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The Impact of Culture on the successful Project Team

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1 The Impact of Culture on the successful Project Team
Projects That Work We have worked at many different organizations and business. They vary in size and most importantly in the way in which they get things done. When I would walk onto a new project I was not always sure what working at that place would be like. Some places are more formal while other more informal. Some had clearly defined project management frameworks while other’s only used project management principles on a project by project basis. Either way it was important to understand how things were done there in order to complete the project successfully. The Impact of Culture on the successful Project Team

2 Agenda | Objectives Explore Organizational Culture
Communicating in a Way that Inspires High Performance Explore Conflict Management Approaches

3 Explore Organizational Culture What is Organizational Culture?
An organization’s culture comprises collective values, goals, processes, roles, ways of communication, assumptions and attitudes that exist amongst employees throughout the organization. For the purpose of projects we are defining it as “how things get done here”.

4 Explore Organizational Culture Different Types:
Traditional (hierarchical) clearly defined roles and a clear chain of command Innovative (creative) Creative initiative and Creative processes and procedures are encouraged Competitive Encourages internal and external competition Collaborative (Teamwork) Encourages cross-functional teams Blended (subcultures) have strong features from one or more different types listed above There is no one type of category but many people have written articles books describing and defining it

5 Exploring Organizational Culture Different Types: a few Examples
BNP Paribas (Bank) Traditional (hierarchical) and silos (as of 2010) Google Innovative creative Entrepreneurial Google and Goldman Sachs Collaborative (Teamwork), (blended subcultures)

6 Exploring Organizational Culture Is one type better than the other?
Many successful companies with different types of cultures. However as an individual you may find you are happier and more productive in one type of culture over another.

7 Exploring Organizational Culture Is one type better than the other?
No, but… “Organizations with strong, adaptive cultures enjoy labor cost advantages, great employee and customer loyalty, and a smoother on-ramp in leadership succession.” “Strong Cultures do what they say they back their slogan and promises with actions.” Ex. BHC rewards individual accomplishments through such things as "WOW (Workers becoming Owners and Winners) Strong cultures can be more selective about the customers they serve. "The result of all this is ‘the best serving the best,’ or as Ritz-Carlton's mission states, ‘Ladies and gentlemen serving ladies and gentlemen.’ A book excerpt from The Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage by HBS professors Jim Heskett and W. Earl Sasser and coauthor Joe Wheeler. Key concepts include: A culture in which the organization does what it says it will do but also adapt to change. There are advantages and disadvantages associated with all different types of corporate cultures. One that is too firmly based in control and stability, for instance, may stagnate because it suppresses free thought, individuality, and creativity. On the other hand, a company that allows its employees too much autonomy may be inefficient if the employees are not particularly self-motivated. The culture defined by a company's founders also may clash with that which emerges from the employees in the workplace. A cohesive corporate culture can, however, unify employees, increase overall job satisfaction, and greatly improve a business's efficiency and productivity. ~ A book excerpt from The Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage by HBS professors Jim Heskett and W. Earl Sasser and coauthor Joe Wheeler. Key concepts include:

8 Exploring Organizational Culture Defining: Successful Projects
The project produces High quality products in a timely manner, for the agreed upon budget that satisfies the customer requirements. Meets it’s objects Benefits the overall portfolio

9 Exploring Organizational Culture Successful Projects Example
The IT Project team at “Franklin Mutual” implemented a new Business Intelligence strategy that moved the bank to a dashboard driven culture where each employee was empowered with the ability to access the data needed quickly and easily. The project was scheduled to take 9 months and cost 7 million dollars. It was on budget and on time and the company met it’s goal of a 2% increase in sales in the first 3 months following implementation.

10 Exploring Organizational Culture Project Failure
On Average of many Projects fail Overbudget and OverSchedule. Poor Requirements Poor alignment of Project Team with the Project work There have been many studies on why projects fail some have estimated 68% or more fail. Key findings from the report, The Impact of Business Requirements on the Success of Technology Projects from IAG Consulting, include (emphasis added): Failure Record! In the United States, we spend more than $250 billion each year on IT application development of approximately 175,000 projects. The average cost of a development project for a large company is $2,322,000; for a medium company, it is $1,331,000; and for a small company, it is $434,000. A great many of these projects will fail. Software development projects are in chaos, and we can no longer imitate the three monkeys -- hear no failures, see no failures, speak no failures.! The Standish Group research shows a staggering 31.1% of projects will be cancelled before they ever get completed. Further results indicate 52.7% of projects will cost 189% of their original estimates. The cost of these failures and overruns are just the tip of the proverbial iceberg. The lost opportunity costs are not measurable, but could easily be in the trillions of dollars. One just has to look to the City of Denver to realise the extent of this problem. The failure to produce reliable software to handle baggage at the new Denver airport is costing the city $1.1 million per day. On the success side, the average is only 16.2% for software projects that are completed on- time and on-budget Chaos Reporrt

