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Exploring Essential Change Practices for the Successful Execution of

Organizational Change Efforts in Capital Project Organizations

Conference Paper · August 2023

DOI: 10.3311/CCC2023-040

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Proceedings of the Creative Construction Conference (2023)
Edited by: Mirosław J. Skibniewski & Miklos Hajdu Keszthely, Hungary
https://doi.org/10.3311/CCC2023-040 20-23 June 2023

EXPLORING ESSENTIAL CHANGE PRACTICES FOR THE

SUCCESSFUL EXECUTION OF ORGANIZATIONAL CHANGE
EFFORTS IN CAPITAL PROJECT ORGANIZATIONS
Makram Bou Hatoum1, Mahmoud El Jazzar1, Hala Nassereddine1
1 University of Kentucky, Lexington, Kentucky, USA

Abstract
The past few years have brought major disruptions to historically stable industries. Events such
as the COVID-19 pandemic, labor shortages, low-carbon initiatives, and infrastructure
investments have been driving organizations to rethink their current-traditional ways and
models of conducting business, and in turn, initiating major organizational change efforts. The
capital projects industry is no exception, as capital project organizations are dealing with an
endlessly changing environment that is continuously destabilizing the design, construction,
delivery, operation, and management of capital projects. Thus, to remain successful in this
changing environment, capital project organizations need to properly plan and successfully
execute their change efforts. As such, the objective of this study is to investigate change
practices that can be essential in supporting the successful execution of organizational change
efforts and allowing organizations to effectively adapt to changing environments. To achieve
the desired objective, a three-step methodology was adopted. First, a series of interviews were
conducted with capital project organizations to learn about their past and ongoing
organizational change efforts. Next, thematic analysis was employed to code common themes
and identify the utilized change practices. The practices were then defined using the existing
research corpus. The methodology resulted in a set of 60 change practices that are presented
and defined in this paper. The findings of this study can be important for industry practitioners
as they can use the change practices in planning and executing their change efforts, as well
as researchers who can build on the change practices when investigating organizational
change both inside and outside the capital projects industry.

© 2023 The Authors. Published by Diamond Congress Ltd.

Peer-review under responsibility of the scientific committee of the Creative Construction Conference 2023.

Keywords: capital projects, change efforts, change management, change practices, organizational change.

1. Introduction

The capital projects industry plays a crucial role in developing and maintaining complex and large-scale
projects that are essential for economic growth and development such as highways, airports, and power
plants [1]. For the past few years, the industry has been navigating a rapidly changing environment that
is fueled by multiple factors such as an aging workforce [2], labor shortage [3], technological
advancements [4], aging infrastructure [5], and environmental legislation on carbon emissions [6] and
resource efficiencies [7].
To adapt to these changes, capital project organizations have been undergoing organizational change
efforts to transform their traditional business practices [8], and such efforts have significantly accelerated
after the COVID-19 pandemic [9]. In fact, the majority of industry leaders and decision-makers recognize
the need to rethink the current state of conducting business [10]. This recognition also comes at a time
when global capital project spending is projected to reach 130 trillion dollars globally by 2027 to

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https://doi.org/10.3311/CCC2023-040 20-23 June 2023

decarbonize and renew critical infrastructure, thereby creating vast opportunities for capital project
organizations to seize market opportunities and generate profit [6].

1.1. Point of Departure and Objective

To understand the dynamics of organizational change in the capital projects industry, and upon building
on organizational change studies, three major aspects need to be considered [11]:

• Drivers for change, i.e. the factors that characterize the changing environment and drive an
organization to undergo change efforts.
• Response to change, i.e. the resulting decisions and actions an organization implements in
response to the changing environment and change drivers to adapt and achieve the desired
outcome.

• Challenges facing change, i.e. the obstacles that the organization can face and need to overcome
for a successful organizational change implementation.
Thus, the objective of this paper is to identify and define change practices that can play a critical role in
the success of change efforts.

2. Methodology

To achieve the desired objective, this paper adopts a three-step methodology.

