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Chapter 10 Being an Effective Project Manager Chapter Outline 1. Managing versus Leading a Project 2. Managing Project Stakeholders 3. Influence as Exchange A. Task-Related Currencies B. Position-Related Currencies C. Inspiration-Related Currencies D. Relationship-Related Currencies E. Personal-Related Currencies 4. Social Network Building A. Mapping Stakeholder Dependencies B. Management by Wandering Around (MBWA) C. Managing Upward Relations D. Leading by Example i. Priorities ii. Urgency iii. Problem Solving iv. Cooperation v. Standards of Performance vi. Ethics 5. Ethics and Project Management 6. Building Trust: The Key to Exercising Influence 7. Qualities of an Effective Project Manager 8. Summary 9. Key Terms 10. Review Questions 11. Exercises 12. Case 10.1: The Blue Sky Project 13. Case 10.2: Tom Bray 14. Case 10.3: Cerberus Corporation Chapter Learning Objectives After reading this chapter you should be able to: LO 10-1 Understand the difference between leading and managing a project. LO 10-2 Understand the need to manage project stakeholders. LO 10-3 Identify and apply different “influence currencies” to build positive relations with others. LO 10-4 Create a stakeholder map and develop strategies for managing project dependencies. LO 10-5 Understand the need for a highly interactive management style on projects. LO 10-6 More effectively manage project expectations. LO 10-7 Develop strategies for managing upward relations. LO 10-8 Understand the importance of building trust and acting in an ethical manner while working on a project. LO 10-9 Identify the qualities of an effective project manager. Review Questions 1. What is the difference between leading and managing a project? Leading involves recognizing and communicating the need to change course and direction of the project, aligning people to this new direction, and motivating the team to overcome obstacles to achieve the new objectives. Managing is about formulating plans and objectives, designing procedures to achieve those objectives, monitoring progress, and taking corrective action. Managing is about putting out fires and maintaining the course. Leading is about change, and altering the course of a project. 2. Why is a conductor of an orchestra an appropriate metaphor for being a project manager? What aspects of project managing are not reflected by this metaphor? Can you think of other metaphors that would be appropriate? There are many parallels between conducting an orchestra and managing a project. Conductors and project managers integrate the contributions of others. Each is dependent upon the expertise and talents of others. They facilitate performance rather than actually perform. Project managers orchestrate the completion of the project by inducing participants to make the right decision at the right time. Both control the pace and intensity of work by coordinating the involvement of players. Finally each has a vision of performance that transcends the music score or project plan. The conductor metaphor works best in describing how a project manager interacts with project members to complete the project. The metaphor fails to capture the intricacies of dealing with all of the project stakeholders (government officials, contractors, top management, customers) that impact the project. Other metaphors that emerge from class discussions include: quarterback, steering wheel, and ship’s captain. 3. What does the exchange model of influence suggest you do to build cooperative relationships to complete a project? According to the exchange model of influence, the primary way to gain cooperation is to provide services and resources to others in exchange for future resources and services (quid pro quo). The key is to find out what you can offer others that is of value to them so that they will feel obligated to reciprocate. Here the notion of influence currencies is useful in identifying different ways to gain cooperation from others. A second key is building a positive “bank account” with those whom you are dependent upon so that they are inclined to cooperate with you. 4. What differences would you expect to see between the kinds of influence currencies that a project manager in a functional matrix would use and the influence a project manager of a dedicated project team would use? This question is designed to explore the impact that the project management structure has on the ability of project managers to exercise influence over team members. The key point is that the project manager of a dedicated team has more formal authority over the participants and the project and, therefore, greater access to influence currencies than the project manager in a functional matrix. For example, the dedicated project manager is responsible for assigning project work, while functional managers do so in a functional matrix. A dedicated project manager will have greater access to position-related currencies. Since dedicated projects are used for high priority projects, the dedicated project manager is likely to develop inspiration-related currencies. Project managers in a functional matrix compensate for their lack of formal authority by exercising informal influence through the use of relationships and personal currencies. 5. Why is it important to build a relationship before you need it? People are likely to be more cooperative if they know you, and you have developed a personal relationship with them. When people view you as pleasant, credible, and helpful based on past contact, they are more likely to be responsive to your requests for help and less confrontational when problems arise. The key is building a positive credit in the relationship that you can tap into when you need help. 6. Why is it critical to keep the project sponsor informed? The project sponsor is a powerful ally who uses his/her influence to protect the project when it comes under attack in higher circles of management. Project sponsors need to be kept informed so that they can defend the project to the best of their abilities. 