11.12. Change Thresholds and Change Boards

While everyone admits the value of change management, we also want to avoid any drag it might add to decision making. Including all stakeholders in every decision just isn't necessary. Therefore, to balance the need for change management against the desire for flexibility and quick decisions, the project manager needs to separate changes into different categories, depending on how deeply they affect the project. These categories, called change thresholds, are as follows:

• The lowest threshold is for changes that the project team can approve. These changes typically don't affect the cost, the project schedule, or the way in which the customer will use the product. However, they can include design changes that make the product work better or last longer. Even though the team or project manager has the authority to approve these changes, they will still need to be documented.

• The second threshold, which involves changes that will affect cost, schedule, or functionality, requires more formal approval. This is the domain of the change board. Change boards meet on a regularly scheduled basis and consist of people representing the views of all stakeholders.

• Even though a change board may be authorized to approve cost and schedule changes, it is usually for a limited amount only. Above that designated amount, higher-level executives from the customer and project organizations must be involved. This is because these changes are usually large enough to threaten the business case for the project, fundamentally altering its profitability and market value.