Change Control Board

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21 Aug, 2024

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A Change Control Board (CCB) refers to a group reviewing any proposed changes or recommendations to an existing plan or strategy. Also known as a change review board, it comprises departmental managers, subject matter experts, stakeholders, and other frontline employees.

The main objective of CCB is to consider how the new proposals would affect the existing objectives, customers, investors, and other stakeholders. They should also review its financial aspects. Based on their research and review, the observations are communicated to the concerned department, along with their suggestions.

What Is a Change Control Board?

A change control board definition refers to an organizational committee with change management responsibilities.
CCB reviews the proposal, decides if they should go ahead with it, and then plans how to integrate it into the organizational culture and existing business strategy.
It comprises managers(s), executives, frontline employees, subject matter experts, investors, customers, and external agencies.
A CCB is often assisted by a change advisory board that advises the CCB on schedules and implements the changes recommended by the former.

Change Control Board Explained

A change control board is a significant concept in an organization. Businesses consider going concerns to ensure the firm exists well into the foreseeable future. They know that the only thing that continues to infinity is change and hence they will have to come across many changes and transitions from time to time. Hence, the significance of change management.

Change management refers to the policies and procedures involved when an organization faces internal and external changes. The transformations help the organizations adapt to newer laws, policies, technologies, customer preferences, stakeholder interests, etc. If not for changes, the organizations would become stagnant.

A CCB comes in when an existing plan – a project or a budget – is already implemented, but there are some disruptions or new changes. So, the CCB first decides if it should give the green light. If so, they analyze how the new change should be integrated into the existing system. They consider the people, processes, capital, and other concerns.

Roles & Responsibilities

The roles and responsibilities of the CCB and individual members will vary according to each industry and organization. For example, a software company's CCB will have different goals and scope than an apparel firm. However, let us generalize our approach to understanding their functions in the change control board process flow.

The CCB has to conduct a brief research or study about the proposed changes. They must collect relevant information regarding its functionality, efficacy, cost, expected revenue, etc.
Next, the board has to ascertain how the new changes will affect the existing plan and its objectives.
The CCB must also consider how the organization's stakeholders react to the new proposals. The interests of the customers and investors will have to be accounted for.
Next is reviewing the legal, functional, financial, and technological implications of adopting the changes.
They are finally deciding how these changes can be implemented and accommodated as a part of the existing plan.

Now, let us explore the individual roles that a change control board may include:

Manager – The manager heads the committee and ensures the coordination of the members. They are the final decision-making authority and must assess the member's opinions and suggestions before deciding.
Subject matter experts - These are professionals with relevant experience and expertise on how to accommodate the proposals. They also have sufficient external industry exposure and can bring much—for example, consultants.
Employees - They can be members of different departments – accounts, human resources, marketing, production, R&D, etc. The presence of these people on the committee will help understand the concerns of each department and arrive at a decision acceptable to all.
Stakeholders – Sometimes, the CCBs also include customers and shareholders so that they can also provide their valuable opinions. It can reflect the reactions of other stakeholders and do minor damage.

Examples

So here are some examples to understand the concept in a better way.

Example #1

Suppose, Power-XYZ is an energy transmission company in Country Q. In February 2023, the management laid out an annual plan for the fiscal year 2023-24 when the government announced a $1 million monthly subsidy to energy companies switching to 100% green energy by the end of 2027. The amount was too significant, and the company changed its original plan.

Power-XYZ had initially decided to switch by 2030, but now they had to plan. The company had a month to make the necessary changes to its operations and use the subsidy. Power-XYZ sets up a CCB consisting of 25 members to oversee the transition.

Example #2

Here is a study from Forbes about the failure of CCBs in change management. There are four main reasons for this. Firstly, employees need to understand the rationale behind the effort. Out of 30,000 people surveyed, only 15% could identify this rationale. Secondly, top-level executives like taking up challenges and getting out of their comfort zone, while others do not share this enthusiasm.

Thirdly, leaders need more time to be ready to share their challenges openly. It is essential as it can positively influence the employees and make them more responsive. Finally, employees need to be more receptive to change. Affiliation, achievements, and security motivate them the most, but radical changes or transformations don't do well with them.

Change Control Board vs Change Advisory Board

In change management, organizations often employ two fundamental entities: the CCB and the Change Advisory Board (CAB). While both play crucial roles, they differ in their functions and responsibilities, as outlined in the table below:

Basis	CCB	CAB
Role in Change Management	Primary decision-making role in change management.	It plays a supportive role in change management, assisting CCB.
Function Definition Relative to CCB	Functions independently but focuses on strategic decisions.	Functions are often defined relative to the CCB's actions.
Interchangeability	Generally distinct from CAB.	It may be used interchangeably with CCB in some organizations.
Primary Task	Decide whether to accept or reject change proposals.	Assists in implementing, scheduling, advising, and assessing changes.
Secondary Task	N/A	Ensures smooth CCB functioning and complements its responsibilities.

Frequently Asked Questions (FAQs)

1. Why is CCB important?

A change control board in project management helps the organization manage the changes it faces. It can be new policies, laws, procedures, technologies, customer perceptions, etc. If the management makes a wrong decision, it will affect the firm gravely.

2. Are CCBs only used in project management, or do they have broader applications?

While CCBs are commonly associated with project management, their applications extend beyond projects. They can be utilized in various domains, including IT, quality management, and organizational change management, to ensure that changes are thoroughly evaluated and controlled.

3. When should an organization engage a CCB in change management?

An organization should engage a CCB when it faces significant changes that could impact projects, processes, or systems. CCBs are typically involved when existing plans or strategies must be adjusted due to internal or external factors, ensuring changes are effectively managed and integrated.