Application 2 – Annotated Bibliography

26 THE KEYS TO SUCCESSFUL PROJECT MANAGEMENT

P. RICHARD JEANNERET

The title to this chapter could just as easily read "the keys to successful consulting" because I honestly believe that one will never be a successful con- sultant unless she or he is a successful project manager. Of course we could spend considerable time defining successful, but I believe that definition, at least from my perspective, will become apparent to the reader.

This chapter presents an overview of project management as performed by I/O psychologists when they offer professional consulting services to clients. I am writing primarily on the basis of my consulting experience; how- ever, I have a sense that most, if not all, of the information presented here would be equally relevant for I/O psychologists working inside organizations, in research and development roles, or practicing alone as opposed to in a large consulting firm. Similarly, a lot of the information presented here is relevant to other professions that accomplish their objectives using project management strategies and techniques.

I begin with some definitions and descriptions of the terms project, proj- ect management, and project manager. Next, I describe the major components of project management in a time-based sequence. Finally, I discuss some of the moderating variables that contribute to whether a project has been suc- cessfully managed.

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http://dx.doi.org/10.1037/11755-026 The I/O Consultant: Advice and Insights for Building a Successful Career, edited by J. W. Hedge and W. C. Borman Copyright © 2008 American Psychological Association. All rights reserved.

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DEFINITIONS AND DESCRIPTIONS

Project

A project is a well-defined set of professional activities or tasks done to deliver a specific service, product, or result for a client in accord with an agreed on time and cost budget. For the purposes of this chapter, the service, product, or result could be any output considered to be within the domain of I/O psychology. The client typically would be an organization, although con- ducting a vocational assessment for a friend would still be considered a proj- ect from a definitional perspective. Projects come in all sizes and shapes, and frequently one project can lead to another.

Project Management

Project management is the application of knowledge, skills, abilities, and other characteristics needed to achieve the objectives of a project. It has become a recognized discipline, and in many respects is a much larger profes- sion than the domain I refer to in this chapter. For example, advanced degrees (often masters of science) are offered in project management by many busi- ness schools. Alternatively, I would imagine it is the rare I/O educational pro- gram at any level that discusses project management.

The discipline seems to have many of its origins in work initiated by the military to monitor, schedule, and control contractual obligations for various defense programs. Today, one can become certified as a project management professional, and with the proper credentials join the Project Management Institute. This organization was founded in 1969 to foster the growth and pro- fessionalism of project management. Appendix 26.1 at the end of this chapter contains a bibliography of references for consideration by the reader interested in gaining more knowledge about the domain of project management.

Project Manager

In the most straightforward sense, the project manager is the individual responsible for all project management activities. But the role is really a com- plex and multifaceted one. I have assembled a personal list of descriptors for a project manager, and I present them alphabetically because I have no basis for concluding that one descriptor is more important than any other.

Project managers are administrators, advisors, analyzers, cheerlead- ers, coaches, communicators, coordinators, cost controllers, creators, decision makers, delegators, facilitators, leaders, managers, mentors, negotiators, orga- nizers, peacemakers, planners, problem solvers, quality controllers, sched- ulers, team builders, and visionaries. Although this list is no doubt imperfect

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or incomplete, it provides a sense of the various roles the project manager must fulfill, often performing several of the roles almost simultaneously.

Although I have been reluctant to assign any type of values to the above descriptors, Posner (1987) quantified the frequency of use for various project management skills. Posner asked 287 individuals attending project manage- ment seminars to identify what skills made a difference in successfully man- aging a project. The results of that survey found that communication skills (both listening and persuading) were endorsed as essential by 84% of the respondents. Next, organizational skills (analyzing, planning, and goal set- ting) were considered critical by 75% of the respondents. The third most fre- quently endorsed competency was team building (defined as having empathy and providing motivation and esprit de corps), which was endorsed by 72% of the survey participants. Leadership skills (including being energetic, dele- gating, and visionary) was mentioned by 68% of the respondents. In fifth place at 59% was coping skills (defined as having flexibility, persistence, patience, and creativity). In sixth place at 46% was technical skills (experi- ence, knowledge regarding the project). In general I am in agreement with this rank order, although I believe leadership and team-building skills are not as distant from communication skills as Posner's research would suggest.

