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Chapter 2

Organization and Project Manager

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Projects and Organizational Strategy

Strategic management — the science of formulating,


implementing, and evaluating cross-functional decisions
that enable an organization to achieve its objectives.
Consists of:
• Developing vision and mission statements
• Formulating, implementing, and evaluating
• Making cross-functional decisions
• Achieving objectives

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Stakeholder Management

Stakeholder analysis is a useful tool for demonstrating


some of the seemingly irresolvable conflicts that occur
through the planned creation and introduction of new
projects.

Project stakeholders are defined as all individuals or


groups who have an active stake in the project and can
potentially impact, either positively or negatively, its
development.

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Identifying Project Stakeholders

Internal Stakeholders External Stakeholders


• Top management • Clients
• Accountant • Competitors
• Other functional managers • Suppliers
• Project team members • Environmental, political,
consumer, and other
intervener groups

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Project Stakeholder Relationships

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Managing Stakeholders

1. Assess the environment.


2. Identify the goals of the principal actors.
3. Assess your own capabilities.
4. Define the problem.
5. Develop solutions.
6. Test and refine the solutions.

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Forms of Organization Structure

• Functional organizations—group people performing


similar activities into departments
• Project organizations—group people into project
teams on temporary assignments
• Matrix organizations—create a dual hierarchy in which
functions and projects have equal prominence

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Functional Organizational Structure

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Strengths and Weaknesses of Functional
Structures
Strengths for Project Weaknesses for Project
Management Management
1. Projects developed within 1. Functional siloing makes it
basic functional structure difficult to achieve cross-functional
require no disruption or cooperation.
change to firm’s design.

2. Enables development of in- 2. Lack of customer focus.


depth knowledge and intellectual
capital.

3. Allows for standard career 3. Longer time to complete projects.


paths.
Blank 4. Varying interest or commitment.

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Project Organizational Structure

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Strengths and Weaknesses of Project
Structures

Strengths for Weaknesses for


Project Management Project Management
1. Project manager sole authority 1. Expensive to set up and
maintain teams
2. Improved communication 2. Chance of loyalty to the project
rather than the firm
3. Effective decision making 3. Difficult to maintain a pooled
supply of intellectual capital
4. Creation of project management 4. Team member concern about
experts future once project ends
5. Rapid response to market Blank
opportunities

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Matrix Organizational Structure

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Strengths and Weaknesses of Matrix
Structures

Strengths for Weaknesses for


Project Management Project Management
1. Suited to dynamic environments 1. Dual hierarchies mean
two bosses
2. Equal emphasis on project 2. Negotiation required in
management and functional order to share resources
efficiency
3. Promotes coordination across 3. Workers caught between
functional units competing project and
functional demands
4. Maximizes scarce resources Blank

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Project Management Office (PMO)
• A project management office (PMO) is an organizational structure that standardizes
the project-related governance processes and facilitates the sharing of resources,
methodologies, tools, and techniques.

• The responsibilities of a PMO can range from providing project management support
functions to the direct management of one or more projects.

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Project Management Offices

Centralized units that oversee or improve the management


of projects
Resource centers for:
• Technical details
• Expertise
• Repository
• Center for excellence

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PMO functions
• Managing shared resources across all projects administered by the
PMO;
• Identifying and developing project management methodology, best
practices, and standards;
• Coaching, mentoring, training, and oversight;
• Monitoring compliance with project management standards, policies,
procedures, and templates by means of project audits;
• Developing and managing project policies, procedures, templates,
and other shared documentation (organizational process assets); nd
• Coordinating communication across projects.

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Types of PMO
• Supportive. Supportive PMOs provide a consultative role to projects by
supplying templates, best practices, training, access to information, and
lessons learned from other projects. This type of PMO serves as a project
repository. The degree of control provided by the PMO is low.

• Controlling. Controlling PMOs provide support and require compliance


through various means. The degree of control provided by the PMO is
moderate. Compliance may involve:
– Adoption of project management frameworks or methodologies;
– Use of specific templates, forms, and tools; and
– Conformance to governance frameworks.

• Directive. Directive PMOs take control of the projects by directly managing


the projects. Project managers are assigned by and report to the PMO. The
degree of control provided by the PMO is high.

