Change Management in the Project Lifecycle: Design Phase

The Design Phase is where things really start to get fun.  As the functional teams work with end users to determine how to translate the requirements gathered during the Analyze Phase into useable system functionality, it's time for the Change Management team to ramp up.  If you've been a team of one up until now, Design Phase is an excellent time to bring on another team member.

Practical Design Phase Activities

Once again, the activities in this phase can be broken down by which team you partner with.  This time around, we'll add another team: Human Resources.

Activities Conducted by Change Management

Executive Change Readiness Assessment (ECRA):  The ECRA is designed for top-level Executives.  This will typically include your Sponsors, the Directors and/or Vice Presidents of impacted business units, and, depending on the organization, C-level Executives.  The focus of this assessment isn't whether the Executives are ready to change, but whether they are ready to direct and support the change.  You should plan on conducting this assessment multiple times throughout the project, depending on the project's length.  Use the first assessment during the Design Phase as a baseline against which to measure future iterations.

Change Readiness Assessment (CRA):  The CRA is designed for the future system end users.  Unlike the ECRA, the CRA does focus on whether end users are ready to adopt the change.  The assessment asks end users whether they feel they are receiving enough communications, adequate training, and sufficient management support.  Once again, plan on conducting the assessment multiple times during the project.  And remember that this first one is a baseline...your results will not be good, and that is to be expected.  You haven't rolled out any training, yet.  How can they give it high marks?

Super User/Change Agent Network:  There are many different names for this type of network, and many different uses.  Essentially, it is a group of future end users who are not full-time members of the project, but who are asked to participate in project activities.  Their role may be to act as Super Users who know the system better than your average end user and are expected to eventually serve as trainers and front-line support.  They may simply be Change Agents who are asked to vocally support the change among their peers and help others embrace the new way of doing things.  Or they may be some combination of the two.  Whatever their role, they are an integral part of helping the change be adopted throughout the organization, and should be selected with care.  Once you've created the network, manage them with care, show them lots of love, and you will see great returns on your investment.

Communications:  There still isn't a lot to communicate to the general end user population at this point, but you should be actively communicating with your Change Agent Network and Sponsors.

Training: The functional teams will likely be holding a large number of design workshops during this phase.  If at all possible, you should have your training developers attend as many of these workshops as possible.  This will help them develop a solid understanding of the system design that will help them build the training in future phases.

Partnering with the Functional Teams: If you have more than one person on the Change Management team, I recommend assigning each person to one or more functional teams.  This does two things.  First, this provides one point of contact for each functional team.  This way, they don't need to try to guess who on the Change team to contact when they have questions.  It also reduces the number of e-mails and phone calls the Change lead has to deal with each day.  Second, it helps ensure at least one person on the Change team will have a deep understanding of each functional area, which will come in very handy for developing communications and training.

Design Feedback Workshops: If the functional teams haven't planned these on their own, recommend they be added to the plan.  If they have planned these, volunteer to help.  Design Feedback Workshops are conducted with the end users who provided input into the system design.  Once the functional teams have incorporated these design suggestions into the system, hold a workshop where you show the completed design to the end users.  This gives them an opportunity to tell the team if the design meets their expectations.  You may also find that once they see the design, it helps them better understand the system and helps them identify new or better refined design points.


Partnering with Project Management
Phase Kick-off/Lessons Learned: In the Analyze Phase, I talked about the need for a project kick-off.  As the project continues, it's important to conduct phase kick-offs, as well.  These help ensure that everyone on the project team understands the timeline, objectives, and activities for the upcoming phase.  The kick-off is also a good time to conduct a lessons learned session.  For more details on connecting an effective lessons learned session, read this earlier post.

