The Difference Between Governance and Management
Categories:
Stakeholder Management
Categories: Stakeholder Management
| By Lynda Bourne
Stakeholders are becoming increasingly vocal in their demands for “good governance.” The rise of stakeholder activism (shareholders are stakeholders, too) is affecting the way organizations of all types are governed and managed. This will in turn impact the way projects are initiated and managed—which could affect your career. But when thinking about what good governance looks like, be careful not to confuse it with good management. They aren’t the same! Governance is firstly focused on creating the environment in which good management can flourish, and then on ensuring the organization’s management is good. Global organizations are finding their stakeholders and shareholders less and less tolerant of governance failures that lead to bad management. This lack of tolerance manifests itself through government investigations and criminal prosecutions against organizations of all types and sizes—from FIFA on down. All this means the project failures that may have been acceptable in the past are unlikely to be tolerated in the future. Stakeholders increasingly expect organizations to proactively and effectively manage their investments in projects and programs. This entails both the “management of projects,” focused on the full value chain from the initial investment decision through benefits realization, and the traditional domains of project, program and portfolio management. Achieving excellence across the value chain will not be easy. The goal does offer an opportunity for the project management profession to expand its influence beyond the narrow confines of project management into the broader arena of the “management of projects,” which will involve project management advocacy in both senior management circles and governance circles. (Organizations such as PMI are already actively involved in this work .) Know Your Functions An understanding of the difference between management and governance is critical for such advocacy to be effective. The primary focus of the governing body in any organization should be balancing the competing interests of its diverse stakeholder community. The six functions of governance are: · G1 - Determining the objectives of the organization · G2 - Determining the ethics of the organization · G3 - Creating the culture of the organization · G4 - Designing and implementing the governance framework for the organization · G5 - Ensuring accountability by management · G6 - Ensuring compliance by the organization The functions of management focus on achieving the organization’s objectives within the framework established by the governing body. As defined by Henri Fayol in his 1916 book “Administration Industrielle et Generale,” the five functions of management are: · M1 - To forecast and plan · M2 - To organise · M3 - To command or direct (lead) · M4 - To coordinate · M5 - To control (in the sense that a manager must receive feedback about a process in order to make necessary adjustments)
This diagram plots the relationship between the governance and management functions. Management functions are assumed to be hierarchal with the governance inputs cascading down to lower-level functions. The challenge for many organizations is establishing an effective governance framework to frame and oversee the work of its management, thereby avoiding the scandals we read about all too frequently. The question that interests me is: How can we start to influence the top end of our organizations to allow the efficient delivery of the right projects and programs, managed the right way? If the project management profession doesn’t step up to this challenge, someone else will. How do you think you can start to build influence?
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The Only Technique That Resolves Conflicts
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This piece continues my previous blog post, “The Techniques That Don't Resolve Conflict,” which looked at why no technique other than collaborate/problem solve truly resolves a conflict. Withdraw/avoid, smooth/accommodate, compromise/reconcile and force/direct are all temporary solutions—they postpone conflict resolution for a later date. Problem solving (through confronting and collaborating) is the only way to settle the conflict for good. Here are a few points to help resolve conflicts to achieve a win-win. Separate the Person From the ProblemNormally, people are not right or wrong. They just have different opinions, or want a different outcome than us. There is a fair possibility for an opportunity in this difference. As soon as we start seeing the difference from an angle of opportunity, we reduce our negative emotions, reduce negativity toward the person, start taking an interest in his or her viewpoint