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PMO Control Tower
• Performs four functions:
– Establishes standards for managing projects
– Consults on how to follow these standards
– Enforces the standards
– Improves the standards

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Organizational Culture
• Unwritten: projects require the assistance of personnel
from multiple departments, the support is expected to be
there
• Rules of behavior: allowing a common language for
understanding, defining, or explaining phenomena and
then providing with guidelines as to how best to react to
these events.
• Held by some subset of the organization: may not be
company wide
• Taught to all new members: pick up the behavior as they
observed
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Key Factors That Affect Culture
Development

• Technology
• Environment
• Geographical location
• Reward systems
• Rules and procedures
• Key organizational members
• Critical incidents

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Organizational Culture: Effects on Project
Management
1. Departmental interaction: functional and matrix organizations, power
either resides directly with department heads or is shared with project
manager
2. Employee commitment to goals: culture that promotes employee
commitment, contribute, self-sacrifice, or on multiple tasks, to another
culture that, provided you don’t get caught, there is nothing wrong
with simply going through the motions.
3. Project planning: it is better to engage in poor estimation and project
planning than to be late with deliverables?
4. Performance evaluation: reward systems that are positive and
reinforce a strong project mentality, they will reap a whirlwind of
opportunities

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Discussion

1. Who are Rolls’s principal project management


stakeholders? How would you design stakeholder
management strategies to address their concerns?

2. Given the financial risks inherent in developing a jet


engine, make an argument, either pro or con, for Rolls
to develop strategic partnerships with other jet engine
manufacturers in a manner similar to Airbus’s consortium
arrangement. What are the benefits and drawbacks in
such an arrangement?

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Project Manager
• The project manager plays a critical role in the leadership of a project
team in order to achieve the project’s objectives.

• Most project managers become involved in a project from its initiation


through closing. A project manager may also be involved in evaluation and
analysis activities prior to project initiation.
– Consulting with executive and business unit leaders on ideas for
advancing strategic objectives, improving organizational performance,
or meeting customer needs.
– assist in business analysis, business case development, and aspects of
portfolio management for a project.
– follow-on activities related to realizing business benefits from the
project.

• PM role is tailored to fit the organization in the same way that the project
management processes are tailored to fit the project.

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Project Manager
• Membership and roles: A large project comprise s many members,
each playing a different role, representing multiple business units or groups
within an organization.

• Responsibility for team: Project managers responsible for what their


teams produce, needs to take a holistic view of their team’s products in order
to plan, coordinate, and complete them.
– Review the vision, mission, and objectives for alignment,
– Use their interpretation to communicate and motivate their teams toward
the successful completion of their objectives.

• Knowledge and Skills: Project managers are not expected to perform


every role on the project, but should possess project management
knowledge, technical knowledge, understanding, and experience.

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Operations managers
Functional manager are responsible for
focuses on providing ensuring that business
management oversight operations are efficient.
for a functional or
business unit.

Project manager leads the


team that is responsible for
achieving the project
objectives.

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Sphere of Influence

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#1 Project
• Project manager leads the project team to meet the project’s
objectives and stakeholders’ expectations, balancing the competing
constraints on the project with the resources available.
• Project managers also performs communication roles between the
project sponsor, team members, and other stakeholders.
– Providing direction and presenting the vision of success for the
project.
– Use soft skills (e.g., interpersonal skills and the ability to manage
people) to balance the conflicting and competing goals of the
project stakeholders in order to achieve consensus, that the
relevant stakeholders support the project decisions and actions
even when there is not 100% agreement.

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#1 Project (Communication Skills)
• Developing finely tuned skills using multiple methods (e.g., verbal,
written, and nonverbal);
• Creating, maintaining, and adhering to communications plans and
schedules;
• Communicating predictably and consistently;
• Seeking to understand the project stakeholders’ communication
needs;
• Making communications concise, clear, complete, simple, relevant,
and tailored
• Including important positive and negative news
• Incorporating feedback channels;

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#1 Project (Communication Skills)
• Involving the development of extensive networks of people
throughout the project manager’s spheres of influence.
• Develop, maintain and nurture informal networks
– the use of established relationships with individuals such as
subject matter experts and influential leaders.
• Use of these formal and informal networks allows the project
manager to engage multiple people in solving problems and
navigating the bureaucracies encountered in a project

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#2 The Organization
• Proactively interacts with other project managers for the following:
– Demands on the same resources,
– Priorities of funding,
– Receipt or distribution of deliverables, and
– Alignment of project goals and objectives with those of the
organization.
• Interacting with other project managers helps to create a positive
influence for fulfilling the various needs of the project.
• Works with the project sponsor to address internal political and strategic
issues that may impact the team or the viability or quality of the project.

