Posts filed under 'HRM'
An unexpected impact of the crisis in project management (no, they are not lazy)
As the new terminal in Barcelona’s airport nears its completion and the trials are increasingly successful, we are increasingly dwelling into the depths of this recession / depression. No manager can have the luxury of forgetting the external environment, as it always impact us somehow, somewhere.
Sometimes project managers tend to think that they are insulated from the rest of the world. They have their budget, their plan, their milestones. Of course there’s a great deal of interaction with the customer and the stakeholders, but sensing the environment isn’t usually deemed necessary.
They are wrong.
I’m not talking here of budget cuts, or milestones changing. That could happen anywhere, anytime. I’m here referring back to an old post: Soft and hard human resource management (utilitarian instrumentalism versus developmental humanism) and the concept of the psychological contract.
There are many definitions of the psychological contract. For our purposes, let’s say that the psychological contract is the assumed relationship between employer and employee that includes a lot more than what’s included in the papers: what you’ll do for me, what you expect from me, including the promises I might have made, the way you expect to be treated, and the expectations you have for the future. Those small things you’ve talked with your boss about and the trust you have in him that they’ll be taken care of. If your boss lied to you, for instance, your psychological contract would be shattered, and your attitude with your job would dramatically change… for worse.
So, what’s in it for construction workers here? They are usually contracted through companies that have a working relationship with the companies that have been awarded the construction contract. There may be two, three, even four layers of agreements between them and the project. They may even work for several contracts, always ready to switch between one form of contract or another, everything transparent and irrelevant to the direction of the project, apparently.
But, what used to be the reality for them, that they went from one thing to another always having things to do and always earning money in one form or another, no longer holds true. Their expectations have dropped and, for many, next destination is unemployment. They won’t get bulky severance pays as many other layoffs. They will be simply be no longer required and no longer invited to participate in the next move. They will be have unemployment compensations, of course, but I bet they will be lower, for many reasons, than those of other kinds of workers.
So it’s no wonder they psychological contract has been shattered as well, as they expected to be able to keep living as they had been living. Not anymore.
And when is that going to happen?
The scary thing is that this is going to happen whenever they finish their job.
So, where is the motivation to finish as soon as possible? Do you think their intentions are aligned with the timeframe of the project’s direction? Obviously they are not. If they are not paid lump sums but depending on the days spent working, which is the usual contract as the lump sums are in higher layers, they will take as much time as they can. And with that they will also shatter part of the psychological contract.
I have been observing this effect. And this feeling is dangerously infectious as workers from one contract see workers from others procrastinating as much as they can. Moreover, this has no easy solution, as the usual ways of control are not responding effectively as they were never designed to overcome this threat or to better manage people, but to apportion and divide the value of the contract between several companies.
Sometimes, when we are thinking of leading our team to peak performance, we are forgetting to look around and realise how things are changing. We can name them however we want, but we can’t forget that, layers below, there is not a collection of resources: they are people.
Add comment 9 April, 2009
Listening (a reflection induced by a beacon)
Yesterday I took a few hours away off the hectic drumming of the new terminal to concentrate on a new project that I am leading: a new control system for the runways and taxiways lighting system for Barcelona’s airport, that happens to have the biggest beacon lighting system in Spain, bigger than Madrid’s.
This project has a very important difference to many other things I’m doing. It’s not focused on the big opening day but the completion date is one year later, in 2010. That means we can focus on understanding the problem, building a team, applying a methodology, generating buy-in with the final customer, expliciting the acquired knowledge and incorporating the best practices into the organisation.
We are also going to standardise the application. Coming from a bespoke application, it won’t be easy but my intention is to be able to build an standard that the organisation will be able to use in its 40-something airports. Closed applications are a thing of the past, we all know it but, instead of paying lip-service to it, this time we’re going to do it.
But, what was important is the personal reflection that arose after our working session. Just forgetting fire fighting for a while and listening to somebody that knew a great deal about the system and discussing various proposals of what we could be doing for our initial project viability analysis.
