Power to Influence

Power to Influence

Learning Outcomes

After reading this chapter you should be able to:

• Understand that power is derived from the project manager’s position in the organization and the project manager’s personality.
• Understand how to address the responsibility–authority gap.
• Develop a plan to enhance the project manager’s power to influence the outcome of the project.

Project leadership is a process by which a project manager can direct, guide and influence the behavior of the project team and participants towards accomplishing the project objectives. There is a range of methods the project manager can use to influence the project team. It is, therefore, essential that the project leader understands the characteristics and features of ‘power to influence’ and is able to manage the process.

This chapter will outline the six main areas of leadership power: legitimate, coercive, reward, expert, referent and communication.

The project leader’s challenge is to identify the best mix of power to influence methods that are appropriate for the situation (the team members and the project).

1.What is Power to Influence?

Leadership power refers to the ability the project leader has to influence the behavior of the team members and stakeholders so that they are willing to follow the leader. Leadership power to influence can be subdivided into six areas, as shown in Figure 7.1 and Table 7.1.

Figure 7.1: Leadership Power to Influence

Table 7.1: The Six Areas of Leadership Power to Influence

Legitimate Power Legitimate power is automatically conferred on the project manager with the appointment to the position, and this gives the project manager the right to issue instructions and use company resources.

Coercive Power Coercive power is a power that is based on fear. A project leader using coercive power can make life very difficult for the team members if they do not follow as the leader demands. Team members working under a coercive leader are unlikely to be committed, and more likely to resist the leader.

Reward Power  Reward power is the opposite of coercive power. Reward power is the project leader’s ability to encourage the team to perform based on the distribution of rewards that the team members view as valuable.

Expert Power Expert power is based on the project leader’s project-specific skills, knowledge and ability to solve problems. The project leader’s project-related competency earns respect from the team members.

Referent Power Referent power is based on the project leader’s desirable personal and interpersonal traits. The project leader’s natural charisma, powers of persuasion, rapport and humor encourage the team members to follow.

Communication Power  Communication power is based on the project manager’s ability to control the project’s lines of communication.

2. Matrix Organization StructureIn the traditional functional organization structure the project manager’s position gave the project manager ‘position authority’ to make decisions, place orders, issue instructions and acquire resources (from within the department) to achieve the project’s objectives. This approach worked well for projects within a functional department, but as companies changed to managing multidisciplined projects through a matrix organization structure, so the project manager’s position authority diminished.The project manager’s position within the matrix structure enables the project manager to coordinate the project work between departments and between contractors and suppliers. But, at the same time, the matrix structure removes the formal line authority the project manager had over the resources in a functional department. This is because, within the matrix structure, the project manager has to borrow resources from the functional managers. This means the project manager does not have access to the resources as a matter of right and might have to negotiate with the functional managers for the use of their resources.Other aspects of the project environment have also changed. The project manager now has to address the needs and expectations of a wider range of stakeholders (including environmentalists) and, as the workforce is better educated, this has increased their competency and their greater social expectations. The workforce prefers interesting and challenging tasks, and wants a say in managing its work environment. The days when the project manager could command and control the workforce are a thing of the past.To address these changes in the new project environment, project managers are having to change their leadership style; they need to adopt more of a negotiation style of leadership with the functional managers, and a more participative and collaborative style of leadership with the project team members.In the past it was felt that the project manager’s main limitation was not having sufficient authority to issue orders and instructions, but now it is felt that even if the project manager is deemed to have sufficient authority, that ‘ordering’ the project participants around is more likely to create resentment and conflict. The latest thinking is that even if project managers have sufficient formal authority, they will also need other forms of influence to be successful in the long run. This chapter will discuss a range of techniques project managers can use to gain power to influence and guide the project participants and stakeholders.
3. Responsibility–Authority GapThe first challenge the project manager has to face, particularly in a matrix organization structure, is being assigned the responsibility to manage a project, but not being given sufficient formal authority and company resources – this is called the responsibility–authority gap.

The PMBOK defines Responsibility as: The work that a project team member is expected to perform in order to complete the project’s activities.

The PMBOK defines Authority as: The right to apply project resources, make decisions and sign approvals.Responsibility can be defined as feeling obliged to perform the assigned work, while authority can be defined as the power to carry out the work. The responsibility–authority gap occurs when the project manager is given responsibility to carry out a job but does not have sufficient formal authority to issue instructions to acquire the resources to make the work happen (see Figure 7.2).Figure 7.2:

Responsibility–Authority Gap – shows a larger circle of assigned responsibility and a smaller circle of formal authority, the difference in the size of the circles being the responsibility–authority gapThis mismatch between responsibility and authority might be partly historical. Traditionally projects were run within the functional departments but, as companies started to use a temporary matrix organization structure for continuity, the resources still remained with the functional departments.The working culture of the company might also be instrumental in causing the responsibility–authority gap. If a company is not used to running projects then the project will be seen as a temporary event, and when it is finished the company will revert back to the normal functional organization structure.

