Change Management versus Management of Change

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Is it really just semantics?Change management vsmanagement of change

Education: Remote Sensing & Aerial Photography (NSLSI)East Coast Offshore Ice & Weather ObservationBeaufort Sea / Grand Banks Ice Management Atlantic Canada Aerial PhotographyHibernia Project Mechanical Outfitting (GBS)Education: Bachelor of Technology (MUN)Terra Nova Project Loss Control 3D designTerra Nova Operations Management of ChangeLower Churchill Project Change Management & Technical Interface Management

A little about myself

14 September 2015#G. SCOTT GILLIS, B. TECH

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Nalcor Energys scope:824 MW hydroelectric development at Muskrat Falls (Labrador, near Happy Valley-Goose Bay)two 315 kilovolt High Voltage alternating current (HVac) transmission lines between Muskrat Falls & Churchill Falls (Labrador Transmission Assets)1,100 km long High Voltage direct current (HVdc) transmission line between Muskrat Falls & Soldiers Pond near St. Johns including 35 km Strait of Belle Isle Crossing subsea crossing (Labrador-Island Transmission Link)Emera NLs scope (Maritime Link):170 km 500 MW capacity subsea link to the North American grid300 kms of 230 kV HVac transmission line along new and existing corridors on the island of NewfoundlandA little about my current project


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21 August 2015


Quick Facts:

560,000 m3 of concrete required to build the structures at Muskrat Falls (~ 3 Hebron gravity-based structures )Powerhouse structure will be as tall as the Peace Tower on Parliament HillTurbine efficiency will be one of the highest obtained in NA, and the turbines will be amongst the largest Kaplan turbines in the world. LIL will include 4500 towers, 460,000 insulators and 6 million metres of conductorLIL will be the most robust transmission lines in the province. 824 MW hydroelectric facility at Muskrat Falls400 km transmission line between Muskrat Falls and Churchill Falls~1,000km transmission line between Muskrat Falls, through the Straits and to Soldiers PondEmera to construct and operate Maritime Link

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21 August 2015


Change Management versus Management of ChangeIs there a difference?If so is it important to understand?Does it impact our requirements?Does it impact how we manage?Does it impact what we report?My topic to-day


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Before addressing the difference between CM and MoC lets consider a comment on the term Change Management by itselfThe phrase "change management" can mean many things to many different people. Some may see it as simply communications and training. Others may see it from an IT perspective as the process for managing hardware and software version control. In the project management world, the phrase has sometimes been used to describe the steps for addressing a change in schedule or scope. And, some in the change management community have entertained other words as a label for managing the people side of change.Source PROSCI Change Management Learning CentreSO What EXActly is CHANGE MANAGEMENT?


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When it comes to researching the subject, the Internet is flooded with material focused firstly on organisational change management and secondly on IT related change management.However, from the perspective of capital projects, which is where I draw my experience from, I found a definition that works for me and which I have adopted:The process of incorporating a balanced change culture of recognition, planning, and evaluation [] in an organization to effectively manage project changes.Source: Construction Industry InstituteBUT what does CM mean to us?


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The 1950s marked the beginning of the modern project management era.Traditionally, project management includes a number of elements: four to five process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes will be used. Major process groups generally include:InitiationPlanning or designProduction or executionMonitoring and controllingClosingMonitoring and controlling includes: Influencing the factors that could circumvent integrated change control so only approved changes are implemented.Source: The Project Managers Desk ReferenceWhen & where did it come from


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Change Management is:Based in & a cornerstone of Project ManagementFocused on controlling scope and schedule (and resulting cost impacts) throughout the projectA means to manage scope creepFour key reasons for cost overruns in projects are:Inaccurate estimatesUnrealistic / incomplete designsPoor planningChanges in scope [which may result from these and other factors]Fundamentals of CHANGE MANAGEMENT


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A change in one of thetriple constraints of a project has an impact on the other two.The key is to find balance between the need to manage the scope of the project against the agreed requirements, cost & schedule.

