The Project Management System
The project management system consists of seven components, as shown in Figure 1.4. If any one of these is defective, then the management of projects will suffer.

The Human System
The human system is placed at the bottom of the pyramid because it forms the foundation for everything else. A project manager must deal with all the “people issues.” These include communication, team building, conflict management and resolution, motivation, and, yes, that “dirty word” politics! The list covers only a handful of the issues that must be handled.
Dealing with people is a major function that a project manager must perform. This is partly because project managers have a lot of responsibility and (usually) very little authority (or none at all). That is almost a given in project management. So the only way to get anything done is through using people skills. These include persuasion, influence, negotiating, and sometimes just plain begging.
I can almost hear the groaning now from the techies. As a former engineer, I know that the human element is not typically one of our strong suits. In fact, some techies complain bitterly that they hate the people problems they have to deal with. To them, I suggest that they rethink their careers. They don’t want to be project managers. Or any other kind for that matter. You are not likely to be good at something you hate, and in my view, life is too short to spend doing something you hate. Also, you can’t get around it.
So if you hate dealing with people, have a heart-to-heart talk with your boss and state up-front that you don’t want to be a project manager. You would rather be a techie for the rest of your life. If that doesn’t work, change jobs! I’m serious. But then it’s your life, and your career, and you have to make your own choices.
If you are one of those individuals who don’t actually hate dealing with people, but feel that you need to improve your skills, then hang in there. Everything listed in the box in Figure 1.4 can be learned—even leadership.
Culture
Related to people issues is culture. Every organization has a culture, which is the sum total of values, beliefs, attitudes, behaviors, and traditions. In fact, one way you can tell when people are talking about culture is that they say, “We don’t do it that way around here.” Broadly speaking, there is nothing right or wrong, good or bad about cultures. But when people from different cultures interact, it often results in misunderstanding, conflict, and downright fighting. Perhaps a few examples will help. My wife and I have hosted exchange students from several different countries, for 10 months at a time,
partly because we are interested in cultures. Our first guest was a Japanese student named Yukiko. When she arrived, I asked her how to say things in Japanese. “Well, yes is hai, and no is e-a,” she said, “but we don’t like to say no very much.” At the time, I didn’t fully appreciate what she was telling me. Later I learned that the Japanese consider saying no directly to be fairly rude. For instance, I was in a Japanese restaurant one evening when a fellow customer ordered a beer by name. The waitress, who was Japanese, said, “Maybe we don’t have that kind. Maybe you’d prefer a different kind.” Now she knew very well that she did not have the beer he asked for, but she could not say so directly. She had to soften it a bit.
The “roundabout no” is very mystifying to Americans, who are used to being direct. So we sometimes get into trouble with Japanese business deals. “I thought we agreed on this,” says the American negotiator, after finding an apparent violation of what she thought was agreed to. “Oh, we agreed on this,” says her Japanese colleague. Such misunderstandings can be a serious source of conflict. My favorite experience with culture shock occurred in Malaysia. After I completed a day of teaching at Petronas, the oil company, a company driver pulled up in a van to take me to the airport. I started to get into the back seat, which is common in the United States. He looked back at me and said, “Sir, you’re kind of fat. You’d be more comfortable up here in the front.” It was all I could do to keep from laughing. Fortunately, I had done my homework and I knew that tomany people from Asian cultures being fat is not a stigma, as it is in our American “twiggy” society. It is actually a sign of affluence, because over several thousand years, only the wealthy could afford a diet that would allow them to be fat. What I found funny was to imagine my driver taking a job with a U.S. limo company and doing to some unwary person what he did to me. The person complains and the driver gets fired for insulting the customer. He is totally bewildered. “What happened?” he says, “I was only trying to be helpful.” Which he was.
Organization
Every organization must define the authority, accountability, and responsibility conferred on each member of that organization. As I mentioned previously, project managers always have a lot of responsibility and little authority. It has almost always been that way, and probably will continue.