11 Exploring Organizational Culture Elements of a Good Project Team
Well Planned Project Supportive Project Sponsor Great Leadership with a Vision Motivated Team Right Skills and Experience Reliable Team Member Work well as a team Good Communication Helpful and Support of one another

12 Exploring Organizational Culture When you inherit the Project Team
Have Clear Project Goals Clear Project Requirements Project Plan (WBS) Communication Plan Risk Management Plan Engage Team Members Provide Training

13 Culture on the Workflow The impact of organizational culture on the Project’s Lifecycle
At Times, In Traditional or Competitive cultures: A Project Management Framework may already exist May be more “paper work” May have more hands-on Managers At Times, in Collaborative cultures: YOU have to a Apply Framework Manager’s may be busy working on the product You have to make sure you know what it is How to deal with conflict or incomplete assignments Escalate or talk to the person directly

14 The impact of organizational culture on the Project’s Lifecycle Established Companies
More focused on meeting Cost and Schedule Management is often a separate profession Lifecycles tend to be more sequential “getting the job done” “doing things right”

15 The impact of organizational culture on the Project’s Lifecycle Startups, Small Business and Collaborative More focused on getting the project done Managers often manage and work on product development Lifecycles tend be more overlapping

16 The impact of organizational culture on the Project’s Lifecycle Project Lifecycle
Communicating: Communication Plans Implement a Project Management Information System (PMIS) Ex. Microsoft Project Use Multiple Communication Techniques This will help account for the different communication styles that exist and the different ways your team can

17 Communicating in a Way that Inspires High Performance
Use Multiple Communication Techniques Group Face to Face Meetings Agenda Meeting Minutes Online Meetings Meeting Minutes (or PMIS) Online Chats/comments captured in PMIS One on One (capture in PMIS) Informal Talks This will help account for the different communication styles that exist and the different ways your team can

18 Approaches to Managing Conflict
Culture on Project Workflow The impact of organizational culture on the Project’s Lifecycle Approaches to Managing Conflict

19 Approaches to Managing Conflict
Have Project Policies and Procedures in place Project Charter, Project Scope, Clear Requirements, Change Management Procedures Project Roles (Team Matrix) WBS Escalation Policy Upfront Communication Enforce all policy and procedures evenly across the board

20 Approaches to Managing Conflict
Listen Actively Listen

21 Approaches to Managing Conflict
Acknowledge and Disperse energy Control the environment when you can

22 Techniques for Conflict resolution
Mediation Arbitration Control Acceptance Elimination Conflict is not always “bad” it can offer creative solutions. It is a problem if it is hindering the success of the project Mediation. Based on a search for common ground, this strategy provides an opportunity for negotiation between the parties in conflict. The goal is to identify multiple possible alternatives and to mutually select one that is acceptable to all involved parties and in the interest of project objectives. This strategy is based on the confrontation approach described earlier. •Arbitration. This strategy requires the project manager to provide a safe and productive opportunity for the conflicted parties to air their disagreements. After careful attention and fully listening to each party, the project manager should formulate, define, and provide a solution to the parties. This strategy is based on the forcing approach to conflict described earlier. Arbitration can often be effectively combined with mediation by forcing an initial conflict solution and then allowing the parties to negotiate to a more mutually acceptable alternative. •Control. Based on the smoothing approach described earlier, this strategy seeks to bring tension and emotions down to a level at which productive discussion and negotiation can occur. Humor is often an effective tool, as well as the use of temporary breaks or time-outs in the discussions between conflicted parties. •Acceptance. The decision can be made that the conflict consequences are negligible relative to project objectives and, therefore, require no action. This strategy carries significant risk of later escalation and should be combined with specific plans for monitoring the situation to ensure that the conflict remains at an acceptable level. (This strategy is obviously similar to the PMBOK Guide® risk management strategy of active acceptance.) •Elimination. Finally, the elimination strategy is reserved for those conflicts that have become so dysfunctional that the project can no longer tolerate any impacts from them. Often a last resort, elimination

23 ALWAYS USE a PROJECT FRAMWORK
In all cultures create: Clear Project Scope with clear requirements WBS – Work Breakdown Structure Change Management Procedure Clear and Engaging Communication Appropriate for the culture


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