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#2 The Organization
• Roles of Project Manager
– Demonstrate the value of project management,
– Increase acceptance of project management in the organization,
and
– Advance the efficacy of the PMO when one exists in the
organization
• Works closely with all relevant managers to achieve the project
objectives and to ensure the project management plan aligns with the
portfolio or program plan.
• Works closely and in collaboration with other roles, such as
organizational managers, subject matter experts, and those involved
with business analysis. .

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#3 The INDUSTRY
• The project manager stays informed about current
industry trends, sees how it may impact or apply to the
current projects.
• These trends include but are not limited to:
• Product and technology • Economic forces that impact the
development; immediate project;
• New and changing market • Influences affecting the project
niches; management discipline; and
• Standards (e.g., project • Process improvement and
management, quality sustainability strategies.
management, information
security management);
• Technical support tools;

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#4 Professional Discipline
• Continuing knowledge transfer and integration is very
important for the project manager.
• Professional development is ongoing in the project
management profession (e.g., universities, PMI) and in
other areas where the project manager maintains subject
matter expertise.
• Knowledge transfer and integration includes:
– Contribution of knowledge and expertise to others
– Participation in training, continuing education, and
development:
• May also orient and educate others regarding value of
project management approach in organization.
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Project Manager Competences
• Technical project management. The knowledge, skills, and
behaviours related to specific domains of project, program, and
portfolio management. The technical aspects of performing one’s
role.
• Strategic and business management. The knowledge of and
expertise in the industry and organization that enhanced
performance and better delivers business outcomes.

• Leadership. The knowledge, skills, and


behaviours needed to guide, motivate, and
direct a team, to help an organization achieve
its business goals.

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#1 Technical Project Management Skills

• Focus on the critical technical project management


elements for each project they manage.
– Critical success factors for the project,
– Schedule,
– Selected financial reports,
– Issue log.
• Tailor both traditional and agile tools, techniques, and
methods for each project.
• Make time to plan thoroughly and prioritize diligently.
• Manage project elements, including, but not limited to,
schedule, cost, resources, and risks.
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#2 Strategic and Business Management
Skills
• Ability to see the high-level overview of the organization and
• Effectively negotiate and implement decisions and actions that
support strategic alignment and innovation.
– Working knowledge of other functions
– Developing and applying pertinent product and industry
expertise
– Explain to others the essential business aspects of a
project;
– Work with the project sponsor, team, and subject matter
experts to develop an appropriate project delivery strategy;
and
– Implement that strategy in a way that maximizes the
business value of the project.
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#2 Strategic and Business Management
Skills
• Project manager should be knowledgeable enough to explain
the following aspects and to ensure alignment of the following
Aspects Alignment
• Strategy • Strategy
• Mission • Mission
• Goals and objectives • Goals and objectives
• Product & services
• Operations • Priority
• Market and market • Tactics
conditions (customers, • Deliverables (products /
current state, trend, time services)
to market)
• Competition (what, who,
position in the market)

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#2 Strategic and Business Management
Skills
• Strategic and business skills help the project manager to determine
which business and strategic factors to be considered:
1. Risks and issues,
2. Financial implications,
3. Cost versus benefits analysis (e.g., net present value, return
on investment), including the various options considered,
4. Business value,
5. Benefits realization expectations and strategies, and
6. Scope, budget, schedule, and quality.
• The project manager should be continuously working with the
project sponsor to keep the business and the project strategies
aligned.

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#3 Leadership Skills
• A large part of the project manager’s role involves dealing
with people.
• Project management is more than just working with
numbers, templates, charts, graphs, and computing
systems.

“The ability to inspire


confidence and support
among the people who are
needed to achieve
organizational goals.”