Sponsorship:  How involved Project Management wants to be in Sponsorship is something you'll need to work out on each project.  I have typically found, however, that working with the Sponsors tends to be a joint effort.  If your Sponsors haven't been overly involved up to this point, now is the time to help them become active.  Work with the Sponsors to determine how much direction they want/need, their expectations of their role as a Sponsor, and the project's expectations of their role.  It is important for them to understand that their commitment to providing active, visible sponsorship directly impacts the success of the project.

Partnering with Human Resources: Throughout the project, there will be activities that are best completed in partnership with Human Resources (HR).  These are activities that impact people's job descriptions, compensation, or team structures.  If you are ever in doubt, it's a wise idea to find out who is the project's HR representative and have a quick chat with them.

Rewards and Recognition:  If there are people on the project team who are not consultants, chances are that being on the project is requiring them to learn new skills, work longer hours, and take on additional responsibilities.  These are things that should be recognized and rewarded.  Work with HR to determine how the project team can do this within the appropriate guidelines of the organization.  I've seen programs as simple as a Thank You Box, and as complex as a new bonus structure.  Whichever path you take, make sure that you are rewarding behaviors you want to perpetuate, and providing rewards that are meaningful to the recipients and in-line with company policy.


The Design Phase is a busy one, but it's also very satisfying.  Don't forget to evaluate how successful the Change program is in achieving its goals, and don't be afraid to tweak the plan as you go to improve your results.

Let me know:  How many people have you typically had on the Change Management team during the Design Phase?

Change Management in the Project Lifecycle: Analyze Phase

You've made your plan, now it's time to put it in motion.  During this phase, your activities will fall into three different categories:

1. Activities you do purely as a Change Management team
2. Activities you do in partnership with the Project Management team
3. Activities you do in partnership with the Functional teams

There may be some debate about which team actually owns each of these activities.  If so, I suggest you hash it out and develop a RACI.  This is a chart that clearly identifies for each activity who is Responsible, Accountable, Consulted, and Informed.  It will save you a lot of headache throughout the project.

Practical Activities in the Analyze Phase

• Change Management Activities: The Change Management Activities you complete in this phase set the stage for future phases.
• Project Branding - Branding your project makes it instantly recognizable to people in your organization.  This can include a catchy project name, logo, and tag line.  I've even been on projects that have colors, mascots, and songs.  Be as creative as you want...just make sure it fits with your company's culture.
• Communications Analysis - The Communications Analysis looks at what messages you need to send, who should send them, who should receive them, and what vehicles are currently available.  It also takes into account message timing, frequency, and high-level content.  Once you have this information, you can determine where there are gaps and work to fill them.
• Initial Training Analysis  - Training typically runs half a phase behind the project, which means that you won't begin your initial training analysis until the Analyze Phase is half-way over.  At this point you are simply determining basic facts, such as the number of people to be trained, their geographic location, and a rough feel for the amount and type of training that will be needed.
• Partner with Project Management: These activities address the internal workings of the project team. I have seen them completed by the Project Management team on some projects and by the Change Management team on others.  I have found, however, that you get the best results when the two teams collaborate.
• Project Governance and Escalation - Who has the right to make project decisions?  Who will weigh in on these decisions?  If the people assigned to make the decision are unwilling or unable to decide, to whom is the decision escalated?  Who is able to remove roadblocks and help the team overcome obstacles?  These are the types of questions that are answered as part of developing the Project Governance and Escalation plan.
• Project Standards - Most projects are made up of people from different departments, experience levels, backgrounds, and even companies.  To ensure that they project a united and professional image to the organization, you should set project standards.  These can include PowerPoint and Word templates, guidelines on how to run meetings, and processes for getting external communications approved.
• Project Kick-off - It is never safe to assume that everyone on the project is on the same page.  Use the project kick-off to acquaint everyone with the project's goals, team structure, timeline, near-term activities, and anything else for which you want them to have a shared understanding.
• Partner with the Functional Teams: The functional teams are the "business" teams.  They are the ones gathering business requirements, developing business processes, and generally working to ensure the new product meets the business' needs.  
• Requirements Gathering - Gathering business requirements often involves creating presentations and conducting workshops.  The functional teams are often happy to have the Change team lend a hand polishing presentations and facilitating workshops.  Facilitating the workshops, especially, frees up the functional team's resources to focus on what the end users are trying to explain about their business needs.
• External Communications - Working in partnership with the functional teams when they need to send communications outside of the project team helps to ensure consistent messages are being sent to the organization.  It also allows the Change team to understand which audiences have received which messages, reducing the likelihood of redundant communications.

