6 Building Trust: The Key to Exercising Influence

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10.5 Ethics and Project Management

LO 10-8

Understand the importance of building trust

and acting in an ethical

manner while working

on a project.



Questions of ethics have already arisen in previous chapters that discussed padding of

cost and time estimations, exaggerating pay-offs of project proposals, and so forth.

Ethical dilemmas involve situations where it is difficult to determine whether conduct

is right or wrong. 

In a survey of project managers, 81 percent reported that they encounter ethical

issues in their work.6 These dilemmas range from being pressured to alter status

reports, backdate signatures, compromising safety standards to accelerate progress,

and approving shoddy work. The more recent work of Müller and colleagues suggests

that the most common dilemma project managers face involves transparency issues

related to project performance (Müller et al., 2013, 2014). For example, is it acceptable to falsely assure customers that everything is on track when in reality you are

doing so to prevent them from panicking and making matters even worse?

Project management is complicated work, and, as such, ethics invariably involve

gray areas of judgment and interpretation. For example, it is difficult to distinguish

deliberate falsification of estimates from genuine mistakes or the willful exaggeration

of project payoffs from genuine optimism. It becomes problematic to determine

whether unfulfilled promises were deliberate deception or an appropriate response to

changing circumstances.

To provide greater clarity to business ethics, many companies and professional

groups publish a code of conduct. Cynics see these documents as simply window

dressing, while advocates argue that they are important, albeit limited, first steps. In

practice, personal ethics do not lie in formal statutes but at the intersection of one’s

work, family, education, profession, religious beliefs, and daily interactions. Most

project managers report that they rely on their own private sense of right and wrong—

what one project manager called his “internal compass.” One common rule of thumb

for testing whether a response is ethical is to ask, “Imagine that whatever you did was

going to be reported on the front page of your local newspaper. How would you like

that? Would you be comfortable?”

Unfortunately, scandals at Enron, Worldcom, and Arthur Andersen have demonstrated the willingness of highly trained professionals to abdicate personal responsibility for illegal actions and to obey the directives of superiors (see Snapshot from

Practice 10.4: The Collapse of Arthur Andersen). Top management and the culture of

an organization play a decisive role in shaping members’ beliefs of what is right and

wrong. Many organizations encourage ethical transgressions by creating a “win at all

cost” mentality. The pressures to succeed obscure consideration of whether the ends

justify the means. Other organizations place a premium on “fair play” and command a

market position by virtue of being trustworthy and reliable.7

Many project managers claim that ethical behavior is its own reward. By following

your own internal compass your behavior expresses your personal values. Others suggest that ethical behavior is doubly rewarding. You not only are able to fall asleep at

night but you also develop a sound and admirable reputation. As will be explored in

the next section, such a reputation is essential to establishing the trust necessary to

exercise influence effectively.

6



While this survey is a bit old, our conversations with project managers suggest that the results hold true today (J. Cabanis,

“A Question of Ethics: The Issues Project Managers Face and How They Resolve Them,” PM Network, December 1995,

pp. 8–28).

7 For a more in-depth discussion of ethics, see: L. Trevino and K. Nelson, Managing Business Ethics: Straight Talk about

How to Do It Right, 5th ed. (Hoboken, NJ: John Wiley & Sons, 2011).



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SNAPSHOT FROM PRACTICE 10.4



The Collapse of Arthur Andersen*



“Think straight and talk straight”

was the principle on which Arthur

E. Andersen built his accounting firm in

the early 1900s. It was a phrase his

mother taught him and became the

firm’s motto. The commitment to integrity and a systematic, planned approach to work were instrumental

in Arthur Andersen becoming one of the largest and

best-known accounting firms in the world.

According to the book, Inside Arthur Anderson by

Susan Squires and colleagues:

Working for Arthur Andersen was not for everyone.

