Project leadership is about planning the process and channeling the team’s efforts toward achieving the project outcomes. A Project Management Institute study estimates that there will be a 33% increase in the demand for skilled project managers by 2027. This reveals the cruciality of leadership in project management in the constantly evolving business landscape.
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The problem-solving skills, critical thinking abilities, and strategic competencies of a leader influence the success and outcomes of a project.
In this article, we have curated the nuances of project management, leadership styles, and must-have leadership skills needed for project managers to navigate the team toward the organizational goals, vision, and mission.
As businesses endure fierce competition, the role of leadership in project management becomes more crucial and pivotal than ever. Though project management has undergone a significant change in the digital era, the good thing is that project managers have a lot of tools and methodologies that can automate mundane tasks. Project managers and organizations must use project management software and modern methodologies to beat the competition and stay ahead.
What Is Project Leadership?
Project leaders navigate the team toward the specific outcome within a predefined time frame, scope, and financials. As it involves managing the project and the team, project leadership and management remains both an art and a science.
On the one hand, it is about using your interpersonal and communication skills to guide the team toward successful project completion and delivery on the one hand. While on the other, it also involves using analytical skills and logical reasoning to plan, track, monitor, and achieve project outcomes and remains a science.
As it is proven working as a team on a common project is more effective than working as individuals, leadership in project management is pivotal. It plays a key role in the seamless completion of projects and the successful functioning of an organization, irrespective of its size and scope.
Why Do Organizations Require Project Management Professionals?
Project lead managers play a crucial role in ensuring that, as a team, they achieve the intended outcomes within the defined time and budget span. Following are some reasons why businesses need project management professionals.
1. End-to-End Project Management
Project management professionals shoulder the end-to-end responsibility of the planning, organizing, scheduling, monitoring, and tracking activities to achieve the intended project outcomes.
2. Build a Project Plan
Project leaders should prepare a comprehensive project plan outlining the scope, timeline, and budget. It should have a clear idea of the milestones and deliverables so they can track the progress.
3. Channelizing Stakeholder Communication
Seamless communication is essential for the success of a project. By offering a clear direction about the purpose of a project, project managers can help them keep focused and channel their time and efforts toward achieving the project goal. It is also important to communicate the milestones to the team and update the leaders and management about the performance and progress.
4. Manage Project Risks
Project management professionals should invest their efforts and time into analyzing the possible risks in the process. They should develop mitigation strategies and work out corrective measures to ensure that the end goal is achieved without hindrances.
5. Tracking the Progress Continuously
One of the main roles of leadership in project management is to track the project periodically and keep an eye on the progress of the project. This helps ensure that all the project stakeholders align with the project’s expectations and make changes if required.
6. Maximize Resource Utilization
Every project has limited resources such as human resources, budget, and time. Promoting optimal resource utilization is a key role of leadership in project management. Doing so helps enhance the productivity of the project team and minimize wastage.
Importance of Leadership in Project Management
The role of leadership in project management is crucial as it involves managing the end-to-end activities of a project, from planning and monitoring the project scope to establishing coordination, solving challenges, and making important decisions.
The following are some factors that reveal the importance of the role of leadership in project management.
1. Interpersonal Skills for a Productive Workplace
Beyond technical expertise, project managers must possess excellent interpersonal skills to drive the team toward the collective vision. As project managers invest a major chunk of their time in communicating with stakeholders, interpersonal skills are crucial.
Project managers must be able to speak, listen, and question the stakeholders whenever needed. They should know how to resolve conflicts and reach agreements to motivate and respect everyone on the team. Project managers should strive to promote a harmonious, dynamic working environment.
2. Instill Positivity and Enthusiasm in the Team
Successful managers approach problems with positivity and always have an optimistic attitude. They should understand that problems and challenges are common. The project leader should approach them with an attitude of figuring out solutions rather than dwelling on the problem.
3. Honesty and Integrity
Integrity is an essential virtue when it comes to project management. Project managers should set policies and guidelines and ensure transparency in the process. This helps them build trust in the minds of the clients, team members, partners, management, etc.
