Social Commerce & Marketing

Introduction

Amazon.com has numerous elements that allow customers to personalize and customize features and products. The question to ask is how effective are the various elements? Do they cause a customer to buy more products? Wal-Mart, too, has similar elements built into the eCommerce (EC) site. Is it effective and will it be a cause of concern for Amazon? Will Amazon continue to be the dominant force in etailing or will Wal-Mart, being the economic juggernaut that it is, prove to be a force to be reckoned with? Wal-Mart, after all, does have a history of displacing so-called leaders in the market when it opens a new store. This paper explores these questions to help better understand the dynamics at play here in eCommerce.

Personalization

Three personalization items to note are “Wishlists,” “Featured Recommendations” and “Recently Viewed.” Wish Lists allow the customer to create separate lists of items they might like to buy at some future time for themselves or someone else. An interesting thing about these lists is that if the customer waits long enough, they could see a significant drop in price. Amazon provides a way for me to schedule recurring orders for products that I use on a regular basis. The “Recommended for me” and “Recently Viewed” are Amazon’s way of suggestive advertising to see if the customer would consider buying more. It’s much like add-on products or like accessorizing; adding a matching pair of shoes to the dress you just bought (Amazon, 2016).

Where the real personalization takes place is with meeting the customers’ needs and one of the things that Amazon is known for is being a pioneer in personalization. Their use of data mining technology to make the consumer shopping experience much more memorable and exciting is being mimicked by all others, including Wal-Mart. Amazon uses the data gathered on its customer’s activities, besides to make the shopping experience more memorable to the shopper, it informs sellers what they should carry in inventory, how much they should carry in inventory, and what times of the year they should carry this suggested inventory (Rao, 2013).

Customization

Something to take note of is the types of customization in question here; one is for customizing products to meet consumer’s needs; much like what Dell Computers does for example.  Secondly is for customizing web experience such as in allowing consumers to choose what they would like to see on their “page” and what the website shows you based on your previous activity. A customizable product would be difficult for Amazon to do since they’re an eTailer and not a manufacturer like Dell Computers for instance; that doesn’t prevent Amazon from aligning with manufacturers, like Dell to provide the consumer the ability to buy customizable products through Amazon. Amazon would certainly have to ensure a good fit since Amazon is a destination and most people wouldn’t consider Amazon to be a destination for buying a car, for instance. But Amazon does, to somewhat the same extent as Dell, provide available customization on some products, for instance, golf clubs or purchasing dress shirts. But it’s limited to what the manufacturer is willing to offer, much the same as Dell does, for instance. As for customization of the interface of either Amazon or Wal-Mart’s websites, there is no evidence that either allows for such customization (Amazon, 2016).

Amazon versus Wal-Mart

Money

Will Wal-Mart be able to beat out Amazon online? Likely it will be an interesting battle, especially since Amazon recently became bigger than Wal-Mart with a market cap of $246 billion versus $230 billion respectively. Even though Wal-Mart’s overall sales are still greater than Amazon’s, Amazon is smoking Wal-Mart in eCommerce (D’Onfro, 2015). Amazon’s EC shopping has been seeing bigger and bigger sales percentage increases than Wal-Mart’s EC and brick-and-mortar combined, with the share of EC percentage of total sales rising from a mere 0.6% to 7% from 1999 to 2015 showing quarterly increases almost triple that of brick and mortar.

But other numbers spell out a clearer picture of the differences between Amazon and Wal-Mart: Wal-Mart has far more employees: 2.2 million to Amazon’s 154,100. Net sales are clearly a victory for Wal-Mart coming in with $482.2 billion versus Amazon’s $88.988 billion. But the following is where the difference is: Amazon’s year over year growth versus Wal-Marts has been 20% to 1.9%. Amazon’s product offerings equal 250 million versus Wal-Marts mere 4.2 million. Amazon adds 75,000 new products per day while Wal-Mart opened 115 new supercenters last year, and Amazon reaches 244 million active users with 154,000 employees versus Wal-Mart’s 2.2 million employees.  The numbers tell the story (Peterson, 2015).

Avatars

In EC avatars have become quite common. They’re used extensively in eLearning and customer support. These are referred to as picons (personal icons), but that has long since stopped. Avatar as a word is derived from Hindu and is stands for the “descent” of a deity in a terrestrial out of body form (Avater-Wikipedia, 2015). Using an avatar can certainly be more efficient for the company since it doesn’t have actually to pay an actor or hire an actual human to interface with a customer; it seems that some people could be turned off from using one. It’s much like going through an automated answering system when you call your insurance company, very frustrating. Since the company using the avatar has to try to predict what the customer is going to ask commonly, it makes it difficult for that customer who asks a question that doesn’t quite fit the mold.

But in virtual world websites like in Second Life, the blend of virtual-world EC and the real world creates opportunities for creative marketers. Companies like MacDonald’s and Dell have created few instances of selling real-world products in virtual worlds to real-world customers and delivered them to their real-world addresses (Hemp, 2006)

Banner Advertising

A banner ad is an advertisement usually displayed across the top of a web page or along the side of the page and is commonly served up by an ad server. This advertising form is embedded into the web page. Its intention is to attract traffic to an advertiser’s website accessible because the ad hyperlinks to the advertiser’s website. Web banners function much like traditional advertisements in print media function: they serve to attract immediate attention to whatever the advertiser is selling in the hopes the viewer will be attracted and enticed enough to click on the ad. Interestingly, this data can be tracked from the ad: how many times the ad displayed; how many clicks; how far those who clicked went into the hyperlinked website from clicking in and out to actually purchasing the product (Web Banner-Wikipedia, 2015). What makes any ad popular? Banner ads are a quick and easy way to place your wares in front of millions of people all at once. Traditional full-page newspaper ads don’t even get that kind of coverage. Tracking a web page banner ad is certainly far simpler than tracking an ad in the yellow pages. And you can advertise just about any product from automobiles to children’s toys to food. Banner ads are much like billboard advertising because people are likely only taking a quick glance; makes it so they’re more appropriate for brand reinforcement than for unique product advertising.

