11 May, 2011

Kloppenborg, T., Tesch, D. and Manolis, C. (2011). Investigation of the Sponsors Role in Project Planning.

Kloppenborg, T., Tesch, D. and Manolis, C. (2011).  Investigation of the Sponsors Role in Project Planning.  Management Research News, 34(4), 1 - 31.  Retrieved on February 2, 2011 from http://www.emeraldinsight.com.ezproxy.usq.edu.au/search.htm?st1=project%20initiation&ct=all&go=Go&


Introduction
Project leaders emerge as the individuals who take responsibility for ensuring the success of the entire project.  Strong organisational skills depict projected success. Support and backing is essential to mobilise the community.  Research indicates that initiation, planning, implementing and closure are significant stages in project management, but not much has been written about the activities or tasks that are embodied by leaders in their role of executive sponsor.


This paper researches the behaviour of sponsors during planning stages.  Critical analysis of established practice linked sponsor behaviour with project results.  The paper is organised thus: section one outlines the current role of sponsors; the method of research used, followed by empirical analysis of the results.  Conclusions and the discussion drawn from the results propose recommendations for sponsors.


The project sponsor
Sponsors provide financial backing for the project, which is more than a provision of resources.  Sponsors are key decision makers who locate stakeholders to share the role of delivery, and stakeholders to hold shares.  Project managers and sponsors are responsible for creating an environment that encourages open communication and relationships based on the concerns and issues of the group.


On exploration, two hypotheses highlight that: project sponsorship can be characterised as external client-based activities and internal supporting function; and the more effort a sponsor dedicates, the more apparent the perception of success.  Three factors of exploratory analysis are:
  1. external stimuli (client activity);
  2. internal stimuli (supporting activity); and
  3. championing both together.
The results show a framework that is supportive of both external and internal focus.  Project sponsorship may be seen as a multi-dimensional structure that maximises project success when the role of sponsor has been defined and determined so there is no ambiguity about direction and sustained activity.


Sponsors are entrusted with the responsibility of overall activity for the project to support and direct achievements towards the objective.  Strong external alliances facilitate internal activity and communication.  Ensuring a shared vision with the project manager stabilises practice that provides the framework of collaboration.


Sponsor capacity is enhanced when identity integrates experience with status and socio-economic-political backing to make significant professional connections.  The ability to communicate and deliver this network, motivates and inspires group members to align with the objective.


Project planning stage
Initiation, planning, execution and closure are seen as phases of development that each project must meet through requisite deliverables.  The initiating stage has been described in earlier research.  Sponsor activity, while diverse, is more intensely felt during the planning stage post-project charter approval.  The end stage of project planning is an undetermined boundary as execution occurs during planning.


With focus on planning activities, merit is based on how well deliverables integrate with the plan as this moderates success in all four phases.  During active planning all factors should add up to the success of a project, staffing and trouble-shooting issues not withstanding.


Each project has its own unique feature making it difficult to assess exactly what will be needed.  In a study that examined the relationship between planning efforts and project success, results indicate that project success relies very little on management activity and surrounding technology.  Success correlated positively with developing and delivering technical specifications.  Focused organisational skills facilitate and propel project goals.


Internal information communication systems are vital to the success of a project and the way top management use the system makes an impact during project realisation.


Each phase of project development has different requirements.  Success criteria for one phase leads into the success criteria of the next.  Criteria in planning account for the approval and commitment levels of stakeholders, the security of financial backing and a core that supports and nurtures the objective.  Factors critical in planning are developing stakeholder priority, ensuring available resources, competence and effective leadership.  For the purposes of the study, these factors were numbered and prioritised.  Competency in project planners emerged as the number one priority.


Dimensions of project success
A method for measuring system performance expands the concept of time, cost and performance.  Furthermore, details take into account satisfaction constraints. The system was viewed from an external perspective.


