Managing change in the project plan. How to prepare for unpredictable changes?
It’s a rare feat for projects to unfold exactly as per the initially approved plan. Unforeseen events often disrupt the course of a project, necessitating a structured process to accommodate changes. While managing changes to the project plan is not a daunting task, it’s crucial for any organization to have a well-defined internal project management procedure that outlines this process.
Key takeaways:
- Why project plans often need changes
- Common reasons for project changes and risks
- How to prepare for unpredictable changes
- Steps to handle changes when they occur
- Importance of formal change requests and approvals
What are the underlying reasons that may prompt a project to change, and what are the potential risks that come with these changes?
When building a project plan, the team makes several assumptions based on their expertise and understanding. These assumptions arise from a good understanding of the effect the project is intended to have, its scope, and the expectations of the stakeholders. A project charter is created at this stage, which is most often an integral part of the project plan. In projects with a recurring nature, the project plan is often more refined than in projects the organization is implementing for the first time. This is undoubtedly due to the organization’s previous experience. Of course, every project plan is a particular assumption of how we want things to turn out. However, it is impossible to predict everything, and it is often unreasonable to try to do so at all costs. Therefore, it is worth adopting organizational principles that describe managing changes to the project plan. The need for changes can arise for a wide variety of reasons, quite common: price changes, supplier delays, changing stakeholder expectations affecting the project scope and deliverables, etc., or insufficient competence of the project manager.
What processes and tools are worth implementing to make project change management effective?
Managing changes to the project plan is worth doing with practical tools. Undoubtedly, we should be able to show what the current project plan looks like, what changes we propose, and what it will look like after the change. Regarding the project schedule, Gantt charts are pivotal in clearly showing the current and future versions. The figure below shows the current and future project plan – such functionality is available in the project management software FlexiProject, among others:
In practice, the organization is recommended to have a special request for a change in the project plan (so-called “Change Request”). When a project manager considers it reasonable to apply for a change in the project plan – due to compelling circumstances – it is worthwhile for them to do so with a Change Request. In such a request, the manager describes, for example, the reason for the change, the alternatives considered, and the impact of the change on the project schedule, budget, and project goals and scope. An example of a change request to the project plan is shown in the illustration below:
What steps should be taken to prepare for unpredictable project changes?
Especially on a complex project, efforts should be made to develop the best possible project plan. In practice, this often only happens sometimes. Many teams start a project with a poor plan. Indeed, this approach means that changes to the project plan will occur quite quickly. Even with a good project plan, it is worth developing a sound risk register. The more project risks we identify at the outset, the more accurately we will build the project plan. Many risks can already be eliminated at the planning stage. The initial project plan must be formally approved. The fact that a project plan must be submitted for approval forces you to ensure it is of high quality. Indeed, only some things can be foreseen. Therefore, the project schedule and budget projections must consider all relevant new circumstances. When the forecasts deviate significantly from the current plan, an amendment should be requested.
What action should be taken when unpredictable project changes occur?
Undoubtedly, not all new circumstances on a project will force a change in the project plan. Many new circumstances that arise on a project are either risks or so-called project issues. It is, therefore, definitely worth keeping a register of project risks as well as a register of topics. Good project management software usually has both registers. The added value of the register of risks and problems in the project management application is that all stakeholders have a parallel view of them. If some project risks cannot be adequately mitigated, it is helpful to take a proactive approach and plot their effects on the project schedule and budget as forecasts. This prepares the team for potential deviations and gives them a sense of control. Unquestionably, if these forecasts deviate significantly from the current project plan and seem unavoidable, a change to the project plan should be requested.
Effective management of project plan changes
Managing changes to the project plan is critical in implementing any project. Such changes should be well justified in the request and then formally approved. Only compelling circumstances justify a change to the project plan. A good project management program should have a ready-made ‘change request’ and the ability to formally approve it.
