Starbucks. Netflix and Social Media Marketing

Introduction

Today’s post will explore the success of Starbucks and Netflix on the Internet, particularly with Social Media. It will explore why Starbucks puts so much emphasis on social media like Facebook and Twitter and how these sites compare to their homegrown site. The question for Netflix is whether or not the Cinematch search tool is responsible for NetFlix’s success as a business or is it due to them moving to total streaming of movies and TV shows that created their success?

Starbucks

Starbucks, according to some people, makes great coffee. Their staffs of baristas are friendly, and their stores located just about everywhere in America. They even have stores in China. They’re known for their killer social media strategy (Huff, 2014).

Here are some of the stats:

●     36 million Facebook likes

●     12 million Twitter followers

●     93K YouTube subscribers

Those numbers are very impressive. There’s no doubt Starbucks is big on social media, but, why do they do it? Starbucks focus is on its customer base. Their customers are young, social media savvy, and affluent. They’re into the latest thing. On Facebook, the Starbucks management doesn’t post too often; they let their fans do all the talking. But when management does post, it’s usually fun things like contests, tips on things, as well as low-key sales pitches. Starbucks also allows customers to reload their Starbucks mobile card from Facebook. It’s all about creating relationships with existing customers to increase sales and add new customers. Free advertising from existing customer from their feedback adds on new customers at virtually no cost.

On Twitter, Starbucks connects with followers who want to catch up on the latest news and updates and the staff uses Twitter as a service reaching out to customers who are talking about their experiences with the stores and products. The staff checks out Twitter all day long to help keep satisfied customers satisfied and to settle any problems quickly before they get out of hand.

The similarities between Starbucks homegrown site, http://mystarbucksidea.force.com/, And Facebook or Twitter is that while getting customers is good, keeping them is even better. With over 23,000 stores, the company has reached a point where advertising on TV or radio has only so much impact. It no practices f-Commerce where developing social relationships online becomes critically important to keep customers (Turban, 2012). There are similarities on each of the social media sites that Starbucks has a presence, such as encouraging ideas for new drinks are food, attending social events at a nearby store. But each of these sites serves a different clientele. Facebook, for instance, is more family oriented than Twitter, which is more individualistic. All have a love for coffee which is the commonality of this community. Starbucks needs to use these other social media outlets so that it captures every possible customer. And the relationship needs to be tailored to fit the audience, a time-honored tradition in sales. The message can be the same, only stated differently for each audience (McNamara & Moore-Mangin, 2015).

Netflix

Was the reason for Netflix’s success due to implementing the Cinematch search engine on its system? Yes, it was a major contribution because of its ability to conduct extensive data mining; this software agent uses data mining apps to sort through a database of more than 3 billion films and customers’ rental history. Cinematch suggests different movies to rent to the customer. It’s a personalization similar to that offered by amazon.com when it suggests different book titles customers. The basis of the recommendation is a comparison of the individual’s likes and preferences, comparing them to people with similar tastes. With this type of suggestive system, Netflix tells subscribers which movies they probably would like and shows a comparison of what other similar people are watching.

Netflix has already successfully moved from just DVD rentals to streaming video. They have, in fact, been offering television series shows that has drawn in an even larger audience that has helped to increase their revenues beyond what just renting movies could do (Cohen, 2013).

Conclusion

Both Starbucks and Netflix have successfully moved into the Web 2.0 world using social media and search tools effectively to meet their customer’s needs and demands. Netflix moved successfully from being a DVD movie rental business doing mail-order only business, to becoming the preeminent streaming entertainment company with millions of subscribers. Both companies managed to take current technology and develop systems that meet the customer’s needs and making themselves very profitable with bright futures.

References:

Cohen, P. (2013, April 23). Forbes Welcome. Retrieved from http://www.forbes.com/sites/petercohan

/2013/04/23/how-netflix-reinvented-itself/#61f9c77d74ea

Huff, T. (2014, August 23). How Starbucks Crushes It on Social Media | Social Media Today. Retrieved

from http://www.socialmediatoday.com/content/how-starbucks-crushes-it-social-media

McNamara, T., & Moore-Mangin, A. (2015, August 3). Starbucks and Social Media: It’s About More than

Just Coffee – EContent Magazine. Retrieved from

http://www.econtentmag.com/Articles/Editorial/Commentary/Starbucks-and-Social-Media-Its-

About-More-than-Just-Coffee-103823.htm

Turban, E. (2012). Electronic commerce 2012: A managerial and social networks

perspective. Upper Saddle River, NJ: Pearson Prentice Hall.

Social Commerce & Marketing

Introduction

Amazon.com has numerous elements that allow customers to personalize and customize features and products. The question to ask is how effective are the various elements? Do they cause a customer to buy more products? Wal-Mart, too, has similar elements built into the eCommerce (EC) site. Is it effective and will it be a cause of concern for Amazon? Will Amazon continue to be the dominant force in etailing or will Wal-Mart, being the economic juggernaut that it is, prove to be a force to be reckoned with? Wal-Mart, after all, does have a history of displacing so-called leaders in the market when it opens a new store. This paper explores these questions to help better understand the dynamics at play here in eCommerce.

Personalization

Three personalization items to note are “Wishlists,” “Featured Recommendations” and “Recently Viewed.” Wish Lists allow the customer to create separate lists of items they might like to buy at some future time for themselves or someone else. An interesting thing about these lists is that if the customer waits long enough, they could see a significant drop in price. Amazon provides a way for me to schedule recurring orders for products that I use on a regular basis. The “Recommended for me” and “Recently Viewed” are Amazon’s way of suggestive advertising to see if the customer would consider buying more. It’s much like add-on products or like accessorizing; adding a matching pair of shoes to the dress you just bought (Amazon, 2016).

Where the real personalization takes place is with meeting the customers’ needs and one of the things that Amazon is known for is being a pioneer in personalization. Their use of data mining technology to make the consumer shopping experience much more memorable and exciting is being mimicked by all others, including Wal-Mart. Amazon uses the data gathered on its customer’s activities, besides to make the shopping experience more memorable to the shopper, it informs sellers what they should carry in inventory, how much they should carry in inventory, and what times of the year they should carry this suggested inventory (Rao, 2013).

Customization

Something to take note of is the types of customization in question here; one is for customizing products to meet consumer’s needs; much like what Dell Computers does for example.  Secondly is for customizing web experience such as in allowing consumers to choose what they would like to see on their “page” and what the website shows you based on your previous activity. A customizable product would be difficult for Amazon to do since they’re an eTailer and not a manufacturer like Dell Computers for instance; that doesn’t prevent Amazon from aligning with manufacturers, like Dell to provide the consumer the ability to buy customizable products through Amazon. Amazon would certainly have to ensure a good fit since Amazon is a destination and most people wouldn’t consider Amazon to be a destination for buying a car, for instance. But Amazon does, to somewhat the same extent as Dell, provide available customization on some products, for instance, golf clubs or purchasing dress shirts. But it’s limited to what the manufacturer is willing to offer, much the same as Dell does, for instance. As for customization of the interface of either Amazon or Wal-Mart’s websites, there is no evidence that either allows for such customization (Amazon, 2016).

Amazon versus Wal-Mart

Money

Will Wal-Mart be able to beat out Amazon online? Likely it will be an interesting battle, especially since Amazon recently became bigger than Wal-Mart with a market cap of $246 billion versus $230 billion respectively. Even though Wal-Mart’s overall sales are still greater than Amazon’s, Amazon is smoking Wal-Mart in eCommerce (D’Onfro, 2015). Amazon’s EC shopping has been seeing bigger and bigger sales percentage increases than Wal-Mart’s EC and brick-and-mortar combined, with the share of EC percentage of total sales rising from a mere 0.6% to 7% from 1999 to 2015 showing quarterly increases almost triple that of brick and mortar.

