Chapter 3: The Project Manager Presented by: Jasim Alnahas INEN 261: Week 3 Chapter 3: The Project Manager Presented by: Jasim Alnahas

Chapter Learning Outcomes If you complete the given assignments for this chapter you will: Understand more on Functional and Project Organization. Understand the role and importance of Project Managers. 6-2

The Project Manager The project manager can be chosen and installed as soon as the project is selected for funding This simplifies several start up activities The project manager can be chosen later This makes things difficult Senior management briefs the project manager Project manager begins with a budget and schedule As people are added these are refined 6-3 Source: Meridith, J.R., and Mantel, S.K. Jr., Project Management, A Managerial Approach, Eight Edition, Wiley & Sons Inc., 2012

Both Functional and Project Organization requires Management People are extracted from the functional organization to work on projects The enterprise is organized around functions or disciplines such as: Engineering Finance Legal People 6-4

Functional Management Figure 3-1 6-5 Source: Meridith, J.R., and Mantel, S.K. Jr., Project Management, A Managerial Approach, Eight Edition, Wiley & Sons Inc., 2012

Functional Management Continued Department heads are usually functional specialists They have the required technical skills to evaluate all members of their organization Functional managers: Decide who performs each task Decide how the task is performed Exercise a great deal of control over every aspect of the work that gets performed within their area 6-6 Source: Meridith, J.R., and Mantel, S.K. Jr., Project Management, A Managerial Approach, Eight Edition, Wiley & Sons Inc., 2012

Functional vs. Project Organizational Charts Functional Organization VP Engineering Mechanical Engineering Department Manager Electrical Engineering Department Manager Structural Engineering Department Manager ---- Sr. Mechanical Engrs ---- Sr. Electrical Engrs ---- Sr. Structural Engrs ---- Mechanical Engrs ---- Electrical Engrs ---- Structural Engrs ---- Asst. Mechanical Engrs ---- Asst. Electrical Engrs ---- Asst. Structural Engrs 6-7

Project Management Figure 3-2 6-8 Source: Meridith, J.R., and Mantel, S.K. Jr., Project Management, A Managerial Approach, Eight Edition, Wiley & Sons Inc., 2012

Project Management Continued Project managers are usually generalists It would be very unusual for a project manager to have all the technical skills that are used on their projects Project managers: Rarely decide who performs each task Lack the technical skills to evaluate much of the work performed on a particular project Exercise control very little over most aspects of the work that gets performed on the project 6-9 Source: Meridith, J.R., and Mantel, S.K. Jr., Project Management, A Managerial Approach, Eight Edition, Wiley & Sons Inc., 2012

Functional vs. Project Organizational Charts Manager Access System Design Landside Airside ---- Architects ---- Architects ---- Traffic Engrs ---- Mechanical Engrs ---- Electrical Engrs ---- Structural Engrs ---- Structural Engrs ---- Mechanical Engrs ---- Highway Engrs ---- Geotechnical Engrs ---- Electrical Engrs ---- Structural Engrs 6-10

The Functional Manager vs. The Project Manager Functional managers are usually specialists, analytically oriented and they know the details of each operation for which they are responsible Project managers must be generalists that can oversee many functional areas and have the ability to put the pieces of a project together to form a coherent whole 6-11

The Functional Organization Managers familiar with the analytical methods of his discipline Can directly and technically supervise 6-12

The Project Organization Project Manager is a facilitator and generalist Takes a “systems approach” Project Manager Access System Design Landside Airside 6-13

Where do these people come from? Functional managers start at the bottom of these functional chains and are promoted based on technical ability and managerial skills Project managers usually plucked out of the same functional structures on the basis of their “systems thinking” and communications skills Formalized education is usually functional in nature and that continues with “on the job training” Project manager training is a relatively new idea but is becoming more and more popular and desired. 6-14

Project Management Career Paths 1st Track: Start as a project team member Projects have an organization to them – you gain responsibility in managing pieces of the project 2nd Track: Some organizations use shadow or assistant Project Managers Fully responsible for first small, then larger projects May transition to General Management career track or Mega-Project track (Seldom back to a technical track) 3rd Track: Large Engineering Organizations often have a technical track Not strongly managerial in nature Compensation, value and status dependant upon technical knowledge to the organization 6-15

AT&T Project Management Career Paths Program Manager Project Manager Manage Projects > $25 Million Small Project Manager Manage $3-$25 Million Projects 6 - 12 months Site Manager Manage $1-$3 Million Projects 6 -18 months Cost Analysis/ Schedule Engineer Manage large site 6 months Trainee Project Team Member Learn about Project management TIME 6-16

