There are different styles of leadership and they can (nearly) all be good.
1. Be Authentic
The important thing is to be yourself: know your own personality so that you can be authentic in the way you engage with other people and the way you use your authority. Understand how you as an individual can best have positive impact and influence with others and try to understand how they perceive you. Always be clear in communicating your values, what you care about and what you stand for – through your behaviour as well as your words.
2. Boost Your Confidence
If you want to be a leader you have to be prepared to lead. It does require self-confidence. You have to be able to judge when to listen, when to think and when to decide. When you make decisions you need to stick with them through adversity if you are sure they are right, and to see them through. People like continuity. If at some point you conclude that you were wrong, you need to be big enough to change and to explain why. The best solution is to make the right decisions! It is more important to make good decisions than fast decisions.
3. Display Emotional Intelligence
But you can only lead if other people are prepared to follow. That means you have to win and retain their respect, not just for your position but for you as a person, for your experience, skills, and competence. A leader has to have a strong rapport with, and understanding of, the organization and the people he or she is leading: what they want, and what they will accept if they can’t have what they want. Emotional intelligence and intuition are important in forming these links.
4. Motivate and Inspire
In leadership, people and relationships are more important than tasks. Tasks do matter, but the main role of a good leader is to motivate and inspire other people to do the tasks well. You need to know how to delegate and be the leader of other leaders. The leader is the conductor of the orchestra, not the first violin. But you also need to know when to step in and take responsibility. Don’t be afraid to say ‘stop’ or ‘no’ if you think things are going wrong. And don’t let other people push you into a decision which you are not comfortable with.
5. Set the Vision
You have to set a vision. That requires a clear sense of purpose, a clear sense of direction and a clear picture of the destination. You need to be able to explain in terms that people understand and support what you want to achieve, why you want to achieve it, how you will go about it and how everyone will know when you get there. That is what I have been trying to do with Diplomatic Excellence.
6. Be a Good Communicator
Good leaders are good communicators. You have to do it all the time. It means thinking about what other people know and how they are experiencing what you are doing, especially change. It’s important to communicate in a way other people can relate to and engage with. And you have to make it easy for people to remember what you are saying: make it simple, clear and coherent.
7. Lead the Delivery
Once you’ve set the vision and engaged other people through communication, you need to lead the delivery. That’s where a clear understanding of the end goal, and metrics and evaluation to demonstrate outcomes, are important. It’s a good idea to stay ahead of the delivery curve, setting interim goals along the way which are stretching but attainable. Much of what I’ve just described in the last three points is encapsulated by Steve Radcliffe in the model he discussed at the Leadership Conference last year: future, engage, deliver.
8. Manage Your Energy
It’s important to manage your energy. Leaders are constantly on display and under scrutiny. You need to have energy in reserve so that you can manage your mood and the image you project, and have something in the tank when crises happen (as they inevitably will). Learn to recognise when you are tired or stressed, and how that makes you behave. Watch out for the signs. Learn also to recognise where your positive energy comes from and what takes it away.
9. Build the Right Team
A good leader will put a lot of effort into building the right team around him or her. You need people you trust, who are on your side, who challenge and are honest with you and whose judgement you respect. You need to be able to depend on their support when the going gets tough. Being a leader can feel lonely and exposed: so you need to have your support systems in place to help you through the harder times.
10. Trust Your Instinct
If it doesn’t feel right, the chances are it isn’t right. I’m a great believer in the power of the subconscious, given time, to steer us to the right answers. That’s why I often prefer to have a couple of discussions before taking a difficult decision, even if that slows down the process. It helps give me certainty about what I think, and it helps the wider leadership group understand each other’s point of view and build consensus. The end result is a better decision with better buy-in.
11. Make Mistakes
Finally, accept that we all make mistakes. Nobody is perfect. When you do, try to learn the lessons, but don’t be destabilized. Someone told me once: “don’t chew the cud”. Keep moving forward, be resilient, remember that things will get better. And smile.
Author
Lee Glynn is a dedicated individual with over 18 years experience & knowledge within the wonderful world of recruitment. Having held roles as a Managing Director, Non Executive Director, Director, Leader, Business Adviser, Mentor, Strategist and Trainer to the Recruitment, Staffing, Professional Industry. Lee has extensive knowledge and experience for all frameworks and business models inc (Crown Commercial Services, London Procurement Partnership, NHS Collaborative Procurement Partnership, HealthTrust Europe & NHS Shared Business Service that are used by the NHS & Private sectors. Lee Glynn is currently helping the NHS & Private hospitals reduce their Agency and permanent spend. This article has been published on Linkedin.
The outcome of a project largely depends on the behaviour of the manager as their actions will directly influence the behaviour of the team. Even with all the efforts, employees may put forth to salvage a once positive work environment, at the core of every toxic working environment is the bad manager. There are different types of managers, and each one has their own characteristics that determine how employees will react, the working environment and overall production. Five common types include:
1. Laissez-Faire
‘Laissez-Faire’, is French for leaving things to take their own course without interference. These types of managers tend to leave subordinates to get on with the work on their own and have little to no communication with them. They fail to provide regular feedback when supervising. Though this form of management may seem irresponsible, it requires a lot of trust. Highly experienced and capable employees need very little interference, as they are trusted to do the task to the best of their abilities. However, when it comes to employees with limited experience, this form of management means there will be low production value as these employees feel they do not have to do any work due to the lack of authority they have over them. It can also make these employees a lot harder to control and since work is not being done, resources, money and time are wasted, which in turn increases the costs of the project.