2.1. Identifying capital organizations and conducting interviews

A total of 11 semi-structured interviews were conducted with 10 capital project organizations as

described in Table 1. The semi-structured approach offers researchers flexibility when gaining insights
and developing an understanding of industry-related topics especially when dealing with large
industries, different types of organizations, and topics that have not been extensively discussed before
[12]–[15]. The companies chosen were either “owner” or “contractor” as they play a pivotal role in the
value chain of capital projects [10]. According to [16], [17]:

• Owner capital project organizations can be defined as social structures that pursue and manage a
collection of capital projects in support of the company strategy and possess the authority and
independence to make decisions and drive change.
• Contractor capital project organizations can be defined as social structures that manage a collection
of capital projects that align with both the owner's and their own company’s strategies and possess
the autonomy and power to make decisions and enact change.
Interviewing the two big players can provide a holistic understanding of organizational change within the
capital projects industry. Thus, the authors and a Task Force of 15 industry practitioners created a list
of candidate organizations from different sectors to interview. This list included owner and contractor
capital project organizations that were known to have recently undergone an organizational change.
The semi-structured interviews focused on four main aspects: the organization’s background
information, the organization’s current capabilities, the organization’s future direction, and the
investigated change effort in terms of drivers, response, and challenges. It should be noted that the
authors delve into the various aspects of drivers (i.e., the weight of the past, the push of the present,
and the pull of the future), reponse, and challenges (i.e, across strategy, structure, people and culture,
process and technology). The results presented in this paper, however, outline the results from a high
level only, i.e., practices associated with drivers, responses, and challenges.

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https://doi.org/10.3311/CCC2023-040 20-23 June 2023

2.2. Performing content analysis

Content analysis can be defined as a “research technique for making replicable and valid inferences
from texts or other meaningful matter to the contexts of their use” [18]. It is a regularly used technique
in research to interpret raw data collected from interviews and systematically convert it into concise key
results [19], [20]. Content analysis can be summarized in four main stages [19], [21]: (1) condensation
or condensing interview transcripts by reading, evaluating, removing unnecessary information, and
eliminating ambiguities; (2) coding where condensed units that share the same meaning or insights are
assigned to a “code” or a label that is generally made up of one to two words; (3) categorization by
grouping or clustering codes that are “related through content or context”; and (4) theme that
communicates the underlying meaning of the clustered categories. The “Nvivo” software was used to
perform the analysis. A total of 60 themes were generated as a result of the content analysis, where
each theme represents a unique “change practice”. The generation of these themes is illustrated in Fig.
1 which shows how many new change practices were generated after analyzing the content of every
interview transcript (for example: “17 new themes” in “B” means that 11 new change practices were
identified after analyzing Case study B in addition to the 33 change practices that were firstly identified
in Case Study A). Fig. 1 also shows that the study achieved “theoretic data saturation” where the data
no longer generated new themes as more interviews were analyzed [22]. This indicates that the 11 case
studies performed were enough to identify the common change practices and no further case studies
were needed.

Table 1. Description of case studies.

Case Company Interviews and Change Description

Company Size Company Age
Study Type Interviewees
1-1,000 More than 100 4 Interviews New Market (implications of Lithium growth
A Owner
employees years 6 Interviewees opportunities for the company)
More than Digitization (implications of digitization on
More than 10,000 100 2 Interview EPC operations)
B Contractor
employees yearsChevron, 1 Interviewee
more than 10,
More than 10,000 More than 100 1 Interview Execution Model (implications of a new
C Owner
employees years 2 Interviewees capital projects operating model)
More than 10,000 1 Interview Remote Working (implications of remote work
D Owner 25-50 years
employees 1 Interviewee on an airport authority)
More than 10,000 More than 100 1 Interview New Market (implications of new market
E Contractor
employees years 1 Interviewee segment shift on an EPC business)
Execution Model (implications of the adoption
More than 10,000 More than 100 1 Interview
F Owner of integrated project delivery on the
employees years 1 Interviewee
company’s execution model)
Execution Model (implication of public-private
More than 10,000 1 Interview
G1 Owner 50-100 years partnerships on the agency) execution model
employees 2 Interviewees
implications of new support
More than 10,000 1 Interview Execution Model (implications of a new
G2 Owner 50-100 years
employees 2 Interviewees support model on the agency)
5,001-10,000 1 Interview Acquisition (implications of acquisition on a
H Owner 25-50 years
employees 1 Interviewee power generating company)
More than 10,000 More than 100 1 Interview Low Carbon Shift (implications of the market
I Owner
employees years 1 Interviewee shift to low carbon on the company)
More than 10,000 1 Interview Low Carbon Shift (implications of the low
J Owner 25-50 years
employees 1 Interviewee carbon future on EPC operations)

2.3. Presenting Definitions from Literature

After identifying all change practices, each of them was defined using the existing body of knowledge.
This step was critical to ensure consistency in the interpretation of the themes. Academic papers (journal
and conference), books, and blogs were reviewed to extract definitions that explain each theme.