7. Why is trust a function of both character and competence? Character alone is not likely to engender trust. People must have confidence in the other person’s abilities and competence. For example, you are unlikely to follow someone who has the best of intentions if he/she has a track record of failing to get things done correctly. Conversely, one will not trust someone who is very competent but has a doubtful character. For example, you are unlikely to follow someone who is quite competent if you believe he/she is only looking out for what is best for him/her. 8. Which of the eight traits/skills associated with being an effective project manager is the most important? The least important? Why? This question is designed to generate discussion rather than a definitive answer. Most students will pick either emotional intelligence, systems thinker, skillful politician, or personal integrity. Having students debate their choices can lead to a spirited discussion, especially between those who picked skillful politician and personal integrity. The key is to get students to think about how these traits relate to being an effective project manager. For example, personal integrity is important because it leads to trust which facilitates more effective interaction. Alternatively, being a skilled politician is necessary to deal with different stakeholders with conflicting agendas. Students should come to the conclusion that while some traits may be more important than others, all are important to being an effective project manager. Exercises 1. Do an Internet search for the Keirsey Temperament Sorter Questionnaire and find a site that appears to have a reputable self-assessment questionnaire. Respond to the questionnaire to identify your temperament type. Read supportive documents associated with your type. What does this material suggest are the kinds of projects that would best suit you? What does it suggest your strengths and weaknesses are as a project manager? How can you compensate for your weaknesses? Sure, here are the results of the Keirsey Temperament Sorter Questionnaire: According to the Keirsey Temperament Sorter Questionnaire, my temperament type is "Guardian." Based on this result, here are the suggested kinds of projects that would best suit me, along with my strengths and weaknesses as a project manager, and how I can compensate for my weaknesses: Kinds of Projects that Suit Me: • Guardians are known for their practicality, reliability, and attention to detail. Therefore, projects that require meticulous planning, adherence to deadlines, and strict adherence to established procedures would suit me best. • Projects that involve ensuring compliance with regulations, managing risks, and maintaining stability and order would also be well-suited to my temperament. Strengths as a Project Manager: • Reliability: Guardians are dependable and responsible, making them reliable project managers who can be trusted to get the job done. • Organizational Skills: Guardians excel at creating and maintaining order, making them adept at organizing and managing project tasks, schedules, and resources. • Attention to Detail: Guardians are meticulous and thorough, ensuring that all aspects of the project are carefully planned and executed. Weaknesses as a Project Manager: • Resistance to Change: Guardians may be resistant to change and new ideas, which can make them less adaptable in dynamic project environments. • Reluctance to Take Risks: Guardians tend to be cautious and risk-averse, which can limit their ability to innovate and take calculated risks when necessary. • Overemphasis on Rules and Procedures: Guardians may focus too much on following established rules and procedures, which can stifle creativity and flexibility in project management. Compensating for Weaknesses: • To compensate for my resistance to change, I can work on being more open-minded and receptive to new ideas and innovative approaches. • To overcome my reluctance to take risks, I can seek input from team members with more adventurous temperaments and carefully weigh the potential risks and benefits of different courses of action. • To mitigate my tendency to overemphasize rules and procedures, I can remind myself to be flexible and adaptable when necessary, while still ensuring that essential processes and standards are followed. By recognizing my strengths and weaknesses as a Guardian project manager and actively working to compensate for my weaknesses, I can effectively lead projects to successful outcomes while leveraging my natural organizational skills and attention to detail. 2. Access the Project Management Institute Website and review the standards contained in PMI Member Ethical Standards section. How useful is the information for helping someone decide what behavior is appropriate and inappropriate? The information contained in the PMI Member Ethical Standards section of the Project Management Institute (PMI) website is highly useful for helping someone decide what behavior is appropriate and inappropriate in the context of project management. The PMI Member Ethical Standards outline the ethical responsibilities and expectations of project management professionals. They provide clear guidance on appropriate behavior, including honesty, integrity, fairness, and respect for stakeholders. The standards cover a wide range of ethical issues that project managers may encounter, including conflicts of interest, confidentiality, professional competence, and respect for intellectual property rights. By adhering to these standards, project managers can maintain the trust and confidence of their stakeholders, uphold the reputation of the profession, and ensure the success of their projects. Overall, the information provided in the PMI Member Ethical Standards section is invaluable for helping project managers make ethical decisions and conduct themselves in a professional and responsible manner. 