2. Autocratic
This form of management is most suitable for places such as the Army as it gives the manager complete power. These types of managers make all the decisions with very little or no input from the subordinates, and since they have total authority over them, employees find it hard to challenge the manager. This can create an atmosphere of fear and because of this quality of work and production may increase, however, retention rates might increase along with it, as employees may feel threatened and begin to resent their job. Nonetheless, this form of management might be suitable for employees who need close supervision as they need to be told what to do and when, but creative employees will find it hard to work in an autocratic environment.
3. Participative
This type of manager values every member of the team and listens to whatever input employees may have. However, the manager ultimately makes the final decision. This form of management will increase morale as employees make contributions towards the decision-making process and they feel that their opinions matter. With this management style, the employees easily accept changes in the company as they played a role in the process. As morale increases, production will increase along with it, making this a very effective management style.
4. Transactional
This management style is used to give out either rewards or punishments to employees depending on their performance. The manager along with the employees set goals together and agree on rewards or punishments depending on whether or not they reach their goal. The employees then follow direction and instructions set by the managers in order to achieve the goal. The manager has the power to analyze the results of the project and either give out rewards and praise the employees or train the employees depending on the outcome.
5. Transformational
This type of management is used to increase the morale of the employees and is normally used in situations where employees feel discouraged. There are high levels of communication between the manager and the subordinates to reach their goals. These leaders motivate the employees and enhance efficiency and production using communication. These types of managers delegate smaller tasks to smaller teams and focus on the big picture to achieve their overall goals.
Conclusion
There are many different types of managers, and some are used specifically to adapt to certain situations. Some management styles are more effective than others however it depends on the type of employees they are supervising, the task at hand, and the goals that are set.
Are you stuck working with a project manager who is manipulative and dishonest? If you are, you’re not alone!
Today’s workplace is a cut-throat environment with everyone trying to get ahead in some way, shape, or form. It’s no surprise that there are malicious, sneaky project managers who will do anything to get a leg up to succeed or survive, even if it means throwing you under the bus. Like a clever politician, these project managers keep their desires hidden, but underneath a friendly and charming exterior is a highly destructive individual whose goals are power and control. Pretending to pursue the greater good, he or she adopts the mantra of “company first” with a fervency that inspires admiration and respect, and most people accept his or hers claims of a selfless pursuit of noble causes.
Regardless of your industry, profession, experience level or company, these manipulative people exist and, if given the right opportunity, they can ruin your reputation and career prospects. They’ll tell you that the entire team hates you, thinks you’re arrogant, stupid, or incompetent, and attempt to manipulate you into believing that their opinions are objective facts. A study published in the Journal of Applied Psychology called it “social undermining” and “bottom line mentality.”
“According to a recent survey, roughly 90% of folks who read this post are presently working with at least one person who, mentally, would be described as a manipulator”.
Proving yourself in a new organization is hard enough. When someone manipulates and lies about you, it can hurt your relationships, your reputation, and your career. Luckily, Project Journal has 3 tips for effectively dealing with this workplace danger.
1. Don’t Ignore Your Gut
I should’ve seen it coming. Unfortunately, there isn’t a clear-cut answer to the question “Friend or foe.” If you find yourself putting up your guard around a co-worker, you might wonder if you’re imagining things and being paranoid? Well, maybe you are, but under no circumstances should you ignore your feeling. From experience, this is often the very first sign of trouble. Weak leaders sometimes resort to emotional deceit as a weapon for getting things done. Try to consider facts objectively. Manipulation is normally felt, rather than heard or seen, so you must listen to your gut.
What makes you mistrust this person? Do they constantly gossip? If so, be careful as those who gossip to you, will probably be doing the same about you too and like Mom always said, “If you don’t have anything nice to say, don’t say anything at all.” Plus, you don’t want to get caught up in the drama when people find out about this control freak’s gossiping.
Trust that you will be thrown under the bus when “stuff” hits the fan. If you’re still unsure, you should run their behaviour by objective people you trust. As trust is built on the foundations of a good relationship, instead of basing trust on someone’s words, observe their deeds.
2. Dealing with a Bad Apple
There’s a lot to be said for the old saying, “One bad apple can spoil the whole barrel.” Not only is that true for fruit, but it holds a lot of merit in the work environment. Rude behavior is contagious. Toxic manipulative employees have an unhealthy ripple effect that harms co-workers, managers, and subordinates alike. They lack positive personality traits, such as genuine concern for others, a generous and understanding nature, a desire to teach and encourage, a desire to have straightforward dealings with others. They dwell in a very dark place lit only by their own ambition.
“It takes just one malicious employee among the ranks to wreak havoc on your team’s culture.”
Healthy human interactions are not dominated by manipulation. If you feel you can’t trust them, don’t. Manipulators do not communicate openly. Instead, they resort to flattery or play the victim to gain your trust and sympathy. Through artful, indirect and devious methods, they influence and control others and have a fair amount of social support, most likely because no one wants to be on their bad side. But that doesn’t mean their behavior isn’t harmful.
Your priority in this situation must be to protect your professional standing. Begin documenting every instance of destructive behavior and take it to a higher authority. When a co-worker starts manipulating you and ignoring the behavior doesn’t work, distance yourself, if possible and keep all correspondences. When colleagues try to sabotage you, they might tell you lies to cause you to make mistakes. The more you cover yourself, the less you have to worry about. Change your passwords, shut down your computer when you leave your desk, and keep sensitive documents under lock and key. Remember to “choose your words carefully when sending emails so that things you write can’t come back to bite you. Unfortunately, if you lose your cool, you will be in danger of looking undignified.”
“When you know what a man wants you know who he is, and how to move him.”
’- George R.R. Martin, A Storm of Swords
It can be tempting to excuse the antagonistic worker who seems zealous about his job, but clearly, those employees may be undermining the entire workforce. Being direct lets the other person know you’re aware of their manipulative behavior, and in some cases, that may be enough to nip it in the bud. If you stay out of their world of negativity, you will be a much more difficult target for their manipulation.