It could be a tough culture. It was much too hierarchical and top down for the more free spirited. Many

people left after less than two years, believing the rewards did not warrant the demands that were made

on them. Others learned to play by the rules and

some even thrived. To remain in the firm, staff members were expected to work hard, respect authority of

rank, and maintain a high level of conformity. In return

they were rewarded with support, promotion, and the

possibility of making partner. Those individuals who

made a career with the firm grew old together, professionally and personally, and most had never

worked anywhere else. To these survivors, Andersen

was their second family, and they developed strong

loyalties to the firm and its culture. (p. 133)



On October 23, 2001, David Duncan told his Enron project team that they needed to start complying with

Andersen’s new policy on handling audit documents.

The policy had been instituted to make sure that the

firm’s extraneous paperwork could not be used in court

cases. Although the document retention policy required

that papers supporting the firm’s opinions and audit be

retained, it allowed a broad category of secondary

documents to be destroyed. The team reacted with



© Stephen J. Carrera/AP Photo



stunned silence to Duncan’s directive. Then everyone

got up and began racing to do what they had been told

to do. No one asked Duncan to explain further. None

asked whether what they were doing was wrong. No

one questioned whether what he or she were doing

might be illegal. Andersen’s Houston staff just reacted,

following orders without question.

On November 9, 2001, the day after the Securities

Exchange Commission (SEC) issued a subpoena to

Andersen, the shredding stopped. More than one ton of

documents had been destroyed and 30,000 e-mails

and Enron-related computer files erased. According to

Andersen’s legal defense team, the shredding was business as usual. The lawyers claimed that the shredding

was standard practice for eliminating unnecessary files.

To the SEC, it appeared to be the start of a deep coverup operation. Subsequently one of the most respected

accounting firms in the world closed its doors.

* Susan E. Squires, Cynthia J. Smith, Lorna McDougall, and

William R. Yeak, Inside Arthur Andersen: Shifting Values,

Unexpected Consequences (Upper Saddle River, NJ: Prentice

Hall, 2004).



10.6 Building Trust: The Key to Exercising Influence

The significance of trust can be discerned by its absence. Imagine how different a

working relationship is when you distrust the other party as opposed to trusting them.

Here is what one line manager had to say about how he reacted to a project manager he

did not trust:

Whenever Jim approached me about something, I found myself trying to read between the

lines to figure what was really going on. When he made a request, my initial reaction was

“no” until he proved it.



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358 Chapter 10 Being an Effective Project Manager



Conversely, trust is the “lubricant” that maintains smooth and efficient interactions.

For example, here is what a functional manager had to say about how he dealt with a

project manager he trusted:

If Sally said she needed something, no questions were asked. I knew it was important or she

wouldn’t have asked. Likewise, if I needed something, I know she would come through for

me if she could. 



Trust is an elusive concept. It is hard to nail down in precise terms why some project

managers are trusted and others are not. One popular way to understand trust is to see

it as a function of character and competence. Character focuses on personal motives

(i.e., does he or she want to do the right thing?), while competence focuses on skills

necessary to realize motives (i.e., does he or she know the right things to do?).

Stephen Covey resurrected the significance of character in the leadership literature in his best-selling Seven Habits of Highly Effective People. Covey criticized

popular management literature as focusing too much on shallow human relations

skills and manipulative techniques, which he labeled the personality ethic. He argues

that at the core of highly effective people is a character ethic that is deeply rooted in

personal values and principles such as dignity, service, fairness, the pursuit of truth,

and respect.

One of the distinguishing traits of character is consistency. When people are guided

by a core set of principles, they are naturally more predictable because their actions are

consistent with these principles. Another feature of character is openness. When people have a clear sense of who they are and what they value, they are more receptive to

others. This trait provides them with the capacity to empathize and the talent to build

consensus among divergent people. Finally, another quality of character is a sense of

purpose. Managers with character are driven not only by personal ambitions but also

for the common good. Their primary concern is what is best for their organization and

the project, not what is best for themselves. This willingness to subordinate personal

interests to a higher purpose garners the respect, loyalty, and trust of others.

