Telecommunications Project Management

Power/Authority

Vendor Management

Measure of Success

How well he/she can negotiate with both upper-level and functional management for the resources necessary to achieve the project objective

PM may have a great deal of delegated authority but very little power

Management School Philosophies

Classical/Traditional school – Getting things done (achieving objectives) by working with and through people operating in organized groups. Emphasis made on the end-item or objective, with little regard for people involved

Empirical school – Developed by studying the experiences of other managers, whether or not situations similar

Behavioral school HR Classroom – Emphasize interpersonal relationship between

individuals and their work Social system - System of cultural relationships involving social

change

Management School Philosophies

Decision theory school – Rational approach to decision making using a system of mathematical models and processes

Management systems school – Systems model characterized by input, processing, and output, while directly identifying the flow of resources necessary to obtain some objective by either maximizing or minimizing some objective function Includes contingency theory – stressing each situation is

unique and must be optimized separately within constraints of the system

Who uses these schools?

Functional ManagersClassical/TraditionalEmpiricalBehavioral

Project ManagersDecision TheoryManagement Systems

Management Functions

PlanningOrganizingStaffingControllingDirecting

Controlling

Measuring – Determine through formal and informal reports the degree to which progress toward objectives is being made

Evaluating – Determine cause of and possible ways to act on significant deviations from planned performance

Correcting – Taking control action to correct an unfavorable trend or to take advantage of an unusually favorable trend

Directing

Staffing – Qualified person selected for each position Training – Teaching individuals Supervising – Day-to-day instruction, guidance, and discipline Delegating – Assigning work, responsibility, and authority to

others Motivating – Encouraging others to perform by fulfilling or

appealing to their needs Counseling – Private discussions with another about how he

might do better work, solve a personal problem, or realize their ambitions

Coordinating – Ensuring activities are carried out in relation to their importance and without conflict

Understanding Human Behavior

Theory XAverage worker dislikes work and avoids

work whenever possibleTo induce adequate effort, the supervisor

must threaten punishment and exercise careful supervision

Average worker avoids increased responsibility and seeks to be directed

Understanding Human Behavior

Theory YAverage worker wants to be active and finds

the effort satisfyingBest results come from willing participation,

which produce self-direction toward goals without coercion or control

Average worker seeks opportunity for personal improvement and self-respect

Types of Power

Legitimate power – Officially empowered to issue orders

Reward power – Directly or indirectly dispense valued organizational rewards (promotion, salary, future work)

Penalty (coercive) power – Directly or indirectly dispensing penalties they wish to avoid (same source as reward power)

Expert power – Manager has special knowledge or expertise that is considered important

Referent power – Attracted to PM or project

Leader Behaviors

P.219

Leader Behaviors Explained

S1 (HTLR)Task-orientedAccomplishment of objectiveLittle concern for employees or feelingsRelies on PM leadership ability and judgment

S2 (HTHR)Strong behavioral relationshipsTrust and understanding between the leader and

subordinatesHigh task behavior due to lack of competency

Leadership Behaviors Explained

S3 (LTHR) Pure relationship behavior Leader more interested in gaining respect than achieving

objectives Delegation (sometimes excessive), participative management,

and group decision-making Employees no longer need directives and are self-motivated

S4 (LTLR) Employees experienced in the job Confident about their abilities Trusted to handle work themselves

Types of Leadership

Democratic or Participative LeadershipWorkers communicate with each other and involved

in decision making process with PMLarge amount of authority delegated to teamTeam has active role in managementS3 and S4

Laissez-Faire LeadershipPM turns things over to workersNo active involvement by PMS3

Types of Leadership

Autocratic LeadershipFocus on tasks and little concern for

workersPM has ultimate authorityS1

Proverbs and Laws

“The same work under the same conditions will be estimated differently by ten different estimators or by one estimator at ten different times”

“The most valuable and least used word in a project manager’s vocabulary is “NO.”

Proverbs and Laws

“You can con a sucker into committing to an unreasonable deadline, but you can’t bully him into meeting it.”

“You can freeze the user’s specs but he won’t stop expecting.”

“What is not on paper has not been said.”