3. Counteracting Sabotage
Manipulators are blind to the serious defects in their character, but keenly aware of the slightest weakness or imperfection in others. They are judgmental, suspicious, demanding and calculating, all negative personality characteristics. Even their outward charm is cold and calculated. Before you can deal with the situation, you need to understand the impact.
Is it a small lie with little effect? Is it a big lie that requires damage control or even legal action? Consider how others might view the situation. Although it may be difficult, the best choice might be simply to move on as the people who make it in the long-term are the ones who are honest, hardworking and able to maintain their professionalism.
“According to a recent Wall Street Journal article, workplace sabotage is on the rise in this difficult economy.”
If you choose to directly address the situation. It is critical to use neutral language and tone of voice. Do not stoop to their level, it is important to keep your integrity. Consider having witnesses to your conversation so it’s not your word against theirs.
Your final action can be accepting an apology and moving on, or it can be reporting the lie to a higher authority. In extreme cases, it can be making a formal complaint or hiring an attorney. It’s smart to search for job postings, even when you have no intention to quit. Obviously, you don’t want to let one bad apple lead to your resignation but, if nothing else, knowing you have options can help you feel more empowered and in control of the situation.
Other signs sabotage may be in the works: You don’t receive a promotion or responsibilities you logically should have gotten; cold or averse behavior from management that is (seemingly) out of nowhere; sudden and unexplained alienation by individual co-workers or even entire cliques; or unwarranted and continuous kind behavior from someone that was formerly aloof, ambivalent or even aggressive.
Manipulative behavior is widespread, but fortunately, it doesn’t exist everywhere. Do you have manipulative co-workers? How do you dodge their requests and still manage to pave a successful career path? Tell us what you think?
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We all know that the more power you have, the better you are able to get the job completed. The problem is most project managers have lots of responsibility, but hardly any authority and since most projects exist outside core business structures, they are forced to develop other methods of influence.
One unspoken evil that is often ignored on project management training courses is the politics of project management. While most of us view politics with disgust; there is no refuting that effective project managers are often seen as those who are equipped and able to employ fitting political strategies to further their project goals.
“In a Perfect World the Best Workers Would Be Promoted on Merit Alone and the Best Ideas Would Be Adopted Regardless of Personal Interest – but We Do Not Live in Utopia”
Have you ever included ‘office politics’ as a risk on your risk register? Probably not. Though, consider the potential implications of ignoring the ugly stepchild of project management?
“The Objective of Office Politics Is to Manipulate a Situation in Order to Achieve an Outcome That Will Benefit One Individual or Group at the Expense of Other Individuals or Groups.”
While it is unlikely that ‘office politics’ would be listed directly as a risk on your risk register, it is quite likely that one or more of the outcomes of it would. As a result, if you want to survive and prosper in the real world you need to combine good work with smart politics to ensure your own success and that of your projects. The biggest mistake a project manager can make is to assume that politics in project management doesn’t exist. After all, politics is human nature and has played an integral part in history since the dawn of civilization.
In a group where working interactions are fraught with tension and individuals have their own personal agendas or want to be “top dog” personal conflicts will often get in the way of the project aims. Issues between members of the team become the over-riding concern both for the individuals afraid and sometimes even the project manager. Meetings can consist of jostling for power or simply trying to justify your position and when that happens progress on the project will undoubtedly suffer.
For most project managers, playing politics is a form of slow, soul-destroying torture where logic, self-control, transparency and trustworthiness are replaced by deception, concealment, and sabotage. However, ignoring the external and internal politics surrounding your project or organization is dangerous. Successful project managers need to understand organizational politics and how to make them work for project success.
In the case of project politics you can use these key techniques in a constructive manner:
Carefully Manage Your Own Conduct
The first rule is to at all times act in a way that commands respect and beyond that, respect others. That means not gossiping, spreading rumors or getting sucked into interpersonal conflicts and arguments. Maintain your honesty!
Be positive as a positive outlook is a choice that you can always make and remain professional.
Be confident and firm but not hostile and make sure you take organizational perspectives, not a personal one when voicing objections or giving criticism.
Always assume things will be disclosed, so don’t rely on confidentiality.
Over time you will learn what works in your organization’s culture and what doesn’t. Try to watch other people and identify successful behaviors that you can model to navigate the political minefield.
Review the Organization Chart
Sit back and watch for a while. Identify the real influencers, those who are respected, champions, those who have authority but don’t use it, the mentors and last but not least the true brains behind the organization. Then re-map the organization chart in terms of political influence as politics will often bypass the formal organization chart.
Understand the Social Network
Once you know who’s who in the organization, you have to understand the social networks. This involves identifying who gets along with whom, groups or cliques that have formed and ongoing interpersonal conflicts. Over time you will learn who has the most trouble getting along with others and the basis for the interrelationship whether it be friendship, respect or manipulation, including how the influence flows between all parties.
Build Good Relationships
Now you need to build multiple networks but avoid aligning yourself with one group or another this way you can keep your finger on the pulse of the organization.
Don’t be afraid of politically powerful people and instead, develop relationships that cross the formal hierarchy in all directions.
Build your relationships on trust and respect and avoid empty flattery.
Use Your Social Network
You will need to learn to use your social network to stay clear of negative politics. You can do this through positive political action.
Use your network to gain access to information, build visibility of your achievements and improve difficult relationships.
Attract opportunities where you can shine and seek out ways to make yourself, your team and your boss look good.
Counteract Negative Play
“The Expression, Keep Your Friends Close and Your Enemies Closer” Couldn’t Be Any Truer When It Comes to Office Politics.”