4. Power to InfluenceThe key words of this chapter are not ‘responsibility’ and ‘authority’, but ‘power’ and ‘influence’, particularly ways for the project leader to gain the power to influence team members to follow.

may be defined as: The ability to influence the decisions and actions of others to help you accomplish the project’s scope of work.In the project environment one would assume that all the team members and contractors are there to carry out the work – it is their job – it is what they are being paid to do. The power in this context is the ability to influence how they carry out the work.The Oxford dictionary defines Influence as: The effect a person has on another.In the project context, the main consideration is the project manager’s power to influence the team members, functional managers and other stakeholders associated with the project to help achieve the project’s goals.Accountability: Figure 7.3 shows that project managers are accountable to the project sponsors who appointed them. But, in an informal sense, they are also accountable to the team members from whom they have to earn trust and respect to live up to the team members’ expectations and lead the team effectively.Figure 7.3: Delegation of Power – shows that position power is assigned down from senior management, and personal power is earned up from the project teamFinite Power: Some managers see power as a finite quantity, and if they were to give any power to a subordinate through delegation and empowerment, they would reduce or diminish their own amount of power. These types of project managers, therefore, resist giving away any power.Synergy Power: The opposite to finite power is synergy power, where, by delegating responsibility and empowerment to experts within the team, the project managers actually create more power for themselves through the team’s ability to perform the work more quickly, more accurately and by making better decisions. In this situation, success lies not in the power the project managers keep but in the power they delegate to the people who could have the greatest impact on the project.Leadership Power: Leadership power, in the project context, is the use of power to influence the actions of the project team members and other project stakeholders to achieve their needs and expectations, and also accomplish the project’s goals and objectives (refer to Figure 7.4). A project manager without power is a contradiction in terms, because he or she needs the power to be a leader to get things done.Figure 7.4: Power Lifecycle – shows how the power earned by the project leader increases or decreases during the team development phases. The team development curve, which is superimposed on the project lifecycle, shows how the performance of the team changes as it passes through the team development phases. Assuming the team is formed in the concept phase, the leader’s power to influence will vary. In the concept phase (1), the performance of the team is positive to start with if an autocratic leader takes control, but during the storming phase (2), the team’s performance reduces until the norming and performing phase (3), when the performance of the team increases to a maximum as the team members work effectively together.5. Power and Influence vs. Project LifecycleThe project lifecycle can be used to show how power, influence and authority can be used in the different phases (see Figure 7.5).Figure 7.5: Power vs. Project Lifecycle6. Formal AuthorityThe PMBOK defines Authority as: The right to apply project resources, make decisions and sign approvals.‘Formal authority’, also called ‘legitimate authority’ and ‘position power’, automatically confers on the project manager the right to make decisions, issue instructions and use company resources to carry out the project. This legal right is documented in the project charter and conferred on the project manager by the project sponsor. The project sponsor, in turn, has the business case approved by the board of directors which represents the shareholders who own the company. For example, with position power the project manager has the right to instruct the team members to perform a task and to expect they will do it as instructed.Being appointed to the position of project manager suggests that project managers have the ability to manage the project and have the support and confidence of the senior managers who appointed them. While position power can be exerted over subordinates, this type of power is very limited in its acceptance and often does little to influence people’s behavior, particularly the functional managers (who might be on the same organizational level) who own the resources the project managers need.The use of formal authority has changed. Gone are the days of command and control, and a better educated workforce is not afraid to question its project leaders’ instructions.In the ideal world, authority is commensurate with responsibility – this means that project managers should have sufficient power to issue instructions to get the work done. In the real world this is rarely the case; with the matrix organization structure, today’s project managers need to rely on other ways to gain power to influence the project team members and other stakeholders. One of them is to control the budget (see next section). The exception is when the project managers are working through a pure project organization structure and then everyone on the project reports directly to them.Budget Authority: If the project manager controls the purse strings this will confer some financial power over the departments and people who are instructed to carry out the project work. This is particularly powerful if the functional departments are run as cost centres. Budget authority is certainly powerful when dealing with outside suppliers and contractors who depend on payments from the project manager for their existence.If budget authority is not automatically assigned to the project manager’s position, the wording of the project charter should be used to confirm how the budgets will be assigned and managed. This is the opportunity for project managers to align the project’s budget with their position. Even if the project charter is a document without formal authority, it still gives project managers the perception of budget authority.Budget authority can be applied as both a carrot and a stick. The carrot could be an incentive bonus and the promise of future business, while the stick could be the threat of withholding payment for poor work and no future work.Budget authority also gives project managers the power to negotiate for the best rates internally with the functional managers, and externally with the contractors