by DharamCW | Jan 5, 2024 | Leadership in Project Management
🌟 Unveiling the Qualities of Exceptional Situational Leaders 🌟
Situational leadership stands out as a cornerstone for success in the dynamic realm of project, program, and portfolio management. Today, I want to spotlight the essential qualities that define great situational leaders. These traits are not just about leading; they’re about elevating your team to its highest potential.
Qualities of Situational Leaders
A situational leader is someone who:
1. Exhibits Flexibility: Adapts their leadership style to the evolving growth levels of each team member.
Flexibility
2. Builds Trustworthiness: Gains the trust of their team, fostering an environment of reliability and confidence.
Trustworthiness
3. Masters Delegation: Knows when and how to delegate tasks effectively to highly competent and committed team members.
Delegation
4. Hones Coaching Skills: Guides those lacking confidence or ability, ensuring everyone’s on the right path.
Coaching Skills
5. Shows Courage: Isn’t afraid to change their leadership approach, especially when traditional methods no longer serve the team’s needs.
Courage
These situational leadership qualities drive project success and nurture a culture of growth and adaptability. Understanding and developing these traits can be a game-changer in your leadership journey.
🔗 Stay tuned for more insights into the art of effective leadership in project management.
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by DharamCW | Jan 3, 2024 | Project Management
🎯 Episode Highlights:
– Unveiling AI as the game-changer for Project Management.
– Becoming an AI-savvy project leader.
– Navigating the AI disruption for organizations and project executives.
– Utilizing AI assistants for on-schedule and on-budget project delivery.
– The strategic investment in AI training for project teams.
– Senior leadership and the journey beyond traditional methods for AI integration.
– Tackling the scope creep unique to AI in project management.
– The provocative question: Will AI replace the role of project managers?
🎯 For Project Management professionals eager to elevate their careers, seize this chance:
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by Dharam CW2 | Oct 13, 2023 | General
 Organizations may stay profitable and competitive using project management practices that help identify process improvements or cost-cutting opportunities. Metrics may assist in discovering areas for improvement, data to focus on, and how to quantify the success and efficacy of a company’s efforts. Knowing more about project management metrics that can assess performance will help one acquire professional skills for any business and advance their career in project management.
Every organization needs to ask,
- “Are we getting the outcomes we want?”
- “Are we accomplishing our project objectives?”
- “Are we meeting the requirements for customer success?”
- “Are we getting the intended return on investment?”
Project Management Metrics May Assist
Success depends on the ability to forecast and meet product and service commitments. With projects becoming more common, it is critical to show additional value to the business using project management strategies, tools, and procedures. Therefore, a metrics program is required. Metrics may assist in identifying significant events and trends, distinguishing between challenges and opportunities, and guiding companies to make wise decisions.
How can we know whether the project management efforts make a difference and contribute to corporate success?
- It has long been known that suitable measuring methods are essential to basic management tasks, including project planning, monitoring, and control, and metrics are present at all stages of project management.
- As project management grows prominence and more firms embrace a project-based management approach, objective and performance-based management highly depend on measurement processes.
- To assist decision-making, project selection, portfolio management, and lead product and process improvement, metrics must be integrated into project life-cycle activities.
- In addition, metrics may be used to assess an organization’s project management maturity.
- Metrics aid in understanding capacities, allowing for developing strategies based on creating and delivering goods and services. They also enable people to recognize significant events and patterns and distinguish between challenges and opportunities.
- Metrics can assist in improved cost and schedule management, decrease risks, increase quality, and guarantee that objectives are met.
Measuring is an end goal in some businesses. Individuals in such businesses who have obtained project management certification and use specific project management tools and processes are the ones who often recognize the significance of project management. At the same time, individuals at the top may only accept this value partially. A metrics practice put in place is one of the best methods for successfully explaining the benefits of project management to top executives.
What are Project Management Metrics
What are Project Management Metrics?
Project management metrics are data sets, algorithms, and calculations that allow businesses to assess the performance of a project. They assist managers and organizations in reviewing how a project progresses, evaluating team productivity, project completion deadlines, and costs, and identifying, reducing, or eliminating risks. Project management metrics are numerical instruments that firms use to build successful strategies, carry out continuous improvement initiatives, and assess employee and customer sentiment.
Benefits of using metrics in project management
Project management metrics are an efficient approach to assessing a project’s progress. Measuring the project’s performance against key parameters helps to understand the management process. These indicators in project management also assist in steering project objectives, allowing teams to assess success and make improvements as needed.
