Changes in the project team are inevitable and can have positive and negative consequences for implementing the project. Introducing a new team member or the departure of an experienced employee can trigger several invisible costs that are often more difficult to estimate and manage than direct financial expenses. These invisible costs include loss of knowledge, loss of efficiency, and disruption of team dynamics.

In this article, I will discuss the intangible costs associated with changes in the project team and offer practical ways to minimize their impact on the project. We encourage you to read the article, which will teach you how to effectively manage a project team during changes and protect the project from adverse effects.

Often, changes in the project team are associated only with financial costs, but they are only the tip of the iceberg. The real challenges lie in the non-material losses that accompany every change.

Losing key employees requires incurring expenses related to recruiting and training new team members and can cause significant gaps in knowledge and experience that are difficult to compensate for.

Loss of efficiency, disruption of team dynamics, and loss of advanced skills are costs that are not always easy to measure but can significantly impact a project. Effective management of these intangible losses requires careful planning and implementation of appropriate strategies that minimize their adverse effects on the entire team and the project being implemented.

Loss of knowledge and experience in the project team

Changes in the project team can lead to invisible costs that are often difficult to quantify. One of the most important and severe is the loss of knowledge and experience.

What is this hidden cost?

Loss of knowledge and experience occurs when a key team member with unique skills, expertise, and experience gained during the project leaves the team. This can be due to various factors, such as promotions, changing jobs, or other personal decisions. This knowledge, often undocumented, is irretrievably lost, leading to an information gap in the team.

Implications for the project

The loss of a key employee can lead to some negative consequences for the project:

• Loss of efficiency: New team members must spend time learning and onboarding, reducing overall work efficiency.
• Disruption of team dynamics: Each team has its unique dynamics and work rhythms, which the departure of an experienced member can disrupt.
• Knowledge gaps: Specialist knowledge and skills crucial to the project implementation may be lost, hindering further progress.
• Delays: The need to find and onboard a new employee can lead to delays in project completion.

Example of loss of knowledge

Imagine a team working on an advanced IT project in which the lead programmer plays a key role. This programmer has a unique knowledge of the system architecture, knowing every detail and nuance of the code. When this developer suddenly receives an offer he can’t refuse from another company and leaves, the team is left without the person who was the technical pillar of the project. A new developer, even if very experienced, needs time to familiarize themselves with the existing system, which leads to delays and potential problems related to the loss of knowledge continuity.

Loss of knowledge and experience is a hidden cost that can have far-reaching consequences for any project. That’s why it’s so essential for organizations to invest in knowledge management strategies and documenting processes and key information to minimize the risk associated with key employees leaving.

Ways to counteract delays caused by loss of knowledge and experience in the project team

Documenting project knowledge and processes

Documenting knowledge is a key element in preventing delays in project implementation. It involves creating detailed notes on all relevant information, procedures, process steps, and decisions made within the project. These documents should be updated regularly and easily accessible to all team members.

Less obviously, however, similar documentation should be maintained for the technical aspects of the project. Just like in the “business” part of the documentation, also in the “technical” part, there should be records of the technology in which the project is done, what the technological decisions are, and what prompted the development team to make such decisions, how the software is developed, how it is tested and how it is released for production. In addition, the project should include a standard for describing tasks and receiving them.

How do we document knowledge?

There are many ways to keep documentation in a project, mainly by documenting knowledge. However, if the company does not have such a practice, you can always propose to start such a process in the project team and think together about how it can be implemented.

Below are some suggestions that can serve as inspiration:

• Creating publicly available manuals and operating manuals describing standard procedures.
• Recording meetings and key decisions in the form of notes and minutes and having a record of business and technical decisions;
• Introduction of document management systems that allow you to find and update information easily. It is worth preparing a manual for such a system so that newly created documents are described and cataloged according to a previously prepared and reproducible process;
• Training employees in the creation and use of documentation.

Implementation of knowledge management systems

In today’s world, competitive advantage in the market is created through innovation, but it is maintained long-term through unique knowledge.

Knowledge management systems help collect, organize, and share knowledge. They allow you to centralize information and provide easy access for all team members.

