A Project Fable: The Importance of Organizational Change Management

Every project manager has heard a tale of failure so perfectly avoidable that it reads like fiction. The story I’m about to share is one of those tales: a fable drawn from real-world experience. Although it focuses on payroll, its lessons apply to every industry and type of project. The story revolves around missing macro, or organizational, change management, ensuring an organization is ready to receive a project. It's a stark reminder of how a preventable breakdown can lead to project failure.

The Promised Improvement

Once upon a time, the executives of the Fredonia Global Training Company sought to modernize their payroll system. They believed a new system would streamline processing, cut costs, and reduce errors. Unfortunately, the announcement came down as a fait accompli. The decision was made, the path chosen, and only a handful of executives had a voice in guiding it.

At first, the project team felt confident. They had a clear directive from the top. A project manager was assigned, but before he could fully engage with the effort, the sponsor redirected him to an entirely different task: tracking software bugs. Instead of guiding the project and mentoring the team, he was busy counting defects. This highlights the crucial role of the project manager in steering the project and the detrimental effects of their disempowerment.

Months later, as rollout approached, hundreds of employees awaited training on the new payroll system. However, the training schedule aligned with the project team’s availability, rather than the learners' needs. Employees were told to attend at times that disrupted their work rather than supported it.

Even worse, the system itself was still evolving while training was underway. Screenshots in the manuals no longer matched training slides or what employees saw on their computers. Learners were told to click buttons that no longer existed or navigate redesigned menus. Confusion spread quickly.

Results Nobody Wanted

The result was predictable and painful. Payroll cycles took longer than ever, and employees were frustrated by delayed and error-filled paychecks. The support team was overwhelmed by the number of requests and the time it took to resolve them. Other projects across the organization stalled as resources were pulled into emergency firefighting.

It took more than a year to stabilize the new system and restore trust in payroll. By then, the supposed improvement project had become infamous as one of the most disruptive changes in the company’s history.

What Went Wrong?

It’s tempting to blame the new system. After all, software and other IT projects are notorious for bugs and delays, right? Here, technology was not the true culprit. The real causes were organizational.

• Decision-making excluded impacted stakeholders. Employees who relied on the payroll system had no input into it.
• The project manager lacked empowerment. Instead of steering the project, he was sidelined.
• Training served the project’s schedule, not the learners’ needs. When people weren’t adequately prepared, adoption collapsed.
• Rollout occurred amid instability. Training on a moving target ensured confusion.

In short, this was not a story of bad code but of bad change management.

Beyond Requirements: The True Moral

Many project managers are taught to emphasize good requirements. “Get the requirements right, and the project will succeed,” we’re told. However, this fable demonstrates that even with functional requirements captured, a project can still fail spectacularly if it overlooks the broader context.

Projects are not just technical exercises. They are macro-level changes to the organization. They touch people’s jobs, routines, and confidence. For change to take root, communication must be transparent, involvement must be broad, and leadership must empower those who carry the responsibility. This highlights the importance of involving a wide range of stakeholders in projects that have a significant impact on the organization.

A payroll system is the heartbeat of how people are paid. When the organization treats such a project as a mere technical upgrade, it forgets that human beings are at the center. This human element should always be at the forefront of project planning and execution, fostering a sense of connection and empathy among all involved.

Communication: The Missing Lifeline

What if, instead of a top-down announcement, leaders had hosted discussions with employees? What if they had shared the vision, listened to concerns, and adjusted plans accordingly?

Communication should not be a one-time event but a continuous lifeline. Regular updates, ethical progress reports, and clear expectations would have built trust rather than resistance. When people feel informed and respected, they are more likely to lean into change rather than resist it. This continuous communication is key to keeping everyone involved and informed.

Consider how different the story might have been if employees had been involved from the outset. Payroll clerks, HR specialists, line managers, and even regular employees could have provided valuable insights into processes that executives might have overlooked. Their involvement would have built not just better requirements but a sense of ownership in the new system.

And what of the project manager? Stripped of his ability to influence the project, he was unable to lead effectively. In healthy projects, sponsors empower their managers, trusting them to make informed decisions and lead teams effectively. Without that empowerment, the project drifted aimlessly, and a predictable disaster followed.

How to Avoid the Same Mistakes

The payroll fable may be painful, but its lessons are clear for anyone leading projects:

• Involve stakeholders from the start. Their insights and perspectives are invaluable to the project's success.
• Empower your project manager. They are leaders tasked with guiding change.
• Design training for learners, not for convenience. Meet users where they are, and ensure the system is stable before training begins.
• Communicate constantly and clearly. Over-communicate rather than under-communicate, and always invite feedback.
• Freeze changes before rollout. Training and adoption depend on stability.

These aren’t radical ideas—they are foundational project management practices. Yet they are often ignored when pressure mounts, and the results can be catastrophic.

A Fable Worth Remembering

The payroll improvement project was meant to save time and money. Instead, it costs both in abundance. The real tragedy wasn’t flawed software or delayed paychecks. It was a preventable breakdown in macro-level change that required communication, involvement, and empowerment.

The moral is simple: projects don’t fail because people resist change—they fail because people are left out of change. Success comes when everyone is working with you, rather than against you.

So the next time you lead a project, remember the payroll fable. Gather your requirements, yes, but go further. Involve, communicate, empower. Do this, and your project won’t just deliver—it will be embraced.