Following and evaluating the right indications can provide the company with critical insights regarding the team’s performance – from both a high-level and individual standpoint. In addition, you’ll be able to identify process bottlenecks and other inefficiencies, which one can subsequently fix, adding to the project assumptions list and enhancing future project performance.
Furthermore, tracking and collecting this sort of data might be useful when the time comes for the project management performance review. Taking responsibility for the team’s work by analyzing project outcomes, identifying inefficiencies, and developing improvement plans sends a strong message to management. It displays that one can be a real leader committed to the business’s success.
Benefits of Using Metrics in Project Management
- Measure team productivity
Relevant metrics in project management can reflect a team’s productivity. For example, the on-time delivery (OTD) rate or service level agreement (SLA) rate might be used to calculate the project’s ROI.
- Optimize team performance
While it is critical to maintain the team’s performance, forward-thinking management seeks development opportunities. Relevant project metrics enable one to broaden their understanding of project-related aspects. Project performance measurement reduces uncertainty and allows individuals to make better, more informed decisions.
- Track ongoing progress
Management performance metrics also track a project’s progress over time. These metrics are critical to discover obstacles early and help adjust the track as needed.
Project Management Metrics: How to Measure and Track Success
Relevant project management metrics will help enhance our understanding by eliminating uncertainty and making well-informed decisions.
Metrics prove value
Cost-related project management indicators may demonstrate the value of a team—for example, a rate of on-time delivery or a rate of satisfying SLA. Return on Investment (ROI) is a popular statistic for demonstrating this value. If a department fails to generate or contribute to a firm’s measurable objectives, a smart business would dissolve the department and redirect resources to another area that provides results.
How to choose the Metrics
Metrics improve performance
While demonstrating value is crucial, forward-thinking management prioritizes performance improvement. Relevant metrics help you have a better grasp of project management. This aspect reduces ambiguity, allowing all parties involved to make informed decisions. For example, assume that the given slack time is causing the completion of the following task to be delayed. You can adjust the slack time to keep the project deadline.
How to choose the metrics?
Each business or project requires metrics specific to its purpose or aim. Metrics are determined in three steps:
- Understand the project’s objective or goal.
- Determine which crucial success elements must be met to succeed and reach the objective.
- Consider how you will measure the achievement of each key success factor for the project or program.
What makes a successful project?
What makes a successful project?
Before starting any project, you and your team should know what constitutes a successful project. After all, you want to avoid being known for a famous failed project. So what makes a project successful? First, you should establish a set of success criteria for your project, including the following:
- Delivers on time:Â Completing a project on schedule and under budget is one measure of success, especially for external parties, such as clients.
- Stays within budget:Â A budget is in place for all initiatives. You will have succeeded if you can finish yours without incurring more fees and expenses.
- Achieves its objectives: If your project was completed and met its objectives — as stated at the outset — that’s a huge accomplishment.
- Gets positive feedback:Â Assessing a project’s internal and external success is simple. But how did it fare? If stakeholders and clients offer positive feedback, the project will be considered a success.
Key Project management metrics
Project management metrics may be established based on the purpose and complexity of the project. However, the ten key project metrics listed below often cover the most important measurements:
Key Project management metrics
- Productivity
This indicator examines a company’s total skills — how well it uses its resources. Productivity demonstrates the connection between inputs and outcomes. For example, how much do you get out of a project after your efforts? The optimal productivity outcome is to produce more with less.
Productivity = Units of Input/Units of Output
- Gross Profit Margin
Numbers are more powerful than words. Indicators directly related to the bottom line indicate success or failure faster than other metrics.
The larger the profit margin, the better the business. Any program or effort done should add to a company’s financial profit. The margin is the proportion of each dollar generated after expenses are deducted.
Gross Profit Margin = (Total Profit-Total Costs)/100
- Return on Investment (ROI)
Return on investment especially considers the dollar amount earned for the amount spent on a project. This metric is a financial calculation similar to gross margin. However, instead of focusing on a total profit, it considers the specific benefit of the project divided by the costs.
To use this metric, a dollar value must be assigned to each unit of data to calculate the net benefits, which may include:
- Contribution to profit
- Cost savings
- Increased output
Costs may include resources, labor, training, and overhead.
ROI = (Net Benefits/Costs) x 100
- Earned Value
Earned value provides strategic guidance by displaying how much you have derived from the money invested in a project to date. It compares the value of work performed by a given date to the project’s approved budget.
