[Link]

org/blogs/project- project manager can have a greater positive impact on

management/2010/06/27/in-house-project-managers-vs- delivery, than the area of managing risk.
external/ From a corporate perspective, all key projects should be
challenged (through governance) to demonstrate a
[Link] disciplined approach to its management and that exposure
to risk is reducing in a systematic way, especially in the
early stages of the life-cycle.

All Projects carry risk: we either manage it or Improving Risk Identification and Capture – how to do
the hardest element.
suffer its consequences
Very few project teams have comprehensive risk
Most people agree that all projects carry risk
management plans, or even a clear definition of the
(uncertainty). However, few organisations
specific risks that face their projects. This is partly cultural,
can demonstrate the application of disciplined risk
partly ‘mechanical’; both of which can be addressed.
management on their projects. This can be a major
Many risk registers hold poor quality, partially completed or
constraint on the success of any project – or even worse.
very limited data. Often this results in a poor
This article shows how you can begin to reverse
understanding of risk and little attention being dedicated to
this. Improving the application of project risk management
its management. It also makes the data of little use to
involves two main things:
others (e.g. stakeholders), and can foster a false sense of
• improving the ability to identify risk, when there is still
security relating to the delivery of any project.
time in the project lifecycle to mitigate it, and
Improving the management of risk involves improving the
• embedding the management of risk into the mainstream
ability to identify risks early, using productive methods
of delivering projects.
linked to the project’s strategic decision-making life-cycle,
The nature of Projects is all about risk – so why is it
along with effective methods of presenting and using the
treated with such low priority?
data.
All projects carry risk. The most obvious examples come
It is imperative to employ innovative and effective methods
from:
to:
• dependencies (internal or external)
• significantly improve the identification of risk and the
• assumptions made by team members (in relation to any
capture and presentation of risk data;
aspect of the project).
• integrate risk management into all aspects of the
At the start of projects, the potential impact of risk (in cost
definition of the project; and
and/or schedule terms) is almost unlimited. The real
• improve the quality of information substantially and its
choice is either to dedicate timely attention to identifying
communication across the project team.
and managing risk, or suffer its maximum consequence
(impact) downstream. Historically, most organisations
Project Risk Assessment: Improving the
have not been proactive at managing project risk at all. It is
understanding of your risks
even common to hear project managers say: “I’ve not had
In all the literature on risk, much has been written on
time to to look at it as I’m too busy developing the project
modeling its impact using statistical methods. This has its
plan”.
place especially when major project decisions are being
On larger projects, there are few areas where a disciplined
taken, however, many senior managers rightly believe that (e.g. Earned Value Management).
far greater benefit is achieved by ensuring that mitigation Once a project starts to approach the task in this way, risk
activities are carried out with discipline and in a timely management can turn into a controlled, productive process
manner. that systematically reduces project risk, thereby enabling
As a minimum, all risks should be assessed to decide: projects to minimise its occurrence and impact.
• the probability of its occurrence (against a relatively Managing the Overall Process
simple scale expressing the likelihood of As with any process, project risk management must itself
occurrence, e.g. low / medium or high); be controlled. There should be periodic reviews and
• the impact of the risk should it occur (again either in events scheduled into the mainstream project plan to
simple overall terms, or perhaps impact on address risk. These reviews must be managed with
schedule, budget or quality). enormous discipline, as they are not brainstorming or
When presenting risks to stakeholders and decision analysis sessions – they should review the success of risk
makers it is very productive to include their impacts, mitigation strategies, and assign new actions as
especially when committing to mitigation strategies or fall- appropriate.
back plans. In addition, there are simple but very powerful metrics that
can be employed, at the project and business levels, to
monitor the application of the risk management process
and the status of health of projects.

Let’s not call ‘Opportunity’ Risk – because it makes no

sense to people
While projects need to manage risks, they will similarly
have opportunities, which in many ways are the exact
opposite of risk. Some bodies and associations now
promote the same core process for managing both
together, where opportunities have a positive impact on
the project. There can be some merits to this, perhaps the
most important of which is to raise the focus on opportunity
management and to offer a realistic balance to the overall
picture during significant project decisions.

