Governance and Leadership in the Project economy

1. Governance in The Project Economy™
PMI Rochester Chapter
Thomas Walenta
March 2021
thwalenta@online.de

2. As Project Managers …
You are the leaders of teams and customers into a positive future.
You provide safety and security.
You will find some practical and some philosophical ideas in my pitch.
You may ask questions at the end or in the chat. You can get the deck.
It is up to you, if you want to deep dive or try out some ideas.
Or read a book. You may also contact me to discuss further.
In the global profession, in PMI, in the Chapter you find like-minded
people with similar problems – connect and help build the PM hive
Nobody knows what will be in a year (and never did) – but we all can
connect today in order to openly and fairly share ideas for the next steps
You are the reason I speak here today

3. The
Project
Economy
Project
Governance
Leadership

4. We power The Project Economy™,
strengthening society by
enabling organizations and empowering people to
make ideas a reality. (PMI)
The Project Economy: the coming economy in which work, and individuals, are organized around projects.

5. Project
mgmt
P
r
o
j
e
c
t
E
c
o
n
o
m
y
The Project Economy! extends project management into the future
‘In many ways, the organization is its projects—
led by a variety of titles, executed through a variety
of approaches, and focused unwaveringly on
delivering financial and societal value. This is what
we call The Project Economy.’

6. Project
mgmt
P
r
o
j
e
c
t
E
c
o
n
o
m
y
The Project Economy! extends project management into the future
PMI added more aspects to project management over time
Program
mgmt
Portfolio
mgmt
Brightline: strategy gap
PMI Educational Foundation: age 5-19
Disciplined Agile
Transformation compass
PMI
Code of Ethics
Citizen Developer

7. Project
mgmt
P
r
o
j
e
c
t
E
c
o
n
o
m
y
The Project Economy! extends project management into the future
There are even more things going on in the PM world, quicker and quicker
Program
mgmt
Portfolio
mgmt
Brightline: strategy gap
PMI Educational Foundation: age 5-19
Disciplined Agile
Leadership
Digitalization / AI
Transformation compass
Globalization (Human Hive)
Agile
PMI
World
Code of Ethics
BIM
Citizen Developer

8. Project
mgmt
P
r
o
j
e
c
t
E
c
o
n
o
m
y
The Project Economy! requires PMI to support the community with
knowledge, training and certifications – during their whole career
Program
mgmt
Portfolio
mgmt
Brightline: strategy gap
PMI Educational Foundation: age 5-19
Disciplined Agile
Leadership
Digitalization / AI
Transformation compass
Globalization (Human Hive)
Agile
PMI
World
Code of Ethics
BIM
new PMI certifications
Citizen Developer

9. Project
mgmt
P
r
o
j
e
c
t
E
c
o
n
o
m
y
The Project Economy! extends project management into the future
Leading to a flexible North Star, which is much more than traditional PM
Program
mgmt
Portfolio
mgmt
Brightline: strategy gap
PMI Educational Foundation: age 5-19
Disciplined Agile
Leadership
Digitalization / AI
Age 5-75
Society
Transformation compass
Security
Resilience
Globalization (Human Hive)
Operations
to projects
Jobs to
roles
Agile
PMI
World
Code of Ethics
BIM
Hope
Citizen Developer

10. The
Project
Economy
Project
Governance
Leadership

11. Good Governance is the base for success in war and projects
Sun Tzu, The art of war, about 500 B.C.
“Those who understand their war craft excellently first of all
observe humanity and justice and abide by the laws. This is how
they make their government invulnerable.”

12. What is governance
• Governance is about how a social system is run.
• a project is a social system, stakeholders are its members
• How roles and responsibilities are defined (Static - e.g. Org chart)
• How rules are set and enforced (Dynamic - e.g. processes and roles)
• How power is distributed and used (e.g. authority of a role)
• Informal power is not covered by governance
• How decisions are made for the social system
• Human decisions are made both consciously and unconsciously
• How information flows officially
• There are unofficial information exchanges (gossip, networks)
Social systems: A nation state, The UN, a company, a NGO, a city, a project

13. Human
Networks
Culture, Ethics
(Stakeholders)
Levels of governance
Organization
The Board
Strategy
Portfolio
The C-Suite
Annual Plan
Program
Business Lead
Expected benefits
Project
Sponsor
Output, product, result

14. Human networks
Culture, Ethics
(Stakeholders)
Humanity and Justice
community
adherence = social emotions
(negative: guilt, shame,
positive: community, respect, fairness)
Perspectives of governance
Influence
<< uncontrolled
>> controlled
gaps –
gossip,
corruption
filled from human network (often results in bad politics, corruption, gossip..)
Project governance
Structure, Organization
Processes
Laws
command & control
adherence =
1. are laws fit for use
2. are laws observed - discipline
(emotion of responsibility)
team selection, stakeholder engagement, influencing, project culture, emotions