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40 80
33
60

Cumaltivie Themes
56 57 58 59
30 50 60
New Themes

20 33 17 40

10 6 20
1 1 1 0 0 0 0 1
0 0
A B C D E F G1 G2 H I J
Case Studies

Fig. 1. The total number of “new themes” generated after analyzing the transcript of every case study and the cumulative total.

3. Results

The 60 themes identified from the content analysis are shown in Fig. 2. The “frequency” indicates the
total number of codes that related to the theme when analyzing the interview content in regards to
drivers, response, and challenges.
Moreover:
• For drivers for change, Market Shift (19) was the most common change practice, followed by
Resistance to Change (12), Nature of Industry (9), Client/Owner Needs (7), and Market Expansion
(6).

• For response to change, Restructuring (20) and Communication (20) were the most common
change practices, followed by Training (18), Partnerships (17), and Recruitment (16).

• For challenges facing change, Resistance to Change (17) was the most common change practice,
followed by Retaining Workforce (13), Nature of Industry (9), Restructuring (7), and Training (6).

Frequency Change Practices Drivers Response Challenges Frequency Change Practices Drivers Response Challenges
29 Restructuring 2 20 7 7 Regional/unit requirements 2 5
29 Resistance to change 12 17 6 Feedback collection 6
28 Communication 3 20 5 6 Network 4 2
25 Training 1 18 6 5 Competitive advantage 3 2
23 Market shift 19 1 3 5 Digitization 3 2
23 Partnerships 2 17 4 5 Diversity and inclusion 5
19 Nature of industry 9 1 9 5 Effective leadership 5
19 Supportive leadership 2 13 4 5 External/internal benchmarking 5
17 Internal capabilities 4 12 1 5 Gov’t participation/control/support 4 1
17 Organizational design 4 8 5 5 Knowledge management 5
17 Recruitment 16 1 5 Leadership changes 1 4
16 Market expansion 6 9 1 5 Relationships with private and public entities 5
16 Organizational commitment 5 8 3 5 Resource efficiency 5
15 Resources 3 7 5 5 Termination 5
15 Retaining workforce 2 13 5 Workforce 1 1 3
13 Clients/owners needs 7 2 4 4 Accountability 4
13 Integration 11 2 4 Owner/client requirements 1 1 2
13 Portfolio 5 6 2 4 Subs and suppliers adaptability 3 1
13 Remote work 4 6 3 3 Career progression 3
12 Shift in the required skillset 3 5 4 3 Competitive bids 1 2
12 Strategic objective 2 8 2 3 Continuous improvement 2 1
12 Technology 2 10 3 Innovation 3
11 Anticipation 1 10 3 Research and development 2 1
11 Human resource allocation 8 3 3 Scaling 1 1 1
9 Operating model 4 2 3 3 Stage-gate processes 3
9 Project execution 7 2 2 Adaptive changes 2
8 Reporting 7 1 2 Budget 1 1
8 Sustainability 7 1 2 External growth opportunities 2
7 External interactions 1 5 1 2 Investment 2
7 Process re-engineering 4 3 1 Metrics 1

Fig. 2. The resulting change practices (i.e. themes) and their distribution between "Drivers", "Response", and "Challenges".

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Table 1. The definition of coded “change practices” from literature.

