Project Management: Exchange Model of Influence and Currencies



What does the exchange model of influence suggest you do to build cooperative relationships to complete project?

This approach follows the adage “You scratch my back, I’ll scratch yours.” Basically, this involves the use of “currencies” that are trades within an organization. The bottom line is that a project manager will be influential only as long as he can offer something of value.



Task-Related Currencies:

The project manager directly contributes to others doing their work. This could include responding to a subordinate team member’s request for additional money, time or human resources to complete a project activity. Taking care (devoting personal attention) of an emergency request is another form of this currency. Yet another form of this currency is sharing valuable information/insight useful to other managers.

Position-Related Currencies:

The project manager helps to elevate the positions of others within the organization. This includes the art of making people look good in front of their bosses. It can also include defensive maneuvers: defending a colleague’s choice of actions if they are “attacked” by others. Finally, sharing contacts is form of this currency in which the project manager introduces/suggests an employee to another manager. Example: Suggestion to a fellow manager: “Joe Smith has a lot experience in this field…maybe, he can help you out.” This will elevate Joe’s position (either by reputation or, if he’s fortunate, by rank)

Inspiration-Related Currencies:

Maybe the most important form of influence. This can include creating an exciting project vision. Inspiration comes from many things; job or task satisfaction among the most important. A person working on a life-saving drug project may have a great deal of inspiration as the end result has dramatic implications. Inspiration or rewarding assignments may be as important as a high salary or good benefits. Instilling inspiration pulls people into the project.

Relationship-Related Currencies:

This form of influence involves strengthening relationships with someone that may have nothing to do with project tasks. This can include personal/emotional support, sharing a sense of humor, or even non-work-related activities such as barbeques or family outings. Ultimately, the types of bonds formed in such activities will strengthen the bonds within the work place. It’s important to be able to relate to someone outside of the workplace (about non-work issues) as this type of relationship is often more meaningful.

Personal-Related Currencies:

Addresses individual needs and sense of self-esteem. A project manager should enhance a colleague’s sense of self worth whenever the opportunity arises. One way to do this is by simply expressing gratitude. Other ways this can be done is by giving them more challenging assignments, sharing skills, or giving them the freedom to stretch their abilities.

What differences would you expect to see between the kinds of influence currencies that a project manager may use in a functional matrix and influence a project manager of a dedicated project team would use?

Looking at the descriptions in (see above), the first two forms, Task-Related and Position-Related will take on a different form in a functional project matrix as opposed to a dedicated project. If we look at Task, it can be postulated that a project manager will be much more reluctant to sharing resources with another manager in a Dedicated environment as opposed to a Functional Matrix. In other words, this action will require the project manager to go to far out of his way to aid another individual/group as they are not part of his team. Looking at Position, we can see a project manager putting in a good word for (or defending) one of his own in a Dedicated project; but not as likely to do the same if it came to a non-project member. Often, the dedicated project approach instills its own culture; helping outsiders is, therefore, like not favorably looked upon as this takes may take away time/manpower/money from the team’s dedicated cause. It may even be seen as betrayal.

Inspiration, Relationship and Personal currencies may be stronger influences within the dedicated team as opposed to a functional matrix. Often, a team will “hang out” together, offering each other moral support. This can often lead to activities outside of work. Dedicated teams are much more likely to organize social functions than functional matrix teams simply because their efforts are much more interlinked. Further, a project manager is more likely to offer words of inspiration or personal/emotional support to members of a dedicated team as he feels much closer to them. That is, the project manager can come to view his team as safely guarded “children” that he must protect. This type of relationship is often missing in the functional approach.

Why is it important to build a relationship before you need it?

This is like putting money in the bank and saving it for a rainy day. You never know when you’re going to need it. Said another way, project manager’s need to establish good credit by forming positive relationships; this will allow them to tackle more serious issues that occur later. People view other people based on past relationships, behaviors or actions. If a persons past actions are favorable, they are more likely to be assisted by others in the future. The trick for the project manager is to start on building these relationships as early as possible. With the fast-paced world of today’s projects, requiring the assistance of others happens all too soon and all too often.

Why is it critical to keep the project sponsor informed?

Fist and foremost, no one likes surprises. Surprises (especially bad ones) disintegrate the fabric of trust between the two parties. It is always best to keep honest, open and constant communications between the two parties. This can save disappointments or embarrassments in the future. Often, a project team will delay revealing information, as they may be fearful of the response of the sponsor. However, it’s always important to realize that both parties are on the same side. Hiding or delaying the truth will only exacerbate the problem. Honesty is usually the best policy.