During my career as the senior manager of a consulting practice, I have always told new consultants that there are really only two levels of growth to be pursued in the field of consulting: project management and ownership. One of the primary ways I have evaluated the success of a consultant has been on the basis of his or her progress in developing and executing in the role of project manager.

Most of the training for a project manager is on the job; this is possible because of the multiple roles each consultant fulfills during a relatively short period of time. A consultant can be the project manager of one assignment and be a project team member on two other assignments, regardless of that person's "level." This has been true for me as well as all the other senior mem- bers of our firm's consulting staff. In more formalized organizations, this may not be the case; when consultants fulfill both the project manager and team member roles, this supports a matrix management organization. In my judg- ment, the matrix management process is most appropriate for the daily opera- tion of a professional organization and directly supports a project management environment. One of my reasons for this assertion is that matrix management permits both the consultant and project manager opportunities to fit skills and interests to project content and responsibilities. Another strength of matrix management is that it reduces consultant downtime. A potential neg- ative for some consultants is the requirement for multitasking, often over very short time periods.

Alternatives to matrix management include those identified by Caan, Wright, and Hampton (1997), such as the military model, Projects in

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Controlled Environments (PRINCE), and what is called the soft analysis technique. The military model emphasizes detailed protocols and "doing it by the book." The other two strategies require high levels of participative plan- ning by project team members and by external reviewers in the soft analysis technique. These strategies are focused primarily on project problem solving and scheduling functions.

Because, in my opinion, a large part of one's success as a consultant is evaluated by her or his progress in becoming a project manager or carrying out project management duties, a frequent question to me has been, What does it take? Again, I could mention many attributes, and they would under- lie the previous alphabetical list that I presented. However, a few qualities are particularly important; again I list them in alphabetical order: collegial, deductive, ethical, flexible, intuitive, sensitive, technically competent, and tolerant of ambiguity. In essence, a successful project manager will have a sat- isfied project team that delivers a superior quality service, product, or result to a highly satisfied client.

A final thought about becoming a successful project manager is the require- ment to recognize and properly balance multiple responsibilities. A project manager has responsibilities to the client, the consulting firm (employer), the project team members, and possibly to the public at large (e.g., certain types of consulting for a law enforcement agency). These responsibilities are par- ticularly important when the project manager is in such roles as adminis- trator, communicator, facilitator, negotiator, organizer, or problem solver. Under any circumstance, when client-consultant problems rise, the project manager should be able to resolve them.

PROJECT MANAGEMENT COMPONENTS

This section briefly describes each project management function in a somewhat time-sequenced manner. A project usually begins with a proposal and concludes with a report on or implementation of the deliverable or deliv- erables. Certain components, such as communications and monitoring, are taking place throughout the life of the project.

Proposal

The ideal circumstance is to have the project manager identified for a spe- cific assignment play a significant role in the preparation and delivery of a pro- posal. The proposal usually will present at least a brief scope and plan of work as well as a potential schedule and a cost estimate. Often, the proposal will des- ignate a project manager and team. If there are opportunities to present the pro- posal to the prospective client, the project manager should have a major role

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in the presentation. This not only will give the prospective client the opportu- nity to learn something about the consultant who will be responsible for the project, it also will give the proposed project manager the opportunity to gain some insight into how the prospective client perceives the proposed project. Frequently, significant negotiations take place during such presentations, and the project manager should have a role in deciding on any final commitments made by the consulting firm. Similarly, the project manager also should have a full understanding of any commitments that are made by the prospective client. These matters usually are finalized as part of a written contract.

Project Accomplishment

The work necessary to deliver the specific service, product, or result is accomplished in accord with the proposal and often is laid out in a formal contract that incorporates the proposal. Several aspects of project accom- plishment will vary according to the nature of the assignments and the client environment. However, some of the basic work steps managed by the project manager are discussed next.

Project Initiation

During this work phase, final project requirements and client expecta- tions are solidified. Also, time lines and staffing levels, as well as the need for access to and participation by client representatives, are determined and scheduled when possible. Administrative matters such as access to facilities, work space, security compliance, and related matters are resolved to facilitate efficient work effort by the consultants. Additionally, if any areas of possible contention were not addressed in the project contract, such as intellectual property rights, invoicing practices and payment schedules, use of data, and publication of findings, they should be resolved at once.