Your mapping of the organization will help you to identify those people who use others for their own political purposes, and not for the common good. Know that these people typically have low self-worth (that’s why they rely on destructive politicking to get ahead). Always be very careful what you say to them. Understand what motivates them, their goals, and how to avoid or counter the impact of their politics
Remember loyalty is not a reliable factor in the workplace!
“It is easy to become a target if you’re ambitious or if you strive for change. One of the biggest mistakes we make in our career is to assume that everyone likes progress. This is not true’Å —’Å many are content with the status quo and will defend it with their life.”
Projects are rarely easy and office politics can compound other sorts of problems that arise so they need to be dealt with swiftly and firmly.
Some senior members of staff see procurement expenses as a necessary evil and overlook any efficiency improvement methods for this sector. This is not an uncommon way of thinking, as procurement and the supply chain is a massive part of any company’s costs and can total up to 70% of an organisation’s total spend.
These managers are missing out on effective changes that can shift procurement to a significant supplier of growth and profit for any business.
Follow these 7 steps to improve your procurement team.
1. Embrace Change
It’s so important for procurement managers to embrace and invest in technology changes currently taking place in the industry.
Managers should hold a full assessment of deficiencies in their processors and search for technology that meets the needs of the business, rather than fitting the business around new technology. For example, if you are having trouble with historic and retrospective analysis, invest in predictive analytics.
2. Consider Outsourcing
Outsourcing may not be an avenue you have ever considered in regards to procurement, even though it happens all the time with HR and IT departments. Even so, many procurement managers are still apprehensive to apply it to their supply chain.
Outsourcing certain aspects of procurement can be a way of improving existing systems and processors rather than a cost reduction measure. It can also allow your business to access highly skilled procurement experts when it would be counter-productive to hire someone internally. These individuals are often very focused on delivering results, and if you plan outsourcing correctly, the increase in productivity will outweigh the costs of outsourcing.
If a procurement manager feels like there are areas in the business where costs can be cut, it might be worth bringing in a consultant. There are also outsourcing services that offer expert domain knowledge and vendor contact opportunities.
3. Ensure Your Supply Chain Is Properly Staffed
The efficiency of a supply chain is very much dependent on the quality of its staff. As a procurement manager, it’s important to ensure that the supply chain is staffed with highly skilled individuals, and that these staff have regular access to education and training.
Procurement professionals will be tasked with a wide variety of roles, including:
Planning delivery timetables
Ensuring stores have enough stock
Overseeing the arrival of shipments
When hiring employees, it’s important to ensure they have skills such as communication, attention to detail and teamwork. They must also be willing to learn and improve throughout their career.
4. Create Risk Management Policies
One of the key ways of making a procurement team more efficient is to prepare for the unexpected. Procurement managers should establish proper levels of control to manage risk and ensure that all these policies are periodically reviewed. These risk management fail safes should include:
The financial impact a risk might have
The likelihood to the risk occurring
A priority list for managing risks
All staff members should be aware of these risks, and the processes in place if the risks occur. For example, if a major supplier goes out of business, your staff should be aware that there is a process for contacting secondary suppliers so you are never left without stock.
5. Establish Relationships with Key Suppliers
Staff who deal with suppliers on a daily basis need to have brilliant relationship building skills. Procurement employees need to work closely with suppliers to try and keep communication consistent and amicable, even if issues arise at either end.
Suppliers can help procurement teams reach their performance goals, and they are often very knowledgeable, with expertise to share about their products. Procurement teams can learn a lot from them, like the audience, seasonality and key selling points of products; it’s worth working on these relationships.
6. Stick to Ambitious but Manageable Targets
If a team has a tough but not unattainable goal to work towards they can prioritise, measure and focus on their tasks with a clear end in mind. This helps staff members feel more motivated and gives meaning to their work.
There will also be a sense of achievement when the targets are met, bringing your team closer together and improving teamwork.
7. Efficiency Is Attainable
The creation of a brilliant supply chain depends on your company’s understanding of procurement, along with the procurement team’s estimation of the total costs associated with each supplier and their contacts.
With help from technology, outsourcing, a great team and strong relationship building skills, your procurement team should improve its efficiency and business impact.
If you want to make enemies, try to change something. Change, no matter what scale it is on, can be a source of stress and anxiety for many. However, it’s common for change management practitioners to view resistance to change as an irrational barrier to progress. Another school of thought is that resistance to change is a social process that can strengthen changes and help to eliminate undesirable change.
The fact remains that change is necessary in all organizations. But, it is the way change is initiated which can so greatly vary. It can be forced upon companies by outside forces or just come from a realization that the company may be falling behind the times. In this way, change management might be quite beneficial to an organization. Organizations that have learned how to transform themselves through effective leadership and strategic control are more likely to survive and prosper. The dilemma is that most people hate change and love it at the same time and what they really want is for things to remain the same but get better.
The good news is that God has a plan for your life to prosper. If we trust in God and allow the change to grow us to become more like Jesus Christ in how we respond and act, then we are promised that all things will work together for good for those who love Him and keep His commandments!
The following thought-provoking quotes relate to change management including resistance to change, acceptance and change strategy.