Vendor Management

Large infrastructure projectsEstablishment of undersea cablesHospitalMore than procurement

Acquiring goods and services from outside the organization

Vendor Management vs Procurement Management

Obtain goods and services for a projectTechnical requirementsScheduleCost

Assessment, selection, administration and evaluation of supplier

Control cost and quality between buyer and seller

Define requirements, define requirements and work

Procurement Management

Business decisions of making or buyingEfficiency of supply chain

Tracking costsAuditing invoicesIntegrating pertinent data

Maintenance, repair, and operations (MRO)

Standardized products

Vendor Management

Relates mostly to knowledge creation and sharing

Products acquired at early point in their life cycle

Strategic goods related to service creation

Vendor Management vs. Procurement Management

Characteristics Procurement Mgmt Vendor Mgmt

Purpose Minimize transaction cost Maximize knowledge creation and retention

Nature Impersonal and at arm’s length

Relation-specific

Dependence on the technology life cycle

No Yes

Areas of application All types of innovation and goods

Supplemental for radical, architectural and platform innovation

ISO/IEC-12207

Need definition and procurement planning Requirements definition

RFI RFQ RFP

Preselection (Short listing) – prepare bid proposal Evaluation (Due-Diligence) – rank proposals Supplier selection Contractual agreement Contract management and operation Closeout

Vendor Types in Telecom Services

1. Technology vendors – hardware/software

2. Connectivity vendors – fill gaps in end-to-end links

3. Service vendors – installation of equipment, billing of end-customers, training, on-site support for remote locations, etc.

4. Consultants

Vendor Evaluation

1. Technology environment – vendor vision2. Technology evaluation – level of mastering

state-of-the art and emerging technologies3. Markets/Competitors4. Innovation process – short time to market

(good and bad)5. Support functions – training, consultation, etc6. Acquisition and adaptation of new

technologies

Equipment Vendor Evaluation

TL 9000 – GR-929-CORE Product quality

Hardware failure rates Software reliability estimates

Process quality Quality of process Time to respond to trouble, escalation time, resolution time Percentage of patches released on time

Vendor support Quality of help in installation and config of equipment Quality of training Quality of documentation

Connectivity Vendor Evaluation

Geographic coverageService lead tieAvailability and mean time to repair

(MMTR)Ability to provide adequate supportQoS

Communication with Vendors

Statement of Work1. Deliverables2. Failure rate3. Schedule for service and deliverables4. Acceptance criteria for product5. Division of work and responsibilities6. Formal procedures for change request7. Intellectual property rights8. Vendor support expectations9. Location of work10. Compensation11. Delay penalties

Risk Management of Technology Vendors

Risk factors1. Technology life cycle

2. Vendor type

3. Supply disruption

4. Congruence of supplier and service provider plans

5. Standardization

6. Intellectual property and knowledge management

7. Inadequate field support

Start-ups vs. Established Firms

Characteristics Start-up Large Established Firm

Flexibility and risk orientation

High Low

Best practices implementation

Usually low Usually high

Time horizon Short-term Long-term

Decision making Fast Slow and hierarchal

Quality of documentation

Usually low Usually high

Risk Mitigation Strategy

1. Requirements of service

2. Best practices

3. Hold vendors to contractual obligations (quality, delays in delivery, QoS)

4. Periodic meetings at mgmt. Level

5. Standardize interfaces in standard bodies

Connectivity Vendors

1. Interconnection agreement User access where network operator has no access

2. Telehousing agreement Provide floor space for network elements and spare parts Specific housing requirements (raised floors, UPS, diesel generator, fire

protection, access security, etc) Maintenance and fault reporting

3. Full service through: Infrastructure and customer access support Network element deployment Capacity planning

4. Forced agreement Company forced to do business with another Wired carriers allow competitor to have access

Pitfalls of Vendor Management

1. Multiple interfaces between vendor and supplier without centralized mgmt.

2. Expectations not clearly defined3. Reasons of vendor selection that are not

technical may not be obvious to team – affecting moral

4. Status of knowledge gained through exchange of information is ambiguous

Exam 1 Review