However, the recent trend in some project management

methods to classify opportunities as “positive risk”, leads to
Improving the Management of Risk – there is no risk a serious question on language and terminology, as the
that cannot be influenced in some way. dictionary definition and common expectation of people is
Even when the risk is outside the control of the core team, always that risk revolves around “danger”. Picture this: we
they can still limit its impact. The strategies and actions to would never say “if I walk around outside in a storm there
manage risks that pose a significant threat to a project is an opportunity I might be struck by lightening!”.
must be built into the baseline project plan, as early as Classifying opportunities as risk is very
possible. Mitigation actions should never be treated confusing and makes no sense from a communication
outside the mainstream project management processes, perspective. When it comes to working in teams,
yet in most projects today, this is exactly how it occurs. communication is crucially important. It may be very neat
Teams need to understand the difference between for process folks to do this, but it does not help
mitigation and contingency planning, and when each the understanding of this topic, which is one of the more
needs to be applied: challenging topics to describe clearly and hence
• mitigation strategies are proactive actions that reduce successfully. Food for thought. We never forget
either: a) the probability of a risk occurring or b) opportunities but we differentiate opportunities from risk.
the impact of the risk if it still does; Simple. We like simple too.
• fall back (also called contingency) plans are the
alternative plans that may be executed if the risk
occurs.
Moreover, teams also need to know how to integrate risk
management data with the mainstream technical,
management and performance measurement processes
10 GOLDEN RULES OF PROJECT RISK them. The project plan, business case and resource
MANAGEMENT planning are good starters. Other categories are old
~ By Bart Jutte project plans, your company Intranet and specialist
websites.
The benefits of risk management in projects are huge. You Are you able to identify all project risks before they occur?
can gain a lot of money if you deal with uncertain project Probably not. However if you combine a number of
events in a proactive manner. The result will be that you different identification methods, you are likely to find the
minimise the impact of project threats and seize the vast majority. If you deal with them properly, you will have
opportunities that occur. This allows you to deliver your enough time left for the unexpected risks that take place.
project on time, on budget and with the quality results that
your project sponsor demands. Also, your team members Rule 3: Communicate About Risks
will be much happier if they do not enter a fire fighting Failed projects show that project managers in such
mode needed to repair the failures that could have been projects were frequently unaware of the big hammer that
prevented. was about to hit them. The frightening finding was that
This article gives you the ten golden rules to apply risk frequently someone of the project organisation actually did
management successfully in your project. They are based see the hammer, but didn't inform the project manager of
on personal experiences of the author who has been its existence. If you don't want this to happen in your
involved in projects for over fifteen years. Also, the big pile project, you better pay attention to risk communication.
of literature available on the subject has been condensed A good approach is to consistently include risk
in this article. communication in the tasks you carry out. If you have a
team meeting, make project risks part of the default
Rule 1: Make Risk Management Part of Your Project agenda (and not the final item on the list!) This shows risks
The first rule is essential to the success of project risk are important to the project manager and gives team
management. If you don't truly embed risk management in members a natural moment to discuss them and report
your project, you can not reap the full benefits of this new ones.
approach. You can encounter a number of faulty Another important line of communication is that of the
approaches in companies. Some projects use no approach project manager and project sponsor or principal. Focus
whatsoever to risk management. They are either ignorant, your communication efforts on the big risks here and make
running their first project or they are somehow confident sure you don't surprise the boss or the customer! Also,
that no risks will occur in their project (which of course will take care that the sponsor makes decisions on the top
happen). Some people blindly trust the project manager, risks because usually some of them exceed the mandate
especially if he or she looks like a battered army veteran of the project manager.
who has been in the trenches for the last two decades.
Professional companies make risk management part of Rule 4: Consider Both Threats and Opportunities
their day to day operations and include it in project Project risks have a negative connotation: they are the bad
meetings and the training of staff. guys that can harm your project. However, modern risk
approaches also focus on positive risks, the project
Rule 2: Identify Risks Early in Your Project opportunities. These are the uncertain events that are
The first step in project risk management is to identify the beneficial to your project and organisation. These good
risks that are present in your project. This requires an guys make your project faster, better and more profitable.
open mindset that focuses on future scenarios that may Unfortunately, a lot of project teams struggle to cross the
occur. Two main sources exist to identify risks, people and finish line, being overloaded with work that needs to be
paper. People are your team members that each brings done quickly. This creates a project dynamic where only
along their personal experiences and expertise. Other negative risks matter (if the team considers any risks at
people to talk to are experts outside your project that have all). Make sure you create some time to deal with the
a track record of the type of project or work you are facing. opportunities in your project, even if it is only half an hour.
They can reveal some booby traps you will encounter or The chances are that you will see a couple of opportunities
some golden opportunities that may not have crossed your with a high payoff that doesn't require a big investment of
mind. Interviews and team sessions (risk brainstorming) time or resources.
are the common methods to discover the risks people