Conclusion

As you can see, Amazon doesn’t need to fear Wal-Mart running it over in the EC world anytime soon. In fact, Wal-Mart needs to pick up the pace a tad bit it would seem (Peterson, 2015). Judging from the numbers, it seems Wal-Mart’s cost per sale is higher than Amazon’s. After all, Amazon is doing much more overall with a lot less personnel than Wal-Mart.

Avatars and banner ads certainly have their place in the EC world. Baner ads placement or use is limited: banner ads are placed somewhere in whatever medium happens to be popular at the moment. It used to be newspapers and magazines; now it’s the internet.  Avatars are useful in areas like eLearning or introducing potential customers initially to a product or a service. The hope here, like banner ads, is that you click to exploring further into the connected website and possibly buy.

References:

Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more. (2016, February 13). Retrieved from https://www.amazon.com

Avatar (computing) – Wikipedia, the free encyclopedia. (2015, October 28). Retrieved February 13, 2016, from https://en.wikipedia.org/wiki/Avatar_%28computing%29

D’Onfro, J. (2015, July 25). Wal-Mart is losing the war against Amazon. Retrieved from http://www.businessinsider.com/wal-mart-ecommerce-vs-amazon-2015-7

Hemp, P. (2006, June). Avatar-Based Marketing. Retrieved from https://hbr.org/2006/06/avatar-based-marketing

Peterson, H. (2015, July 13). The key differences between Wal-Mart and Amazon in one chart. Retrieved from http://www.businessinsider.com/amazon-vs-wal-mart-in-one-chart-2015-7

Rao, L. (2013, August 31). How Amazon Is Tackling Personalization And Curation For Sellers On Its Marketplace | TechCrunch. Retrieved from http://techcrunch.com/2013/08/31/how-amazon-is-tackling-personalization-and-curation-for-sellers-on-its-marketplace/

Web banner – Wikipedia, the free encyclopedia. (2015, December 30). Retrieved February 13, 2016, from https://en.wikipedia.org/wiki/Web_banner

eGovernment & Technology

Introduction

eGovernment use of technology has grown over the years from using totally internal systems open only to government workers to today’s internet based systems that allow citizens to interact with their government. Government services today allow citizens to pay local utility bills online, pay taxes, and seek out government services to assist with building a business to getting a road repaired. Citizens can even read the minutes of the last board meeting and download a copy if they wish. Much of this interaction between government and its constituents can be done 24 hours a day, seven days a week, 365 days a year (Joseph, 2015).

But there will be a mix of ePortal style government sites in use for the foreseeable future. Much of this is due to the cost of creating and maintaining these web properties. Most local governments are ill-positioned to spend the tax dollars. Nor do they have the qualified personnel to manage the current system or to change to an internet based system. And, a basic mistrust on the part of local governments in using an internet based system; mostly with the security of such a system and their ability to control it. This post will explore various aspects of eGovernment and m-Commerce.

eGovernment Portal or Social Networking

The advantages of changing eGovernment from an ePortal system to a social networking system are in improving the efficiency over of the current system of paper-based work. It reduces the need for manpower needed in dealing with the bulk of paper-based work. Thus, it allows for involvement of the process by fewer employees, quicker service, and, therefore, leading to reduced operations cost (Tolley & Mundy, 2009). Other benefits include an increased participation by citizens in the activities of the government due to more information being literally at your fingertips. There is greater transparency in how the government operates and less chance for corruption to occur (Andersen, 2009).

Will government switch from an ePortal, or even paper based, system to a social networking system? The answer is an unequivocal yes. The reasons are that the technology will force the change. Society will force the change. Other levels of government will force the change. Changes in support for equipment, as well as the expense of maintaining the equipment, will cause local governments to switch to cloud-based applications. Constituents will make demands for information or assistance that requires easy access 24 hours a day.

Internal Initiatives

Internal initiatives provide tools that make government operations efficient and effective. Such applications as e-Payroll can consolidate dozens of different payroll systems into one easily managed system where employees can input their time worked, and the system automatically deposits their paycheck into their bank account. Other initiatives include records keeping, training of personnel, litigation case management, procurement management, personnel management and equipment management (Turban, 2012). All of these different apps run on an enterprise system very similar to what is used in many corporations today. All of these systems run across the enterprise on the internet successfully and securely.

The Role of Wikis and Blogs

Wikis and blogs serve the system by allowing groups and departments to collaborate on solving issues and problems. Many of these problems are cross-functional, and wikis allow the participants to be able to share information quickly and at less cost than having to make numerous copies for everyone. Wiki’s allow everyone to access all documents needed to hold a meeting. Wikis and blogs are valuable tools for sharing information and making decisions in government.

Strategic Advantage of m-Commerce

The strategic advantage of m-Commerce includes increasing the geographic area in which even a small company can sell a product. Many companies that make it big on the internet wouldn’t have done so if the internet didn’t exist because it would force them to sell in a smaller geographic location. These companies may be selling a specialized service or product which locally there isn’t much interest, but worldwide there is a huge market. The strategic advantage these companies have is the ability to reach those customers using m-Commerce that they would otherwise have to employ other methods such as advertising in national publications or on television; both very expensive alternatives. m-Commerce is growing by leaps and bounds every year. Two years ago sales for smartphones was greater than sales for laptops. Forecasts have sales for Ipads and tablets overtaking laptop sales by 2016 (Blodget, 2013).

m-Commerce provides true personalization because it provides the means to access personal information immediately from the palm of your hand. Medical Insurance companies such as Blue Cross Blue Shield, and Medical providers such as Advocate Health Care, provide mobile apps that provide immediate access to patient information. Patients become more involved with their care, and the portals provide information, such as what medicines they take and in what doses, upon request.

Conducting m-Commerce on Social Networks

The benefits of conducting m-Commerce on social network include increased sales because of being able to order from anywhere at any time. The ability for location-based sales benefit local business people, whose wares sell only in the local area; an example is a local restaurant that caters to the local community. M-Commerce provides a local channel for coupons providing a wider reach. It provides for improved customer satisfaction due to real-time apps providing direct information which helps increase sales. Reduces costs such as training and help-desk support staff. It improves the productivity of mobile employees such as service technicians repairing in-home appliances. iPads and tablets have been programmed to provide technicians with the tools in which to test or look up parts information; being able to place an order for parts saves time and money for both customer and supplier. Entertainment comes right to the user’s smartphone allowing them to watch a movie or television show any time of the day or night. Pizza can be ordered from your smartphone while on the way home from work, paid for using a credit card, and be on your table 20 minutes later. M-Commerce comes to users over a nationwide private communications network that the users do not have to maintain, yet regulated by the government for the good of all.