“One of the reasons so many celebrities keep going in and out of rehab is that they leave out the critical element to lasting change: God.” – Unknown
“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things.” — Niccolo Machiavelli
“Change has its enemies.” — Robert Kennedy
“He who rejects change is the architect of decay.” — Harold Wilson
“Change is not made without inconvenience, even from worse to better.” — Samuel Johnson
“The world hates change, yet it is the only thing that has brought progress.” — Charles Kettering
“God supplies everything you need for successful change, and when you make changes with his help, it says changed.” – Unknown
“It is always easier to talk about change than to make it.” — Alvin Toffler
“It must be considered that there is nothing more difficult to carry out nor more doubtful of success nor more dangerous to handle than to initiate a new order of things.” — Machiavelli
“The path of least resistance is the path of the loser.” — H. G. Wells
“When you feel weak in the face of change, God is omnipotent, or all-powerful. “If God is for us, who can be against us?” the Bible says. (Romans 8:31, NIV) Knowing the invincible God is on your side gives you tremendous confidence.” – Unknown
“Paralyze resistance with persistence.” — Woody Hayes
“Culture does not change because we desire to change it. Culture changes when the organization is transformed – the culture reflects the realities of people working together every day.” — Frances Hesselbein
“The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic – Peter Drucker
“The rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed up even more in the next few decades.” — John P. Kotter
“Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers, and business.” — Mark Sanborn
“If you want to make enemies, try to change something.” — Woodrow Wilson
Don’t make change harder than it has to be. Do it the right way. Ask God for help.
Over the past decade business procurement has experienced rapid technological upheaval that, in the main, has made life easier for everyone involved.
The first ever Global Procurement Technology Summit was held in March 2016. It shows the emphasis procurement is now putting on understanding and utilising new technologies, and that it’s clearly a huge talking point for professionals across the world.
Looking in greater detail: which technology has been responsible and what has the effect been on procurement and buying professionals?
1. More informed decisions are being made
The digitalisation of procurement processes and integration of data-sharing across buyer behaviour, ratings and history of purchases over extended periods of time, has made for smarter and more informed decisions.
Despite the greater insight into decision-making, a study of US procurement professionals still revealed accurate forecasting to be the biggest challenge, something that’s possibly down to the rise in budget responsibilities over the last ten years.
The Coupa ‘Top 5: Constants and Change in Cloud Procurement’ report revealed that in 2003, budgets were reported as an average of $31m, compared to $100m in 2013.
2. Response times have drastically reduced
Procurement solutions are now quicker and easier than ever thanks to new marketplace technologies.
Buyers can take advantage of online purchasing possibilities, using websites like Amazon to source, purchase and arrange delivery of items.
The speed of procurement reflects the new speed in which consumerism moves ’’ the integration of digital mediums with online shopping has made the process of deliberation through to transaction much easier, a trend which has been reflected in the world of procurement.
3. Integration has brought its own problems
Technological integration has created many positives for procurement, but it’s also created challenges.
Millennials will make up 40% of the workforce by 2020, which is great for improving current procurement solutions as younger generations have higher expectations for technology and are early adapters.
However, the average age of procurement professionals in the UK is currently 44 – much older than the next generation of workers, who fully understand the capabilities of technology, and who will be easier to train and able to work with increased speed and accuracy.
The gap will close in the coming years, but procurement faces a struggle as older workers need to ensure their skills are relevant to the changing world around them.
Additionally, Hays’ ‘Procurement Salary Guide’ revealed that demand for procurement professionals has increased at all levels within the public sector, pushing salaries up. This demand is the result of a squeeze on public finances and attempts to cut costs following the slowdown in the economy.
4, Technology and the future of procurement
To conclude, technology is clearly a powerful enabler that’s here to stay. Plenty of companies are now seeing the importance of procurement technology as a means to improve their bottom lines, which was reflected in the inaugural Global Procurement Technology Summit earlier this year.
Integration of contract management, risk management and supplier lifecycle systems through investment in improved systems with added capabilities, has ensured more accurate sourcing is possible and due to the skills involved in running these systems, has driven salaries up.
Sophia Chapman is a guest contributor from Portfolio Procurement, expert recruiters in the compensation, benefit and reward sector.
Everyone wants to be a success. I have never met anyone who purposely set out to be a failure. Undoubtedly, this is why so much has been written on the topic “How to be a Success” and why these books are so popular.
However, The New Day daily newspaper closed just nine weeks after launching, Trinity Mirror confirms.
The New Day was a British compact daily newspaper published by Trinity Mirror, launched on 29 February 2016. It was aimed at a middle-aged female audience and was politically neutral. The editor, Alison Phillips, intended readers to get through the newspaper in under 30 minutes.
The new paper was initially available for 25p for two weeks, then rising to 50p. Two million copies of the New Day was given away on the first day, as the turquoise-branded upstart attempted to spark a revival in readership and gain ground against the mid-market Mail and Express offline.
Arrogance about their own ability to rescue a situation can prevent leaders from changing course
The New Day had no leading articles, no website, and columnists and believed it could successfully drag readers back to print? The sad truth is that it did not attract enough attention and failed to create a daily newspaper that could co-exist in the digital age, especially as tabloids and broadsheets continue to suffer a significant circulation decline.
Shareholders at Trinity Mirror’s annual meeting called the failure “demoralising”. Analysts said it was “embarrassing”.
Assume for a moment that the leaders of The New Day had no idea about the changes swamping the print media as a result of the digital revolution, and carelessly decided to invest millions into the venture without undertaking a risk assessment and also decided to ignore every indication that the paper was failing. That would have been embarrassing and demoralising.
However, the leaders decided to fail quickly and shut down the project they started.
Abandonment is a rare, difficult and a valuable management skill. The natural instinct of most people is to persist, particularly when the project is a collective commitment, as most corporate ventures are, but then it becomes even harder to hit the red “stop” button.
The New Day’s editor, Alison Phillips, said in a statement posted on Facebook that the team “tried everything we could” but were unable to reach the figures needed to make it work financially.
We dread failure. We don’t like talking about it. Some of us will internalise and rethink our failures in our heads time and time again. Others will swipe them away, moving onto the next thing immediately. In the public, we prefer sweeping our failures under the rug, silently, while nobody is watching.
While this might save our feelings momentarily, this is not the way learn and innovate.
According to Albert Savoia – ex Googler and innovation expert, most project innovations will fail.