know. Paper is a different story. Projects tend to generate Rule 5: Clarify Ownership Issues
a significant number of (electronic) documents that contain Some project managers think they are done once they
project risks. They may not always have that name, but have created a list of risks. However, this is only a starting
someone who reads carefully (between the lines) will find point. The next step is to make clear who is responsible for
what risk! Someone has to feel the heat if a risk is not project. Each project manager needs to answer the usual
taken care of properly. The trick is simple: assign a risk questions about the total budget needed or the date the
owner for each risk that you have found. The risk owner is project will finish. If you take risks into account, you can do
the person in your team that has the responsibility to a simulation to show your project sponsor how likely it is
optimise this risk for the project. The effects are really that you finish on a given date or within a certain time
positive. At first, people usually feel uncomfortable that frame. A similar exercise can be done for project costs.
they are actually responsible for certain risks, but as time The information you gather in a risk analysis will provide
passes they will act and carry out tasks to decrease valuable insights into your project and the necessary input
threats and enhance opportunities. to find effective responses to optimise the risks.
Ownership also exists on another level. If a project threat
occurs, someone has to pay the bill. This sounds logical, Rule 8: Plan and Implement Risk Responses
but it is an issue you have to address before a risk occurs. Implementing a risk response is the activity that actually
Especially if different business units, departments and adds value to your project. You prevent a threat occurring
suppliers are involved in your project, it becomes important or minimise negative effects. Execution is key here. The
who bears the consequences and has to empty his wallet. other rules have helped you to map, prioritise and
An important side effect of clarifying the ownership of risk understand risks. This will help you to make a sound risk
effects is that line managers start to pay attention to a response plan that focuses on the big wins.
project, especially when a lot of money is at stake. The If you deal with threats, you have three options, risk
ownership issue is equally important to project avoidance, risk minimisation and risk acceptance. Avoiding
opportunities. Fights over (unexpected) revenues can risks means you organise your project in such a way that
become a long-term pastime of management. you don't encounter a risk anymore. This could mean
changing supplier or adopting a different technology or, if
Rule 6: Prioritise Risks you deal with a fatal risk, terminating a project. Spending
A project manager once told me, “I treat all risks equally.” more money on a doomed project is a bad investment.
This makes project life really simple. However, it doesn't The biggest category of responses are the ones to
deliver the best results possible. Some risks have a higher minimise risks. You can try to prevent a risk occurring by
impact than others. Therefore, you better spend your time influencing the causes or decreasing the negative effects
on the risks that can cause the biggest losses and gains. that could result. If you have carried out rule 7 properly
Check if you have any showstoppers that could derail your (risk analysis) you will have plenty of opportunities to
project. If so, these are your number one priority. The influence it. A final response is to accept a risk. This is a
other risks can be prioritised on gut feeling or, more good choice if the effects on the project are minimal or the
objectively, on a set of criteria. The criteria most project possibilities to influence it prove to be very difficult, time-
teams use is to consider the effects of a risk and the consuming or relatively expensive. Just make sure that it is
likelihood that it will occur. Whatever prioritisation measure a conscious choice to accept a particular risk.
you use, use it consistently and focus on the big risks. Responses to risk opportunities are the reverse of the
ones for threats. They will focus on seeking risks,
Rule 7: Analyse Risks maximising them or ignoring them (if opportunities prove to
Understanding the nature of a risk is a precondition for a be too small).
good response. Therefore, take some time to have a
closer look at individual risks and don't jump to conclusions Rule 9: Register Project Risks
without knowing what a risk is about. This rule is about bookkeeping (however don't stop
Risk analysis occurs at different levels. If you want to reading). Maintaining a risk log enables you to view
understand a risk at an individual level, it is most fruitful to progress and make sure that you won't forget a risk or two.
think about the effects that it has and the causes that can It is also a perfect communication tool that informs your
make it happen. Looking at the effects, you can describe team members and stakeholders what is going on (rule 3).
what effects take place immediately after a risk occurs and A good risk log contains risk descriptions, clarifies
what effects happen as a result of the primary effects or ownership issues (rule 5) and enables you to carry our
because time elapses. A more detailed analysis may show some basic analyses with regard to causes and effects
the order of magnitude effect in a certain effect category (rule 7). Most project managers aren't fond of
like costs, lead time or product quality. Another angle to administrative tasks, but doing your bookkeeping with
look at risks is to focus on the events that precede a risk regards to risks pays off, especially if the number of risks
occurrence, the risk causes. List the different causes and is large. Some project managers don't want to record risks
the circumstances that decrease or increase the likelihood. because they feel this makes it easier to blame them in
Another level of risk analysis investigates the entire case things go wrong. However, the reverse is true. If you
record project risks and the effective responses you have mean to their jobs and lives, and to envision their future as
implemented, you create a track record that no one can part of the vision for the organization." (Bennis, 1997)
deny. Even if a risk happens that derails the project. Doing
projects is taking risks.
A Good Communicator
Rule 10: Track Risks and Associated Tasks
The risk register you have created as a result of rule 9, will The ability to communicate with people at all levels is
help you to track risks and their associated tasks. Tracking almost always named as the second most important skill