If project design parameters have not been finalized, this is when they should be completed and confirmed. This is a critical issue for the project manager because the actual project design drives all the subsequent work activities, particularly those associated with data collection and analyses.

A major activity for the initiation phase is the preparation and delivery of project communications. An understanding of (a) what should be com- municated about the project itself, (b) who should receive the communica- tion, and (c) how the communication should be delivered are important considerations. Although these client communications are critical to project success, the project manager also needs to consider what communications are necessary for the project team and the consulting firm. Many of these com- munications will deal with the need for consultant resources (both in terms of technical competence and availability) to meet the project objectives.

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It is desirable for the project manager to meet with the client as much as possible early in the project to become knowledgeable about key indi- viduals and the organizational environment. Usually this interface occurs between the project manager and one or more designated client representa- tives who have responsibility for internally managing the project. In theory, these internal project managers have roles similar to those of the consulting firm project manager, but in reality, this usually is not the case. In fact, the consulting project manager should be sensitive to the circumstances of the internal project manager or representative(s). They may see their project roles as simply extra work being piled onto the workloads created by their "regular" jobs. Although this may not be a problem for every consulting assignment, the savvy project manager is always on the lookout for this type of issue because such circumstances can have unexpected consequences for project accomplishment.

Staffing and Assignments

If the project requires consulting resources beyond those of the project manager, the manager needs to assemble a consultant team and assign the various tasks to the team members. The project manager must pay partic- ular attention to the professional resources assembled in order to meet the project's technical requirements. This may include such capabilities as con- ducting statistical analyses and completing interfaces with client human resource information system personnel and technology.

Scheduling

The scheduling of both consultant and client resources is particularly important to the efficient and timely progress of a project. Scheduling often is either forward looking (i.e., estimate the time to complete each activity to determine the end date) or backward looking (i.e., set an end date and make the activities fit in between). In my experience, the client, not the consultant, more often has been responsible for project schedule changes and delays. How- ever, this responsibility does not necessarily mean extensions to expected com- pletion dates; it simply means that the consultant must find ways to become more efficient and otherwise complete the assignment on time.

Two methods that have been available to assist project managers in scheduling their projects are known as the program evaluation and review tech- nique (PERT) and the critical path method (CPM). The U.S. Navy, in associ- ation with its contractors who were awarded Polaris Submarine projects beginning in 1958, developed PERT to schedule and track time. CPM was developed by DuPont and first used to schedule construction projects. Origi- nally PERT was used only to schedule time, whereas CPM was used to con-

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trol time and cost aspects and their trade-offs for a project. It is my under- standing that PERT and CPM are equally effective for scheduling activities and marking project progress. (For a comprehensive description of both methods, see Cammarano, 1997.)

Although PERT and CPM are potentially useful methods for control- ling project time and costs, numerous software products now exist that can support the project management effort. These products range from the sim- ple to the complex, and the key to their use is finding the balance between the project needs and the software capability (Page, 1989). For example, some software programs are intended for just time and cost management. Other products build historical databases, provide task lists, create invoices, and pre- pare various project communications. No doubt, project management soft- ware will continue to evolve, but some current products include Primavera, MS Project, Business Arts (Projectsheet, Tasksheet, and Topsheet), and iS*Project Professional XE Edition (see Essex, 2007; Hutchins, 1999).

Project Work Activities

These activities revolve around the primary purpose or purposes of the project and include background research, data collection, and data analyses. The project manager may or may not be actively involved in these tasks.

Monitoring

Closely allied with scheduling are monitoring activities accomplished by the project manager. Costs, progress toward accomplishing objectives, and quality are usually the major aspects of a project that must be monitored from start to finish. PERT, CPM, and other project management software packages are especially useful for monitoring purposes. So are Gantt charts, first devel- oped in 1917 by Henry Gantt to support the monitoring and control concepts embedded in scientific management. Gantt charts are used to track planned versus actual project progress, usually on a task-by-task basis. Critical tasks and milestones are identified, and any slippage is noted. I have found that such charting can be useful for large projects (at least $1,000,000 in fees and taking more than 6 months to complete), but even then, actual use and value vary considerably.