“Most New Things Will Fail – Even If They Are Flawlessly Executed.” – Albert Savoia – Ex Googler
Does this mean you should stay away from trying new things (and failing in the process)? Certainly not. It just means you need to accept failure will inevitably be a part of the process.
In most cases, however, a combination of arrogance about personal ability to rescue the situation and blindness to the lengthening odds of success stops leaders from changing course.
The natural lifespan of most projects is finite, and the rarities are companies that survive.
The Art of “strategic Quitting” Will Become More Important as Careers Fragment and Companies Exert More Discipline
So if an idea is doomed, organisations usually treat the person who pulled the plug early on as a hero right? Not exactly, it’s complicated.
Roy Greenslade, Professor of Journalism at City University London, wrote a report in The Guardian explaining how The New Day had failed. He pinpointed the error of marketing a newspaper to people who inherently despise newspapers, and the short period of time between the announcement and launch, leaving no time to advertise the product. It was also published early in the evening thus missing out on late-night breaking news such as Leicester City F.C.’s shock win of the Premier League.
“Nothing so powerfully concentrates a man’s mind on innovation as the knowledge that the present product or service will be abandoned in the foreseeable future.” – Peter Drucker
The first thing the Bible wants to say is that all of us have failed. None is without failure. If you think you haven’t failed, two things are true of you. One is you are blind to your failures and the other is you probably haven’t taken enough risks to try enough hard things so that you would be aware of your failures.
Peter Drucker’s influence on business management is legendary. Peter realised that “systematic abandonment” a regular, unsentimental spring-clean is critical to the fostering of new business ideas.
Conclusion, every organization needs to have a regular “rummage sale” to determine which products, services, and programs are worth keeping and which ones must be abandoned.
The Nigerian construction industry is mostly concerned with the development and provision of projects such as roads, bridges, railways, residential and commercial real estates, and the maintenance necessary for the socio-economic developments contributes immensely to the Nigerian economic growth (Bureau of Statistics, 2015). Butcher and demmers (2003) described projects as an idea which begins and ends by filling a need. However, a project fails when its idea ends without meeting the needs and expectations of its stakeholders.
Nigeria Has Become the World’s Junk – Yard of Abandoned and Failed Projects worth Billions of Naira!
Hanachor (2013), revealed that projects form part of the basis for assessing a country’s development. However, a damming report from the Abandoned Projects Audit Commission which was set up by the Ex-President Goodluck Jonathan in 2011 revealed that 11,886 federal government projects were abandoned in the past 40 years across Nigerian (Abimbola, 2012). This confirmed the assertion by Osemenan (1987) “that Nigeria has become the world’s junk –yard of abandoned and failed projects worth billions of naira”.
Abandoned projects including building and other civil engineering infrastructure development projects now litter the whole of Nigeria.
Physical projects do not only provide the means of making life more meaningful for members of the community where the projects are located, successful projects also result in empowerment and collective action towards self improvement (Hanachor, 2013).
This Issue of Abandonment Has Been Left Without Adequate Attention for Too Long, and Is Now Having a Multiplier Effect on the Construction Industry in Particular and the Nigeria’s National Economy as a Whole. (Kotngora, 1993)
PROJECT FAILURE
Project Failure might mean a different thing to different stakeholders. A project that seemed successful to one stakeholder may be a total failure to another (Toor and Ogunlana, 2008). Some stakeholders, more especially the project users and some private owners, think of failed projects as a situation where a completed building project collapsed, a situation where by a completed dam project stopped working after few days of completion, or a completed road project that broke down after few months of completion. Other experienced stakeholders, such as engineers and architects conform to the iron triangle by Atkinson (1999) which states that the most strategically important measures of project failure are “time overrun”, “cost overrun”, and “poor quality”.
Turner (1993) noted that a project fails when the project specifications are not delivered within budget and on time;the project fails to achieve its stated business purpose; the project did not meet the pre-stated objectives; the project fails to satisfy the needs of the project team and supporters; and the project fails to satisfy the need of the users and other stakeholders. Lim and Mohamed (1999) cited in Toor and Ogunlana (2009) clarified that there are two possible view points to project failure namely; the macro-level and the micro-level. They further explained that the macro view point reviews if the original objectives and concepts of the project was met. Usually the end users and the project beneficiaries are the ones looking at the project failure from the macro view point, where as the project design team, the consultants, contractors, and suppliers review projects from a micro view point focusing on time of delivery, budget, and poor quality.
In the early 1990s, the failure as well as the success of any project was determined by the project duration, monetary cost, and the performance of the project (Idrus, Sodangi, and Husin, 2011). Belout and Gauvrean (2004), also confirmed that the project management triangle based on schedule, cost, and technical performance is the most useful in determining the failure of a project. Moreover, a project is considered as an achievement of specific objectives, which involves series of activities and tasks which consume resources, are completed within specifications, and have a definite start and end time (Muns and Bjeirmi 1996, cited in Toor and Ogunlana, 2009). Reiss (1993) in his suggestion stated that a project is a human activity that achieves a clear objective against a time scale. Wright (1997) taking the view of clients, suggested that time and budget are the only two important parameters of a project which determines if a project is successful or failed. Nevertheless, many other writers such as Turner, Morris and Hough, wateridge, dewit, McCoy, Pinto and Slevin, saarinen and Ballantine all cited in Atkinson (1999), agreed that cost, time, and quality are all success as well as failure criteria of a project, and are not to be usedexclusively.
FACTORS OF PROJECT FAILURE
Cookie-Davies (2002) stated the difference between the success criteria and the failure factors. Hestated that failure factors are those which contributed towards the failure of a project while success criteria are the measures by which the failure of a project will be judged. The factors constituting the failure criteria are commonly referred to as the key performance indicators (KPIs).
