Session 2

Front 1

What are strategy cascading tools?

Back 1

They facilitate the translation of business strategy into specific project objectives. Like the financial ratio tree, the balanced scorecard and markides five questions strategy framework

Front 2

What stakeholder tools are there, and can you explain them?

Back 2

Stakeholder maps and power interest matrices

Front 3

What is the aim of project governance?

Back 3

To ensure a consistent and predictable delivery of projects within the limitations set by corporate governance or contracts with partners

Front 4

What is agency theory?

Back 4

Explains that the agent will not always act in the best interests of the principal, and thereby explains the potential for conflict

Front 5

Why may the relationship between principal and agent in agency theory be problematic?

Back 5

Because interests may diverge if both are utility maximizers
Because the principal cannot perfectly and costlessly monitor actions of the agent
Because the principal cannot perfectly or costlessly monitor and acquire the information available to or possessed by the agent

Front 6

What are the two agency problems?

Back 6

The adverse selection problem, that is, whether the principal has chosen the right agent
The moral hazard problem, that is, whether the agent always act in the best interest of the owner

Front 7

What does homo economicus say?

Back 7

That actors are individualistic opportunistic and self-serving. Underlies agency theory

Front 8

What is stewardship theory?

Back 8

Individuals in organizations are stewards when pro organizational collectivist behaviors have a higher utility than individualistic self serving behaviors.

Front 9

What are transaction costs?

Back 9

They arise from running the economic system and occurs when a good or service is transferred between technologically separate stages

Front 10

What is transaction cost economies?

Back 10

The different means to reduce transaction costs in different types of transaction.

Front 11

What is the proposition of transaction cost economies?

Back 11

That firms adapt their governance structure to achieve the lowest expected transaction costs

Front 12

What is a Clan?

Back 12

A culturally homogeneous organization with a shared set of values or objectives together with believes about how to coordinate the organizations effort in order to reach common objectives

Front 13

What kind of control structures exist? - and what do they mean?

Back 13

Markets : control through norms of reciprocity for social behavior and price as information carrier

Bureaucracies : require, in addition to the reciprocity of the market, the legitimate authority of leaders plus the acceptance of hierarchy by members

Clans : require not only reciprocity and authority, but a social agreement on a broad range of values and beliefs

Front 14

What are two mechanisms for getting sponsors to become comfortable with the information about a project?

Back 14

Trust and control

Front 15

What is the technology of foolishness?

Back 15

Stands in contrast with the technology of reason and encourages people to act before thinking

Front 16

What are the five suggestions to the technology of foolishness?

Back 16

Treat goals as hypotheses, treat intuition as real, treat hypocrisy as transition, treat memory as an enemy, treat experience as theory

Front 17

What are the four different project contexts?

Back 17

Simple, complicated, complex and chaotic

Front 18

Describe the simple context

Back 18

Known knowns, fact based management, clear cause and effect relationship, repeating patterns and consistent events

Front 19

What is the leaders job in a simple context?

Back 19

Sense, categorize and respond.
Delegate, use best practices, extensive interactive communication may not be necessary

Front 20

What are danger signals in the simple context?

Back 20

Desire to make complex problems simple, entrained thinking, no challenge of received wisdom

Front 21

How do you respond to danger signals in simple contexts?

Back 21

Create communication channels to challenge orthodoxy. Stay connected without micromanaging, don't assume things are simple, recognize both value and limitations of best practice

Front 22

Describe the complicated context

Back 22

Known unknowns, cause and effect relationships are discoverable but not immediately apparent to everyone. More than one answer possible. The expert diagnosis required

Front 23

What is the leader's job in a complicated context?

Back 23

Sense, analyze, respond.
Create panels of experts. Listen to conflicting advice.

Front 24

What are the danger signals in a complicated context?

Back 24

Experts are overconfident in their own solutions or past solutions. Analysis paralysis. Viewpoints of non experts are excluded

Front 25

How should managers respond to danger signals in the complicated context?

Back 25

Encourage external and internal stakeholders to challenge expert opinions to combat entrained thinking. Use experiments and games to force people to think outside the familiar

Front 26

Describe the complex context

Back 26

Unknown unknowns. Flux and unpredictable. No right answers only emergent instructive patterns. Many competing ideas. A need for creative and innovative approaches.

Front 27

What is the leader's job in a complex context?

Back 27

Probe, sense and respond.
Create environments and experiments that allow patterns to emerge. Increase levels of interaction and communication. Use methods that can help generate ideas.

Front 28

What are danger signals in a complex context?

Back 28

Temptation to fall back into habitual command and control mode.
Temptation to look for facts rather then allowing patterns to emerge.
Desire for accelerated resolution of problems or exploitation of opportunities.

Front 29

How should a manager respond to danger signals in the complex context?

Back 29

Be patient and allow for time and reflection.
Use approaches that encourage interaction so patterns can emerge

Front 30

Describe the chaotic context

Back 30

Unknowables.
High turbulence. No clear cause and effect relationships, so no point in looking for right answers. Many decisions to make and no time to think. High tension

Front 31

What is the leader's job in a chaotic context?

Back 31

Act, sense, respond.
Look for what works instead of seeking right answers. Take immediate action to reestablish order. Provide clear and direct communication

Front 32

What are danger signals in the chaotic context?

Back 32

Applying a command and control approach longer than needed. Cult of the leader. Missed opportunity for innovation

Front 33

How should a manager respond to danger signals in a chaotic context?

Back 33

Set up mechanisms such as parallel teams to take advantage of the opportunities for innovation offered by the chaotic environment. Encourage advisers to challenge your point of view once crisis has abated. Work to shift the context from chaotic to complex.