3. You are organizing a benefit concert in your hometown that will feature local heavy metal rock groups and guest speakers. Draw a dependency map identifying the major groups of people that are likely to affect the success of this project. Who do you think will be most cooperative? Who do you think will be the least cooperative? Why? Dependency Map for Benefit Concert Project: 1. Local Heavy Metal Rock Groups • Performances • Attendance drawing power 2. Guest Speakers • Speeches • Audience engagement 3. Venue Management • Providing space for the concert • Ensuring safety and security 4. Local Authorities (Police, Fire Department, etc.) • Issuing permits • Ensuring compliance with regulations 5. Sponsors • Financial support • Promotional assistance 6. Local Community • Attendance • Support for the event 7. Volunteers • Event setup and management • Crowd control Most Cooperative: • Local Community : The local community is likely to be the most cooperative as they will benefit from the event and will be eager to support a cause. Least Cooperative: • Local Authorities : While necessary for permits and compliance, local authorities may be the least cooperative due to bureaucratic processes and regulations. However, with proper communication and adherence to regulations, cooperation can be achieved. 4. You are the project manager responsible for the overall construction of a new international airport. Draw a dependency map identifying the major groups of people that are likely to affect the success of this project. Who do you think will be most cooperative? Who do you think will be the least cooperative? Why? Dependency Map for New International Airport Construction Project: 1. Government Authorities • Issuing permits and approvals • Ensuring compliance with regulations • Providing funding or incentives 2. Architects and Engineers • Designing the airport layout and infrastructure • Providing technical expertise 3. Construction Contractors • Executing the construction work • Ensuring quality and safety standards 4. Suppliers and Vendors • Providing construction materials and equipment • Timely delivery of supplies 5. Environmental Agencies • Environmental impact assessment • Compliance with environmental regulations 6. Local Community • Land acquisition and resettlement • Minimizing noise and environmental impact 7. Airline Companies • Providing input on airport design and functionality • Committing to use the airport upon completion Most Cooperative: • Government Authorities: Government authorities are likely to be the most cooperative as they have a vested interest in the successful completion of the airport project. They provide necessary permits, approvals, and funding and are motivated to see the project through to completion for the benefit of the region. Least Cooperative: • Local Community: The local community may be the least cooperative as they may be concerned about the environmental impact, noise pollution, and land acquisition associated with the construction of the airport. However, with effective communication, community engagement, and mitigation measures, their cooperation can be gained. 5. Identify an important relationship (co-worker, boss, friend) in which you are having trouble gaining cooperation. Assess this relationship in terms of the influence currency model. What kinds of influence currency have you been exchanging in this relationship? Is the “bank account” for this relationship in the “red” or the “black”? What kinds of influence would be appropriate for building a stronger relationship with that person? An important relationship in which I am having trouble gaining cooperation is with a co-worker who I collaborate with on several projects. Assessment using the Influence Currency Model: 1. Resource Currency: I have been exchanging resource currency by offering assistance with tasks, sharing knowledge and information, and providing support when needed. 2. Social Currency: I have been exchanging social currency by being friendly, supportive, and building a positive rapport with my co-worker. 3. Position Currency: I have been exchanging position currency by leveraging my expertise and authority in certain areas to influence decision-making and project direction. 4. Inspiration Currency: I have been exchanging inspiration currency by motivating and encouraging my co-worker to achieve their goals and perform at their best. Bank Account Status: The bank account for this relationship is currently in the "red." Despite my efforts to exchange various forms of influence currency, I am still facing resistance and a lack of cooperation from my co-worker. Appropriate Influence for Building a Stronger Relationship: To build a stronger relationship with my co-worker, I need to focus on building trust and improving communication. This can be achieved by: 1. Investing in Social Currency: Building a stronger personal connection by actively listening, showing empathy, and taking an interest in their well-being. 2. Demonstrating Reliability and Trustworthiness: Following through on commitments, being consistent, and demonstrating integrity in all interactions. 3. Using Collaboration and Compromise: Involving my co-worker in decision-making processes, seeking their input, and finding mutually beneficial solutions to any conflicts or disagreements. 4. Being Open to Feedback and Constructive Criticism: Showing humility and a willingness to learn from my co-worker, and using feedback to improve our working relationship. By focusing on these aspects of influence, I can work towards building a stronger and more cooperative relationship with my co-worker. 