4. Enhance the Team’s Potential
Active project lead managers invest their efforts into understanding the strengths of each team member and work out ways to build over their strengths. As the employees feel heard and respected, they tend to demonstrate greater commitment to the project goals, which in turn enhances the team’s potential.
5. Decision-Making
The decisions made by the project managers produce a direct effect on the project outcomes. So, they should be able to make informed decisions by exploring all possibilities and choosing the one that works the best when it comes to achieving the project goals.
Key Differences Between Leadership and Management
Leadership guides and motivates people toward a vision. Management is about making sure that the right processes and structures are followed to achieve that certain vision.
How successful a project would be, highly depends on how well leadership and management are balanced. Both aspects play an important role in any project. Though there are some differences, understanding which teams can navigate their way towards achieving their goals more efficiently.
| Aspect | Leadership | Management |
|---|---|---|
| Focus | Inspiring and motivating people toward a vision or goal | Organizing and controlling resources to achieve objectives |
| Approach | Influencing, encouraging innovation, and embracing change | Organizing tasks, maintaining order, and following processes |
| Vision vs. Execution | Focuses on long-term vision and setting strategic direction | Focuses on executing that vision and managing day-to-day tasks |
| Decision-making | Relies on intuition, creativity, and innovation | Makes decisions based on rules, data, and processes |
| Risk-taking | Encourages innovation and risk-taking for growth | Prefers calculated, risk-averse approaches for stability |
| Relationship | Builds strong, emotional connections for team growth | Focuses on task-oriented relationships to ensure project success |
“Management is doing things right; leadership is doing the right things.”
— Peter F. Drucker, Management Consultant
What Is the Role of a Project Leader?
A project leader is basically a person who holds everything together. They are not ones who just tick off tasks. Moreover, they are guiding the team, and aligning everyone toward a common objective. Whenever the momentum is lost, a project leader makes sure to get things back on track.
Here’s what a project leader does:
- Manages Tasks & Deliverables: They keep an eye on what needs to get done and within a specified time frame. Their primary aim is to keep the team on track without causing panic. This can involve meeting major deadlines or crossing off everyday tasks.
- Direct the Team Toward the Goal: During a project, the team is likely to sometimes lose sight of the bigger picture. The project leader here is supposed to remind the team why they are doing it in the larger scheme of things. Plus, he pushes them forward with clarity and motivation.
- Shares Responsibilities with the Project Manager: In an organization, leaders and managers often work hand in hand. The project manager’s task is to handle timelines and budgets. The leader makes sure that the team stays engaged, connected, and together they work well.
- Develops Project Plans & Timelines: The entire game plan is sketched by the leader. It includes what needs to happen, by when, and who will be behind it. It is important for the leader that the plan is kept clear, practical, and something that the team can actually follow.
- Allocates Resources: Resources include people and tools. Project leaders make sure that there is no shortage of it. Everyone has what they need to get the job done. They avoid overloading team members and help use resources smartly.
- Monitors Progress & Performance: Looking at the numbers is not enough. A project leader needs to check in with people personally. A good leader is someone who regularly asks, “How are we doing?”, “Do you feel supported in your role?”, etc., and adjusts things when something goes wrong.
- Engages Stakeholders: A project leader knows how to keep stakeholders in the loop. This involves sharing updates, answering questions, and building trust along the way. They’re often the friendly face of the project.
- Ensures Quality Standards: Deadlines are important, but so is the quality. Quality should always be non-negotiable, and a leader is supposed to be in front to ensure this from time to time. It’s their job to make sure that what is delivered not only meets the requirements but also feels like a job well done.
Leadership Styles in Project Management
Leadership isn’t a one-size-fits-all strategy. There exists no common style that goes well with all personalities and teams. There are several different types of leadership styles in project management, some of which are given below.
1. Transactional Leadership Style
The transactional leadership style focuses on setting goals for the team and achieving them through rewards and incentives. Transactional leaders set clear, concise goals regarding timelines, scope, deadlines, etc. They endeavor to build a structured environment where everyone in the team is aware of their roles and responsibilities, and the team knows what is expected of them.
Transactional project lead managers tend to follow a standard and have less room for innovation. They correct the team members and put them back on track if they deviate from the intended goals. So, this style is inappropriate for projects that demand creativity and innovation. Transaction leadership style works well with short-term projects that have explicit goals and short deadlines.