But other numbers spell out a clearer picture of the differences between Amazon and Wal-Mart: Wal-Mart has far more employees: 2.2 million to Amazon’s 154,100. Net sales are clearly a victory for Wal-Mart coming in with $482.2 billion versus Amazon’s $88.988 billion. But the following is where the difference is: Amazon’s year over year growth versus Wal-Marts has been 20% to 1.9%. Amazon’s product offerings equal 250 million versus Wal-Marts mere 4.2 million. Amazon adds 75,000 new products per day while Wal-Mart opened 115 new supercenters last year, and Amazon reaches 244 million active users with 154,000 employees versus Wal-Mart’s 2.2 million employees.  The numbers tell the story (Peterson, 2015).

Avatars

In EC avatars have become quite common. They’re used extensively in eLearning and customer support. These are referred to as picons (personal icons), but that has long since stopped. Avatar as a word is derived from Hindu and is stands for the “descent” of a deity in a terrestrial out of body form (Avater-Wikipedia, 2015). Using an avatar can certainly be more efficient for the company since it doesn’t have actually to pay an actor or hire an actual human to interface with a customer; it seems that some people could be turned off from using one. It’s much like going through an automated answering system when you call your insurance company, very frustrating. Since the company using the avatar has to try to predict what the customer is going to ask commonly, it makes it difficult for that customer who asks a question that doesn’t quite fit the mold.

But in virtual world websites like in Second Life, the blend of virtual-world EC and the real world creates opportunities for creative marketers. Companies like MacDonald’s and Dell have created few instances of selling real-world products in virtual worlds to real-world customers and delivered them to their real-world addresses (Hemp, 2006)

Banner Advertising

A banner ad is an advertisement usually displayed across the top of a web page or along the side of the page and is commonly served up by an ad server. This advertising form is embedded into the web page. Its intention is to attract traffic to an advertiser’s website accessible because the ad hyperlinks to the advertiser’s website. Web banners function much like traditional advertisements in print media function: they serve to attract immediate attention to whatever the advertiser is selling in the hopes the viewer will be attracted and enticed enough to click on the ad. Interestingly, this data can be tracked from the ad: how many times the ad displayed; how many clicks; how far those who clicked went into the hyperlinked website from clicking in and out to actually purchasing the product (Web Banner-Wikipedia, 2015). What makes any ad popular? Banner ads are a quick and easy way to place your wares in front of millions of people all at once. Traditional full-page newspaper ads don’t even get that kind of coverage. Tracking a web page banner ad is certainly far simpler than tracking an ad in the yellow pages. And you can advertise just about any product from automobiles to children’s toys to food. Banner ads are much like billboard advertising because people are likely only taking a quick glance; makes it so they’re more appropriate for brand reinforcement than for unique product advertising.

Conclusion

As you can see, Amazon doesn’t need to fear Wal-Mart running it over in the EC world anytime soon. In fact, Wal-Mart needs to pick up the pace a tad bit it would seem (Peterson, 2015). Judging from the numbers, it seems Wal-Mart’s cost per sale is higher than Amazon’s. After all, Amazon is doing much more overall with a lot less personnel than Wal-Mart.

Avatars and banner ads certainly have their place in the EC world. Baner ads placement or use is limited: banner ads are placed somewhere in whatever medium happens to be popular at the moment. It used to be newspapers and magazines; now it’s the internet.  Avatars are useful in areas like eLearning or introducing potential customers initially to a product or a service. The hope here, like banner ads, is that you click to exploring further into the connected website and possibly buy.

References:

Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more. (2016, February 13). Retrieved from https://www.amazon.com

Avatar (computing) – Wikipedia, the free encyclopedia. (2015, October 28). Retrieved February 13, 2016, from https://en.wikipedia.org/wiki/Avatar_%28computing%29

D’Onfro, J. (2015, July 25). Wal-Mart is losing the war against Amazon. Retrieved from http://www.businessinsider.com/wal-mart-ecommerce-vs-amazon-2015-7

Hemp, P. (2006, June). Avatar-Based Marketing. Retrieved from https://hbr.org/2006/06/avatar-based-marketing

Peterson, H. (2015, July 13). The key differences between Wal-Mart and Amazon in one chart. Retrieved from http://www.businessinsider.com/amazon-vs-wal-mart-in-one-chart-2015-7

Rao, L. (2013, August 31). How Amazon Is Tackling Personalization And Curation For Sellers On Its Marketplace | TechCrunch. Retrieved from http://techcrunch.com/2013/08/31/how-amazon-is-tackling-personalization-and-curation-for-sellers-on-its-marketplace/

Web banner – Wikipedia, the free encyclopedia. (2015, December 30). Retrieved February 13, 2016, from https://en.wikipedia.org/wiki/Web_banner

eGovernment & Technology

Introduction

eGovernment use of technology has grown over the years from using totally internal systems open only to government workers to today’s internet based systems that allow citizens to interact with their government. Government services today allow citizens to pay local utility bills online, pay taxes, and seek out government services to assist with building a business to getting a road repaired. Citizens can even read the minutes of the last board meeting and download a copy if they wish. Much of this interaction between government and its constituents can be done 24 hours a day, seven days a week, 365 days a year (Joseph, 2015).

But there will be a mix of ePortal style government sites in use for the foreseeable future. Much of this is due to the cost of creating and maintaining these web properties. Most local governments are ill-positioned to spend the tax dollars. Nor do they have the qualified personnel to manage the current system or to change to an internet based system. And, a basic mistrust on the part of local governments in using an internet based system; mostly with the security of such a system and their ability to control it. This post will explore various aspects of eGovernment and m-Commerce.

eGovernment Portal or Social Networking

The advantages of changing eGovernment from an ePortal system to a social networking system are in improving the efficiency over of the current system of paper-based work. It reduces the need for manpower needed in dealing with the bulk of paper-based work. Thus, it allows for involvement of the process by fewer employees, quicker service, and, therefore, leading to reduced operations cost (Tolley & Mundy, 2009). Other benefits include an increased participation by citizens in the activities of the government due to more information being literally at your fingertips. There is greater transparency in how the government operates and less chance for corruption to occur (Andersen, 2009).

Will government switch from an ePortal, or even paper based, system to a social networking system? The answer is an unequivocal yes. The reasons are that the technology will force the change. Society will force the change. Other levels of government will force the change. Changes in support for equipment, as well as the expense of maintaining the equipment, will cause local governments to switch to cloud-based applications. Constituents will make demands for information or assistance that requires easy access 24 hours a day.

Internal Initiatives

Internal initiatives provide tools that make government operations efficient and effective. Such applications as e-Payroll can consolidate dozens of different payroll systems into one easily managed system where employees can input their time worked, and the system automatically deposits their paycheck into their bank account. Other initiatives include records keeping, training of personnel, litigation case management, procurement management, personnel management and equipment management (Turban, 2012). All of these different apps run on an enterprise system very similar to what is used in many corporations today. All of these systems run across the enterprise on the internet successfully and securely.

The Role of Wikis and Blogs

Wikis and blogs serve the system by allowing groups and departments to collaborate on solving issues and problems. Many of these problems are cross-functional, and wikis allow the participants to be able to share information quickly and at less cost than having to make numerous copies for everyone. Wiki’s allow everyone to access all documents needed to hold a meeting. Wikis and blogs are valuable tools for sharing information and making decisions in government.

