is between 50% and 80%. Roger L. Martin stated in a recent Harvard Business Review article “M&A is a mug’s game, in which typically 70%–90% of acquisitions are abysmal failures.”

The reasons vary, including poor strategic fit, paying too much, culture clashes, poor communication, lack of executive leadership, technology infrastructure mismatches, lack of the right people and skills and poor project and change management capabilities. Martin adds another cause: “Companies that focus on what they are going to get from an acquisition are less likely to succeed than those that focus on what they have to give it.” I think the real cause of failure is wishful thinking, where the leaders spend all their time on the exciting, upfront stuff and expect the value to flow once the deal is done. In reality, that’s when the hard work begins.

Related Article: From the Sponsor’s Desk: The Lessons of Heroic Projects

In this post, we’ll look at a company whose efforts to integrate an acquisition were severely hampered by a number of these factors. Failure to address these gaps upfront generated inter-departmental hostilities, caused their newly acquired customers considerable angst and damaged their relationship for a number of years.

Thanks to P.M. for providing the details on this case.

The Situation

This facilities management organization had recently acquired a smaller competitor. The CEO decreed that the operations of the acquired company should be fully integrated into their own operations by January 1 of the upcoming new year. The integration mandate included customer service functions, engineering, finance, marketing and sales, human resources, and information technology. The organization had a little over nine months to implement the change.

The CEO appointed James, a soon to be retired executive, as the VP Integration and told him to go ahead and make the change happen. Accompanying the appointment, the CEO announced the plans to the organization and to all their customers, old and new.

The Goal

The CEO challenged his new VP Integration to ensure all aspects of the acquired company were assimilated into their organization’s operations by January 1. The CEO set a budget of $250,000 for the project.

The Project

Now James, the new VP Integration, was a nice guy. He had been the Director of Sales for the organization. He was good with people. He had a great relationship with the customer base and his sales team. But, he had no prior project or change management experience.

The other VPs waited for James to put a plan together and get the project underway. Nothing much happened. The VPs started calling and emailing him to get going on the project. So James set up meetings with each of the VPs to talk about what had to happen in each of their departments to make the integration work. At least those discussions got the VPs thinking about the impact of the integration on their operations and staff.

But still, not much happened. Now six weeks into the project, the VPs started hammering James about putting a plan together and assigning staff to work the plan. So, James booked a series of one-hour, bi-weekly meetings to “review progress”. At the first meeting, he discovered that it’s difficult to review progress when there’s no plan in place. He was looking to the VPs to provide the plan. The VPs were looking to him. Because of the planning vacuum, and recognizing that James didn’t have the inclination or the capability to develop the plan himself, the VPs agreed to develop plans to address the work that needed to be done in their own organizations. James agreed to pull the pieces together into an overall plan.

At the next bi-weekly meeting, James went around the table and asked each VP to review their plan and progress against it. The VPs were aghast! They thought it was James’ job to manage and report on progress. James assumed it was the other VPs job. The situation reminds one of that old tongue twister – “The skunk sat on a stump. The skunk thought the stump stunk. The stump thought the skunk stunk.”

As a result of that meeting, the VPs started taking matters into their own hands. The VP Customer Service contracted with the organization that provided their customer management software to convert the acquired company’s customer records. The VP Engineering contacted their telecom provider to convert the communications technology in the acquired company’s vehicles. The CFO contracted with the accounting software vendor to convert the acquired company’s financial records. And so it went. As the individual VPs started taking matters into their own hands, they perceived there was little need to attend James’ bi-weekly meetings. The attendance dropped off and so James cancelled the meetings.

The company was creating a number of silos, focused on a single outcome, without regard to any interactions and interdependencies between and among them. They were about to discover the vagaries of vertical projects and the wonders of wishful thinking! Self-delusion only works for so long!

About fourteen weeks into the integration effort, the CIO started to get concerned. No one was talking to him or his staff about the need for additional software development support or computer operations capacity and services. He contacted each of the VPs to find out what their plans were and how they were progressing and discovered a quagmire of half-baked plans, projects, and expectations. It was a disaster!

He met with the CEO and suggested they bring in a senior project manager to pull the mess together and direct the work until it was finished. The CEO balked. He had already appointed James as the VP Integration. It was his job. The CIO persisted. He recognized that the CEO’s credibility was on the line with James’ appointment and the January 1 announcement. So he proposed that the new project manager is officially hired by and report directly to James but have a dotted line relationship to the CIO. The CEO didn’t buy it and the fumbling went on as before.

As each department proceeded with their own plans, they had to communicate with the new customers about changes to their services brought about by the integration effort. That meant that each new customer was getting multiple communications from the different departments, often with significant change challenges and conflicting messages. Senior management from the new customers started venting their frustrations with the organization’s senior management, including the CEO.

