Interpersonal Skills for Portfolio, Program, and Project Managers

Leadership

1

Success on any program or project requires strong leadership from the program or project manager. According to the Project Management Institute (PMI):

• A leader “guides, inspires, and motivates team members and other project stakeholders to manage and overcome issues to effectively achieve project objectives” (2007, p. 23). Leadership is a key personal competency for the project manager.

• Leadership is important throughout all phases of a project‧s life cycle, but it is especially essential for communicating the project‧s vision and then inspiring the team to achieve high performance (2008a, p. 240).

• Leadership “is the process that will facilitate project goal achievement” (1987, p. F-6).

• “Leadership skills are needed for managing multiple project teams throughout the program life cycle” (2008c, p.13). Program managers must establish the overall direction of the program through their leadership of the program management team.

In the third edition of the PMBOK^(r) Guide (PMI 2004), John Kotter writes that both leadership and management are necessary in order to produce outstanding results, but management is more concerned with “consistently producing key results expected by stakeholders” (p. 24), while leadership involves establishing direction and aligning, motivating, and inspiring people. This edition of the PMBOK^(r) Guide stresses the importance of project managers as leaders, especially on large projects, but it also emphasizes that any team member can demonstrate leadership at any time in a variety of ways.

Adams and Campbell (1982) write that the “most important function of a manager, but oftentimes the least mentioned, is the leadership function. This is also true for the manager of a project” (p. 3). They explain that leading a project team requires skills, knowledge, and the ability to communicate with a diverse group of people who represent different functions and backgrounds. They understand the challenges of leading in a matrix management environment but warn that project managers without leadership ability may never see their projects completed.

Project managers tend to gradually acquire leadership skills early in their project careers and then sharpen them as they work on more complex projects and with more seasoned project managers. Project managers must be not only leaders but also managers, facilitators, and mentors. This chapter describes these key roles.

The Importance of Leadership in Program and Project Management

In many ways, program and project managers face more leadership challenges than functional or operational managers. Programs and projects may have more stakeholders than functional or operational teams, and they may not all be easy to identify. Organizational structures are often less clear in a program or project environment.

The primary difference between relationships in a program and project management environment and those in a functional or operational management structure is that the latter are more stable. The relationship between the functional or operational manager and the employee is ongoing. This means they can work together to formulate a career path for the employee that enhances his or her skills and enables him or her to pursue roles with greater responsibility over time. The employee is not concerned about what his or her role will be in the organization once the program or project ends or when his or her specific tasks on the program and project are completed. He or she has security in the organization. Also, the mission the employee must fulfill is generally clear, and the employee can relate to the strategic goals of the organization and the vision or desired state from his or her position within the functional unit. Formal and informal operating methods tend to remain constant. Additionally, program and project work requires people to work with others whom they may not have worked with in the past, but within the functional unit, the employee can develop longer-lasting relationships with peers. These help build lasting trust and can make the work experience a more enjoyable one.

Identifying Stakeholders

The functional or operational manager tends to have fewer stakeholders than does a program or project manager. This means that it is not necessary for functional or operational managers to prepare a stakeholder management plan, and over time, people get to know the key stakeholders with whom they work on a daily basis. Because the reporting relationships are known, it is easier to manage upward.

Relationships are less clear cut in program or project situations. For each new program or project, the program and project managers must identify the key stakeholders that will be involved and must ensure that a key stakeholder is not overlooked.

PMI (2008a) suggests several ways project managers can identify stakeholders and determine the influence and impact they may have on the project. These include using power/interest, power/influence, or influence/impact grids or a salience model. The power/interest approach evaluates the stakeholder‧s level of authority and his or her level of concern. The power/influence approach assesses the stakeholder‧s power on the project versus his or her active involvement. The influence/impact grid evaluates the stakeholder‧s active involvement and his or her ability to effect change on the project. The salience model evaluates the stakeholder‧s power—e.g., the ability to impose his or her will, his or her level of urgency, his or her legitimacy, or his or her level of involvement in the project.

Using Smith‧s (2000) approach, project managers identify each stakeholder‧s interests in the project and estimate each stakeholder‧s priority and the potential impact (high, medium, or low) he or she will have on the project. Smith then suggests that project managers prepare a stakeholder importance/ influence matrix and describe the extent of stakeholders’ participation in the project in each phase (initiating, planning, executing, monitoring and controlling, and closing). The project manager can then use this information to determine how best to work with each stakeholder and to prepare a stakeholder register and a stakeholder management strategy, which are both outputs of the “identify stakeholders” process outlined in the PMBOK(r) Guide (PMI 2008a).