Project success reflects many attributes.  When considering cost, schedule and performance, it was previously assumed that projects could deliver well on two of the three measures.  Latterly, performance has come to mean quality in scope and project deliverables.  In this frame are three dimensions:
  1. meet design plan;
  2. benefit clients; and
  3. retain commercial success.
Time is used to consider the effectiveness of a project - is the current status of a project a valid representation of its potential?  Will it continue to accrue new business or opportunity?  Relevant dimensions to consider are project efficiency, impact to client, business success and realistic future targets as they relate to stakeholders.  Holistic aspects of measuring the success of a project include what was learned, its value and how useful it was to the system.

Vision describes the forecast of a planned future that allows individuals to activate the plan with comprehensive meaning.  Visions are necessarily easy to communicate, provide inspiration and motivation, and retain credibility to create a lead team to work smarter.

Necessary conditions for project success include a pre-determined criteria that has met and meets with stakeholder approval to ensure collaboration between sponsor and project manager.  Relevant and consistent information supports the flexibility to insert coping mechanisms during the unforeseen.  Guidance from the sponsor is a necessary activity.  Commensurate interest levels direct sponsor behaviour, hence responsibility for the project lies with its owner.

An earlier study into the role of sponsor behaviour during initiation identified three multi-item measures that promote project success.  This paper embraces what has previously been identified and validated to clarify the understanding required to lead sponsor activity during planning.


Research objectives and methodology
The authors tested identified sponsor behaviour with project results and predicted that planning behaviour significantly correlated with past experience.

Identifying sponsor behaviour
The research database provided sufficient information to extract eighteen types of behaviour that are associated with steering teams and sponsors during project planning.  New research extracted additional behavioural patterns.  Altogether, fifty six behaviours were evaluated by eighty practitioners, a large percentage of whom were certified project management professionals.  A process of elimination ensued when examined according to the Method for Priority Marking as MPM reduces and categorises language data.  The respondents identified thirty eight types of behaviour that supported project success.


The sample, procedure, and measures
To validate and test the list, a sample study of 145 respondents who represented project management professionals with active connections to a learning base was used.


The respondents were sourced from various areas of industry (e.g. consulting, manufacturing, healthcare, education, government, engineering, construction, retail, service, utilities) and more than half indicated that the life cycle of projects averaged one year.


Respondents were asked to incorporate behaviour that drives a successful project, beginning with a charter that seals commitment to a plan ready for implementation.  The description of the framework included a high ranking executive sponsor interested only in project results and the associated budget.


A survey involving the 38 sponsor behaviours was distributed for analysis.  The respondents were asked to prioritise the list according to relevance (e.g. 1 - strongly agree ... 7 - strongly disagree).  The survey included outcome statements that respondents used to correlate project success with sponsor behaviour.  


Based on principle component analysis, the authors identified 5 behaviour and 3 outcome variables.  Cronbach coefficient alphas computed internal-consistency reliability.  Sponsor behaviour factors are:

  1. have a tight plan - shared vision on objectives, internal stability, discourse, leadership and endgame;
  2. communicate plan through vision - clarity of expectations, delivery, issues and solutions;
  3. professional unity - responsibility in maintaining internal connections, stakeholder ownership includes involved participation;
  4. project champion - social and core identity are integrated; and
  5. diversify - identify and locate the project manager.
Outcome factors are:
  1. projections of the future - viable commercial success with opportunity to remain abreast of global patterns;
  2. deliverables and schedules match - projected budget is relevant, commitments are upheld; and
  3. commitment to client - ensuring deliverables match technical specifications.

Results
The authors found six separate sponsor behaviours that affect project results.  Heightened awareness brings in to focus the strategy of planning ahead to align the group (e.g. forewarned is forearmed).  How well a sponsor communicates strategy to a group corresponds to the levels of success attained.  The behaviour of sponsors during planning stages is directly linked to project deliverables and schedules.


When a sponsor clarifies intended output the effect can negatively position the groups' future.  The findings suggest that during planning, the sponsor directs project deliverables to a closed network that reduces future viability (e.g. improved market share).  Furthermore, developing deliverables according to sponsor specification temporarily reduces the client base.