Strategic Advantage of m-Commerce

The strategic advantage of m-Commerce includes increasing the geographic area in which even a small company can sell a product. Many companies that make it big on the internet wouldn’t have done so if the internet didn’t exist because it would force them to sell in a smaller geographic location. These companies may be selling a specialized service or product which locally there isn’t much interest, but worldwide there is a huge market. The strategic advantage these companies have is the ability to reach those customers using m-Commerce that they would otherwise have to employ other methods such as advertising in national publications or on television; both very expensive alternatives. m-Commerce is growing by leaps and bounds every year. Two years ago sales for smartphones was greater than sales for laptops. Forecasts have sales for Ipads and tablets overtaking laptop sales by 2016 (Blodget, 2013).

m-Commerce provides true personalization because it provides the means to access personal information immediately from the palm of your hand. Medical Insurance companies such as Blue Cross Blue Shield, and Medical providers such as Advocate Health Care, provide mobile apps that provide immediate access to patient information. Patients become more involved with their care, and the portals provide information, such as what medicines they take and in what doses, upon request.

Conducting m-Commerce on Social Networks

The benefits of conducting m-Commerce on social network include increased sales because of being able to order from anywhere at any time. The ability for location-based sales benefit local business people, whose wares sell only in the local area; an example is a local restaurant that caters to the local community. M-Commerce provides a local channel for coupons providing a wider reach. It provides for improved customer satisfaction due to real-time apps providing direct information which helps increase sales. Reduces costs such as training and help-desk support staff. It improves the productivity of mobile employees such as service technicians repairing in-home appliances. iPads and tablets have been programmed to provide technicians with the tools in which to test or look up parts information; being able to place an order for parts saves time and money for both customer and supplier. Entertainment comes right to the user’s smartphone allowing them to watch a movie or television show any time of the day or night. Pizza can be ordered from your smartphone while on the way home from work, paid for using a credit card, and be on your table 20 minutes later. M-Commerce comes to users over a nationwide private communications network that the users do not have to maintain, yet regulated by the government for the good of all.

Conclusion

It stands to reason that what New Zealand is doing has helped to make their government run more efficiently because they’re sharing information across departments by using the various wikis and blog tools available. Internet technologies allowed them to share that information with the general public thus affording them valuable feedback that otherwise would have been cumbersome to gather. Many governments here in the US could certainly learn how to improve their m-Commerce sites by studying what New Zealand is doing today.

References:

Andersen, K. V., & Henriksen, H. Z. (2006). E-government maturity models:

Extension of the Layne and Lee model. Government Information Quarterly, 23(2),

236-248.

Blodget, H. (2013, December 11). Number of Smartphones, Tablets, and PCs –

Business Insider. Retrieved from http://www.businessinsider.com/number-of

smartphones-tablets-pcs-2013-12

Joseph, S. (2015, September 1). Advantages and disadvantages of E- government

implementation: Retrieved from https://www.researchgate.net

Tolley, A., & Mundy, D. (2009). Towards workable privacy for UK e-government on the

web. IJEG, 2(1), 74. doi:10.1504/ijeg.2009.024965

Turban, E. (2012). Electronic commerce 2012: A managerial and social networks

perspective. Upper Saddle River, NJ: Pearson Prentice Hall.

Mass Customization in eCommerce

The idea behind mass-customization is to create specific products based on the customer’s needs and to deliver that product quickly. Personalization is where the customer’s preferences are aligned with the products being advertised.

Personalization is quite common on Social Media like Facebook or Google. If you mention on FaceBook that you’re thinking about buying a car, you will begin to see ads for cars on your FaceBook site. Likely you will also see those ads on Google as they see what topics I’m searching.  What is interesting about personalization is not that neither Google nor FaceBook really care, nor does the advertiser, who you are, they just care that you’ve expressed an interest in a topic. The advertiser has bought certain keywords from either Google or FaceBook so that when those keywords are used that advertisers ads will appear.  The FaceBook user is unknown to the advertiser until the user decides to let the advertiser know their identity.

Knowledge of your interests can be kept in on a cookie that contains as a user profile and is put on your hard drive of your computer, frequently without you knowing about it or without your permission (Turban, 2012). Some sites do it differently. Amazon, for instance, uses your past buying history to determine the ads or suggestion you see. Google just simply relies on current information as you’re browsing. Personalization also extends to cell phones, tablets, and other forms of digital media (Personalization-Wikipedia, 2016).

Mass-customization is where the customer gets to order a product based on their preferences and it is usually delivered within a short period of time (McCarthy, 2004). Dell Computers is a prime example of a company that has mass-customization down to a science (Mass-Customization-Wikipedia, 2016). The customer will place an order for a laptop that contains certain features they prefer. The customer pays for the order via credit card; Dell sends the order to the factory which produces the ordered laptop. The laptop is then shipped to the customer, usually within 1 week. Mass customization aims to deliver customized products while using the efficiency of mass production (Chen, 2009). The idea is to be to control the costs of production while also meeting the demands of the market.

Amazon’s critical success factors are in its basic challenge: How does it sell consumer goods online and show a profit and decent return on investment. Amazon sells in three basic categories: media, electronics, and other products including Kindle, office supplies, cameras, and toys (Turban, 2012). Amazon has to ensure that it is the innovator in the field constantly staying ahead of the competition in offering a broad variety of products, make it easy to buy from them and even allow the customer to easily return products when not satisfied. This is a good strategy as it makes it a one stop shop online. One just needs to look at Wal-Mart or Target to see the success of one stop shopping. By making it easy to do business with them, Amazon makes it the destination of choice whenever one is shopping, wherever one is shopping. The shopper can access Amazon via their smartphone in Wal-Mart and do comparison shopping right on the spot; even buy it while standing in the store. All of this makes it so that Amazon will continue to grow into the foreseeable future (Amazon-Wikipedia, 2016).

Having recently bought an iPhone 6S+ I was able to go to the Apple website and view the phone, see the different features, and weigh various price breaks. From their website I was able to make the decision between the smaller versions versus the bigger versions by viewing the differences online. But full trust in what I was buying didn’t occur until I went to the Apple store to actually touch and feel the product.

One way that online retailers have solved the problem of trust is by allowing shoppers to buy and easily return, satisfaction guaranteed. Zappos is a prime example of where a customer can buy several sizes of the same shoe, try them on, and return those items that don’t satisfy (Zappos-Wikipedia, 2015). Online trust is difficult to achieve due to the fact that a potential customer cannot touch or examine the product. Without a good return policy, many people will simply not buy the product. Another good policy is allowing customers to rate the product. Amazon encourages and publishes customer opinions on their purchases because they know it encourages others to buy.

References:

Amazon.com – Wikipedia, the free encyclopedia. (2016, February 11). Retrieved February 11, 2016, from

https://en.wikipedia.org/wiki/Amazon.com
Chen, S., Wang, Y., & Tseng, M. (2009). Mass customisation as a collaborative engineering effort.

International Journal of Collaborative Engineering, 1(1), 152.

Mass customization – Wikipedia, the free encyclopedia. (2016, January 4). Retrieved February 11, 2016,

from https://en.wikipedia.org/wiki/Mass_customization

McCarthy, I. P. (2004). Special issue editorial: the what, why and how of mass customization. Production

Planning & Control, 15(4), 347-351. doi:10.1080/0953728042000238854

Personalization – Wikipedia, the free encyclopedia. (2016, February 11). Retrieved February 11, 2016, from

https://en.wikipedia.org/wiki/Personalization

Turban, E. (2012). Electronic commerce 2012: A managerial and social networks perspective. Upper Saddle

River, NJ: Pearson Prentice Hall.