Earned value is often called the Budgeted Cost of Work Performed (BCWP). This statistic serves as a reality check during the project’s execution.
Earned Value (EV) = % of Completed Work / Budget at Completion (BAC)
- Customer Satisfaction
A customer satisfaction score is a quality indicator for your service or product—the findings of a customer survey influence this metric. In addition, the product or service should perform as intended and meet genuine client demands.
Each organization may create a unique score by weighing each component depending on its value. Customer survey results, money earned from clients, repeat or lost clients, and complaints are examples of variables.
The Customer Satisfaction Index (CSI) is the most extensively used metric for customer satisfaction. Another technique for measuring customer satisfaction is the Net Promoter Score (NPS). NPS measures customer loyalty by determining the chance of a consumer suggesting a product or service.
Customer Satisfaction Score = (Total Survey Point Score / Total Questions) x 100
- Employee Satisfaction Score
Survey data determines employee satisfaction in the same way that customer satisfaction is. So why should workers be included while evaluating project management? The answer is straightforward: employee morale is directly related to project performance.
In the end, a satisfied employee does better work and more efficiently. In addition, the high costs of employee turnover for a firm — which may range from 50% to 200% of an employee’s salary — should be motivation enough to focus on the people closest to the project.
The Gallup Q12 Employee Engagement Survey is a well-known data collection tool. An ESI procedure yields an index score.
Employee Satisfaction Score = (Total Survey Point Score / Total Questions) x 100
- Actual Cost
The Actual cost is a simple statistic that displays how much money is spent on a project rather than simply an estimate. This cost is calculated by adding all the expenses for a specific project across the timeline.
Actual Cost (AC) = Total Costs per Time Period x Time Period
- Cost Variance
Cost variance describes the difference between the intended budget and actual expenses during a given time period. Is the estimate higher or lower than the actual costs?
- A project is over budgetif the cost variance is negative.
- A project is under budgetif the cost variance is positive(a standard measure of success).
Cost Variance (CV) = Budgeted Cost of Work – Actual Cost of Work
- Schedule Variance
The schedule variance examines both budgeted and scheduled work. Is the project running ahead of or behind schedule?
The schedule variance is the difference between work scheduled and work accomplished, calculated as the budgeted cost of work executed minus the budgeted cost of work scheduled. A negative schedule variance indicates that the project is running late.
Schedule Variance (SV) = Budgeted Cost of Work Performed – Budgeted Cost of Work Scheduled
- Cost Performance
Cost performance is a cost efficiency metric. Divide the value of the work performed (earned value) by the actual costs incurred to get the earned value. Forecasting cost performance provides for more precise budget estimates.
Cost Performance Index (CPI) = Earned Value / Actual Costs
Implementing Project Metrics
Once project metrics have been established to meet the company’s goals, it’s time to apply them. First, interact with users to help them understand the process, its value, and how analytics may enhance projects. Then, provide specific examples, such as “the dashboard will indicate where we need documentation, so we may prevent delays by gathering the necessary information.”
Create a project management metrics strategy with criteria everyone can understand to help you get support. Explain the significant indicators you’ll be measuring, how you’ll track them, and the goals you intend to achieve. The strategy should then be put into action. Understand that project metrics should lead to action; else, they are worthless. As you discover unusable metrics, revise the plan.
Final Thoughts
Project management metrics are critical to the success of any organization. They track the progress of initiatives, assist managers in defining success, and verify that the team is heading in the right direction.
It is complicated to analyze and evaluate a project’s development without appropriate metrics in project management. With precise, trackable KPIs, the company can assess project progress and identify when it’s time to change strategy or where the team is experiencing difficulty. If the company does not make the essential changes, it may face serious obstacles and lead to failure. As a result, measuring important project management metrics is vital to the company’s success.
Feel free to check out my discussion on this topic with Justin Buckwalter in YouTube
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by Dharam CW2 | Aug 25, 2023 | General
The modern workplace is undergoing a significant transformation. As a result, project professionals in both the public and private sectors worldwide have started to recognize the full range of benefits that successful project management can bring to their businesses and are prepared to make the required adjustments, particularly on cultural changes.
The success of each project is dependent on an effective project management strategy. Considering the next generation of project professionals, it is critical to have an efficient leader who can direct this process since it is methodically planning, organizing, and executing a pre-determined series of procedures to maximize resource utilization and achieve objectives. Project goals will likely be met with a manager monitoring adequate planning and checking off milestones.