A way to ease the flow of information to the sponsor is to use their language. Sponsors often use buzzwords/jargon amongst themselves. Learning their vernacular is sometimes essential in communicating with them, especially if you have to give them bad news.

What are the elements of an effective project vision? Why are they important?

There are four elements:

Communicate: Visionary ideas are not worth very much floating around in someone’s head. Their important qualities must be communicated.

Strategic Sense: Given the objectives, constraints, resources and opportunities available in the project, the vision has to make strategic sense. In other words, the vision has to be realistic. Is the project do-able with what we are given?

Passion: The project manager has to believe in the vision – not just announce it. If he doesn’t, how can he expect his team to do the same?

Inspiration: The vision must inspire all who work on it. It must not be viewed as tedious or dull. Project members should feel a sense of purpose – a reason for coming in to work other than just to earn a living.

What is the difference between functional and dysfunctional conflict on a project?

Functional:
Conflict is essential to a project as it encourages debate and problem solving discussions. Sometimes, the absence of conflict can cause problems. That is, project members may feel pressured by time, self-doubt, or a dedication to keep the team harmonious. Hence, they may hold back their opinions/objections. The lack of opinions can hurt the team effort, as not enough alternatives to solving problems are available. project manager’s must encourage “healthy dissent” so that the team can solve problems and become innovative. A way project manager’s can initiate healthy dissent is to assign a team member to play devil’s advocate. It is important that the project manager protects the opinions of ALL members…even those with very different views.

Dysfunctional:
While functional conflict helps the team achieve its goals, dysfunctional conflict can do the exact opposite. Sometimes, conflicts arise between two team members, or between the team and one or two members, that is difficult to resolve. This type of conflict can be characterized by irrational, personality disputes or when the failure to dispute a conflict results in the delay of important project tasks. There is often no easy solution for dysfunctional disputes. Some options the project manager has are:
Mediate the Conflict: Negotiate a resolution to the problem by listing alternatives.
Arbitrate the Conflict: A solution is imposed after hearing each party out. The goal is to have the project win, not a particular party.
Control the Conflict: Reduce the tension by diverting attention away from the conflict issue – such as interjecting humor. Or by calling a “time out”; perhaps, the conflict can be solved the following day.
Accept it: Just accept the conflict as a part of life and live with it (the level of acceptance will have to depend upon the how distracting the conflict is)
Eliminate the conflict: The project manager can remove the members(s) involved in the conflict from the team. Temporarily or permanently (if the reasons are sufficient). This should be the LAST option.

What are the unique challenges to managing a virtual project team?

Interpersonal communications is dependent upon verbal/audible and gesture cues. These give us insights as to an individuals true motives and intentions. As human beings, we use these cues to establish trust and confidence amongst ourselves. Virtual communication curtails many of these qualities. This is especially true for e-mail -- all we have is script, nothing else. Videoconferencing is a step in the right direction but it is not the same as face-to-face conversations. As the text aptly points out, “You can’t have a drink over the Internet.” Certain concepts such as Personal and Relational currencies are cannot feasibly be accomplished on the Internet. In other words, family outings or barbecues with fellow team members is nearly impossible with the current state of technology. Another problem, in an activity such as a conference, is trying to get everyone to meet at once. With the varying time zones in the US and around the world, trying to find a common time frame is difficult.

Some tips to enhance virtual performance:

Try to include face-to-face meetings if possible: Perhaps the initial meeting of the project team can be such an event. This will establish social ties crucial to the team’s coherence.

Keep team members constantly updated on project progress: Perhaps a website devote to the project’s progress

Keep team members from vanishing: Use Internet scheduling software to keep all in touch with each other.

Establish a code to avoid delays: All team members should agree on what/when/how info will be shared and when they will respond to it.

Establish clear norms and protocols for conflicts: Due to the absence of body language, project manager’s need to be extra careful in determining the opinions/views expressed in e-mail communications. This may require going over a message several times or asking the sender to clarify his/her meaning.

What can a project manager do to avoid some of the pitfalls of a highly cohesive project team?

Awareness of the particular varieties of pitfalls is the fist step in avoiding, eliminating or reducing the effects of these issues. One manner of reducing the effects of a pitfall such as groupthink is for the project manager to initiate connections to the “outside world.” The outside world is how some project members often think of the parent organization (of which they are a part). Connections to the parent org occur naturally in matrix project teams; however, dedicated project teams are isolated. This can be done by getting team members involved in meetings and conferences of the parent organization. Another approach is for the project manager to bring in external specialists. I think getting team members re-involved in the parent org is important towards the end of the project. This can ease their transition to the “hum-drum” of their functional duties.

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