Saturday, September 20, 2014

Project Management and Locus of Control - Part 02

Introduction
In the first post of this series we have introduced the Locus of Control, and we have examined some of its applications to project management.

We have seen that Locus of Control  describes the vision we have on our capability to influence outcomes. 
  • External Locus of Control An individual that has an outside Locus of Control believes that every event in his/her life derives from factors outside his/her control. These factors can be summarized mainly as other people actions, luck, destiny… This kind of individuals tend to blame or to praise other people or circumstances for whatever success or failure they experiment in life.
  • Internal Locus of Control An individual that has an inside Locus of Control believes that every event in his/her life derives from factors under his/her control. This kind of individuals tend to blame or to praise themselves for whatever success or failure they experiment in life.

The Locus of Control interacts with the way we perceive ourselves in relation with the external environment. It changes the perspective under which we interpret successes and failures. It biases our judgements on personal and other people’s performances and achievements. 

Locus of Control and project management processes
The Locus of Control is accountable for another insidious pitfall, since it can change and distort the focus on our project management processes. 

Please, take a look at Figure 1. The arrow depicts the position of the locus of control. The far right of the arrow indicates an extremely external position of the Locus of Control, while the far left indicates an extremely internal position. As we have seen in the previous post, these are both undesirable locations and are marked in red on the chart. The central part of the arrow represents the best possible location for the Locus of Control. The green zone represents a Locus of Control positioning that allows the project manager to achieve a well-balanced interpretation and assessment of successes, failures and performances. The Orange zones represent intermediate situations. Here I want to suggest a correlation between the Locus of Control position and the way in which we interpret events. As we can see from the graph, the more we move toward the right (external Locus of Control) the more we feel that our actions do not determine outcomes and, as a consequence, randomness governs projects. On the contrary, the more we move towards the left (internal Locus of Control) the more we feel that everything is almost under our control and, all of a sudden, everything can be considered deterministic.



Locus of Control - Extreme Right Positions
If the Locus of Control is on the far right side of the graph, the project manager will be inclined to blame or to praise other people or circumstances for projects’ success or failure. This could generate a sense of fatalism and the feeling that projects’ performance are completely random. That is extremely dangerous because if we believe that projects’ performance are completely random, or completely out of our control, there is no point in maintaining and enforce project management best practices. 

Locus of Control - Extreme Left Positions
If the Locus of Control is on the far left side of the graph, the project manager will be inclined to blame or to praise just himself for projects’ success or failure. This could generate a sense of almightiness (success) or dismay (failure) and the feeling that projects’ performance are completely deterministic. That is extremely dangerous too, because if we believe that projects’ performance are completely deterministic, or completely under our control, there is not a firm effort in maintaining and enforcing project management best practices.

Locus of Control and risk management
The biases toward processes triggered by Locus of Control position could manifest itself more powerfully in risk management processes, than in other areas. Not an unexpected consideration, since Locus of Control position constantly jams with what we perceive we can monitor and control.

Therefore, an external Locus of Control could lead toward enormous expenses in risk management related processes, since almost every aspect of a project become all of a sudden an aleatory event, or something whose impact can be estimated, but not entirely, controlled.

On the contrary, an internal Locus of Control could lead toward severe underestimation of risk management contingencies since almost every aspect of a project is considered completely deterministic or manageable.


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