Zappos – Wikipedia, the free encyclopedia. (2015, December 15). Retrieved February 11, 2016, from

https://en.wikipedia.org/wiki/Zappos

Conflict Resolution in Project Management

Introduction:

Conflict in project management is very much like conflict in a marriage: it’s going to happen. The key is in the process used to resolve the conflict. The likelihood that conflict occurs in information systems development projects is extremely high because the individuals involved are from different backgrounds and cultures working together in the project. Conflicts can arise due to differences in values, needs, perceptions, and personalities. Appropriate skills in dealing with conflict can help project managers to handle conflicts effectively and lead to a successful conclusion of the project.
Amy Ohlendorf discusses in her article that conflict is a state in which different parties are aware of the incompatibility of their positions with each other and that these parties choose to hold those positions even though they know them to be incompatible (Ohlendorf, 2001). In her article she discusses how to understand the pros and cons of conflict; how it can be both beneficial and detrimental to the project.

Conflict Causes:

We have to realize that the environment the Project Manager works in can be characterized by large cultural diversity (PMBOK, 2013). Teams are made up of people with many different experiences, come from many different countries; each with their own unique culture and language. Their values will be very different from the Project Manager and other members of the team. These differences will cause them to look and perceive the expectations of the project completely different from other team members. What the Project Manager should do is use these differences to the advantage of the project and the team (PMBOK, 2013). Ms. Ohlendorf points out that these differences can aid in strengthening the project outcome as well as the organization overall if one takes a positive proactive approach (Ohlendorf, 2001).

Storming Stage and Conflict Resolution Approaches

The Project Manager has to realize that not all conflict is bad (Wong, 2007) in fact, some conflict can actually aid in pushing the project through complex problems. A good debate amongst peers can actually help to bring them closer together into a tighter working relationship. These types of debates generally will occur, as described in the Tuckman Ladder (cited in PMBOK, 2013), during the storming stage in a project. Many times conflicts can arise during this stage.

The Project Manager can use a number of approaches to resolving conflicts (Kerzner, 2001):

•    Confronting –The conflicting parties meet face-to-face to collaborate and come to an agreement to resolve the issue. This style involves open and direct communication which should lead the way to solving the problem. It should be used when it is early in the project so you have time, conflicting parties need a win-win, and it helps to foster good working relations.

•    Compromising – Also known as give and take. In this case both parties need to win but you don’t have the luxury of time. A decision needs to be made and coming to the middle ground can help move things along. The thing with compromising is that all involved may get a little of something, but they don’t everything. Some might consider that better than nothing at all while others will feel they got too little. The Project Manager has to be prepared to use a little smoothing when using this approach.

•    Smoothing – Some refer to this as an accommodating or agreeable way to come to resolution in an argument. I would use this if the stakes are low and I want to pocket some good will for down the road.

•    Forcing – Used when a decision has to be made due to time or cost and the conflicting parties are not being agreeable. I’ve used this when the project simply had no more wiggle room or the sponsors basically said do it. I have used this in conjunction with smoothing so as not to have too many ruffled feathers.

•    Avoiding – This approach is used when there is time to avoid so that you can better prepare yourself for a future discussion. You can use avoidance when the cost or the risk is low. But avoidance is not something that can be used very often. Ignoring the problem doesn’t make it go away. Smoothing might be in order here due to the need to placate until better prepared.

The impact on the project when using the above approaches has been shown to either lesson the amount of conflict or increase it. I have found that using the above approaches, while applicable in all stages (forming, norming, performing, and adjourning) I have found them used to a greater amount during the storming stage. A more confronting style has shown to limit the amount of conflict later in the project due to resolving issues early on rather using compromising, smoothing, or avoidance. Forcing can be one of the worst when it comes to lessening conflict as it usually leaves team members with hard feelings making them less likely to want to work on the project since their needs aren’t being met (Wong, 2007). The manner in which the Project Manager approaches conflict creates the manner in which the team responds to conflict in the future. Starting out by avoiding conflict will only increase the chances of it occurring as, or if, the project progresses (Ohlendorf, 2001).

Cognitive Analysis Approach:

I have found that the Project Manager needs to take what is referred to as a cognitive analysis approach to conflict resolution. The cognitive approach says that conflict is mainly due to perceptive differences between conflicting individuals. Using the confronting approach with cognitive analysis allows for feedback to be presented allowing for each side to gain insight into what the other is thinking. This insight gives conflicting teammates an opening to reach a satisfactory resolution to the conflicting issue. By identifying the real issue in the conflict resolution it allowed each side to concentrate on the real issue, not side issues which tend to be emotional. Each teammate comes to a greater understanding and appreciation of the other thus creating a cohesive working relationship (Ohlendorf, 2001).

Listening:

One of the top skills that the Project Manager needs throughout these approaches is their ability to listen. And keep in mind that listening works both with the Project Manager and with the team member. Many times team members are busy trying to figure out how to win the argument rather than listening to what the other team member is saying. This behavior is particularly prevalent when the project has been doing a lot of avoidance or when the issue has been forced due to an uncompromising party to the conflict. Recently a conflict arose in my current project due to a decision forced on one team by another team impacted by the needs of the project. The team that had forced the original decision was now finding itself in the position to have to defend that decision to the sponsors of the project. They were trying to wiggle their way out of it and just kept digging that hole deeper and deeper. They weren’t listening, even when the team they had forced the original decision on was offering a face saving compromise. Listening would have led them to resolving the issue. Not listening almost caused irreparable damage the project as well as to relationships and reputations.

Conclusion:

Conflict in project management is inevitable but when properly managed it can lead to favorable conditions. However, conflict can be very detrimental to a project if it is not well managed. For Project Managers the challenge is to try to find what the right amount of conflict in project management is. By understanding the subtleties of conflict, and learning the nuances of the different approaches to conflict resolution, Project Managers can establish an atmosphere in which comradery is encouraged and the project goals are reached.

References:

Kerzner, H. (2001). Project management: A systems approach to planning, scheduling, and controlling. New York: John Wiley.
Ohlendorf, A. (2001). Conflict resolution in project management. Information Systems Analysis.
Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK guide), fifth edition. Newtown Square, PA: Author.
Wong, Z. (2007). Human factors in project management: Concepts, tools, and techniques for inspiring teamwork and motivation. San Francisco: Jossey-Bass.

Team Building – A Critique

Trust has been shown to be of utmost importance to delivering projects successfully. Without even the best planned projects can fail. Without trust the project is doomed to continually fighting battles that threaten the team’s ability to deliver a quality product/service on time and within budget.

Introduction:
Dictionary.com (2015) defines trust as a reliance on the integrity, strength, ability, surety, etc., of a person or thing; confidence. It is a confident expectation, a hope that someone or something is going to deliver as promised On a project team the members of the team fully expect and trust that the project leadership to manage the project efficiently. But it’s a trust that has to be earned, and not just by the projects management team; it has to be earned by everyone in order for the project to be successful.
Valerie Lynn Herzog conducted a study: Trust Building on Corporate Collaborative Project Teams (Herzog, 2001) in which she determined that trust is a huge factor in the successful completion of a project. But, there is a process the group needs to go through in order to build trust amongst the team members. Ms. Herzog’s paper concentrates on the team collaborative trust building because many times teams are chosen and the team only has the opportunity to work together, many times without really knowing one another.

Team Building:
Herzog’s study centers around building trust through collaborative efforts; such as shared processes, honest communications and just getting along (Herzog, 2001). She had found that while upper management many times have the choice of whom they will work with, team members are usually assigned to a project with little choice but to accept the assignment (Herzog, 2007).

I know this to be true in my assignments. Even as Project Manager, I’m generally not given the choice of which projects I will be managing. In fact, I’m rarely given the choice of which resources are assigned to my projects.