The significance of character is summarized by the comments made by two team

members about two very different project managers.

At first everyone liked Joe and was excited about the project. But after a while, people became

suspicious of his motives. He had a tendency to say different things to different people. People

began to feel manipulated. He spent too much time with top management. People began to

believe that he was only looking out for himself. It was HIS project. When the project began

to slip he jumped ship and left us holding the bag. I’ll never work for that guy again.

My first impression of Jack was nothing special. He had a quiet, unassuming management

style. Over time I learned to respect his judgment and his ability to get people to work

together. When you went to him with a problem or a request, he always listened carefully.

If he couldn’t do what you wanted him to do, he would take the time to explain why. When

disagreements arose he always thought of what was best for the project. He treated everyone

by the same rules; no one got special treatment. I’d jump at the opportunity to work on a

project with him again.



Character alone will not engender trust. We must also have confidence in the competency of individuals before we really trust them (Kanter, 1979). We all know wellintended managers whom we like but do not trust because they have a history of

coming up short on their promises. Although we may befriend these managers, we

don’t like to work with or for them.

Competence is reflected at a number of different levels. First, there is task-related

knowledge and skills reflected in the ability to answer questions, solve technical



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Chapter 10 Being an Effective Project Manager 359



problems, and excel in certain kinds of work. Second, there is competence at an interpersonal level demonstrated in being able to listen effectively, communicate clearly,

resolve arguments, provide encouragement, and so forth. Finally, there is organizational competence. This includes being able to run effective meetings, set meaningful

objectives, reduce inefficiencies, and build a social network. Too often there is a tendency for young engineers and other professionals to place too much value on task or

technical competence. They underestimate the significance of organizational skills.

Veteran professionals, on the other hand, recognize the importance of management

and place a greater value on organizational and interpersonal skills.

One problem new project managers experience is that it takes time to establish a

sense of character and competency. Character and competency are often demonstrated

when they are tested, such as when a tough call has to be made or when difficult problems have to be solved. Veteran project managers have the advantage of reputation and

an established track record of success. Although endorsements from credible sponsors

can help a young project manager create a favorable first impression, ultimately he or

she will have to demonstrate character and competence during the course of dealings

with others in order to gain their trust.

So far this chapter has addressed the importance of building a network of relationships to complete the project based on trust and reciprocity. The next section examines

the nature of project management work and the personal qualities needed to excel at it.



10.7 Qualities of an Effective Project Manager

LO 10-9

Identify the qualities of

an effective project

manager.



Project management is, at first glance, a misleading discipline in that there is an inherent logic to the process. There is a natural progression from formulating a project

scope statement, to creating a WBS, developing a network, adding resources, finalizing a plan, and reaching milestones. However, when it comes to actually implementing

and completing projects, this logic can quickly disappear. Project managers often

encounter a much messier world, filled with inconsistencies and paradoxes. Effective

project managers have to be able to deal with the contradictory nature of their work.

Some of those contradictions are listed here:

∙ Innovate and maintain stability. Project managers have to put out fires, restore

order, and get the project back on track. At the same time they need to be innovative

and develop new, better ways of doing things. Innovations unravel stable routines

and spark new disturbances that have to be dealt with.

∙ See the big picture while getting your hands dirty. Project managers have to see

the big picture and how their project fits within the larger strategy of their firm.

There are also times when they must get deeply involved in project work and technology. If they don’t worry about the details, who will?

∙ Encourage individuals but stress the team. Project managers have to motivate,

cajole, and entice individual performers while at the same time maintaining teamwork. They have to be careful that they are considered fair and consistent in their

treatment of team members while at the same time treating each member as a special individual.

∙ Hands-off/Hands-on. Project managers have to intervene, resolve stalemates, solve

technical problems, and insist on different approaches. At the same time they have

to recognize when it is appropriate to sit on the sidelines and let other people figure

out what to do.



