Saturday, October 25, 2014

General versus Project Management

I’ve been asked by many beginning project management students about the difference between general and project management. My simple answer has been that the things that make a good general manager (GM) help a project manager (PM), and that the PM does a few additional things specific to projects. That seems to satisfy most, but it got me thinking about my experiences.
In many ways, I don’t see a real distinction. As a GM I’ve used project management techniques in many situations. For example, in the case of HR – specifically, developing people – I’ve often used project concepts and structures. Defining clear deliverables, acceptance criteria, timelines, progress reporting, and so on, lend themselves to good management.
Similarly, as a PM, I’ve had to use skills that are not specific to project management such as political and influencing skills.
So, from a management skills perspective, I see a vast overlap.
Maybe it’s on the leadership side of things that more distinctions arise? For me, I don’t think so. I’ve seen managers in both the general and project environments with no leadership attributes and those with great leadership (of course, there are those with management skills and those without). In my opinion, the best managers in both contexts have good management skills and leadership behavior (the next best are those with leadership and the ability to attract and motivate those with good management skills).
So, if it’s not management skills nor leadership behavior, is there a major distinction to be made?
For me it’s about the scope of responsibility. In my experience as a PM, I’ve always focused on making “it” happen. As a PM, I was more concerned about limiting scope to the extent that I could clearly define and measure success and thus increase the probability of project success. I was not so concerned about whether the project was actually the best utilization of resources in aligment with the initiatives and strategic position of the enterprise.
As a GM, I’ve been responsible for deciding what “it” should be. Yes, it can still be thought of as a matter of degree. As a PM, I’ve had influence over the strategic and tactical portfolio of projects; and as a GM, I’ve had to think about “doability.”
For example, I remember a state government-sponsored initiative where then out of work technology workers were to become teachers. As a PM, I was focused on defining a project with deliverables that could be clearly measured in a timely manner – we ended up with a 4 month project to recruit and enroll a specific number workers in teacher certification programs. As a PM, I was satisfied. I was not primarily worried about whether children would be better educated, or whether school districts would be able to hire new teachers, or whether parents would be more likely to keep their children in the public school system, or whether workers would quit as soon as tech jobs became available again.
As a GM, I did care about those things. I had significant issues regarding the usefulness of spending resources on this program. While a politically attractive initiative showing action in dealing with two issues of significant concern to constituents, it did not strike me as particularly effective in the context of improving schools or dealing with employment/job issues. It was my responsibility to decide to do it or not.
So, there’s my take on GM versus PM. Not so much about skills or leadership. Not a clean demarkation, but a difference in the scope of responsibility.

Thursday, October 2, 2014

eBay & PayPal’s Split is Good for Customers

was having a family birthday meal for my Father birthday last weekend. He was talking to my kids about the changes that he has seen over his 87 years. There have been many! I made the comment during the meal that I am sure that when my kids are Grandparents, I was sure they will be sitting around similar family gathering telling their grandchildren of the time when people carried around money in the form of pieces of metal in their pockets and paper in wallets.
It’s ironic therefore that yesterday (Tuesday) eBay and PayPal announced that they were going to split. By 2015, eBay plans to establish PayPal as its own company to make my prophecy become reality.
According to Forbes.com, PayPal was the vehicle for $180 Billion worth of currencies from 193 countries across the world last year. It also grew revenues by 20% to $6.6 Billion, which represented 36% of eBay’s profits last year.
In the past when both of these companies partnered up, eBay was the bigger and faster-growing business model, while PayPal was its convenient service to handle payments. It was like PayPal was a little brother tagging along the bigger one. The rise in popularity of mobile payments, however, has given PayPal more opportunity to grow. Now, it’s as if the younger brother has potential to surpass the older brother.
The age of electronic payments is here, and this is a massive battleground. Mobile payments were responsible for $235 billion last year in transactions (Although I think it is important to note that the remaining 15 trillion was cash and credit cards).
There are many big names fighting for their share of this growing segment of payments. Apple just announced their mobile payment system by way of their Apple Pay App that they have just launched with their iPhone 6. Also, our clientsBarclaycard have been in this market for years with Barclays Pingit App. Then there is Square, the mobile payment company that enables individuals and merchants to process debit and credit card transactions on their smartphones and tablets. Google, Amazon, AT&T and Verizon, are just a few more of the big names that are in the mobile payment business.
What’s great about this split for the consumer?
I’m sure many of you are wondering how this will affect you, the consumer. I think spinning off into PayPal is great for consumers in many ways, including:
  • It gives PayPal a chance to build a new brand. PayPal has a perception problem. They are perceived as a payment mechanism for an auction site. By spinning off into their own entity, they can become a more prestigious brand in a new dynamic market. Coming out from under eBay’s shadow will let them blossom, into what I hope will become a Customer-centric organization.
  • It will attract more talent to PayPal’s team. For just a little over a decade, Paypal has been an eBay subsidiary. According to recode.net, this means that they are no longer considered an innovator. As a result, the top talent is less likely to want to work there. With their own brand to build and more freedom to test the waters, they can recruit more of the movers and shakers in the industry, which will lead to better products and services for their account holders.
  • Competition is great for Customer Experience. The more options there are for mobile payments, the less tolerant Customers are for providers that lack Customer-focus, forcing all the providers to improve their Customer Experience.
Mobile Payments Are the Future
It seems that there is one big thing that happens in every generation that changes everything and makes something perfectly normal in one decade sound ridiculous to the next. Consider the pay phone. These days, the only one who uses them are people who are having affairs and don’t want their call history to show up on their phone (I’m joking, of course!). Honestly though, I would guess that the vast majority of you haven’t used a pay phone in ten years.
That future isn’t as futuristic as it may sound right now as many merchants are gravitating away from cash. Buses in London don’t take cash. Airlines don’t either. So if you want to buy that snack pack on the flight, you had better have plastic, or you are going to have to settle for Bloody Mary Mix and the teensy bag of pretzels. Many hotels and resorts don’t accept cash for rooms any longer. Even parking meters have gone cashless in many places. This one is great though, as anyone who has worked his or her way up to two hours on the old-fashioned meter one dime at a time would agree.
PayPal and eBay were a great together for many years. In their new iterations, they will likely continue this greatness. Will there be adjustments to their relationship after the split? Sure, but all the changes that they endure as an individual organizations will ultimately pave the way for PayPal to realize its full potential…and pay off in a better experience for all of us when it comes to mobile payments.