Delivering a project on time and on budget does not necessarily mean that the project's intended benefits and planned ROI are realised. Often projects are delivered and only later face the reality that there was a gap between what returns were expected and what were actually achieved. Any project not considering the integration of change management will struggle to optimise the business results it expects. 

• What are the differences/similarities between Project Management and Change Management
• What benefits flow from integrating Project Management and Change Management
• How does Change Management and Project Management impact the ROI of change projects? 

What are the differences/similarities between Project Management and Change Management?

Project management and change management are often considered to be the same thing. Although there are some similarities, they are founded from two different disciplines. Both aspects involve the use of people, processes and tools to effectively help organisations reach their project and strategic objectives.

That said, project management is often more focused on the technical side of change - building the new capability. In a traditional approach it often has a defined start and end date and includes tasks, milestones and final deliverables as well as formally identified processes with desired requirements and goals. It often involves a well-documented and guided processes which has been established through a formal project management body of knowledge. 

With the more fashionable Agile approaches to project management in use today, while the budget and timescale are defined and constrained, the new capability is built incrementally through a series of "sprints" and often cannot be fully foreseen when launching the project. 

Change management - the people side of change - is applicable to both the traditional and Agile project management approaches. It too has a documented process for achieving individual and organisational change objectives and is focused on the delivery of ROI from the adoption of the new capability by impacted Line Managers and Front Line employees. Change management milestones can be aligned stage gates in the Project Management lifecycle, for example using the Prosci ADKAR model for individual change, to programmatically ensure adoption and ROI generation.

What benefits flow from integrating Project Management and Change Management?

Projects often cause stress for stakeholders and employees. Although not universal, in some organisations project managers are becoming responsible not only for delivering the new capability on time and on budget, but also for the realisation of the expected business results and ROI.

To enable this, change management professionals are increasingly being integrated into project teams and projects managers are increasingly recognising the need for their personal investment in how to do better change management.  Organisations are adopting a variety of team structures to integrate the people, processes and tools of the project and change management disciplines. This change in the ways of working helps to reduce unnecessary stress and anxiety for employees impacted by change, as techniques to ensure effective user adoption of new capabilities are designed into project/change plans right from the outset.

Overall, organisations should encourage change management professionals and project managers to work closely together to ensure project efforts deliver expected ROI, as well as finish on time and on budget, and reduce the impact of change on the productivity of employees and line managers. Prosci research has shown that projects with excellent change management are 71% more likely to be on schedule and 81% more likely to be on or under budget.

Download: The Value of Integrating Change Management and Project Management

How does change management and project management impact the ROI of change projects?

The ROI of change management is intricately linked to how effectively employees embrace and utilise new changes in their work processes. At Prosci, we call this the "people side of change," where we support impacted employees in embracing, adopting, and using the new capability. By focusing on the speed of adoption, ultimate utilisation, and proficiency, change management directly influences the overall return on investment for a project. Integrating change management into project management ensures that the intended results and outcomes are achieved, providing a comprehensive approach that not only meets technical and budgetary goals but also maximises the value delivered to the organisation. Embracing this integrated approach allows organisations to fully realise the benefits of their change initiatives, fostering a culture of adaptability and continuous improvement.