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∙ Flexible but firm. Project managers have to be adaptable and responsive to events

and outcomes that occur on the project. At the same time they have to hold the line

at times and tough it out when everyone else wants to give up.

∙ Team versus organizational loyalties. Project managers need to forge a unified

project team whose members stimulate one another to extraordinary performance.

But at the same time they have to counter the excesses of cohesion and the team’s

resistance to outside ideas. They have to cultivate loyalties to both the team and the

parent organization.

Managing these and other contradictions requires finesse and balance. Finesse involves

the skillful movement back and forth between opposing behavioral patterns (Sayles,

1989). For example, most of the time project managers actively involve others, move

by increment, and seek consensus. There are other times when project managers must

act as autocrats and take decisive, unilateral action. Balance involves recognizing the

danger of extremes and that too much of a good thing invariably becomes harmful. For

example, many managers have a tendency to always delegate the most stressful, difficult assignments to their best team members. This habit often breeds resentment

among those chosen (“why am I always the one who gets the tough work?”) and never

allows the weaker members to develop their talents further.

There is no one management style or formula for being an effective project manager.

The world of project management is too complicated for formulas. Successful project

managers have a knack for adapting styles to specific circumstances of the situation.

So, what should one look for in an effective project manager? Many authors have

addressed this question and have generated list after list of skills and attributes associated with being an effective manager (Posner, 1987; Shenhar and Nofziner, 1997;

Turner and Müller, 2005). When reviewing these lists, one sometimes gets the impression that to be a successful project manager requires someone with superhuman powers. While we agree that not everyone has the right stuff to be an effective project

manager, there are some core traits and skills that can be developed to successfully

perform the job. Eight of these traits are noted below.

1. Systems thinking. Project managers must be able to take a holistic rather than a

reductionist approach to projects. Instead of breaking up a project into individual

pieces (planning, budget) and managing it by understanding each part, a systems

perspective focuses on trying to understand how relevant project factors collectively

interact to produce project outcomes. The key to success then becomes managing

the interaction between different parts and not the parts themselves.8

2. Personal integrity. Before you can lead and manage others, you have to be able to

lead and manage yourself (Bennis, 1989). Begin by establishing a firm sense of

who you are, what you stand for, and how you should behave. This inner strength

provides the buoyancy to endure the ups and downs of the project life cycle and the

credibility essential to sustaining the trust of others.

3. Proactive. Good project managers take action before it is needed to prevent small

concerns from escalating into major problems. They spend the majority of their

time working within their sphere of influence to solve problems and not dwelling

on things they have little control over. Project managers can’t be whiners.9

8



For a practical elaboration on what it means to be a systems thinker, see: Peter M. Senge, The Fifth Discipline (New York:

Doubleday, 1990).

9 For a more extensive discussion of the habit of being proactive, see Stephen Covey, The Seven Habits of Highly Effective

People (New York: Simon & Schuster, 1989), pp. 65–94.



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Research Highlight 10.2

Emotional intelligence (EQ) describes the ability or skill to perceive, assess, and manage the

emotions of oneself and others. Although the notion of EQ emerged

in the 1920s, it was not until Daniel

Goleman published his book Emotional Intelligence

that the concept captured the attention of business

people and the public alike.

Goleman divided EQ into the following five

emotional competences:

΄ Self-awareness—knowing your emotions, recognizing feelings as they occur, and understanding

the link between your emotions and your behavior. Self-awareness is reflected in confidence,

realistic assessment of personal strengths/weaknesses, and ability to make fun of oneself.

΄ Self-regulation—being able to control disruptive impulses and moods and respond appropriately to situations. Self-regulation is reflected

in trustworthiness and openness to change.

΄ Self-motivation—being able to gather up your

feelings and pursue goals with energy, passion, and persistence. The hallmarks of selfmotivation include a strong desire to achieve

and internal optimism.



Emotional Intelligence*

΄ Empathy—being able to recognize the feelings of

others and tuning into their verbal and nonverbal

cues. Empathy is reflected in the ability to sustain

relationships and in cross-cultural sensitivity.

