Project Management

Why PMs Can’t Have Nice Things

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Modelling Business Decisions and their Consequences

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I’ve relayed this story before, but it bears repeating for this week’s topic. I was part of a project controls team that had been asked to do some scheduling for a Human Resources department in the process of updating its software system. After pulling together and freezing the baseline, the team performed the first status pull, and took the results to the head of the HR organization. We pointed out that the project was likely to finish late, due to a few tasks on the critical path that were taking longer than expected. This communication was given on a Friday.

“Call in the entire department to work this weekend!” the manager demanded.

We were quick to point out that the personnel involved in the tasks that were pushing the finish milestone out were confined to just a few HR personnel, but mostly in the software engineering team providing support for the overall effort.

“No difference” he maintained. “This project is too important to risk delays while my staff is at home.”

“Just to be clear” we told him, “the vast majority of your department has nothing to do with the specific tasks pushing the project’s end date out. They will have literally nothing to do with accelerating the accomplishment of the activities we’re talking about here.”

The guy just stared at us, and pushed out the e-mail that demanded everyone in his (unfortunate) department work the weekend.

Of course, PMs readily understand the futility, and even the harm, of such a reaction. The project doesn’t benefit, not in the least. The workers’ morale couldn’t have improved upon seeing the e-mail demanding that they abandon kids’ soccer games, birthday parties, or even just relaxing time on their own, doing nothing at all – indeed, common sense informs us that that department’s morale probably cratered, especially since the everyone-must-work-free-overtime tactic seemed to be the go-to solution to this manager.

So why, do you suppose, did he do it?

I think the answer is clear. He probably spent considerable time in a college-level business school, where he learned that the purpose of all management is to “maximize shareholder wealth.” And what tactics make that happen? Well, getting the most out of your assets, of course! Are you the manager of a team of people, who get paid at a certain rate? Well, to advance the function of all management, by this teaching, one must get those assets to work over and above the level at which they are paid. It’s like getting free professional support, right?

I know that the vast majority of GTIM Nation – if not all of us – have experience working for organizations that expect or out-and-out demand “free” overtime. Once the initial thrill of becoming a staff member and having an actual salary fades, we quickly realize that we may have been better off back when we were hourly workers. I was laid off from the first company I worked for out of college after five years for the grave sin of charging two – two! – hours to an overhead account (when I had actually worked five hours on the overhead task), instead of charging every single hour to a direct account. My “manager” had given me the task, and provided the account I was to charge to, without disclosing the secret that this work was expected to be performed for free, and I paid a stiff price for her coyness.

Project Managers know that delivering the customers’ scope on-time, on-budget is the true point of management, and has far, far more weight on overall organizational success than, say, whether or not we should have rented or purchased the copy machine. Asset Managers can’t, or won’t, understand this, because they were subjected to business college professors who sold them on the “maximize shareholder wealth” stuff, including the notion that the return on investment (ROI) is the ultimate evaluator of management decisions. Don’t believe me? Engage in this quick mental exercise: imagine two identically-sized projects. Project A delivers a high-quality scope on-time, under-budget, and the customer is thrilled. The project team is comprised of highly-talented personnel who arrive late, leave early, and consistently fail to observe the company’s dress code, often in dramatic fashion. Project B is late and over budget. However, its Project Team arrives early, works late, doesn’t charge all of the hours they work (i.e., free overtime, conspicuously performed on weekends), and are dressed impeccably. If this happens in your organization, which team is likely to be commended? Disciplined?

You see my point. The Asset Managers have been ensconced in the middle of commonly-accepted business models for so long that they’ve lost sight of the actual point of performing Project Management. It’s kind of a funny coincidence that Generally Accepted Accounting Principles were first propagated at around the same time that Niccolò Machiavelli was writing The Prince. The business model pathologies that cling to the Asset Managers’ strategies like a pair of Tiberian bats have become so reflexive that it’s next to impossible to reason their practitioners out of using them and, by using them, they essentially oppose basic PM tactics.

