1. Mgt 610 Strategic Perspectives on Project Management
Session 3
Project Manager’s Value Mindset
Dr. Thomas Lechler Phone: (201) 216-8174
FAX: (201) 216-5385
email: tlechler@stevens.edu

2. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler. All rights reserved.For academic use only. 2
Session 3: Evidence
1. Success factors describe the constraints of the traditional
project management paradigm, how could a new paradigm
look like?
2. Project value differs from traditional project success. What
are the consequences?
3. A framework for a project strategy will be developed to
maximize project value.

3. Mgt 610 Strategic Perspectives on Project Management
(c) 2013, Thomas Lechler. All rights reserved.For academic use only. 3
Module 3: Agenda
Project Value Management Framework
1. Basics of Strategic Management
2. Project Value Perspectives
3. Project Value Network
4. Project Value Strategy
5. Project Value Statement

4. Mgt 610 Strategic Perspectives on Project Management
Uncertainty Focused PM Perspective
1. Project uncertainty can be managed by seeking,
discovering and exploiting project value opportunities
during project implementation.
2. The project manager is instrumental in discovering and
exploiting project value opportunities.
3. The project manager needs to have a project value
mindset (PVM) to discover and exploit opportunities.
For academic use only. (c) 2013, Thomas Lechler. All rights reserved. 4
Change Focus to Value

5. Mgt 610 Strategic Perspectives on Project Management
Research Framework: Hypotheses
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Exploited Value
Opportunities
Project
Value
H 1 H 2
H 3
PM’s Project Value
Mindset
Project Value Mindset Study

6. Mgt 610 Strategic Perspectives on Project Management
PM’s Value Mindset – Definition
Project Manager’s Project Value Mindset
.. is a mental state involving dispositions and traits resulting in
activities to seek, discover and exploit opportunities
beyond a pre-defined value proposition with the intent to
maximize a project’s value.
Project Value Opportunity
.. represents a potential to exceed the pre-defined project
value occurring during a project’s implementation.
Project Value
.. could be represented by a single or any combination of
efficiency, technical effectiveness and the satisfaction of a
project’s stakeholder.
Project Value Mindset Study
For academic use only. (c) 2013, Thomas Lechler. All rights reserved. 6
Research Framework: Definitions

7. Mgt 610 Strategic Perspectives on Project Management
• 5 key informants per project: Project Manager, Project
Sponsor, 3 key members of project team.
• The U.S. sample includes responses from 387 core team
members, 114 project managers and 95 senior managers.
• Successful projects (104) unsuccessful projects (10).
• New product development projects (20%), software
development projects (28%), constructions projects 10%,
and IT projects (31%) implemented in many industries.
• All projects had a budget of at least $500,000 and their
average duration is 18 months.
For academic use only. (c) 2013, Thomas Lechler. All rights reserved. 7
Research Method: Sample
Project Value Mindset Study

8. Mgt 610 Strategic Perspectives on Project Management
PM Value Mindset – SEM Estimates
Project Value Mindset Study
Exploited Value
Opportunities
R2=.41
Project
Value
R2=.52
.63* (7.49) a
.19 * (2.04)
.59* (5.93)
Strat_Rqmnt
Spec_Rqmnt
Traits
Overachievement
Ambiguity
Opportunity Disp.
.59*
.59*
.65*
.60*
.64*
.77*
PM Value
Mindset
Standardized Path Coefficients of the Structural Equation Model* t-Valuesa
Fit Statistics
RMSEA AGFI NNFI NFI CFI X 2 df
0.002 0.93 1.00 0.99 1.00 14.98 (p=.53) 16
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9. Mgt 610 Strategic Perspectives on Project Management
Conclusions
• PM Value Mindset is important:
• to manage uncertainty,
• and capture project value.
• Project value opportunities occur in situations of
uncertainty.
• Opportunities must be perceived and exploited to
maximize project value.
Project Value Mindset Study
For academic use only. (c) 2013, Thomas Lechler. All rights reserved. 9

10. Mgt 610 Strategic Perspectives on Project Management
• Technical opportunities are less frequent than expected!
• Not every situation of uncertainty leads to opportunities!
Nature of Opportunities
Opportunity Category Opportunities Frequencies
Technology Testing solution 3
Implementation process Monitoring, process improvement,
outsourcing, versioning
8
Project & Business Multiplier, identified new opportunities of
original solution
11
Future Business Project life cycle opportunity, beyond
project
7
(c) 2013, Thomas Lechler. All rights reserved. 10For academic use only.

11. Mgt 610 Strategic Perspectives on Project Management
• 4 cases identifying real opportunities and misperceiving opportunities
• 2 cases having both exploited and unexploited opportunities
• Identifying opportunities is not easy or natural!
• Exploitation of more than two opportunities not observed!
• Very few rejected opportunities!
Opportunity Recognition & Exploitation
Number of Opportunities per Project Frequencies Percentage
One opportunity identified & exploited 15 36%
Two opportunities identified & exploited 7 17%
Opportunities identified but not exploited 2 5%
No identified opportunity 4 10%
Misperceived opportunities 20 48%
(c) 2013, Thomas Lechler. All rights reserved. 11For academic use only.

12. Mgt 610 Strategic Perspectives on Project Management
• Opportunities are mainly recognized by the project managers!
Context of Opportunity Recognition
Stakeholders Frequencies
Board of directors 3
Project steering committee 1
Project sponsor 3
Project manager 15
(c) 2013, Thomas Lechler. All rights reserved. 12For academic use only.

13. Mgt 610 Strategic Perspectives on Project Management
• Business perspective is key to opportunity perception and exploitation!
• Constraint management is constrained to risks!
Project Manager Type
PM Types Uncertainty
misperceived
Opportunity
misperceived
Opportunity
identified by
PM
Opportunity
identified by
others
Technocrat (6) 0% 100% 0% 0%
TC (24)
46% 58% 21% 21%
Business (9)
33% 11% 78% 22%
(c) 2013, Thomas Lechler. All rights reserved. 13For academic use only.

14. Mgt 610 Strategic Perspectives on Project Management
Value Effects of Project Opportunity
Frequencies Percentage
Stakeholder Satisfaction 17 77%
Shareholder Satisfaction 15 68%
Financial Returns 13 59%
Schedule 13 59%
Quality (Performance) 12 55%
Budget 11 50%
Outcome (Specs) 10 46%
Quality (Grade) 8 36%
Non-financial Benefits 6 27%
Other 4 18%
(c) 2013, Thomas Lechler. All rights reserved. 14For academic use only.