Monitoring and its close ally, scheduling, are essential to successful proj- ect management. Not only does the project manager need to keep the project on track with respect to time and budget, the manager must also control all changes to the work plan and avoid "project creep." The "creep" occurs when the client requests slight changes here and some other minor changes there without altering the cost budget or delivery schedule, and the project man- ager is the first line of defense. How best to manage project creep depends on

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the specifics of the project and the underlying circumstances; hence I can only emphasize the importance of being aware of it and developing a strategy to control it.

Cost and billing management are also essential monitoring activities performed by the I/O project manager, but I believe few of them have any training in accounting, fee estimating, or financial management and thus learn these skills on the job. The basic financial elements of managing a proj- ect are as follows:

• Cost estimate. This figure is the total of the proposed professional fees and expenses needed to complete the project. Often this is a "not to exceed" amount and represents a commitment by the consulting firm to provide the project deliverables for the pro- posed dollar amount. The project management strategy (dis- cussed previously) actually implemented could be influenced by the costing requirement. For example, a fixed-fee project might require that certain consultants be specified in advance without any permitted changes. Thus, a military model might be the best project management strategy. Alternatively, a professional fee costing based on billing rates for consultant categories might allow for the interchange of individuals with the same rate, which is more easily accomplished with a matrix management strategy.

• Budget. This represents the amount of consulting time, and hence fees, given that Consultant Time X Billing Rates = Professional Fees. There are also costs, including travel, supplies, and other expenses related to the project, that are billed to the client. In a fixed-cost project, all fees and expenses are included in an agreed- to amount. In other circumstances, project expenses (with or without mark-up) are billed as incurred and have no specific budgeted amount. Although clients are sometimes resistant to such a practice, it is extremely difficult to predict travel expenses, for example, over a 1-year period.

• Billings and collections. Although practices no doubt vary, my experience is that the project manager has the responsibility for the final approval of all client billings and the timely collection of accounts receivable.

The financial success of a project is evaluated in terms of establishing a sound cost estimate and then meeting (or possibly being below) the time and expense budget while complying with all the other project objectives. Included with this monitoring is the approval of all time and expense billings. In the event that an actual effort (e.g., consultant time for a month) exceeds the budget amount, the project manager must determine where the excesses occurred and make adjustments in accord with the budget.

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The project manager must also monitor the technical quality of a proj- ect. This technical oversight begins with the design phase of the project and continues through to the completion of the final report and implementation of any deliverables. If the project manager does not have the technical knowl- edge necessary to monitor certain aspects of the project, then the expertise to do so should be obtained by the project manager. A person with such expert- ise may serve as a technical advisor to the project team.

Project Completion

At this point, a comprehensive report often is submitted and perhaps a presentation given on the project outcomes. The project manager has respon- sibility for ensuring the technical quality and acceptability of all deliverables. Also, implementation of deliverable programs should be verified by the proj- ect manager for compliance with recommended procedures.

Administratively, the project manager should ensure that all documents are properly stored in compliance with relevant retention regulations and organizational practices. Final project accounting and billing should be com- pleted as well.

One activity that probably is not completed as often as it should be is project evaluation. A rigorous review of all aspects of the project would no doubt lead to significant improvements to the management of future projects. It also provides an opportunity for the project manager to receive feedback and provide feedback to the team members.

SOME ADDITIONAL THOUGHTS AND MODERATING VARIABLES

The previous sections of this chapter have defined the project manager role and described the major components of project management. In this final section, I mention a few additional thoughts and some moderating variables that can influence the success of a project.

Project management requires the successful balancing of four variables: project scope, professional work effort, schedule, and cost. Unfortunately, the project manager is not always able to effectively manage all four variables at the same time. Scheduling and availability of resources on the client's end can be problematic and have a significant impact on costs, quality, and delivery of outcomes on time.

Collegial teams of professionals require a managerial style different from those of more traditional management. Each project manager must find the appropriate style on a continuum ranging from micromanager to laissez-faire delegator. Furthermore, regardless of specific style, it is important for the proj- ect manager to provide feedback to team members—a communication link that is often overlooked.

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Projects are created for some specified purpose, which typically can be classified into one of three categories: an organizational need, a technologi- cal need, or a legal requirement. The lines between these three categories are often blurred, and frequently a project is being conducted that could easily be classified equally into two or even all three of the categories. Although the purpose of the project is critical to many components of how it is accom- plished, the basic tenets of project management expressed in this chapter apply in virtually all circumstances.

