Project managers establish and manage budgets and therefore need some knowledge of finance and accounting principles. Especially important in this skill area is the ability to perform cost estimates for project budgeting. Different methods are available to determine the project costs. They range from estimating individual activities and rolUng the estimates up to estimating the project's cost in one big chunk. I'll discuss these methods more fully in later chapters.
After a budget is determined, you can start spending. This sounds more exciting than it actually is. Reading and understanding vendor quotes, preparing or overseeing purchase orders, and reconcilinginvoices are budgeting skills that the project manager will use on most projects. These costs will be linked back to project activities and expense items in the project's budget.
Conflict Management Skills
Show me a project, and I'll show you problems. All projects have some problems, as does, in fact, much of everyday life. Isn't that what they say builds character? But I digress.
Conflict management involves solving problems. Problem solving is really a twofold process. First, you must define the problem by separating the causes from the symptoms. Often when defining problems, you end up just describing the symptoms instead of really getting to the heart of what's causing the problem. To avoid that, ask yourself questions Uke "Is it an internal or external problem?" and "Is it a technical problem?" and "Are there interpersonal problems between team members?" and "Is it managerial?" and "What are the potential impacts or consequences?" These kinds of questions will help you get to the cause of the problem.
Next, after you have defined the problem, you have some decisions to make. It will take a little time to examine and analyze the problem, the situation causing it, and the alternatives available. After this analysis, the project manager will determine the best course of action to take and implement the decision. The timing of the decision is often as important as the decision itself. If you make a good decision but implement it too late, it might turn into a bad decision.
Negotiation and Influencing Skills
Effective problem solving requires negotiation andinfluencingskills. We all utilize negotiation skills in one form or another every day. For example, on a nightly basis I am asked, "Honey, what do you want for dinner?" Then the negotiations begin, and the fried chicken versus swordfish discussion commences. Simply put, negotiating is working with others to come to an agreement.
Negotiation on projects is necessary in almost every area of the project, from scope definition to budgets, contracts, resource assignments, and more. This might involve one-on-one negotiation or with teams of people, and it can occur many times throughout the project.
Influencingis convincing the other party that swordfish is a better choice than fried chicken, even if fried chicken is what they want. It's also the ability to get things done through others. Influencing requires an understanding of the formal and informal structure of all the organizations involved in the project.
Conflict Management Skills
Show me a project, and I'll show you problems. All projects have some problems, as does, in fact, much of everyday life. Isn't that what they say builds character? But I digress.
Conflict management involves solving problems. Problem solving is really a twofold process. First, you must define the problem by separating the causes from the symptoms. Often when defining problems, you end up just describing the symptoms instead of really getting to the heart of what's causing the problem. To avoid that, ask yourself questions Uke "Is it an internal or external problem?" and "Is it a technical problem?" and "Are there interpersonal problems between team members?" and "Is it managerial?" and "What are the potential impacts or consequences?" These kinds of questions will help you get to the cause of the problem.
Next, after you have defined the problem, you have some decisions to make. It will take a little time to examine and analyze the problem, the situation causing it, and the alternatives available. After this analysis, the project manager will determine the best course of action to take and implement the decision. The timing of the decision is often as important as the decision itself. If you make a good decision but implement it too late, it might turn into a bad decision.
Negotiation and Influencing Skills
Effective problem solving requires negotiation andinfluencingskills. We all utilize negotiation skills in one form or another every day. For example, on a nightly basis I am asked, "Honey, what do you want for dinner?" Then the negotiations begin, and the fried chicken versus swordfish discussion commences. Simply put, negotiating is working with others to come to an agreement.
Negotiation on projects is necessary in almost every area of the project, from scope definition to budgets, contracts, resource assignments, and more. This might involve one-on-one negotiation or with teams of people, and it can occur many times throughout the project.
Influencingis convincing the other party that swordfish is a better choice than fried chicken, even if fried chicken is what they want. It's also the ability to get things done through others. Influencing requires an understanding of the formal and informal structure of all the organizations involved in the project.