΄ Social skills—being able to build social networks and rapport with different kinds of people.

Social skills include being able to lead change,

resolve conflicts, and build effective teams.

Not much imagination is needed to see how EQ

would contribute to being an effective project

manager.

In Goleman’s view, these competences build on

each other in a hierarchy. At the bottom of his hierarchy is self-awareness. Some level of self-awareness is needed to move to self-regulation.

Ultimately, social skills require all four of the other

competences in order to begin to be proficient at

leading others. Experts believe that most people

can learn to significantly increase their EQ. Numerous training programs and materials have emerged

to help individuals realize their EQ potential.

* T. Bradberry, and J. Graves, The Emotional Intelligence

Quick Book: How to Put Your EQ to Work (New York: Simon &

Schuster, 2005); J. Cabanis-Brewin, “The Human Task of a

Project Leader: Daniel Goleman on the Value of High EQ,”

PM Network, November 1999, pp. 38–42.



4. High emotional intelligence (EQ). Project management is not for the meek.

Project managers have to have command of their emotions and be able to respond

constructively to others when things get a bit out of control. See the Research

Highlight 10.2: Emotional Intelligence to read more about this quality.

5. General business perspective. Because the primary role of a project manager is to

integrate the contributions of different business and technical disciplines, it is

important that a manager have a general grasp of business fundamentals and how

the different functional disciplines interact to contribute to a successful business.

6. Effective time management. Time is a manager’s scarcest resource. Project managers have to be able to budget their time wisely and quickly adjust their priorities.

They need to balance their interactions so no one feels ignored.

7. Skillful politician. Project managers have to be able to deal effectively with a wide

range of people and win their support and endorsement of their project. They need

to be able to sell the virtues of their project without compromising the truth.

8. Optimist. Project managers have to display a can-do attitude. They have to be able

to find rays of sunlight in a dismal day and keep people’s attention positive. A good

sense of humor and a playful attitude are often a project manager’s greatest strength.

So how does one develop these traits? Workshops, self-study, and courses can upgrade

one’s general business perspective and capacity for systems thinking. Training programs can improve emotional intelligence and political skills. People can also be

361



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362 Chapter 10 Being an Effective Project Manager



taught stress and time management techniques. However, we know of no workshop or

magic potion that can transform a pessimist into an optimist or provide a sense of purpose when there is not one. These qualities get at the very soul or being of a person.

Optimism, integrity, and even being proactive are not easily developed if there is not

already a predisposition to display them.



Summary



To be successful, project managers must build a cooperative network among a diverse

set of allies. They begin by identifying who the key stakeholders on a project are, followed by a diagnosis of the nature of the relationships, and the basis for exercising

influence. Effective project managers are skilled at acquiring and exercising a wide

range of influence. They use this influence and a highly interactive management style

to monitor project performance and initiate appropriate changes in project plans and

direction. They do so in a manner that generates trust, which is ultimately based on

others’ perceptions of their character and competence.

Project managers are encouraged to keep in mind the following suggestions:

∙ Build relationships before you need them. Identify key players and what you can do

to help them before you need their assistance. It is always easier to receive a favor

after you have granted one. This requires the project manager to see the project in

systems terms and to appreciate how it affects other activities and agendas inside

and outside the organization. From this perspective they can identify opportunities

to do good deeds and garner the support of others.

∙ Trust is sustained through frequent face-to-face contact. Trust withers through

neglect. This is particularly true under conditions of rapid change and uncertainty

that naturally engender doubt, suspicion, and even momentary bouts of paranoia.

Project managers must maintain frequent contact with key stakeholders to keep

abreast of developments, assuage concerns, engage in reality testing, and focus

attention on the project. Frequent face-to-face interactions either directly or by teleconferencing affirm mutual respect and trust in each other.

