10.2.2020

Better Results in IT Projects through Change Management

Your IT project started well, but now you have hit an impasse. Did your supplier’s new update turn out not to be what you were expecting? Does it look like the delivery of part of the project will be significantly delayed?

Clients and suppliers often do not want to sit around negotiating these kinds of situations beforehand, but these issues can often escalate into full-blown IT disputes.

IT disputes can often be avoided through agreed collaboration mechanisms, such as change management and steering group processes.

WHAT IS CHANGE MANAGEMENT?

When we talk about changes in this context, we mean changes to the agreed outputs of a project. Changes usually lead to more work, increased budgets and delayed timetables.

The purpose of change management is to identify, discuss and plan for significant change needs that will have an impact on the goals of the IT project and that have been agreed in the specifications. Change management is worth using in both traditional and agile software development models in order to stay on top of potential changes to the timetable, goals or budget of a project.

Clear change management processes can contribute significantly getting a project across the finish line flexibly and without disputes. Change management practices can be used to curb excessive desires for changes, to analyse changes better and assess their necessity more thoroughly. 

HOW DO THINGS USUALLY GO IN PRACTICE?

If the scope and details of a project are unclear when entering into the agreement, you should expect trouble. The parties may have very different ideas of what the project is trying to achieve. The client may think they are getting a tailored set of ‘emperor’s new clothes’ suitable for all normal purposes and conditions. In contrast, the supplier may have come away thinking that the clothes have to be chic and practical, but may not have realised that they also have to be warm and waterproof.

When these kind of situations arise, the attempted solution is often for the project managers to agree on new deliverables and a new timetable for the project, despite the fact that the agreement may state that only valid way to decide on changes is for the steering group to make a decision and record in the minutes of a meeting. At worst, this can lead to a situation where, months down the road, the parties discover the discrepancy between what had been agreed and what was delivered, or at least find themselves with fundamentally different views of what had been agreed. A ‘flexible shortcut’ taken with the best of intentions could ultimately lead to the courtroom.

HOW CAN YOU AVOID THESE PROBLEMS?

There is no getting around the importance of the parties taking the time to carefully draft the specifications for the project when trying to avoid disputes caused by differing expectations. The parties also need to have procedure for taking the client’s changing needs into account. This procedure needs to set forth how the parties agree on changes to the scope of the agreement while the agreement is in force in a manner that is binding on the parties.

Once you sign the agreement, do not just leave it to collect dust in your archives. If the agreement contains clear clauses on change management, it is worth writing up straightforward change management instructions for the client’s and supplier’s project teams. Even the best agreement cannot prevent disputes if it is not complied with in practice.

Latest references

We advised Valio Oy in its acquisition of Raisio Oyj’s plant protein business, related fixed assets and the Härkis® and Beanit® fava bean brands. The fixed assets include, among other things, the production equipment of the factory that makes plant protein products in Kauhava. The transaction supports Valio’s strategy to grow from a dairy company to a food company. This business acquisition will make us an even more significant developer and producer of plant-based protein products. The demand for these products will grow in the long term, and a great deal of growth potential still remains. In 2022, we acquired the Gold&Green® business and, since then, we have been carrying out strong product development and renewed the brand. Following successful product launches, sales in the last quarter of 2024 increased by about 50% from the previous quarter. With this acquisition, we are building our own production capacity. The production equipment of the Kauhava factory is just right for our needs and situation. says Kimmo Luoma, Valio’s Senior Vice President. Valio is a Finnish dairy and food company founded in 1905 and owned by Finnish dairy cooperatives. Valio has subsidiaries in Sweden, Estonia, the United States and China. In 2023, the Group had a turnover of EUR 2 278 million and more than 4 000 employees.
Case published 14.2.2025
We advised WithSecure Corporation in the sale of its cybersecurity consulting business to Neqst. WithSecure is a global cyber security company (listed on NASDAQ OMX Helsinki). Neqst is a Swedish investment firm, focusing on technology companies. The closing of the transaction remains subject to customary conditions and regulatory approvals.
Case published 24.1.2025
We assisted Smarter Contracts Ltd in the process where the Finnish Transport and Communications Agency Traficom confirmed it to be an EU-recognised data intermediation service. Non-EU companies must have a legal representative in some EU country so that they can offer data intermediation services in accordance with the Data Governance Act. Smarter Contracts is based in Great Britain and selected Finland for the task. Smarter Contracts is the first non-EU data intermediation service registered by Traficom. Wayne Lloyd, Founder & CEO of Smarter Contracts, remarked:  The support from the Castrén team was exceptional from start to finish. Pioneering new territory is never without its challenges, and as the first non-EU data intermediation service provider, we faced significant legal uncertainties. Despite these complexities, the Castrén team expertly guided us through each step with remarkable efficiency, providing the certainty we needed. Smarter Contracts leverages its proprietary Pulse Permissions Protocol® to deliver advanced consent and access rights management services. This milestone highlights Castrén & Snellman’s proficiency in navigating intricate regulatory landscapes, whilst recognising the relevance of Smarter Contracts’ innovative approach to secure, compliant data management.
Case published 11.12.2024
We assisted Pharmaca Health Intelligence in its acquisition of Mediaattori Ltd’s PODIUM Connect® and PODIUM Visits businesses. Through the acquisition, Pharmaca Health Intelligence strengthens its extensive service offerings in medical information, data-driven management, and education for both healthcare and pharmaceutical companies. Pharmaca Health Intelligence is a pioneer in digital medical information and a reliable partner for wellbeing services counties, the private healthcare sector and pharmacies. The company invests in the development of technology and service solutions related to pharmaceutical information, also on an international scale.
Case published 5.12.2024