To compete in the upcoming competitive market, a project manager must have the technical, digital, and other essential project management skills to comprehend future project challenges. On the other hand, a project leader with an effective skill set can tackle all the challenges in a project in the right way. So here are some of the challenges and skill sets to manage a project for the next generation of project managers.
Challenges of Project Management
According to data provided in the PMI’s Pulse of the Profession 2020, 11.4 percent of corporate investment is lost owing to poor project performance.
What variables might contribute to poor project performance? There are examples of a need for more precise planning, inconsistent procedures and techniques, incorrectly managing or accounting for all project stakeholders, budget overruns, and other causes.
Categories of Project Failure
However, if we take a step further, the causes of project failure fall into three major categories:
- People
- Processes
- Communication
Let’s look at the most common challenges for project managers and some tips on how to overcome them.
Challenges of Project Management
- Undefined Goals
Identifying project goals is one of the most common challenges in project management. The entire project and team might suffer when objectives need to be clearly defined. When top management cannot agree on or support undefined goals, the project has a limited likelihood of success. To define and convey clear goals, the project manager must ask the right questions and make the right decisions.
- Scope Creep
“Scope creep” occurs when incorrect project management permits the scope of a project to expand beyond its initial objectives. Clients and supervisors may request modifications to a project, requiring the project manager to examine each request and determine how and whether to accept it meanwhile also conveying the implications to all stakeholders regarding budget and timelines.
- Inadequate Skills for the Project
A project may necessitate the use of talents that the project’s contributors may need to have. Project management may assist a project manager in determining the required competencies, assessing existing personnel, and recommending training, outsourcing, or recruiting extra people.
- Lack of Accountability
When each team member accepts responsibility for their role in project success, the project manager’s leadership characteristics may come through. A lack of responsibility, on the other hand, might bring a project to an end. Learning to lead groups toward a shared objective is an essential part of project management.
- Improper Risk Management
Another key aspect of project management is learning to cope with and plan for risk. Because projects rarely go as planned, risk management is a desired project manager trait. To do their work effectively, project managers must solicit input, build trust, and understand which aspects of a project are most likely to deviate from the original plan.
- Ambiguous Contingency Plans
Project managers must understand which path to pursue in pre-defined “what-if” situations. The entire project may become entangled in unexpected problems if contingencies are not recognized. On the other hand, requesting that people identify possible problem areas can result in a smooth and successful project.
- Poor Communication
Poor communication can cause major project management issues. Project managers must offer direction at all project stages so that each team member understands what is expected from them. Therefore, effective communication with all people involved in the project is critical to its success.
- Resource Deprivation
Management must offer adequate resources for a project to function smoothly and successfully. The project management process aids project managers in establishing demands and securing approval up front, as well as how to assign and prioritize resources during a project.
- Lack of Stakeholder Engagement
A project can be ruined by an uninterested team member, customer, CEO, or vendor. A skilled project manager communicates openly and invites input at every stage to increase participant participation.
- Digital Transformation
Adapting to the correct tools, systems, and procedures becomes even more crucial as more firms board the digital transformation train. This difficulty stems from adapting to the appropriate project management system, enabling teams to construct, change, and improve existing procedures to expand and scale.
Overall, project management is in great demand and isn’t going away anytime soon. Indeed, project management is anticipated to expand by 33% by 2027. However, to keep up with the ever-changing business landscape, project managers must be updated on proper project management methods and trends.
Major Challenges for the Next Generation Project Managers
Major Challenges for the Next Generation Project Managers
- The first major challenge project managers must confront is technology globalization and the disruption of traditional corporate culture and model. This aspect includes eliminating the requirement to do business or manage projects from a single place. The adaptation of the “virtual team” has become a must, and a company’s agility might mean the difference between success and failure. What used to take months may now be accomplished instantly, emphasizing the necessity of a company’s ability to fast and naturally adapt to the fluctuating nature of today’s technology culture.
- The second major concern is worker involvement, a project manager’s capacity to grasp various roles and responsibilities and use agility to wear numerous “hats” depending on the project. Knowing generational drives, establishing moral leadership, and understanding how the team performs are all part of this.
- Finally, project managers will be impacted by innovation and risk. The problem is figuring out how to strike a balance between innovation and risk—as managing risk is an important project management skill—but without it, it’s hard to realize the entire project’s potential.