tasks is a day-to-day job for each project manager. by project managers and team members. Project
Integrating risk tasks into that daily routine is the easiest leadership calls for clear communication about goals,
solution. Risk tasks may be carried out to identify or responsibility, performance, expectations and feedback.
analyse risks or to generate, select and implement
There is a great deal of value placed on openness and
responses.
directness. The project leader is also the team's link to the
Tracking risks differs from tracking tasks. It focuses on the
larger organization. The leader must have the ability to
current situation of risks. Which risks are more likely to
effectively negotiate and use persuasion when necessary
happen? Has the relative importance of risks changed?
to ensure the success of the team and project. Through
Answering these questions will help to pay attention to the
effective communication, project leaders support individual
risks that matter most for your project value.
and team achievements by creating explicit guidelines for
accomplishing results and for the career advancement of
In Summary
team members.
The ten golden risk rules above give you guidelines on
how to implement risk management successfully in your
project. However, keep in mind that you can always
improve. Therefore, rule number 11 would be to use the Integrity
Japanese Kaizen approach: measure the effects of your One of the most important things a project leader must
risk management efforts and continuously implement remember is that his or her actions, and not words, set the
improvements to make it even better. modus operandi for the team. Good leadership demands
commitment to, and demonstration of, ethical practices.
Creating standards for ethical behavior for oneself and
Top 10 Leadership Qualities Of A Project living by these standards, as well as rewarding those who
Manager exemplify these practices, are responsibilities of project
Written by Timothy R. Barry leaders. Leadership motivated by self-interest does not
What qualities are most important for a project manager to serve the well being of the team. Leadership based on
be an effective project leader? It's a question often asked integrity represents nothing less than a set of values
and one that makes us sit back and think. Over the past others share, behavior consistent with values and
few years, the people at ESI International, a leader in dedication to honesty with self and team members. In
project management training, have looked at what makes other words the leader "walks the talk" and in the process
an effective project leader. They quizzed some highly- earns trust.
talented project leaders and compiled a running tally of
their responses. Below are the top 10 qualities in rank
order, according to their frequency listed. Enthusiasm
Inspires A Shared Vision Plain and simple, we don't like leaders who are negative -
An effective project leader is often described as having a they bring us down. We want leaders with enthusiasm,
vision of where to go and the ability to articulate it. with a bounce in their step, with a can-do attitude. We
Visionaries thrive on change and being able to draw new want to believe that we are part of an invigorating journey -
boundaries. It was once said that a leader is someone who we want to feel alive. We tend to follow people with a can-
"lifts us up, gives us a reason for being and gives the do attitude, not those who give us 200 reasons why
vision and spirit to change." Visionary leaders enable something can't be done. Enthusiastic leaders are
people to feel they have a real stake in the project. They committed to their goals and express this commitment
empower people to experience the vision on their own. through optimism. Leadership emerges as someone
According to Bennis "They offer people opportunities to expresses such confident commitment to a project that
create their own vision, to explore what the vision will others want to share his or her optimistic expectations.
Enthusiasm is contagious and effective leaders know it.
Empathy stressful event, they consider it interesting, they feel they
can influence the outcome and they see it as an
What is the difference between empathy and sympathy?
opportunity. "Out of the uncertainty and chaos of change,
Although the words are similar, they are, in fact, mutually
leaders rise up and articulate a new image of the future
exclusive. According to Norman Paul, in sympathy the
that pulls the project together." (Bennis 1997) And
subject is principally absorbed in his or her own feelings as
remember - never let them see you sweat.
they are projected into the object and has little concern for
the reality and validity of the object's special experience.
Empathy, on the other hand, presupposes the existence of
the object as a separate individual, entitled to his or her Team-Building Skills
own feelings, ideas and emotional history (Paul, 1970). As A team builder can best be defined as a strong person
one student so eloquently put it, "It's nice when a project who provides the substance that holds the team together
leader acknowledges that we all have a life outside of in common purpose toward the right objective. In order for
work." a team to progress from a group of strangers to a single
cohesive unit, the leader must understand the process and
dynamics required for this transformation. He or she must
Competence also know the appropriate leadership style to use during
each stage of team development. The leader must also
Simply put, to enlist in another's cause, we must believe
have an understanding of the different team players styles
that that person knows what he or she is doing.
and how to capitalize on each at the proper time, for the
Leadership competence does not however necessarily
problem at hand.
refer to the project leader's technical abilities in the core
technology of the business. As project management
continues to be recognized as a field in and of itself,
project leaders will be chosen based on their ability to Problem Solving Skills
successfully lead others rather than on technical expertise, Although an effective leader is said to share problem-
as in the past. Having a winning track record is the surest solving responsibilities with the team, we expect our
way to be considered competent. Expertise in leadership project leaders to have excellent problem-solving skills
skills is another dimension in competence. The ability to themselves. They have a "fresh, creative response to
challenge, inspire, enable, model and encourage must be here-and-now opportunities," and not much concern with
demonstrated if leaders are to be seen as capable and how others have performed them.
competent.

