Leadership and Effective Project Management

Project Management and the Project Manager The project manager functions as a mini-CEO The project manager must have a clear understanding of how the project fits into the overall organization This is why broad knowledge is more valuable than technical knowledge Budgets, timetables, and criteria, magnify management problems on projects . The project manager should come into the project early We want him to help produce as much of the project plan as possible Over time, plans are refined and people are added to the project staff

Managing versus Leading a Project Managing—coping with complexity Formulate plans and objectives Monitor results Take corrective action Expedite activities Solve technical problems Serve as peacemaker Make tradeoffs among time, costs, and project scope Leading—coping with change Recognize the need to change to keep the project on track Initiate change Provide direction and motivation Innovate and adapt as necessary Integrate assigned resources

Managing versus Leading a Project The higher the degree of uncertainty encountered on a project— whether in terms of changes in project scope, technological stalemates, breakdowns in coordination between people, and so forth—the more leadership is required. Some individuals are great visionaries who are good at exciting people about change but lack the discipline or patience to deal with the day-to-day drudgeries of managing. Likewise, there are other individuals who are very well organized and methodical but lack the ability to inspire others. Strong leaders can compensate for their managerial weaknesses by having trusted assistants who oversee and manage the details of the project. A weak leader can complement his or her strengths by having assistants who are good at sensing the need to change and rallying project participants.

Functional versus Project Managers Project Mangers Project managers are usually generalists It would be very unusual for a project manager to have all the technical skills that are used on their projects The project manager rarely decides who performs each task and lacks the technical skills to evaluate much of the work performed on the project Functional Managers Department heads are usually functional specialists They have the technical skills to evaluate all members of their organization They decide who performs each task and, to a certain degree, how the task is performed That is, they exercise a great deal of control over every aspect of the work that gets performed within their area

Functional versus Project Managers Functional manager needs technical skills while project manager need negotiation skills Functional manager must be skilled at analysis while project manager must be skilled at synthesis Functional manager uses the analytic approach while project manager uses the systems approach Functional manager is responsible for a small area while project manager is responsible for the big picture Functional manager is a manager while the project manager is a facilitator

Functional versus Project Managers When a project is small, line personnel may be assigned as manager. When conflicts between the line position and the project arise, the project will suffer When a line person is assigned as a project manager, conflicts can arise between the line and project for resource assignment When projects are small, a project manager may manage multiple project. This can be a problem when the projects conflict

Project Manager Responsibilities The parent company: include proper conservation of resources, timely and accurate project communications, and the careful, competent management of the project. It is very important to keep senior management of the parent organization fully informed about the project’s status, cost, timing, and prospects. Senior managers should be warned about likely future problems. Reports must be accurate and timely if the PM is to maintain credibility, protect the parent firm from high risk.

Project Manager Responsibilities The project/client ensuring that the integrity of the project is preserved in spite of the conflicting demands made by the many parties who have legitimate interests in the project. The PM must deal with conflicting requests from several departments and sort out understanding from misunderstanding. The project staff Very few people will work for the project manager The “team” will disband at the end of the project The project manager must look out for everyone’s future This is in the best interest of the project, otherwise as the project winds down, everyone will be looking after themselves

Managing Project Stakeholders Project success depends on the cooperation of a wide range of individuals, many of whom do not directly report to them. Project Managers encounter a web of relationships that requires a much broader spectrum of influence than they felt was necessary or even possible. Depending on the nature of the project, there are a number of different groups outside the organization that influence the success of the project; the most important is the customer for which the project is designed. Each of these groups of stakeholders brings different expertise, standards, priorities, and agendas to the project.

Managing Project Stakeholders A stakeholder analysis is a technique to identify and assess the importance of key people, groups of people, or institutions that may significantly influence the success of an activity or project. A stakeholder is any individual, community, group, or organization with an interest in the outcome of a programme, or a project, either as a result of being affected by it positively or negatively, or by being able to influence the activity in a positive or negative way

Network of Stakeholders FIGURE 10.1

Stakeholders Analysis – 3 steps Identification of all stakeholders involved stakeholders which may be affected by the problem or the project are identified Categorization of the stakeholders all relevant stakeholders are categorized according to criteria relevant for the specific project (active, beneficiaries, affected, supporters, opponents) Detailed analysis of selected stakeholders more detailed analysis of selected stakeholders (characteristics, relations, interest, power)

Stakeholders Analysis - Identification project team manages and completes project work. Project managers naturally compete with each other for resources and the support of top management. Administrative support groups, such as human resources, information systems, purchasing agents, and maintenance, provide valuable support services. Functional managers, depending on how the project is organized, can play a minor or major role toward project success. Functional managers want to cooperate up to a point, but only up to a certain point. They are also concerned with preserving their status within the organization and minimizing the disruptions the project may have on their own operations.