15. How to influence the Human Network in order to increase control
1. team selection –
select the right people to the org chart (temperaments beat skills)
downstream (team) and upstream (sponsor, steering committee)
2. focus on stakeholder engagement –
identify, prepare, engage & monitor
3. understand how to influence individuals (emotions) -
be empathetic, build trust, know and use influencing strategies
4. establish a project culture –
beliefs, values, habits, signs, rites etc. to create a sense of belonging
team building concept, team monitoring
5. use emotions, so get comfortable with them
develop emotional intelligence

16. A project organization – project governance structure and roles
1. a project is born – roles are not real humans yet
Sponsor
Project Manager
Charter

17. A project organization – project governance
2. sponsor and PM represent wider stakeholder groups (agents)
(project-external governance)
within same Organization
Project Team
(project-internal governance)
Sponsor
Project Manager
Charter
Steering Committee
Portfolio Board
Resource Owners
Designers Implementers Testers
Working Council

18. A project organization – project governance
3. customers or internal business groups are the requestors/recipients
Organization
Project Team
Sponsor
Project Manager
Customer /
Business
Contract
Product
Charter
Customer
PM
Users
Customer
Sponsor

19. A project organization – project governance
4. there may be a bunch of external interested parties
Organization
Project Team
Sponsor
Project Manager
Customer
Contract
Product
external
stakeholders
Charter
SMEs
public

20. A project organization – project governance
5. the PM might out-contract part of the team’s work
Organization
Project Team
Sponsor
Project Manager
Customer
Contract
Product
external
stakeholders
Charter
Subcontractor
Contract
Sub PM
SMEs
public

21. A project organization of roles – project governance structure (Org Chart)
Sponsor
Project Manager
Sub PM
SMEs
public
Steering Committee
Portfolio Board
Resource Owners
Designers Implementers Testers
Working Council
Customer
PM
Users
Customer
Sponsor
Sub Team

22. bad
reputation
And there also is the Human network
new hire
former boss
old enemy Spouse
Son
Father
gets things
done
risk taker
socializer
follows
rules
compete &
win
bean
counter
artist
Girl Friend

23. PPP Governance standardized since 2017
Domains:
• Decision making
• Oversight
• Communications
• Performance
• Risk
• Alignment
• Integration
• Control
Guidelines:
• Decision making
• Oversight
(Audit, Review)
• Communications
(Reporting)
• Performance
• Risk
• Sustainability
• Stakeholders
• Mgmt policies

24. The
Project
Economy
Project
Governance
Leadership

25. Emotional Intelligence – a base for leadership
self awareness: confidence,
authenticity
self control:
mindfulness, resilience
empathy:
learning, understanding, listen
organizational awareness
influence:
leadership, impact, conflict
handling, negotiations
compassion: self-
motivation, flow
observe act
me
you
Stakeholder Engagement

26. Ethical values describe triggers to our emotions
26
Responsibility, accountability
Respect, mindfulness, tolerance, diversity
Fairness, justice, equitable
Honesty, truth, integrity
Freedom, autonomy
Community, family, relatedness
Compassion, Care, Love
Humility, reverence for life
8 human values found in most human cultures (Rushworth Kidder)
Compassion, care, love, help
PMI Code of Ethics and
Professional Responsibility

27. Neuroleadership – SCARF (by David Rock)
a tool to improve emotional intelligence (self control and influence)
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5 automatically triggered
emotions (David Rock)
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How humans feel if emotions are
triggered towards the emotion
negatively vs. positively

28. Fairness
In order to lead and influence, we have to understand motivations that
drive our reactions and try to smooth the triggers that might result in
emotions
Certainty
Autonomy
Relatedness
Status
As Project Managers ….
You are the leaders of teams and customers into a positive future
You will find some practical and some philosophical ideas in my pitch.
You may ask questions at the end or in the chat. You can get the deck.
It is up to you, if you want to deep dive or try out some ideas.
Or read a book. You may also contact me to discuss further.
In the global profession, in PMI, in the Chapter you find like-minded
people with similar problems – connect and help build the PM hive
Nobody knows what will be in a year (and never did) – but we all can
connect today in order to openly and fairly share ideas for the next steps
SCARF
(David Rock)
davidrock.net/
28

29. Success requires to consider both human network and governance
Real People
fill roles
Management/Governance
Rationality - control
Leadership
Humanism/Ethics - enable

30. Leadership can be seen when you perceive a shift ..
From To
Uncertainty Certainty
Chaos Structure
Fear Hope
Vision Results
Activism Plan
Waste Discipline
Hesitation Decision
Narrow view Reframing
Confrontation Conversation
Leadership is absorption of insecurity (Clausewitz)