Copyright 2009 John Wiley & Sons, Inc. Chapter 3 The Project Manager

Introduction According to Rear Admiral Grace Hopper, inventor of COBOL and a computer visionary, “Leadership and management are two different things. You lead people and you manage projects.”

Leadership and Management Leadership is a talent only a few are born with Management is a skill that anyone can acquire

Projects are Riskier 1. Expectations are more specific 2. The resources are more diverse–and many are not even in your department 3. Deadlines are shorter 4. No chance to do better next time if there is a problem

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 Continued The project manager should come into the project early We want him to help produce as much of the project plan as possible This helps insure that the project manager “buys into” the plans Over time, plans are refined and people are added to the project staff

Functional Management Figure 3-1

Functional Management Continued 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

Project Management Figure 3-2

Project Management Continued 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 That is, they exercise very little control over most aspects of the work that gets performed on the project

Comparing Functional & 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

Special Cases 1. 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 2. When a line person is assigned as a project manager, conflicts can arise between the line and project for resource assignment 3. When projects are small, a project manager may manage multiple project. This can be a problem when the projects conflict

Project Manager Responsibilities 1. The parent company 2. The project/client 3. The project staff

The Parent Company Proper usage of resources Timely and accurate reports – Covered in detail later Keep project sponsor informed

The Project / Client Preserve the integrity of the project – This may be difficult with all sides wanting changes Keep the client informed of major changes

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

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

Acquiring and Motivating Personnel Continued 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”

Dealing with Obstacles Continued Early problems associated with resources Later problems are associated with… 1. Last-minute schedule and technical changes 2. What happens to the team when the project is completed

Making Project Goal Trade-Offs Trade-offs involve… 1. Cost 2. Time 3. 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 1. Why the project exists 2. Some projects fail 3. Top management support needed 4. Information network needed 5. Must be flexible

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

Selecting the Project Manager 1. Credibility 2. Sensitivity 3. Leadership, ethics, and management style 4. Ability to handle stress

Creditability 1. Technical credibility 2. Administrative credibility

Sensitivity Political sensitivity Interpersonal sensitivity Technically sensitivity

Leadership, Ethics, and Management Style Leadership Strong sense ethics A management style that fits the project

Ability to Handle Stress 1. No consistent procedures 2. Too much to do 3. High need to achieve 4. Organizations in change

Problems of Cultural Differences Project managers must adapt to the social/cultural environment in which they are workings This is especially true when the project is in another country There can be real problems on international projects when a culture’s opinion of some group are different from the firm’s

Aspects of Culture Technology Institutions Language Aesthetic values

Culture and the Project Time Staffing projects Knowledge of people

Impact of Institutional Environments 1. Socioeconomic environment 2. Legal environment 3. Business cycle as an environment 4. Technologically environment

Socioeconomic Environment Must deal with the local government Local government is interested in its citizens Must honor local customs

Legal Environment Different countries/regions have different legal structures The project must conform to those laws Projects may also have to conform to US laws

Legal Environment Continued Ownership of the project Patents Copyrights Trademarks Trade secrets

The Business Cycle as an Environment The business environment can be very different in various countries The general economic environment can also be different – Cost of living – Unemployment – Average income – Work day

Technological Environment The US is very technologically advanced Some other countries are less advanced This affects the technology available for the project It affects the local worker’s ability to understand and use technology

Multicultural Communications and Management Behavior Cultural differences have a tremendous impact on project personnel Differences in value systems present problems to project personnel The logistics of relocating project personnel on international projects is huge This is especially true in developing countries – Large distances constrain travel – Just getting to a meeting may take days Language and educational differences present communication problems