Running a Project on a Shoestring Budget

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If you’re working in a large corporation with a very professional PMO already in place and a handsome budget set for the project you’ve just acquired, then this article is probably not for you.

Budget management is always important, but it’s highly likely that the amenities you need to manage your project with the high-paying customer that has been lined up are already built into the overhead of the project. The flights to the customer site are built in by Sales during the negotiation process, as are some additional equipment that may be needed specific to your project and implementation.

However, if that is not the type of project you’re running, then please read on as you might find something interesting or helpful from this information. I’ve been working mostly remotely as an IT project manager for the past 3+ years. Sometimes that has involved running large multi-million dollar projects for deep-pocketed clients meaning the little things and extras on a project definitely aren’t an issue. No concerns with cutting back because certain things are expected and are built in to the overall price of the project.

On the flipside, if you’re an independent consultant – as I am – and you have a mix of customers, then you’re likely to have a few clients that do not have deep pockets. These clients watch every dime they spend and that means of course that everything you do can and will be subject to their scrutiny. It also means that you have to watch how you do business carefully because you’ve likely not been able to price the project with a comfortable profit margin. It’s more likely that your margin is small and if something goes wrong causing extra work – and it’s your fault – you could be doing much of the work for free!

Here are some specific things that I do to reduce costs, keep things greener in terms of resource usage, etc. and keep the customer’s expectations steady in terms of on-going project costs:

• Bill the client a fixed price every two weeks or every month. This is basically like a retainer and if I’m doing this, I bill the work up front. It’s too risky in this economic climate to bill after the fact. Only do that if you really want (or need) this particular customer and they won’t budge at all on the upfront billing issue. Most will budge or meet you halfway letting you bill at the beginning of a two-week period and then pay you one week into it.
• Use video conferencing and teleconferencing whenever possible. This way you can avoid costly travel for the project and for your client. You can get video conferencing setups free at places like DimDim (www.dimdim.com) and you can get free conference calls at Freeconferencecall.com.
• Use free over-the-web fax services. Faxzero (www.faxzero.com) allows you to send faxes for free and Faxdigits (www.faxdigits.com) gives you a number to receive faxes with – they then come to you as a pdf file and you retrieve them online.
• Use a free pdf document converter. There are an increasing number of free pdf converters available now. It use to be that you had to have an expensive version of Adobe Acrobat to convert files to pdf format. Now you can download software like PrimoPDF (www.primopdf.com) and CutePDF (www.cutepdf.com), among others. I’ve tried several of these and the quality so far has been good on every one that I’ve tried.

Summary

There are a lot of options available these days to make the small vendor or independent consultant look bigger and many of them are free. The key is to start looking now, test out your different options and chose the best one. You definitely want to look professional and be ready when the need is there, so don’t procrastinate.

Dealing with Conflict on the Project

Conflict on a project is almost always a certainty. A project manager who goes says they never have conflict to deal with on their projects just isn’t paying close enough attention to what’s going on. Or they’re in denial. Conflict is going to happen and it’s the PMs responsibility to help team members and customers control and resolve these conflicts. It must happen…the conflict must be dealt with…in order for success to be realized on the project.

In his book “Project Management Nation,” Jason Charvat discusses controlling conflict on the project in his chapter on Project Change Control.

Controlling Conflict on the Project

On almost every project, the potential for conflict arises at some point. This is a natural trend. The project manager should work proactively with all staff to avoid possible conflicts that may arise. In the event of a conflict, the project manager should be aware that talking can only resolve so much. For situations where conflict cannot be resolved through negotiations or arbitration, it is recommended that the identified individuals be separated or be removed from the project.

It is important to understand that project staff react differently to daily situations and that during the project life cycle, these members all experience various emotions such as joy, sadness, jealousy, anger, frustration, and stress—to name but a few. Many conflicts can be reduced or eliminated by constantly communicating the project objectives to the project team members. Some of the most common conflicts are:

• Conflict over project priorities
• Conflict over administrative procedures
• Personality conflicts
• Lack of respect for one another
• Conflict over technical opinions and performance
• Conflict over staffing resources
• Conflict over cost
• Conflict over schedules

When conflicts do arise, there are several methods to try to resolve them;

• Compromise. Parties consent to agree; each side wins or loses a few points.
• Confrontation. Parties work together to find a solution to the problem.
• Forcing. Power is used to direct the solution. One side gets what the other does not.
• Smoothing. This technique plays down the differences between two groups and gives strong attention to the points of agreement.
• Withdrawal. This technique involves one party removing him- or herself from the conflict.