Timeand Cost Overrun
The time factor of project failure cannot be discussed without mentioning cost. This is because the time spent on construction projects has a cost attached to it. Al-Khali and Al-Ghafly, (1999); Aibinu and Jagboro, (2002) confirmed that time overrun in construction projects do not only result in cost overrun and poor quality but also result in greater disputes, abandonment and protracted litigation by the project parties. Therefore, focus on reducing the Time overrun helps to reduce resource spent on heavy litigation processes in the construction industry (Phua and Rowlinson, 2003). Most times, the time overrun of a project does not allow resultant system and benefits of the project to be taking into consideration (Atkinson, 1999). Once a project exceeds the contract time, it does not matter anymore if the project was finally abandoned or completed at the same cost and quality specified on the original contract document, the project has failed. Furthermore, Assaf and Al-Hejji, (2006) noted that time overrun means loss of owner’s revenue due to unavailability of the commercial facilities on time, and contractors may also suffers from higher over heads, material and labour costs.
Poor quality/Technical Performance
The word “Performance” has a different meaning which depends on the context it is being used and it can also be referred to as quality. Performance can be generally defined as effectiveness (doing the right thing), and efficiency (doing it right) (Idrus and Sodangi, 2010). Based on this definition of performance, at the project level, it simply means that a completed project meets fulfilled the stakeholder requirements in the business case.
CAUSES OF PROJECT FAILURE
A lot of research studies have investigated the reasons for project failures, and why projects continue to be described as failing despite improved management. Odeh and Baltaineh, 2002; Arain andLaw, 2003; Abdul-Rahman et al., 2006; Sambasivan and Soon, 2007; all cited in Toor and Ogunlana, 2008, pointed out the major causes of project failures as Inadequate procurement method; poor funding and availability of resources; descripancies between design and construction; lack of project management practices; and communication lapses
The contract/procurement method
A result obtained from two construction projects which were done by the same contractor but using different procurement methods showed that rework, on the design part which occurs when the activities and materials order are different from those specified on the original contract document, makes it difficult for the project to finish on the expected time (Idrus, Sodangi, and Husin, 2011). This is as a result of non-collaboration and integration between the design team, contractor, and tier suppliers. The rework on the design portion has a huge impact on project failure leading to the time overrun. The traditional method of procurement has inadequate flexibility required to facilitate late changes to the project design once the design phase of the construction project has been concluded.
Nigerian most widely used procurement method is the traditional method of procurement (design-bid-construct) which has been confirmed to be less effective to successfully delivery of a construction project (Dim and Ezeabasili, 2015). And, the world bank country procurement assessment report (2000) cited in Anigbogu and Shwarka, (2011) reported that about 50% of projects in Nigeria are dead even before they commence because they were designed to fail.
The way the construction projects are contracted, in addition to the way the contracts are delivered, contributes to the causes of projects failure. Particularly, among the methods of project contracting is lump-sum or a fixed-price contracting method, in which the contractor agrees to deliver a construction project at a fixed price. The fixed-price contract can be low-bid or not however, once the contract cost has been agreed upon the contract award, it cannot be changed. And, contractors are expected to honor and deliver the contract agreement, failure to do so can result in a breach of contract which can result in the contractor being prosecuted.
Awarding a contract to an unqualified personnel also contributes to project failures. When a contractor places more emphasis on money and the mobilization fee after a construction project has been initiated instead of getting the right workforce and skilled professionals that will execute the project. Instead the workforce chosen will often not be base on competence and required skills rather it will be based on availability. Moreover, poor strategy and planning by contractors who have overloaded with work also contributed to one of the causes of project failure.
Poor funding/Budget Planning
A lot of public projects in the Nigerian construction industry failed as a result inadequate funding, and the difference between the national annual budget and the budget actual released. Most of the Nigerian public projects are signed even before the actual release of the national budget. The difference in budget of the contracted project and the actual budget release can get the contracted company stuck as a result of inflation of prices, scarcity of construction material at the time of the budget release and mobilization to site. Also un-planned scope of work which can be as a result of the contractor working on another contract when he is called back to mobilization to start work. Moreover, poor budget planning is a regular mistake made by some contractors by not undertaking feasibility assessments before starting the design. The construction project should be planned according to the available resources and not according to the unrealistic expectations a client has in mind.
Discrepancies Between the Design and Construction
Limited collaboration between the contractors, engineers, and the architect results in discrepancies between the project designs and construction on site, and further leads to rework. Changes on a project designs, and changing to the scope of work in the middle of construction processes on site can be dangerous, and can lead to time overrun, increase in cost, and most of all can lead to abandonment. Moreover, many cases have been seen where the designs from the architects are not buildable on site, whileIn some cases, most contractors are unable to adequately specify the scope of work for the construction processes on site. Therefore any default on the design by the architect can be an opportunity for the contractor to make more money which might cause the project duration to exceed the time specified on the contract document.
RESEARCH METHODOLOGY
This research starts with a general reasoning or theory which says that the major cases of project failure in the Nigerian construction industry are defined based on time overrun and cost overrun. The findings from the data analysis will help on the decision to accept the theory or not. The research data was collected from the progress report for the month ending of October, 2015 published by the Nigeria of Federal Ministry of works on thirty-nine on-going highway construction projects at the South-South geopolitical zone. The table 1 below shows the information on the data collected which comprises of the project title, contract Number, project description, the contractor that was awarded the projects, the date of project commencement, date of completion and the extended date if any. The scheduled time for each project was specified as follows: project commencement date labeled as “a”,project completion date labeled as “b”, and the extended date labeled as “c”.
Table 1: The analyzed data on the highway project at the South-South zone in Nigeria.