Conclusion

It stands to reason that what New Zealand is doing has helped to make their government run more efficiently because they’re sharing information across departments by using the various wikis and blog tools available. Internet technologies allowed them to share that information with the general public thus affording them valuable feedback that otherwise would have been cumbersome to gather. Many governments here in the US could certainly learn how to improve their m-Commerce sites by studying what New Zealand is doing today.

References:

Andersen, K. V., & Henriksen, H. Z. (2006). E-government maturity models:

Extension of the Layne and Lee model. Government Information Quarterly, 23(2),

236-248.

Blodget, H. (2013, December 11). Number of Smartphones, Tablets, and PCs –

Business Insider. Retrieved from http://www.businessinsider.com/number-of

smartphones-tablets-pcs-2013-12

Joseph, S. (2015, September 1). Advantages and disadvantages of E- government

implementation: Retrieved from https://www.researchgate.net

Tolley, A., & Mundy, D. (2009). Towards workable privacy for UK e-government on the

web. IJEG, 2(1), 74. doi:10.1504/ijeg.2009.024965

Turban, E. (2012). Electronic commerce 2012: A managerial and social networks

perspective. Upper Saddle River, NJ: Pearson Prentice Hall.

Cross Functional Integration in Project Management

Introduction:

Bill Swanston and Gary Biggar work, respectively, as an Operations Manager and Senior Business Analyst for Robbins-Gioia, Inc. delivered a presentation to the Project Management Institutes (PMI) annual Seminars & Symposium on September 7–16, 2000 in Houston, TX. I will be summarizing their article “Developing a framework for establishing cross-functional integration within a product development project” (Swanston & Bigger, 2000), published on the PMI website, and showing how what they do to run projects relates to the concepts we will be studying in our course this semester.

In order to understand Project Management Integration one has to first understand what makes up a project. All projects have a start and a finish; they’re not an ongoing endeavor. The parts between the beginning and the end are what concerns Project managers the most. And it’s how these parts are brought together to perform the required tasks, at the right time, bringing the project to a successful conclusion that is known as project integration. This integration management comprises the processes and activities that identify, describe, join, and synchronize the various processes and activities within the process groups (PMBOK, 2013). What Swanston and Biggar have developed is a process they use to manage the various projects they work on within the auto industry, but these processes are applicable to any industry.

Project Templates

Swanston points out that the creation of project templates in which to organize integration of projects is essential. The first of these templates Swanston calls the “Overall Project Template”. It contains the major milestones and key events for a typical product development project within the organization. The Overall Project Template is used to set the margins or parameters for the project. These parameters are commonly referred to as the scope of the project. All team members, once this is complete, will use the Overall Project Template as a reference to plan their exact detailed work.

The Project Integration template is second of the templates and it is the integration/management template that incorporates the details for the milestones and the key events used to effectively manage the project.  The Project Integration Template includes the detailed tasks needed to complete all of the high-level tasks. It basically fills in the blanks for the Overall Project Template. But this template should not be too detailed; it should not go deeper than 3 or 4 levels down. The smaller details will be handled at the functional level by developers or programmers.

One thing to note, as in any Work Breakdown Structure (WBS), which is basically what the integration template is; the project integration template is best when it’s structured by function. By this Swanston and Bigger mean that all functions need to be included in the template and each task identified needs to be linked to an appropriate deliverable. They do this linking using the “Text” and “Flag” fields in Microsoft Project in which to filter out the essential tasks from the summary tasks. Swanston points out that developing these templates requires participation from all involved in the project. Their buy-in is extremely important to the successful conclusion of the project (Swanston & Bigger, 2000). They advocate holding weekly strategy meetings in which at least one member from each impacted team is required to attend. Swanston and Biggars use these templates to help define the high-level requirements of the project and to bring together all the different impacted teams in order to properly integrate the management of the overall project.

How the Overall Project Template and the Project Integration Template Relate to Course Goals

A key in any project; the earlier the Project manager can get a high-level plan to the impacted teams, the better. Part of the process, in the beginning, is to get all of the impacted teams thinking of what this project is about and to get them started on discussing project strategy, to identify tasks, and what resources will be required in order to complete those tasks. Swanston’s overall project template is much like putting together the project charter which includes the project scope, project work statement, and business case on a high level.

The Project Integration template begins to put the teams on the planning path bringing together expert judgment to review the charter and scope requirements and creating the WBS from which the project plan/schedule/budget will be created. The WBS, like Swanston’s Project Integration Template, allows the team to tie together the different tasks to a specific deliverable which is tied to a specific business requirement. It also allows the team to ensure that all tasks are completed in order and on time.

Getting team members to work together is also an essential part of integration management. Part of the challenge with many projects is that the teams involved come from a variety of departments. Getting them to work together has its own issues. Each department can have its own set of rules and requirements. One department could require a special work request form to be submitted. Another could require that it needs authorization from another department before it can begin work. And each of those departments didn’t bother to mention these requirements until shortly before their work was to begin. There is a certain amount of skill and experience required on the part of the Project Manager in order to stay ahead of these types of obstacles. Integration plays a huge role in defining the skills a Project Manager will need.

Conclusion:

Implementation of the project management process presented is essential to the successful integration of any project. True cross-functional integration involves bringing together multiple vertical and horizontal functional tasks in developing the project charter and scope, creating the project plan so that the work and tasks can be identified so that execution is properly scheduled. Swanston and Biggars use a tool they created that aligns quite well with the PMI PMBOK requirements and it shows to be quite adaptable to other industries as a result.