Change Practice Definition

Accountability The extent to which one’s actions are evaluated by an external constituency that has relevant
rewards or punishment. A process that activates when personnel reaches a state which the
authoritative entity within the organization wishes to hold them to account for [23], [24].
Adaptive changes Small, incremental changes that organizations and managers create to adapt to business
challenges. These changes aim to improve existing processes rather than altering the organization
as a whole [25].
Anticipation An organization attempts to manage its future activities and shape its surroundings. Not the simple
unfolding of events, but rather anticipatory activities that serve to gauge and guide the
organization’s future actions [26].
Budget A financial plan for a defined period that includes costs and expenses, assets, liabilities, and cash
flows of an organization. A sum of the finances allocated for a particular purpose [27].
Career progression Advancement in an employee’s level of position and/or level of reward within an organization [28].
Clients/owners’ A high-level representation of the clients' or owners’ requirements to solve a problem or achieve an
needs objective [29].
Communication Sending and receiving information through different formats (e.g., oral, written, electronic). Can
occur at different levels (unit, department, enterprise), in different forms (formal, informal), and
within or outside the organization [30].
Competitive Factors that allow an organization to deliver its services better and more cost-effectively than its
advantage rivals. This relates to the financial, strategic, and technological capabilities of the organization [31].
Competitive bids The process through which a group of organizations competes to win a bid from a client to deliver a
project at a particular point in time and for a specified cost [32].
Continuous Ongoing efforts to improve services or processes within an organization [33].
improvement
Digitization The process of connecting different systems with the value chain of an organization. Working with
digital tools and different technologies to improve organizational workflow [34], [35].
Diversity and Achievement of a work environment in which all individuals from a variety of individual values,
inclusion races, and beliefs are treated fairly and respectfully, all have equal access to opportunities and
resources, and all can contribute to the organization’s success [36]
Effective leadership Strong leaders communicate a change initiative message throughout the organization [37], [38].
External growth Leveraging external relations with existing clients to facilitate growth [39].
opportunities
External An organization’s decision to partner and interact with external entities (whether local, international,
interactions or governmental) to achieve its organizational strategy [39].
External/internal A systematic process of measuring an organization’s performance against recognized peers to
benchmarking evaluate current status. Determining best practices that can lead to superior performance when
utilized [40].
Feedback An organization’s collection of feedback about current or future organizational changes [41].
collection
Government Exposure to policy changes and a wide range of government involvement can happen through
participation/ enforced laws or collaboration [42].
control/ support
Human resource The process of assigning and managing resources (people) to support an organization’s strategic
allocation goals [43].
Innovation The search for, the discovery of, development, improvement, adoption, and commercialization of
new processes, new products, and new organizational structures and procedures to achieve short-
and long-term goals, improve productivity, and increase profitability [44], [45].
Integration The extent to which distinct and interdependent organizational components constitute a unified
whole [46].
Internal capabilities Organizational characteristics that enable an organization to conceive, choose, and implement
strategies. Capabilities could include product innovations and responsiveness to market trends and
marketing [47].
Investment The allocation of resources of any kind and purpose that is relevant to the organization [48].

Knowledge Protected and unprotected knowledge creation and transfer through various means, such as face-
management to-face interactions (planned or ad hoc), mentoring, job rotation, and staff development [49], [50].

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Table 2. The definition of coded “change practices” from literature (continued).

Change Practice Definition

Leadership Changes to a leadership position within an organization (at the unit or corporate level) that occur as
changes a result of an organizational restructuring process, financial losses, attrition, or layoffs [51].
Market awareness Entering a new market (i.e., geographic, demographic) to sell existing products or services) [52].
Market shift Significant and permanent changes in market needs and behaviors [53].
Metrics Quantifiable measures are used to track and assess the status of a specific organizational process
or performance [54].
Nature of industry Essential qualities or characteristics that an industry is known for (e.g., fragmentation in the AEC
industry) [55].
Network A social structure is made up of a set of social actors (people or organizations) that interact with
each other [56].
Operating model A model that describes how an organization delivers and achieves value for owners, customers,
and itself [57], [58].
Organizational The act of pledging or promising to fulfill an obligation to the organization. A strong belief in the
commitment organization’s goals and values [59].
Organizational A set of actions taken by an organization to shape the way it operates. Aims to integrate people,
design strategy, structure, and technology [60].
Owner/client A condition or capability that clients or owners require to solve a problem or to achieve an objective
requirements (the need) [61].
Partnerships An ongoing collaborative relationship between two or more legally separated organizations is
based on a commitment to share the costs, risks, and rewards derived from working together [62].
Portfolio A group of projects and services that an organization manages together to coordinate interfaces
and prioritize resources, thereby reducing uncertainty in their execution and helping the
organization achieve its strategic goals [63].
Process re- The analysis and redesign of workflows and processes within an organization, to enhance and
engineering streamline business structures, processes, management systems, and external relationships to
deliver value [61].
Project execution Performing project activities and scopes of work following project plans and specifications [64].
Recruitment A process that provides the organization with a pool of qualified job candidates from which to
choose [65].
Regional/unit A set of requirements is needed in an organization’s unit or by certain regions in which the
requirements organization operates [39].
Relationships with Collaboration between two organizations (private and/or public) to achieve business goals [66].
private and public
entities
Remote work The ability for employees of an organization to perform their jobs from a location other than the
central office, often via communications technology [67].
Reporting The process of compiling and reviewing the information within a specific functional area of an
organization (e.g., operations), where performance is monitored and measured [68].
Research and Investments an organization makes in research and development to gain a technological and
development competitive advantage [69].
Resistance to Opposition by workforce and employees to an organizational change initiative that will change
change and/or disrupt the status quo [70].
Resource Enhancing organizational resource utilization (e.g., people, assists, financials) to minimize waste
efficiency such as idle time [71].
Resources The tangible and intangible entities available to an organization enable it to efficiently and/or
effectively produce a market offering that has value for some market segment or segment [72].
Restructuring There are three types of restructuring: organizational, portfolio, and financial. Divestments,
acquisitions, and/or mergers that involve two or more major businesses, including asset
restructuring and internal management changes. The reconfiguration of an internal administrative
structure is associated with an intentional management change program [44].
Retaining The actions an organization makes to retain workforce. This can include fostering a positive work
workforce atmosphere, providing competitive pay and incentives, and promoting employee engagement [73].
Scaling The growth (scale up) of an organizational initiative/process. Can be horizontal (i.e., growth within
an area of operation or region) or vertical (i.e., within the organization itself) [74].