12 Essential Soft Skills for Project Managers

Ability To Delegate Tasks Communication and Consultation: Interacting with
Trust is an essential element in the relationship of a project people about ideas, thoughts, facts, emotions, challenges,
leader and his or her team. You demonstrate your trust in successes, etc. alongside hard facts such as project
others through your actions - how much you check and progress. Having the ability to convey complex ideas
control their work, how much you delegate and how much easily; clearly articulate what must be accomplished; keep
you allow people to participate. Individuals who are unable the team moving toward a common goal; and to foster an
to trust other people often fail as leaders and forever environment that allows team members to communicate
remain little more that micro-managers, or end up doing all openly and honestly.
of the work themselves. As one project management
Conflict and Crisis Management: Listening and
student put it, "A good leader is a little lazy." An interesting
responding to the needs and views of all team members to
perspective!
anticipate any potential areas of conflict. The ability to
diffuse situations where conflict has risen maintains a
healthy project environment.
Cool Under Pressure
Flexibility and Creativity: Thinking in original and
In a perfect world, projects would be delivered on time,
imaginative ways to widen the scope of problem solving
under budget and with no major problems or obstacles to
when issues arise. Encourage project teams to find the
overcome. But we don't live in a perfect world - projects
best solution and outcomes without slavishly following
have problems. A leader with a hardy attitude will take
these problems in stride. When leaders encounter a
generic delivery methods or solutions. Adapting a project's Identifying common negative behaviors that can
different components, templates, tools, and techniques. contribute to these failures might be the first step
towards recovery:
Leadership: Understanding the vision and direction of the
project and aligning the team to work towards it. Skills 1. Communication imbalance – communication consumes
include delegating, coaching, motivating and leading by a significant percentage of a PM’s time so one would
example. assume that this is a competency that even poor PMs
would excel at. Unfortunately, some PMs treat knowledge
Learning and Development: Continual improvement of & information like power – sharing it with those they wish
both your own skills and those of your team. Assessment to curry favor with, and leaving everyone else in the
of skills and capabilities, encouraging participation in dark. Other PMs have a case of verbal “Montezuma’s
learning activities and evaluating how the learning is revenge” – this is equally bad as stakeholders are unsure
applied in the project environment. what information is critical and what is minutiae. I covered
this issue more extensively in the article “A dripping faucet
Negotiation: Analysis of information, decision making, or a fire hose – which most resembles YOUR project
establishing the desired outcome and developing a communication strategy?”
strategy for the negotiation alongside understanding the
2. Neglecting stakeholders – As I wrote in “Don’t get
optimal outcome from several options. Gaining agreement
blindsided by stakeholder influence” , PMs can get tunnel-
through consensus of positions from both parties.
vision by focusing purely on their direct customer or
sponsor. While this individual might be the one signing
Organisational Effectiveness: Understanding and
deliverable acceptance forms and evaluating your
applying people management processes and policies.
performance, a good PM needs to practice 360 degree
Understanding the corporate culture, the organisational
management – sponsor, stakeholders & team.
dynamics, and the individuals that work within it lead to
getting the best from your team. 3. Inaccurate or incomplete project control books – It
doesn’t matter how heavy or light your PM methodology is
Problem Solving and Decision-Making: Resolving (or even if you organization doesn’t have one). There’s a
issues and solving problems that are a normal part of basic set of project data that should be kept current so to
every project. facilitate project tracking, control, monitoring and (if you
win the lottery) transition. Having an out-of-date schedule
Professionalism and ethics: Demonstrated through is worse than having no schedule at all – at least a
knowledge, skills and behaviour alongside appropriate stakeholder doesn’t draw any wrong conclusions from a
conduct and moral principles for both the organisation's non-existent schedule.
and project's environments.
4. Ignoring conflict – Conflict is a natural occurrence on
Trustworthiness: Do what you say you're going to do. most projects but accidental PMs are often unused to
Build trust with stakeholders involved and convey they can managing interpersonal conflicts and might be tempted to
be trusted day-to-day to do what is right at the right time to ignore them in the hopes that the situation will resolve
keep the project successful and the Sponsor satisfied. itself.

5. Jettisoning risk management – If a PM happens to be

Self-control: Self-control and self-management to ensure
aware of good project management risk practices, they
day to day stresses are addressed and a work / life
might not have the intestinal fortitude to “sell” the necessity
balance maintained.
for these practices to their sponsor, stakeholders or
Teamwork: Creating a team atmosphere where the team team. Under pressure to deliver, if they skip risk
believes that 'we are all in this together' is a critical management, they’ll at least have the opportunity to
component to project success. improve their fire-fighting skills!