The last two behaviours the authors listed were the benefits of having a strong group culture and the delegation of operations and future transmission to a project manager.  If the client is involved during the planning stage a better future can be predicted.  The addition or replacement of a project manager predicts similar outcomes.


Discussion
This paper links sponsor behaviour during planning to project outcomes as part of a continuing study that previously tested sponsor behaviour during initiating with project outcomes.


There are three consistent outcomes that measure project success.  This achievement depends on the standard of performance during the project.  The initiating and planning stages co-create a level of expectation that conceptualises project outcomes.  The enormity of the task is often under-appreciated until later (e.g. client waits for project deliverables, measuring the commercial success of a project requires time to assess market penetration).


There is a significant difference between initiating and planning stages.  The perspective taken during the initiating stage is that the sponsor and project manager use core team members to plan a strategy of agreed action (e.g where the scope of work is drafted without detail, a.k.a soft-circling).  The planning stage takes the perspective that stakeholders gain relevant and necessary information to generate comprehensive detailing within the framework according to financial capacity and schedules (e.g. where the scope of work is broken down into process and activity, a.k.a. hard circling).


The amount of detail accumulated depends on the stakeholders involved which places emphasis on the different demands that a sponsor can expect.  During initiating, sponsors are expected to establish, align, define and prioritise stakeholders.  During planning, sponsor behaviour includes five factors:

  1. stick to the plan;
  2. set a known standard for deliverables;
  3. keep professional unity strong;
  4. employ a project manager; and
  5. champion the project.

There are a total of 31 items in the first four factors.


Meeting agreements
Ensuring there is a plan is the only sponsor behaviour to affect meeting technical specifications.  Better planning leads to levels of organisation that increase performance.  The following is an analysis of behaviour items that ensure planning and the relation it bears to meeting agreements.


The items include aspects of project planning that consider principles, discourse, flexibility, project goals and deliverables, also known as emotional quotient.  Sponsor behaviour translated into verbs describes the activity sponsors focus on: "do, help, lead, ensure and validate" (pg. 17) where 'doing' includes establishing expectations and development reviews.  The other factors focus on the leadership skills required to co-create and validate the framework with a project manager.


Customer success
Stabilising variable client success outcomes depends on meeting needs and producing deliverables that are of value.  When meeting technical specifications, attention is required to understand the variables that the client places on outcomes, therefore including the client during planning directs deliverables towards a satisfactory result.


Firm's future
The focus on this outcome factor concerns business development and market share associated with clarifying the objective, stakeholder participation and the appointment of a project manager.  Stakeholders engage actively when learning trajectories or the conceptualisation of a sequence of events is made available.  Building and aligning stakeholders improves the quality of the communication network over time which minimises the cause of doing the same work more than once.  The planning stage includes self-verification processes that strengthen the relationship network so that all stakeholders agree and commit to the planned objective and proposed method of activity.  To guard the future, focus includes capitalising on project outcomes and the potential to secure market share.  Knowing the demands of a group heightens situation monitoring.


The terminology used when appointing a project manager has negative connotations as it has been associated with initial project mismanagement or poor management performance.  Good management practice is connected to project success.


Conclusion
Sponsors are executives interested in gathering a portfolio of successful projects. Timing activities to reach a satisfactory closure is paramount.  Adopting behaviour that is associated with establishing and implementing a planned objective positively enhances favourable project outcomes.  Included in planning is investment in stakeholder relations.  Sponsors who also assume the role of project manager decrease levels of success.  Having a project manager delegate responsibility increases successful outcomes.


The participants of this study were active members of their profession and had a diverse range of experience in project management.  The authors question the potential of seeking a different demographic to understand comparisons.  This paper has focused on behaviour specifically adopted during planning.  A study of sponsor behaviour during project execution would prove useful.


This paper is a contribution towards new knowledge on understanding that sponsor behaviour is not static, but modifies to suit project maturity.  As managers are trained in management skills, the authors suggest that similar information be made available for sponsors.

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