Ultimately, exercising influence in an effective and ethical manner begins and ends

with how you view the other parties. Do you view them as potential partners or obstacles to your goals? If obstacles, then you wield your influence to manipulate and gain

compliance and cooperation. If partners, you exercise influence to gain their commitment and support. People who view social network building as building partnerships

see every interaction with two goals: resolving the immediate problem/concern and

improving the working relationship so that next time it will be even more effective.

Experienced project managers realize that “what goes around comes around” and try

at all cost to avoid antagonizing players for quick success.



Key Terms



Emotional intelligence

(EQ), 361

Inspiration-related

currencies, 347

Law of reciprocity, 345

Leading by example, 353

Management by wandering

around (MBWA), 350



Personal-related

currencies, 348

Position-related

currencies, 346

Proactive, 360

Relationship-related

currencies, 347



Social network

building, 348

Stakeholder, 342

Systems thinking, 360

Task-related

currencies, 345



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Chapter 10 Being an Effective Project Manager 363



Review

Questions



1. What is the difference between leading and managing a project?

2. Why is a conductor of an orchestra an appropriate metaphor for being a project

manager? What aspects of project managing are not reflected by this metaphor?

Can you think of other metaphors that would be appropriate?

3. What does the exchange model of influence suggest you do to build cooperative

relationships to complete a project?

4. What differences would you expect to see between the kinds of influence currencies

that a project manager in a functional matrix would use and the influence a project

manager of a dedicated project team would use?

5. Why is it important to build a relationship before you need it?

6. Why is it critical to keep the project sponsor informed?

7. Why is trust a function of both character and competence?

8. Which of the eight traits/skills associated with being an effective project manager is

the most important? The least important? Why?



Exercises



1. Do an Internet search for the Keirsey Temperament Sorter Questionnaire and find a

site that appears to have a reputable self-assessment questionnaire. Respond to the

questionnaire to identify your temperament type. Read supportive documents associated with your type. What does this material suggest are the kinds of projects that

would best suit you? What does it suggest your strengths and weaknesses are as a

project manager? How can you compensate for your weaknesses?

2. Access the Project Management Institute website and review the standards contained in the PMI Member Ethical Standards section. How useful is the information

for helping someone decide what behavior is appropriate and inappropriate?

3. You are organizing a benefit concert in your hometown that will feature local heavy

metal rock groups and guest speakers. Draw a dependency map identifying the major

groups of people that are likely to affect the success of this project. Who do you think

will be most cooperative? Who do you think will be the least cooperative? Why?

4. You are the project manager responsible for the overall construction of a new international airport. Draw a dependency map identifying the major groups of people

that are likely to affect the success of this project. Who do you think will be most

cooperative? Who do you think will be the least cooperative? Why?

5. Identify an important relationship (co-worker, boss, friend) in which you are having

trouble gaining cooperation. Assess this relationship in terms of the influence currency

model. What kinds of influence currency have you been exchanging in this relationship? Is the “bank account” for this relationship in the “red” or the “black”? What kinds

of influence would be appropriate for building a stronger relationship with that person?

6. Each of the following seven mini-case scenarios involves ethical dilemmas associated with project management. How would you respond to each situation, and why?

Jack Nietzche

You returned from a project staffing meeting in which future project assignments were

finalized. Despite your best efforts, you were unable to persuade the director of project

management to promote one of your best assistants, Jack Nietzche, to a project manager

position. You feel a bit guilty because you dangled the prospect of this promotion to

motivate Jack. Jack responded by putting in extra hours to ensure that his segments of the

project were completed on time. You wonder how Jack will react to this disappointment.

More importantly, you wonder how his reaction might affect your project. You have five

days remaining to meet a critical deadline for a very important customer. While it won’t



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be easy, you believed you would be able to complete the project on time. Now you’re not

so sure. Jack is halfway through completing the documentation phase, which is the last

critical activity. Jack can be pretty emotional at times, and you are worried that he will

blow up once he finds he didn’t get the promotion. As you return to your office, you

wonder what you should do. Should you tell Jack that he isn’t going to be promoted?

