Project Management Ethics: Navigating Conflicting Business Interests

Project Management National Conference 2011 PMI India

“Project Management - Ethics
versus business interest, how to
cope with conflicting scenarios."

Piyush Govil PMP®
Vice-President (ITCONS e-Solutions Pvt. Ltd)
Archana Sharma PMP®
Delivery Project Manager (Mpahsis an HP Company)

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Application of Select Tools of Psychology for Effective Project Management


Contents

1 What do you mean by ethics? How many times have you refreshed your concepts about
ethics?.....................................................................................................................................4
2 Do ethical parameters vary from region to region?............................................................4
3 Assembling and Exercising Ethical Values........................................................................5
4 How do you cope with such circumstances? .....................................................................5
5 The Journey Begins............................................................................................................6
6 Ethical Impasse during Execution Phase...........................................................................6
7 Inference from a Project Management Community forum................................................7
8 Ethical Impasse during Pre-Sales Phase.............................................................................7
9 Conjectures by Project Management Community..............................................................8
10 Laying a Foundation for an Unhealthy Business Environment.....................................10
11 Ethical Impasse While Monitoring the Project Health...................................................10
12 Laying a Foundation for an Unhealthy Business Environment.....................................11
13 Conclusion......................................................................................................................12
14 About the Authors: ........................................................................................................12
15 Acknowledgement:.........................................................................................................14
16 Reference:.......................................................................................................................14

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Ethics and business interest are like two contestants striving to stay ahead of the
other to seize their clientele. Amazingly everyone may be wondering how
to recognize who are the potential clientele. Surprisingly, the answer is: we as a
Project Management community are esteemed clientele.

Project Leader’s as a ‘buyer’ encounters Business Interest and Ethics as two
‘sellers’ at each step in the entire life cycle of a project. It is the choice of the
Project leader to choose the seller; however, most of the time their decisions are
driven by the excessive delivery pressure from stakeholders. They lean to
choose the easiest path rather than a complex one, which may or may not lie
within ethical periphery. Being ethically correct always helps in long run.

1 What do you mean by ethics? How many
times have you refreshed your concepts about ethics?

Ethics, by definition, is the code of conduct in which one adheres to when
involved in professional engagements. Ethics and Morals go side by side as the
former is behavior based in professional life and the latter is more person or
human oriented.

2 Do ethical parameters vary from region to
region?

Ethical behavior varies as it crosses geographical boundaries. Behavior by
individual or by group may be ethically acceptable in certain geographies and the
same conduct is absolutely unacceptable in other geography. In the era of
globalization, the project management community carries a huge responsibility
on their shoulders and is also accountable for their ethical conduct. They have to
create equilibrium without jeopardizing the integrity of the organization as a
whole. Multi located corporations; therefore, formulate common ethic polices for
employees wrapping up with best practices across industries that are acceptable
across geographies.

“The most important persuasion tool you have in your entire arsenal is
integrity.” ~Zig Ziglar

Nowadays it looks like every one of us is in some kind of a rat race to stay ahead
professionally. We focus our attention to our conduct and make determinations
based on acceptable and unacceptable ethical parameters. People articulate that
this competitive world does not allow one to take sufficient time to revisit the
conduct or the decisions made due to various compulsions. Is it really complex to

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measure various decisions taken to get new business on ethical parameters? Do
we always have to compromise? It is true in numerous occasions; it leaves many
of us at a juncture where no room is left for a person to evaluate actions.

3 Assembling and Exercising Ethical Values

When we began our educational journey, we were taught moral science to
develop our ethical values and follow the path of ethical conduct throughout life.
When one enters the corporate world, lessons learned in moral science class
helps to instill the code of conduct in one’s professional life.

The code of conduct policy protects organization as well as individual employees
from harm resulting from unethical practice. Basically it is handed over to
employees to refresh moral lessons and provide guidance to handle conflicting
situations.

In contrary to various excuses made to correct judgment, based on the situation,
we would like to bring up an interesting fact. As we grow and move from college
to professional life, every one of us make use of various subjects learned since
our school days. We use mathematical operators to do all sorts of calculations in
preparing estimates, etc. We make use of science topics like physics, chemistry
or biology, and math for innovations to help save life and meet daily demands.
Why does it seem we forget our lessons learned in moral science classes? Is the
act of exercising ethical values so complex? Are we trying to stand ahead of
each other by hook or crook?

