The Clearly Podcast

Why Do You Need An Internal PM?

Summary

In a recent discussion, three IT consultants explored the necessity of having an internal project manager (PM). They began by discussing the importance of coordination between internal teams and external partners, noting that without an internal PM, managing resources and time becomes challenging. The signs indicating the need for an internal PM include having numerous stakeholders and subject matter experts, where external partners struggle to influence internal deadlines effectively.

When working on projects, the consultants always inquire about the internal team structure and the presence of an internal PM. They emphasized that the role should not be filled by someone without genuine project management skills and authority. For small projects with dedicated subject matter experts, an internal PM might not be necessary. However, for larger projects with multiple internal responsibilities, an internal PM is crucial to avoid project overruns and additional costs.

Clients should look for PMs who can manage resources and time effectively, have access to internal resources, and are empowered to manage priorities and deliver status updates. The PM should also have sufficient knowledge of internal processes to plan around non-movable events like financial reporting deadlines.

When clients do not have an internal PM, they often look to partner PMs to manage resources. However, it is important to understand that partner PMs may have conflicts of interest, and using an independent contractor might be a better solution. Long-standing relationships can sometimes make partner PMs feel like part of the internal team, but this is not typically the case from the beginning.

In conclusion, both internal and partner PMs are essential for the success of projects. They ensure proper scheduling, resource management, and help avoid costly overruns, making them valuable assets in any project.

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Transcript

Andy: Are we all ready? Everyone bundled up?

Tom: Andy, you're warm in Texas, right?

Andy: Yes, it's 24°C, a bit chilly here.

Shailan: It's much colder here, around 6°C now.

Andy: It was 17°C this morning. I needed a light jacket for my bike ride. My pool was chilly too, at 21°C.

Tom: Let's move on to today's topic: why and when do you need an internal project manager (PM)? Shailan, could you start?

Shailan: We've seen difficulties delivering projects without internal PMs. It's tough to manage internal teams' time and resources because we're not part of their team. Coordination between the delivery side and the client side is essential, and without a PM, it becomes chaotic.

Andy: Tom, what are the signs that a client needs an internal PM?

Tom: When there are many stakeholders or subject matter experts, an internal PM becomes crucial. External partners have limited influence over internal deadlines, leading to conflicts. Internal PMs ensure that internal priorities align with project goals.

Andy: Do you ask clients if they have an internal PM during implementations?

Shailan: Yes, we ask about the internal team structure and key stakeholders. It's important to be explicit about roles, especially the internal PM's role.

Tom: For small projects, an internal PM might complicate things. But for larger projects, especially with multiple internal responsibilities, a PM is essential.

Andy: Clients need to consider the number of concurrent projects and whether they have enough work to keep an internal PM busy. Sometimes it doesn't need to be a full-time role.

Shailan: Internal PMs should not be shanghaied into the role. They need genuine project management skills and authority to manage resources and priorities.

Andy: If you're a client, would you try to manage a project without an internal PM?

Tom: It's tempting to try and save costs, but in the long run, not having an internal PM can lead to project overruns and higher costs.

Andy: What circumstances allow a project to proceed without an internal PM?

Tom: If it's a small project or if the subject matter experts are fully dedicated to the project, you might manage without an internal PM. But if they have other responsibilities, a PM is necessary.

Shailan: What qualities should a client look for in an internal PM?

Shailan: The PM should manage resources, time, and have access to internal resources. They need to be empowered and have the authority to manage priorities and deliver status updates.

Tom: They also need enough knowledge of internal processes to plan around non-movable events like financial reporting deadlines.

Andy: How does a client use a partner PM to manage their resources?

Shailan: The partner PM needs to understand the internal team and business processes. Spending time on-site to understand these can be crucial.

Tom: Clients need to understand that a partner PM has a conflict of interest. It’s better to have an independent contractor if an internal PM isn’t available.

Andy: When you have a long-standing relationship with a client, a partner PM can be seen as part of the internal team. But from day one, that's unlikely.

Shailan: What if a client says they don't need a PM from your side?

Tom: We would say they still need one for managing our team. It's crucial for coordinating resources and avoiding conflicts.

Andy: The client should expect the partner to have a PM to hold them accountable for project timelines and deliverables.

Tom: If you’re a client, having a partner PM is beneficial. It ensures smooth scheduling and resource management.

Andy: Final thoughts?

Tom: Internal and partner PMs are crucial for project success. They streamline processes, manage resources, and help avoid costly overruns.

Andy: Agreed. Stay warm, everyone!