It felt so good. Listening, learning. I’ve been getting these kind of sensations thanks to my Henley MBA, but it was great to have the same sensation coming from an engineer’s discourse. Focusing in the input instead of the output as I’ve grown accustomed to be lately.
We all need to be able to take long perspectives into a project. Be able to plan, and consider alternatives. To flex our creative muscles and deploy our energies into constructing something new, more effective, something built constructively not on the unstable foundations of pressure.
We all need to sit back an listen, as humble as the boy (or girl) we all still carry inside, and learn something from people that know more than us. Be able to capture that elusive gist that will enrich each and everyone of us. Coming humble from humus, or ground in Latin, and humilis from lowly, every manager needs to be humilis habitu humilis et actu, that means humble in dressing (or garments) and in its way of behaving to be able to trascend the manager-administrator role into leading the project’s team to success.
1 comment 12 March, 2009
Back from India (and from a cultural impact)
I’ve just arrived from Delhi. In fact it has been 24 hours but, in the meantime, my mind kept wandering inbetween all kinds of different landscapes, smells and tastes until it settled back again. So many different faces, so many different paces: our hectic effort of preparing a presentation on the club lounge of a five-star hotel, the five-year-old child making his frenzied small monkey shout and dance to attract our attention and a few coins, the slow-moving cow trying to take a nap in the middle of the street and the agitated drivers trying to pass as close as possible. Definitely distances are measured differently in this huge place.
The billion cattle estimated to be alive today are more less one sixth of the estimated human population on Earth. The lucky ones live here, where they are revered and spoiled, where they can live tranquil and blissful lives, where they can thrive and be loved. It’s a wonder that there is no cow immigration process to this beautifully colored lands. If the other cows knew!
Humanity. This word takes new meaning here. So many people. We Europeans have tended to grow aseptic, almost inhumans. We hide within huge buildings of concrete, glass and steel, like the new terminal I’ve nurtured along with my peers, and we become insignificant below our not-so-functional monuments. We want them to serve as a rule to measure our cities and civilisation, instead of ourselves, our little selves.
In India you see so many people, so many happy -and not so happy- faces. The wonder is that it’s not easy to infer which faces will be happy and which won’t. Usually you won’t see that in the colours -or cost- of the robes. Humans… sometimes so happy owning nothing but conceiving nice thoughts… you never know.
This column, blog, page -whatever this is- wouldn’t be complete without the management reflection. And today it comes from Professor Geert Hofstede, of Maastricht University: “Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.”
Are they? I’m personally a cock-eyed optimist and I tend to see the positive side to it. If we kept narrow mindedly to our own culture and background, the learning process would surely be impaired. Nonetheless cultural divergences must be managed.
As a reference, it is very interesting to examine Hofstede’s cultural dimensions, built from a handful of parameters:
- Power distance or the degree of acceptance of the less favoured members of one society of the inequalities they are subjected to.
- Individualism versus collectivism, or the degree to which the members of a society are integrated into groups.
- Masculinity versus femininity, or the degree of distribution of roles between genders.
- Uncertainty avoidance or degree of tolerance to uncertainty or ambiguity.
- Long-term orientation versus short-termism.
As an example, the former dimensions applied to the Indian, Spanish and British cultural dimensions, according to the available data by Hofstede. Of course generalisations are unfair, and the Spanish profile was never actually completed, but the exercise is still interesting.
4 comments 22 July, 2008
From Madrid to Barcelona’s olympic port (and a captain)
Some weeks are so hectic that you simply don’t have time to write. And if you do, it’s not because you’ve had the chance to sit back and reflect about something, but because you have some free time in-between things to be done. That’s the case for today: a few free minutes.
The day began in Madrid, in the Indian embassy, queuing for such a simple and stupid thing as a visa. It’s incredible how certain processes are still done as the last century, or even the previous one. The fact is that if you want to travel to India from Barcelona, first you must go to Madrid to get your visa. The alternative is waiting around three or four weeks to have it.