4 How do you cope with such
circumstances?

As such, there is no definitive answer or solution to such scenarios. Moreover it
depends on how best the situation is judged by a person and performed based
on the conscience. In some cases Project Leaders refer to related decisions
made in earlier projects. It has also been observed Project Leaders make
decisions based on a general trend in an organization or learn by observing the
decision making methods of reporting managers during the course of their
acquaintance with them. It is really tough for a Project Leader to make a decision
under such circumstances. These decisions should be weighed, balanced and
mitigated for future adverse implications.

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5 The Journey Begins

We intend to present our paper on cases/scenarios collated, based on the
different anecdotes encountered during professional life and inferences from
project management professional forums. Project Management professionals
may find that couple of the cases they have come across at some point of time
during the entire life cycle of the project or career. It is also possible that you
may have never encountered such scenarios. This paper possibly confers an
opportunity to learn and take a vital step, if encountered and geared up with
some corrective actions, when similar circumstances arise.

During the entire life cycle of the project it is obvious that the Project Leaders
may land up in a crisis situation due to various reasons. A state of dilemma and
apprehension to share information, at that moment with major stakeholders
whom could be a client or senior management, may lead to more trouble.
Maintaining transparency with stakeholders always facilitates making the right
decision at tough times and helps build one’s own credibility. It is observed that a
majority of time, when information dissemination is proactively handled, one can
deal with tricky situations with ease. Those who are involved in projects, and are
affected due to crises situations, surely collaborate to sail safely to shores.

6 Ethical Impasse during Execution Phase

An interesting case cropped up during the execution phase of a project: Try to
step into the shoes as a Project Leader in this situation and introspect how you
would muddle through such a situation.

A Case… You are a Project Manager (PM) on a global project 'X' which is a
Time and Materials contract. One of your critical resources resigns and leaves
the project during the particular phase where his skill set is most required.

A Challenge… To avoid any backlash from the client, your PM says not to
apprise the client of the resource resignation. Instead he proposes to use a
relatively new resource, which does not possess the required skill set and
expertise. This new resource would work in the name of the resource that
resigned and also use the email id of the old resource.

A state of dilemma… You are not comfortable in communicating this unethical
decision of your supervisor. What will you do? However, in order to avoid any
business loss you may be forced to continue with what your supervisor says.

How would you cope with the situation where you feel morally compromised?”

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7 Inference from a Project Management
Community forum

When the above scenario was discussed in the Project Management Global
Community Forum, we received remarkable comments from professionals.
Business ethics differs across geographical boundaries. Consequently this
includes expression of thought.

Professionals suggested that this scenario not only falls within ethical boundary;
it can be treated as fraud and moreover, do not hesitate to share that their
country has a law to protect the whistle blower. Quite a few professionals put
forward their views in a modest manner and maintained that transparency always
facilitates the maintaining of credibility and avoids multiplying more unethical
decisions to be taken to hide the first unethical decision.

Professional also shared it is preferable to take your customers into confidence
and put their foot down against the will of the supervisor that made the unethical
decision. In practical terms taking such a stand against a supervisor’s advice is
certainly a brave stand as insubordination may have an adverse effect on
immediate career growth. In contrast, a successful ethical project completion
shall lead to immense learning, while establishing the trust of your customer, for
you and can pave the way for future business opportunities with same customer.

As rightly said, this does not have a decisive answer and thoughts expressed are
all based on individual’s ideology. As an author we ourselves do not have a
remedy. What you think, do you have an answer?

8 Ethical Impasse during Pre-Sales Phase

Today every business faces cutthroat competition with ever increasing new
players. Organizations are not willing to leave any stone unturned to win projects.
To win new clients or get new assignments from existing clientele is equally
difficult due to competition. Winning the existing client’s confidence requires a
job well done with sustained reputation and credibility.

Project management professionals involved in drafting proposals may spend
sleepless nights to prove the Unique Selling Point (USP) of their organization
and work under extreme pressure to win the project work for their company.
When any PM performs under stress with capability at stake and growing
pressure from senior management, there are chances of stumbling upon
questionable values which may hurt individual’s ethical beliefs. As per individual
ideology certain actions may possibly lie outside the ethical periphery; however
at the same time those actions are deemed acceptable to get the business.
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Here, we present another case which everyone may have come across, when
involved during the pre-sales phase in your organization. When no direct
involvement pre-sales team connects to discuss project details to fill in the
technical gaps in the proposals.