and suppliers. This further enhances their position power with their stakeholders.With budget power project managers have leverage to negotiate a win–win situation with the functional departments for their resources (labor, machinery and equipment); this could mean a better rate for the project managers and full resource utilization for the functional managers.7. Coercive PowerCoercive power is usually presented as a misuse of position power which is derived from the project manager’s ability to punish or take something away from the team members, contractors and suppliers. Coercive power uses fear, the avoidance of punishment and threats to influence people’s behavior. This might be seen as:Power not to reward.Power to threaten demotion.Power to withhold overtime.Power to limit salary increases.Power to transfer people to another job.It is important to appreciate that if a project manager threatens sanctions against a team member the threat must be carried out because, if that team member calls the manager’s bluff and the project manager backs down, all power in future transactions will have been undermined, and credibility with the project team members will be lost.The ironic consequence of coercive power is that if this approach is used the project manager might lose credibility anyway!!! The team will recognize that coercive power was used, see this as a weakness in leadership and question the effectiveness of the project manager as being the right person to lead the team. So the use of coercive power, in this instance, would seem not to be the best way to gain power to influence.8. Reward PowerReward power is the opposite of coercive power; it is the ability to provide positive reinforcement for the desired performance. The rewards could be a salary increase, an incentive bonus, share options, a job promotion, an interesting assignment and time off work. To be effective, the reward must properly correspond to the team members’ values and expectations. However, as monetary rewards are not always available for the project manager to offer, the project manager needs to consider other potentially satisfying rewards, especially those related to challenging work and personal recognition (see Herzberg’s motivation and hygiene factors in Chapter 19 on Motivation). Herzberg’s research found that people respond very positively to:Feeling a sense of achievement.Recognition of their ability.Being assigned interesting work.Being delegated responsibility to complete the work.Being promoted – recognition of the above.Project managers can gain reward power to influence by providing rewards intrinsic to the project itself. These rewards include:Creating challenging tasks.Shaping future work assignments.Assigning responsibility.Praising good performance.Allowing individuals to correct poor performance themselves.These are all low-cost rewards (to the project), yet are powerful rewards and are available to project managers on most projects.9. Expert PowerProject managers with technical skills, product knowledge, work experience and competency in the field of the project are able to gain expert power. They are often appointed on the basis of their technical expertise in the field of the project for the very reason that they understand how to make the product and can help directly with day-to-day problems.Team members respect project managers who know how to do the job; if any of the team members hits a problem, they know who to turn to for help. This is not only efficient for the project, but also a comfort for the team member.The project manager can also gain expert power by compiling technical information on the project. This might be a bookshelf of technical resource material within the project manager’s office, or a technical library within the Project Management Office (PMO). Besides technical manuals and technical periodicals, a technical library should also include closeout reports and data from previous projects. This could be the first place the estimators look when compiling a bid package.Competence Power: Technical competence enhances the ‘halo effect’ – if someone is good at one thing, then people assume they are good at other things. This is why film stars become politicians, and some people might ask a professional person, such as a doctor, how to fix their car! Although they would probably not ask a car mechanic for advice on a heart condition!A good leader influences by example and by providing a role model for the team members to follow. A good leader is someone people will follow willingly because they perceive that the leader can provide them with a means of achieving their own desires, needs and expectations, together with the team’s needs and the project’s objectives.Expert knowledge and technical ability are effective if perceived as valuable and shared appropriately with team members and project participants; however, it will erode trust and create resentment if the information is hoarded.10. Charisma PowerOne of the most compelling ways for project managers to gain power is through their vibrant personality and exciting behavior. Charismatic project managers compel people to listen and follow them – their magnetic personality draws people towards them. They project themselves as natural leaders who have a clear vision of where to go and a clear direction of how to get there. They exude a definite sense of purpose, and give the team members confidence that they know what to do, how to do it and will easily achieve the project’s objectives.Charismatic project managers have an infectious sense of humor, have empathy with team members’ needs, are enthusiastic about the work and display a self-confidence that they can perform the project.Charisma gives project managers the personal power to influence the project team, influence the functional managers and influence other stakeholders. In the case of the functional managers, charismatic project managers would use their approachable manner to negotiate for the use of the functional departments’ resources – they would push for the best people but always be prepared to wheel and deal and cut corners, as they strive for an agreeable win–win arrangement.Persuasion Power: Project managers use persuasion power, reasoned argument, evidence and logic to influence team members’ decisions, functional managers’ decisions and other stakeholders’ decisions. Charismatic project managers will bamboozle team members with facts and figures to support their strategy; they are forceful but not confrontational, always prepared to negotiate, always searching for a bargain, always prepared to horse-trade, but always striving for a win–win situation.The power of persuasion is an important part of the