References:

Fleming, Q. W., & Koppelman, J. M. (2010). Earned value project management. Newtown Square, PA: Project Management Institute.
Gido, J., & Clements, J. P. (2012). Successful project management. Australia [etc.: South-Western Cengage Learning.
Kerzner, H. (2009). Project management: A systems approach to planning, scheduling, and controlling. Hoboken, NJ: John Wiley & Sons.
Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK guide), fifth edition. Newtown Square, PA: Author.
Swanston, W. J., & Biggar, G. T. (2000). Developing a framework for establishing cross-functional integration within a product development project.  PMI publication. http://www.pmi.org/learning/cross-functional-integration-product-development-8906

Effective Management of Project Change Orders

A Critique of

Edward E. Douglas’s

Article

Effective Management of Project Change Orders”


Table of Contents

Abstract

Introduction

Planning for Change

Planning and Design

Change during Application Build

Closeout

Conclusion

Abstract

Scope is the total sums of all the products/services that are required to complete a project (PMBOK, 2013). But even when the scope has been completed and a freeze is agreed upon, change occurs. Edward Douglas’s article “Effective management of project change orders” discusses how to effectively manage any requested changes that may come up during the life of the project. And while he concentrates considerably on the construction industry, much of what he suggests is applicable to any project. Could these concepts be used in another industry such as IT applications development projects? This paper will explore that possibility.

Introduction

Scope is the total sums all the products/services that are required to complete a project (PMBOK, 2013). But even when the scope has been completed and a freeze is agreed upon, change occurs. Edward Douglas’s article “Effective management of project change orders” discusses how to effectively manage any requested changes that may come up during the life of the project. And while he concentrates considerably on the construction industry, much of what he suggests is applicable to any project.

In this paper I will apply what Mr. Douglas suggests to Information Technology (IT) projects as there are a lot of similarities in the methodology Edwards advocates. For instance, we can all agree that the earlier we can identify a change the easier it would be to implement that change and the less costly it would be to implement. Further into the life of the project, the harder it will be to implement and the cost goes up. For example, it is much easier to change the foundation of a house before you pour it then it is to do so after the roof has been installed. In the programming world, it is much easier to make changes to the user interface while it is still in design then it is when you’re ready to push it out to production. There are many different methods and processes that can be put into place to help ensure that changes are identified and considered early in the process rather than later. Are these 100% effective? No, but it does help to eliminate many a costly error or change.

Planning for Change

Before any planning of what the project is actually to do begin, the project leadership needs to develop a project change management plan. The object is to put into place an agreed upon process for managing change should it occur.

The change management plan needs to plan who has the authority to approve changes. One has to take into consideration the threshold in which a change, such as a simple one, can be made by the project team, or if it is of such impact to the project that it needs to be approved by a higher authority. The plan has to outline the process for approval and everything that is needed for approving changes.

This plan needs to consider the process for submitting the requested change. Questions to be answered are who can make the change request? Who does a change request need to be submitted to? These are not easy to answer questions. Usually it’s the Project Manager who should initially receive the initial request for change. But sometimes one of the lead managers can receive a change request and then submit it to the Project manager. But, a change request should always go through the Project Manager since they oversee the entire project and can see impact where others are not aware (PMBOK, 2013).

The change management plan needs to consider how a change will be analyzed for impact to the project. What will be the impact to the schedule? Will it require overtime or extra resources or specialized help (availability)? Once the change request goes through impact analysis it will need to go through the approval process. The analysis process needs to outline what information is required and in what format should it be delivered and to whom it should be delivered in order to get approval. Should all change requests go through a steering committee for consideration, or can the PM decide that a requested change is too far outside the scope of the project for it to proceed (Verzuh, 2012)? Perhaps consideration of the change will take away resources from work underway and will have an adverse effect on the project timeline and budget; should the project budget money towards considering change requests?

Planning and Design

The most appropriate phase in which to take on change would have to be during the planning and design phase. It is best to consider and implement change as early as possible in the project as it is easier to and more cost efficient than it would be in later phases (Douglas, 2003). It is recommended that the PM and the sponsors freeze the scope of the project as early as possible in the planning or design phase. This holds true in construction as well as in IT projects; IT projects will find it a little easier to make changes to the scope even while in the execution phase. The master schedule should also be completed and approved during this period so that any requested changes can take into consideration impacts to it. Early completion of the design of the application will allow for build reviews and to catch any possible changes before construction of the application even begins.

By determining the scope, the work required, like through a Work Breakdown Structure (WBS) and completing the design of the application before even beginning to execution a build the project team can identify any changes that may be needed and to determine if implementation is needed. If the change identified is needed then the steering committee can determine if it wants to approve the impact the change will have to the project.

Change during Application Build

Since the project leadership team created a change management plan early in the project it would seem reasonable to say that any changes to the scope would go through this process before any change occurs.

The team would have to be thoroughly knowledgeable on the project plan and scope and understand the impact any change could have on its outcome. When a change is requested the team would have to put together an analysis of the impact that change may have. The PM would have to determine if he even wants to commit resources to doing the analysis of a requested change. The first questions to be answered are whether there is time and money in the project to consider changes. Another concern would be the impact of cumulative changes to the project. The danger here would be scope creep and budget overruns leading to financial failure of the project (Douglas, 2003).

Closeout

The concern here is that if the project is not properly closed; have all changes been completed; have all changes been properly documented, even those not approved? Subcontractor and vendor claims have to be closed before usage of the projects product and/or service is used. Potential problems include changes that were not completed properly or just simply not done. If the project is not properly closed problems could crop up. Too often closing the project is given little notice. The project team and leadership have often moved on to other projects leaving the PM to try to clean up the pieces.

Conclusion:

Douglas points out that it is best to develop and to put into place a proper change management plan. PMI points out that it is best to develop a number of management plans that help to guide the different processes of the project; a plan for each phase, so to speak. Many of the suggestions and guidance given by Douglas can be used in projects in other industries, too.

References:

Douglas, E. E. (2003). Effective management of project change orders. AACE International Transactions; ABI/INFORM Global, PM111.

Kerzner, H. (2009). Project management: A systems approach to planning, scheduling, and controlling. Hoboken, NJ: John Wiley & Sons.

Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK guide), fifth edition. Newtown Square, PA: Author.

Verzuh, E. (2012). The fast forward MBA in project management, fourth edition. Hoboken, NJ: John Wiley & Sons.