And if you went there without a warning, you’d be astonished to know that they only issue a limited number of visas, clearly outnumbered by the people that need them. So the queue starts around two hours before they open. By the time they unlock the doors, there’s enough people waiting to fill the entire waiting room. If you arrive at ten, just forget the visa. Come back tomorrow (in Spanish “vuelva usted mañana” although the Indians speak more English than Spanish). And that’s the only way for the 46 million inhabitants of Spain to visit the 1,100-million-people country.
Well. I finally made it. I was sixth on the line. Then, to the airport to take a plane back to Barcelona. And from the airport to one of Barcelona’s marinas: the Olympic port, built for Barcelona’s Olympics 15 years ago.
From air planes to boats: time to sail. That’s why I am here for. I am to renew my sailing licenses and, following legal requirements, I need several navigation hours with a captain instructor. A good way to ensure that people actually know about boats before granting them the right to sail them. That’s what I am here for.
Time for the final comment. Where is management in all this? Well. Ask it to Captain Marcos Rivera. In a ship, there’s only one captain. Such affirmation is something that we tend to forget. Authority is not a very popular value these days. It is still necessary nonetheless. Someone has to decide. There must be someone in charge, asessing the risks, analysing and drawing conclusions, and then, finally, deciding.
That doesn’t mean that he (or she) is the only one to think. That would be a great loss of value, rationality, thinking capacity, a loss of options. Empowerment is still essential (and compatible), as it is dissent. But there’s a limit to it. And when the captain decides, the others must follow.
Have you ever felt that, in a project or a workgroup, the problem was that the decisions were not actually being made? Or being enforced? Have you ever felt that authority was missing? That indecision and ambiguity was undermining the whole execution? That’s when a good methodology for making decisions is needed.
There’s a time when every task becomes critical: just give it enough wandering time and you’ll see. IT comes a time when further procrastination is no longer possible. That’s when a chieftain is needed.
1 comment 9 July, 2008
After the final exam (aka after the storm)
The exam was really stressful. More than three hours writing like crazy. At the end I was rather confused, not really sure of what to expect. Fortunately, it was over.
I sat the exam at Barcelona’s British Council. I thought it would be a better experience than taking a plane and driving to Henley. It was a good idea. The place is just ten minutes from home.
On the other hand it was rather weird to be the only one taking the exam. The invigilator was there only for me. At least he was nice and had a thick book to read so he didn’t spend three hours glancing at me in suspicion. That would have been awkward.
Half full or half empty, who knows. I hope I pass. In the meantime I just need some time to relax. And that’s what I did on the weekend. The garden needed my attention so I just focused on trimming the bushes and getting tired. Oh my, my arms got so bruised!
The view from home is rather relaxing. The weather wasn’t perfect. It was the fourth rainy weekend after the most severe draught that I can recall. From scarcity to the most rainy May in 25 years. Our water reserves have tripled and reservoirs have reached 60% capacity. It looks like we’ll have enough water for the time being.
I like it when the beach is almost empty, and the showers scare the tourists. The calm seems to envelope everything, the air is fresher, the plants greener. This spring the plants are blooming like never before. Let’s forget about the price of oil, the high interest rates, the lack of liquidity and the forthcoming stagflation. It’s time to enjoy… at least for a while…
The garden this year is full of Mediterranean roses. The plants grow by the hour. A good omen? I hope so.
4 comments 10 June, 2008
Living with the Terminal 5 syndrome
As the average reader of this blog knows, and wordpress knows such individuals exist to my amazement (THANK-YOU), I do several things in my job, one of them is the integration of the baggagge system in the Terminal South (or Terminal D) in Barcelona’s airport.
Well, it used to be one of them… but it has been growing and growing, absorbing my time and effort, sometimes with complex things, of course, but very often with little and silly things, sometimes simply to overcome the lack of communications between parts in a huge project, sometimes just repeating the same things again and again.