6. A blind focus on the triple constraint – While scope,

schedule & cost constraints are important, a PM might
Seven Deadly Project Manager Sins ignore the fact that a project has to deliver business value
Written by Kiron Bondale to avoid “the operation was a success, but the patient
In spite of an increased focus on competency in PM died” syndrome. Poor PMs are less likely to ask questions
conferences, journals and online knowledge sources, such as “Is this deliverable necessary to the end result”,
organizations continue to experience project failures “Are we gold-plating” or “Is this project still of value to the
at the hands of incapable PMs. organization”?
 7. Poor assumptions management – Projects possess unexpected issues. Of course, these people are not sitting
uncertainty and to try to reduce this uncertainty, we make around just waiting for something to happen. Some of
assumptions. A good PM will log critical assumptions, these people will be assigned to your project and some will
share them with the overall project team, attempt to be assigned to other projects. However, it is still important
validate them proactively, and use them as one of the for project managers to understand ahead of time where
inputs into risk identification. A bad PM will forget the they can pull people from to handle problems with the
assumptions shortly after they were made… project. Identifying these people and how they can be
utilised on the project will help the project manager deal
By no means is this list exhaustive, so I’d encourage you
with problems down the road.
to contribute some of your own in comments. Hopefully,
we can distill a comprehensive set of cardinal sins to
Use a Good Playbook
eliminate that justification for bad PMs: “I didn’t know!”
Like any good coach, a project manager needs to have a
BEING PREPARED FOR THE UNEXPECTED good playbook. What happens when a key leader on the
~ By Kenneth Darter project leaves the company, what happens when the
customer rethinks the proposed solution, or what happens
One of the joys of working on projects is that you will never when testing runs over the allotted time or too many
grow bored. All projects are different, and each has its own defects are found? All of these general problems can and
issues and unexpected occurrences. Even if the exact do occur on projects, and the project manager needs to
same system is implemented a second time, the project know how he is going to handle it. Will he look to the
will be different: the customer will have different ideas, the customer to delay, will he assign more resources to the
technology will have changed or the project team project or will he rely on executive management to work
members will have different ideas about the system. through the problems? Creating a great playbook will help
Whatever the project is, the project manager should a project manager be better prepared when problems
always be prepared for the unexpected on a project. happen.
No plan is fool proof, and there are always occurrences
that were not thought of before the project was started. Look at History
These unexpected problems can quickly turn a project The project manager should also be spending a great deal
from "green" to "red", slowing it down and in the worst of time looking at what happened in the past on other
case stopping it from moving forward. While project projects. Seeing the problems and issues that happened
managers cannot create policies and procedures for every then will help the project manager be ready for the
eventuality that might occur during the project, they can unexpected problems that can occur on the present
plan for most of the possible contingencies and create project. Understanding what worked and what did not on
processes and ideas for how to deal with those the other projects will help make the case for the
unexpected issues. The following are some ideas and scheduled contingency and will help the project manager
guidelines for project managers to keep in mind when build up his own playbook and handle the unexpected.
preparing for the unexpected. In conclusion, project managers cannot create policies and
procedures for every eventuality that might occur during a
Build Contingency Into the Schedule project; however, they can plan for unexpected problems.
The first step to dealing with the unknown occurs before It is important to include some contingency in your
the project even starts. When the schedule is being schedule, identify people who can help in the case of
created, there should be enough slack in it to account for problems, create a great playbook and review and act on
contingencies that happen during the project. A project the lessons from past projects. Being prepare for the
manager can add a buffer at the end of the schedule or unexpected will ensure you know how to react should any
during each major phase, or the project manager can over- problems arise.
estimate task durations. This sort of contingency planning
in the schedule will help everyone deal with unexpected KEEPING TOP MANAGEMENT INFORMED
problems or issues during the project execution phase. ~ By Brad Egeland
The project manager might even need to put a
contingency buffer in the scope and the budget in addition It's a given - or it should be - that we keep our project
to the schedule. clients and team well informed of project status, issues
and next steps throughout the engagement. The status
Keep Resources at the Ready report and revised project schedule should be what drive
With contingency built into the schedule, the next step is to the project on a weekly, if not daily, basis. What about the
determine what people are available to help with rest of the stakeholders? What about those at the top of
our own organisation who may not know that much about That's a very pertinent question. It should be possible
our individual projects, but certainly care about their for a summary report highlighting the key points
outcomes. On the very high visibility, or mission critical, or (achievements, progress update, risks, issues, budget
high-dollar projects, they probably care very much about and schedule variance etc) to be covered in a single
the outcome of these projects. report. This will serve the purpose for all the
Keeping Top Stakeholders Up-to-date on Project Status stakeholders. However, a separate report, containing
How, when and where you keep your top management details, is recommended for specific sets of
involved in your projects will likely depend on several key stakeholders who are closely involved and monitoring
factors: the project.
• Your organisation's infrastructure
• The make up, policies and processes of your Ethical Issues in Project Management
Project Management Office (PMO) - if a PMO
does exist When it comes to project management, ethics are
• Your personal actions or preferences extremely important in gaining the support of the project
The third option doesn't figure into the equation often. team. Ethics are defined as the moral values, beliefs, and
However, if you are in a new organisation or one that is rules that one upholds in their life on the job and
new to structured project management, your own personally to ensure right from wrong.
experiences, preferences and practices can greatly
influence how you involve senior management in your Ethical Issues
There are a number of different
projects. components of managing a project. While conducting
Undoubtedly, your report to management is likely to be project management, profit and staff motivation are often
more formal but less detailed. Here, your concern is not paramount. However, a project manager must also
with the details of execution but with whether the project remember his obligation to be an ethical, responsible
will be completed on time and within budget. Any problems employer, employee and corporate citizen. Some of the
meeting those requirements should be discussed in the ethical situations that one may face in the duration of
management progress report. project management could be the admission of
Even though your company may not require a progress wrongdoing, focus of blame, and hard choices regarding
report from you, it might be wise to suggest such a policy, contracts.




notably for longer-term projects with large budgets that
involve a large number of employees. Plus, if you are Admission of Wrongdoing
Sometimes it is difficult for
running a high-profile project, your senior management will
people to admit that they have done something wrong.
want to know how things are going at key points in the
This is especially true for a project manager, who may be
project. Is it better to have them catch you off guard in the
responsible for a large project and for overseeing a staff.
elevator, or is it better to give them a formal progress
However, ethically, if the project manager is at fault for the
report proactively? The latter will make the best
unsuccessful venture of project completion, then that
impression. For this type of progress report, budget and
project manager must be able to admit this wrong. Not
schedule reviews are essential—not to mention the need
admitting wrongdoing can greatly damage the team
to assure yourself that your efforts are aimed toward the
relationship. The unethical practice will also most likely
right objectives.
cause the team members you are in charge of to not trust
Your company may not require this of you, but I still think
the manager as well.


that it is a good idea to keep all stakeholders, at all levels,



involved. You will need to be careful about how you create
status updates for different levels of stakeholders, as Focus of Blame
When a project fails, it is so much easier
giving them the wrong level of detail may drive them away. to point the fingers at this person or that person. However,
The last thing you want is for your hard work to end up in ethically, no person should be singled out for project failure
the trash. unless it is the project manager. In the end, he or she is
the one assigned the ultimate task of ensuring the project
In Part 2 of this two-part series, we will wrap up the is completed. However, there is no “I" in team. Although
discussion of keeping top management informed of your the project manager is in charge of ensuring the task gets
project's status by looking at things like what to report and completed, sometimes a task can fail despite the project
how often to report it. We need their input and involvement manager’s best efforts. In these cases of project
from time to time, but they should not be overloaded with incompletion or failure, it should be said that the team
unnecessary information, so we will try to keep it simple. failed. This is the most ethical outcome in this sense
because it points the blame for failure on the team as a
whole instead of just one or two people. Therefore, in a so your client might still conclude that the project was not
nutshell, it is ethically wrong to blame failure to complete a as successful as it should have been. Or, your client might
project on any one person.



