pm strategic issues lecture 7 2008.pdf

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Project Management Project Management Strategic Issues Strategic Issues Politics, Power and Influence Politics, Power and Influence Andrew Brown Andrew Brown EC2.15 EC2.15

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  • Project Management Project Management Strategic IssuesStrategic Issues

    Politics, Power and InfluencePolitics, Power and Influence

    Andrew BrownAndrew Brown

    EC2.15EC2.15

  • PM Power Politics & PM Power Politics & InfluenceInfluence

    Further reading for this subject:Further reading for this subject:

    Peter Morris:Peter Morris: The management of projectsThe management of projects, Thomas Telford. , Thomas Telford. Chapter 8Chapter 8..

    Peter Fewings:Peter Fewings: Construction Project ManagementConstruction Project Management-- An An integrated approachintegrated approach, Taylor and Francis: , Taylor and Francis:

    Chapter 6Chapter 6

    Hans Themhain et al:Hans Themhain et al: Influence styles of Project Managers: Influence styles of Project Managers: Some Some project performance correlates. (available at: project performance correlates. (available at: http://www.jstor.org/view/00014273/ap010008/01ahttp://www.jstor.org/view/00014273/ap010008/01a

    00020/000020/0

  • Problems with project Problems with project and PM performanceand PM performance

    RevisionRevision-- where I left things several weeks ago..where I left things several weeks ago..

  • PM Politics, Power and PM Politics, Power and InfluenceInfluence

    This afternoonThis afternoon

    Politics !!Politics !!-- Good or Bad?Good or Bad?

    The nature of project organisation and organisational strategy.The nature of project organisation and organisational strategy.

    Project Management authority and the relationship with project Project Management authority and the relationship with project organisation.organisation.

    The need to lead the team and pay attention to all those involved.The need to lead the team and pay attention to all those involved.

    Good PMGood PM depends on depends on Excellent LeadershipExcellent Leadership..

  • PoliticsPolitics-- Good or Bad?Good or Bad?

    Discussion Question:Discussion Question:--

    Debate these questions in small Debate these questions in small groups.groups.groups.groups.

    Why might the discipline of PM be Why might the discipline of PM be concerned with the subject of politicsconcerned with the subject of politics??

    How important is the role of politics in How important is the role of politics in effective project management?effective project management?

  • Politics in PMPolitics in PM-- Good or Bad?Good or Bad?

    When the politics word is mentioned, the tendency is to think of Government and When the politics word is mentioned, the tendency is to think of Government and political partiespolitical parties-- at present, these dont necessarily conjure strongly positive at present, these dont necessarily conjure strongly positive reactions. Alternatively, you might associate the term with office politics.reactions. Alternatively, you might associate the term with office politics.

    Thinking of Politics in connection with PM, the focus is not on Government or Thinking of Politics in connection with PM, the focus is not on Government or political affiliation or belief, or on corruption! But rather on how leaders must seek political affiliation or belief, or on corruption! But rather on how leaders must seek to influence individuals and organisations and win support for their goals.to influence individuals and organisations and win support for their goals.

    There are very strong parallels that can be drawn between, Prime Ministers (or There are very strong parallels that can be drawn between, Prime Ministers (or Presidents) and/or Military Leaders (ie. Generals etc.) and Project Managers.Presidents) and/or Military Leaders (ie. Generals etc.) and Project Managers.

    For example, in a very true sense, Gordon Brown is a Project Manager..For example, in a very true sense, Gordon Brown is a Project Manager..

    The project he leads is immensely complexThe project he leads is immensely complex Whether he is a good PM or a bad PM is an entirely different matter!!Whether he is a good PM or a bad PM is an entirely different matter!!

    In construction, the project may be less extensive and overwhelming than in a In construction, the project may be less extensive and overwhelming than in a Government scenario and the PMs sphere of influence may be drastically smaller Government scenario and the PMs sphere of influence may be drastically smaller than that of a Prime Minister (even if both titles shorten to PM!) BUT, to be than that of a Prime Minister (even if both titles shorten to PM!) BUT, to be effective, the PM must be the President, Prime Minister and Leader of their effective, the PM must be the President, Prime Minister and Leader of their project..project..

  • Politics in PMPolitics in PM

    When we think of politics in PM, we are concerned with the When we think of politics in PM, we are concerned with the techniques and skills that the PM must draw upon to:techniques and skills that the PM must draw upon to:--

    InfluenceInfluence MotivateMotivate PersuadePersuade

    ManipulateManipulate ManipulateManipulate Drive; and Drive; and LEADLEAD....