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https://doi.org/10.3311/CCC2023-040 20-23 June 2023

Table 2. The definition of coded “change practices” from literature (continued).

Change Practice Definition

Shift in the Changes in the workers’ knowledge and skills requirements are driven by changes in the
required skill set environment, technology, and market demand [75].
Stage-gate A systematic process by which a change initiative is divided into distinct stages or phases to drive
processes its transformation from idea to execution [76].
Strategic objective Purpose statements create a vision and set goals with measurable steps to help an organization
achieve a desired outcome [77].
Subs and The ability for subcontractors or suppliers to adjust their structure and processes to successfully
suppliers’ achieve their goals [78].
adaptability
Supportive Leadership encourages various change initiatives at different levels within an organization [51].
leadership
Sustainability Activities taken by an organization, whether voluntary or governed by law, demonstrate its ability
to maintain viable business operations (including financial viability, as appropriate) while not
negatively affecting any social or ecological systems. Meeting the needs of the present without
compromising the ability of future generations to meet their own needs [79].
Technology The total sum of manmade devices or processes that alter, refine, or create the new goods and
services delivered by organizations. Includes electronics, software, documents, new techniques,
or any combination thereof used in the delivery of services [80].
Termination The end of an employee’s work with an organization, whether voluntary or involuntary. Involuntary
termination can be defined as an employer-initiated decision to terminate an individual's
employment at an organization based on a particular cause (e.g., downsizing, performance
problems, or insubordination) [81].
Training An intervention aimed at increasing the knowledge and capacities of individuals to cope better
personally, work more effectively with others, and/or perform their jobs better to help an
organization achieve its goals [82].
Workforce People engaged in or available for work, either in a country or area or in a particular organization
or industry. The workforce can be unionized or nonunionized [83].

4. Conclusions

The main objective of this paper is to identify and define change practices that can play a critical role in
the success of change efforts within the capital projects industry. Case studies were conducted on
contractor capital project organizations and owner capital project organizations via interviews to
investigate what drives their change (i.e. drivers), how they respond to change (i.e. response), and the
obstacles during the change effort (i.e. challenges). Upon performing content analysis on interview
transcripts, a total of 60 change practices were identified, and each practice was then defined from
existing literature. As the aim of this study was solely to identify and define the change practices, the
next studies will quantitatively evaluate the change practices to understand their significance and how
their importance varies across different types of change efforts, as well as organization characteristics
(such as sizes, types, and age). Furthermore, the findings of this study have significant implications for
industry practitioners and researchers in the field of organizational change. For practitioners, the change
practices identified in the study can serve as a valuable resource in planning and executing change
efforts in their organizations as they can adapt and apply the practices within their unique organizational
contexts. Similarly, researchers can use the findings of the study as a foundation for investigating
organizational change in other industries and contexts and develop new theories and models of change
that can be applied across a range of organizational contexts.
Acknowledgments
The authors gratefully acknowledge the valuable support of the Construction Industry Institute (CII) for funding the
data collection of this research project. The authors would also like to thank all the interviewees, without whom
this research would not be possible. Any opinions, findings, conclusions and recommendations expressed by the
authors in this paper do not necessarily reflect the views of the University of Kentucky or the Construction Industry
Institute.

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