6. Each of the following seven mini-case scenarios involves ethical dilemmas associated with project management. How would you respond to each situation, and why? These short case scenarios are designed to stimulate classroom discussion of ethics and project management. We recommend that the teacher avoid pronouncing “the right answer,” but rather facilitate the interchange between students. One simple way of doing this is by asking the class if everyone agrees with what was just said. If the discussion escalates to the point where different students are advocating different responses, one can conclude the discussion by having the class vote on each option. Jack Nietzche You returned from a project staffing meeting in which future project assignments were finalized. Despite your best efforts, you were unable to persuade the director of project management to promote one of your best assistants, Jack Nietzche, to a project manager position. You feel a bit guilty because you dangled the prospect of this promotion to motivate Jack. Jack responded by putting in extra hours to ensure that his segments of the project were completed on time. You wonder how Jack will react to this disappointment. More importantly, you wonder how his reaction might affect your project. You have five days remaining to meet a critical deadline for a very important customer. While it won’t be easy, you believed you would be able to complete the project on time. Now you’re not so sure. Jack is halfway through completing the documentation phase, which is the last critical activity. Jack can be pretty emotional at times, and you are worried that he will blow up once he finds he didn’t get the promotion. As you return to your office, you wonder what you should do. Should you tell Jack that he isn’t going to be promoted? What should you say if he asks about whether the new assignments were made? In this scenario, it's essential to handle the situation with sensitivity and transparency. Here's how I would respond: 1. Should you tell Jack that he isn’t going to be promoted? • Yes, I would tell Jack about the outcome of the project staffing meeting. It's important to be honest with him, as he has put in extra effort under the expectation of a potential promotion. 2. What should you say if he asks about whether the new assignments were made? • If Jack asks about the new assignments, I would inform him truthfully that, despite my efforts, he was not promoted to a project manager position in the recent meeting. I would express my appreciation for his hard work and dedication to the project and assure him that his contributions are valued. 3. Offer Support and Recognition: • I would also take the opportunity to recognize Jack's exceptional performance and dedication to the project. I would assure him that his efforts have not gone unnoticed and that he remains an integral part of the team. 4. Discuss Future Opportunities: • I would discuss with Jack the reasons behind the decision and explore other opportunities for career growth and development within the organization. This could include additional training, mentoring, or the possibility of future promotion opportunities. 5. Address Project Concerns: • In light of the upcoming deadline, I would also address any concerns Jack may have about the project and reassure him that we will work together to ensure its successful completion. By being transparent and supportive, I can maintain trust and morale within the team and mitigate any potential negative impact on Jack's performance and the project's success. Sea burst Construction Project You are the project manager for the Sea burst construction project. So far the project is progressing ahead of schedule and below budget. You attribute this in part to the good working relationship you have with the carpenters, plumbers, electricians, and machine operators who work for your organization. More than once you have asked them to give 110 percent, and they have responded. One Sunday afternoon you decide to drive by the site and show it to your son. As you point out various parts of the project to your son, you discover that several pieces of valuable equipment are missing from the storage shed. When you start work again on Monday you are about to discuss this matter with a supervisor when you realize that all the missing equipment is back in the shed. What should you do? Why? As the project manager, I would address the situation as follows: 1. Investigate the Incident: • I would first investigate the incident to understand what happened. I would speak with the supervisor and the workers to find out why the equipment was removed from the storage shed without authorization and why it was returned. 2. Discuss the Issue with the Supervisor: • I would have a discussion with the supervisor to understand the circumstances behind the removal and return of the equipment. It's possible that there was a legitimate reason for the equipment being taken temporarily. 3. Reinforce Company Policies: • Regardless of the reason, I would remind the supervisor and the workers about company policies regarding the use and storage of equipment. It's important to emphasize the importance of following procedures to maintain the security and integrity of project assets. 4. Express Appreciation and Trust: • I would also express my appreciation for the quick resolution of the issue and my trust in the team. However, I would make it clear that such incidents should be avoided in the future. 