Future Trends of Project Management
Consider project management ten years ago: fewer tools, smaller teams, and more straightforward tasks. Since then, the project landscape has changed dramatically, with important developments such as:
- Blockchain
- Artificial intelligence
- Sustainability
- Remote teams
Future Trends of Project Management
Trend 1 – Blockchain
More businesses use blockchain technologies for management, such as when conducting dispute investigations. The capacity of blockchain to automatically update data makes it ideal for reconciling records and transactions. One of the most significant contributions of blockchain to project management will be smart contracts, which are effectively self-executing contracts powered by computer code.
Smart contracts reduce the number of key functions within the project manager’s scope, such as checking on project milestones and assigning new ones, which speeds up management processes. As a result, quicker workflow assures project completion on time and improves a company’s overall performance.
Trend 2 – Artificial Intelligence
Artificial intelligence is increasingly finding its way into project management systems, managing anything from predictive analysis to risk management. Because of its efficacy, as per the PwC report, by 2030, AI is expected to contribute:
- $42.7 B (7.7%) to Egypt’s economy
- $135.2 B (12.4%) to Saudi Arabia’s economy
- $96.3 B (13.6%) to the UAE economy
The primary capacity of AI is to provide data insights for decision-making, which increases the agility of any given project.
Trend 3 – Sustainability
Project sustainability is more critical than ever now. Governments and societies worldwide are demanding greener alternatives throughout the life cycle of a project.
Green initiatives are cost-cutting solutions for businesses. For example, energy is required for project completion, and shifting to renewable sources reduces costs. In addition, this frees up resources that may be directed toward other essential areas like innovation and research. Meanwhile, sustainable practices improve a company’s reputation and encourage consumer loyalty.
Trend 4 – Remote Teams
Remote teams have been the norm since the advent of communication technology. As a result, businesses gain from a more diverse and borderless talent pool easily available through contracts. In addition, they spend less on office space, travel, and other administrative expenses.
Data from Upwork’s Future Workforce Report 2021 revealed that more than half of the US population was working remotely to some level. Furthermore, 40.7 million Americans will likely be fully remote during the next five years.
Furthermore, in its 2022 State of Remote Work Report, Buffer discovered that 97% would promote remote work to others and continue to work remotely, at least for some time or for the rest of their lives. On the other hand, just 26% of businesses are prepared to offer a remote work environment.
As a result, it’s not unexpected that more workers anticipate that workplaces will become entirely virtual over the next several years. In general, remote working arrangements enable businesses to extend their resources while increasing operational efficiency. As such, they are crucial in developing lean, competitive firms.
Key Skills needed for Next-Generation Project Managers
Because of rising trends such as remote teams, digitalization, and automation, project management has changed dramatically in recent years. More companies rely significantly on technology to plan, execute, and monitor work.
As an example:
- Big data and artificial intelligence for better risk forecasting
- Remote progress tracking using digitization technologies
- Automation software for more efficient execution
These solutions have improved firms’ management capabilities and altered project management’s future.
According to Gartner research, 80% of management duties will be automated by 2030, and future managers will need more technical skills. They must be knowledgeable about cybersecurity, blockchains, machine learning, and robots, all of which are expected to play larger roles in management.
To stay up with trends in modern project management, a fundamental understanding of topics such as data science, conflict resolution, and entrepreneurship is required. For example, data science skills may assist a manager in incorporating AI into more elements of the project life cycle. Here’s a closer look at what these skills include and how they’ll stay up with future innovations in project management.
Key Skills Needed For Next Generation Project Managers
Skill 1 – Data Science
Big data insights are essential management tools in the future, especially for large projects with extensive life cycles. In terms of planning, insights from previous projects indicate inefficiencies that can guide the current project, such as the number of idle hours and their causes. In terms of execution, data analytics assess progress and spot deviations early, such as changes in material prices and exchange rates that exceed estimates.
Skill 2 – Conflict Resolution
Today’s projects are extremely complicated, with constantly changing deliverables. As a result, conflicts are never far away.
These conflicts, if left unaddressed, can undermine your team’s performance, resulting in delays and missed deliverables. Managers must thus understand the aspects of conflict resolution, such as:
- Behavioral and organizational aspects of a positive workplace
- Effective communication
- Effective contingency planning
Skill 3 – Entrepreneurship
Project managers are essentially CEOs. On the one hand, they are in charge of project deliverables, while on the other, they are negotiating with shareholders and setting targets based on estimates. As a result, being productive requires more than technical and administrative skills. Project managers must also have entrepreneurship skills, such as strategic thinking and market insight. This skill is beneficial for modifying deliverables, which is typical in agile projects like software development.
