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Business or Organisational Psychology for Project Managers

Business or Organisational Psychology for Project Managers

By Robert Annis
April 24, 2024

As a business psychologist who started my career in project management on two continents, I find myself at the intersection of two seemingly disparate worlds.

On one hand, there’s the structured and methodical realm of project management, where timelines, budgets, and deliverables reign supreme. On the other, there’s the intricate landscape of organisational psychology, delving into the complexities of human behaviour, motivation, and decision-making. Surprisingly, these two domains are not as distinct as they may appear. In fact, the insights from psychology can be invaluable to project managers in achieving successful outcomes.

I shall use the word ‘psychology’ as conversational shorthand to refer to business or organisational psychology, herein.

Understanding the Human Element

In any project, regardless of its size or scope, people are at the heart of it. Whether you’re managing a team of five or a cross-functional group of 150, understanding the human element is paramount. This is where psychology comes into play. It equips project managers with a profound insight into the minds of their team members and stakeholders. Self-awareness enables you to hear others above your own thoughts and biases.

One crucial aspect is understanding the motivations of individuals on your team.  What drives them?  What are their career aspirations?  What are their personal goals?  Conversely, what is holding them back?  Recognising these factors can help project managers tailor their leadership approach, what we call situational leadership.  Some team members may be highly self-motivated and thrive on autonomy, while others may require more guidance and support.  By understanding these nuances, project managers can foster a more productive and engaged team.

Effective Communication

Communication is the lifeblood of any project. It’s not just about conveying information; it’s about ensuring that information is understood and acted upon. Psychologists emphasise the importance of effective communication, and this principle is directly applicable to project management.

When delivering project updates or addressing issues, it’s essential to consider how your message is framed. Psychology teaches us that people perceive and interpret information differently based on various factors such as their past experiences, cognitive biases, and emotional state. Tailoring your communication to resonate with your audience can make a significant difference in how your message is received and acted upon.

For example, some people admire issues being listed as they like the openness and attention to detail, whilst others only want to hear solutions because problems are deemed too negative.

Conflict Resolution and Team Dynamics

In the world of project management, where pressure and expectations meet, conflicts are inevitable. Whether it’s disagreements among team members, resource constraints, or scope changes, conflicts can disrupt progress if not handled properly. Perhaps unsurprisingly, psychology can offer valuable strategies and techniques to help here.

Psychologists delve into conflict resolution techniques and team dynamics. They can help project managers mediate disputes, encourage constructive dialogue, and build cohesive teams. Understanding group dynamics and the stages of team development can aid in predicting and addressing challenges that commonly arise during the project lifecycle. Critically, business psychologists can help build teams that function better so that problems arise less – this is surely the best type of conflict resolution.

Decision-Making in Uncertainty

Projects are not immune to uncertainty; indeed, it is an important factor in project success. Psychology provides the science of decision-making which brings multiple advantages, especially in ambiguous situations. It can provide project managers with tools and frameworks for making informed decisions when faced with incomplete information.

Psychology encourages the consideration of biases that can cloud judgment. By being aware of cognitive biases like confirmation bias or anchoring, project managers can make more rational decisions that benefit the project’s outcomes.

Conclusion

Incorporating psychology into the toolkit of a project manager is not only beneficial but, in today’s dynamic business environment, essential. Understanding the motivations of team members, mastering effective communication, navigating conflicts, and making informed decisions in uncertain situations are all critical skills that can be enhanced through psychological principles.

As a business psychologist who has walked the path of a project manager, I have seen firsthand how the synergy between these disciplines can lead to project success.  By embracing the insights offered by psychology, project managers can become not only more effective but also more empathetic leaders, ultimately delivering better results for their organisations.

Robert Annis, MSc., stands at the forefront of workplace agility and organisational psychology, having conducted extensive analyses of workplace environments across the globe. His work has contributed significantly to a deeper comprehension of the nuanced requirements inherent within various organisational structures and leadership roles. This aligned with a background in project/program management and Agile delivery, provides an insightful combination of scientific theory and practical usage.

Mr. Annis’s approach diverges from the conventional, fragmented method of engaging multiple specialists, which often proves to be both inefficient and financially burdensome. His philosophy underscores the value of cultivating a durable partnership with a multi-disciplinary expert, advocating for a cohesive strategy that aligns with long-term business objectives and fosters organisational growth.

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Disclaimer: The ideas, views, and opinions expressed in this article are those of the author(s) and do not necessarily reflect the views of International Institute for Learning or any entities they represent.

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