Organisations prepare themselves to manage projects. They start shyly with one and, if they are able to envisage an strategy, they include project management into their capabilities. There are models to describe how project management competencies are integrated into organisational capabilities. Different organisations are at different levels, and thus are able not only to manage projects but also to increasingly learn from them.
But, at the end of the day, panic happens. That’s when they forget everything and start to triple-check everything based on the gut feelings of people, high enough in the ladder, that don’t really know about the systems to be implemented. Trivial things get inflated and strategic things suddenly obviated.
That’s what has happened to me with the Terminal 5 syndrome (to know more about Heathrow’s Terminal 5 click here). It will take some time to settle. In the meantime some issues have been enshrined as the most relevant by the organisation and are draining a lot of resources. Yes, organisations are able to learn a lot about project management but, when panic starts, they sort of regress to a previous state, top level managers want to micromanage what they still don’t know anything about, and reality gets distorted to adapt to the top management expectations.
A hard critique? Fortunately the tide is just a tide and we will be able to focus the existing energies on the real issues… having top management’s attention is very helpful as long you can manage it in the right direction, and to help you instead of interfering.
Add comment 29 May, 2008
Learning from Terminal 5 (Interviewed for the Times)
I was interviewed by Widget Finn for the Times, and she wrote the following article:
The disastrous debut of Heathrow’s Terminal 5 was a nightmare experience for all involved, but for Gabriel Mesquida it has proved a valuable live case study for his MBA dissertation.
Mesquida is a programme manager for Aena, the Spanish equivalent of British Airports Authority, that is in charge of the expansion of Barcelona’s airport. He is responsible for the coordination of projects in the information systems, communications and security programmes. His dissertation for the distance-learning MBA that he is doing at Henley Management College is on managing airports for the future, so he is watching carefully how the Terminal 5 saga unfolds.
He says: “Our terminal is similar in size to Heathrow, which is considered the plane capital of Europe, and I visited T5 several times when it was under construction. I was impressed, at the time, by how much detail they were going into over safety and they were scrupulous about everything.”
But when the terminal opened it became apparent that there would be other useful lessons to be learnt – including how to manage a meltdown. “An MBA has a foundation of theory but it should be practical, so having a live case study means you can watch events as they unfold and draw conclusions from them.”
The conclusions may be different when the case study is current rather than from a textbook comments Dr Richard Barker, director of MBA programmes at Judge Business School. He says: “One of the benefits is that you don’t know the outcome, which simulates the management situation more effectively. With a five-year-old case study there’s a result to the story which is difficult to escape. You can look at different options that management had at the time but knowing what happened influences your ability to assess the case.”
Mesquida is already putting into practice some principles of leadership from his MBA that were highlighted in the Terminal 5 episode. He says: “Resources are important, but people are far more so and leadership is everything when you have a flock of people wandering around a huge new infrastructure. However carefully you prepare, the unexpected can happen, and that is when your staff should have the flexibility to use their initiative. If the company has a blame culture people will be reluctant to take risks or do anything except cover their own backs.”
Durham University Business School uses live case studies in boardroom simulation exercises where students focus on a real company. Dr Julie Hodges, director of MBA programmes, explains: “They look at the strategic data, where the company is now, what challenges and issues it’s facing, then students come up with recommendations based on the information.” But textbook cases also have their value. “These give an historical perspective so that the issues can be put into context. More data is available and we can identify the medium and long-term lessons.”
Textbooks’ case studies are polished, tried and tested so they are easier from a teaching viewpoint. Barker points out that they are also pigeonholed into subject areas. “They may be labelled a strategy or marketing case, which isn’t always obvious when you’ re trying to deal with something in the boardroom.”
He can predict some of the labels that will be put on Terminal 5. “I see it as an operations management case – make sure your operation works before you start overloading it, or a people management case – train your people properly and handle recovery situations effectively.”
Mesquida agrees that more lessons will emerge from Terminal 5 as time goes by, but together with his MBA learning, it is already shaping his decisions for Barcelona airport. He says: “We need performance indicators and a more systemic approach. Stakeholders and users shouldn’t have the impression that you’re out of control or they’ll feel abandoned. They must be kept fully informed of what’s happening and how you plan to remedy the situation.”