However, there are two kinds of authority. One is to tell people what to do and expect them to do it. That one a project manager will never have. And it doesn’t matter very much in the first place. Ask any CEO of any company, “You have a lot of authority, don’t you?” The reply will be yes. Then ask, “Does your authority guarantee that people do what you want done?” The response turns to no. Then what does persuade people to do what a CEO wants? Every CEO I have asked has said, “In the end analysis, people have to want to do it, and my job is to get them to want to do it.” I call that influence.
If a CEO has to use influence to get things done, you and I can hope to do no better. That’s why you need those people skills listed at the bottom of the pyramid. The second kind of authority is decision-making authority. This one I consider a major problem for many project managers, especially when it comes to decisions to spend money. Some project managers can spend no more than $100 without approvals. Yet they have project budgets of hundreds of thousands of dollars. They are being given mixed messages by their companies. The first message tells them, “We trust you, because we’ve put you in charge of a project that will spend a lot of our money.” The second message, however, is, “If you want to spend any of it, you have to get it approved first.” To me, this message says, “We don’t trust you.” Now when two messages differ, the negative one takes priority over the positive one. In other words, these managers are being told that the company doesn’t trust them. If you follow my process for managing projects, you will find that the implementation plan must be approved, and this plan will include a budget for the project. After that, so long as the project manager is spending in accordance with the already approved plan, why should any more approvals be needed? Doing so is a total waste of everyone’s time.
Methods
Methods are the “tools of the trade.” For project managers, the only issue that usually comes up here is scheduling software. I fully understand the need for some standardization in organizations, because information systems (IS) departments can support only so many software programs. However, one size does not always fit all—in clothing or in software—and insisting that everyone use a low-end package will cause major problems for managers of very large construction projects. Alternatively, insisting that everyone use a high-end package because a few people manage large projects is to provide everyone with a sledgehammer when only a mallet is needed. One solution to this problem, adopted by a few companies, is to have one person do all scheduling for a group of project managers. That way the scheduler can become intimately familiar with the high-end package, and all that the project managers have to know is its capability. The approach works very well and saves a lot of money. Furthermore, it frees project managers from the drudgery of long hours at a computer trying to massage a schedule, and it allows them to concentrate on the important things that they should be doing, such as dealing with political issues.
Control
For the moment, we will skip to the top of the pyramid and then backtrack. When you get right down to it, the reason for managing is always to maintain control. You are expected to control the application of scarce resources to achieve desired objectives. The question is, how is this done?
con • trol: Control is exercised by comparing where you are to where you are supposed to be, then taking corrective action when discrepancies are found. The answer is partly provided by the definition of control.
Control is exercised by comparing where you are to where you are supposed to be, and taking corrective action when discrepancies are found. It is clear that this is a feedback systems definition of control, as opposed to a power or authority definition. This means that the two boxes under “control” in Figure 1.4 play a vital role in allowing a project manager to exercise control over a project.
Planning
It is the plan that tells you where you are supposed to be in the first place. Without a plan, you have no idea if you are doing okay or not. Thus, if you have no plan, you have no control. I consider this to be one of the most important principles of project management, because it clearly explains why planning is not an option—it is a necessity.
PRINCIPLE: If you have no plan, you can not have control—by definition!
Information
If you don’t know where you are, you certainly can’t exercise control. This is a problem for most organizations. They have excellent information systems for inventory control, order tracking, and so on, but no system for tracking projects. The reason is simple—they didn’t know they needed one. For the time being, you will most likely have to track each project manually. That isn’t too big a problem for most project managers.
You will also need to estimate how long a task will take. Organizations don’t have history databases. If you want to estimate how long a task will take, your best starting point is data on how long it took previously. All too often, this information exists only in the memories of individuals, and these are notoriously faulty.
Source : The Project Manager’s Desk Reference A Comprehensive Guide to Project Planning, Scheduling, Evaluation, and System by James P. Lewis