What is this thing called “Systems Thinking” What is this thing called “Systems Thinking”? (If Project Managers are supposed to use it) The recognition that processes and components are linked together through inputs and outputs and that they are dependant upon each other to form some useful function within an environment. The results of the project have to fit purposefully into the organization that commissioned it and within the larger environment that it will function within. Project Managers are “Synthesizers” 6-17

Project Managers put the pieces together Functional Managers are experts at analyzing the pieces 6-18

What does a Project Manager Manage? Project manager is largely responsible for organizing, staffing, budgeting, directing, planning, and controlling the project. Questions faced by the project manager: 1. What needs to be done (performance)? 2. When must it be done (time)? 3. What are the resources required for this project and where do I get them (cost)? The three things discussed in our planning session 6-19

Who is the Project Manager responsible to as he/she manages a project? Three broad and sometimes conflicting areas of responsibility: To the parent organization (his employer) To the customer who commissioned the project To the project team members 6-20

Responsibilities to the Parent Organization Conservation of resources (Don’t spend money that you don’t have to.) Timely and accurate project communications Careful, competent management of the project (Get the Project done!) Protect the firm from high risk (Some projects can sink the organization.) Accurate reporting of project status with regard to budget and schedule No Surprises = Excellent Project Management 6-21

Responsibilities to the Customer To deliver the project product which was asked for and promised Resolve conflict between competing project interests Ensure performance, budgets, and deadlines are met Fairness, respect, honesty 6-22

Responsibilities to the Project Team To provide a work environment where they can excel and grow Challenging work is highly valued by professionals Fairness, respect, honesty An experience which will be career enhancing Generally what any supervisor should be doing … however in a project this relationship is just “temporary” 6-23

Frequently the PM has no “Direct Subordinates”, but has several people “working for him” on the project team The project team members are drawn from the functional organization They are loaned to the project during the temporary period of project performance Despite this lack of formalized “boss/subordinate” relationship, the PM needs to provide supervision which will both get the project done and grow the people who are working on the project 6-24

Special Demands falling on a Project Manager (each highlighted in subsequent slides) Acquiring adequate resources Acquiring and motivating personnel Dealing with obstacles Making project tradeoffs Failure and the Risk/Fear of failure Communicating Broadly 6-25

Acquiring Adequate Resources The PM has to make sure he has the resources to complete the project (on time, on budget, to the agreed upon level of quality) Resources initially budgeted for projects are frequently insufficient Happens because estimates get cut as they are reviewed by higher level managers The PM must “scramble, elicit aid, work late, wheedle, threaten etc.” Sometimes resource trade-offs are required (better people can offset poor equipment Subcontracting may be an option May require spirited debates with functional management staff 6-26

Getting to a “Win-Win” with a functional manager Discuss the value of Project Success as benefiting the entire Corporation Discuss how a Project Success will benefit the functional manager directly Improve utilization Provide experience for returning staff Attempt to understand the threats the Project poses to the functional manager Can they be mitigated? 6-27

Acquiring and Motivating People A major challenge for the project manager is that most people required for a project must be “borrowed”. (More negotiations with functional managers) The people the PM wants and needs are the same people the FM wants and needs Projects can have more glamour or offer an escape making the FM jealous Often, the functional manager retains control of personnel evaluation, salary, and promotion for those people lent out to projects If this is the case the project only offers challenging work The good news in that is that professionals are motivated by challenging work 6-28

Characteristics of an effective team members High quality technical skills You need to get the work done Political sensitivity Teams report in two directions (temporarily) Strong problem orientation Put the discipline to work on the problem Strong goal orientation People have to do whatever it takes High self-esteem Comfortable with success and failure 6-29

Every Project has its Obstacles (problems). What are they? At the beginning the obstacles are resource related My goodness, how are we ever going to get it done? In the middle they are tradeoff related How do we adjust to get to the target of what, when and how much? At project completion problems involve last minute schedule and technical changes and team transition Can we tweak this and get it done quicker? What will we do when we are done? What I need is a list of specific unknown problems that we will encounter! 6-30

Making Project Goal Trade-offs Trading Project cost, schedule and performance (scope) Reducing the project performance (scope) may reduce project schedule and project cost Reducing project schedule and scope will reduce project cost Reducing project schedule with scope the same may increase costs Reducing project cost without reducing scope may increase schedule 6-31

Making Project Goal Trade-offs (contd.) Relative importance of project objectives for each stage of the project life cycle as presented by the author Do you buy it? 6-32

Avoiding Project Failure Two types of Projects fail for different reasons Classifying your project may help to avoid failure Type 1 – Well understood, simple, we have done them before Type 2 – Not well understood, complicated, many unknowns Both can fail 6-33