Projects vary in size from the very small (e.g., a one-time career assess- ment for an individual seeking personal guidance) to the very large (e.g., a multi'inillion-dollar selection system for a private- or public-sector employer). The principles set forth in this chapter apply to the complete continuum of project sizes. What is influenced by project size is the overall organization of the consultant resources. For very small projects, the project manager is the one and only consultant resource assigned. This could be a sole practitioner, but it also could be a small client assignment that could be accomplished by one person in a consulting firm of any size. Frequently, individual psycholog- ical assessments meet this criterion, as might coaching, certain types of selec- tion studies, and various organizational assignments. At the other extreme, very large projects require a project manager and one or more assistant man- agers or team leaders.

One final thought deserving mention is the problems associated with the question, "Who is the client?" Various individuals within the client organization often have a stake in the conduct and outcomes of a consulting assignment, but their interests may not always be compatible. Thus, there may be internal com- petition for control of the project. In other circumstances, internal resources might vie for access to project outcomes and attempt to impose their "spin" on the results. These are just two examples of the types of issues that could arise and create undue stress for the project manager. One resolution to this problem is to have a client representative designated as the channel for all work efforts and products that flow in either direction. However, this strategy will not necessar- ily deter the more aggressive client representatives or the executive with con- siderable power who decides to get involved in the project.

SUMMARY

In summary, the question to be answered is, "What are the keys to suc- cessful project management?" The answer is, "There are many keys," and which keys are most important can change as the project progresses. I will offer my "top six" list, recognizing that it is based on my experiences as the senior manager of a moderate-sized I/O consulting practice and as the project manager for a wide range of assignments and clients.

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A project manager should

• possess many (ideally all) of the attributes and skill sets identi- fied for the project manager job;

• gain a good understanding of the client's needs, resources, and climate, and then react accordingly;

• acquire a knowledge of each of the project management com- ponents from the proposal stage to project completion;

• use a project management style that is consistent with the needs of both the client and the consulting team;

• maintain a balance among competing variables of (a) accom- plishing all project activities, (b) achieving a high quality work product, (c) meeting the project schedule (milestones and completion dates), and (d) controlling project costs (fees and expenses); and

• evaluate the success of a project on completion and look for ways to improve management skills.

Project management lies at the heart of the work of an I/O psychologist consulting in an applied setting. When the various project management activities are performed well, the profession gains increased acceptance in the world of work. Furthermore, satisfied clients are a wonderful source for both follow-up assignments and referral business.

APPENDIX 26.1

BIBLIOGRAPHY OF REFERENCES

Cleland, D. I. (1990). Project management techniques handbook—Advanced. Centerville, VA: Management Control Institute.

Darnall, R. (1997, July). The emerging role of the project manager. PM Network, 64-65.

Davis, E. W. (1983). Project management: Techniques, applications, and managerial issues (2nd ed.). Norcross, GA: AIIE Monograph.

Dean, B. V. (1985). Project management: Method and studies. New York: Elsevier.

Goodman, L. J. (1987). Project planning and management: An integrated system for improving productivity. New York: Van Nostrand Reinhold.

Graham, R. J. (1985). Project management: Combining technical andbehavioral approaches for effective implementation. New York: Van Nostrand Reinhold.

Harrison, F. L. (1985). Advanced project management (2nd ed.). New York: Halstead.

Kerzner, H. (1998). Project management: A systems approach to planning, scheduling, and controlling (6th ed.). New York: Wiley.

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Lock, D. (1998). Project management (4th ed.). Hants, England: Gower.

Meredith,]. R., &Mantel, S. J.,Jr. (2003). Project management: A managerial approach. New York: Wiley.

Project Management Institute. (2004). A guide to the project management body of knowl- edge (3rd ed.). Newtown Square, PA: Author.

Roman, D. D. (1986). Managing projects: A systems approach. New York: Elsevier.

Rosenau, M. D., Jr. (1991). Successful project management (2nd ed.). New York: Van Nostrand Reinhold.

Silverman, M. (1988). Project management: A short course for professionals (2nd ed.). New York: Wiley.

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