Thursday, October 16, 2014

Why You Should Consider Splitting the PM Role

Could your firm use a few more good project managers? It's a tough job and the really capable ones are in short supply. If only you could stretch your best PMs across more projects. Well you can.

Here's how: Divide the PM responsibilities among two people. Create one role that handles the higher-value aspects of project management—serving as primary liaison with the client, developing project strategy, leading the project team, ensuring adequate resource allocation, providing technical oversight, and responding to problems that may arise.

Create a second role that handles the more mundane tasks that occupy most of the PM's time, such as coordinating activities among team members, monitoring work progress, tracking budget and schedule performance, and carrying out other administrative duties normally reserved for the PM. In my experience, these tasks consume 60-70% of the PM's time on a project.

For this arrangement to work well, let me offer a couple suggestions: First, save this practice for your larger projects where there are significant project management hours to divide. Second, don't call either person the project manager. Whenever you're creating a new role (or service, process, etc.), call it by a different name. Some of my clients attempted this by adding the position of assistant PM. But their PMs tended to approach their job much as usual, relegating the assistant PM to mostly menial administrative tasks. I prefer the titles of project leader and project coordinator to distinguish the two roles from current practice.

So why should you consider doing this? There are several benefits:

Enable your PMs to work on more projects. Most A/E firms suffer from having too few good PMs. It limits their ability to win more work, creates bottlenecks in the work flow, and results in more project problems and lost profits. By splitting the PM role into two, you extend the capacity of your current PMs. They spend fewer hours per project, allowing them not only to work on more projects but give greater focus to the higher-value elements of those projects that really require their skill and experience.

Deliver better value to your clients. Clients love this arrangement because they're paying more appropriate rates for the PM tasks performed. Much of the work a $130-an-hour PM typically does on a project can be capably performed by a junior professional under appropriate supervision at $80-90. The savings can even enable principals and other senior managers to take on a more active role in your most important projects (see below). 

Distinguish your firm from the competition. Because this approach appeals to clients, it becomes a significant competitive advantage in winning new work. Your firm is probably the only one offering it. When we first created the project leader/project coordinator roles at my former firm, we were pursuing work with a new client where the key decision maker had a previous relationship with one of our principals—when he was still managing projects. We gave him the role as project leader and won the job. Our project coordinator then performed most of the PM tasks at half the principal's rate. I believe this arrangement also contributed to several subsequent big wins for our firm across the country.

Provide hands-on training to your future PMs. One of the things I am most proud of from my time as operations manager is my role in helping prepare our younger professionals become the competent PMs they are today. They benefited from serving as project coordinators, where they performed the bulk of PM tasks without the risk of taking on the more difficult aspects of the role. They did so under the guidance of the project leader who also showed them how to handle the high-end elements of project management.

If you're wondering if this approach might benefit your firm, I'd encourage you to try it on a project or two. Pick a PM—hence project leader—who is willing to embrace the new role. Be sure to clarify the division of responsibilities (which may vary by project) and carefully track the results. Even if you split the PM role only occasionally, it's a strategy worthy of your consideration.

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