Project Leadership

Successful projects are usually the result of strong leadership. The question arises as to what is considered, or what does it take, to be a strong project leader. Especially in today’s world of project teams made up of people from cultures around the world. This paper will examine the many different aspects, interpersonal skills and qualities of what it takes to be the leader of a successful project in the IT world.

Abstract

Successful projects are usually the result of strong leadership. The question arises as to what is considered, or what does it take, to be a strong project leader. Especially in today’s world of project teams made up of people from cultures around the world. This paper will examine the many different aspects, interpersonal skills and qualities of what it takes to be the leader of a successful project in the IT world.

Introduction

Project Managers (PM) are very unique people. The expectation is that they bring their projects to a successful conclusion with hopefully just enough resources, money, and time. The expectation levels are pretty high and the pressure can be extreme. They’re asked to take a huge unknown and make it all work together to produce a known. They are the boss of no one; yet are expected to get people to do what needs to be done and are held responsible if they don’t succeed. They have to bring together a group of people who have likely never worked together before and make it so they are a finely tuned engine with all cylinders firing in unison. Depending on the size and nature of the project, that could be a lot to ask of any one individual. It would take a special kind of leader.

Leadership is no longer limited to one or two executives at the top of an organization. There are many different levels of leadership in any company, especially in today’s global economy where resources specialize in a given area of business. Everyone in the company must be a leader if the organization is to survive and thrive (Tichy & Cohen, 1997). Without good leadership, nothing works. Projects have been known to get totally out of control because there was no one leading the group. And even if there is a leader, if they’re weak, the project team will run all over that person.

Leaders are not born leaders; leadership is a discernible set of skills and abilities. Granted, some people are better at managing than others, thus seeming to so many to have been born a leader. But like everyone else, they learned and practiced to become skillful at leading.

Leadership is a relationship between those who aspire to lead and those who choose to follow. Not all of us can or want to be leaders. Sometimes the relation

ship is one-to-one; sometimes it is one-to-many. Regardless of the number, leadership is a relationship between leaders and followers.

But amongst all of the traits a leader needs there is one that has to be earned and it is the one most admired; personal credibility. Without personal credibility there is no foundation of leadership. Personal credibility brings with it trust; we want to believe in our leaders, have faith and confidence that they believe in the direction we are all going. The team has to believe that the PM has the end goal in mind.

PM’s need to have a combination of the above mentioned skills and abilities in order to be good leaders. First amongst these skills are people skills. Next is, depending on the project, technical skills. Technical skills really depend on the project. If it is IT or other highly complex project then technical skills helps in bridging the trust factors of the team (Verzuh, 2012). If the team doesn’t have faith in your technical skills, or at least your ability to understand what they’re doing, they begin to believe you cannot lead them to the end goal of the project.

Other interpersonal skills include leadership, team building, motivation, communication, influencing, decision making, political and cultural awareness, negotiation, trust building, conflict management, and coaching (PMBOK, 2013).

PM’s have to be able to think quickly on their feet when making decisions, sometimes by themselves, but more often with the project team as a whole. They get much of this ability to think quickly from the knowledge and experience they have gained from many years of practicing their trade. Without the education that experience brings us we would not be able to be leaders in this new world.

There are five success factors every project has to meet in order to be successful: Agreement amongst the team as to the goals of the project; a plan with a clear path to completion along with clearly defined responsibilities that can be used to determine progress in the project; continuous effective communications understood by all involved; controlling scope; and management support (Verzuh, 2012).

Getting everyone involved in the project to come together on all five factors is the PM’s job. This paper will discuss the various interpersonal skills needed to successfully bring these factors together and how they apply to the art of Project Management.

Interpersonal Skills

There is no doubt that the best PM’s are also exceptional leaders. They inspire, they bring people together by giving them the vision of what’s down the road, people trust them, and they achieve countless things. To successfully lead a project to completion requires a strong leader with people skills in leadership, teamwork and team behaviors, decision making, problem solving, and conflict resolution. Without these interpersonal skills the project will lack strong leadership and direction which could cost the organization tremendously.

There are three skills, broadly speaking, that good leaders should have:

1.    Technical skills because the team will trust and believe in you if you can participate one-on-one with them in finding a solution; or at least can talk the talk and walk the walk. In the IT world it’s knowing programming, it’s knowing how the pieces of the system fit together in order to make it work. The team wants to know that if need be, you can make it work on your own.
2.    Human skill knows how to work with people. It’s very different from technical skill which has to do with working with things. These skills allow a leader to work with people to help them achieve their goals which helps the project achieve its goals. People skills allows a leader to work with groups of people, especially useful in project management since the object is to get a group of people to work as one towards a common goal.
3.    Conceptual skills involves possessing the intelligence trait as it deals with the ability to work with ideas and concepts. It is central to creating the vision and plans for the project and conveying those thoughts effectively to the team and stakeholders.

Good leaders need to possess a certain traits like intelligence; basically the ability to express ones-self verbally, perceptually and with sound reasoning brings people to trust in your ability to lead. They need to be self-confident. Self-confidence is the ability to be certain about ones skills and competencies. This includes self-esteem. But a good leader is not arrogant. Influencing others is part of being leader and having the self-confidence to influence allows the leader to feel that their attempts to influence are correct and good for the project. Integrity is highly important because it is the quality trait of honesty and trustworthiness. Leaders who adhere to a strong set of principles taking responsibility for their actions exhibit integrity. Sociability is the trait of seeking positive pleasant social encounters. Good leaders like to talk with people, especially in intelligent stimulating conversations. They are polite, sensitive to others needs, outgoing, tactful and diplomatic (Northouse, 2004).

Leadership

Leadership involves concentrating the efforts of a group of individuals and moving them toward a collective goal, empowering them to work as a team. Leadership is the talent to get things done through others. It’s very much like herding a bunch of cats. Respect and trust are keys of actual leadership. Fear and compliance only lock the door to future cooperation. Although important in every project phase, good leadership is critically important during the initiation and planning phases of a project. This is the time to bring the team on board by telling them the importance of the goal, using that vision to motivate and inspire a group of individuals to come together formulating a team to achieve success. Good leaders always have the end in mind.