DATA ANALYSIS
The data analysis was done with the use of Microsoft excel. The analysis started by obtaining the number of days between the date of commencement of each project and the date of completion to show the duration of each highway project. And, the number of days between the project completion date and the extension date showed the time-overrun. The project duration and the extended days were obtained with the use of NETWORKDAYS function in Microsoft Excel which calculates the number of working days between two dates excluding weekends and any dates identified as holidays.
The standard deviation between the specified project duration for each highway projects and the extended days was calculated to obtain the extent to which each highway project contract failed on its time of delivery. This was denoted as the degree of failure. The table 1 above showed the projects ranking which was done based on the degree of failure of all the highway projects. The highway projects that were ranked from one to sixteen have low degree of failure and are represented with green color, while the rest are those with high degree of failure and are represented with red color.
FINDINGS
The findings made showed that the successfully completed highway projects have no extended days or time overrun, and the successful on-going highway projects are still on schedule and have no extended days unlike the on-going highway projects that have already failed as a result of the extended dates. Other projects have been abandoned because they have exceeded the delivery date as specified on the contract document, and have no extended date of completion. Thus, no work is going on.
Figure 1: Abundance of failed highway projects at south-south zone, Nigeria.
Figure 2: On-going failed highway projects
Figure 2 above showed that 14% of highway projects are still on-going projects because they have not exceeded the original date of completion as specified on the contract document. However, they are heading towards failure because they have been given an extended date of completion which can be as a result of some critical activities running behind schedule, causing delay on the critical path network of the projects. Moreover, the other 86% completely failed because they have exceeded their completion date specified on the contract document.
Figure 3: Successful on-going highway projects
The figure 3 above showed that 63% of the successful highway projects are still on-going because they have not exceed their completion dates, and they are not yet completed. However, those on-going highway projects might end up as failed projects as a result of poor funding, discrepancy between the design and the construction on site, and conflict between the construction parties or stakeholders.
“Say what you will do, and do what you said” or “Say as you will do it, and do it as you said”
CONCLUSION AND RECOMMENDATION
The idea of knowing what a failed project is, the factors and the causes is very important in project management. Success in project management can neither be achieved nor measured without the knowledge of project failure, its factors, and causes in the Nigerian construction industries. This work has shown that project failure is as a result of exceeded time of delivery, cost overrun, and poor quality. However, the analysis was only done based on exceeded time of project delivery because of the nature of the data collected.
This work suggested a few approaches to help reduce the number of failed projects in the Nigerian construction industry if properly implemented. Firstly, Having good collaboration between the project stakeholders involved in a construction project at the early stage of project conception is most important in order to accomplish the project objectives, and deliver the project on time, within budget, and quality specified on the original contract document (Othman, 2006).
Secondly, Adopting the ISO 9000 technique which is used for quality management will also help in achieving a successful project delivery. This technique states “ say what you will do, and do what you said” or “say as you will do it, and do it as you said”. This technique is not an indication of high quality but it promotes control and consistency which leads to specialization, and improved productivity and quality. Also, adopting the principles of lean construction will help to reduce waste within the construction and stream-line activities in order to improve the on-time delivery of projects.
Thirdly, Learning from the precedent failed projects, how those projects failed, and the reason for their failures. This will help the project manager to plan and mitigate the risks of project failures in the future. And, finally, more seminars and workshops will help to educate and enlighten clients (the federal government representatives), users, contractors, engineers, and architects on what is project failure, the factors that contributes to abundant failed projects, and their causes.
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The project management landscape is changing with an increased emphasis on productivity, reporting, and information technology. A number of studies have been completed that look into the success and failure rates of projects.
Below are 15 shocking statistics that reveal how project management has changed and is performing across various industries over the last 5 years.
There is projected to be 15.7 million new project management roles to be added globally across seven project-intensive industries by 2020 reaching an economic impact of over $18 trillion, across seven project-intensive industries including Manufacturing, Finance & Insurance, Information Services, Utilities, Business Services, Oil & Gas and Construction (Project Management Institute)
75% of IT executives believe their projects are “doomed from the start. (Geneca)
The healthcare industry is projected to increase project management roles by 30%, a higher growth rate than any current project intensive industry between 2010 and 2020. (Project Management Institute)
A third of all projects were successfully completed on time and on budget over the past year. (Standish Group)
80% of “high-performing” projects are led by a certified project manager. (PricewaterhouseCoopers, Insights and Trends: Current Programme and Project Management Practices 2012)
One in six IT projects have an average cost overrun of 200%. (Harvard Business Review 2004)
44% of project managers use no software, even though PWC found that the use of commercially available PM software increases performance and satisfaction. (Pricewaterhouse Coopers)
More than 90% of organizations perform some type of project postmortem or closeout retrospective. (The Standish Group: CHAOS Research Report 2013)
On average, it takes 7 years in the profession to go from entry-level to managing large, complex projects. (ESI International: Annual Salary Survey 2013)
The average large IT project runs 45% over budget, 7% over time, and delivers 56% less value than expected. (Project Management Institute: Pulse of the Profession 2015)
Only 64% of projects meet their goals. (Project Management Institute: Pulse of the Profession 2015)
60% of companies don’t measure ROI on projects. (KPMG New Zealand: Project Management Survey 2010)
The United States economy loses $50-$150 billion per year due to failed IT projects. (Gallup Business Review)
In just a 12 month period 49% of organizations had suffered a recent project failure. In the same period only 2% of organizations reported that all of their projects achieved the desired benefits. 86% of organizations reported a shortfall of at least 25% of targeted benefits across their portfolio of projects and many organizations failed to measure benefits so they are unaware of their true status in terms of benefits realization. (KPMG – Global IT Project Management Survey 2005)
According to an IBM study, only 40% of projects meet schedule, budget and quality goals. (Harvard Business Review 2004)
If you have any other project management statistics please share them with us.