5. Implement Preventive Measures: • To prevent similar incidents in the future, I would consider implementing additional security measures, such as improved access controls to the storage shed or increased monitoring of equipment. By addressing the incident promptly and transparently, I can maintain the trust and morale of the team while ensuring that project assets are protected. Additionally, reinforcing company policies and implementing preventive measures can help prevent similar incidents from occurring in the future. The Project Status Report Meeting You are driving to a project status report meeting with your client. You encountered a significant technical problem on the project that has put your project behind schedule. This is not good news because completion time is the number one priority for the project. You are confident that your team can solve the problem if they are free to give their undivided attention to it and that with hard work you can get back on schedule. You also believe if you tell the client about the problem, she will demand a meeting with your team to discuss the implications of the problem. You can also expect her to send some of her personnel to oversee the solution to the problem. These interruptions will likely further delay the project. What should you tell your client about the current status of the project? In this scenario, it's important to balance honesty and transparency with managing client expectations and minimizing project delays. Here's how I would respond: 1. What should you tell your client about the current status of the project? I would inform the client about the technical problem that has arisen and its potential impact on the project schedule. However, I would also reassure the client that my team is actively working on resolving the issue and that we are confident we can get back on track with hard work and focused attention. 2. How would you respond to each situation, and why? • Honesty and Transparency : It's essential to be honest with the client about the project's status to maintain trust and credibility. By informing the client about the technical problem, we demonstrate transparency and integrity. • Managing Expectations : While it's important to inform the client about the problem, it's also necessary to manage their expectations regarding the potential impact on the project schedule. By expressing confidence in our team's ability to resolve the issue and emphasizing our commitment to meeting the project deadline, we can help alleviate the client's concerns. • Minimizing Delays : While it's understandable that the client may want to discuss the implications of the problem and send personnel to oversee the solution, I would emphasize to the client the importance of allowing my team to focus on resolving the issue without interruptions. I would propose alternative ways to keep the client informed about the progress of the solution, such as regular status updates or conference calls, to minimize delays caused by meetings and additional oversight. By striking a balance between honesty, transparency, and managing client expectations, we can maintain the client's confidence in our ability to successfully complete the project while minimizing disruptions and delays. Gold Star LAN Project You work for a large consulting firm and were assigned to the Gold Star LAN project. Work on the project is nearly completed and your clients at Gold Star appear to be pleased with your performance. During the course of the project, changes in the original scope had to be made to accommodate specific needs of managers at Gold Star. The costs of these changes were documented as well as overhead and submitted to the centralized accounting department. They processed the information and submitted a change order bill for your signature. You are surprised to see the bill is 10 percent higher than what you submitted. You contact Jim Messina in the accounting office and ask if a mistake has been made. He curtly replies that no mistake was made and that management adjusted the bill. He recommends that you sign the document. You talk to another project manager about this and she tells you off the record that overcharging clients on change orders is common practice in your firm. Would you sign the document? Why? Why not? I would not sign the document without further investigation and clarification. Here's how I would respond to the situation: 1. Refusal to Sign the Document: • I would respectfully inform Jim Messina that I cannot sign the document until the discrepancy is clarified. I would explain that the bill is 10 percent higher than what was submitted for the change order, and I need a detailed explanation for the increase. 2. Request for Explanation: • I would ask Jim Messina to provide a breakdown of the costs and justification for the 10 percent increase. It's essential to understand why the bill was adjusted and whether the increase is justified. 3. Ethical Concerns: • I would express my concerns about overcharging the client and emphasize the importance of maintaining honesty and transparency in all client dealings. Overcharging clients is unethical and goes against the principles of integrity. 4. Escalation of the Issue: • If Jim Messina fails to provide a satisfactory explanation, I would escalate the issue to higher management within the accounting department or to the project sponsor. I would explain the situation and seek their assistance in resolving the discrepancy. 5. Discussion with the Other Project Manager: • I would also discuss the issue with the other project manager who informed me that overcharging clients is common practice in our firm. While understanding the company's practices, I would emphasize the importance of ethical behavior and the potential consequences of overcharging clients. By refusing to sign the document without clarification and justification for the increase, I can uphold ethical standards, protect the trust and relationship with the client, and ensure the integrity of the project and the consulting firm. Cape Town Bio-Tech You are responsible for installing the new Double E production line. Your team has collected estimates and used the WBS to generate a project schedule. You have confidence in the schedule and the work your team has done. You report to top management that you believe that the project will take 110 days and be completed by March 5. The news is greeted positively. In fact, the project sponsor confides that orders do not have to be shipped until April 1. You leave the meeting wondering whether you should share this information with the project team or not. In this situation, I would respond as follows: 1. Share the Information with the Project Team: • I would choose to share the information with the project team. Keeping the team informed about the new deadline allows them to adjust their planning and work accordingly. It also promotes transparency and trust within the team. 2. Reasons for Sharing the Information: • Motivation and Morale: Sharing the news that the project deadline has been extended can boost team morale and motivation. Knowing they have more time to complete the project can reduce stress and increase job satisfaction. • Improved Planning: With the new deadline in mind, the team can reassess their schedules and priorities. They can plan their work more effectively, allocate resources efficiently, and ensure that quality is maintained. • Transparency and Trust: Keeping the team informed about changes in project deadlines fosters a culture of transparency and trust. It shows that the project manager values open communication and respects the team's contributions to the project. 