Stakeholders Analysis - Identification Top management approves funding of the project and establishes priorities within the organization. They define success and adjudicate rewards for accomplishments. Significant adjustments in budget, scope, and schedule typically need their approval. Project sponsors champion the project and use their influence to gain approval of the project. Their reputation is tied to the success of the project, and They need to be kept informed of any major developments. They defend the project when it comes under attack and are a key project ally. Contractors may do all the actual work, in some cases, with the project team merely coordinating their contributions.

Stakeholders Analysis - Identification Government agencies place constraints on project work. Other organizations, depending on the nature of the project, may directly or indirectly affect the project. Customers define the scope of the project, and ultimate project success rests in their satisfaction. Project managers need to be responsive to changing customer needs and requirements and to meeting their expectations. These relationships are interdependent in that a project manager’s ability to work effectively with one group will affect her ability to manage other groups. The project management structure being used will influence the number and degree of external dependencies that will need to be managed. (dedicated team reduces dependencies, a functional matrix structure increases dependencies)

Categorization of Stakeholders Key stakeholder Those who can significantly influence or are important to the success of an activity Primary stakeholder Those individuals and groups who are ultimately affected by an activity, either as beneficiaries (positively impacted) or those adversely impacted Secondary stakeholder All other individuals or institutions with a stake, interest or intermediary role in the activity

Categorization of Stakeholders - Example

Characteristics of stakeholders

Importance / Influence Matrix Shows stakeholders of high importance to the activity who can also significantly influence its success. Managers will need to develop good working relationship with these stakeholders to ensure an effective coalition of support for the activity Shows stakeholders of high importance to the activity, but with low influence. They require special initiatives if their interests are to be met Shows stakeholders with high influence, who can affect outcome of the activity, but whose interest are not the target of the activity These stakeholders may be able to block the activity and therefore constitute a killer risk Shows stakeholders who are of low priority but may need limited monitoring They are unlikely to be the focus of the activity

Influence / Importance of stakeholders Post Harvest Losses Key Stakeholders Fishers Boat owners Aquaculture producers Government Primary Stakeholders Community based organizations Fish markets - retail outlets Fish exporters Ice suppliers Secondary Stakeholders Boat/ship builders and designers Harbor management Private service business Fish buyers

Social Network Building Mapping Dependencies Project team perspective: Whose cooperation will we need? Whose agreement or approval will we need? Whose opposition would keep us from accomplishing the project? Stakeholders’ perspective: What differences exist between the team and those on whom the team will depend? How do the stakeholders view the project? What is the status of our relationships with the stakeholders? What sources of influence does the team have relative to the stakeholders?

Contradictions of Project Management Innovate and maintain stability. See the big picture while getting your hands dirty. Encourage individuals but stress the team. Hands-off/Hands-on. Flexible but firm. Team versus organizational loyalties.

Qualities of an Effective Project Manager Systems thinker Personal integrity Proactive High emotional intelligence (EQ). General business perspective Effective time management Skillful politician Optimist

Special Demands on Project Manager Acquiring adequate resources Acquiring and motivating personnel Dealing with obstacles Making project goal trade-offs Failure and the risk and fear of failure Breadth of communication Negotiation

Acquiring Adequate Resources Project budgets are usually inadequate There are resource trade-offs that must be considered Crises occur that require special resources

Acquiring and Motivating Personnel Most project workers are borrowed from functional managers The project manager negotiates for the desired worker but The project manager wants the best qualified individual The functional manager decides who to assign The functional manager also decides… The skill level to assign The pay and promotion of the worker assigned to the project Additionally, the worker will most likely return to the functional manager once the project is finished

Acquiring and Motivating Personnel Continued Once workers are assigned to a project, the project manager must motivate them The project manager have little or no control over pay and promotion This is especially true in shorter projects

Dealing with Obstacles Every project is unique The project manager will face a series of crises A big problem is “scope creep” Early problems associated with resources Later problems are associated with… Last-minute schedule and technical changes What happens to the team when the project is completed

Making Project Goal Trade-Offs Trade-offs involve… Cost Time Performance Multiple projects Project goals and organizational goals Project, firm, career

Failure and the Risk and Fear of Failure Well understood projects (Type 1)… Appear simple Natural flow introduces problems Poorly understood project (Type 2)… Many difficulties early on Most are planning problem May have psychic consequences

Breadth of Communication Why the project exists Some projects fail Top management support needed Information network needed Must be flexible

Negotiations Acquiring adequate resources Motivating personnel Dealing with obstacles Making project goal trade-offs Handing failure Maintaining communication