A case… “You are a PM and have to submit a proposal for a new project to
client X. You have read the RFP and know that the technology is new to your
organization and skills are not available. However due to organization strength,
you are convinced that the company can hire the skills on demand. As per the
RFP requirement, you have to mention previous projects executed using the
same technology.

Your company has just started the first project using the same technology and is
training resources.

A contest with inner soul…It is clearly stated in the RFP to declare previous
projects executed using the same technology. Though the company does not
have implementation experience, your Director wants you to respond to the RFP
making a claim that you have several projects in implementation stages.

A sticky situation… To win the project bid, you refer to projects executed in
your organization on a different technology by changing the information about
that technology. You also attached the resume of an Architect drafted, at your
end, with the required technology expertise.

This action is unethical. It is fraudulent to state that you have experience where
you do not even though you think what you are doing is in the businesses best
interest.

What would you do in this situation – Business or Ethics?

9 Conjectures by Project Management
Community

When this case was presented to the Project Management Community to solicit
their viewpoint, their contribution was remarkable.

Many professionals commented that the pre-sales team’s aim is to win project
contract as their job is at stake. Due to cut throat competition, and to achieve
their quotas, they have to frame proposals accordingly. Bigger organizations are
sufficiently equipped and capable of acquiring matching skills resources on

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demand and execute the project. To remain profitable in business they have to
showcase their strengths.

Over showcasing can potentially lead to project failure and bring about a bad
name. One has to state a team ramp-up plan, of experienced resources required,
as soon as the contract is awarded with reference to similarities in earlier
projects. This is the best approach and is acceptable in all markets.

A catch 22 situation for a buyer is seen during the selection process of the
vendor. They have to select the best out of all the vendors based on the past
projects and market credibility.

What you think? What will you choose ethics or business? Practically to win the
bid you may choose business, however to execute the project for a successful
completion, you may choose not to leave the ethical track so that you are able to
build credibility with the client.

If you step in the shoes of the client what will you do? When you have to
evaluate proposals, have you ever had brainstorming sessions with similar
questions on submitted proposals? Have you ever had a chance to select the
same vendor, even when you know they do not have the expertise and even
though it is mentioned in the proposal they have the required skills for the
project?

“When a company or individual compromises one time, whether it's on price or
principle, the next compromise is right around the corner and you can bet your
last nickel on it.” ~Zig Ziglar

One other case we observed during the pre-sales meeting between a ‘seller’ and
‘buyer’ of the project. We would like you to step in the shoes of as a PM.

A Case… You are a PM; during your meeting with customer you agreed upon all
the requirements, as you have to achieve your quota numbers and met your
target. You were able to secure the order.

You briefly described the requirement and forwarded the information to the
delivery team. The delivery team found the requirements very simple and
estimated the duration and resources accordingly. Your client is glad that they
will get the product with all the scoped items, on time.

A challenge… When intermediate deliverables begin delivery, the team starts
getting hit. Deliverables were not matching with the client’s expectation and
specifications.

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Discussions started between delivery team and your customer. The Project
Delivery Team argued that the client’s expectation was not in scope. The client,
at this stage, does not agree and puts forward that specifications had already
been agreed upon during the pre-award stage.

A state of dilemma… As a delivery team you have to put forth extra effort.
Resources required must be made available to meet client’s expectations and to
avoid your organization getting a bad name.

10 Laying a Foundation for an Unhealthy
Business Environment

Being a PM your personal goals are not above organization’s goals. To achieve
your quota numbers and in the process making other team deliverables
vulnerable, is not acceptable ethically. This also directly spoils an organizations
name. One has to set goals that are in line with an organization’s goal.

Have you also performed in the similar manner if being part of pre-sales team?
What would be your reactions? Suppose you were leading the delivery team?
Business Interest and Ethics both has a vital role to play, do you agree?

11 Ethical Impasse While Monitoring the Project
Health

Project, by definition, is a unique activity. During the entire life cycle a PM has to
cross many barriers starting from the scope until closuring activities. PM’s have
to engage their stakeholders by constituting proper communication channels to
deliver project deliverables successfully. To keep all stakeholders apprised
proactively, information dissemination is one of the most important techniques of
project management. PM’s have a huge responsibility to maintain various
matrices to monitor the progress and health of the project and share this data
with stakeholders.