There are lots of sources of frustration for Project Managers, and some of them are within our own ranks (cough, risk managers, cough). But PM practitioners should feel at liberty to, when confronted with some of the Asset Managers’ goofy strategies, say under their breaths “That’s not the way that works.”

Or, alternately, “This is why we can’t have nice things.”


Posted on: February 25, 2019 09:52 PM | Permalink

Comments (9)

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RAJESH K L Project Manager, PMP| Bharat Electronics, Bengaluru, India Bengaluru, Karnataka, India
Thanks for sharing

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SHADAV MOHAMMAD ANSARI PMO| ITC INFOTECH INDIA PVT. Ltd. New Delhi, Delhi, India
Hi MIchael,

Good Post. Good Examples . Thanks for sharing your points.

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Tarik Chougua Project Manager| CEPEO Ottawa, Ontario, Canada
Thank you for sharing.

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Ashleigh Kennett-Smith ICT Project Manager| Australian Red Cross Lifeblood Adelaide, South Australia, Australia
Michael, I'm particularly taken by your "Team A". Where can I find one?

Seriously though it's amazing that management appears focused on cost/hour of inputs instead of profit/cost. I get that output per hour should be a consideration (productivity or efficiency), but if team A has a significantly higher profit/cost value than team B (for the approx the same basic input cost) surely that's enough?

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Michael Hatfield Author / Blogger| Author Albuquerque, Nm, United States
Ashleigh, it's my take that the Asset Managers' angle, as flawed as it often is, has imbued the common perception of "properly" done business that the ultimate outcome is often not recognized as the ultimate determiner of valid vs. invalid management strategies.
But that's just me (and much of GTIM Nation), apparently.

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Susan Schuenemeyer HRIS Coordinator| MO Dept of Conservation Jefferson City, Mo, United States
Good article, Michael. In response to your scenario with teams A and B...both teams would be commended and disciplined, both for the manager's "perception" of the team and the team's outputs. And to echo Ashleigh, where can I get a Team A? :)

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Binu Samuel Project Manager | Rosa Carolina Pathanamthitta, Kerala, India
Good Information

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Joseph Gherlone Co-chair, Naval-NRO Coordination Group| US Navy, Naval Information Warfare Systems Command Pentagon, Arlington, VA, United States
" It’s kind of a funny coincidence that Generally Accepted Accounting Principles were first propagated at around the same time that Niccolò Machiavelli was writing The Prince."

Obviously, you no more consider that a coincidence than I do. In a related vein, I am reminded of the time that we were asked to document our time spent on various activities in project management. I was working for a small (4 FTE) shop managing R&D efforts for US Coast Guard in their Intelligence Directorate. We managed half a dozen to twice that many small projects annually, aimed at making incremental improvements in getting value-added intelligence data out to the true end user - the shipboard, aviation, and port security personnel that need the information to better accomplish their jobs. The funding for each project came from a variety of sources, but was more often than not from some other organization that USCG. The direction was very specific: include in every project summary chart a list of activities with amounts of time spent on each one. Management was trying to understand what they were spending for our time to manage these efforts to use other people's money. They showed no interest at all in how much time/effort we put into competing for and gaining access to those external funds in the first place, even after we pushed back and pointed out that we were bringing in 'free' money. The fact of the matter was that we were spending minimal time on the oversight and management of each project - each was run by a more than capable corporate PM to oversee the actual work (with a few notable exceptions - that's a separate conversation). What we devoted most of our work, and therefore most of USCG's investment in maintaining our office, was in particpating in the various programs that provided the competitive pots of money for these efforts, and in successfully competing for a fairly substantial portion of those funds. We were bringing in project funding in the $3-5 million per year range annually to answer USCG requirements, but they were concerned that our contract and government billets were costing them $750k per year. It was like pulling teeth to get them to look outside themsleves and understand that the work was getting done, and we had an ROI of about 4:1 (or better). I guess Coast Guard can't have nice things either - they finally reduced the level of effort in that office, I left for different work, and now there is only one of the original 4 members of that office still there.

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Mustafa Aslan PM | PQ Group Kadikoy, Istanbul, Türkiye
Thanks

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