Fly Logic

Unfortunately, not everyone in your organization has the same interpretation or feel as strong as you think your project should be done - if the complete change initiative, or a facilitator, such as training or software. While some projects might fly under the radar in the beginning, at some point someone with the power has to say "Yes, let's do this" for the project to continue.

The following tips are compiled from my many years as an industrial engineer, when one of my main responsibilities is to justify both capital and human capital projects for approval by the leadership team.

Learn decision makers. Within its organization, to know who makes decisions and how decisions are similar. Who has the spending authority for a project of your size? Who has to say "yes"? What is the typical process for vetting and approval?

They speak the language. Find what decision makers believe it is important both for what they value and how they like to receive information. In my experience, for most projects I calculated recovery (project cost divided by annual savings equal to the number of years it takes to pay the cost). Other organizations may use the net present value (NPV), return on investment (ROI), or other calculations. Also, find out if there is a threshold of your project needs to hit to avoid dismissal automatic. In the same company with some reclamation projects over two years would be approved.

Befriend someone in the accounts. (or engineering.) Obtain the assistance and support of someone in your organization whose blessing of the calculations and logic will give a boost to its credibility. They also will be able to help you navigate the approval process.

To determine the competition for resources. Is one or the decision (to elect either your project or other)? Is the budget season? Would it be considered discretionary spending? Is it capital or expense?

Include aspects negative. Although more likely to want the project is approved, if the focus of the process from the standpoint of someone who just wants to know the truth, his justification will be more credible to decision makers. Do not just load for his analysis of the project with the pros. Include the contras, and to demonstrate that you've thought through all the consequences - and how to overcome or compensate for them.

Consider everything. Sometimes small things add up. Occasionally, when you get beyond the obvious implications of his finding something meaningful that can make or break the project. You may want to Nickel and Tell me the final presentation of his analysis, but does not want to leave out anything important that otherwise might be hiding. Consider the following (which might be the benefits or costs depending on your project):

• Labor and material costs
• Energy and other utilities or public resources
• Environmental impact
• Safety and health
• The cycle time or process improvements in other
• Inventory levels
• Maintenance, equipment and supplies
• The impact of customer service
• Capacity management and decision making capacity
• Effects of quality, error rates
• Employee impact, satisfaction, etc.
• Interest or cost capital
• Installation and operation efficiency, learning curves
• Training or hiring costs
• Regulatory compliance

Making dynamic analysis. Since many calculations depend on assumptions of future events or the estimates, provide the ability to test hypotheses of variable inputs such as labor or material prices (ie, the price of gasoline) or changes volume (ie phone number of calls received). Also calculate the breakeven point for the different variables - At what volume or price includes the cost of the equality of savings? Showing what happens when the assumptions change provide a sense of project risk. The ability to mitigate risk by demonstrating the soundness of the project will help the leaders feel comfortable saying "yes."

Conduct a trial. Especially for initiatives whose benefits are more intangible, conducting a trial to try to measure improvements that can be quantified and then predict when the project scope expands. Alternatively, share success stories of other companies or departments that have already implemented a similar project.

The first step towards implementing its initiative is gaining initial buy-in, approval and funding. Start with a sensitive and well informed analysis of the ability to demonstrate the risk to help to get to "yes."

About the Author

As founder of Enclaria LLC, Heather Stagl equips individuals to lead organizational change. Heather offers one-on-one coaching, online training, and step-by-step workbooks to help internal organizational change agents influence change without direct authority and control.

Find additional resources, including templates, assessments, articles and fresh ideas on implementing change at http://www.enclaria.com Listen to Heather's radio show, The Change Agent's Dilemma, at http://www.blogtalkradio.com/influencechange

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