1. Project Leadership in Context: Balancing Transactional with Transformational Approaches A CTMR Research Initiative Zvi Aronson, Peter Dominick and Thomas Lechler

2. Project Leadership wTraditionally PM role emphasized coordination and control ( Miller & Lessard, 2000). wPM’s role evolving in a way that places greater emphasis on leadership ( Morris, 1994.) w“Leadership behavior exists at the heart of successful project development.” (Pinto, 1998)  Our focus is on understanding a PM’s leadership role and the implications for performance

3. Project Leadership Behavior Transactional –focus on coping with complexity. –Establishing order and providing consistency –Process oriented (e.g. how decisions are made rather than what decisions are made) –Key Dimensions Planning and Controlling Information Sharing/ Communication Decision Participation Transformational –Provide a clear and engaging direction –Energize and inspire collective effort –Key Dimensions Intellectual Stimulation Idealized influence Inspirational Motivation Individualized Consideration

4. Project Managers as Transformational Leaders “ When we consider some of the characteristics of transformational leaders, it is easy to see how they apply to project management” (Pinto, 1998) –Little direct empirical support for this assertion –What, if anything is unique about how transformational leadership applies to project based work? “More attention is also needed to situational variables that determine whether transformational leadership…will be effective…As yet only a small number of studies have examined contextual variables.” (Yukl, 2001,p.263 )

5. Project Characteristics ( e.g. Complexity and uncertainty) Performance Transformational Transactional

6. Project Leadership Transformational Leader Transactional Leader Project Success Efficiency Scope Satisfaction Overall Examples of Moderators Level of Innovation Sources of Innovation Technological Uncertainty Business Risk Resource Consistency Goal Changes Urgency

7. Transformational Leader Idealized Influence Inspiration/Motivation Intellectual Stimulation Individualized Consideration Project Leadership Behaviors and Success Overall Project Success Transactional Leader Participation Planning/Controlling Information/Communication.28.51 n.s..34.45.38.46

8. Transformational Leader Idealized Influence Inspiration/Motivation Intellectual Stimulation Individualized Consideration Project Leadership Behaviors and Efficiency Efficiency Transactional Leader Participation Planning/Controlling Information/Communication n.s..40 n.s.

9. Transformational Leader Idealized Influence Inspiration/Motivation Intellectual Stimulation Individualized Consideration Project Leadership Behaviors and Scope Scope (Technical Success) Transactional Leader Participation Planning/Controlling Information/Communication.32.46.51.48.50.45.33

10. Transformational Leader Idealized Influence Inspiration/Motivation Intellectual Stimulation Individualized Consideration Project Leadership Behaviors and Client Client Satisfaction Transactional Leader Participation Planning/Controlling Information/Communication.39.43.31.35.47.30.41

11. Some Preliminary Findings (Leadership and Project Success ) Transformational and transactional leadership behaviors are both important for: –Overall Project Success –Project Scope (Technical Success) –Client Satisfaction –Magnitude of Correlations is stronger for transformational leadership A different story for Project Efficiency –Transactional leadership seems to be most relevant

12. Transformational Leader Idealized Influence Inspiration/Motivation Intellectual Stimulation Individualized Consideration Leadership Behaviors and Innovativeness Overall Success Transactional Leader Participation Planning/Controlling Information/Communication n.s..50 n.s..41.44.31.43.60.48.43.39.48.53.59 Routine Innovative

13. Transformational Leader Idealized Influence Inspiration/Motivation Intellectual Stimulation Individualized Consideration Leadership Behaviors and Technical Risks Overall Success Transactional Leader Participation Planning/Controlling Information/Communication n.s..55.36.44.37.54.39.60.51.46.47.54.50.44 No Risk Risky

14. Transformational Leader Idealized Consideration Inspiration/Motivation Intellectual Stimulation Individualized Consideration Leadership Behaviors and Urgency Overall Success Transactional Leader Participation Planning/Controlling Information/Communication n.s..55 n.s..40.31.52 n.s..41.56.44.52 Not Urgent Urgent

15. Some Preliminary Findings (The Impact of Project Context) Correlations between transformational leadership and success increase as the project environment becomes more complex and uncertain –Greater complexity –Level of innovation –Technical Risks –Urgency

16. Some Practical Implications Project Manager’s Role needs to be viewed as one that requires leadership as well as management –From project administrator to project leader –Maybe a new paradigm for some organizations? –Maybe a new mindset for some project managers? The fit between leadership skills - Project characteristics Training Selection and Staffing