At an executive committee meeting almost six months into the integration effort, the CEO complained about the flack he was getting from his new customers. He challenged the VPs to fix the problem. The CIO took the opportunity to present his project manager proposal again. The other VPs supported the idea. The next day, the CEO called the CIO and told him to make it happen.

The new project manager was selected by the CIO and officially hired by James to run the integration effort. Announcements went out, the PM got to work, pulled a plan together and brought in the necessary resources including previously contracted vendors. He then pushed the VPs and their staff for the key decisions to get the work done. The new PM discovered that almost forty percent of the total effort lay outside of the previously defined verticals. Additional work was needed to add and revise interfaces and absorb functions and technologies from the acquired company that the organization didn’t support.

The Results

The project that was originally allocated $250,000 and nine months took over $700,000 and sixteen months to complete. It was completed in July of the following year versus the planned January 1. The project manager took a phased approach to the implementation and was able to deliver some components prior to year end, which helped take some of the sting out of the later delivery. James, the erstwhile VP Integration, officially retired on January 1. The project manager continued through to implementation reporting to the CIO.

A post audit of the project found that almost $200,000 of the cost was attributable to rework from the “silo” mindset originally adopted. In addition, many of the new customers from the acquired company were so frustrated with the broken promises and miscommunications that they moved their business to competitors. That negatively impacted the bottom line. The planned ROI was not realized.

How Great Leaders Could Have Delivered

This case is a wonderful example of wishful thinking. All the executives were infected with the bug. Here are some things they could have done to deliver a different result.

• Appoint based on skills and capabilities

The CEO picked James to lead the integration effort because “he was available”. James’ plan to retire on January 1 was a perfect fit with the CEO’s desire to finish the work by January 1. What could be better? Selecting someone based on the skills needed to do the job would be a good start! In my post, Ten Winning Project Management Practices, #5 is most relevant to this case: “The project teams were a combination of internal and external resources. The teams were ‘A’ players with the right skills. A recurring theme was that ‘Availability is not a skill.’” That mindset was one of the reasons that team delivered successfully.

• Provide meaningful financial boundaries

Where did the $250,000 budget come from? It was, in fact, completely arbitrary. The CEO said it seemed about right when asked during the post audit. The problem with a wild ass guess like this is that it sets an expectation. In this case, it was a dangerous message: the project isn’t very big, and it won’t take very long, so I don’t have to worry about it.

If the CEO needed a financial target before enough information was available to estimate accurately, he could have used the approach outlined in my post, Avoiding New Technology Risks. In that post, the sponsor worked out a realistic figure of how much she could afford (it’s called ‘Worth’ in Project Pre-Check’s Decision Framework) which informed her project decision-making through to implementation.

• Collaborate widely

This organization had a very strong, department-centric culture. The VPs focused vertically. There was minimal cross-functional collaboration beyond the few touch points needed to get operational data to and fro. Under duress, the VPs opted for their natural operating style – silos.

Think of the potential they were leaving on the table; more informed strategic planning (currently the domain of the CEO and his favorite consultant) and a more ingrained strategic plan, cross-organization process improvements to improve service, reduce costs, improve quality and grow the bottom line and a much more robust capability to handle major business change.

• Build a project/change management culture

Most of the changes this organization had implemented in the past were focused within a vertical silo – customer service changes in Customer Service, engineering changes in Engineering. They didn’t have a cross-organization project/change management capability. They didn’t typically use project managers. Their knee-jerk reaction, when faced with the integration challenge, was to look internally for an executive to make it happen. At least they recognized that this undertaking was a bit different and would require a different approach.

Unfortunately, the CEO and the VPs didn’t pursue the issue further. They all knew their organizations were impacted, but they left it up to James to lead the way. In a vibrant project and change management culture, the affected executives learn to step up, take accountability and work with others to take an holistic view of the change. That’s the power of a project/change management mindset – pulling those diverse interests together to develop and follow a roadmap to success.

As illustrated by this case, wishful thinking is a dangerous approach to managing change. The launch of a project should be a clear signal that things need to be different from normal operational practices; new people, new skills, new relationships, new accountabilities, new questions, new decisions, new processes and practices, new technologies, etc. Certainly, many of the traditional causes of acquisition failure outlined up front were present here. Organizations that have a strong project culture have a clear advantage.

So, if you find yourself in a similar situation, put these points on your checklist of things to do in future endeavours so you too can be a Great Leader. And remember, use Project Pre-Check’s three building blocks covering the key stakeholder group, the decision management process and Decision Framework best practices right up front, so you don’t overlook these key success factors.

Finally, thanks to everyone who has willingly shared your experiences for presentation in this blog. Everyone benefits. First time contributors get a copy of one of my books. Readers get insights they can apply to their own unique circumstances. So, if you have a project experience, good, bad and everything in between, send me the details, and we’ll chat. I’ll write it up and, when you’re happy with the results, Project Times will post it so others can learn from your insights. Thanks