3. Team Collaboration: • By involving the team in the decision-making process, they will feel more engaged and committed to the project's success. They may even come up with innovative ideas or solutions to further improve the project's outcome. In summary, sharing the information about the extended deadline with the project team is the best approach. It promotes transparency, improves planning, boosts team morale, and fosters a culture of trust and collaboration within the team. Ryman Pharmaceuticals You are a test engineer on the Bridge project at Ryman Pharmaceuticals in Nashville, Tennessee. You have just completed conductivity tests of a new electrochemical compound. The results exceeded expectations. This new compound should revolutionize the industry. You are wondering whether to call your stockbroker and ask her to buy $20,000 worth of Ryman stock before everyone else finds out about the results. What would you do and why? Assuming you do not want to break the law, you should not contact your broker. If you did buy stock you would be engaging in illegal insider trader and subject to prosecution. Illegal inside trading is the buying or selling of a security by insiders who possess material that is still not public. In this case the material is the successful test results. It is a common misconception that only directors and upper management can be convicted of insider trading. Anybody who has material and non-public information can commit such an act. This means that nearly anybody – including brokers, family, friends, and employees – can be considered an insider. Another misconception is that inside trading involves only exorbitant sums of money. The widely publicized Martha Stewart case involved less than $50,000. Princeton Landing You are managing the renovation of the Old Princeton Landing Bar and Grill. The project is on schedule despite receiving a late shipment of paint. The paint was supposed to arrive on 1/30, but instead arrived on 2/1. The assistant store manager apologizes profusely for the delay and asks if you would be willing to sign the acceptance form and backdate it to 1/30. He says he won’t qualify for a bonus that he has worked hard to meet for the past month if the shipment is reported late. He promises to make it up to you on future projects. What would you do and why? In this situation, it's important to uphold honesty and integrity, even if it means someone may miss out on a bonus. Here's how I would respond: 1. Refusal to Backdate the Acceptance Form: • I would explain to the assistant store manager that backdating the acceptance form would be dishonest and unethical. • I would emphasize the importance of integrity and adherence to company policies and procedures. • I would express empathy for his situation but clarify that I cannot compromise on ethical standards. 2. Exploring Alternatives: • Instead of backdating the acceptance form, I would suggest exploring alternative solutions to address the situation: • I would contact the supplier to understand the reason for the delay and explore whether any compensation or remedies are available. • I would document the late shipment accurately, including the actual date of receipt, to ensure transparency and accuracy in project records. 3. Maintaining Professionalism: • While empathizing with the assistant store manager's situation, I would maintain a professional stance and focus on doing what is right for the project and the company. • I would assure him that his efforts and hard work are appreciated, but compromising on integrity is not an option. 4. Long-term Relationship: • I would reassure the assistant store manager that his bonus should not be affected by a single incident, and his overall performance would be taken into account. • I would emphasize the importance of building a long-term professional relationship based on trust and integrity. Therefore, I would not agree to backdate the acceptance form and would handle the situation with honesty, integrity, and professionalism. Case 10.1 The Blue Sky Project Garth Hudson was a 29-year-old graduate of Eastern State University (ESU) with a B.S. degree in management information systems. After graduation he worked for seven years at Bluegrass Systems in Louisville, Kentucky. While at ESU he worked part time for an oceanography professor, Ahmet Green, creating a customized database for a research project he was conducting. Green was recently appointed director of Eastern Oceanography Institute (EOI), and Hudson was confident that this prior experience was instrumental in his getting the job as information services (IS) director at the Institute. Although he took a significant pay cut, he jumped at the opportunity to return to his alma mater. His job at Bluegrass Systems had been very demanding. The long hours and extensive traveling had created tension in his marriage. He was looking forward to a normal job with reasonable hours. Besides, Jenna, his wife, would be busy pursuing her MBA at Eastern State University. While at Bluegrass, Hudson worked on a wide range of IS projects. He was confident that he had the requisite technical expertise to excel at his new job. (Rest of case not shown due to length.) The case illustrates the importance of building social networks within an organization. Garth Hudson appears to be technically competent, but he ignores the need to build positive relationships with project stakeholders. Conversely, his subordinate, Tom Jackson, is not as strong technically, but is skilled at developing social capital with key stakeholders. When a decision must be made as to who should be let go, Tom or Garth, Garth is blindsided by the suggestion that he is the one to be released. 