All through a project, the PM has to establish and reinforce the vision and strategy by continuously communicating the message. This communicating helps to build trust; build team; influence, mentor, and monitor project and team performance. After all, it is people, not plans that complete projects. The PM, by inspiring others to find their voice, keeps the goals and objectives front and center. A successful project is a result of everyone agreeing on what needs to be done and then doing it. From initiation to closing, the project depends on the willingness of all involved to come to agreement, to synchronize action, to solve problems, and to react to changes. Communication amongst everyone is all that is required (Verzuh, 2012).

Team Building

Team building is the process of helping a group of individuals to work together as a cohesive unit, to work with their leader, to work with external stakeholders, and the organization. In the end, good leadership with good team building makes teamwork. PM’s have to remember that running a project is not a one-person effort; it takes a team to complete a project.

Team building really does require all the interpersonal skills a PM can muster, as well as the five success factors for a project. To know and like a PM is to trust them. It’s not likely the team will trust their leader if they don’t really like him, they can’t really like him if they don’t know him, and in the end they won’t trust him if they don’t like or know him.

A project team is a group of people with complementary but diverse skills and experiences who are asked to work together to accomplish the goals and objectives of the project. The purpose of the team is to develop and execute a work plan that will meet the goals and objectives of the project. Everyone on the team needs to be committed and dedicated to the same thing: meeting the goals of the project. Although the goals may be same, how the team elects to execute the work plan is variable.

Team-building activities consist of a series of tasks that establish the goals of the project, clearly define the roles and responsibilities of each team member, and establish the procedures and processes the team will work under.

Some of these processes include how the team will communicate, how it will interact with each other in meetings; the PM needs to lead the team to agreement on establishing the rules for conflict management. Establishing these rules allows the developing of an environment in which the team can work. Part of developing a team environment involves handling project team problems and determining how these issues will be discussed. The PM puts these processes together with their team because the PM knows that the team needs to take ownership and have buy-in for it to work.

Team building helps build commitment from your team. They have to choose to become a member of the team. The PM cannot make them commit, the individual has to decide. The PM, as a leader, has to figure out what is the best way to get that true commitment from you. He has to figure out how to empower you to decide to commit to the project, its goals and its objectives. Some people prefer committing to a team rather than as an individual; it makes it easier for individuals to join. Some people just have trouble committing to a decision except when in a group. Some call this group think where one individual does all the talking and everyone else just follows along. The talker is given a false sense of empowerment believing they have control. The wise leader will learn what it takes to motivate this individual and what it will take to bring the best out in the rest of the team.

Team building involves bringing out the best in each member. Some members can be timid allowing other members to make the decision and they’re along for the ride. The problem here is that there are a select few who are actually running the team rather than having involvement from all. If all are not participating it makes it tough to get strong commitment for all because decisions are being made that some might find objectionable. But because the team leader didn’t allow the opportunity for them to speak up, they go along half-heartedly accepting the direction the project is taking even though they might know a better course of action.

Changes are inevitable in a project, and the PM has to manage them effectively with a continual team-building efforts. The PM should continually monitor team functionality and performance to determine if any actions are needed to prevent or correct various team problems. With team building, as the PM develops the team, team performance should increase.

One model of team building involves five distinctly different stages of maturation in the team (Tuckman, 1965):

1.    Forming: This is when the team is getting to know each other. They’re interested in who each member of the team is and what they bring to the table. Questions like what do they know and will they be able to help me if I have a problem. Teammates also want to know that the other teammates will carry their weight.
2.    Storming is where the team begins to dig into the project goals and objectives. They begin to define and divide the tasks needed to be done and who will be responsible for completing those tasks as well as when. Technical decisions are made during this period. Gaining an understanding of the project processes also occurs. Cooperation can become counterproductive if the team does not collaborate well.
3.    Norming is the beginning of cooperation amongst the members of the team. They begin to trust one another, especially each others abilities.
4.    Performing is when the team begins to work as a well-oiled machine. Trust is attained and production increases. Conflict is minimal but productive as they work through issues easily.
5.    Adjourning brings the project to a close. The final product is approved for production and the team moves on to the next project.

Team building can be additionally enriched by gaining top management support; encouraging team member commitment to the goals and objectives of the project; introducing appropriate rewards, recognition, and ethics; creating a team identity; managing conflicts effectively; promoting trust and open communication among team members; and providing leadership. While team building is essential during the front end of a project, it is an ongoing process. Changes in a project environment are inevitable. Maintaining ownership and buy-in form the team will be difficult. To manage these changes effectively, a continued or renewed team-building effort is required. Outcomes of team building include mutual trust, high quality of information exchange, better decision making, and effective project management.

Three Spaces of Projects

As discussed above, part of team building involves creating the right environment in which to work. The dynamics of a project have been said to operate at three different spaces of project management. Space refers to an abstract boundary of human relationships.

First, people interact within the systems occurring in an expansive organizational space. This is the space that is defined by the organization that all members of the organization have to abide by. These include where in the building a team member’s desk is located; dress codes; hours of operation; company vision and goals.

Next, people interact with each other within a smaller space known as a team space. Because each project is different, organizations allow them to set up their own rules and processes so long as they fit within the organization space. The team space is defined by the team. This is where the team defines how members will interact with each other. Rules are defined as to how communications will be handles, how members will conduct themselves in meetings, how status reports will be delivered.

The last space is made up of each team member’s personal space where the individual team member’s interactive thinking occurs and human factors are formed. This is the individual team member’s space to do with as they choose. They make up the rules and decide the direction they will go. From this space team members choose how they will interact with others on a day-to-day basis; even from one issue to another. Much of how we react is determined by how and where we were raised, what cultural beliefs values are, and our individual personalities. This is the space that the PM must learn as much as they can about the individual team member in order to effectively manage them. From this space the PM can learn what it takes to motivate the team member thus allowing the manager to better direct them so that it meets that motivational factor (Wong, 2007)

Motivation

Project team members come from diverse backgrounds. Each has their own expectations, and individual objectives that they want to meet. The overall success of the project depends upon the project team’s commitment.  This commitment is directly related to their level of motivation. Motivating your team in a project involves creating an environment to enable your team to meet project objectives while also enabling them to meet their objectives and what they value most. These values will likely include job satisfaction, challenging work, a sense of accomplishment, achievement and growth, perhaps even money.
The PM has to determine how best to meet the need of each team member by learning what does motivate each of them. One way to do this is by listening every day to how they respond to different interactions. Meeting with each team member individually will be time consuming in the beginning, but will prove to beneficial later in the project when you get to crunch time. By learning early on what it takes to motivate that team member the leader will be able to know how to ask them to step up to the plate when it becomes necessary (Spreitzer & Quinn, 2001).

