Project Management

A True Story of a Bad Sponsor

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In my previous post, I promised to tell you a sad but true story of a sponsor who was against his own project. As you know, lack of sponsorship is one of the major causes of failure in projects. It is very hard to make things happen without senior-level support.

According to author and business consultant John P. Kotter, building a guiding or supporting coalition means assembling a group with the power and energy to lead and sustain a collaborative change effort. That is when strong sponsorship comes to mind in project management.

Unfortunately, I was the project manager tasked with the initiative featuring the unfriendly sponsor. By that time, I knew some of the tricks of the change management trade. However, I naively ignored that people have their own hidden agendas.

 

Sizing Up the Sponsor

The sponsor, let’s call him John, was a division manager with almost 25 years dedicated to the same organization. He proposed an audacious project to outsource almost half of his division, creating a new company to own the assets.

It was a brilliant idea, strictly aligned with the organizational strategy. There was a solid business case supporting headcount and cost reduction, improved service levels and an outstanding return on investment. The board of directors promptly approved the project and it took off with strong support.

You already know that a project, by definition, is a disturbance in the environment. “Project” is synonymous with “change.” Change usually implies resistance. This project faced enormous challenges related to cultural and structural change, power, politics and more.

It took me some time to realize John was a real threat to the project. At first, I shared all my information with him, and I trusted that he was an enthusiastically.

But along the way, I noticed John was not performing his sponsor role properly. In particular, he was not working on selling or on leadership.

Figure 1 – Sponsor’s roles (Trentim, 2013)

Consequently, crucial organizational decisions were postponed, resulting in serious negative impacts on the project. John was responsible for leading change, but he wouldn’t do it. The project was failing because I could not overcome the ultimate resistance barrier: the sponsor.

I started asking myself about John’s real intentions. It was a very uncomfortable situation.

One day, I was discussing the sponsorship issue with my core team members. Alice asked me, “Do you really think John wants this project to be successful?” A few weeks before, my answer would have been “Sure!” Now, I decided to hold a problem structuring session based on Alice’s doubt.

To our amazement, we concluded that if we were in John’s shoes, we would want the project dead.

It was simple. Although there was a solid business case with wonderful benefits, none of them appealed directly to John. In fact, John would be demoted from senior division manager to manager of a department of less than half its former budget and staff. He could even lose his job after the successful startup of the outsourcing project.

I confronted John. He tried to change the topic several times. Finally, he confessed. I will never forget his words: “Corporate politics forced me to initiate this project. If I did not propose the project, someone else would initiate it and carry it on successfully, destroying my division. I had no choice.”

After John’s confession, he was replaced by another sponsor and the project was soon back on track.

 

Ideals vs. Reality

This experience permanently altered the way I view sponsors. Ever since then, I’ve never assumed my stakeholders are ideal.

In an ideal project, you would have:

  • a powerful and interested sponsor as a friend
  • motivated and skilled team members
  • supportive functional managers
  • collaborative contractors and vendors
  • other various friendly stakeholders

In reality, you have:

  • sponsors with less power than needed and sponsors with other priorities (lack of interest in your project)
  • part-time, not-so-motivated team members, fewer resources than needed and resources who are less skilled than you imagined
  • resistant functional managers with hidden agendas
  • unsupportive contractors and vendors
  • other various enemies as stakeholders

The fundamental lesson learned here is that managing stakeholders is far from simple. It is a combination of science (tools, techniques, and best practices), art (soft skills, communications, political awareness) and craft (experience).

What was your biggest stakeholder management challenge? Share your experiences and lessons learned below.


Posted by Mario Trentim on: April 17, 2015 08:33 AM | Permalink

Comments (13)

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Rachit Khanna Chief Engineer| Dastur Kolkata, West Bengal, India
Most difficult to handle - resistant functional managers with hidden agendas. How to overcome this - please discuss

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Mario Trentim CEO| PMO Global Alliance Sao Jose Dos Campos, Sao Paulo, Brazil
Hello Rachit, you touched another very sensitive topic. Functional Managers with hidden agendas can be very poisonous. In my book, Managing Stakeholders as Clients (amzn.to/10NgtpV), I used an "animals" classification for stakeholders.
It is very difficult to capture all the contingencies. The trick of the trade here is to pay attention, put yourself in their shoes and always keep your stakeholder registry updated. I even develop "scenarios" and simulation in large projects using social networks' methods and software (such as PAJEK). I hope it helps you also! Regards, Mario

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Bernard Gore Portfolio, Programme & Project Professional| NZ Police Wellington, New Zealand
Actually not that unusual, I suspect I'd have spotted this as at least a risk right at the start, but that's after a lot of painful experience!

Stakeholder identification and assessment 101 - work out who your stakeholders are and how the project may affect them - and the Sponsor is always a major stakeholder.