    .. all project participants (and others who can interfere with the .. all project participants (and others who can interfere with the project) towards the successful realisation of project outcomes.project) towards the successful realisation of project outcomes.

    In a very real sense, an effective project manager must be a skilled In a very real sense, an effective project manager must be a skilled politician in terms of influence and relational skills with others.politician in terms of influence and relational skills with others.

  • Organisational designOrganisational design

    We all know that the construction project depends upon a We all know that the construction project depends upon a highly specialised and differentiated set of skills and highly specialised and differentiated set of skills and professions.professions.

    While there is such a high degree of specialisation and While there is such a high degree of specialisation and differentiation amongst project contributors, the Project differentiation amongst project contributors, the Project differentiation amongst project contributors, the Project differentiation amongst project contributors, the Project depends on all of them to do what is expected of them and in depends on all of them to do what is expected of them and in many instances there are complex interdependencies between many instances there are complex interdependencies between project participants.project participants.

    Therefore, there is a need for Project Management to allow a Therefore, there is a need for Project Management to allow a project organisation to integrate all participants. project organisation to integrate all participants.

    BUT, to do this, the project manager needs to be in a position BUT, to do this, the project manager needs to be in a position of authority in the project hierarchy.of authority in the project hierarchy.

  • Organisational DesignOrganisational Design

    Classical organisational theory (with which you are Classical organisational theory (with which you are all familiar) provides a number of set approaches:all familiar) provides a number of set approaches:--

    Functional, divisional or specialisation orientated Functional, divisional or specialisation orientated Functional, divisional or specialisation orientated Functional, divisional or specialisation orientated organisations..organisations.. (vertical, span of(vertical, span of

    control orientated)control orientated)

    Matrix structures.Matrix structures. (flat or horizontal)(flat or horizontal)

    Project structures.. Project structures.. (focused on projects, not (focused on projects, not on corporate goals)on corporate goals)

  • Organisational StructuresOrganisational Structures

    Matrix

    Functional

    Specialised or

    Divisional

    Matrix

    Project

  • OrganisationOrganisation

    Problems:Problems:--

    Functional: Prevents effective communication and integrationFunctional: Prevents effective communication and integration--essential for effective PMessential for effective PM

    Matrix: Ideal PM structure but span of control can become Matrix: Ideal PM structure but span of control can become impossibly large.impossibly large.

    Conventional Procurement structures and the traditional culture Conventional Procurement structures and the traditional culture of the construction industry bring their own organisational of the construction industry bring their own organisational designs and designs and IMPOSEIMPOSE them on the project meaning that the PM them on the project meaning that the PM may end up with little actual direct influence on the may end up with little actual direct influence on the organisational structure that is in fact used.organisational structure that is in fact used.

  • Organisational DesignOrganisational Design

    The most typical form of organisational approach that is imposed on The most typical form of organisational approach that is imposed on projects carried out in the construction industry is that of the projects carried out in the construction industry is that of the seconded matrix organisationseconded matrix organisation

    Client

    Design team

    Main

    Contractor

    Specialist

    Contractor

    Directors Directors

    Consultants

    Staff Staff Staff

    PM

  • Organisational DesignOrganisational Design

    So, the problem that PM faces, in organisational design, So, the problem that PM faces, in organisational design,

    concerns the source of their authorityconcerns the source of their authority..

    Full Authority

    No Authority

    Functional Matrix Pure Project

    Levels of PM Authority

    Functional Matrix Seconded Matrix Pure Project

    0-25% 15-60% 50-90% 85-100%Role

    of Subservient Subservient Leadership & ExecutivePM or equal Direction

  • Organisational DesignOrganisational Design

    The level of authority afforded to the PM will play a major role in defining the The level of authority afforded to the PM will play a major role in defining the scope of their leadership.scope of their leadership.

    Authority and Responsibility must correspondAuthority and Responsibility must correspond

    The project organisation diffuses or distributes authority and plays a critical role in The project organisation diffuses or distributes authority and plays a critical role in either centralising (say in a Main Contractor or Architect) or decentralising either centralising (say in a Main Contractor or Architect) or decentralising either centralising (say in a Main Contractor or Architect) or decentralising either centralising (say in a Main Contractor or Architect) or decentralising authority (to the Project and to the Project Manager).authority (to the Project and to the Project Manager).

    Authority provides the power to directly instruct resources to be committed to Authority provides the power to directly instruct resources to be committed to complete necessary activities.complete necessary activities.

    The problem faced by most PMs in almost all construction project organisations is The problem faced by most PMs in almost all construction project organisations is that they are afforded relatively little that they are afforded relatively little formal formal (OR contractual OR (OR contractual OR legitimatelegitimate) ) authorityauthority..