Terminal 5’s launch onto the world stage may have been a fiasco but, clearly as a learning resource for business students, it will run and run.
Thank-you Widget 
9 comments 15 May, 2008
Pfeffer’s thirteen practices for managing people
In these days of reviewing information, I came across a classic (yet again) and I thought I could share it with you, albeit in a summarised form. These are Jeffrey Pfeffer’s thirteen practices that any manager should take into account. Of course they express a certain point of view based in a set of assumptions, but even without their context is quite safe to assume that all of them are sound propositions. The following interpretation is, of course, only my interpretation.
Jeffrey Pfeffer is a professor of organisational behaviour at Stanford Graduate School of Business.
- Employment security because if you want commitment, make sure you’re sending the right signal, otherwise don’t expect people to be loyal to the company while their peers are being laid off. If long-term trust has to grow, it must have a solid basis.
- Selectivity in recruiting which is not only for the obvious reason that we need good employees, but also because people like to be in a restricted club, to belong into an elite. From high expectations high performance might grow, but not otherwise.
- High wages are a measure of how the organisation values its people. Given the fact that labour costs have diminished their share of total costs, it may still be possible to pay reasonable wages in many companies that have chosen not to do so. Let’s not forget that wages come in many shapes and sizes, and it’s not only money they entail but also recognition, fair treatment, or that extra help for personal circumstances. Or aren’t we asking the employees for that extra mile?
- The pay should be related to the company in the way of an incentive pay. It could be tied to benefit, or the economic value added in any unit. That way we have remuneration aligned with strategy and a lot of self correcting processes may happen all along the organisation.
- Employee ownership of shares is another way to align employees with shareholders, to transmit a long-view perspective throughout the organisation. In this sense it’s important to remark that employees will have a conservative approach with its shares, protecting the company from outsiders or standing in the way of market efficiency, that depends on the point of view applied.
- Information sharing is also important. Do you want employees to share the company’s concerns while being in the dark at the same time? It doesn’t sound reasonable to me… and probably at the same time our competitors, that also know a great deal about our (and their) business, already have the information.
- Participation and empowerment is a long forgotten one. We all talk about participation, but we do not actually put the measures in place to enable empowerment. Don’t treat people as dumb followers and then expect them to have initiative, to be entrepreneurs in the face of danger. They won’t.
- Self-managed teams mean that people will have to actually manage themselves, and thus will have to find the way to co-ordinate and monitor what’s happening. But don’t just leave them alone and blame them in case of danger, exerting even more pressure than what they have, try to help them instead.
- Training and skill development is also a tricky one. In order to enable workers to use their new abilities, the organisation needs to learn and evolve too. Don’t try to improve the skills of a mouse in a box but give it a nice maze instead. Align responsibilities with the development of the abilities needed, and then make both accountable.
- Variety can be boosted with cross-utilisation and cross-training, and variety can be another way to reward people and to help them learn. It also gives the company a chance to improve job design and job transitioning, which, if trained, can help easing the company’s pain when losing a talented employee.
- Symbolic egalitarism is one that could be argued against in many places as it might go against rewarding certain things (eliminating symbols will probably be resisted everywhere), but it also enables the organisation to increase the fluidity of its information: the sense of equality and community unites people, and united people talk more, think together and face the challenges united.
- Wage compression also relates to egalitarism. While it seems it might be against “high wages” it is not, because it’s referring to reducing the distance between the management elite and the rest of the organisation and will spread the feeling of common purpose. Thus, less energy will be spent to fight for individual privileges and more in the well-being of the whole company.
- Promotion from within is an additional reward that glues the organisation together and takes trust up to more senior levels of the organisation. People that come from the bottom of the ladder care about what they are managing, as opposite to seeing cold figures. On the other hand it can be argued that the zero based unemotional approach is also useful for an organisation as well as new practices brought by new entrants.