 believe that any achieved results were actually more
Hard Choices Regarding Contracts useful than addressing the original problem that you
When working with contracts, there are often many discussed, so your client might still conclude that the
stipulations and requirements between the two parties project was highly successful.
involved. Sometimes, these stipulations may violate ethical
beliefs and values. This is a common ethical issue that 3. The project is finished on time and within budget?
arises in areas such as defense contracts for the U.S. Often, your client has limited resources in terms of money
military. and time. Therefore, any project that did not require more
time and money than expected might be considered
What is “Success” in Project Management? successful. That might be true, especially if your client has
By Carter McNamara on December 4, 2010 the philosophy that there are always problems to be solved
Your client’s perception of project “success” is the basis in any organization and that the project was done as best
from which your client concludes, for example, whether the as could be done.
project of high quality, that money paid to you was well
spent, that you did a good job as a consultant, and 4. You and your client sustain a high-quality, working
whether you might be hired again (if you are an external relationship?
consultant). Early in the project, it is important for you and The quality of your relationship with your client is often
your client to discuss how to determine the success of the directly associated with what the client perceives to be the
project. quality of the project. In a highly collaborative approach to
Unfortunately, determining whether a project was consulting, you want your relationship with your client to be
successful or not is not nearly as easy as it might seem as open, honest and trusting as possible. The nature of
because there are numerous perspectives on what is the relationship supports your client’s strong, ongoing
project “success.” Therefore, it is important to consider all commitment and participation in the project itself, which, in
of these perspectives, especially about a complex – and turn, helps to ensure that the project effectively addresses
usually changing – project. Consider the following problems in their organization.
possible definitions of what might be considered as
“success” in your consulting project, and work with your 5. Your client learns to address similar problems by
client to select one or more. themselves in the future?
This outcome should be one of the major goals for any
1. Desired outcomes and results listed in the project consultant. However, the exact nature of the problem may
agreement are achieved? never arise in the client’s organization again, so it is often
Both you and your client should somehow specify the difficult to assess if the client has learned to solve that
overall results that the project is to achieve. Ideally, the problem. Also, few consultants are willing to scope a
results are described in terms such that you both could project to the time required to assess whether a client
readily discern if the results were achieved or not. This really can solve the same type of problem in the future.
outcome is often a measure as to whether the project was
successful or not. 6. Your client says that they would hire you again (if
you are an external consultant)?
2. The client’s problem is solved? One of the most powerful outcomes is that you both are
More times than people realize, the originally specified willing to work with each other again. One of the ethical
project results have little to do with actually solving the considerations for any consultant is to avoid creating a
most important problem in your client’s organization. That dependency of the client on the consultant – where the
occurs because, as you and your client work together to client cannot capably participate in the organization
examine and address their overall problem, you both without the ongoing services of the consultant. However, it
realize that there is a more important problem to is not uncommon that the client strongly believes that the
address. At that time, it is wise to change your project quality of the relationship with the consultant is as
plans if both of you agree. Discuss the new results that important as the consultant’s expertise. The client might
you prefer and how you will know whether or not they are choose to use that consultant wherever and whenever
achieved. they can in the future.
Still, later on, your client might believe that any agreed-to
results that were achieved from the project were not as
important as addressing any current, unsolved problems,
7. You get paid in full?
This perspective might sound rather trite. However, you What Is a Leader?
might feel good about the quality and progress of a project Perhaps the greatest separation between management
only to conclude, later on, if you have not been paid as and leadership is that leaders do not have to hold a
promised, that the project was not successful. management position. That is, a person can become a
Are All Managers Leaders? leader without a formal title. Any individual can become a
Ask yourself this question: are all managers leaders? leader because the basis of leadership is on the personal
Some of you will quickly answer 'yes' assuming the two qualities of the leader. People are willing to follow the
are synonymous with one another. Others will think back leader because of who he or she is and what the leader
to some of their managers and evaluate them as someone stands for, not because they have to due to the authority
who they either do or do not consider a leader. Many of bestowed onto him or her by the organization. The leader
you might immediately respond 'no' to this question will show passion and personal investment in the success
because you have heard of the management versus of his or her followers reaching their goals, which may be
leadership debate in the past and know very well that the different from organizational goals.
two are, in fact, quite different. Regardless of your initial A leader has no formal, tangible power over their followers.
response to this question, this lesson will present Power is awarded to the leader on a temporary basis and
arguments that place a manager and a leader into two is contingent upon the leader's ability to continue to
separate categories, each with their own defining motivate and inspire followership. Notice the shift in
characteristics. This is not to say that there are not terminology here: managers have subordinates, while
similarities between managers and leaders; rather, the leaders have followers. Subordinates do not have a choice
essence of this lesson is to show that not all managers are but to listen to the demands and wishes of their managers,
in fact leaders. but following is (and always will be) a voluntary choice for