But it is not enough to identify the stakeholders and prepare a strategy. Project managers must actively engage stakeholders throughout the project as planned and manage communications with them to see if they are interested in other aspects of the project. This active management of stakeholder expectations, as noted in the PMBOK(r) Guide (PMI 2008a), can increase the likelihood of project success because the stakeholders will feel a sense of ownership in the project.

Cleland and Ireland (2007) also note the importance of active stakeholder involvement in their five-step model, in which the project manager defines the key issues, then determines the underlying factors surrounding these issues, identifies the key stakeholders, identifies the specific “stake” each one has in the project, and finally modifies the project‧s strategy in light of the stakeholder analysis and the stakeholders’ commitment to the project.

Milosevic (2003) recommends that project managers prepare a stakeholder matrix, listing stakeholders and the factors that are keys to success for the project. Table 1-1 presents an example.

To prepare this matrix, the project manager can use tools such as brainstorming (all team members discuss ideas freely), the nominal group technique (all team members speak without interruption or criticism), and Delphi analysis (experts participate anonymously, assisted by a facilitator, to help the group reach consensus and to prevent one person from dominating the discussion). The project manager must then document the matrix and update it throughout the project‧s life cycle. Milosevic explains that such a matrix is particularly useful while planning a project, but it also helps foster overall project team development because it informs the team members of the stakeholders’ key success factors, which will help the team develop a stakeholder management strategy.

Table 1-1 Example Stakeholder Matrix

At the program level, PMI (2008c) devotes a knowledge area to stakeholder management. This knowledge area focuses on identifying the program‧s stakeholders in terms of how each one affects or will affect the program—for example, a stakeholder‧s influence on the culture of the organization, as well as any major issues associated with a stakeholder—and then developing a strategy to promote active stakeholder engagement, which will ensure acceptance of the program‧s deliverables, objectives, and benefits. At the program level, the emphasis is broader; in most cases, programs, which have a larger scope and longer duration, involve far more stakeholders and interdependencies than projects. PMI also notes the importance of stakeholder management to successfully implementing changes in an organization.

Both program and project managers must recognize that stakeholder management is a key success factor. It cannot be addressed in a document prepared at the beginning of the life cycle. It is an iterative and ongoing process. New stakeholders will become interested in or gain influence over the program or project, while others may no longer have an interest in the program or project at certain points.

The key stakeholder management skills required of program and project managers include:

• The ability to quickly identify the needs and expectations of a stakeholder.

• A high level of personal confidence. Program and project managers must be able to effectively work with stakeholders who hold various positions in the organization, customers, and the public.

• An ability to adapt their style of communication when interacting with stakeholders, given their personalities and specific interests and influence on the program or project.

• A willingness to embrace change and diverse points of view, which will help the program or project manager develop mutually agreeable solutions to problems or issues that may arise.

Clarifying Organizational Structure

Another key challenge for program and project managers is the lack of clarity of the structure of the organization. Program and project teams, whether they work virtually or are co-located, come together for a certain period of time and then disband. Especially in a virtual environment, team members may be subject matter experts that only join the program or project team for certain specific tasks. Further, it is rare for people to work on only a single program or project, unless they are a member of its core team and assigned to it for much of its duration. The organizational structure of programs and projects is, therefore, nebulous.

Further, in matrix environments (discussed in more detail in the introduction), the program or project manager‧s authority can range from low to high. A weak matrix or project-coordinator–type structure in which the project manager does not have much authority is typical for smaller projects, while for larger programs and projects, working within a strong matrix, and, sometimes, using a projectized approach, is more common and gives program or project managers a higher degree of authority. The organizational structure may change during the life of the program or project, especially if the program‧s or project‧s priority in terms of the organization‧s portfolio changes. As noted by PMI (2008c), different types of organizational structures may be used for the project and nonproject work that composes a program. Still, the project or program manager‧s level of authority may not be equal to that of a functional or operational manager. Both the nebulous organizational structures and the different levels of authority mean program and project managers must have sophisticated people skills, including:

• A high tolerance for ambiguity

• Personal comfort in operating with a dual focus (such as applying technical skills while also operating as a generalist)

• The ability to change direction quickly if needed and to lead the change within the team

• Skill in creating group cohesion, without encouraging groupthink or “management by agreement” (see Chapter 8 for more on the risks of too much agreement)

• Personal confidence that enables the program or project manager to undertake a significant endeavor without knowing in advance all the issues, risks, and other problems that may arise

Program and project managers can develop skills such as tolerance for ambiguity, strong self-confidence, and comfort with relinquishing control by:

• Becoming involved in mentoring relationships

• Volunteering for assignments outside their usual work

• Seeking open and honest feedback from peers and others in the organization regarding the effectiveness of their work

• Taking classes and workshops in other fields to get exposure to new ideas and new ways of working.