    Therefore, the PM must be a skilled leader so that they can develop the scope of Therefore, the PM must be a skilled leader so that they can develop the scope of the the informal authorityinformal authority that they can use to motivate and build a team that can that they can use to motivate and build a team that can overcome deficiencies in organisational design caused by procurement or industry overcome deficiencies in organisational design caused by procurement or industry culture.culture.

  • LeadershipLeadership

    The PM must use leadership and political skill in order to The PM must use leadership and political skill in order to develop an effective power base, perhaps largely dependent develop an effective power base, perhaps largely dependent on informal authority (or power), to instruct and direct the on informal authority (or power), to instruct and direct the resources needed to get the project done.resources needed to get the project done.

    Leadership and political skill (or relational or influential skill) Leadership and political skill (or relational or influential skill) are critical are critical -- so that the level of informal authority and so that the level of informal authority and seniority afforded to the PM can be elevated to the status seniority afforded to the PM can be elevated to the status necessary to override cultural and procurement problems so necessary to override cultural and procurement problems so the project can be delivered successfully.the project can be delivered successfully.

  • LeadershipLeadership

    How important is leadership in How important is leadership in delivering project success?delivering project success?

    Extent of literature on the topic.Extent of literature on the topic.

    Research undertaken by Zulu (2007)Research undertaken by Zulu (2007)

    ConclusionConclusion-- Time, cost and quality performance Time, cost and quality performance are significantly influenced by the quality of PM are significantly influenced by the quality of PM leadershipleadership

  • LeadershipLeadership

    Leadership includes:Leadership includes:--

    Giving meaning and purpose to workGiving meaning and purpose to work

    Winning and empowering followersWinning and empowering followers

    Inspiring and infusing organisations with a value and ideology.Inspiring and infusing organisations with a value and ideology.

    Motivating people, both within and outside the project organisation Motivating people, both within and outside the project organisation to accept a projects goals and to work enthusiastically towards the to accept a projects goals and to work enthusiastically towards the achievement of these goals.achievement of these goals.

    Getting others to do what you want!Getting others to do what you want!

    Motivating people towards getting things done willinglyMotivating people towards getting things done willingly

  • LeadershipLeadership

    Clearly leadership qualities are going to be determined, at least in Clearly leadership qualities are going to be determined, at least in part, by the personality traits, charisma and enthusiasm of those in part, by the personality traits, charisma and enthusiasm of those in the position of a leader (as the PM must be).the position of a leader (as the PM must be).

    This means that, if Leadership is so important to PM and project This means that, if Leadership is so important to PM and project This means that, if Leadership is so important to PM and project This means that, if Leadership is so important to PM and project success, we need to ask a very serious question:success, we need to ask a very serious question:--

    Discussion QuestionDiscussion Question

    Are leaders born..or can leadership traits and skills be Are leaders born..or can leadership traits and skills be taught?taught?

  • Leadership requirementsLeadership requirements

    To be an effective leader, the PM To be an effective leader, the PM must:must:--

    Have a credible and legitimate source of Have a credible and legitimate source of influence.influence.

    Have highly developed Relational SkillsHave highly developed Relational Skills

    Have highly developed Mobilisation SkillsHave highly developed Mobilisation Skills

  • Sources of influenceSources of influence

    How can PMs influence the various How can PMs influence the various project participants towards the project participants towards the achievement of project goalsachievement of project goals..

    Discussion QuestionDiscussion Question

    WWhat devices can PMs use in order to control project hat devices can PMs use in order to control project participants so that objectives can be realised. participants so that objectives can be realised.

    Which of the devices you discuss do you would think to be the Which of the devices you discuss do you would think to be the most important for Project Managers.most important for Project Managers.

  • Sources of Leadership Sources of Leadership influenceinfluence

    Formal Authority (Legitimate Power)Formal Authority (Legitimate Power) Reward PowerReward Power Punishment Power (Coercive Power)Punishment Power (Coercive Power) Expert PowerExpert Power

    Referent PowerReferent Power Referent PowerReferent Power(Collectively, the above 5 sources are sometimes referred to (Collectively, the above 5 sources are sometimes referred to as the as the 5 power bases5 power bases and these are well established in and these are well established in literature)literature)

    (Information Power)(Information Power) (Cognitive Power)(Cognitive Power) (Emotional Persuasion)(Emotional Persuasion) (Personal Power)(Personal Power)

  • Leadership StyleLeadership Style

    Leadership Style ILeadership Style I

    (formal authority, reward and punishment (formal authority, reward and punishment

    power)power)power)power)

    Leadership Style IILeadership Style II

    (expert and referent power)(expert and referent power)

  • LeadershipLeadership

    Who does the PM need to lead?Who does the PM need to lead?