2. Interactional Leadership Style
The interactional leadership style is relatively dynamic, where the leaders make decisions based on the situation and the project’s demands.
They consider various factors like work environment, market requirements, organizational culture, evolving market trends, etc., when it comes to project management and decision-making.
Interactional leaders are flexible and promote open dialogues and collaboration in the team.
3. Laissez-Faire Leadership Style
In the Laissez Faire style, the project management leaders show minimal involvement in guiding the teams, and they let the team members determine the goals, define the scope, and come up with implementation ideas. This works well in projects that require creativity and innovation. The leaders have an open mind to listen to ideas from the team members and learn from them.
4. Transformational Leadership Style
In the transformational leadership style, leaders shed their focus on motivating the team members to unleash their fullest potential to be able to achieve the project goals and, eventually, the business vision.
They encourage innovation and creativity and motivate the team members to work in a collaborative environment.
5. Charismatic Leadership Style
As the name suggests, charismatic project lead managers leverage their personalities and charisma to motivate the team members. They are extremely confident in their abilities and project management skills, and their excitement, energy, and passion for work are infectious. Building a positive relationship with the team members drives the team towards the intended objectives and success.
6. Servant Leadership Style
In the Servant leadership approach, the project leaders aim to serve the teams and achieve the objectives by empowering them rather than exerting control over their activities. This way, the employees feel heard, appreciated, and respected, so they give their fullest to achieve the project objectives.
Top 6 Leadership Theories You Should Know
‘What makes a great leader?’ has always sparked interest and curiosity among scholars and researchers. So, leadership theories are synthesized around how individuals become leaders and what sets them apart. Leadership theories date back to the 1800s and have constantly evolved since then.
Following are the top 6 leadership theories that you must know to develop an understanding of what makes a great leader.
1. Transformational Theory
The transformational leadership theory emphasizes that leaders achieve objectives and goals by influencing the team through inspiration and motivation. They lead by example, and their vision motivates the team members to pursue their paths.
The influence of the team leader motivates the team members to invest completely in doing what it takes to achieve the ultimate goals. They prioritize communication and collaboration in the team and have a proactive work style. They show greater involvement in the project rather than staying at the top and offering directions and instructions.
2. Leader-Member Exchange (LMX) Theory
The LMX theory is based on the relationship between the leader and the followers or team members. Among the followers, the theory identifies two groups, the in-group and the out-group. The association of a leader with the team members is based on these groups.
Project managers have a closer, collaborative relationship with the in-group members. They tend to favor the in-group members and add more responsibility to their carts. The in-group members gain access to more information and more opportunities for their growth.
On the other hand, out-group members share a very formal relationship with the project leaders. They tend to assign mundane, repetitive tasks to the out-group members.
3. Adaptive Leadership Theory
Adaptive leadership emphasizes that leaders must have the ability to adapt to evolving circumstances and explore ways to navigate challenges. The theory suggests that leaders must be prepared to face uncertain situations and take calculated risks to arrive at a solution.
The key focus of this theory is how leaders thrive in challenging, uncertain scenarios. Such leaders focus on forging an environment where team members find it comfortable to share their opinions and demonstrate a willingness to take challenges head-on.
4. Strengths-based Approach
The strengths-based theory emphasizes that the individual strengths of leaders determine their style of leadership and, eventually, their success. They leverage their strengths, skills, and competencies to ensure seamless completion of the projects.
By assessing their strengths and building over them, leaders tend to maximize the productivity of the team and drive them to success. This requires a complete shift in the mindset to develop a focus on strengths rather than weaknesses. By doing so, they also influence the team members to build on their unique strengths and skills and explore ways to leverage the strengths to drive project outcomes.
5. Servant Leadership Theory
The servant leadership theory was propagated by Robert K. Greenleaf, the founder of the modern Servant leadership movement and the Greenleaf Center for Servant Leadership. It emphasizes that leaders should focus on prioritizing the interest of others over their self-interest.