Research has found that levels of trust are based on the collaborative team member’s perception of themselves, of other team members, and of other stakeholders in the project (Herzog, 2007). These trust levels really embody the key behaviors that are needed for project or team success: Mutual trust; Interdependency; Accountability; valuing individual differences; Transparency, and learning and recognition (Wong, 2007). Without these, even a well-planned project could be doomed to fail because no one trusts each other. Without these key behaviors; particularly mutual trust, a project is usually doomed to failure, or worse, a long agonizing path to success.

Perceptions of Team:
In the study Herzog interviewed 20 participants from 4 different IT projects. The participants had positions on the teams ranging from Senior Manager to Junior Technical Designers. The participants included Project Managers, Business Analysts, Programmers, Senior Managers, and Program Managers.
Perceptions of different issue or deliverables in the project appear to be universal. For example, the charter was seen as a lot of nice to haves but not to be taken seriously since no one really looks at once its produced (Herzog, 2007) The reality is that the Charter is the most important document in a project. It contains the project purpose, high level requirements, the project scope (PMBOK, 2013). Part of the trust has to be delivered through the charter. Team members like to feel that what they’re doing has meaning. Without any meaning then the team wonders why they’re doing what is being asked of them.

Collaborative Sharing:
Using collaborative sharing helps to bring the team together, especially in the beginning of the project. Each individual team member comes into the project with their own perception of what is involved. And, most likely, with how to solve the problem or to create the solution that brings the project to a successful conclusion. Imagine that you have a team of 20 in a room and each one has the solution. The question is: how are you going to bring each of these individual solutions together as one solution?

Herzog found that creating that trusts requires formal processes and that these processes should occur frequently (Herzog, 2001). I have found that one collaborative process with the team is to specifically review the Project Charter so that they understand what is being asked and they see there is high-level support for the project. I also have found it to be a great way for the team to build trust in each other by sharing the process of review together. The team begins to get to know one another as they share their thoughts on what the Charter means to them. As they get to know one another they begin to trust and to form bonds that help to create a working relationship. Collaborative sharing helps to build a solid foundation in which to drive projects to a successful conclusion.

The solution to the above question was to begin with open and honest communications. As a team, together you decide how the team will communicate in an open and honest way. Building open and honest communications builds a trusting environment for the team and leads to successful projects (Herzog, 2001).

By defining the communications processes we can begin to realize other team member’s motives for the solutions they bring to the table. By understanding a team members motives we can better understand their responses to questions or their ideas when the present them. By encouraging team members to openly respond to inquiries or questions we could also be opening the flood gates to better solutions to the projects goals. Trust has to happen between two people first and then grow from that point. As that trust grows, people feel free to speak up, other team members begin to open up and trust other team members. The goal, hopefully, is that trust becomes contagious, as trust makes for a better work environment.

But trust needs to be maintained on a continuous basis. It’s not a one shot and done deal (Herzog, 2001). Trust can be lost at any given time for a lot of different reasons. A team member could show an indifference to the team, not care if their held accountable or not. A team member could decide that their solution is better than what the team agreed and they start to act independent of the team. Here the team needs to bring everyone together to reassert the ground rules and clearly define the authority level the team abides by (Wong, 2007). Clearly, the process of building and maintaining trust is an ongoing process.

Conclusion:
Trust has been shown to be of utmost importance to delivering projects successfully. Without even the best planned projects can fail. Without trust the project is doomed to continually fighting battles that threaten the team’s ability to deliver a quality product/service on time and within budget. By sharing collaborative processes and conditions amongst the whole team on a continuous basis the team and the project will benefit. Collaborative sharing will help to build the trust necessary to bringing a successful conclusion to the project.

References:
Dictionary.com. (2015). Trust | Define Trust at Dictionary.com. In Dictionary.com. Retrieved from http://dictionary.reference.com/browse/trust?s=t
Fleming, Q. W. (2003). Project procurement management: Contracting, subcontracting, teaming. Tustin, CA: FMC Press.
Herzog, V. (2001). Trust building on corporate collaborative project teams. Project Management Journal, 32(1).
Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK guide), fifth edition. Newtown Square, PA: Author.
Wong, Z. (2007). Human factors in project management: Concepts, tools, and techniques for inspiring teamwork and motivation. San Francisco: Jossey-Bass.

Project Leadership

Successful projects are usually the result of strong leadership. The question arises as to what is considered, or what does it take, to be a strong project leader. Especially in today’s world of project teams made up of people from cultures around the world. This paper will examine the many different aspects, interpersonal skills and qualities of what it takes to be the leader of a successful project in the IT world.

Abstract

Successful projects are usually the result of strong leadership. The question arises as to what is considered, or what does it take, to be a strong project leader. Especially in today’s world of project teams made up of people from cultures around the world. This paper will examine the many different aspects, interpersonal skills and qualities of what it takes to be the leader of a successful project in the IT world.

Introduction

Project Managers (PM) are very unique people. The expectation is that they bring their projects to a successful conclusion with hopefully just enough resources, money, and time. The expectation levels are pretty high and the pressure can be extreme. They’re asked to take a huge unknown and make it all work together to produce a known. They are the boss of no one; yet are expected to get people to do what needs to be done and are held responsible if they don’t succeed. They have to bring together a group of people who have likely never worked together before and make it so they are a finely tuned engine with all cylinders firing in unison. Depending on the size and nature of the project, that could be a lot to ask of any one individual. It would take a special kind of leader.

Leadership is no longer limited to one or two executives at the top of an organization. There are many different levels of leadership in any company, especially in today’s global economy where resources specialize in a given area of business. Everyone in the company must be a leader if the organization is to survive and thrive (Tichy & Cohen, 1997). Without good leadership, nothing works. Projects have been known to get totally out of control because there was no one leading the group. And even if there is a leader, if they’re weak, the project team will run all over that person.

Leaders are not born leaders; leadership is a discernible set of skills and abilities. Granted, some people are better at managing than others, thus seeming to so many to have been born a leader. But like everyone else, they learned and practiced to become skillful at leading.

Leadership is a relationship between those who aspire to lead and those who choose to follow. Not all of us can or want to be leaders. Sometimes the relation

ship is one-to-one; sometimes it is one-to-many. Regardless of the number, leadership is a relationship between leaders and followers.

But amongst all of the traits a leader needs there is one that has to be earned and it is the one most admired; personal credibility. Without personal credibility there is no foundation of leadership. Personal credibility brings with it trust; we want to believe in our leaders, have faith and confidence that they believe in the direction we are all going. The team has to believe that the PM has the end goal in mind.

PM’s need to have a combination of the above mentioned skills and abilities in order to be good leaders. First amongst these skills are people skills. Next is, depending on the project, technical skills. Technical skills really depend on the project. If it is IT or other highly complex project then technical skills helps in bridging the trust factors of the team (Verzuh, 2012). If the team doesn’t have faith in your technical skills, or at least your ability to understand what they’re doing, they begin to believe you cannot lead them to the end goal of the project.

Other interpersonal skills include leadership, team building, motivation, communication, influencing, decision making, political and cultural awareness, negotiation, trust building, conflict management, and coaching (PMBOK, 2013).

PM’s have to be able to think quickly on their feet when making decisions, sometimes by themselves, but more often with the project team as a whole. They get much of this ability to think quickly from the knowledge and experience they have gained from many years of practicing their trade. Without the education that experience brings us we would not be able to be leaders in this new world.

There are five success factors every project has to meet in order to be successful: Agreement amongst the team as to the goals of the project; a plan with a clear path to completion along with clearly defined responsibilities that can be used to determine progress in the project; continuous effective communications understood by all involved; controlling scope; and management support (Verzuh, 2012).

