Introduction
All organisations are required to change as a result
of mandates by outside bodies. Such mandates may come
in the form of legislation and regulations from Government
and their associated agencies or simply by the emergence
of de facto standards brought about by changing industry
practices. All organisations will be affected from
time to time, regardless of the industry or geography
within which they operate. For example:
So What?
The time and resources required to implement externally
mandated changes are often distracting from an organisation’s
core focus. The period of change may be highly disruptive
and is likely to reduce performance levels while change
is taking place.
The costs (direct and indirect) associated with implementing
mandatory change are typically significant and implementation
usually will have no positive impact on the “bottom
line”. Any money spent on such projects therefore
is seen to dilute the capability of the business to
invest in areas that do provide a return on investment.
Businesses can struggle to provide an appropriate
level of focus to mandated change. Starved of attention,
the strongest resources and sufficient investment,
the mandated projects are destined to be the problem
children, which eventually need rescue.
Enhancing the Likelihood of Success
The obvious requirement for effective project management
applies across all change projects whether mandated
or not. In addition, PIPC strongly recommends the
following actions based on our practical experience
of enhancing the likelihood of successful delivery
of mandated change:
1: Communicate with the Mandating Agency
Developing a dialogue with the mandating agency early
on will have a number of positive impacts:
In order for the relationship to be effective it
has to be managed carefully. The persons involved
need to be credible and provide value in discussions
with the mandating agency. They must be empowered
by the organisation they represent and receive appropriate
internal support. Finally, they must have sufficient
influence within their organisations to initiate and
drive the relevant projects.
2: Effective Internal Communication
Mandated change often has an impact beyond a particular
operating unit or a single geography; all parts of
the organisation may be affected. Therefore, a consistent
and coordinated approach to communication is required
for all parties.
Typically organisations are not sufficiently effective
in this communication and those parts of the organisation
that are informed may not be sufficiently invigorated.
Some parts of the organisation will often not be reached,
yet are still impacted by the mandated change.
3: Turn the Negative into a Positive
There is significant advantage to be gained from achieving
the change better or faster than competitors. Implementing
the mandated change rapidly and successfully allows
your organisation to get on with your normal day to
day business. Use your in-house project champion to
make staff aware of the positive outcomes of the change
and it will be seen as an opportunity rather than
a burden. Adopting a positive approach to mandated
change will provide benefits from a marketing and
public relations perspective, especially over competitor
organisations that are either slow or less effective
with their own changes.
4: Effective Governance
The establishment of effective governance will ensure
delivery of the projects required to implement the
mandated change. Strong governance together with an
appropriate control framework will ensure mandated
change is implemented in a timely and cost effective
manner.
Looking to the Future
With a strengthening global economy and the convergence
of technology, communication and trade, markets are
seeking broader opportunities which come about through
the ability to operate and interact internationally.
It is inevitable that mandated change will increase
to ensure this increased globalisation is well controlled.
The implementation of such changes, rather than being
seen as the cost of doing business today, should be
viewed as an investment for business growth tomorrow.
PIPC is well placed to help your organisation implement
mandated change effectively and to turn this into
an opportunity to develop your business. We have helped
many blue-chip organisations across the globe deliver
change across their organisations under tight and
immovable deadlines.
