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The Contract Project Manager: Free Agents and Pinch Hitters

© 2004 By Donna Fitzgerald

In the not so distant past, almost all non-construction project managers were of the accidental variety. Companies staffed project management positions by picking functional managers who showed solid potential to move up the ranks into senior management and offer them the challenge. The challenge was always perceived on both sides as a very high-risk situation in which a manager agreed to step out of his or her day to day management job to run a high visibility project. If things went well on the project, the manager could expect to be promoted. If things didn’t go well, the odds were that there wouldn’t be a job to return to at the end.

From management’s perspective, project work was the ultimate management training program. A project allowed clear visibility of how the individual in question worked under pressure, how she could handle risk, or how he performed in a census-building environment. From the accidental project manager’s point of view, it usually afforded the opportunity to build name recognition among the company’s ruling elite, which would hopefully translate into support when a senior management opportunity became available.

Running the gauntlet of project management was a normal part of every ambitious manager’s career until the 1990s shattered the relationship between company and employee. Reengineering and a relentless focus on cost reduction might have been good for many things but it did irreparable harm to the notion that a career was built through loyalty and good work at one company.

The Reaction
According to Newton’s third law, for every action there is an equal and opposite reaction somewhere in the system. In our example above we see the corporate action of thinning the middle management ranks (the traditional source of accidental PMs) being offset by the reactionof creating project management as a formal profession. The growth in PM organization memberships from 8,500 in 1990 to over 120,000 in 2004 proves this point in a dramatic way. Additionally once project management became a recognized profession the best and most experienced project managers had the opportunity to choose to become free agents. Rather than stay at a company for years and handle projects occasionally, some of the most talented and capable individuals have made the decision to manage projects full time and if that means moving from company to company and even state to state to follow the work then so be it.

For some companies the thought of hiring a contract PM to run a project is perfectly acceptable proposition but for other companies the decision isn’t quite so clear cut. What I’d like to explore in this article is four areas where contract project managers not only provide a clear value proposition but in fact are actually the superior choice to having an employee fill the same role.

Peak Loading
The most common reason to hire a contract project manager is when there is simply too much work for the existing staff to handle and it just has to be done. Project work by definition has a beginning and end and often there is no particular reason to increase the permanent staff. Hiring a contract project manager also allows for a number of benefits:

• They can provide experience in solving the specific problem.
• They can manage their project without challenging the current political structure and therefore
  obtain cooperation and consensus more readily than an employee might in some circumstances.
• Since they don’t have ongoing responsibilities they can focus on a single project and get things
  done more quickly.

The best way for a company to approach this is to develop a working relationship either with a firm that specializes in project management (not a body shop of temporary employees) and/or with a number of trusted individuals with whom the firm can build an ongoing relationship.

Let’s take an example of what this concept might look like in practice:

Clarity Electronics has just finished evaluating their project portfolio for the second half of 2003. IT spending is going up only slightly but they have a vast amount of work they want to accomplish in the next six months, including a business intelligence project and some rework on the CRM applications they tried to roll out a couple of years ago. They review their available resources and determine that it makes sense to have their existing employees work on the new Business Intelligence System but that the CRM project really would be better run by someone who has actually seen a CRM system work well at another company.

The company maintains a small database of every contract PM who has worked for them in the past and it’s a quick process to look up resumes. In this case, it turns out that Jane Anderson has CRM experience and that she’s gotten good marks from the team she’s managed at Clarity before. A quick call to Jane finds that she’ll be available in 4 weeks full time but can free up a few days before that to get some advanced planning activities kicked off. Approximately four months later, Jane and the team have been able to work with the sales staff and re-implement the lead tracking module in a much easier to use manner. Jane goes off to work with her next client and the project team has had another opportunity to work with and learn from an experienced PM.

One key factor is that Jane didn’t have a learning curve. She already knew the company, knew most of her team members, and had even met a few of the stakeholders on the last project she had done for Clarity. In our example of a 120-day project, Jane was able to bring to company both the unique knowledge gained elsewhere (a working CRM system) and her familiarity with Clarity to bear on the project in order to get it done quickly.

Jane was also able to avoid the problem of contractor resentment that keeps some companies from hiring outside consultants. By working for the company on a number of short term projects it is clear to the employees that she is operating in a peak load capacity and that she isn’t taking work away from them. Also by choosing to hire a PM with specialized knowledge it becomes clear to the staff that Jane (in this case) is bringing something none of them would have had the opportunity to acquire. Going outside of the company becomes not just necessary but a good thing.

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Editor's Note: Donna Fitzgerald is former asapm Director of Education, and in addition to managing her own Project Management Consulting firm, she runs NewGrange, asapm's official list serve, the "hottest place on the web to discuss project management", at www.newgrange.org.

 

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