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Leaders Versus Managers
• Leadership involves an awareness of a partnership, an active
collaboration between the leader and the team.
1. Exchange of purpose: Partnerships require that every worker be
responsible for defining the project’s vision and goals.
2. A right to say no: It is critical that all members of the project team
feel they have the ability to disagree and to offer contrary positions.
3. Joint accountability: each member of the project team is
responsible for the project’s outcomes and the current situation,
4. Absolute honesty: respect each team member’s role on the project,
we make an implicit pact that all information, both good and bad,
becomes community information

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Leaders Versus Managers

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Leaders Versus Managers

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Differences Between Managers and
Leaders

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How the Project Manager Leads
Project managers function as mini-CEOs and manage
both “hard” technical details and “soft” people issues.
Project managers:

1. acquire project resources


2. motivate and build teams
3. have a vision and fight fires
4. communicate

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#1 Acquiring Resources
Project are underfunded for a variety of reasons:
• Vague goals: kicked off with its overall goals still
somewhat “fluid”
• Lack of top management support
• Requirements understated: Contractors bidding on work
for governmental agencies underbid to win these jobs
and then renegotiate contracts to increase profit margins
later
• Insufficient funds: too many projects
• Distrust between top management and project managers

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#2 Motivating and Building Teams

Successful project managers must recognize that one vital


element in their job description is the ability to recognize talent,
recruit it to the project team, mould a team of interactive and
collaborative workers, and apply motivational techniques as
necessary.

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The Hierarchy of Needs [Maslow]
• Factors determining success:-
– the nature of the job
– achievement
– advancement
– company environment

• Factors contributing to insecurity:-


– employment instability
– lack of sufficient training
– need to be part of a team
– scepticism over a project’s success
– management frustration
– financial uncertainty
– new skills uncertainty

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Using Motivation theory

• Physiological: Catering facilities, Water fountains,


Buildings
• Safety
• Social: Provide communal facilities; Allow informal
communications.
• Esteem: Recognition of achievements; Appropriate
rewards.
• Self-realization: Training - people want to learn more;
Responsibility.

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Concerns raised over Maslow Theory
• Other research suggests that individual behaviour seems to respond
to several needs - not just one
• The same need (e.g. the need to interact socially at work) may cause
quite different behaviour in different individuals
• There is a problem in deciding when a level has actually been
"satisfied"
• The model ignores the often-observed behaviour of individuals who
tolerate low-pay for the promise of future benefits
• There is little empirical evidence to support the model. Some critics
suggest that Maslow's model is only really relevant to understanding
the behaviour of middle-class workers in the UK and the USA (where
Maslow undertook his research).

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Herzberg vs Maslow’s theory

• The commonality between the theories are:

• Motivation elements can be defined

• Herzberg argues that the lower end of Maslow’s model are hygiene elements not
motivational elements

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Herzberg vs Maslow’s theory

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Herzberg Motivation solutions
• Job Enlargement – widening the range of tasks – avoids repetition
and less monotony – new skills not necessary
– (could be seen as carrying out more work for the same amount
of pay)
• Job Rotation – increase interest and skill levels
– Could be a drain on training resources
– May decrease productivity
– Save on advertising
– Retains staff
– Meets skills shortages
• Job Enrichment – linking effort with performance rewards

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Latest Research on Motivation

• The surprising truth about motivation (MIT)

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#3 Having a Vision and Fighting Fire
• Project managers must be able to think strategically and to consider
the “big picture” for their projects.
• At the same time, crises and other project challenges that occur on a
daily basis usually require project managers to make immediate,
tactical decisions, to solve current problems, and to be detail-
oriented.

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#4 Communication (1 of 2)
It is critical for a project manager to maintain strong contact with all
stakeholders.
Project meetings feature task-oriented and group maintenance
behaviors.

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Purpose of Meetings

1. Define project and team players.


2. Provide an opportunity to revise, update, and add to
knowledge base.
3. Assist team members in understanding role in project as
part of whole and how to contribute to project success.
4. Help stakeholders increase commitment to project.
5. Provide a collective opportunity to discuss project.
6. Provide visibility for project manager’s role.