those who follow a leader. Those who no longer wish to
What Is a Manager? follow the leader will simply stop. That is, if an employee
A manager is a person in an organization who is initially sees his or her manager as a leader and eventually
responsible for carrying out the four functions of ceases to be inspired by that manager, the employee will
management, including planning, organizing, leading and still obey the manager, but only because the employee is
controlling. You will notice that one of the functions is required to do so, not because he or she wants to.
leadership, so you might ask yourself if it would be safe to Leadership is about effectiveness through trust, inspiration
assume that all managers are leaders. Theoretically, yes - and people. Leaders often challenge the status quo that
all managers would be leaders if (and this is a big 'if') they managers spend much of their time upholding to bring
effectively carry out their leadership responsibilities to innovation to organizations. Leadership is visionary,
communicate, motivate, inspire and encourage employees change-savvy, creative, agile and adaptive. Managers are
towards a higher level of productivity. However, not all concerned with the bottom line, while leaders spend time
managers are leaders simply because not all managers looking at the horizon.
can do all of those items just listed. An employee will
follow the directions of a manager for how to perform a job Three Differences between Managers and
because they have to, but an employee will voluntarily Leaders
follow the directions of a leader because they believe in
who they are as a person, what they stand for and for the Counting value vs Creating value. You’re probably
manner in which they are inspired by their leader. A counting value, not adding it, if you’re managing people.
manager becomes a manager by virtue of their position, Only managers count value; some even reduce value by
and subordinates will follow the manager because of his or disabling those who add value. If a diamond cutter is
her job description and title. asked to report every 15 minutes how many stones he has
Because managers are responsible for carrying out the cut, by distracting him, his boss is subtracting value.
four functions of management, their primary concern is to By contrast, leaders focuses on creating value, saying: “I’d
accomplish organizational goals. Managers get paid to get like you to handle A while I deal with B.” He or she
things done in organizations. As such, the manager is generates value over and above that which the team
accountable for themselves as well as the behavior and creates, and is as much a value-creator as his or her
performance of his or her employees. A manager has the followers are. Leading by example and leading by enabling
authority and power to hire, promote, discipline and fire people are the hallmarks of action-based leadership.
employees based on those behaviors and performance.
Management is about efficiency and getting results though Circles of influence vs Circles of power. Just as
systems, processes, procedures, controls and structure. managers have subordinates and leaders have followers,
managers create circles of power while leaders create • Inspiration: inspire your team to be all they can by
circles of influence. making sure they understand their role in the
The quickest way to figure out which of the two you’re bigger picture
doing is to count the number of people outside your • Ability to Challenge: do not be afraid to challenge
reporting hierarchy who come to you for advice. The more the status quo, do things differently and have the
that do, the more likely it is that you are perceived to be a courage to think outside the box
leader. • Communication Skills: keep your team informed of
the journey, where you are, where you are
Leading people vs Managing work. Management heading and share any roadblocks you may
consists of controlling a group or a set of entities to encounter along the way
accomplish a goal. Leadership refers to an individual’s
ability to influence, motivate, and enable others to SOME OF THE COMMON TRAITS SHARED BY
contribute toward organizational success. Influence and STRONG MANAGERS ARE:
inspiration separate leaders from managers, not power • Being Able to Execute a Vision: take a strategic
and control. vision and break it down into a roadmap to be
In India, M.K. Gandhi inspired millions of people to fight for followed by the team
their rights, and he walked shoulder to shoulder with them • Ability to Direct: day-to-day work efforts, review
so India could achieve independence in 1947. His vision resources needed and anticipate needs along the
became everyone’s dream and ensured that the country’s way
push for independence was unstoppable. The world needs • Process Management: establish work rules,
leaders like him who can think beyond problems, have a processes, standards and operating procedures
vision, and inspire people to convert challenges into • People Focused: look after your people, their
opportunities, a step at a time. needs, listen to them and involve them
I encouraged my colleague to put this theory to the test by In order for you to engage your staff in providing the best
inviting his team-mates for chats. When they stop service to your guests, clients or partners, you must enroll
discussing the tasks at hand — and talk about vision, them in your vision and align their perceptions and
purpose, and aspirations instead, that’s when you will behaviours. You need to get them excited about where
know you have become a leader. you are taking them while making sure they know what’s in
**** it for them. With smaller organizations, the challenge lies in
making sure you are both leading your team as well as
Is a good manager automatically a good leader? What managing your day to day operation. Those who are able
is the difference between leadership and to do both, will create a competitive advantage. Are you
management? both a leader and a manager; what would your staff say if
The main difference between leaders and managers is that you were to ask them?
leaders have people follow them while managers have
people who work for them.
A successful business owner needs to be both a strong
leader and manager to get their team on board to follow
them towards their vision of success. Leadership is about
getting people to understand and believe in your vision
and to work with you to achieve your goals while managing
is more about administering and making sure the day-to-
day things are happening as they should.
WHILE THERE ARE MANY TRAITS THAT MAKE UP A
STRONG LEADER, SOME OF THE KEY
CHARACTERISTICS ARE:
• Honesty & Integrity: are crucial to get your people
to believe you and buy in to the journey you are
taking them on
• Vision: know where you are, where you want to go
and enroll your team in charting a path for the
future