Source: Simple steps to manage your project changesObjective of change Management


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15 of the worlds biggest cost overrun projectsBent Flyvbjerg, professor of major programme management at the University of Oxfords Sad Business School, says overruns in the order of 50 per cent in real terms are common for major infrastructure projects.A study of more than 5,400 IT projects found the average overspend of the starting budget can top 45% The average budget overrun for producing the Olympic Games since 1976 has been around...200%Projects gone awry 1/2


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15 of the worlds biggest cost overrun projectsCanadian Firearms Registry 36,917%Visegrad Hydroelectric Project (Yugoslavia) 5,142%Sydney Opera House 1,400%M50 South East Motorway (Ireland) 556%Copenhagen metro, stages 2A+B 386%Verrazano-Narrows Bridge (USA) 384%N20 Patrickswell Cork (Ireland) 370%Gezhouba Dam (China) 337%Guangzhou City Transport (China) 335%US 101 Helicopter (USA) 330%Boston Big Dig (USA) 324%Cuernavaca-Acapulco Toll Road (Mexico) 300%Humber Bridge (UK) 276%Dublin Port Tunnel (Ireland) 261% Nanchang-Jiujang Highway (China) 255% Projects gone awry 2/2


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The MOC element helps ensure that changes to a process do not inadvertently introduce new hazards or unknowingly increase risk of existing hazards.The MOC element includes a review and authorization process for evaluating proposed adjustments to facility design, operations, organization, or activities prior to implementation to make certain that no unforeseen new hazards are introduced and that the risk of existing hazards to employees, the public, or the environment is not unknowingly increased. It also includes steps to help ensure that potentially affected personnel are notified of the change and that pertinent documents, such as procedures, process safety knowledge, and so forth, are kept upto-date.Source: Introduction to Management of Change (Centre for Chemical Process Safety)SO What Is MANAGEMENT of change then?


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To understand the background of management of change one merely has to look at the history of process safetyThe driving force for process safety has been primarily based on catastrophic events.

Source: A portrait of process safety: From its start to present day When & where did it come from

In the 1970s and 1980s, some of the worlds most shocking and tragic industrial accidents took place. Industries and government bodies everywhere were forced to rethink the technology and management systems in industries from the safety point of view.


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Managing changes to processes over the life of a facility is one of nine elements in the RBPS (Risk Based Process Safety) pillar ofmanaging risk It includes management practices involving: the recognition of changesituations, the evaluation of hazards, the decision on whether to allow a change to be made, and necessary risk control and follow-up measures.It is not required for Like for Like Replacements or Changes in kind. These fall under routine maintenance.Fundamentals of MANAGEMENT of CHANGE


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The main product of an MOC system is a properly reviewed and authorized change request that identifies andensures the implementation of risk controls appropriate to the proposed change.Objective of Management of changeSource: Introduction to Management of Change

Ancillary products includeappropriate revisions or updates involving other RBPS activities, such as modifying process safetyinformation, and change communication/training.Outputs of the MOC element can also be used to facilitatethe performance of other RBPS elements. For example, approved change requests are necessary to determinewhen some readiness activities are performed...


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The following list includes what the Mary Kay OConnor Process Safety Center at Texas A&M University in College Station, Texas, consider the top 10 process safety incidents in history. The incidents were ranked based on the cumulative impact on loss of lives and economic losses, and the resulting impact on the development of what today we know as process safety.10 worst process safety incidents


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Fukushima Daiichi nuclear incident - 2011 (0)Columbia space shuttle disaster - 2003 (7)Phillips 66 plant in Pasadena, Texas (23) Mexico City LPG leakage 1984 (500)The Flixborough disaster 1974 UK (28)BP Texas City distillation tower 2005 (15)The Macondo blowout 2010 GoM (11)Piper Alpha 1988 North Sea (167)Chernobyl nuclear plant 1986 Ukraine (56)Bhopal Union Carbide plant 1984 India (3000+)* In ascending order based on the cumulative impact on loss of (lives), economic losses, and the resulting impact on the development of what today we know as process safety.10 worst* process safety incidents


