Business Project Management

MGT 172
Chapter 10, 11, 12
Leadership: Being an Effective Project Manager
Managing Project Teams
Outsourcing:
Managing Interorganizational Relations

May 27, 2010

UCSD MGT 172 - Business Project Management

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Slide 1

May 27, 2010

UCSD MGT 172 - Business Project Management

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Slide 2

Project Managers Provide Balance

Optimum
Performance

Project

Manage
Managethe
theproject
projectand
and
lead
leadthe
thepeople.
people.

Objectives

Project
Manager
interfaces with
Technical
Functions

Task Managers
& Project Staff

Business
Functions

Subcontractors
Functional and Line Managers
Customer

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UCSD MGT 172 - Business Project Management

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Slide 3

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 between time,
costs, and project scope
Consistently produce key results
expected by the stakeholders
Tactical!
Can hire to make up for their
weaker side

Doing
Doingthings
things
right
right
May 27, 2010

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
Political communication
Establish direction, aligning
people to achieve cooperation,
and motivating and inspiring
project team members to perform
and overcome barriers
Strategic

Doing
Doingthe
theright
right
things
things

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Slide 4

Question:
Name a prominent leader
What are his/her distinguishing qualities as a leader?
MORE MEMORABLE

Name a prominent manager

What are his/her distinguishing qualities as a manager?

Are leaders or managers generally better known?

Why do you think that is the case?

What kind of leader do you want to be?

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Slide 5

Leading by Example
Ethical Dilemmas in Project
Management
Situations where it is necessary to
determine whether conduct is right
or wrong
Padding of cost and time
estimations
Exaggerating pay-offs of project
proposals
Falsely assuring customers that
everything is on track
Being pressured to alter status
reports
Falsifying cost accounts
Compromising safety standards to
accelerate progress
Approving shoddy work

Code of conduct
Professional standards and
personal integrity

May 27, 2010

Problem Solving
Priorities
Is the company a priority?

Cooperation
How will you work with difficult people?

Urgency
Will you get onto the subject right away or let it lag?

Ethics
Standards of performance
How do you set goals for quality and standards?

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Slide 6

Requirements for an Effective Shared Vision

Strategic sense
Why are you doing the project in the
first place?

Inspires others
Not only the people in the project
but also the passerby's

Passion
They had passion for the project
Were a great team!

Communicate
Lets Roll
All the time

FIGURE 11.4
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Slide 7

Leading and Managing: Key Points

You cant do it all and get it all done
Projects usually involve a vast web of relationships
Need to delegate and trust that theyre doing what you need them to do

Build relationships before you need them

Need to ask for help from people outside of your field sometimes
Reach out to your counterparts and work with them first if you know youre going to
encounter problems

Trust is sustained through frequent face-to-face contact

Especially for customer feedback and stuff. <<< important! Even skype is better than nothing.

Hands-on work is not the same as leading

More pressure and more involvement can reduce your effectiveness as a leader
Otherwise, other people will back off!

Whats important to you likely isnt as important to someone else

Different groups have different stakes (responsibilities, agendas, and priorities) in
the outcome of a project
Need to see the big picture

Project management is tough, exciting, and rewardingendeavor to

persevere!
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Slide 8

With Whom are you Communicating?

Stakeholders

Network of Stakeholders

Project team
Line management
Organization management
Matrix organization(s) line
management
Subcontractors
Suppliers

Define goals in communicating

with each stakeholder
Building rapport and trust
relationship
Meeting expectations
No surprises
Partnership
NOT COMPETITORS
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Slide 9

 Monitor communications
Project notebook
Lessons learned
Status information (room, board,
website, notebook)
Issues and concerns
May 27, 2010

CEO
CEO
COO
Executive #1
CEO
CEO
Executive #2
CFO
Project Manager PM PM PM PM
Chief System Engineer
T T T T
Hardware Manager H H H H
Software Manager S S S S
Marketing
PM
PM
Contracts
C C C C
Procurement

August

July

June

May

April

Contractor

March

Stakeholder communications
requirements
Communication methods
Collection and dissemination
procedures
Access, security, and archival
Communication standards and
etiquette
Communication channels and
project organization