Currently, such knowledge systems help avoid repeating the same design mistakes multiple times and, thanks to integration with AI-based tools, allow employees to have constant access to the organization’s “know-how.”

How do we implement knowledge management systems?

The most important thing is to choose the right knowledge management software, which will be tailored to the team’s needs and allow you to use AI to search for information.

The basis seems to be using AI to use the knowledge accumulated in the organization. Just ask yourself: How often do I read the procedures or knowledge bases available in the organization?

Most people will answer that once we start our adventure in the organization, and then not at all. It’s easier to ask someone who knows. On the other hand, what if this “someone” does not remember or thinks he remembers?

This is where AI comes in, as “someone” who can’t remember badly because it always draws data from the current knowledge base. Of course, it happens that AI “hallucinates,” but with a bit of criticism and training project team members on how to use AI, I’m sure it will be much more effective than asking the “company omnibus” about every single thing.

After choosing and implementing a knowledge management system, one more element remains: constantly updating the knowledge base. Not all companies have such knowledge bases, and when they do, they are often not updated because “who uses them?” As I wrote earlier, the “traffic” in the knowledge base is mainly new employees, but thanks to AI, it can be much greater than ever before.

Mentoring and sharing knowledge in the team

Another way to share knowledge is through mentoring, a process in which more experienced team members pass on their knowledge and skills to younger colleagues. Knowledge sharing enables faster onboarding of new employees and ensures continuity of information within the team.

Perhaps some people in your project team do not want to share this knowledge with others, and you should address this problem. If one person in a project gathers too much knowledge about the technical aspects, there will come a day when you will have to pay a hidden price for it.

Such an employee does not necessarily have to leave the job; it is enough that he or she gets sick or has another indisposition, and the problems in the project are ready. Other project team members will either not know what to do next or will have to spend a lot of time figuring out the technical issues. Either way, the project will be delayed.

Maintaining such a situation in the project also has a fixed cost. Usually, when one person has too much technical knowledge, other project team members leave the key decisions about the implemented solutions to that person. As a result, such a person must make every decision, generating a constant delay in the project. The greater the delay, the more people there are in the project team and the more questions they will have for this one person.

How do you mentor and share knowledge?

The matter becomes more complicated the more rooted we have a one-man leader in the project. In such a situation, you have to act very carefully not to provoke such a leader to leave but to encourage him to share knowledge.

Making such a person a mentor can be a good idea. On the one hand, he will feel appreciated as the one with the most technical knowledge; on the other hand, we will allow him to share this knowledge with other project team members, which we care about.

As part of the mentoring program, it is worth organizing regular meetings between the mentor and the mentees. Such meetings should have a structured scheme and be part of a particular cycle so that knowledge transfer takes place thoughtfully and structured. For this purpose, it is worth helping the mentor prepare such a program.

The atmosphere that will prevail during meetings with the mentor is equally important. A lot depends on the mentor in this matter. Still, suppose the mentor helps prepare materials and supports the development of knowledge transfer skills before starting mentoring. In that case, there is a good chance that such meetings will be fruitful for each participant and the organization.

Exit interviews with departing employees

Interviews with employees applying for a position in a company or project are a practice known as the world. Probably no one can imagine that the recruitment process could take place without it. But what if an employee leaves the company?

That’s right. Then we should have Exit interviews. These are conversations with employees leaving the organization. The goal is to understand their reasons for leaving and gain information about knowledge and experiences that may be useful to the team after they leave.

How do you conduct exit interviews?

Conducting such an interview can be far more demanding than conducting a recruitment interview. Finally, what motivation would an employee have for such a conversation if he or she leaves the organization?

Theoretically, none, but in practice, we have been working with this person for some time, and thanks to this, we should get to know this person well and know what motivates them. This knowledge will prove essential during this conversation. Yes, I agree that a Project Manager is more than just a person responsible for preparing a schedule or project documentation. Currently, a project manager is also responsible for building good relationships in the project team and motivating project team members.

But let’s get back to how to prepare for exit interviews.

In the beginning, it is worth preparing a set of questions, thanks to which we will collect and write down information about what the person has been working on at the moment, what is the status of this work, where are the results of their work stored so far, how they are described, and what are the relationships to other elements of the system. Who else from the project team worked on this functionality? Does anyone know the work status, the technology stack used, and what needs to be done next?