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Characteristics of an Effective Project
Manager

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Characteristics of Project Managers Who
Are Not Leaders

Personal Flaw Organizational Factors


• Sets bad example • Lack of top management
support
• Not self-assured
• Resistance to change
• Lacks technical expertise
• Inconsistent reward system
• Poor communicator
• A reactive organization
• Poor motivator
rather than a proactive,
planning one
• Lack of resources

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Leadership and Emotional Intelligence
Emotional intelligence refers to leaders’ ability to understand
that effective leadership is part of the emotional and relational
transaction between subordinates and themselves.
Five elements characterize emotional intelligence:
• Self-awareness
• Self-regulation
• Motivation
• Empathy
• Social skills

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Traits of Effective Project Leaders
1. Credibility: Is the project manager trustworthy and taken seriously
by both the project team and the parent organization?
2. Creative problem-solver: Is the project manager skilled at problem
analysis and identification?
3. Tolerance for ambiguity: Is the project manager adversely affected
by complex or ambiguous (uncertain) situations?
4. Flexible management style: Is the project manager able to handle
rapidly changing situations?
5. Effective communication skills: Is the project manager able to
operate as the focal point for communication from a variety of
stakeholders?

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What Are Project Champions?
A champion is an individual who “identifies with a new
development (whether or not he made it), using all the
weapons at his command, against the funded resistance of
the organization.

Champions can be:


• creative originator
• entrepreneur
• “godfather” or sponsor
• project manager

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Champion Roles

Traditional Duties Nontraditional Duties


• Technical • Cheerleader
understanding
• Visionary
• Leadership
• Politician
• Coordination and
• Risk-taker
control
• Ambassador
• Obtaining resources
• Administrative

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Creating Project Champions

• Identify and encourage their emergence.


• Encourage and reward risk takers.
• Remember the emotional connection.
• Free champions from traditional project management
duties.

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Project Management Professionalism

• Project work is becoming the standard for many


organizations.
• There is a critical need to upgrade the skills of current
project workers.
• Project managers and support personnel need dedicated
career paths.

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PMI Code of Ethics

The Project Management Institute’s code of ethics for


project managers consists of:
1. Responsibility
2. Respect
3. Fairness
4. Honesty

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Unethical Behaviors

Corruption is the abuse of entrusted power for private


gain.
• Petty corruption: everyday abuse of power by low-level
officials with ordinary citizens.
• Grand corruption: committed by relevant institutions
such as governments, corporations, or legal bodies.

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Types of Corruption

Common types of corruption include:


1. Bribery
2. Extortion
3. Fraud
4. Abuse of Power
5. Embezzlement
6. Conflict of Interest
7. Nepotism

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FOUR
Types of
Project
Manager

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Four Types of Project Manager
#1 Prophet
• Actively pursue business opportunities that lie outside the
existing strategic boundaries in an ara where it is
extremely difficult to obtain trustworthy data concerning
the likelihood of success.
• A prophet is need to challenge the existing strategy and
to pursue overlooked growth opportunities.

• X (Google X) employee seek to solve big problem using


breakthrough technologies and radical solutions.

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Four Types of Project Manager
#2 Gambler
• Business opportunity lie within the strategic boundaries,
but not supported with good business case, without
trustworthy quantitative evidence.
• Similarly, unable to predict the likelihood of success.
• Gambler update existing strategy by pursuing analytically
overlooked growth opportunity.

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Four Types of Project Manager
#3 Expert

• Seeking opportunities that lie outside the existing


strategy, but supported with trustworthy data and builds a
solid business case.
• Rely on organizational members, listening to their advice.
• Main challenge is to make organizational members aware
of the need of strategic change, and the urgent to act in
this regard.

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Four Types of Project Manager
#4 Executor

• Gains organizational follower for a definite growth


opportunities that is consistent with the existing strategy.
• Low risk, low uncertainty.

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Project Manager  Project
PROPHET GAMBLER EXPERT EXECUTOR
Strategy Challenged Followed Challenged Followed
should be
Growth A grand A bet An analysis A sure thing
opportunity vision
Organization Make a leap Gamble a bit Listen to the Stay within
al followers of faith and pursue advice and the strategy
should rewards act upon it and follow
the analyses
Weapon of Persuasive Potential Well- Business
choice vision reward supported cases and
arguments reports

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Four Types of Project Manager
• Different types of project manager characteristics pursue
different growth opportunities and follow different
communicative logics to gain support within the organization.
• A successful project manager needs all characteristics, and
they complement each other.
• Most organization rely on executors to ensure the alignment
and feasibility needed to maintain profit in short term.
• Prophets, gamblers and experts able to identify and pursue
growth opportunities at the periphery that can help to renew
the organization beyond the chosen path.

https://sciencenordic.com/denmark-forskerzonen-management/what-type-of-project-
leader-are-you/1456745

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