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Typically, the person who controls the money, controls the project. If you, as a project manager do not have spending authority or functional authority, then basically, you are not in control. The project will go downhill as you never know if you will be second guessed on items. Once second guessing starts, there is decision paralysis. I once had a project management contract with the Owners to manage the design and construction of a new facility for them. They knew their business and how to make money while I knew how to construct facilities. They tried to second guess me on what had to be done, but I ignored them and did what had to be done. I caught some grief but figured they could fire me if they didnt like what I was doing. In spite of them, we got the facility up and running under budget and ahead of schedule, which was the objective. At my last workshop was a manager whose company had decided not to hire a project manager nor use project management techniques. They figured they could save money (less financing?). He had authority and an approval limit of ~$200,000 so there was no problem there. By the second day into the workshop he was getting concerned as he could see there was more to this project management stuff than they had planned on. They were in the design phase and his plan was to move to the site and run that and manage the facility. I told him this was a prescription for failure as there is just too much work involved in getting a new facility operational. Somewhere along the line he will have to decide if he is the Facility Manager or the Project Manager. His main job is to get the facility operational, not manage the project so project management will suffer. Once this happens it will become a matter of constantly putting out fires with budget and schedule problems. This problem is more common than you realize and runs through all levels of an organization.