Project Management from a Distance – Part 2

In Part 1 of this six-part series, we covered the concept of “Why remote?” In this Part 2, we’ll discuss if it will work for you and how you can ensure that it will:

Part 1 – Why remote?

Part 2 – Will it work for you?

Part 3 – What type of job enables remote PM?

Part 4 – What setup do you need?

Part 5 – Negotiating when it’s not an obvious move

Part 6 – Staying the course

I keep calling this remote but I should probably call it telecommuting – or at least refer to it that way occasionally for the benefit of search engines.

When trying to decide if telecommuting or remote project management will work for you, it is necessary to examine it from all angles:

• Management and corporate policy
• Project scenario
• Customer
• Home setup

Let’s look at each of these in more detail:

Management and Corporate Policy

If you’re just coming onboard with an organization, you can sometimes make this part of the negotiation process. However, introducing it as an option that interests you too early on in negotiations can turn off the hiring manager and may end the process right there.  If you’re already an employee and want to bring it up, make sure the time is right and the scenario is the right one (see the next section).  Asking to work remotely on a project when it doesn’t make sense at all will make you look like you’ve lost touch with reality or are not concerned enough with your project’s needs.

One final thought on this – know what your corporate policy is on this…assuming there is one.  There may not be anything in place, but if there is, it will be helpful to know that before bring up the subject to your manager or HR.

Project Scenario

The next thing to consider – will your project work with a remote project manager? Is the project such that you can maintain control of it from afar and you don’t need the hands-on, in-person representation with the customer and/or the customer team on a daily basis?

If the project is for an external customer and it’s of a long duration, the answer is probably yes. If it’s an internal customer or of a relatively short duration, the answer is likely going to be no. Internal customers want you there, interacting with them so they can reach out and touch you when they need to. I suppose that’s not always the case, but in my experience it has been.

If you’re running a project for an external customer and it’s a long-term engagement, then it’s likely that you can do most of it remotely with some hands-on, onsite time with the customer…especially to kickoff the project. It depends on several things – the type of project, the amount of detailed meetings that need to be held on a weekly basis and the customer themselves (we’ll discuss that next). Projects involve a long-term software implementation with a geographically dispersed team make it relatively easy to handle remotely.

Customer

The customer and their preferences play into the decision-making process of whether or not you can manage a given project remotely. For the past three years, I’ve managed all of my projects remotely, but I’ve had two customers that demanded an onsite resource 24/7. In the case of these two projects, they were not PM resources they needed onsite. One required that a Business Analyst be available 24/7 and they paid dearly for it through the change order process as it was not part of the original agreement. In the other case, the customer requested that a development resource be onsite for an extended period of time to work through software modifications with them. In neither case did they have the budget available to also afford having a PM onsite 24/7, however.

Home Setup

Your home situation also plays a role – actually, a major role – in whether or not you can pull off the telecommuting scenario. First, you must have a place to call your own – the high-speed home office. You don’t have to work in it full-time…I certainly don’t. But you do need that availability for seclusion to handle conference calls and just to be able to have a quiet place to get work done fast when necessary.

Secondly, your family must be supportive. You don’t have to be childless…I’m certainly not…but they need to understand your boundaries and the work demands on your time. I’m stating the obvious here, but the bottom line is they need to understand that you have to work and that you can’t always be ‘dad’ or ‘mom’ when you’re home.

Summary

As with answering the question of ‘why remote?’, it’s very important to know if it will work for you before trying it or before even bringing it to the attention of your hiring manager or your current employer. If you’re an independent consultant, then it’s all up to you and whether you can pull it off given your distractions at home. The decision, for the most part, is often yours.

The Skill Set of the Project Manager – Another View

In my article “The Characteristics of the Project Manager,” I began what ended up being a five-part series and still probably needs a final summary article – assuming I’m done and have no more characteristics to share…which I probably do.