Before such a conversation, it is worth talking to the project team itself and asking them the same questions to find out what the team knows about what the project team member leaving the organization has been working on.

The conversation should be conducted in an atmosphere of trust and openness. This will give the employee space to speak freely and show them that we want both parties to be satisfied at the end of the cooperation.

Counteracting delays caused by loss of knowledge and experience requires a systematic approach and the entire team’s involvement. Investing in knowledge documentation, knowledge management systems, mentoring, and exit interviews can significantly minimize the risk associated with key employee departures and ensure the continuity of project implementation.

Decrease in the efficiency of the project team’s work

In dynamic project environments, personnel changes can significantly impact the effectiveness of the team’s work. Both the departure of a team member and the arrival of a new person bring challenges for the project team, which can lead to decreased efficiency.

Due to the departure of a team member

Let’s start with the departure of a key member of the project team, which usually has several negative consequences if it was a person with whom another person worked well, who had the knowledge needed to implement the project, and who made a significant contribution to the progress of the work.

One of the project team’s first reactions will probably be uncertainty and fear about the team’s stability and the project’s future. Such thinking almost automatically lowers team members’ morale and commitment.

To minimize the negative impact of one of the employees leaving on the project team, start with transparent communication. Explain what happened, the basis for the employee’s or company’s decision, and the plans to deal with the problem.

Ask the project team members if they have any ideas on how to deal with this situation. This will show your trust in them and help redirect your attention to finding a solution to the problem, which is more constructive and gives you a sense of agency.

Also, don’t forget to communicate on an ongoing basis about the progress of solving the problem, preferably in a specific cycle, so that the project team is convinced that they are not left alone with the problem.

Another reason for reducing the project team’s effectiveness may be the increased workload. The deadlines for handing over individual functionalities in the project probably remained unchanged, but the number of people involved in the work decreased.

In this case, the Project Manager and the Development Team Leader play a key role. The development team leader should reassess the valuation of individual tasks with the development team, reorganize the team’s work, and identify new risks in the project if they have arisen in connection with the employee’s departure. Perhaps some of the works will take longer, or maybe some of the works will not be able to be carried out at all due to the lack of technical knowledge required to carry them out.

On the other hand, the Project Manager, after receiving information from the Development Team Leader about the impact of the departure of a project team member on the deadline for the completion of individual tasks and about the risks that have arisen in the project, should immediately inform the project stakeholders about the resulting difficulties, plans to remove them and their impact on the progress of work and the estimated dates of delivery of individual functionalities to recipients.

Sometimes, when a team member leaves a project, they lose knowledge. In the previous paragraphs, I have already written about how to deal with this and how to counteract such a situation; here, I can only encourage you to create and use a knowledge base in your organization.

Arrival of a new team member

The arrival of a new person in the team can also affect its dynamics, both positively and negatively. We are never sure of that.

A sure way to minimize the negative impact of a new person on the project team is to include the project team in the recruitment process at later stages. The matter is not very complicated; it is enough to organize a meeting of the potential candidate with the project team to express their opinion about the person with whom they will work on the project.

This is essential in building a sense of agency in the team and showing trust in the project team members. However, the most important thing is to minimize the risk that the new person will not be welcomed by the project team, affecting the project deadline.

Suppose the project team members have given the new team member an upbeat assessment. Is this the end of the challenges?

Certainly not. Further challenges will arise on a new team member’s first work day. First, a new team member will undoubtedly change the work dynamics, and all project team members must get used to it. When working with people for a long time, we get used to how they work, their strengths, and where they need help. A new person in the project team means new strengths and places to pay attention to. The team needs time to start working harmoniously.

Also, a new team member needs time to get to know the organization’s work culture and the team they have joined. The latest person may have habits from the previous workplace that do not necessarily fit into the current project team. It is good to familiarize the new person with the adopted practices immediately. Still, an informal meeting or meeting after work with project team members can help build team bonds and understand each other, which should translate into better cooperation within the team.