Getting everyone involved in the project to come together on all five factors is the PM’s job. This paper will discuss the various interpersonal skills needed to successfully bring these factors together and how they apply to the art of Project Management.

Interpersonal Skills

There is no doubt that the best PM’s are also exceptional leaders. They inspire, they bring people together by giving them the vision of what’s down the road, people trust them, and they achieve countless things. To successfully lead a project to completion requires a strong leader with people skills in leadership, teamwork and team behaviors, decision making, problem solving, and conflict resolution. Without these interpersonal skills the project will lack strong leadership and direction which could cost the organization tremendously.

There are three skills, broadly speaking, that good leaders should have:

1.    Technical skills because the team will trust and believe in you if you can participate one-on-one with them in finding a solution; or at least can talk the talk and walk the walk. In the IT world it’s knowing programming, it’s knowing how the pieces of the system fit together in order to make it work. The team wants to know that if need be, you can make it work on your own.
2.    Human skill knows how to work with people. It’s very different from technical skill which has to do with working with things. These skills allow a leader to work with people to help them achieve their goals which helps the project achieve its goals. People skills allows a leader to work with groups of people, especially useful in project management since the object is to get a group of people to work as one towards a common goal.
3.    Conceptual skills involves possessing the intelligence trait as it deals with the ability to work with ideas and concepts. It is central to creating the vision and plans for the project and conveying those thoughts effectively to the team and stakeholders.

Good leaders need to possess a certain traits like intelligence; basically the ability to express ones-self verbally, perceptually and with sound reasoning brings people to trust in your ability to lead. They need to be self-confident. Self-confidence is the ability to be certain about ones skills and competencies. This includes self-esteem. But a good leader is not arrogant. Influencing others is part of being leader and having the self-confidence to influence allows the leader to feel that their attempts to influence are correct and good for the project. Integrity is highly important because it is the quality trait of honesty and trustworthiness. Leaders who adhere to a strong set of principles taking responsibility for their actions exhibit integrity. Sociability is the trait of seeking positive pleasant social encounters. Good leaders like to talk with people, especially in intelligent stimulating conversations. They are polite, sensitive to others needs, outgoing, tactful and diplomatic (Northouse, 2004).

Leadership

Leadership involves concentrating the efforts of a group of individuals and moving them toward a collective goal, empowering them to work as a team. Leadership is the talent to get things done through others. It’s very much like herding a bunch of cats. Respect and trust are keys of actual leadership. Fear and compliance only lock the door to future cooperation. Although important in every project phase, good leadership is critically important during the initiation and planning phases of a project. This is the time to bring the team on board by telling them the importance of the goal, using that vision to motivate and inspire a group of individuals to come together formulating a team to achieve success. Good leaders always have the end in mind.

All through a project, the PM has to establish and reinforce the vision and strategy by continuously communicating the message. This communicating helps to build trust; build team; influence, mentor, and monitor project and team performance. After all, it is people, not plans that complete projects. The PM, by inspiring others to find their voice, keeps the goals and objectives front and center. A successful project is a result of everyone agreeing on what needs to be done and then doing it. From initiation to closing, the project depends on the willingness of all involved to come to agreement, to synchronize action, to solve problems, and to react to changes. Communication amongst everyone is all that is required (Verzuh, 2012).

Team Building

Team building is the process of helping a group of individuals to work together as a cohesive unit, to work with their leader, to work with external stakeholders, and the organization. In the end, good leadership with good team building makes teamwork. PM’s have to remember that running a project is not a one-person effort; it takes a team to complete a project.

Team building really does require all the interpersonal skills a PM can muster, as well as the five success factors for a project. To know and like a PM is to trust them. It’s not likely the team will trust their leader if they don’t really like him, they can’t really like him if they don’t know him, and in the end they won’t trust him if they don’t like or know him.

A project team is a group of people with complementary but diverse skills and experiences who are asked to work together to accomplish the goals and objectives of the project. The purpose of the team is to develop and execute a work plan that will meet the goals and objectives of the project. Everyone on the team needs to be committed and dedicated to the same thing: meeting the goals of the project. Although the goals may be same, how the team elects to execute the work plan is variable.

Team-building activities consist of a series of tasks that establish the goals of the project, clearly define the roles and responsibilities of each team member, and establish the procedures and processes the team will work under.

Some of these processes include how the team will communicate, how it will interact with each other in meetings; the PM needs to lead the team to agreement on establishing the rules for conflict management. Establishing these rules allows the developing of an environment in which the team can work. Part of developing a team environment involves handling project team problems and determining how these issues will be discussed. The PM puts these processes together with their team because the PM knows that the team needs to take ownership and have buy-in for it to work.

Team building helps build commitment from your team. They have to choose to become a member of the team. The PM cannot make them commit, the individual has to decide. The PM, as a leader, has to figure out what is the best way to get that true commitment from you. He has to figure out how to empower you to decide to commit to the project, its goals and its objectives. Some people prefer committing to a team rather than as an individual; it makes it easier for individuals to join. Some people just have trouble committing to a decision except when in a group. Some call this group think where one individual does all the talking and everyone else just follows along. The talker is given a false sense of empowerment believing they have control. The wise leader will learn what it takes to motivate this individual and what it will take to bring the best out in the rest of the team.

Team building involves bringing out the best in each member. Some members can be timid allowing other members to make the decision and they’re along for the ride. The problem here is that there are a select few who are actually running the team rather than having involvement from all. If all are not participating it makes it tough to get strong commitment for all because decisions are being made that some might find objectionable. But because the team leader didn’t allow the opportunity for them to speak up, they go along half-heartedly accepting the direction the project is taking even though they might know a better course of action.

Changes are inevitable in a project, and the PM has to manage them effectively with a continual team-building efforts. The PM should continually monitor team functionality and performance to determine if any actions are needed to prevent or correct various team problems. With team building, as the PM develops the team, team performance should increase.

One model of team building involves five distinctly different stages of maturation in the team (Tuckman, 1965):

1.    Forming: This is when the team is getting to know each other. They’re interested in who each member of the team is and what they bring to the table. Questions like what do they know and will they be able to help me if I have a problem. Teammates also want to know that the other teammates will carry their weight.
2.    Storming is where the team begins to dig into the project goals and objectives. They begin to define and divide the tasks needed to be done and who will be responsible for completing those tasks as well as when. Technical decisions are made during this period. Gaining an understanding of the project processes also occurs. Cooperation can become counterproductive if the team does not collaborate well.
3.    Norming is the beginning of cooperation amongst the members of the team. They begin to trust one another, especially each others abilities.
4.    Performing is when the team begins to work as a well-oiled machine. Trust is attained and production increases. Conflict is minimal but productive as they work through issues easily.
5.    Adjourning brings the project to a close. The final product is approved for production and the team moves on to the next project.

Team building can be additionally enriched by gaining top management support; encouraging team member commitment to the goals and objectives of the project; introducing appropriate rewards, recognition, and ethics; creating a team identity; managing conflicts effectively; promoting trust and open communication among team members; and providing leadership. While team building is essential during the front end of a project, it is an ongoing process. Changes in a project environment are inevitable. Maintaining ownership and buy-in form the team will be difficult. To manage these changes effectively, a continued or renewed team-building effort is required. Outcomes of team building include mutual trust, high quality of information exchange, better decision making, and effective project management.

Three Spaces of Projects

As discussed above, part of team building involves creating the right environment in which to work. The dynamics of a project have been said to operate at three different spaces of project management. Space refers to an abstract boundary of human relationships.