Why would Type 1 fail? Type 1 - these projects are generally well-understood, routine projects Appear simple at the beginning of the project Good plan But something happens to take us off the plan and we never pick it up The project fails to meet cost or schedule targets because we have not modified the plan to get back on track We have done it so many times that nothing can go wrong (but it did!) 6-34

Type 2 fails for different reasons Type 2 - these are not well understood, and there may be considerable uncertainty about specifically what must be done Many difficulties early in the life of the project (What are we supposed to do? Fuzzy plans lead to fuzzy and failed performance The Project Team doesn’t know what to do The client doesn’t know what to expect In our rush to get something done we neglect to agree on what is needed 6-35

Avoiding these types of failures The execution strategy must include frequent checks on adherence to schedule and budget and a clear definition of who is responsible for replanning the project if it gets off track Type 2 The project planning must have a clear milestone event where the Project Team and the client demonstrate understanding on the “what” of the project 6-36

Communication and the Project Manager Most of the project manager’s time is spent communicating with the many groups interested in the project Repeat with emphasis 6-37

What is communicated? Considerable time must be spent selling, reselling, and explaining the project What are we doing? Why are we doing it? The relevance of the project will be tested throughout the project life cycle 6-38

Who does the Project Manager communicate with? Clients Members of the project team Functional departments Top management of the performing organization and top management of the client organization 6-39

To be an effective communicator the PM must understand and be able to convey to others: Why the project exists The consequences of project failure What it takes to get and keep top management support How to develop and use an information network When and how to be flexible Hold them or fold them Negotiations 6-40

What kinds of people are promoted into Project Manager positions Strong technical background (gives credibility with the team and functional managers) Results oriented manager Maturity Availability Someone on good terms with senior executives (more credibility) A person who can keep the project team performing (more than keeping them happy) Experience working in several different departments (credibility) 6-41

Key Traits of Successful Project Manager Someone who has the desire to complete the project Someone who has the skills and temperament to get the project completed 6-42

Project Managers must have: Credibility Sensitivity Leadership and Management ability A tolerance for stress It is not enough to possess these things – You need to be perceived by others to possess these things. We will touch on each of these areas 6-43

Credibility is a big part of PM success Technical credibility - perceived by the client, senior executives, the functional departments, and the project team as possessing sufficient technical knowledge to direct the project Administrative credibility - keeping the project on schedule and within costs and making sure reports are accurate and timely. Must also make sure the project team has material, equipment, and labor when needed. 6-44 Chapter 3-18

Sensitivity (Comes with Maturity) Understanding the organization’s political structure Recognizes interpersonal conflict on the project team or between team members, parent organization, and the client(s) Does not avoid conflict, but confronts it and deals with it before it escalates Keeps team members “cool” (productive) Has “technical sensitivity” - ability to sense when team members may try to “sweep things under the rug” 6-45

Leadership Ability Leadership has been defined as: “interpersonal influence, exercised in situation and directed through the communication process, toward the attainment of a specified goal or goals.” Leaders demonstrate: enthusiasm optimism energy tenacity courage personal maturity ethical behavior 6-46

Project Managers are subjected to stress caused by: Absence of a consistent set of procedures and techniques with which to manage their projects Having too much to do A high need to achieve which is consistently thwarted by the project demands A changing parent organization This course is primarily aimed at #1. 6-47

Ethical Issues confronted on Projects “wired” bids and contracts (the winner has been predetermined) “buy-in” (bidding low with the intention of cutting corners or forcing subsequent contract changes) “kickbacks” “covering” for team members (group cohesiveness) taking “shortcuts” (to meet deadlines or budgets) using marginal (substandard) materials compromising on safety violating standards consultant (e.g., auditors) loyalties (to employer or to client or to public) 6-48

The impact of culture on the project and the Project Manager National culture affects: The value of time The value of relationships The value of trust The status of engineering disciplines Corporate culture affects Commitment to the project Status and credibility of the Project Manager Status and credibility of the disciplines on the project The successful PM can sense the culture he is working within and adjust accordingly Our course in Global Engineering Management treats some of the National Culture issues 6-49

Impact of Institutional Environments In general systems theory, the environment of a system is defined as everything outside the system that receives outputs from it or delivers inputs to it Project managers must consider the following environments and how they may impact a project: Socioeconomic environment Legal environment The business cycle as an environment Technological environment 6-50

Summary of Chapter 3 Projects are focused on problems not disciplines Project success depends on support of top management Project Managers are generalists, not specialists Project Managers have responsibilities to: The Parent Organization The Project Team The Project Success Project Managers get things done Project Managers communicate Project Managers appreciate how their project fits within other environments and contexts 6-51