Skill 4 – Resource Management
Budgets and timeframes became tighter as projects got more significant and more complicated. Today’s project managers must balance budget constraints, deliver quality, and achieve deadlines with limited resources. They are entrusted with creating a lean organization.
For optimal efficacy, a delicate balance of resource allocation is required, as over-allocation to one activity inhibits the others. So, managers must understand resource management principles such as equilibrium shifts and flexibility.
Skill 5 – Digital Skill
Digital skills are essential for future project managers. According to the CBI’s report on developing a world-leading innovation economy, upskilling employees with digital skills is critical. However, the digital skills pipeline could be improved. They believe more should be done to foster more ambition in that field.
Digital Skills For Project Managers
Project managers need to have the following digital skills:
- Data analysis, analytics, and management
- Data security and protection
- Compliance with the rules and regulations
- Leadership and collaboration online
- Management of knowledge
- Decision-making based on data.
Considering the vital significance of the project manager’s role and how it changes, here is a list of additional skills for project leaders to follow in the present and future to enhance their careers and succeed.
Skills For Future Project Leaders
- Emotional Intelligence:Â The capacity to detect and interpret events and interactions (both verbal and nonverbal) in the context of the project plan.
- Adaptive Communication:The ability to explain one’s views to various individuals, groups, and cultures, whether orally or in writing, utilizing the most successful communication approaches for each group.
- People Skills:Â The ability to rapidly establish and maintain strong connections with team members and stakeholders.
- Management skills:Â The capacity to serve, encourage and concentrate a team, and create team member collaboration.
- Flexibility:The willingness and capacity to modify one’s project management style and course of action in response to business needs.
- Business Skills:Understanding the organization’s business, strategy, and industry. Understanding of a plan and ability to coordinate tactical work around that strategy.
- Analytical abilities:The capacity to think through circumstances and make judgments.
- Customer Focus:The ability to comprehend the end user’s or end customer’s demands and the drive to guarantee that projects meet those needs.
- Results-Orientation:The capacity to do tasks efficiently and successfully.
- Character:The project manager should have a pleasant demeanor and a solid moral and ethical foundation.
Final Thoughts
With a focus on the future generation, we’ve entered a project management world where we need to be aware of the key challenges we’ll encounter as project managers and the skills we’ll need to improve to succeed: technology globalization, worker engagement, and the battle between innovation and risk. There are, however, a few crucial insights to remember as you continue your journey through the strange and ever-changing world of project management.
- Be agile or be gone:Business constantly needs greater flexibility, strategy, and adaptability than ever before. No one strategy will work every time; knowing how to adjust to change with agility and rapidity is essential.
- Expect all teams to act differently:Teams will always be more diverse than those who make them up. However, you can lead more successfully if you genuinely grasp your team and each member’s unique imperatives. Because project teams determine project success, one of the most crucial skills of a competent project manager is the ability to construct an effective, high-performing team.
- Help team members understand the big picture:This will assist them in preparing for obstacles. When attempting to resolve an issue or manage change, keep the immediate consequences in mind to prevent losing sight of the forest for the trees.
Feel free to check out my discussion on this topic with Thomas Walenta in YouTube
For any questions related to your Project Management career, training, and certifications, you can book an obligation free 15 minutes session with me by visiting https://bit.ly/2SbhTOK
You can subscribe to the vCare Project Management YouTube Channel to catch future videos of our Q&A series and certification success stories: https://bit.ly/2YF0wJl
You can subscribe to and follow my podcasts and interviews with Project Management Experts on YouTube at https://bit.ly/2NDY8wd
by Dharam CW2 | Jul 24, 2023 | General
Delivering a successful project is challenging, especially when there are multiple stakeholders. However, even if a project is performed on time, on budget, and to the expected scope, it can still be regarded as a success only if the stakeholder expectations are managed appropriately.
Each project stakeholder has certain expectations. Project managers are at the forefront of potentially disastrous situations when such expectations conflict. They must address and resolve the issue or risk jeopardizing the project and their position. Because the fundamental cause of problems is only sometimes apparent, project leaders and teams must analyze links between issues and stakeholder motives using interpersonal skills such as resolving conflict, resistance to change, and trust building.