One motivation tool to use is letting your team do their own communicating with stakeholders, so long as they can do so reliably. What this does is to build confidence in the team member that you as the leader believe in their ability to do their job. If the PM is constantly hovering over the team member, especially in meetings with business Subject Matter Experts (SME), interrupting and over explaining, it brings a level of distrust in to the relationship. The PM has to allow for the team member to rise or fall on their own. Setting the expectation that the team member has to work with the SME’s raising the level of confidence in the team member. More importantly; it takes a load of work off of the PM by letting the team do their jobs.

Communication

Today, business is changing faster than ever, and most of those changes are being implemented through projects that require even stronger project management. However, just using sound project management methods does not ensure success, as many a PM has learned. Many PM’s have learned that while their project is a technical success; everything works as the business requirements document, the functional requirements documents, and the technical drawings stated; but the project is deemed a failure because it didn’t meet the business objectives of the company (Campbell, 2009).

The biggest reason a project fails was because communication, identified as one of the single biggest reasons for project success or failure, failed. Real communication is essential not only within the project team, but between the PM, team members, and all external stakeholders. Open communication is the opening to building team, creating teamwork and getting high performance from team members as well as your stakeholders. Communications helps build relationships among project team members which helps to create mutual trust. Building trustful relationships helps to move the project along enabling it to meet the goals and objectives all have agreed to. The PM needs to be aware of the communication styles of all involved in the project; He needs to know the cultural nuances/ norms, relationships, personalities, and the overall context of the situation in order to communicate effectively. Awareness of these factors leads to mutual understanding and thus to effective communication. Identifying various channels of communications helps the PM to better understand what information they need to provide, what information they need to receive, and the interpersonal skills that will help them communicate successfully with various project stakeholders.

Stakeholder satisfaction can be met through a clearly defined project scope. In the scope the object and the goals of the project need to be clearly defined to meet the expectations of the business and the stakeholders. Ultimately they are the ones who approve the scope of the project. The PM needs to ensure that the scope defines how the object of the project will be met. He needs to ask and get answered the question of what is the purpose of the project: What need or problem is the project supposed to fulfil or solve? What business outcome is the end result?

The definition of the scope is the first means by which the team begins to make the connection between the stated business goal and the means by which to achieve that goal. One of the tools that incorporate the scope is the project plan, including the Work Breakdown Structure (WBS). In the WBS the project team defines the work needed to achieve the business goal. It breaks the work down into manageable work packages, sometimes referred to as activities. The duration of time it takes to perform these work packages is estimated which ultimately helps to formulate our budget. The stakeholders will have to review and approve the WBS, the budget, and the schedule that gets produced. All this activity brings a greater understanding of the strategic business goal of the project.

With the Communication plan the project determines what types of communication would be required including status reports, Business Requirements documents, Functional Requirement documents, Project Plan, Project Schedule, Financial Communications, and as you can see, the forms and types of communication are many (Westland, 2006).

Many of these types of communication were determined by utilizing other documents such as the Stakeholder Register, the Charter and Scope, as well as the project management plan.

Projects can develop what is commonly known as a Project Management Plan (PMP). The PMP helps put all the relevant structure under one document; it helps us to define how we were going to communicate; manage certain events in the project such as change management, and risks: Verzuh points out that the Change Management Plan should be tailored to fit your specific function (Verzuh, 2009). And he’s right because it is not one size fits all in Project Management.

PM’s should carry out team building activities to help determine and understand team member styles of communication such as by email, phone, types of reports, texting; this allows managers to plan their communications with understanding towards relationships and cultural differences. Listening is always an important part of communication. Both active and passive listening techniques give the user awareness of problem areas, management strategies for conflict and negotiations, decision making, and problem resolution.

What happens if you ignore project communications? You do so at your own risk. As stated earlier, many projects fail due to poor communications. Poor communications could be the result of weak leadership. Not wanting to be the bearer of bad news you will hope the issue goes away. Of course it never does go away. The issue just becomes worse until when you finally decide you need to tell upper management, it’s too late to solve the issue except at tremendous cost of time and money. You, as the PM, look bad because it’s your job to raise these issues so that can be solved; obviously the earlier the better. Part of your job is to solve these problems. Being the bearer of bad news comes with the job. The PM cannot be afraid to raise the red flag when a management decision is the only way to resolve the issue.

One area of communication the PM should consider is with the key roles of members of the project. Would your Business Systems Analyst be able to connect with business stakeholders? Can the Tech Lead deal with outside vendors in communicating technical requirements? Good salespeople learn early on that they can land a sale if they bring in a Subject Matter Expert (SME) to talk with the customer. It’s not like the sales person, or PM, doesn’t have the technical know-how; it’s that the business stakeholder, or customer, will have a tendency to believe the SME over the PM or sales person. The PM has to realize that if what it takes is the SME talking with the stakeholder to get the issue resolved, so be it. True leadership never lets their ego get in the way.

Political and cultural awareness

Politics are inevitable in projects due to the variety of backgrounds, and expectations of the people involved with a project. Skillful use of politics and power helps the PM to bring the project to a successful end. Ignoring or avoiding project politics and incorrect use of power can mean trouble in managing projects. Because PM’s operate globally in many projects, and many projects operate with a mix of cultures they are expected to be to handle a multitude of different situations. By being appreciative and make the most of cultural differences, the PM is more likely to create an atmosphere of mutual trust and a highly performing atmosphere. Cultural differences are not just individual; they can be corporate in nature and may involve internal and external stakeholders. One way to manage cultural variety is getting to know the various team members and developing good communication plan goes a long way towards reaching that goal. Culture behavioral includes those behaviors and expectations that occur outside of geography, ethnicity, or language differences. Culture can either slow or increase the speed of working, decision-making process, and the urge to act without appropriate planning or permission. Conflict and stress can occur in some organizations as a result of these differences unless addressed appropriately (Kerzner, 2001).

