Beyond the Local Maximum

Project managers are often at the crossroads of ambition and responsibility. They're tasked with steering projects toward success, and to do that, they naturally focus on protecting their initiatives from risks. But while this protective instinct is essential for maintaining project integrity, it can come at a cost - blinkering into the immediate needs of the project at the expense of the broader organisational goals. The challenge for project leaders is to avoid getting too focused on their own project, and instead, look up and out toward the bigger picture.

The difference between simply managing a project and leading one often decides long-term success. Great project leadership involves more than meeting deadlines and staying within budget. It is marked by strategic optimism and organizational awareness. This vision is not just about protecting the project's now. It aims to maximize long-term gain, even if that means facing short-term challenges.

The true essence of impactful leadership lies in its ability to look upward and outward. Optimizing not just for the local maximum, but for the global maximum that benefits an organization. It sacrifices individual interest for the greater good.

The Challenge of Incentive Structures

The heart of this problem lies in the incentives. Project managers are mainly rewarded for the isolated success of their projects. They're driven to meet traditional metrics - adherence to budget, scope, and timeline. These are critical project performance indicators. But they create a siege mentality in managers. They start playing not to lose and adopt a protectionist stance. Managers resist sharing resources. They delay collaboration between projects. They hesitate to change. Even when such actions could benefit the organization at large.

On one hand, this protectionist stance ensures project-specific metrics are met. But, a lack of organizational awareness hinders collaboration and alignment. Good project leaders understand how their projects contribute to the mission and goals of the organization. They navigate the complex dynamics within the organization. They use their projects as tools to drive the organization forward, recognizing that success is about creating lasting value.

Organizational Strain

Research on organizational behavior offers some insight. "Cracking the Code of Change" - a study by Michael Beer and Nitin Nohria's - delves into the complexities of organizational change. They present two distinct theories: Theory E and Theory O.

Theory E emphasizes economic value. It focuses on change driven by the need to increase shareholder returns. This is often achieved through restructuring, cost-cutting, and focusing on financial metrics. Theory O focuses on developing organizational capabilities and culture. It emphasizes employee engagement, long-term learning, and strong internal culture as the drivers of change.

Beer and Nohria argue that neither approach alone is enough for sustainable success. Rather, a balance of both theories offers the most effective pathway to meaningful and lasting change. This requires a nuanced understanding of when to focus on each.

I take parallels to the challenges of project leadership. Just as a balanced approach to organizational change yields the best outcomes. Project based organizations - and their leaders - must navigate this tension. To choose to prioritize project delivery in isolation? Or, delivering projects within an environment that values learning, innovation, and strategic alignment. The right balance can reap rewards for delivery and long-term sustainable competitive advantage. Project leadership cannot be about protecting your own project. It has to look out and lift the organization through strategic, empathetic, and forward-thinking leadership.

Historical Examples of Leadership Bridging the Gap

To address this misalignment, we have to re-evaluate how project success is defined and rewarded. Project Managers should elevate their roles to take a more holistic perspective. It means looking beyond the immediate horizons of a project, to understand how it fits into the larger puzzle. Through a deep understanding of an organization's vision and goals, we can look to other measures for success. Factors such as strategic alignment, contribution to long-term goals, and organizational innovation. This shift cultivates a culture of strategic thinking and organizational awareness. Serving not only their own project, but the organization.

One example is the development of the Boeing 777 in the 1990s, led by Alan Mulinall. Initially as general manager and latterly as chief executive officer of Boeing Commercial Airplanes, he felt immense pressure to deliver the company's largest and most advanced airliner. But, he embraced a collaborative approach, later . It went beyond their immediate project goals. They collaborated with 8 airlines - their customers - in the design process. The design teams also included suppliers and multiple internal disciplines. Each had their own drivers and considerations but they all had a direct input. In taking this approach, they set new standards in passenger comfort and operational efficiency. They sacrificed the short term win of releasing a product, with a view on long to Boeing's broader strategic objectives.

Implications for Modern Project Leadership

This example highlights the importance of project leaders who are adept at navigating both the micro-level demands of their projects and the macro-level vision of their organizations. Modern project leaders can draw several lessons from these insights:

• Goals - Balance economic value and organizational capability. Align project objectives with immediate economic targets and broader strategic aims.
• Leadership - Set direction from the top and engage people from below. Encourage open dialogue across projects and departments.
• Focus - Consider both project and organizational impact. Make decisions that prioritize long-term success and employee engagement.
• Process - Stay flexible. Adjust project goals and strategies as organizational priorities change. Encourage teams to learn from challenges and setbacks.
• Reward System - Incentivize collaboration. Reward project success, cross-project collaboration, and organizational achievements.

Conclusion: Leadership for the Future

The shift from project-focused protectionism to strategic, organization-wide thinking marks a significant evolution in the role of project managers. By aligning incentives with the organization's broader objectives, leaders can promote a more expansive approach to project management, balancing project delivery needs with organizational ambitions.

As a result, project managers become vital contributors to the organization's strategic success, navigating the delicate balance between protection and progression with an eye on the global maximum. This evolution highlights the idea that true leadership is not just about preserving the present but about guiding towards a future state.

In an ever complex world, the distinction between project management and leadership will increasingly depend on the ability to see beyond the immediate, inspiring teams towards a vision that encompasses both local and global optima. By removing the blinkers of a singular project, project leaders achieve their goals and lay the groundwork for lasting organizational success.