What to Expect: Anticipating and Adapting to Dynamic Economic Trends
project management office,
critical success factors,
Managing for Stakeholders,
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By Peter Tarhanidis, Ph.D.
In the ever-evolving landscape of corporate strategic planning, organizations face the perpetual dilemma of choosing between capital spending for growth—and optimizing operations for efficiency. Striking the right balance amidst economic trends and leveraging organizational strengths becomes paramount when navigating through strategic projects. Meeting shareholder and stakeholder needs, while aligning with the organization's mission, presents a constant challenge.
To anticipate potential initiatives, project managers must consider global macroeconomic conditions and CEO outlooks. A preliminary assessment based on the United Nations World Economic Situation and Prospects and OECD Economic Outlook reports for 2024 reveals a projected global economic growth slowdown from 2.7% to 2.4%. This trend suggests a delicate balance between slow growth and regional divergences. Key considerations include:
Examining the corporate landscape, a survey of 167 CEOs in December 2023 indicated a confidence index of 6.3 out of 10 for the 2024 economy—the highest of the year. The CEO upsurge assumes inflation is under control, the Fed may not raise interest rates and instead reverse rates, setting up a new cycle of growth. Furthering the CEO agenda, McKinsey & Co. identified eight CEO 2024 priorities:
As project managers, navigating the uncertainty of economic shifts necessitates staying vigilant. The year may bring variables and predictions that impact the execution probability of strategic projects. Shifting between growth plans and efficiency drivers demands different preparation. To stay prepared, consider the following:
In an environment of perpetual change, proactive monitoring, adaptability and strategic collaboration will be key to successfully steering projects through the dynamic economic landscape.
How else can you stay prepared as the demands shift on you and your team?
By Mario Trentim
According to Le Chatelier’s Principle, any change in the status quo prompts an opposing reaction in the responding system. Although Henry Louis Le Chatelier was a chemist, his principle applies to project management, right?
No project occurs in isolation: Each inevitably disturbs the environment because it stems from the organization’s structure, politics and strategic objectives. So, it’s no wonder that some projects can’t succeed despite a project manager’s best efforts.
To make things happen, you need a support coalition of powerful and/or influential stakeholders. But how can you get the necessary buy-in for a project?
Let me assure you: You will fail if you try to guess what is in your stakeholders’ heads. We all have a natural tendency to do that because, by nature, we feel uncomfortable with uncertainty and ambiguity. That explains why we are always trying to "fill the gaps."
What does this have to do with project management? Everything. Project managers must overcome two biases that pose obstacles to successful stakeholder management.
The first is that we see the project from our perspective, which leads us to narrowly identify stakeholders. Forgetting to include the project’s "hidden stakeholders" can be catastrophic.
The second, which I believe is bigger, is that we conduct stakeholder assessment and analysis with preconceived thoughts and distorted vision.
The secret to stakeholder management is obvious: You cannot catch fish using your favorite food as a bait. You have to use the fish’s favorite food!
When assessing stakeholders and strategizing how to engage them in your project, be sure to do your homework. When possible, ask your stakeholders directly about their expectations regarding the project.
This diagram offers an overview of potential stakeholder interview questions:
(Monteleone Consulting, 2010“Generic Questions for Interviewing Stakeholders”)
Of course, to a certain extent you need to be skeptical of the answers your questions elicit. My MBA students always ask me: How do you know if a stakeholder is telling the truth?
My answer is simple: you don't. You cannot tell for sure if a stakeholder is trying to manipulate the project (and you). But here’s a tip. Keep observing your stakeholders' behaviors and attitudes. Always put yourself in the stakeholders' shoes and discuss hypothetical scenarios with your core stakeholder management team.
Here is a worst-case scenario: I once had a sponsor who was against the project. I admit it took me some time to realize that he would do everything he could to make the project fail.
How did I discover the truth?
I’ll explain in my next post—don’t miss it. Until then, share your thoughts. What would you do in this situation?