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Politics are found in every organization and can have a big influence on all kinds of decisions. The existence of power politics can determine if a project receives funding and high priority. Organizational politics may be defined as actions by individuals or groups of individuals to acquire, develop, and use power and other resources in order to obtain preferred outcomes when there is uncertainty or disagreement over choices. Further, political behavior is much more likely to occur when decision-making procedures and performance measures are highly uncertain and when the competition among individuals for scarce resources is high. If this is the case, project selection is ripe for politics, given the uncertainty surrounding the feasibility of projects and the competition between projects for funding. Such selection will be based not so much on facts and sound reasoning, but rather on the persuasiveness and power of the people presenting the facts. Studies on innovation highlight the role that project sponsors play in the selection and successful execution of projects." Project sponsors are typically high-ranking managers who endorse and lend political support for the completion of a specific project. They are instrumental in winning approval of the project and in protecting the project during the critical development stage. Savvy project managers recognize the importance of having "friends in higher courts" who can advocate for their case and protect their interests. Within companies, the term "sacred cow" is often used to denote a project that a powerful, high-ranking official is advocating. For example, a marketing consultant confided that he was once hired by the marketing director of a large firm to conduct an independent, external market analysis for a new product the firm was interested in developing. His extensive research indicated that there was insufficient demand to warrant the financing of this new product. The marketing director chose to bury the report and made the consultant promise never to share this information with anyone. The director explained that this new product was the "pet idea" of the new CEO, who saw it as his legacy to the firm. He went on to describe the CEO's irrational obsession with the project and how he constantly referred to it as his "new baby." Like a parent fiercely protecting his child, the marketing director believed that he would lose his job if such critical information ever became known. The significance of corporate politics can be seen in the ill-fated ALTO computer project at Xerox during the mid-1970s. The project was a tremendous technological success; it developed the first workable mouse, the first laser printer, the first user friendly software, and the first local area network. All of these developments were five years ahead of their nearest competitor. Over the next five years this opportunity to dominate the nascent personal computer market was squandered because of internal in-fighting at Xerox and the absence of a strong project sponsor. Politics can play a role not only in project selection but also in the aspirations behind projects. Individuals can enhance their power within an organization by managing extraordinary and critical projects. Power and status naturally accrue to successful innovators and risk takers rather than to steady producers. Similarly, managers can become heroes within their organization by leading projects that contribute significantly to the organization's mission or solve a pressing crisis. Many ambitious managers pursue high-profile projects as a means for moving quickly up the corporate ladder. For example, Lee Iococca's (once president of Chyrsler) career was built on effectively leading the design and development of the highly successful Ford Mustang. One could argue that politics and project management should not mix. A more proactive response is that projects and politics invariably mix and that effective project managers recognize that any significant project has political ramifications. Likewise, top management needs to develop a system for identifying and selecting projects that reduces the impact of internal politics and fosters the selection of the best projects for achieving the mission and strategy of the firm. PREV: Connection of Projects to Strategic Plan: The Implementation GapNEXT: Multiple Projects/Resource Contentions |