Let me know: How have you effectively collaborated with the other project teams during the Analyze Phase?

Change Management in the Project Lifecycle: Plan Phase

On to the Plan Phase.  This phase can be slightly frustrating for Change Managers, because so many of the activities we do are dependent on the activities conducted by the other project teams.  It's very difficult to plan when you'll conduct training if you don't know when the system will be built and stable.  Because of this, I typically recommend that Change Managers add their team's activities to the plan after the technical and functional teams.

There's also an ongoing debate as to how much of the Change Management plan should be included in the overall work plan.  I've met a number of Project Managers who don't want to see every single planned communication cluttering up their work plan.  

Here's my recommendation.  It's good to have as much of the Change plan in the overall project plan as possible, so that the integration between the teams is clearly visible.  The functional and technical teams should understand how changes and delays in their activities impact Change Management activities.  If that's not possible, however, the project work plan should at a minimum include Change Management milestones and the activities that are most impacted by other teams, such as training development.

If the Project Manager doesn't want any Change activities in the overall project work plan, you have bigger problems on your hands, and I suggest you set up a meeting immediately to discuss.

But enough of the introduction.  It's time to discuss:

Practical Steps to Develop a Change Management Plan

Training:  Training is perhaps the most critical Change activity to plan well.  You may not know exactly how many training courses you're going to develop or how many people you're going to train, but here are a few guidelines to get you started.  (A quick disclaimer that will apply to the rest of the post: Work plans are living documents.  You will constantly need to go back to update and refine your plan as you get new information. )

• Build some time for training into the Analyze, Design, and Build phases.  Training developers who spend some time in business requirement meetings, system demonstrations, and testing will be better prepared to develop training...and will reduce the amount of time required from Business Analysts.
• The industry standard for the time required to develop training is this: It takes 40 hours of development time to create 1 hour of classroom training.  It takes 200 hours of development time to create 1 hour of fully interactive computer-based training.  Everything else falls somewhere in between.
• The level of expertise of the people developing training impacts the amount of time they require for development.  Take this into consideration.
• During training development, Business Analysts should expect to devote 10% of their time to working with the training team.  This is extremely important and often overlooked.
• For training delivery, assume that for the first time someone delivers a course, they will need 1 hour of preparation time for every 1 hour of training they are delivering.
• During training delivery, the technical team needs to devote a portion of their time to addressing technical issues and performing activities such as training instance refreshes.
• Training doesn't end at Go-live.  There will be people who need to be trained in the 1 - 4 weeks after the system is implemented.  Plan to have one or two team members stay around to deliver this training.

Communications:  Although you might not know exactly what communications you need to send each week throughout the project, assume that you will be busiest starting about a month before training delivery and lasting until about a week after Go-live.  Also consider how many people will be impacted by the project and how geographically diverse they are.  Finally, talk to your leadership about their expectations for communications.  I had one client who wanted marching bands and giveaways.  I had another client who thought it was excessive when I wanted to send out training reminders.

Change Management:  Change Management is more than just training and communications.  As appropriate for your project, build into your plan activities such as Super User Networks, Executive Sponsorship activities, Stakeholder Management tasks, Change Readiness Assessments, and Change Impact Assessments.