1. How would you respond to the Director? This is a difficult situation with no real right or wrong answer. Whatever happens you do not want to damage your relationship with Ahmet since you are likely to need a letter of recommendation from him. In your defense you can describe the work you did and why you are needed by the Institute. You are not going to win a popularity contest with Tom Jackson, so the focus should be on what skill set is needed to manage the IT operations now that the Institute has moved to cloud computing. Here you can argue that the strong vendor relationships you have developed with Open Range is critical to maintaining a good working relationships with the cloud provider. One could also argue that what is now needed is a “Technical Champion” that can monitor changes in the industry and anticipate opportunities and potential problems that may emerge. Here you superior technical knowledge would give you an advantage over Jackson. You should acknowledge Jackson’s people’s skills were critical to implementation, but what is now needed is a more strategic focus as the rapidly developing world of cloud computing evolves. This will be a difficult sell, since your arguments are relatively abstract and Jackson contributions are more tangible. 2. What mistakes did Hudson make? Hudson ignored the socio-cultural dimension to project management. He failed to build a social network and establish social capital within the Institute. His accomplishments were rarely visible to others, and did not appear to have a direct impact on the work of scientists at the Institute. If anything he symbolized the hassle of having to change to a new system and the disruption when the system when down. Hudson needed to practice management by wandering around and build relationships with stakeholders by helping them with their work. He needed to make his behind the scenes work more visible. This would be difficult to do, but a couple of thing he could have done, is invite some key stakeholders to some of the meetings he had with professionals at Open Range so they could see the importance of his work. He also needed to take on some of the responsibilities that Tom Jackson fulfilled, and help end-users more effectively use the new system. He needed to be much more visible at work. 3. What are the lessons to be learned from this case? The case illustrates the need for a balanced socio-technical approach to managing projects. Garth has deferred the socio-cultural side of the project to Tom who works with end-users on solving problems and utilizing the new system. Garth’s focus has been on the technical back end of the project. While with few exceptions Garth has done an excellent job, his work and contributions has been invisible to others within the organization. Such is not the case for Tom Jackson, and that is why people within the Institute support his retention. You cannot simply assume that others will know the value of your work. You have to demonstrate it in ways that can be seen and understood. Case 10.2 Tom Bray Tom Bray was mulling over today’s work schedule as he looked across the bay at the storm that was rolling in. It was the second official day of the Pegasus project and now the real work was about to begin. (Rest of case not shown due to length.) This case was written to illustrate potential problems with implementing a MBWA style of managing. Tom has good intentions, but poor execution. 1. What do you think is going on at the end of this case? The workers appear to have interpreted Tom’s behavior as surveillance. Instead of seeing his attempt at MBWA as a genuine effort at establishing rapport it has created suspicion based on his early admonishment. Tom may be perceived as a cop walking the beat instead of a helpful manager. 2. What should Tom do next and why? Tom Bray should take immediate action to ensure the safety of the team and the project. Here's what he should do next: 1. Assess the Situation: • Tom should closely monitor the storm's progression and assess its severity. He should consider factors such as wind speed, rainfall intensity, and any other potential hazards associated with the storm. 2. Communicate with the Team: • Tom should promptly inform the project team about the approaching storm and the potential impact it may have on the project schedule and activities. • He should ensure that everyone is aware of the situation and understands the necessary safety precautions. 3. Implement Safety Measures: • Tom should implement safety measures to protect the team and project assets. This may include securing equipment, temporary suspension of outdoor activities, and evacuation if necessary. • He should ensure that all team members are in a safe location and provide guidance on how to stay safe during the storm. 4. Review Project Plan: • Tom should review the project plan and assess the potential impact of the storm on the project timeline and deliverables. • He should identify any critical activities that may be affected by the storm and develop contingency plans to mitigate any delays. 5. Stay Informed: • Tom should stay informed about weather updates and any changes in the storm's intensity or trajectory. • He should remain vigilant and ready to take further action as necessary to ensure the safety of the team and project. By taking these steps, Tom Bray can effectively manage the impact of the storm on the Pegasus project, ensure the safety of the team, and minimize any potential disruptions to the project schedule. 