First, people interact within the systems occurring in an expansive organizational space. This is the space that is defined by the organization that all members of the organization have to abide by. These include where in the building a team member’s desk is located; dress codes; hours of operation; company vision and goals.

Next, people interact with each other within a smaller space known as a team space. Because each project is different, organizations allow them to set up their own rules and processes so long as they fit within the organization space. The team space is defined by the team. This is where the team defines how members will interact with each other. Rules are defined as to how communications will be handles, how members will conduct themselves in meetings, how status reports will be delivered.

The last space is made up of each team member’s personal space where the individual team member’s interactive thinking occurs and human factors are formed. This is the individual team member’s space to do with as they choose. They make up the rules and decide the direction they will go. From this space team members choose how they will interact with others on a day-to-day basis; even from one issue to another. Much of how we react is determined by how and where we were raised, what cultural beliefs values are, and our individual personalities. This is the space that the PM must learn as much as they can about the individual team member in order to effectively manage them. From this space the PM can learn what it takes to motivate the team member thus allowing the manager to better direct them so that it meets that motivational factor (Wong, 2007)

Motivation

Project team members come from diverse backgrounds. Each has their own expectations, and individual objectives that they want to meet. The overall success of the project depends upon the project team’s commitment.  This commitment is directly related to their level of motivation. Motivating your team in a project involves creating an environment to enable your team to meet project objectives while also enabling them to meet their objectives and what they value most. These values will likely include job satisfaction, challenging work, a sense of accomplishment, achievement and growth, perhaps even money.
The PM has to determine how best to meet the need of each team member by learning what does motivate each of them. One way to do this is by listening every day to how they respond to different interactions. Meeting with each team member individually will be time consuming in the beginning, but will prove to beneficial later in the project when you get to crunch time. By learning early on what it takes to motivate that team member the leader will be able to know how to ask them to step up to the plate when it becomes necessary (Spreitzer & Quinn, 2001).

One motivation tool to use is letting your team do their own communicating with stakeholders, so long as they can do so reliably. What this does is to build confidence in the team member that you as the leader believe in their ability to do their job. If the PM is constantly hovering over the team member, especially in meetings with business Subject Matter Experts (SME), interrupting and over explaining, it brings a level of distrust in to the relationship. The PM has to allow for the team member to rise or fall on their own. Setting the expectation that the team member has to work with the SME’s raising the level of confidence in the team member. More importantly; it takes a load of work off of the PM by letting the team do their jobs.

Communication

Today, business is changing faster than ever, and most of those changes are being implemented through projects that require even stronger project management. However, just using sound project management methods does not ensure success, as many a PM has learned. Many PM’s have learned that while their project is a technical success; everything works as the business requirements document, the functional requirements documents, and the technical drawings stated; but the project is deemed a failure because it didn’t meet the business objectives of the company (Campbell, 2009).

The biggest reason a project fails was because communication, identified as one of the single biggest reasons for project success or failure, failed. Real communication is essential not only within the project team, but between the PM, team members, and all external stakeholders. Open communication is the opening to building team, creating teamwork and getting high performance from team members as well as your stakeholders. Communications helps build relationships among project team members which helps to create mutual trust. Building trustful relationships helps to move the project along enabling it to meet the goals and objectives all have agreed to. The PM needs to be aware of the communication styles of all involved in the project; He needs to know the cultural nuances/ norms, relationships, personalities, and the overall context of the situation in order to communicate effectively. Awareness of these factors leads to mutual understanding and thus to effective communication. Identifying various channels of communications helps the PM to better understand what information they need to provide, what information they need to receive, and the interpersonal skills that will help them communicate successfully with various project stakeholders.

Stakeholder satisfaction can be met through a clearly defined project scope. In the scope the object and the goals of the project need to be clearly defined to meet the expectations of the business and the stakeholders. Ultimately they are the ones who approve the scope of the project. The PM needs to ensure that the scope defines how the object of the project will be met. He needs to ask and get answered the question of what is the purpose of the project: What need or problem is the project supposed to fulfil or solve? What business outcome is the end result?

The definition of the scope is the first means by which the team begins to make the connection between the stated business goal and the means by which to achieve that goal. One of the tools that incorporate the scope is the project plan, including the Work Breakdown Structure (WBS). In the WBS the project team defines the work needed to achieve the business goal. It breaks the work down into manageable work packages, sometimes referred to as activities. The duration of time it takes to perform these work packages is estimated which ultimately helps to formulate our budget. The stakeholders will have to review and approve the WBS, the budget, and the schedule that gets produced. All this activity brings a greater understanding of the strategic business goal of the project.

With the Communication plan the project determines what types of communication would be required including status reports, Business Requirements documents, Functional Requirement documents, Project Plan, Project Schedule, Financial Communications, and as you can see, the forms and types of communication are many (Westland, 2006).

Many of these types of communication were determined by utilizing other documents such as the Stakeholder Register, the Charter and Scope, as well as the project management plan.

Projects can develop what is commonly known as a Project Management Plan (PMP). The PMP helps put all the relevant structure under one document; it helps us to define how we were going to communicate; manage certain events in the project such as change management, and risks: Verzuh points out that the Change Management Plan should be tailored to fit your specific function (Verzuh, 2009). And he’s right because it is not one size fits all in Project Management.

PM’s should carry out team building activities to help determine and understand team member styles of communication such as by email, phone, types of reports, texting; this allows managers to plan their communications with understanding towards relationships and cultural differences. Listening is always an important part of communication. Both active and passive listening techniques give the user awareness of problem areas, management strategies for conflict and negotiations, decision making, and problem resolution.

What happens if you ignore project communications? You do so at your own risk. As stated earlier, many projects fail due to poor communications. Poor communications could be the result of weak leadership. Not wanting to be the bearer of bad news you will hope the issue goes away. Of course it never does go away. The issue just becomes worse until when you finally decide you need to tell upper management, it’s too late to solve the issue except at tremendous cost of time and money. You, as the PM, look bad because it’s your job to raise these issues so that can be solved; obviously the earlier the better. Part of your job is to solve these problems. Being the bearer of bad news comes with the job. The PM cannot be afraid to raise the red flag when a management decision is the only way to resolve the issue.

One area of communication the PM should consider is with the key roles of members of the project. Would your Business Systems Analyst be able to connect with business stakeholders? Can the Tech Lead deal with outside vendors in communicating technical requirements? Good salespeople learn early on that they can land a sale if they bring in a Subject Matter Expert (SME) to talk with the customer. It’s not like the sales person, or PM, doesn’t have the technical know-how; it’s that the business stakeholder, or customer, will have a tendency to believe the SME over the PM or sales person. The PM has to realize that if what it takes is the SME talking with the stakeholder to get the issue resolved, so be it. True leadership never lets their ego get in the way.

Political and cultural awareness

Politics are inevitable in projects due to the variety of backgrounds, and expectations of the people involved with a project. Skillful use of politics and power helps the PM to bring the project to a successful end. Ignoring or avoiding project politics and incorrect use of power can mean trouble in managing projects. Because PM’s operate globally in many projects, and many projects operate with a mix of cultures they are expected to be to handle a multitude of different situations. By being appreciative and make the most of cultural differences, the PM is more likely to create an atmosphere of mutual trust and a highly performing atmosphere. Cultural differences are not just individual; they can be corporate in nature and may involve internal and external stakeholders. One way to manage cultural variety is getting to know the various team members and developing good communication plan goes a long way towards reaching that goal. Culture behavioral includes those behaviors and expectations that occur outside of geography, ethnicity, or language differences. Culture can either slow or increase the speed of working, decision-making process, and the urge to act without appropriate planning or permission. Conflict and stress can occur in some organizations as a result of these differences unless addressed appropriately (Kerzner, 2001).