Project Management:  Now is the time to have a frank conversation with the Project Manager about where you want to draw the line (or not) between Change Management and Project Management activities.  This is an ongoing debate that I won't address here.  Suffice it to say that you should determine what will work for your project and plan accordingly.  Discuss who will conduct activities such as project and phase kick-offs, lessons learned sessions, and presentation development and delivery for Sponsors.  These activities take a lot of time, and it's important to know who will be responsible for them.

Administrative Tasks:  Finally, if you've planned all of these activities and they will require every second of every day for every Change Management team member, you need to stop and re-evaluate.  First, remember that everyone needs a bathroom break at some point.  Second, keep in mind that unexpected activities will arise and you need the flexibility to absorb those that fall to Change Management.  Third, you need to build in time for administrative tasks.  They may not be high on your list of fun things to do, but you still need to take the time to update your work plan, review and approve work done by other people, and attend meetings.  If you forget to plan in time for these activities, you will quickly find yourself falling behind or working a lot of overtime.  I've heard people say that a good rule of thumb is to expect administrative tasks to consume 10% of your work hours.  Unfortunately, I find it tends to be more.

Contingency:  Most projects build some amount of contingency into their work plans.  It never hurts to build a little into your team's plan, as well.

A final note:  One of my favorite phrases comes from the world of SCUBA...Plan your dive.  Dive your plan.  Finding the right balance between this philosophy and being flexible enough to roll with the punches that are part of any project is the true test of anyone responsible for managing part of a project plan.

Let me know:  How much time do you devote to administrative tasks each week?

Change Management in the Project Lifecycle: Pre-project Phase

In my last post, I provided an overview of the eight basic phases that make up the project lifecycle.  Now it's time to dive in and look at how Change Management fits into each of these phases.  Please note that I won't be able to include every single Change activity that could happen in a phase.  That would turn this into a text book rather than a blog post.  I will cover the major activities, though, and if you include them in your plan you will be off to a great start.

Let's get detailed.

Practical Change Management Activities in the Pre-Project Phase

Unfortunately, I often see Change Management - and Change Managers - left out of the Pre-project phase.  Because many people think of Change Management as just communications and training, they assume that they don't need to worry about it until later in the project.  This is a great way to doom the Change program before it even begins.

If you're going to be the Change Manager, now is the time to speak up and jump into the fray.  You need to ensure that the following items are given serious consideration by your organization's leadership...and included in the overall scope of the project:

• If you're partnering with a consulting firm, at least one consultant should be a Change Manager.
• Just because they agree to have a Change Management consultant doesn't mean they can remove you from the project.  At least one person from the organization needs to be a full-time Change Manager, as well.
• Change Management needs its own budget.  Activities involved in communications, training, Super User Networks, etc. can add up.  While there are lots of ways to do it on the cheap, for the most part, you get what you pay for.  If leadership hesitates, show them this fact from IBM's Making Change Work study: "Our study found that project success rates were 23% higher when the amount invested in change was greater than 11% of the project budget."
• If it's a technology project, training should be included in the technology budget.  Training development uses a lot of server space, and you need to consider if your company has a Learning Management System (LMS) available to host any computer-based training courses.
• Make sure that the number of Change Management team members is commensurate with the amount of Change Management work.  Very few change programs can be fully executed by one person.

If you're brought onto a project in a later phase and discover that these items weren't taken into consideration, never fear.  There are ways to address this, which I'll cover in a future post.

Let me know: In your experience, is Change Management adequately addressed in the Pre-project phase?

Change Management in the Project Lifecycle: Project Phase Overview

Forgive me, readers, for my extended absence.  I'm going to start the new year by getting extremely practical.  The next series of posts will focus on the nitty-gritty of preforming fundamental Change Management activities.  If you've been assigned to run a Change Management program but don't know where to start, these next few posts are for you.

Let's start by talking about how Change Management fits in with the overall project lifecycle (I'm assuming here that you are working on a project of some kind - technical, business process, organizational re-design etc.  I'll note that Change Management doesn't always happen in the context of a project, but for the record, I consider change for the sake of change to be a losing battle.)