project manager’s leadership style to obtain cooperation, because persuasion is, in general, a practical necessity in all group interaction.But, a word of warning about charismatic project managers – ideally they should be competent in all areas of managing projects. Charismatic project managers will certainly gain initial appeal but, as problems arise on the project, if they are not able to assist technically, then their charismatic power will be undermined. Therefore, for project managers to be effective long term, they also need to be technically competent, have good product knowledge and be able to set up and manage a planning and control system. Otherwise, technical problems will go unresolved, and planning will end in chaos – all this will undermine the respect and confidence from the project team and, therefore, undermine the project manager’s power to influence.Bona fide charisma is something project managers either have or don’t have. If not (and many project managers are not charismatic) then they need to consider other, more systems-based means of gaining power to influence.11. Communication PowerProjects are run by good communication, therefore, project managers who control the lines of communication can gain communication power. As the amount of information required to manage a project increases, so the means of communication needs to change from ad hoc word of mouth to a more formalized, fully integrated information and control system. It is the project manager’s prerogative to run the communication system through the Project Management Office (PMO).As project managers are at the center of the information and control system, they are in an ideal position to capture, process, file and disseminate (document control) useful information. In this situation the project managers derive power from having access to and control of the project’s information.Reporting Power: The person who takes the minutes at meetings, compiles the progress reports, writes monthly reports or organizes closeout reports will gain reporting power. It is the project manager’s prerogative to manage the writing, editing and circulation of these documents.If information and knowledge of what is happening on the project is power, then controlling how it is gathered, processed and disseminated must also be a form of power. And, including the CEO, senior managers and the client (project sponsor) in the circulation will add power by association.Appearance Power: As a book is judged by its cover, so a person is judged by appearance. In the context of this chapter, dressing appropriately can enhance appearance power. The way a person looks and dresses will influence how people filter and interpret what that person says and stands for. For example, if the project manager makes a presentation to the client dressed in a suit, this is likely to be more powerfully received than if the project manager has just come off site and is still in a boiler suit, hard hat and steel-capped boots.Speech Power: People are not only judged by their appearance, but also by the way they speak and, it is not only what they say, but how eloquently they say it. Speaking skills are a key project leadership skill. The project manager’s ability to communicate will determine, to a large extent, how seriously team members take on ideas and instructions, and whether they will be inclined to follow the project manager’s lead.One of the ways project managers can gain speech power is to use the project management vocabulary – when entering the field of project management, it is important to use the language of project management.Body Language: The nonverbal side of communication has a much greater impact on the communication process than most people realize. This includes body posture, hand movements, facial expressions and eye contact; all these come together to reinforce feelings and help to communicate the right message.However, communicating by telephone and email means body language is removed but, once people have physically met, then they remember each other and respond accordingly.Presentation Power: Public speaking is one of most people’s top hates, but if this hurdle can be overcome and they use dynamic presentations with supporting visual aids, this will create a powerful impact. A powerful presentation gives the perception of someone who knows what he is talking about.Networking Power: The phrase, ‘It is not what you know but who you know that opens the doors of opportunity,’ can be applied to project managers. In their case, it is their ability to connect with a network of useful contacts and make alliances with important people that will give them networking power (see Chapter 11 on Working with Stakeholders).Mentor Power: The ultimate useful contact is a mentor, particularly a senior person within the company, the client or stakeholder. A mentor is not only an experienced and knowledgeable person to turn to for guidance but also, by association, will enhance perceived communication power. For example, if the project manager sends a document to the functional managers requesting assistance, and the circulation includes the project manager’s mentor then, by association, it is almost as if the document has come from the mentor directly. This means the functional managers are more likely to support the request and, consequently, the project manager will have gained mentor power (see Chapter 17 on Coaching and Mentoring).12. Leadership PowerEarning trust and respect from the project team is the ultimate requirement for achieving leadership power. Trust and respect cannot be assigned to a project manager, they have to be earned or given by the project team members and other stakeholders.Leadership power is the ability to get things done through people, and particularly the project team. Therefore, the project manager gains leadership power by using a range of management skills.This chapter has outlined a range of position and personal ways to gain power to influence the project team and other stakeholders. The feedback suggests that project managers gain less power if they rely totally on position authority, budgetary authority and coercion power because there could be a backlash against these particular sorts of power if they are stringently enforced. Personal power derived from charisma, technical competence and information are far more acceptable.EXERCISES:Have you ever been delegated responsibility to carry out a task, but not been given sufficient authority to issue instructions? Discuss how you gained power to influence the project participants.Discuss the different types of power you use to carry out your projects.Discuss the different types of power your boss uses to manage projects.