3. What can be learned from this case? You have to be careful initiating MBWA. Instead of catching your people doing something wrong you need to begin by being helpful and catching your people doing something right. Over time as you establish positive social credit with your team you can be more directed in your interventions. Case 10.3 Cerberus Corporation Cerberus is a successful producer of specialty chemicals. It operates nine large campus sites in the United States, with a number of different business units on each site. These business units operate independently, with direct reporting to corporate headquarters. Site functions such as safety, environmental, and facilities management report to a host organization—typically the business unit that is the largest user of their services. (Rest of case not shown due to length.) This case illustrates the conflict that can arise between a project team and its stakeholders. 1. If you were Steele, what would you do? Some students may feel that Susan Steele should stand her ground and attempt to convince Jon Wood to change his mind. However, this is an emotionally charged situation, on the verge of turning into a shouting match. Susan needs to acknowledge Jon’s concerns about money and restore civility if she has any hope of depolarizing the situation. Possible paths forward include: Convincing Jon to buy new corporate standard file cabinets – this seems unlikely. Locating excess corporate standard file cabinets from another location to substitute for buying new ones. Alternatively, locating additional funding to pay for new cabinets – this seems unlikely. Escalating the conflict to the two general managers – this may be seen as an admission of failure, and may be considered a nuisance by the general managers. Allowing the non-standard file cabinets to move – this raises the issue of aesthetics. The cabinets are not corporate standard, but they are nice-looking, and there is no ergonomic issue. Did the project team go too far in their mandate that only corporate standard furniture would be moved? This leads to the second question. 2. What, if anything, could Steele have done differently to avoid this problem? Project scope. Much of the difficulty with this situation traces back to the project scope. Workstation ergonomics is clearly in the intended scope, and all the business units responded to the ergonomic survey. Moving to corporate standard workstations would be easily defensible and, if necessary, escalation to the general managers would be a viable alternative. However, forcing replacement of all furniture (file cabinets, bookcases, wastebaskets, etc.) to the corporate standard is a question of aesthetics, and could be seen as scope creep. Susan and her team decided this, and got approval from Tom Stern, without consulting with the business units. Stakeholder involvement. Susan’s team was composed of people from site functions (safety, facilities, and accounting), with no representation from the business units. This is particularly important since the individual business units are expected to incur the expense. The business units were never consulted on the replacement of all furniture to corporate standard. Risk identification. The failure of the project team to anticipate resistance to replacing furniture is a major oversight. Good risk identification could have led to tighter definition of scope, better stakeholder involvement, and/or alternative funding. 3. What could the management of Cerberus do to more effectively manage situations like this? To more effectively manage situations like the one described in the case at Cerberus Corporation, management could implement the following strategies: 1. Establish Clear Communication Channels: • Ensure that there are clear communication channels between project teams and stakeholders across different business units and site functions. • Implement regular project status meetings, progress reports, and updates to keep all stakeholders informed. 2. Create a Cross-Functional Governance Structure: • Establish a cross-functional governance structure that includes representatives from different business units and site functions. • This governance structure should facilitate collaboration, decision-making, and problem-solving across the organization. 3. Implement Stakeholder Engagement Strategies: • Develop strategies to engage stakeholders early in the project lifecycle. • Conduct needs assessments to identify the specific requirements and expectations of each stakeholder group. • Involve stakeholders in project planning, decision-making, and risk management processes. 4. Provide Training and Education: • Offer training and education programs to project managers and team members on stakeholder management and communication skills. • Ensure that project managers understand the importance of building positive relationships with stakeholders and managing conflicts effectively. 5. Promote a Culture of Collaboration and Transparency: • Foster a culture of collaboration, openness, and transparency within the organization. • Encourage cross-functional teamwork and information sharing to break down silos and improve communication. 6. Establish a Conflict Resolution Mechanism: • Develop a formal process for resolving conflicts and addressing issues that arise during projects. • Ensure that there is a designated individual or team responsible for managing conflicts and facilitating resolution. By implementing these strategies, Cerberus Corporation can more effectively manage situations involving conflicts between project teams and stakeholders, promote collaboration and communication across the organization, and improve overall project success. Solution Manual for Project Management: The Managerial Process Erik Larson, Clifford F. Gray 9781259666094, 9780078096594

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