Most projects have eight basic phases: Pre-project, Plan, Analyze, Design, Build, Test, Implement, and Post-project.  Different companies will use different names for the phases, and you often won't see Pre-project, Plan, or Post-project on the official project work plan, but in general, these are pretty standard.

For anyone who hasn't worked on a project before, I'll begin by providing:

A Practical Understanding of Project Phases

Pre-project: The Pre-project phase typically doesn't appear on the project work plan because, as its name suggests, it occurs before the project begins.  The team is typically very small at this phase.  They are focused on building the business case for the project, which explains the business reasons for doing the project (why do we need to do the project, what are the benefits of doing it, what are the risks of not doing it, etc.), and is often used to get approval from senior leadership to move forward with the project.  For technical projects, this phase also consists of selecting a technology and vendor.  Many companies also choose to partner with a consulting firm, which is chosen during this phase.  Usually, by the end of this phase you will have permission to do the project, vendors and partners selected, a budget, and a general time frame for the project.

Plan: As you may have guessed, during the Plan phase you create a project plan (also commonly referred to as a work plan).  This plan lays out what activities need to happen, when they need to occur, how long each activity will take, and how many people are needed to compete the activities.  Developing this plan allows you to determine how many people you will need on the team at any given time, as well as the skill sets you will need over the course of the project.  This is also the time when the general project time frame you determined during the Pre-project phase becomes more precise.  For technology projects, you will also be able to use the plan to figure out when you will need to procure physical assets, such as system licenses and extra servers.

Analyze: During the Analyze phase you will dive into requirements gathering.  This is your chance to determine exactly what your organization needs from the project.  This phase helps to ensure that the finished product meets your technology, process, and cultural needs.  Once you've gathered the requirements, this is also the time when you will do a gap analysis.  How well does your project as currently planned meet your requirements?  Any gaps will need to be addressed as part of the project, which means you will need to go back and re-assess your project plan, including budget, timing, and people resources.

Design: Now that you know your requirements, it's time to design your project to meet those needs.  For technology projects, this means designing the system.  For an organizational redesign, this means designing the new organization.  A business process project will design new processes.  (A quick note - I talk about different types of projects, but it's very common for one project to contain aspects of each of these project types.  In fact, it's best if your project has at least two of these types.)  The Design phase is often called the Blueprint phase because by the end you will have the blueprint of the project you need to create.

Build:  With your design in place, you're ready to begin the Build phase.  This is the phase where you make your design a reality.

Test:  Once you've built your project, whether it's a computer system, new business processes, or an improved organizational design, it's important to test it before rolling it out to the entire organization.  There are a number of steps involved in the Test phase, but to make it simple, by the end of this phase you should feel confident that the product you built works the way you designed it and meets the requirements you gathered.

Implement:  This is the exciting phase.  During the Implement phase you roll your project out to the organization, letting everyone see/use/participate in/experience the finished product.  By the end of this phase, most of the consultants will leave and many of the people from the organization will go back to their day-to-day jobs.  And, if you did your job well, you'll be receiving positive feedback about the product you created.

Post-project:  This phase often isn't on the project plan mostly because it often gets forgotten.  Just because the project has been implemented doesn't mean the work is done.  There are short-term activities, such as officially closing down the project, closing the budget, and immediate end-user support.  You may also have long-term activities, such as follow-up analysis of how successfully the new product is being used by the organization and continuous improvement cycles.

Now that you understand the project lifecycle, the next question is, "How does Change Management fit into each of these phases?"  In upcoming posts I'll address this question, explaining the Change Management activities typically completed in each project phase.

Let me know: 

The Negative Impact of Ghosting Hours

Forgive me, Readers, I'm about to get on my soapbox.  Over the years, dozens of new consultants have listened to my speech about the dangers of ghosting hours.  Today, I'll share the speech one more time.

