1. The Need to Change

Note: In this framework, the term initiative refers to programs and projects. The term work execution unit refers collectively to programs, projects, phases, releases, and work packages, all of which are considered temporary organizations.

The Dual Imperatives of Organizational Operations

To survive and prosper, an organization must adeptly manage two competing yet equally essential imperatives at the same time.

• Maintaining Current Operations: The first imperative is the preservation and continuation of existing business activities. By selling its current products and services to its established customer base, the organization generates the revenue required to sustain itself financially.
• Transforming Business Operations: The second imperative involves the continuous transformation of the business. An organization cannot rely solely on its existing products, customers, and methods, as this approach is unsustainable in a competitive market. Without consistent improvement and evolution, competitors will eventually surpass the organization. Therefore, enhancing value creation capabilities is critical for long-term survival.

Change Initiatives as the Mechanism for Transformation

programs and projects are the established means for enacting organizational change, while phases, releases, and work packages structure and decompose the execution of that change. They are defined as temporary organizations created to produce unique business elements that transition the enterprise from its current state to a desired future state.

Nature and Purpose

These initiatives are distinct from the permanent organization responsible for ongoing business operations. Their temporary structure is specifically designed to produce unique deliverables. Once the desired business outcome has been delivered, the initiative concludes, and its participants can be reassigned to new tasks.

Nature of Deliverables

The outcomes of these initiatives can be diverse and significant. They include the creation of new processes, capabilities, services, and products. Moreover, these endeavors can facilitate fundamental shifts in organizational attitudes, beliefs, and behaviors.

Triggers for Organizational Change

The need for change, and therefore for a program, project, phase, or work package, is typically prompted by one of three primary catalysts.

Addressing Problems

initiatives are frequently launched to resolve existing or anticipated problems within the organization. These changes are intended to enhance operational efficiency and effectiveness. Examples include:

• Improving production methods
• Reducing operational costs
• Enhancing the quality of services

Seizing Opportunities

Change is also undertaken to capitalize on opportunities for growth and expansion. initiatives in this category are strategic undertakings designed to increase market presence or expand revenue streams. Examples include:

• Entering a new market territory
• Targeting a different market segment

Complying with Regulations

Finally, change may be mandated by external forces. An organization must comply with new regulations, such as those related to the workforce or environmental standards, regardless of its own preference. initiatives are therefore required to implement the necessary adjustments to meet these legal or governmental mandates.

The Business Case: Justifying Investment

The formal justification for undertaking a program, project, phase, or work package is documented in a business case. This document serves as a critical tool for senior management, providing the information required to make an informed investment decision. The central function of the business case is to allow leadership to assess whether a potential initiative meets key criteria.

Based on this comprehensive assessment, management determines if the initiative represents a worthy investment for the organization.