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Software requirementsIntegration with Project Controls systems and processes versus integration with EH&S systems and processesTraining requirementsChange management will not typically have a direct / immediate implication on existing training or procedures (i.e. a design modification may impact as yet unwritten procedures or training)Management of change will often require a thorough review of associated procedure(s) in order that they be updated to reflect the impact of any changes on the procedure(s)How does this impact our requirements?


Project Management versus Process SafetyGreen field versus brown fieldProject concerns versus Operational concernsEstablishing the design basis versus understanding the design basisRisks to scope and schedule (cost) versus risks to safety and productionManaging cost exposure versus managing health, safety and environmental exposureHow does this impact how we manage?


Project Schedule and Budget versus Process SafetyProject Controls integration versus Risk Based Process Safety (RBPS) integrationFocus on Schedule milestones and contingency drawdown versus focus on Pre-Startup Safety Review (PSSR)Project sanction baselines versus original HAZOPSMaintaining the Current Control Budget (CCB) versus maintaining the Standard Operating ProceduresHow does this impact how we Report?


Yes, and here is an example of why:In 2010 I was invited to participate on a small team within Suncor tasked with developing a transition document for the purpose of bridging the gap between the corporate Management of Change Standard and the various local business units Management of Change procedures. This programme was being conducted for all standards within the Process Safety division of the organisation as well as other functional areas.One business unit did not really come on board and at the time we really couldnt grasp their lack of interest in our initiative, which on all accounts was very successful and set a standard for other groups to follow.Suncors Major Projects division was speaking a different language all together they were interested in Change Management rather than Management of Change and our efforts were of little value or interest to them.When I took my role on the Lower Churchill Project this became quite clear to me and I had to adapt to the Project Management world that was foreign to me while working with Petro-Canada / Suncor.Does this really matter?


Change ManagementA Project Management process for administering scope and schedule changes efficiently and cost effectivelyManagement of change A Process Safety approach to administering changes to a facility that takes into consideration the impacts on health, safety, environment, and production.ConclusionAlthough there are common elements from a structural perspective, processes, procedures, and programs must tailored to address and be able to accommodate the requirements of one or the other.From a service providers perspective it is important to understand the differences, recognise the opportunities in both market niches, and tailor their products and services accordingly.Summary


Red Greens view on the wisdom of resisting change:https://www.youtube.com/watch?v=--KXkdStee0&list=PL8S43Q4MV8rd9iEONrAqZSh1-_APZ521T&index=2

And finally, a moment of reflection


Web sites used in the preparation of this presentation include:http://www.change-management.com/tutorial-definition-2010.htmhttps://www.construction-institute.org/scriptcontent/index.cfmhttp://smallbusiness.chron.com/reasons-cost-overruns-project-management-63225.htmlhttp://www.fm-magazine.com/infographic/prime-number/15-world%E2%80%99s-biggest-cost-overrun-projectshttp://svprojectmanagement.com/simple-steps-to-manage-your-project-changeshttp://www.aiche.org/ccps/topics/elements-process-safety/manage-risks/management-change/introductionhttp://www.hydrocarbonprocessing.com/Article/3050913/A-portrait-of-process-safety-From-its-start-to-present-day.htmlhttp://www.slideshare.net/ahmedgamal80/safety-instrumented-systems-angela-summershttp://www.aiche.org/ccps/topics/elements-process-safety/manage-risks/management-change/introductionhttps://www.youtube.com/watch?v=--KXkdStee0&list=PL8S43Q4MV8rd9iEONrAqZSh1-_APZ521T&index=2http://www.pmi.org/learning/~/media/PDF/Knowledge%20Center/one-solution-project-success-whitepaper.ashx Sources


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Change Management versus Management of Change