February

Have timeline and who

January

Time

October

Implement a Communications
Plan

September

Plan for Effective Communications

CEO
PM
PM
T
H
S
PM
C C

PM
T
H
S

PM
T
H
S

PM
T
H
S
PM
C C

PM
T
H
S

PM
T
H
S
PM
C C

CEO = Chief Executive Officer

COO = Chief Operations Officer
PM = Project Manager
T = Test
H = Hardware
S = Software
C = Contracts
T = Technical

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Slide 10

Types of Project Communications = 90% of

your time, will be on the final
Verbal

Interpersonal

Purpose
Information, explanations, quick instructions
Get timely exchange and closure
Get immediate feedback
Synthesized immediately
How
Message includes three parts: introduction,
explanation, summary
Clarify when using technical jargon and
acronymn

For interacting with project team and

customer on a daily basis
Listening, problem-solving, decisionmaking, negotiating, managing conflict

Informal
Casual project communications among
team members
Email, text, etc.

Through relationships dependent on

common ties, e.g., hobbies, social
status, friendship, kinship
Project Manager should identify
informal or natural leaders to
implement a more open project
environment

Written

Formal
Through channels described in
organization chart
Plans, designs, systems, policies and
procedures, standards, proposals,
letters

May 27, 2010

NEED IN WRITING

Purpose
Complex information or data
Requires future action
Regards policy, procedures, or changes
Avoids misunderstandings
How
Message includes three parts: introduction,
explanation, summary
Well-planned, simple, clear, and direct
You versus me attitude
Positive versus negative (what we can do
versus what we cannot do)
Avoid jargon and acronyms
Three things you need to do when you communicate
Intro
Tell them
Closure

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Slide 11

Modes of Project Communications

Email
Important information
One-to-one or one-to-many = reply all = be careful of what you send

Electronic Bulletin Boards

Encourage discussion and flush out diversity of opinion on issues

Video Conference
See facial expressions and body language
Skype

Important during early phases of a project for common understanding

Critical decisions and/or contentious issues

Conference Calls
Different locations with common documents, presentations, sketches, and
models
Use for status report meetings
Bad things about conference calls = Multitasking, bad reception, people talk on top of each other

In Person
Build or repair trust
Personal information

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Slide 12

Understanding Your Customer

Understand the customers internal
environment
Organizational assessment

Understand the customers external

environment
There are many importance and gear
your message to have them listen

Document customer communications

Action items
Meeting minutes
Contact reports
Trip reports
Status information/progress reports
Issues and concerns

Enforce communications discipline

Who communicates with whom
Need to have one voice/message
Schedule for formal communications
How communications should happen

May 27, 2010

Customer Satisfaction << on the final

The negative effect of dissatisfied
customers on a firms reputation is
far greater than the positive effect
of satisfied customers.
Satisfaction is a perceptual
relationship:
Perceived performance
Expected performance
Project managers must be skilled
at managing both customer
expectations and perceptions
Actual performance has nothing to do
with perception
Customers dont care about what your
contract says

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Slide 13

Key Points in Managing Customer Expectations

Dont oversell the project; better to undersell
Be reliable and responsive
Some customers do not know exactly what they want
Clearly define what you are providing in agreements
This prevents scope creep
You need to keep selling your project throughout the time

Be alert for customer misconceptions and complaints

Be upfront about some problems you may run into
The customer might be able to help you

Share significant problems and risks

Keep everyone informed about the projects progress
Involve customers early in decisions about project development changes
Handle customer relationships and problems in an expeditious, competent, and
professional manner
Sometimes you have to take the bullet for someone else

Speak the language of the customer

Adapt to their language

Speak with one voice

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Slide 14

Exercise
Determine which of the following type of communication
is the most appropriate to use in each of the described
circumstances:
E-mail
Electronic bulletin boards
Video conference
Conference calls
In person

Explain why you chose that method vis--vis other

methods
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Slide 15

Creating a High-Performance Project Team

FIGURE 11.3
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Slide 16

Staffing Challenges
Budget for training, ramp-up time, and empowering resources
People dont know what they are doing yet so have some
Dont put too much stuff in the first few months

Select the best candidate

Do not bait and switch in job offers
Receive approval from Line Manager(s) for new hires and internal
transfers
Assign staff to do what they do best
People do MUCH better when they take ownership
They also dont step on each other

Have clear things that you expect from each person

Document and formalize all agreements and expectations in writing

Balance project pressures with the hiring process

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Slide 17

Influence as Exchange
The Law of Reciprocity
One good deed deserves another, and likewise, one bad deed
deserves another.
Quid pro Quo
Mutual exchanges of resources and services (back-scratching)
build relationships.
Especially with functional managers cus they have stuff you need

Influence Currencies (Cohen and Bradford)

Cooperative relationships are built on the exchange of
organizational currencies (favors).