Politics, handled effectively, can help smooth the road in a project. Depending on the level in the hierarchy your sponsor has can be the difference between moving forward with the tools and the authority needed or finding brick walls in front of you. Having a sponsor of equal footing within the hierarchy of the organization with other department managers makes bringing in the big gun easier if needed. Having upper management support certainly helps to remove a lot of political obstacles as it gives greater authority to the PM. If the CEO of the company is supporting your project everyone in the company knows it and will usually bend over backwards to ensure you get what you need to reach the project goal.

Negotiation

Negotiation is a strategy of consulting with various parties of shared interests with a view toward reaching an agreement. Negotiation is an important part of project management and if done well, increases the chances of project success. The following skills and behaviors are useful in negotiating successfully: Analyzing the situation, and differentiating wants and needs. By focusing on the interests and issues rather than on positions you stand a chance of concluding successful negotiations. Be realistic when negotiating: ask high and offer low. When conceding, make it sound like a really valuable concession, don’t just hand it to them. The negotiations should always be a win-win proposition (Katz, 2009).

Influencing

Influencing is a method of distributing power by relying on your interpersonal skills to get others to move towards common goals. The PM should always lead by example, and follow through with commitments. Do what you promise to do, always. Clarify how decisions will be made in the project or when considering an issue or conflict. Use a flexible interpersonal style and adjust the style to the audience. Apply your power skillfully and cautiously. Think of long-term collaboration or effects on the project.

Decision Making Styles

There are four basic decision styles normally used by PM’s: command, consultation, consensus, and coin flip (random). There are four major factors that affect the decision style: time constraints, trust, quality, and acceptance. PM’s may make decisions individually, or they may involve the project team in the decision-making process. PM’s and project teams use a decision-making model or process such as the six-phase decision model (PMBOK, 2013):

•    Problem Definition; Fully explore, clarify, and define the problem.
•    Problem Solution Generation: Prolong the new idea-generating process by brainstorming multiple solutions and discouraging premature decisions.
•    Ideas to Action: Define evaluation criteria, rate pros and cons of alternatives, select best solution.
•    Solution Action Planning: Involve key participants to gain acceptance and commitment to making the solution work.
•    Solution Evaluation Planning: Perform post-implementation analysis, evaluation, and lessons learned.
•    Evaluation of the Outcome and Process: Evaluate how well the problem was solved or project goals were achieved (extension of previous phase).

Trust

The ability to build trust across the project team and other key stakeholders is a critical component in team leadership. Trust is connected to cooperation, information sharing, and problem resolution. Without trust it is near impossible to establish the positive relationships necessary between the various stakeholders engaged in the project. When trust is compromised, relationships deteriorate, people disengage, and collaboration becomes near impossible. Some actions PM’s can take to help build trust (Verzuh, 2012):

1.    Engage in open and direct communications to resolve problems.
2.    Keep all stakeholders informed, especially when fulfilling commitments is at risk.
3.    Spend time directly engaged with the team asking non-assumptive questions to gain a better understanding of the situations affecting the team.
4.    Be direct and explicit about what you need or expect.
5.    Do not withhold information out of a fear of being wrong, be willing to share information admitting you may be wrong.
6.    Be open to innovation and address any issues or concerns in an upfront manner.
7.    Look beyond your own interests.
8.    Demonstrate a true concern for others and avoid engaging in non-productive pursuits detrimental to the project or others.

Conflict

Conflict is inevitable in a project environment. Incongruent requirements, competition for resources, breakdowns in communications, and many other factors could become sources of conflict. Within a project’s environment, conflict may yield dysfunctional outcomes. However, if actively managed, conflicts can actually help the team arrive at a better solution. The PM must be able to identify the causes for conflict and then actively manage the conflict thus minimizing potential negative impacts. The project team is then able to deliver better solutions and increase the probability of project success. PM’s have to develop the skills and experience necessary to effectively manage to the situation. Managing conflict in a projects involves building trust with all involved parties early in the project; being open and honest, and to seek a positive resolution to the situation causing the conflict. PM’s make every effort to establish a collaborative approach among the team members to achieve full resolution of the problems. When the collaborative approach isn’t working, the PM must then use other methods for handling the conflict; forcefulness, accommodation, avoidance, or compromise. Managing conflict is one of the biggest challenges a PM must deal with on a regular basis. It requires use of all the other interpersonal skills of a PM in order to bring the conflict to a successful conclusion (Kerzner, 2001).

Coaching

Coaching helps propel the project team to higher levels of adeptness and performance. Coaching is about helping people realize their abilities through enablement and growth. It aids team members in enhancing their skills that could lead to project success. Coaching can take many forms and styles. In many instances, informal training is used to increase technical skills. Most companies expect that a minimal amount of coaching should be used since they think they’re buying the expertise already. Most coaching happens in one-on-one situations of the moment and the PM needs to know when to apply it.

Conclusion

The PM must reach deep into their experiences and training in order to effectively lead. PM’s are very unique people, but they’re not born leaders; they have to learn and experience it in order to practice it effectively. They’re expected to bring the project to a successful conclusion while meeting the needs of the business. They’re expected to bring the project to a successful conclusion on time and within budget. As stated earlier, the expectation levels are pretty high and the pressure can be extreme. It takes a special kind of leader to bring together an idea and make it all work together. PM’s are the boss of no one; yet are expected to get people to do what needs to be done and are held responsible if they don’t succeed. They have to bring together a group of people who have likely never worked together before and make it so they are a well-oiled machine working together. Depending on the size and nature of the project, that could be a lot to ask of any one individual. But by putting the right person with the right project one can expect that it will end successfully. That person needs to have experience in many different facets of people and technical know-how as well as a healthy amount of business acumen. Without these the PM as a leader will likely fail. With them, they can go far.

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