Add comment 12 May, 2008
Want someone to do something? You’ve got to go first! (and be accountable)
Have you wondered what actually makes a good manager? Is it something that is taught at business schools or is it something more?
Why some people have that ability to make others follow them and others do not? Is it credibility that makes people follow you? How can you grow trust and dependability.
Well, there’s no easy recipe based on power point files or blog passages, but there’s a couple of things that always work:
- Because you care, and people know that you care.
- Because you also do it, and not in some kind of gimmick, but wholeheartedly.
When you care and you lead, people will follow.
Given that, it makes me wonder how is it possible that organisations spend so much money in education and training, and so little effort in following how people really behave, how they lead, how they care.
There’s a because to that: we always prefer what is measurable.
Tell it to Kaplan and Norton when they were conceiving the balanced scorecard! Hard financial measures versus soft data such as feelings and perceptions. The hard data is in the books, in the balance sheets. It’s already there, and relatively undisputed and objective. It’s the easiest building block for the diagnose of the company. But it’s only a single point of view, and focused on what has already happened, focused on the past.
In education is exactly the same: it’s always easier to stop at the happy questionnaires at the end of the seminar. Albeit they only take soft measurements, they are easy to gather.But what do they actually gather? They are also focused on the past, on the educational experience, on what has already happened. The rear view mirror.
Following the application of what has been learned at the latest educational experience should be a must for every company. Why throwing away all that investment if you don’t measure the results? Accountability should be the norm for everyone that learns something.
That’s the deal: your company has channeled a lot of resources to give you a chance to learn, now it’s your turn to change, improve, to change the way things are done around you. You change yourself, make yourself accountable for the change, and then it shows.
Add comment 19 March, 2008
Human capital versus organisational capital in practice (caring about people)
In light of a recent experience (yes, I’ve been rather busy these days) I’ve been thinking about the difference between human capital and organisational capital (organizational at the other side of the ocean, of course) and how that difference impacts into everyday work.
Let’s first use the books. When defining human capital, Bontis et al. propose the following:
Human capital represents the human factor in the organization; the combined intelligence, skills and expertise that gives the organization its distinctive character. The human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the organization.
While if we focus on organisational capital (also called structural capital), and quoting Yondt this time:
Organizational capital is the institutionalized knowledge possessed by an organization, which is stored in databases, manuals, etc
As you can see there’s a difference there, a huge difference. This difference can be named as the human factor. For there’s a difference between the knowledge that the organisation owns and contains, and the knowledge, skills and abilities that every worker possesses. It’s not only a matter of accounting these different sets of knowledge as assets or not, as I reflected in my last post HRM and the triple bottom line (do we really believe in people?), there’s much more than that: the effective use of that knowledge is far more important.
Because the employer-employee is not a simply-transactional one-way relationship (at least we can say it no longer is) but a sophisticated dialogue between different entities, an usually effective interchange inserted in the complex framework of the psychological contract.
The psychological contract is a useful construct that reflects the true relationship of the employment contract as assumed by the different parts: what we really expect, what we have understood we should expect, how we agree our post has been designed and our responsibilities are, and many other things that, albeit not written anywhere, are, sometimes unconsciously, stored in our minds.
If our psychological contract is breached, what will become of our knowledge? It won’t be as readily available to our company as it used to be. In fact that’s a moment where the organisational capital will be as available as always, but the human capital simply won’t.
The human factor means that we can make choices. And the drive of those choices can range from self-interest to commitment to your organisation. This commitment modulates the real availability of human capital for the organisation.
That’s why treating people right is so important. In a zillion of a second the most committed employee can turn into an alien counting the minutes until eating-time. And it is, and will be, the responsibility of her manager to make the right decisions, in the right timing, and using the right way to do things, whatever that is.
You can’t be a good manager without caring about people. You simply can’t. As good engineers must love the systems they are designing and good teachers must love what they teach (and children too), people that are managed must matter to the manager. There’s no other way.
Add comment 6 March, 2008
