CHAPTER TEN

Leadership:
Being an Effective
Project Manager

McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All
rights reserved.
Where
Where We
We Are
Are Now
Now

10–2
 Managing
Managing versus
versus Leading
Leading aa Project
Project
• Managing—coping with • Leading—coping with
complexity change
– Formulate plans and – Recognize the need to
objectives change to keep the project
– Monitor results on track

– Take corrective action – Initiate change

– Expedite activities – Provide direction and

motivation
– Solve technical problems
– Innovate and adapt as
– Serve as peacemaker necessary
– Make tradeoffs among – Integrate assigned
time, costs, and project resources
scope

10–3
 Managing
Managing versus
versus Leading
Leading aa Project
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.

10–4
 Functional
Functional versus
versus Project
Project Managers
Managers
Functional Managers Project Mangers
• Department heads are • Project managers are usually
usually functional specialists generalists
• They have the technical • It would be very unusual for a
skills to evaluate all project manager to have all
members of their the technical skills that are
organization used on their projects
• They decide who performs
each task and, to a certain • The project manager rarely
degree, how the task is decides who performs each
performed task and lacks the technical
• That is, they exercise a skills to evaluate much of the
great deal of control over work performed on the project
every aspect of the work
that gets performed within
their area

10–5
 Managing
Managing Project
Project Stakeholders
Stakeholders
• Project Management Maxims:
– You can’t do it all and get it all done
• Projects usually involve a vast web of relationships.
– Hands-on work is not the same as leading.
• More pressure and more involvement can reduce
your effectiveness as a leader.
– What’s important to you likely isn’t as important
to someone else
• Different groups have different stakes (responsibilities,
agendas, and priorities) in the outcome of a project.
– Remember: project management is tough, exciting,
and rewarding—endeavor to persevere.

10–6
 Managing
Managing Project
Project Stakeholders
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.
10–7
 Managing
Managing Project
Project Stakeholders
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

10–8
Network
Network of
of Stakeholders
Stakeholders

FIGURE 10.1

10–9
• To be effective , a project manager must understand how
stake holders can affect the project and develop methods
for managing the dependency. The nature of these
dependency is identified:
• The project team : manages and completes project work .How
can their involvement on the project will contribute to their
personal goals and aspirations .
• Project managers : naturally compete with each other for
resources and 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 minor or major role toward project
success
10–10
• Top management : approves funding of the project and
establishes priorities with in organization .
• Project sponsors : champion the project and use their
influence to gain approval of the project .
• Contractors: may do all the actual work , in some cases , with
the project team merely coordinating their contributions . In
other cases , they are responsible for ancillary segments of
the project scope .
• 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.

10–11
 Influence
Influence as
as Exchange
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.
• Influence “Currencies” (Cohen and Bradford)
– Cooperative relationships are built on the exchange
of organizational “currencies” (favors).

10–12
 Commonly
Commonly Traded
Traded Organizational
Organizational Currencies
Currencies
Task-related currencies
Resources Lending or giving money, budget increases, personnel, etc.
Assistance 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.
Position-related currencies
Advancement 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/ Providing opportunities for linking with others.
contacts

Source: Adapted from A. R. Cohen and David L. Bradford, Influence without Authority TABLE 10.1
(New York: John Wiley & Sons, 1990). Reprinted by permission of John Wiley & Sons, Inc.
10–13
 Organizational
Organizational Currencies
Currencies (cont’d)
(cont’d)
Inspiration-related currencies
Vision Being involved in a task that has larger significance
for the unit, organization, customer, or society.
Excellence 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.
Personal support Giving personal and emotional backing.
Understanding Listening to others’ concerns and issues.
Personal-related currencies
Challenge/learning Sharing tasks that increase skills and abilities.
Ownership/involvement Letting others have ownership and influence.
Gratitude Expressing appreciation.

Source: Adapted from A. R. Cohen and David L. Bradford, Influence without Authority TABLE 10.1 (cont’d)
(New York: John Wiley & Sons, 1990). Reprinted by permission of John Wiley & Sons, Inc.
10–14
 Social
Social Network
Network Building
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?

10–15
Dependencies
Dependenciesfor
forFinancial
FinancialSoftware
SoftwareInstallation
InstallationProject
Project

FIGURE 10.2

10–16
 Management
Management by
by Wandering
Wandering Around
Around
• Management by Wandering Around (MBWA)
– Involves managers spending the majority of their time
in face-to-face interactions with employees building
cooperative relationships.
• Characteristics of Effective Project Managers
– Initiate contact with key players.
– Anticipate potential problems.
– Provide encouragement.
– Reinforce the objectives and vision of the project.
– Intervene to resolve conflicts and prevent stalemates.