Project Stakeholders
Project Stakeholders
A stakeholder is an individual, group, or organization that is affected by the result of a business venture or project.
Stakeholder interactions may positively or negatively impact the project’s life cycle. Thus, a project leader must identify important stakeholders and develop a stakeholder management plan to satisfy their demands. Using project management tools and strategies to keep track of the key stakeholders is an excellent method to remain on top of things and ensure that project stakeholders remain satisfied and productive.
Types of Stakeholders
Internal Stakeholders
An internal stakeholder is somebody whose interest in the project is directly linked to their affiliation with the entity in charge. Internal stakeholders want the strategic and commercial goals of the project to be realized. They might be project managers, team members, sponsors, owners, or investors.
External Stakeholders
External stakeholders are not directly linked with the company but are important to the business or are influenced by the project in some way. Those are frequently supply chain participants, creditors, or public groups.
Stakeholder Management
The stakeholder management process includes communicating project status, expenses, and barriers to stakeholders to increase visibility, navigate changes in project direction, and manage expectations. Project stakeholders are those involved in the project or whose interests may be influenced by the project’s execution or completion.
Stakeholder management helps project managers keep change at the forefront of their thoughts while making it less intimidating. Furthermore, the stakeholder management plan is a reminder for every interaction the project managers have with direct or indirect stakeholders, helping them maintain a genuine link between the project and day-to-day operations.
Closing the Stakeholder Expectation Gap – Means
An effective stakeholder management process ensures that timely and relevant feedback is provided, and that the stakeholder management strategy directs the change effort. The project manager maintains stakeholder expectations, resolves conflicts, and identifies and fixes any problems that develop throughout the project. In general, the following are the fundamental parts form the stakeholder management process:
The Necessary Elements For Successful Stakeholder Management
- Managing stakeholder expectations: The project is more likely to succeed when stakeholders’ expectations are actively managed. As a result, to ensure perfect conformance with project goals and expectations and to continue the project management effort, the project manager must continually negotiate and influence the demands of stakeholders.
- Managing stakeholder perception: It is critical for project success to ensure that stakeholders are involved in the project regularly and are kept up to date on the project’s progress. High-level stakeholder perception increases the likelihood that stakeholders will provide the necessary support and the project will be completed as intended.
- Keeping track of stakeholder activity: The project manager is primarily responsible for recording and tracking all stakeholders’ activity. As a result, to secure stakeholder acceptance and project communications plan adherence, the project manager should formally document all contacts with stakeholders and keep records of the project’s outcomes.
- Solving problems and resolving conflicts:Â To avoid challenges and conflicts, the project manager should address stakeholders’ concerns and identify risks and threats in collaboration with conflict management. By referring to change requests, the project manager can generate solutions.
Understanding the components of the managing stakeholder’s process enables the project manager to engage with stakeholder expectations and demands and build action plans to be used when disputes and challenges emerge. The project manager can utilize the following tools to assess conflicts and challenges, as well as manage stakeholders on an individual and group level:
Tools To Assess Conflicts And Challenges In Managing Stakeholder’s Process
- Issue logs:Â An issue log is a tool for assessing issues and documenting resolutions. It is a document with a rigid categories structure that allows each issue to be placed in the appropriate category (issue group). The project manager uses problem logs to ensure that each stakeholder understands the project and maintains positive working interactions among all stakeholders, including project team members.
- Change Logs:Â It is a tool for documenting any changes that occur throughout a project. The project manager uses change logs to track changes and their impact on project goals and deliverables. A change log should be provided to project stakeholders and should include data on changes to risks, uncertainties, costs, and budgets.
A change request for project deliverables may result from the technique for managing and engaging stakeholders. Changes to the stakeholder management approach and registry are also feasible. The method of managing stakeholders allows for evaluating and modifying stakeholder benefits created earlier in the project’s life cycle.
Five pitfalls to address while dealing with the expectations of stakeholders
5 Pitfalls To Address While Dealing With The Expectations Of Stakeholders
- Identify the stakeholders
A project often involves many stakeholders, and it can take time to identify all of them. A stakeholder is a person, a group, an organization, or a set of organizations that are actively involved in or may be affected by the project. Stakeholders can have an impact on a project in a variety of ways.
For example, if a stakeholder is top management in an organization and is not completely committed to a project, it may drastically limit buy-in throughout the business. Founders and C-suites are also stakeholders who can positively or negatively impact a project. Therefore, the identification of stakeholders is a critical step in managing expectations.