    Three main groups of project contributors need to be led Three main groups of project contributors need to be led within the project environment:within the project environment:--

    The visible team;The visible team;

    The invisible team; and,The invisible team; and,

    The stakeholder team.The stakeholder team.

    All need to be convinced of the project aims and must be led All need to be convinced of the project aims and must be led by the PM; If one group is neglected problems are likely.by the PM; If one group is neglected problems are likely.

    Organisations in the projects external environment also Organisations in the projects external environment also require to be led by the project manager. require to be led by the project manager.

  • LeadershipLeadership

    It has been said that as a Leader, A PM It has been said that as a Leader, A PM needs 360needs 360oo vision.vision.

    The PM must lead and manage in 6 The PM must lead and manage in 6 The PM must lead and manage in 6 The PM must lead and manage in 6 dimensions:dimensions:--

    UpwardsUpwards OutwardsOutwards ForwardsForwards BackwardsBackwards DownwardsDownwards InwardsInwards

  • Types of project participant that Types of project participant that the PM must pay attention to.the PM must pay attention to.

    From the visible, invisible, stakeholder teams and From the visible, invisible, stakeholder teams and from the external environment AND while managing from the external environment AND while managing most of the 6 dimensions, the PM will encounter:most of the 6 dimensions, the PM will encounter:--

    AlliesAllies

    OpponentsOpponents

    BedfellowsBedfellows

    Fence SittersFence Sitters

    AdversariesAdversaries

  • Positively influencing different Positively influencing different groups of project participants.groups of project participants.

    The PM must adopt a different political approach to The PM must adopt a different political approach to

    each type of participant and must recognise that each type of participant and must recognise that participants may change at different points in the participants may change at different points in the project life cycle.project life cycle.

    The aim is always to meet the concerns and needs of The aim is always to meet the concerns and needs of the participant while simultaneously securing the the participant while simultaneously securing the needs of the project. The PM needs to be highly needs of the project. The PM needs to be highly skilled and very political about doing this and must skilled and very political about doing this and must recognise that a very high degree of flexibility will be recognise that a very high degree of flexibility will be required.required.

  • Managing Upwards and Managing Upwards and OutwardsOutwards

    VisibilityVisibility

    PriorityPriority

    AccessibilityAccessibility

    CredibilityCredibility

  • The aim..The aim..

    The aim of the Project Manager as a leader who draws on The aim of the Project Manager as a leader who draws on authority that is afforded mostly by informal means, is to build authority that is afforded mostly by informal means, is to build an integrated project team (IPT).an integrated project team (IPT).

    Characteristics of an Integrated Project Team are:Characteristics of an Integrated Project Team are:--

    An IPT is a single team focused on a common set of goals and An IPT is a single team focused on a common set of goals and objectives for the benefit of ALL concerned.objectives for the benefit of ALL concerned.

    An IPT is so seamless that it appears to operate as if it were a An IPT is so seamless that it appears to operate as if it were a company in its own right.company in its own right.

    An IPT has no apparent boundaries and provides all participants the An IPT has no apparent boundaries and provides all participants the same opportunities to contribute and all skills can be used to same opportunities to contribute and all skills can be used to maximum effect.maximum effect.

  • ConclusionConclusion

    The political management of project contributors is essential for success.The political management of project contributors is essential for success.

    The aim is always to secure support for the project and for its objectives.The aim is always to secure support for the project and for its objectives.

    The PM must identify the range and extent of the sources of influence The PM must identify the range and extent of the sources of influence

    available to them so that they can secure an appropriate leadership position available to them so that they can secure an appropriate leadership position available to them so that they can secure an appropriate leadership position available to them so that they can secure an appropriate leadership position

    to drive the project and to direct its resources effectively.to drive the project and to direct its resources effectively.

    The PM must recognise that the project participants need to be politically The PM must recognise that the project participants need to be politically

    managed (or manipulated!) towards achieving the desired outcomes and that managed (or manipulated!) towards achieving the desired outcomes and that

    different approaches are needed dependent on how the contributor sees the different approaches are needed dependent on how the contributor sees the

    project.project.

    The PM must politically manage the employer (client), the stakeholders and The PM must politically manage the employer (client), the stakeholders and

    the external environment of the project, as well as their project peers ifthe external environment of the project, as well as their project peers if the the

    propensity for success is to be increasedpropensity for success is to be increased..