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Slide 18

Commonly Traded Organizational Currencies <<

Final
Task-related currencies
Resources

Inspiration-related currencies
Vision

Lending or giving money, budget increases, personnel,

etc.

Assistance

Being involved in a task that has larger significance

for the unit, organization, customer, or society.

Excellence

Helping with existing projects or undertaking unwanted

tasks.

Cooperation
Giving task support, providing quicker response time,
or aiding implementation

Information
Providing organizational as well as technical
knowledge.

Having a chance to do important things really well.

Ethical correctness
Doing what is right by a higher standard than
efficiency.

Relationship-related currencies
Acceptance
Providing closeness and friendship.

Position-related currencies

Giving personal and emotional backing.

Understanding

Advancement

Listening to others concerns and issues.

Giving a task or assignment that can result in

promotion.

Recognition
Acknowledging effort, accomplishments, or abilities.

Visibility
Providing a chance to be known by higher-ups or
significant others in the organization.

Network/contacts
Providing opportunities for linking with others.

May 27, 2010

Personal support

Personal-related currencies
Challenge/learning
Sharing tasks that increase skills and abilities.

Ownership/involvement
Letting others have ownership and influence.

Gratitude
Expressing appreciation.

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Slide 19

Building High-Performance Project Teams

Recruiting Project Members
Factors affecting recruiting:
Importance of the project
Management structure used to complete the project

How to recruit?
Ask for volunteers
Ask around for recommendations

Who to recruit?
Problem-solving ability
Technological expertise
Credibility
Political connections
Ambition, initiative, and energy
Availability
Make sure theyll fit in
Have team dynamic
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UCSD MGT 172 - Business Project Management

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Slide 20

Establishing the Project Team

Equip
Provide or procure office, computer, and other resources

Orient
Introduce new hires to the project team
Provide overview of the project
Plan first assignments and performance objectives

Connect
Assign a mentor, especially to new hires and star performers
Project Manager or Task Manager should establish relationships with all project team
members
Create a Project Team Directory that includes key customer and subcontractor locations
and contact information

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Slide 21

Motivating the Project Team

Be approachable
Managing by Walking Around (MBWA) << on final
The higher you go up in management, the less you know about whats going on

Define and reinforce project values

Value your people
You cant throw them under the bus. If wrong people, get new people

Provide a good working environment

Provide team-building activities
Involve the project team in resolving
challenges

Communicate effectively
Empower the team
Mentoring
Training
Improving Morale

Dont shoot the messenger

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Slide 22

Managing Virtual Project Teams

Challenges:
Developing trust
Exchange of social information.
Set clear roles for each team member.

Developing effective patterns of communication.

Include face-to-face if at all possible.
Keep team members informed on how the overall project is going.
Verbal stuff is important because things can go quick

Dont let team members vanish.

Establish a code of conduct to avoid delays.
Set order of talking/

Establish clear norms and protocols for surfacing assumptions and

conflicts.
Share the pain in terms of multiple time zones.

Have to be very focused

Inclusive but strict
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Slide 23

Team Development << on final

Five Stage Team Development Model

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Slide 24

Team Development (cont.)

High Performing Teams
Share a sense of common purpose
Make effective use of individual talents and expertise
Have balanced and shared roles
Maintain a problem solving focus
Accept differences of opinion and expression
Encourage risk taking and creativity
Sets high personal performance standards
Identify with the team

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Slide 25

Project Team Meetings

Managing
Managing
Subsequent
Subsequent
Meetings
Meetings

Relationship
Relationship
Decisions
Decisions

Managing
Managing
Change
Change
Decisions
Decisions

May 27, 2010

Establishing
Establishing
Ground
GroundRules
Rules

Conducting
Conducting
Project
Project
Meetings
Meetings

Planning
Planning
Decisions
Decisions

Tracking
Tracking
Decisions
Decisions

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Slide 26

Sources of Project Conflicts

Schedules
Priorities
Cost/budget
Technical tradeoffs
Human resources (allocation)
Administrative support
Communications
Personality
Cultural issues