and put more focus on the problem. Respect the Opposite PartySee the rival as a potential ally and friend in this opportunity. Respect him and his views. Genuinely try to help the other party achieve their goal. Persist with this approach even if it is not reciprocated. Keep the Dialogue GoingIt usually takes some time to work through conflicts. Matters do not get resolved quickly or within the time frame we expect. We have to maintain patience and resist the urge to fast-track the decision. Actively explore for a suitable time, engage in a two-way conversation, listen to the other party and express our views. Focus more on the points where we share common ground. Find the Root CauseFinding the root cause of the conflict is key to attacking the problem, and not the person. Often the reasons that appear on the surface are different than the real problems at root. Quite often people cannot express what they really want. We often call this a hidden agenda. Many times, this hidden agenda is not as bad as it appears. For instance, some people do not openly say that they are looking for a promotion, but that’s what they really want. We have to figure out the real need by establishing a two-way conversation. We also have to look into whether the outcome the other party seeks is a need or interest. Interests are more aspirational, and we can put them on the table. Needs, on the other hand, are basic and therefore nonnegotiable. Allow Others to Save FaceIf the other party comes out clearly on the wrong side or starts losing face, it is not the time to slap. Instead, offer opportunities to save face. Allow the other person a safe way to exit with respect. Use the Law of ReciprocityReciprocity is the foundation of living together. What we give is what we get. Empathizing and showing acceptance creates an environment of acceptance. If we make a concession, quite possibly the other party also responds. When we realize that the other party has made a concession, we should reciprocate it. Create an Emotional LinkEmotions are at the core of conflict resolution. Create an emotional link with the other party. We must foster positive emotions such as trust, empathy and acceptance by showing these emotions. Also, we should reduce negative emotions such as anger, fear and frustration. We must balance logic and emotions. We can find conflicts almost everywhere. The good news is that they can bring more inclusiveness and cohesion in the project team if settled by confronting and not by withdrawing or forcing. Confronting means: Let’s talk, let me understand you first, let’s find out the root cause, respect others and create an emotional connection. I believe any type of conflict can be resolved by confronting, bringing a win to both the parties. What’s your experience? Please share your views. |
Don’t Fall in Love With Your Plan
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Witnessing so many unsuccessful projects these days, I keep asking myself why execution continues to fall through the cracks while organizations apparently grow in project management maturity. If organizations are more mature in project planning, why aren’t we reaping better results? It’s easy to see we have an execution gap. I think this is because some project managers are so immersed in the minutia of best practices that they don’t understand the big picture. They don’t understand that project management processes, tools and techniques are only a means to an end. The final goal of every project is to jointly create value by engaging stakeholders to build a unique result under constraints (scope, time, cost and more). In other words, a successful project delivers benefits and satisfies stakeholders. Execution demands proactivity. Project managers should embrace change, keeping their eyes wide open to take their project plans out of the paper. Making things happen is easier when you have a good plan, but it still demands a lot of energy and motivation. Practitioners sometimes put their well-crafted, detailed plans on a pedestal as trophies of great project management. In fact, planning is only half, or less, of the way to the finish line. To paraphrase the boxer Mike Tyson, “everybody has a plan until they get punched in the face.” The real world is volatile and complex; missing and incomplete information is the norm. Will your plan survive the challenge? It depends on how well you execute. As many in the military learn, strategic, tactical and operational plans need to be executed with maximum agility. Adjustments, adaptations and unexpected decisions must be made along the road to project completion. To execute well, you need clear goals, resilience, flexibility and a high degree of “alertness.” The OODA loop, created by John Boyd, revolutionizes goal-centered execution by adding flexibility and velocity in the decision-making process. Here are the four steps.