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Sarang Bhand Co-Owner, Director| Organic Recycling Systems Private Limited Navi Mumbai, Maharashtra, India
Stakeholders have varying degree of direct & indirect interests in any given project. Key is to find a common ground for these interests to intersect or align. A project manager can find this common ground by negotiations, a sponsor on the other hand can easily influence and align these interests by exercising his authority on project. It''s sad, in this case the sponsor himself had vested interest. However, I feel if management would have incentivised the sponsor for his project then things would have been different.

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Sudarshan Harshe PM III MBA Operations PRINCE2® SIX SIGMA| Fidel Softech Pune, Maharashtra, India
Your most effective negative stakeholder is your most close associate, you always should monitor your close associates...

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Rob Kurtz Senior Project Manager| World Wide Technology O Fallon, Il, United States
This is a classic case where the project sponsor did not see the benefit for him. I have learned that human beings do not fear change, but fear the unknown. Always communicate the benefits of a project both to the company and to the people involved. Good article.

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Roberto Vargas COO| Hospital Clinica Biblica San Jose, San Jose, Costa Rica
I'm currently dealing with a sponsor who is trully engaged with the project, but is strongly influenced by a group of consultants that will be highly benefited by that project, so they are pressuring to speed up the requirements definition process. It is a very difficult situation because a poor definition of all the main requirements could cause costly changes in the future. Have any of you been in a situation like this? What would be your advice? Thanks.

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Mario Trentim CEO| PMO Global Alliance Sao Jose Dos Campos, Sao Paulo, Brazil
Rob Kurtz, I totally agree! As human beings, we are always asking "What is in it for me?"
I coined the term "stakeholders as clients" trying to grasp the exchanges of benefits among them. If you have interest, take a look at http://amzn.to/10NgtpV


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Mario Trentim CEO| PMO Global Alliance Sao Jose Dos Campos, Sao Paulo, Brazil
Roberto Vargas, I faced situations very similar to yours. There is no free lunch. Bad requirements will result in poor development, many change requests and it might even doom your project to failure. My first advice is that you should talk to your sponsor, confront him. If your persuasion doesn't work, you will have to find other ways to influence indirectly, maybe influencing the consultants. It's hard to know what to do without more information. Anyway, if you need anything more, you can contact me at [email protected]. It will be a pleasure to help you.

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Mario Trentim CEO| PMO Global Alliance Sao Jose Dos Campos, Sao Paulo, Brazil
Sudarshan, Sarang and Bernard, thank you all for your comments and good advice!

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Sujith Kattathara Founder, CEO| FreelanceTeams Private Limited Ernakulam, Kerala, India
Mario, Thank you for the very telling story.
But you were probably lucky that the Sponsor confessed - My experiences have been that the Sponsor would defend his/ her turf and his stand at all costs. And since the PM is not likely to understand the challenges & drivers for an Executive, the Sponsor may hide behind this smokescreen for a long time.

Roberto,

I have 2 questions and 3 threads of actions to pursue on your problem resolution.

Questions:
1. Why are you uncomfortable with the Consultants pressure to complete Requirements elicitation? Are they trying to push it even when the schedule allows for more time? Or is the project running just on time/ already delayed?
2. Are there certain areas of Requirements that have gaps? Or are the Requirements inadequately detailed?

Action threads to pursue:
1. Are there clear guidelines for completion of Requirements elicitation? How do you establish that the Requirements are complete? Who owns this quality gate?
2. Have you implemented Requirements Traceability?
3. Are you able to identify and quantify the risks relating to the incomplete/ inadequately detailed requirements? Do your SMEs (Technical, Business domain) agree with the risks & their quantification? Is the project schedule allowing time to effectively mitigate these risks?

Best of luck ! And do let us know how this turns out, it will be a valuable & learning discussion for all of us.

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Roberto Vargas COO| Hospital Clinica Biblica San Jose, San Jose, Costa Rica
Thank you Mario Trentim for your advices. I actually worked in both ways: talked to my sponsor and explained why the team is taking a reasonable time to collect and define the requirements of the project. I also worked with the consultants and I think we got them more engaged with the requirements collection process and how this process done in the right way will benefit them too. Maybe it is early to know the results, but at least the project is running more harmoniously.

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Roberto Vargas COO| Hospital Clinica Biblica San Jose, San Jose, Costa Rica
Hi Sujith Kattathara, and thank you for your interesting comments and advice. Actually, the project is on schedule but consultants were pressuring to speed up the processes because they wanted to go directly to the construction phase, so this means bigger contracts for them in terms of money. It is always difficult to determine whether the requirements are completely defined or not, but at least as PM you need the feeling that you made an exhaustive job in this part. We are working also in the definition of all possible risks that coul be identified in this stage. This, in an environment in which not everyone is aware of the importance of the best practices in project management, it is sometimes seen as pure burocracy.

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