‘RIGHT FIRST TIME’ INTRODUCTION OF NEW PLANT, EQUIPMENT AND SYSTEMS.
Capital Expenditure on new equipment and processes is not cheap. It is nearly always urgent, disrupts the existing business, diverts resources and usually contains complications, complexity and uncertainty. This often results in investment projects going over-time, over-budget and failing to deliver the results required to justify the ROI.
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The process in which Capex is typically considered from a Project Management stance:
1. Assess the business case and options 2. Select and approve the appropriate investment opportunity 3. Define and design the project 4. Execute the project 5. Embed the benefits This approach typically aims to achieve clarity, provide governance and track the progress of the ‘approved’ project plan. However, Capex projects require the input and involvement of a large number of people in order to deliver the intended results, all of whom have differing perspectives. |
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In reality, the transition that people have to make is a key factor that is rarely considered in such a project plan. Transition takes place in a human and social context within a dynamic environment.
3 Key Success Factors
There are 3 key factors concerning Capex projects which will help to determine their success against a plan:
1. Maturity - is the experience to deliver the project using a balanced change approach evident?
2. Capability - are the skills and resources to deliver the project using a balanced change approach evident?
3. Complexity - do those involved adequately understand the number of project variables, the interactions between them, and the unpredictability of those interactions (particularly in respect to the ‘people’ aspects of a project).
Therefore, whilst a project management perspective is important, having a change management perspective is an equal if not greater requirement for the accurate assessment, planning, preparation and successful delivery of the project.
There are 3 key factors concerning Capex projects which will help to determine their success against a plan:
1. Maturity - is the experience to deliver the project using a balanced change approach evident?
2. Capability - are the skills and resources to deliver the project using a balanced change approach evident?
3. Complexity - do those involved adequately understand the number of project variables, the interactions between them, and the unpredictability of those interactions (particularly in respect to the ‘people’ aspects of a project).
Therefore, whilst a project management perspective is important, having a change management perspective is an equal if not greater requirement for the accurate assessment, planning, preparation and successful delivery of the project.
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Our services
Duxinaroe offer organisations the option to bring in external change management expertise to guide, support and develop their Capex project teams from the start. By adopting the Dux Method your team will learn how to balance the tangible requirements of any project with the intangible change management requirements to achieve: - A greater level of understanding in project leaders and teams - A greater level of understanding in stakeholders - Reduced levels of anxiety for all - Reduced levels of resistance to change - Engaged and actively participative stakeholders - Better ‘start-up curve’ performance |