Figure 1- OODA loop (Source: Defense and the National Interest)
Next time you start execution on your project, put the OODA loop to work for you. It will guide you through the project plan as a series of linked decisions to help you make sense of the environment, update the plan and observe results. If you have any comments—or perhaps a negative or positive story about execution—please share below. Thanks! |
The Internet of Things and the Future of Project Management
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By Wanda Curlee Some would say the Internet of Things (IoT) is still so embryonic and amorphous that there aren’t many job opportunities. But there are already project managers working on the IoT—which refers to a growing network of physical objects embedded with sensors, such as Wi-Fi-connected thermostats you can control from anywhere with your smartphone. And there will be many more IoT projects in the future. McKinsey Global Institute researchers estimate the potential economic impact of IoT technologies to be USD$2.7 trillion to USD$6.2 trillion annually by 2025. Think of Amazon’s plan to deliver packages via drones. Those drones will need to communicate with customers, employees, the corporate office, and maybe at some point, air traffic controllers. All of this requires a project manager, starting in the research and development stage and going through development and upgrades. This is a never-ending cycle. All of these projects create the need for programs. Many companies will have a large overlap of IoT projects. A program manager is needed to drive the strategy of the IoT program to benefit the company’s bottom line. In fact, I would venture to say there will be sub-programs and maybe even more than one IoT program. The Internet of Things is so broad, it will be the program managers who define the benefit realization plans and roadmaps and may even decide their program is too broad and needs to be subdivided or spun off into new programs. It will take years for companies and internal business units to determine what IoT will do and how they will drive it. The company’s CEO will set the IoT strategy, which will then become the portfolio manager’s responsibility to execute. Let’s say the CEO wants to modernize delivery. The portfolio manager should meet with the CEO to have a better understanding of what this means. The portfolio manager will scour the enterprise to determine what needs to be in the portfolio (such as drones) and what should be stopped. The governance committee will assist the portfolio manager. There will be many IoT portfolios throughout many different industries and organizations, including not-for-profits and militaries. IoT will drive the next opportunities for many in the decades to come. Fasten your seat belts, and hold on for the new adventure and wave of jobs. These projects will be different, but as in many other fields, the project management discipline will drive job creation. |
Do Your Projects Have A Strategic Focus?
| By Dave Wakeman
Last month, I wrote about how you can become a more strategic project manager. This month, I want to continue exploring the topic by focusing on a few ways to make sure your projects have strategic focus. 1. Always Ask “Why?” This is the essential question for any business professional. But I am aware that asking the question can be extremely difficult—especially in the organizations that need that question asked the most. Asking why you are taking on a project is essential to the project’s success or failure. Using the question can help you frame the role that project plays in the organization’s goals. It can also allow you early on to find out if the project is poorly aligned with the long-term vision. This can make you look like a champ because you can make course corrections or bring up challenges much earlier, saving you and your organization time and money. When asking about a project’s strategic value, you may find it helpful to phrase it in less direct ways, such as: “How does this project fit into the work we were doing with our previous project?” or “This seems pretty consistent with the project we worked on several months back—are they connected?” 2. Bring Ideas As the focal point of knowledge, project managers should know where a project is in meeting its goals and objectives. So if you know a project is losing its strategic focus (and therefore value), generate ideas on how to make course corrections or improve the project based on the information you have. There is nothing worse than having a team member drop a heap of issues on us with no easy solutions and no ideas on how to move forward. As the leader of your projects, don’t be that person. To help you come up with ideas to move the project toward success and strategic alignment, think along the following lines: · If all the resources and effort expended on the project up to the current roadblock were removed from consideration, would it still make sense to move forward with the project? · What actions can we take that will help alleviate some of the short-term pain? · Knowing what I know now, would I suggest we start or stop this project? Why? 3. Communicate! Communicate! Communicate! On almost any project I work on, more communication is a good idea. This is because the more the lines of communication are open, the more likely I’m to get information that will be helpful to me and my ability to achieve the end results that I’m looking for. As with most things in project management, communication is a two-way street and loaded with possible pain points and missteps. As a project manager looking to deliver on the strategic promise of your projects, your communications should always be focused on information you can use to take action and move your project along. To effectively communicate as a strategic project manager, ask questions like these: · What do I need to know about a project that will have a material impact on its success or failure? · What can I share with my team or stakeholders that might help them understand my decisions? · What information does my team need to take better actions? As you can see, adjusting your vision to become more strategic isn’t too far removed from what it takes to be an effective project manager. The key difference is making sure you understand the “why” of the project. From there, you need to push forward your ideas and to communicate openly and honestly. What do you think? How do you bring a strategic focus to your projects? By the way, I've started a brand new weekly newsletter that focuses on strategy, value, and performance. Make sure you never don't miss it, sign up here or send me an email at [email protected]! |