What should you say if he asks about whether the new assignments were made?

Seaburst Construction Project

You are the project manager for the Seaburst construction project. So far the project is

progressing ahead of schedule and below budget. You attribute this in part to the good

working relationship you have with the carpenters, plumbers, electricians, and machine

operators who work for your organization. More than once you have asked them to

give 110 percent, and they have responded.

One Sunday afternoon you decide to drive by the site and show it to your son. As

you point out various parts of the project to your son, you discover that several pieces

of valuable equipment are missing from the storage shed. When you start work again

on Monday you are about to discuss this matter with a supervisor when you realize

that all the missing equipment is back in the shed. What should you do? Why?

The Project Status Report Meeting

You are driving to a project status report meeting with your client. You encountered a

significant technical problem on the project that has put your project behind schedule.

This is not good news because completion time is the number one priority for the project.

You are confident that your team can solve the problem if they are free to give their undivided attention to it and that with hard work you can get back on schedule. You also

believe if you tell the client about the problem, she will demand a meeting with your team

to discuss the implications of the problem. You can also expect her to send some of her

personnel to oversee the solution to the problem. These interruptions will likely further

delay the project. What should you tell your client about the current status of the project?

Gold Star LAN project

You work for a large consulting firm and were assigned to the Gold Star LAN project.

Work on the project is nearly completed and your clients at Gold Star appear to be pleased

with your performance. During the course of the project, changes in the original scope

had to be made to accommodate specific needs of managers at Gold Star. The costs of

these changes were documented as well as overhead and submitted to the centralized

accounting department. They processed the information and submitted a change order bill

for your signature. You are surprised to see the bill is 10 percent higher than what you

submitted. You contact Jim Messina in the accounting office and ask if a mistake has been

made. He curtly replies that no mistake was made and that management adjusted the bill.

He recommends that you sign the document. You talk to another project manager about

this and she tells you off the record that overcharging clients on change orders is common

practice in your firm. Would you sign the document? Why? Why not?

Cape Town Bio-Tech

You are responsible for installing the new Double E production line. Your team has

collected estimates and used the WBS to generate a project schedule. You have confidence in the schedule and the work your team has done. You report to top management

that you believe that the project will take 110 days and be completed by March 5. The

news is greeted positively. In fact, the project sponsor confides that orders do not have

to be shipped until April 1. You leave the meeting wondering whether you should

share this information with the project team or not.



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Chapter 10 Being an Effective Project Manager 365



Ryman Pharmaceuticals

You are a test engineer on the Bridge project at Ryman Pharmaceuticals in Nashville,

Tennessee. You have just completed conductivity tests of a new electrochemical compound. The results exceeded expectations. This new compound should revolutionize

the industry. You are wondering whether to call your stockbroker and ask her to buy

$20,000 worth of Ryman stock before everyone else finds out about the results. What

would you do and why?

Princeton Landing

You are managing the renovation of the Old Princeton Landing Bar and Grill. The project is on schedule despite receiving a late shipment of paint. The paint was supposed

to arrive on 1/30, but instead arrived on 2/1. The assistant store manager apologizes

profusely for the delay and asks if you would be willing to sign the acceptance form

and backdate it to 1/30. He says he won’t qualify for a bonus that he has worked hard

to meet for the past month if the shipment is reported late. He promises to make it up

to you on future projects. What would you do and why?



References



Abrashoff, D. M., It’s Your Ship (New York: Business Plus, 2002).

Anand, V., B. E. Ashforth, and M. Joshi, “Business as Usual: The Acceptance and

Perpetuation of Corruption in Organizations,” Academy of Management Executive,

vol. 19, no. 4 (2005), pp. 9–23.

Ancona, D. G., and D. Caldwell, “Improving the Performance of New-Product Teams,”

Research Technology Management, vol. 33, no. 2 (March-April 1990), pp. 25–29.

Badaracco, J. L., Jr., and A. P. Webb, “Business Ethics: A View from the Trenches,”

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