I’m always open to new and different information as well as different opinions on information I’ve already provided so far in articles on the PM Tips site. That’s why I’m presenting this excerpt from Gary Heerkens’ book entitled “Project Management.” It covers what he considers to be the overall skill requirements of a project manager. It’s not exactly the same concept as the characteristics of a project manager, but it’s close.

Skill Requirements of the Project Manager

To fulfill the responsibilities of the role of project manager and handle the challenges you’ll face, you’ll need very diverse skills and a wealth of knowledge. So what knowledge and skills does it take to be an effective project manager?

There are many ways to slice up this pie. The way that makes the most sense to me is to break it down into four major knowledge and skill categories:

1. project management process skill
2. interpersonal and behavioral skills
3. technology management skills
4. desired personal traits

Let’s examine each in detail.

Project Management Process Skills

Project management process skills (sometimes called the “hard skills”) are knowledge and skills related to the mechanics of project management. You should be extremely knowledgeable about project management tools, techniques, and process technology and be able to apply them. For example, you should be know how to prepare a comprehensive customer requirements document, construct a network diagram, and construct a work breakdown structure. Without these skills, you’ll find it very difficult to coordinate and facilitate the creation of a high-quality project plan and to maintain control during project execution. Also, since these skills are a basic expectation, you can expect to encounter problems of respect from your team members if you’re deficient in this area. As mentioned earlier, this skill set is the main focus of this book.

Interpersonal and Behavioral Skills

Since managing projects is all about getting things done through other people, your skills in dealing with people are of immeasurable value. Closely tied to your interpersonal skills are your behavioral skills: your personal conduct, style, and approach. Together, these two skill sets are often called the “soft skills.” Here are some examples of soft skills:

• team and individual leadership
• oral and written communication
• conflict resolution
• negotiation
• influencing
• delegating
• coaching and mentoring

For individuals coming to project management from a highly technical background, soft skill development can be particularly challenging. Later in this chapter we’ll discuss methods for developing these skills.

Technology Management Skills

Most projects have one or more embedded technologies. An embedded technology refers to the process or technology areas at the core of the project. Examples might include software development, chemical processing, or commercial construction. Your ability to guide and coordinate the application of these technologies is crucial to your success as a project manager. If you’re like Brad, you’ll probably have sufficient knowledge and skills in the primary embedded technology of the project. However, it’s likely that there will be several technology areas associated with your project. Although they will differ in focus, the process steps and related skills involved in managing their successful application will be similar.

Among these technology management skills are the following:

• proficiency in project’s core (primary) technology
• proficiency in supporting technology areas
• industry knowledge
• ability to prepare comprehensive technical specifications
• design skills
• product knowledge
• process knowledge
• management of intellectual property
• patent knowledge

Desired Personal Traits

Many studies have been performed to correlate personality traits to success as a project manager. Although each study reveals slightly different results, the traits shown in Figure 3-1 appear in most. Possessing these traits will stand you in good stead in your role as project manager.

• Honesty and integrity
• Thinks like a generalist
• High tolerance for ambiguity
• High tolerance for uncertainty
• Persuasive
• Assertive
• Process-oriented
• Self-aware/reflective
• Open and accessible
• Politically astute
• Decisive

Of these personal traits, I consider the following four to be among the most critical.

1. Thinks like a generalist—Project managers must always be thinking in terms of the big picture. This can be a challenge for those who are accustomed to focusing more narrowly. Although this trait certainly requires knowledge in many different areas, what’s crucial is that you must pay attention and care about everything and everybody.

2. A high tolerance for ambiguity—This competency will be particularly challenging if you’re technically oriented. You’ll often receive mixed signals or contradictory data. You need to develop processes for finding truth and narrowing down inputs without getting frustrated. This will probably not be easy for you.

3. A high tolerance for uncertainty—As with ambiguity, this is particularly challenging if you’re entering project management from the technical arena. Most technically oriented people are accustomed to precision. As a project manager, the norm is to make many decisions without sufficient information. You must condition yourself to making decisions that are only acceptable, not perfect.