10–17
 Managing
Managing Upward
Upward Relations
Relations
• Project Success = Top Management Support
– Appropriate budgets
– Responsiveness to unexpected needs
– A clear signal to the organization
of the importance of cooperation
• Motivating the Project Team
– Influence top management in favor of the team:
• Rescind unreasonable demands
• Provide additional resources
• Recognize the accomplishments of team members

10–18
The
The Significance
Significance of
of aa Project
Project Sponsor
Sponsor

FIGURE 10.3

10–19
Leading
Leading by
by Example
Example

FIGURE 10.4

10–20
Six
Six Aspect
Aspect of
of leading
leading by
by example
example are
are discussed
discussed
- Priorities :Action speak louder than words. Subordinates and
others discern manager’s priorities by how they spend their
time
- Urgency : The project manager use these tools like a
metronome to pick up the beat of the project
- Problem Solving : How project managers respond to problems
sets the tone for how other tackle problems.
- Cooperation : How project managers act toward outsiders
influences how team members interact with outsiders
- Standards of performance they establish a high standards for
project performance through the quality of their daily
interactions
10–21
• Ethics : How other respond to ethical dilemmas that arise
in the course of a project will be influenced by how the
project manager has responded to similar dilemmas.

10–22
 Ethics
Ethics and
and Project
Project Management
Management
• Ethical Dilemmas
– Situations where it is difficult 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

10–23
 Contradictions
Contradictions of
of Project
Project Management
Management
• Innovate and maintain stability. Project managers
have to put out fires , restore order, and get the project
back on track.
• See the big picture while getting your hands dirty.
Project managers have to see the big picture and how
their project fits within the larger strategy
• Encourage individuals but stress the team.
• Hands-off/Hands-on.
• Flexible but firm.
• Team versus organizational loyalties.

10–24
 Effective
Effective project
project managers
managers (( counted)
counted)
• Encourage individuals but stress the team .Project
managers have to motivate.cajole,and entice individual
performers while at the same time maintaining team
work
• Hands- off/ Hands- on. Project managers have to
intervene stalemates, solve technical problems, and insist
on different approaches
• Flexible but firm . Project managers have to be adaptable
and responsive to events and outcomes that occur on the
project
• Team versus organizational loyalties . Project managers
need to forge a unified project team whose members
stimulate one another to extraordinary performance
10–25
 Qualities
Qualities of
of an
an Effective
Effective Project
Project Manager
Manager
1. Systems thinker
2. Personal integrity
3. Proactive
4. High emotional intelligence (EQ).
5. General business perspective
6. Effective time management
7. Skillful politician
8. Optimist

10–26
 Qualities
Qualities of
of an
an Effective
Effective Project
Project Manager
Manager

• Systems thinkers . Project managers must be able to take a

holistic rather than reductionist approach to project
• Personal integrity . Before you can lead and manage others ,
you have to be able to lead and manage yourself. Who you
are ? What you stand for , and how you should behave.
• Proactive . Good project managers tack action before it is
needed to prevent small concerns from escalating in to
major problem
• High emotional intelligence(EQ). Project management is not
for the meek

10–27
• General business perspective. Because the primary role of
a project manager is to integrate the contribution of
different business and technical disciplines. It is important
that a manager have a general grapes of business
fundamentals
• Effective time management . Time is a manager’s scarcest
resources . Project managers have to be able to budget
their time wisely and quickly adjust their priorities
• Skillful politician. Project managers have to be able to
deal effectively with a wide range of people and win their
support and endorsement of their project
• Optimist. Project managers have to display a can- do
attitude they have to be able to find rays of sunlight in a
dismal day and keep people‘ attention postive .

10–28
 Suggestions
Suggestions for
for Project
Project Managers
Managers
• Build relationships
before you need them.
• Trust is sustained
through frequent
face-to-face contact.
• Realize that “what
goes around comes
around.”

10–29
 4.
4. Making
Making Project
Project Goal
Goal Trade-Offs
Trade-Offs
• Trade-offs involve…
1. Cost
2. Time
3. Performance
• Multiple projects
• Project goals and organizational goals
• Project, firm, career
 5.
5. Failure
Failure and
and the
the Risk
Risk and
and Fear
Fear of
of Failure
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
 6.
6. Breadth
Breadth of
of Communication
Communication
1. Why the project exists
2. Some projects fail
3. Top management support needed
4. Information network needed
5. Must be flexible
 Key
Key Terms
Terms

Emotional intelligence (EQ) Proactive

Inspiration-related currencies Project sponsor
Law of reciprocity Relationship-related
Leading by example currencies
Management by wandering Social network building
around (MBWA) Stakeholder
Personal-related currencies Systems thinking
Position-related currencies Task-related currencies

10–33