Finally, there are concerns of project team members about their role and position in the project team. Until now, this role and position have been clear. The arrival of a new person in the project team changes this situation and causes the team members to wonder what role the new person will have and how it will affect their work. Here, an important role is played by the development team leader, whose role is to communicate to the team what the role of the new team member is, what their responsibility is, and what position they occupy in the team.

If the roles and positions of other project team members change, the leader must also communicate this in advance so as not to cause unnecessary conflicts in the team later on.

It is essential to monitor the situation in the project team later because, in addition to the fact that roles and tasks will be assigned at the beginning, it may turn out that the new person has a natural tendency to take on a specific role in the group. If this does not align with the project team’s needs, the team leader should react to such situations immediately before they escalate to conflict.

Understanding the potential sources of inefficiencies is crucial for change management in a project team. Transparent communication, support, and an open attitude toward change can help minimize the adverse effects and ensure the continuity of the team’s work.

Disrupting team dynamics.

Changes in the team’s work dynamics can have various sources, not necessarily related to the departure or appearance of a new project team member. Everyday project situations that affect the dynamics of the team’s work are:

• Change project priorities: When project priorities change, team members can feel confused or frustrated, significantly if the new direction deviates from the original assumptions.
• Change of technology or tools: The introduction of new technologies, software, or work tools may require additional training and adaptation, affecting the pace and quality of work.
• Changing work methodologies: Moving to a new project management methodology, such as Agile or Scrum, may require changing your team’s work habits and habits.
• Change in goals and expectations: Modifying business goals or stakeholder expectations can put pressure on the team, leading to stress and reduced efficiency.

Example of a situation where team dynamics change

Let’s assume that the project team has been working on implementing a new functionality for several months. Suddenly, the project steering committee decided that the functionality the team was working on was no longer needed, but the key client ordered another functionality with a short delivery date.

Such a situation caused the work in the project team to stop but also caused the team to recognize the needs and requirements for the new functionality. At that time, the team did not do any programming work. On top of that, this sudden change caused frustration in the team, which could not deliver the solution they had been working on for several months. This decision caused a decrease in motivation in the development team, which will affect the pace of work and the deadlines for delivering new solutions for some time.

Unfortunately, this decrease in the efficiency of development teams after sudden changes is often not considered. Clients are given deadlines for delivering new functionalities based on the team’s current pace, but this pace is different. As a result, delays occur, and the project’s atmosphere becomes tense, making it difficult for everyone involved to work.

How can the impact of sudden changes on the project team’s effectiveness be minimized?

It is worth starting with transparent communication. Clear communication is always good for project team morale. It allows them to understand the reasons for the decisions made and assures them that they know what is happening in the project and its environment.

If the change concerns software development technology or the software supporting software development is changed, it is worth stopping for a moment and giving the members of the development team time to familiarize themselves with the new tools or technology, and above all, let them fill in the missing knowledge needed to use new solutions efficiently.

It is worth considering the involvement of project team members in making design decisions. This is not always possible, but if nothing stands in the way, it is worth adding a delegate of the development team to the group of decision-makers in the project. This will give the team a sense of influence, and they can perceive the changes in the project differently.

If it is possible to make gradual changes to the project, it is worth doing it this way. Rapid changes cause resistance in people just because they are violent. Most of us do not tolerate rapid changes well and treat them as a threat. There is often nothing personal about it; it is just that evolutionarily, our minds perceive sudden changes as a threat, which used to increase the chances of survival and is now often an unfounded fear. However, instead of fighting the nature of the human mind, it is easier to implement changes gradually whenever possible.

We cannot monitor all the variables affecting the project team’s effectiveness, and future events usually remain covered until they occur. For this reason, it is a good practice to monitor the mood of the project team regularly. I have already mentioned that a project manager is more than just a person who deals with planning and settling tasks. Currently, the project manager’s primary role is to ensure a good atmosphere in the project and constantly monitor the mood of the project team.

Summary

Design changes can significantly affect the dynamics of the team’s work. It is crucial to manage these changes transparently and supportively. Team engagement, flexibility, and monitoring are essential to minimize negative impacts and ensure effective project delivery. Following change management best practices will help you build a team ready for any challenge and can work harmoniously regardless of the circumstances.