4. Honesty and integrity—Although obvious virtues, these traits are worthy of specific mention. Whenever studies are performed on the traits that people most admire or desire in leaders, honesty and integrity always rise to the top. One of the best behavioral traits for a project manager is to be known as doing what you say you’ll do. Closely related is the issue of integrity, having a reputation as someone who will follow principles, even in the face of adversity or temptation.

Together, the combination of hard skills, soft skills, functional competencies, and personal traits compose the raw material for your overall capability as a project manager. But how should you develop that capability?

Skills that are somewhat mechanical can be learned or developed through self-study, reading, or facilitated training and practice. Many of the hard skills fall into this category. However, as you migrate toward the soft skills, the preferred mode of development moves from programmed learning to coaching or mentoring. Here, soft skills are best developed through observation and feedback from others— preferably those in a position to do so.

Balancing Critical Project Success Factors – Engaging Conflicts Directly

This article contains another excerpt from Paul Tinnirello’s book “New Directions in Project Management.” This is the fifth installment in a six-part series entitled Balancing Critical Project Success Factors. In case you’ve missed the first four, here’s what we’ve covered so far:

• Introduction
• Selling Good Ideas
• Building a Common Vision
• Generating a Commitment to Ideas

In this fifth segment we cover engaging conflicts directly and resolving them efficiently and effectively.

Engage Conflicts Directly and Resolve Conflicts Efficiently and Effectively

Once project plans are underway, change happens. Requirements shift, the client does not meet its obligations in the project plan, and budgets can be reduced. Changes within the IT group can also occur. Tasks may exceed initial estimates. Key programmers leave to join other firms. Differences in opinion among IT professionals about the best approach can erupt into conflicts that push projects off track.

When this happens, IT professionals must assertively engage key stakeholders (e.g., users, user management, IT management) in problem solving about the trade-offs that must be made in quality, time, cost, and perhaps even customer service agreements. Assertiveness is critical because users (and admittedly IT management on occasion) would prefer to avoid making necessary but difficult decisions about trade-offs between quality, time, and cost. Interestingly, resolving such conflicts may be best viewed as a typical and not unusual part of what IT project managers do. In survey research of professional project managers, it was discovered that they report spending an average of 12 hours per week resolving conflicts.

When engaged in problem solving about trade-offs, stakeholders sometimes become frustrated and retaliate by challenging the competence or creativity of the IT project manager. IT professionals sometimes respond to such challenges by retreating from their legitimate interests. In a misguided effort to please, some over-commit to all three factors although significant changes in the project environment necessitate adjustments. The result is priority overload, stressed-out IT personnel, a loss of credibility and influence, suboptimal IT work products, or missed timelines.

Assertively championing one’s basic interests, exploring alternatives with affected parties even when they are not enthusiastic to do so, and collaborating to construct win-win agreements is the better response. Unfortunately, many people drawn to information technology (like many drawn to other technical disciplines) have a personal aversion to conflict. Consequently, for some IT professionals, enhanced negotiation skills is necessary.

Faithfully applying project management disciplines can limit the amount and scope of project conflicts that IT professionals have to manage. Conducting risk assessments early in the project life cycle to identify factors that might threaten project deliverables is one such discipline. If a risk is detected early (e.g., weak user management consensus on requirements) and focused problem solving occurs about what contingencies are necessary to address it (e.g., identifying a resource that can be used to do team conflict resolution with user managers), project disruptions caused by the risk can be effectively contained.

Providing regular user management updates is a second project management discipline. When updates work most effectively, not only is progress reported, but threats to project deliverables are reviewed and user management support of efforts to limit or resolve those threats is secured.

For some complex projects, more substantial organizational conflict management mechanisms are required. On large IT initiatives, the relative priority of the needs of different user groups can change over time. Because IT resources are often relatively fixed, reallocating resources to respond to a increased urgency for one user often means reneging on commitments made to other users. To address shifting priorities between users, some IT groups convene regular, periodic meetings of steering committees or users councils. When such mechanisms work well, users collectively learn about urgent priority changes, explore alternative responses to these situations, and finally make mutual decisions about priority changes and IT resource reallocation. In these settings, IT professionals facilitate the preparation of information that enables these groups to make sound decisions. By promoting quality dialogue between users, IT professionals enhance organizational problem solving.

Paul C. Tinnirello is the editor of “New Directions in Project Management” from the Best Practices Series.