Leveraging Resources

The functional manager also benefits more from greater consistency of resources than does the program or project manager. While this book‧s focus is on human resources, other resources also are required at certain phases in the life cycle of a program or project. Because the functional manager has a long-term working relationship with those in his or her department, he or she is aware of the technical and interpersonal strengths and weaknesses of each employee and may have worked with individuals on developing their prospective career paths. This relationship enables the functional or operational manager to:

• Apply the strengths of the people in the unit more effectively

• Avoid problems by assigning people to tasks they are likely to perform successfully.

Also, because the working relationship at the functional or operational level is ongoing, a manager can develop the human resources of the unit. He or she may:

• Create and monitor ongoing personal development plans for each employee to enhance his or her technical and interpersonal skills, thus improving the talent pool

• Be involved in hiring and promoting individuals in the unit

• • Provide other rewards and recognition in addition to salary advances.

Program and project managers face different challenges. First, they must establish at the inception of the program or project the knowledge, skills, and competencies required to achieve the program‧s or project‧s goals and complete the deliverables. Then they must determine how they will acquire the needed resources, when the resources will be needed, for how long they will be needed, and how they will be released to their functional or operational unit at the program‧s or project‧s conclusion. This information constitutes the resource management plan.

Then the program or project manager must negotiate with functional and operational managers, as well as with the human resources department, to acquire the needed human resources and to ensure that they are available when they are needed. Outsourcing may be necessary, so make-or-buy decisions may have to be made for both human resources and other resources.

Once the resources have been acquired, there are other challenges. The program or project manager:

• Must quickly assess the strengths and weaknesses of each team member (usually, team members have not previously worked for the program or project manager).

• Has little control over the human resource component; often, the resources are preassigned to the team by someone else.

• Has little time or authority to prepare long-term professional development plans for a poorly performing team member—or any team member. Often, the program or project manager must work with whoever is assigned to a specific work package but may not be able to provide training to team members to improve their skills and competencies while program or project work is underway.

• Must determine through a resource assignment matrix the specific roles and responsibilities of the team members for the various tasks or activities to be performed on the program or project.

• Has limited control over recognition and rewards for outstanding work done by the team as a whole or by specific individuals on the team.

To be able to work effectively within these human resource constraints, the program or project manager must have:

• The ability to quickly and accurately assess the strengths, weaknesses, and personalities of people he or she may never even meet, especially if work is performed in a virtual environment

• The ability to focus more on the strengths of each team member.

It is difficult to develop these skills, but there are approaches that can help:

• Becoming familiar with a system that describes individual personality differences, such as the Myers-Briggs Type Indicator or McClelland‧s achievement motivation approach.

• Making a conscious effort to identify some positive aspects of all negative professional situations.

Leveraging Motivation

It is simpler for the functional or operational manager to motivate his or her employees than it is for the program or project manager. In a functional or operational unit, relationships are long-term. Employees realize that they need to meet the expectations of their manager: He or she has the power to give raises, promotions, and assignments, and he or she also has a significant impact on each employee‧s career direction. Employees’ performance development plans or management by objectives plans usually support those of their departmental manager, and their contributions further the department‧s goals and objectives. They prepare these plans with assistance from their manager. As they work to execute these plans, they can seek managerial feedback on ways to improve and to meet their goals and objectives. Contrast this situation with that of the program or project manager, who often has no opportunity to contribute formal feedback on team members’ performance to the functional or operational manager.

Program and project managers face a far more difficult task in motivating team members. In a matrix setting, whether it is strong or weak, the program or project manager has little control over team member assignments and availability and must lead the team through influence and motivation rather than through direction. These managers must truly be skilled in influencing behavior creatively, using “carrots” as often as possible. To motivate team members effectively through influence, program and project managers need two key people skills:

• The ability to motivate team members through knowledge of their personal styles and their career stage

• The ability to apply sophisticated interpersonal communications skills.

The Four Key Leadership Functions of Program and Project Managers

A project manager must be able to play four different leadership roles throughout the project or program life cycle to complete a project on time, within budget, according to specifications, and to the customer‧s satisfaction. The program manager must take on these roles to deliver the program‧s intended benefits along with its deliverables (Flannes and Levin 2001, 2005). The roles include:

• Leader

• Manager

• Facilitator

• Mentor.

These four key roles are summarized in Table 1-2.

It is important not to think of these four roles as occurring in isolation. Instead, the program or project manager must recognize he or she is fulfilling these roles each day under different circumstances. Even as a project manager, for example, is having a one-on-one conversation with a team member, he or she may need to seamlessly move from one role to another.

Generally, project or program managers are comfortable operating in one or two of the four roles. In one‧s own development, one should concentrate on improving competencies in all of the four roles, but especially in those one does not use on a regular basis. Developing improved competencies in these areas may be an element the program or project manager includes in his or her individual development plan.