First, let me describe the phrase "ghosting hours."  Unlike the legal profession, where new associates are encouraged to work as many hours as possible and bill them all to a client, in the consulting profession, consultants are often encouraged to work as many hours as necessary, then only record 40 hours at the end of the week.  The hours that were worked but not recorded are "ghosted."

Even on projects where ghosting is never explicitly discussed (and most managers know better than to directly tell their team to ghost), it is implied.  Too many weeks with too many hours recorded generates frowning leaders and hard discussions.  The expectation, however, is that the work still get done...usually without any additional resources.

The benefits of ghosting are obvious.  Keeping (recorded) hours under control helps projects make their margins.  It makes the client happy.  It makes the consulting organization believe that the project is running smoothly - on time and on budget.

These are only short-term benefits, though.  In the long-term, ghosting has a negative impact on the organization, the team, and the individual.  And I firmly believe that the long-term negative impacts far outweigh any short-term benefits.

Five Dangers of Ghosting Hours

• Estimating - Many consulting firms have an estimating model they use to determine how long a project should take, how many resources are required to do the work, and how much they should charge the client.  These estimating models are typically based on extensive review of past projects.  Even firms that don't have a set estimating model will look back on their projects and use them as a guideline for bidding on new projects.  Despite these estimating models, projects consistently run over budget and miss deadline after deadline.  Teams are constantly asking for more resources.  It has gotten to the point where many consultants assume from the start that every project they're on will be extended.  There are a hundred reasons why this might happen, but one of the root causes is ghosting.  When team members hide the true number of hours they are working, the historical record of the effort required to complete a project is wrong.  This leads to inaccurate estimating models, which leads to low-ball bids and project timelines that can never be achieved.  It might not seem to matter if a low-level testing resource shaves 10 hours a week off of his time report.  But if every tester does the same, you are quickly looking at enough hidden hours to support an extra full-time resource.  Multiply this across all of the teams on a project, and it's easy to see how a "little ghosting" can lead to a grossly under-estimated project and a large time and money over-run.
• Finances - The short-term financial benefits of ghosting are obvious.  Recorded overtime eats into a project's hours and budget.  The Partner can either choose to eat these hours, which kills his margin, or he can pass the hours along to the client, which leads to a very unhappy client.  When you consider the cost of missed deadlines, project extensions, and budget over-runs discussed above, however, one or two projects that miss their margins in the short-term are a small price to pay for better estimating models and more accurate bids that lead to consistently more successful projects across the organization.  What would your consulting firm save if it could reduce the number of projects that required an extension?  What would you gain in repeat business from clients who were happy to finally work with a consulting firm that met all of its deadlines? 
• Quality of Work - I'll keep this one brief.  No one does their best work after 5 straight months of working 60 hours a week.  On many occasions, consultants will ghost hours without letting their managers know.  They don't want anyone to think they can't handle the job.  Or they've received the cultural signals that overtime is frowned upon, so they hide it.  Whatever the reason is, let me pass on this advice I once received from a very good manager, "No one can help you if you don't let them know you need help."  Clients pay a lot of money for consultants.  They expect top notch work.  Ghosting degrades the quality of work.  This upsets clients and makes them less likely to pay for your company's work in the future.
• Trust - Many companies have policies against ghosting.  When the company policy states that ghosting is not allowed, but a project is asking team members to ghost, the consultants are put in a tricky situation.  Do they ghost, and go against company policy?  Or do they record all of their hours and risk the wrath of their immediate leadership?  This situation degrades the trust between consultants and their leadership, and reduces the team's ability to work together as a cohesive unit.  When a team can't work together, it takes longer to produce lower quality work.  I direct you again to the cost of missed deadlines and poor output.
• Burn Out - Consultants burn out at an alarming rate.  When I tell people I stayed at one firm for five years, they're usually surprised.  That's a long time to stay at a consulting firm.  Studies have shown over and over, though, that there's a huge cost associated with losing an employee.  Not only are you losing all of the time and money you have invested in that person - think training and mentoring - but now you have to spend time and money to find a replacement and get that person ramped up to a comparable level.  Ghosting directly contributes to burn out, which directly hurts your organization.