- Classifying stakeholders
Effective stakeholder management necessitates a project manager categorizing stakeholders based on their role in project completion. A project manager must determine which stakeholders are supporters and which may be obstacles to the project. It might be challenging to define the types of risks, where and when each risk exists, the impact on the project, or how to build strategies to handle possible risks if stakeholders cannot be classified.
- Mapping expectations
Project managers must resolve possible concerns, keep stakeholders involved and motivated, and finish the project on time. A project manager must have a good understanding of all stakeholders’ expectations. Stakeholder analysis and adequate documentation can be useful in mapping expectations. Stakeholders may have different priorities when completing tasks, milestones, or the full project. Their interests may be interpreted differently and have different definitions of success.
For example, one stakeholder may prioritize project completion on time, while another defines success as keeping it under budget. Mapping expectations and obtaining clarity among all stakeholders enhances the possibility that a project manager and their team can effectively complete a project.
- Using appropriate communication methods
Stakeholder management requires determining and implementing appropriate communication methods. To successfully manage stakeholder expectations, a project manager must establish the available and preferred communication mechanisms for stakeholders. A poor or incorrect communication approach can lead to distrust and dissatisfaction between stakeholders and a project manager. It is also essential to adjust communication tactics and frequency based on elements such as time, message, purpose, secrecy, or changes based on stakeholder contexts.
- Engaging stakeholders
Stakeholder engagement during the project with frequent updates boosts stakeholder confidence, which is essential for project success. In addition, efficient stakeholder management necessitates the involvement of stakeholders in decision-making by the project manager.
Although a project manager may believe they have already determined the optimal course of action, they should incorporate stakeholders in procedures and pertinent talks to ensure all options have been examined; otherwise, key possibilities and expectations may be missed.
Closing the Stakeholder Expectation Gap – Methods
Before beginning a new project, start by identifying all stakeholders. First, identify those impacted by the project and the organizations that will influence the project. Then, using the strategy outlined below, begin developing strong relationships with each stakeholder.
Closing the Stakeholder Expectation Gap – Methods
- Analyze stakeholders
Conduct a stakeholder analysis or an evaluation of the key participants in a project and how the initiative will affect their issues and requirements. Determine their unique qualities and interests. Find out what motivates them and what frustrates them. Define responsibilities and levels of engagement, and assess whether there are any disputes among stakeholders.
- Assess the influence
Determine the extent to which stakeholders can have an impact on the project. The more powerful a stakeholder is, the more a project manager will require assistance. When evaluating stakeholders, consider the question, “What’s in it for them?” Knowing what each stakeholder needs or desires from the project allows the project manager to measure their degree of support. Remember to weigh support against influence, like Is it more necessary to have strong support from a low-level stakeholder or moderate support from a high-level stakeholder?
- Understand their expectations
Determine the exact expectations of stakeholders. Then, when necessary, seek clarification to ensure they are thoroughly understood.
- Define “success”
Every stakeholder may have a distinct definition of project success. Discovering this towards the end of the project is a potential disaster. Instead, gather definitions and integrate them into the objectives to guarantee that all stakeholders support the final results.
- Keep stakeholders involved
- Don’t just provide updates to stakeholders.
- Solicit their opinions.
- Schedule time for brief meetings to get to know them better.
- Determine each stakeholder’s ability to engage while keeping time restrictions in mind.
- Keep stakeholders informed
- Send regular status updates.
- One update each week is generally adequate.
- Hold project meetings as appropriate, but allow enough time between them.
- Respond to stakeholders’ inquiries and emails as soon as possible.
- Regular contact is usually valued – and may help ease the impact when you have unpleasant news to deliver.
These are some of the fundamentals of developing effective stakeholder connections. However, like with any relationship, there are subtleties that every effective project manager knows, such as understanding the distinctions and responding successfully to various types of stakeholders.
Final Thoughts
There is a link between resolving conflicts in stakeholder expectations and project success. Similarly, the faster project teams defuse a potentially dangerous situation by recognizing the source of conflicts, the link between issues, and the motivations of stakeholders, the simpler it is to develop trust, settle conflicts, and overcome resistance to change.
Using diverse modes of communication between the project team, senior management, and stakeholders improves prospects for mutual understanding. These methods may help the project managers to meet the stakeholder expectations and reduce the risk of project disaster.
Feel free to check out my discussion on this topic with Thomas Walenta in YouTube
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