May 27, 2010

There
Therewill
willalways
alwaysbe
beconflict
conflicton
on
aaproject,
project,and
andititwill
willvary
varywith
with
the
thelife
lifecycle
cyclephases
phasesand
andproject
project
performance
performance

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Slide 27

Managing Conflict
Be proactive in identifying potential sources of stress or conflict before they impact
performance
Identify and prevent organizational stressors
All leaders need to act on issues brought to their attention
Encourage project team members to manage their individual stressors

Be proactive in managing project stress or conflicts

Investigate and define problem with those involved
Analyze problem to identify causes and effects
If you dont do this fast enough, you might lose respect

Generate alternatives and options with those involved

Develop and document a plan of action
Provide feedback to those involved
Evaluate and negotiate resolution with those involved
Involve appropriate resources as necessary
Human Resources personnel
Line management

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Slide 28

Managing Project Reward Systems

Group Rewards!!!!!!!! And everyone gets recognized
How to reward the entire team?
T-shirt = keepsake
Cups
Survival kit
Tombstone
Mascot, Lanyard, M&M, Paper weights, Leap frog

How to make the reward have lasting significance?

Who gets what as an individual reward?

Letters of commendation
E-mails to project team
Senior management recognition
Joint recognition with customer

Public recognition for outstanding work

Desirable job assignments
Increased personal flexibility

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Slide 29

On-going Individual Performance Evaluation

Establish clear goals and objectives linked to project scope
Provide feedback year-round, not just during review time
Provide feedback on the following questions:
What did you do?
Provide personal opinions
Provide input from others giving job direction

How well did you do it?

Evaluate current performance
Focus on the facts

What are you going to do next?

Identify the next goals/activities to be performed

How are you going to do it?

Develop ways to assist project team members in attaining goals
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Slide 30

Formal Individual Project Performance Evaluation

Responsibility for Assessing Performance
Functional organization or functional matrix: the individuals area manager
The area manager may solicit the project managers opinion of the
individuals performance on a specific project.
Matrix: the project manager and the functional area manager jointly evaluate
an individuals performance.
Project organizations: the project manager is responsible for appraising
individual performance.

Multirater appraisal or the 360-degree feedback

Involves soliciting feedback concerning team members performance from all
the people their work affects.
This includes project
managers, area managers,
peers, subordinates,
and even customers.
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Slide 31

Conducting Individual Performance Reviews

Begin by asking the individual to evaluate his or her own
performance.
Avoid drawing comparisons with other team members;
rather, assess the individual in terms of established
standards and expectations.
Focus criticism on specific behaviors rather than on the
individual personally.
Be consistent and fair in your treatment of all team
members.
Treat the review as one point in an ongoing process.

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Slide 32

The Art of Negotiating

Project Management Is NOT a Contest.
Everyone is on the same sideOURS.
Everyone is bound by the success of the project.
Everyone has to continue to work together.
Principled Negotiations
Separate the people from the problem.
Focus on interests, not positions.
Try to maybe ask what you can get first then follow up with the rest later

Invent options for mutual gain.

When possible, use objective criteria.
Dealing with Unreasonable People
If pushed, dont push back
Ask questions instead of making definitive statements
Make them think they thought about it

Use silence as a response to unreasonable demands

Count to 30 cut out the emotion

Ask for advice and encourage others on your team to criticize your ideas and positions
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Slide 33

Managing Conflict Scenario

Three different teams of approximately 3 to 5 persons each have been
brought together to work on a project. In the past, the teams
competed with each other, and several of the team members
personally dislike members of the other teams. All team members
have personal traits that could irritate the other team members,
especially when they are stressed. Each team considers
themselves intellectually superior, knowledgeable, more powerful,
and more important than the other teams. One of the team
members has a close association with the primary stakeholder.
You are the new project manager. You are preparing for the Kickoff
Meeting for a very challenging short term, schedule challenged,
highly visible project.
What should you do to ensure success?
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Slide 34

Homework for next session

Read Chapter 13
Complete Exercises #1-3 (Pages 484485)

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Slide 35