A case… You are a PM in ‘X’ organization certified by a software engineering
maturity model body. You are handling a global project and, to meet the
minimum requirements for certification, you have been asked to maintain certain
metrics to monitor the health of a project during its entire life cycle.

The organization’s process team organized regular meetings to record and take
stock of the project requirements. These records are updated for external
auditors and to help project teams make corrective actions in case of lacunae’s.

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The standard matrices provided to you are more appropriate for a development
project rather than support project. Your project is not purely a development
project it is more a support project with enhancements in the client’s existing
system.

Users of the system, at your client’s end, based on day to day experience report
changes which lead to frequent changes for your team. Due to which priorities of
deliverables also changes accordingly.

A challenge… You are facing difficulty to fulfill the organizational need to update
the matrices and to show the data that your project is achieving 100% health.
Due to frequent change request from your client, you have to redefine, and
reschedule activities based on priorities agreed upon between you and the client.

You have a challenge to fulfill the organization requirement by entering
appropriate data into matrices to show health status and progress of your project.
Due to changing priorities your project health on papers does not meet the
minimum satisfactory level for the organizations process group; however, you
and your client are on same page. Your client is highly satisfied with your project
management activities and work progress on defined priorities.

A state of dilemma…To satisfy senior management neither your delivery
manager nor your Software Engineering Process Group likes to differentiate
project kind whether it is development project or a support project. They instruct
or amend suggested changes to the metrics accordingly and want you to cook
data to fit the already existing standard matrices used for other projects.

In the organizational process review meeting nobody tries to understand your
viewpoint and they want you to show data as they see fit. Nobody seems
bothered whether the data is relevant to your day-to-day project management.

12 Laying a Foundation for an Unhealthy
Business Environment

During your appraisal cycle because of your reluctance to cook data, to simply
satisfy your supervisor’s demand, your supervisor wrote unable to meet project
management minimum requirement and your grade was determined on the basis
of appraisal comments.

Should the discussion above be linked with the performance of an employee?
How would you react? What action might you have taken when you are the
supervisor dealing with a similar case? At such junctures why do we miss the

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recalling of our moral lessons whereas we always want to apply mathematical
operators to form the best data to satisfy the need?

“Divorced from ethics, leadership is reduced to management and politics to mere
technique. “

- James MacGregor Burns

13 Conclusion

The project management community carries a huge responsibility for delivering
projects within triple constraints of scope, time and cost. Add to that a quality
wrapper to build their respective nations and to imbibe high ethical values.

Business Interest and Ethics should go hand-in-hand rather than be looked upon
as contestants. Both entities are found standing face-to-face at a number of
junctures. Both claim that they are within their defined ethical periphery.

Professionals engaged in business need to take a balanced approach while
making decisions without compromising on credibility as well as integrity.

***********************

14 About the Authors:

Archana Sharma B.E, MS, ITIL, PMP® Delivery Project Manager
(Mpahsis an HP Company)

Archana has over 16 years spanning 12 years in Telecom Software
Delivery and 4 years in IT Program Management Consultancy & project
Delivery in Banking Domain. Archana is certified ITIL V3 Foundation and

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Project Management Professional (PMP®). She has been associated
with PMI since 2009 has been actively involved in PMBOK fourth edition
review.

Archana’s 16 years of professional journey started from ITI Ltd, further
associated with Daewoo Telecom, Hughes Software Systems, EDS and
currently associated with Mpahsis an HP Company.

Piyush Govil B.E., PMP® Vice-President (ITCONS e-Solutions Pvt. Ltd)

Piyush has over 16 years of experience majorly into software
development Project Management. He has major experience in managing
software products for US Education domain. In earlier days of his career
he has being involved in IT infrastructure management before moving into
IT software development.

He has been associated with PMI since 2007 being member of various
standards team like Program Management, Risk Management Item
writing committee and others. In his current role, he is managing the
Talent Management Software product development to new business
acquisition.

Piyush is founding member of “PMI Ethics in Project Management
Community of Practice” and associated with PMI North India Chapter as
Vice-President- Communication

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15 Acknowledgement:

1. Sangita Garg B.E., M.tech (Senior Consultant)

2. Dr. Sonya Surrett LS, PMP, CLC (Decision Life Coach)

We are honored; they selflessly helped us in reviewing our paper and provided
valuable suggestions.

16 Reference:

http://www.wisegeek.com/what-is-the-difference-between-ethics-and-morals.htm

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Project Management Ethics: Navigating Conflicting Business Interests

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