Politics, handled effectively, can help smooth the road in a project. Depending on the level in the hierarchy your sponsor has can be the difference between moving forward with the tools and the authority needed or finding brick walls in front of you. Having a sponsor of equal footing within the hierarchy of the organization with other department managers makes bringing in the big gun easier if needed. Having upper management support certainly helps to remove a lot of political obstacles as it gives greater authority to the PM. If the CEO of the company is supporting your project everyone in the company knows it and will usually bend over backwards to ensure you get what you need to reach the project goal.

Negotiation

Negotiation is a strategy of consulting with various parties of shared interests with a view toward reaching an agreement. Negotiation is an important part of project management and if done well, increases the chances of project success. The following skills and behaviors are useful in negotiating successfully: Analyzing the situation, and differentiating wants and needs. By focusing on the interests and issues rather than on positions you stand a chance of concluding successful negotiations. Be realistic when negotiating: ask high and offer low. When conceding, make it sound like a really valuable concession, don’t just hand it to them. The negotiations should always be a win-win proposition (Katz, 2009).

Influencing

Influencing is a method of distributing power by relying on your interpersonal skills to get others to move towards common goals. The PM should always lead by example, and follow through with commitments. Do what you promise to do, always. Clarify how decisions will be made in the project or when considering an issue or conflict. Use a flexible interpersonal style and adjust the style to the audience. Apply your power skillfully and cautiously. Think of long-term collaboration or effects on the project.

Decision Making Styles

There are four basic decision styles normally used by PM’s: command, consultation, consensus, and coin flip (random). There are four major factors that affect the decision style: time constraints, trust, quality, and acceptance. PM’s may make decisions individually, or they may involve the project team in the decision-making process. PM’s and project teams use a decision-making model or process such as the six-phase decision model (PMBOK, 2013):

•    Problem Definition; Fully explore, clarify, and define the problem.
•    Problem Solution Generation: Prolong the new idea-generating process by brainstorming multiple solutions and discouraging premature decisions.
•    Ideas to Action: Define evaluation criteria, rate pros and cons of alternatives, select best solution.
•    Solution Action Planning: Involve key participants to gain acceptance and commitment to making the solution work.
•    Solution Evaluation Planning: Perform post-implementation analysis, evaluation, and lessons learned.
•    Evaluation of the Outcome and Process: Evaluate how well the problem was solved or project goals were achieved (extension of previous phase).

Trust

The ability to build trust across the project team and other key stakeholders is a critical component in team leadership. Trust is connected to cooperation, information sharing, and problem resolution. Without trust it is near impossible to establish the positive relationships necessary between the various stakeholders engaged in the project. When trust is compromised, relationships deteriorate, people disengage, and collaboration becomes near impossible. Some actions PM’s can take to help build trust (Verzuh, 2012):

1.    Engage in open and direct communications to resolve problems.
2.    Keep all stakeholders informed, especially when fulfilling commitments is at risk.
3.    Spend time directly engaged with the team asking non-assumptive questions to gain a better understanding of the situations affecting the team.
4.    Be direct and explicit about what you need or expect.
5.    Do not withhold information out of a fear of being wrong, be willing to share information admitting you may be wrong.
6.    Be open to innovation and address any issues or concerns in an upfront manner.
7.    Look beyond your own interests.
8.    Demonstrate a true concern for others and avoid engaging in non-productive pursuits detrimental to the project or others.

Conflict

Conflict is inevitable in a project environment. Incongruent requirements, competition for resources, breakdowns in communications, and many other factors could become sources of conflict. Within a project’s environment, conflict may yield dysfunctional outcomes. However, if actively managed, conflicts can actually help the team arrive at a better solution. The PM must be able to identify the causes for conflict and then actively manage the conflict thus minimizing potential negative impacts. The project team is then able to deliver better solutions and increase the probability of project success. PM’s have to develop the skills and experience necessary to effectively manage to the situation. Managing conflict in a projects involves building trust with all involved parties early in the project; being open and honest, and to seek a positive resolution to the situation causing the conflict. PM’s make every effort to establish a collaborative approach among the team members to achieve full resolution of the problems. When the collaborative approach isn’t working, the PM must then use other methods for handling the conflict; forcefulness, accommodation, avoidance, or compromise. Managing conflict is one of the biggest challenges a PM must deal with on a regular basis. It requires use of all the other interpersonal skills of a PM in order to bring the conflict to a successful conclusion (Kerzner, 2001).

Coaching

Coaching helps propel the project team to higher levels of adeptness and performance. Coaching is about helping people realize their abilities through enablement and growth. It aids team members in enhancing their skills that could lead to project success. Coaching can take many forms and styles. In many instances, informal training is used to increase technical skills. Most companies expect that a minimal amount of coaching should be used since they think they’re buying the expertise already. Most coaching happens in one-on-one situations of the moment and the PM needs to know when to apply it.

Conclusion

The PM must reach deep into their experiences and training in order to effectively lead. PM’s are very unique people, but they’re not born leaders; they have to learn and experience it in order to practice it effectively. They’re expected to bring the project to a successful conclusion while meeting the needs of the business. They’re expected to bring the project to a successful conclusion on time and within budget. As stated earlier, the expectation levels are pretty high and the pressure can be extreme. It takes a special kind of leader to bring together an idea and make it all work together. PM’s are the boss of no one; yet are expected to get people to do what needs to be done and are held responsible if they don’t succeed. They have to bring together a group of people who have likely never worked together before and make it so they are a well-oiled machine working together. Depending on the size and nature of the project, that could be a lot to ask of any one individual. But by putting the right person with the right project one can expect that it will end successfully. That person needs to have experience in many different facets of people and technical know-how as well as a healthy amount of business acumen. Without these the PM as a leader will likely fail. With them, they can go far.

References:

Campbell, G. M. (2009). Communications skills for project managers. New York: AMACOM.
Covey, S. R. (2004). The 7 Habits of highly effective people: The 8th habit. Chagrin Falls, OH: Findaway World.
Fleming, Q. W. (2003). Project procurement management: Contracting, subcontracting, teaming. Tustin, CA: FMC Press.
Hesselbein, F., & Johnston, R. (2002). On leading change: A leader to leader guide. San Francisco: Jossey-Bass.
Katz, R. L. (2009). Skills of an effective administrator. Boston, MA: Harvard Business Press.
Kerzner, H. (2001). Conflict Project Management: A systems approach to planning, scheduling and controlling. Hoboken, NJ: John Wiley & Sons, Inc.
Kerzner, H. (2001). Project management: A systems approach to planning, scheduling, and controlling. New York: John Wiley.
Kouzes, J. M., & Posner, B. Z. (1987). The leadership challenge: How to get extraordinary things done in organizations. San Francisco: Jossey-Bass.
Northouse, P. G. (2004). Leadership: Theory and practice. Thousand Oaks, CA: Sage
Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK guide), fifth edition. Newtown Square, PA: Author.
Tichy, N. M., & Cohen, E. B. (1997). The leadership engine: How winning companies build leaders at every level. New York, NY: Harper Business.
Tuckman, B. W. (1965). Developmental sequence in small groups. Psychological Bulletin. doi:10.1037/h0022100
Verzuh, E. (2012). The fast forward MBA in project management, fourth edition. Hoboken, NJ: John Wiley & Sons.
Westland, J. (2006). The project management life cycle: A complete step-by-step methodology for initiating, planning, executing and closing the project successfully. London: Kogan Page.
Wong, Z. (2007). Human factors in project management: Concepts, tools, and techniques for inspiring teamwork and motivation. San Francisco: Jossey-Bass.