The short-term benefits of ghosting may help an individual project, but the long-term negative impacts affect the entire consulting organization.  It becomes a cycle that amplifies the damage over time and is increasingly hard to break.  Considering the cost of ghosting, though, the question isn't whether your company can endure the immediate pains of breaking the cycle...it's whether it can afford not to.

Change Management for Non-Profits: Motivating Volunteers

Two years ago, I helped develop and deliver Project Management and Change Management training for non-profit organizations.  It was the most fulfilling work activity in which I have ever participated.  Not only were the participants truly grateful for the training, but I knew that they would put it to good use helping their organizations better achieve their goals of reaching out to those in need.

As I talked to different organizations, I noticed some key themes.  One major question was, "How do we motivate our volunteers to stay actively engaged with our organization?"  Non-profit organizations don't have at their disposal many of the traditional levers that companies use with their employees.  Volunteers don't receive a salary, which means there's no hope of a bonus or raise for going above and beyond the call of duty.  There are no performance reviews and no fear of being fired. 

Add to that the fact that many volunteers are giving their time on top of commitments to family, friends, and a full-time job, and you can see why non-profits experience high volunteer turn-over, absenteeism, and loss of motivation.

What can you do to motivate volunteers when many of the common corporate methods just aren't an option?

Three Practical Tips for Motivating Volunteers

1. Renew their sense of purpose: With the possible exception of high school students forced to volunteer, people typically give their time because they are passionate about the cause.  Whether it's finding a cure for breast cancer, helping the homeless get back on their feet, or finding shelter for abused animals, volunteers come to their role with a sense of purpose and a drive to help the non-profit achieve its goals.  When volunteers lose this purpose and drive, it's your job to help them find it again.  Remind them of the people who are being helped.  Show them solid examples of how your organization has helped your target group.  Share with them your plans for delivering more benefits in the future.  Basically, remind them why they care, and pump them up to continue contributing to all of the good your organization is doing. 
2. Show them their value: Volunteer work isn't always particularly glamorous.  After stuffing and licking hundreds of envelopes, answering phones for hours, or filing mountains of papers, it can be easy for volunteers to lose sight of how the tasks they are doing contribute to the greater cause.  You need to help them connect the dots.  Did the hundreds of envelopes they stuffed lead to thousands of dollars in donations?  Tell them!  Show them how even the most menial tasks help the organization achieve its goals.  If you receive positive feedback from people who have benefited from your services, share that with your volunteers, and explain how that person was directly affected by the work they did.  Everyone wants to feel like their small piece of the puzzle is important to the big picture.  It's your responsibility to help them see where they fit and why their work is important.
3. Focus on "total compensation": Many corporations these days don't just talk about an employee's salary.  Instead, they talk about "total compensation."  This can include vacation time, training opportunities, and other perks the employee receives that can't necessarily be quantified as part of their pay check.  Since volunteers aren't getting paid, it's especially important for non-profits to think about the "total compensation" they can provide to their team.  If you have the money, small items like a branded t-shirt or hat can be a fun surprise for a volunteer, and everyone always loves a free lunch.  Even if you don't have any budget for your volunteers, though, that doesn't mean you can't provide compensation.  Remember to thank your volunteers for their time and hard work.  If you can, encourage the people who benefit from your organization to provide thanks.  There's nothing better than a thank you note from a group of kids whose school was painted by volunteers!  Recognize your volunteers publicly at events they've helped to stage.  And remember, for many volunteers, the best compensation is the great feeling they get from helping others. 

Readers - If you work at a non-profit organization, how do you motivate your volunteers?

Volunteers - What could non-profit organizations do to help you stay motivated?