The theory identifies three kinds of leadership approaches when it comes to leading project teams.
i. Bureaucratic or Transactional Leadership
In this approach, leaders exercise strict controls and discipline and practice adherence to rules, policies, and procedures. Such leaders are rigid and task-oriented.
ii. Traditional or Feudal Leadership
In the traditional or feudal approach, absolute authority vests with the leaders, and the employees are expected to follow them without any questions. Such leaders believe in faithfulness and loyalty and adopt the traditional style of governance.
iii. Charismatic or Transfomer Leadership
Here, the leaders influence the followers through charisma and personality and inspire the team to believe in their vision. They are persuasive, engaging, and dynamic when it comes to leading project teams.
6. Transactional Leadership Theory
The transactional leadership theory evolved in the 15th century following the industrial revolution. In this approach, the leaders position themselves at higher levels of importance. They exercise authority to systemize the project management process and create rules and policies to motivate the team to achieve the objectives.
Transactional leaders focus on the immediate, short-term objectives of the project. They do not value innovation and creativity and prefer to work by following systemic procedures and set standards.
How Can You Improve Leadership Skills as a Project Manager?
Let’s be honest. Leading a project is not always about having all the answers. Sometimes it’s about asking the right questions, supporting your team when things get messy. And most importantly, staying calm when the deadlines come close. It’s about when to step in, and when to take a step back.
You don’t need to be a “born leader” to be a great one. Leadership isn’t about titles or big speeches. It’s more about how you show up for your team, especially on the tough days. It’s something you build slowly. Day by day, project by project.
Let’s look at the ways you can start showing up stronger and as a smarter leader.
1. Choose a Suitable Leadership Style
There’s no perfect style on how one should lead. The way or approach should be just the right one for the team and that situation. Stay flexible. Some days your team might need your direction, and on some days they might just need the space to grow.
2. Build Trust Through Transparency and Consistency
No one likes surprises, unless it’s cake. To be a good leader, be open about your goals, decisions, and challenges. Trust is built when people know what to expect from you.
3. Monitor & Optimize Team Workloads
A great leader doesn’t just delegate. Moreover, they make sure that the workloads are realistic. Check in regularly and rebalance tasks when it’s required. This can avoid burnout and keep energy levels high across the board.
4. Keep Learning Through Training and Certifications
Great leaders never stop learning. With the advent of the internet, it’s quite easy to gain valuable knowledge in your domain. Enroll in courses, attend leadership workshops, or pursue certifications to gain new perspectives. Every new insight will make you a better person to guide your team.
5. Set Up a 360-Degree Feedback Loop
While leading a team, you give feedback. But being in this position, you should also receive it with grace. That’s why it’s called a 360-degree feedback loop. This approach opens up honest conversations and helps you stay grounded.
6. Use Project Management Tools
Project tools should reduce confusion and not add to it. Choose the tools that make your team’s life easier and give them more time to focus on what really matters.
7. Lead by Example
Your actions set the tone. If you want your team to be accountable, punctual, and be respectful, then set the model for it. Teams mirror the actions of their leder. So show up the way you want them to.
8. Put the Team First
More than you, the leadership is about people. Listen actively to your team members. Support their growth. Make space for their ideas, and hear out their challenges. The goal with this is to make sure they feel like more than just a checklist item. This is when they deliver their best.
9. Learn how to Facilitate
Sometimes your job as a leader is how not to boss the team. Rather than instructing, its more about guiding them. Ask the right questions, bring clarity to chaos, and help your team to find their own rhythm.
10. Connect and Build Relationships
Building relationships is about knowing what drives your team outside of work. That human connection pays off when pressure hits. Grab coffee. Chat during breaks. Strong relationships create psychological safety and make it easier to have honest and productive conversations. In fact, a study found that the benefits of high workplace psychological safety include a 27% reduction in turnover and 76% more engagement.
11. Get out of the way (Avoid Micromanagement)
Micromanagement feels like having control. But it kills creativity. Trust your team to do what they do best, even if they approach it differently than you would. This creates space for ownership, innovation, and fresh ideas to flourish.
12. Provide Opportunities for Growth
Let your people stretch. Give them a chance to lead a small initiative or explore a new skill. When they grow, they carry the project further than you could alone with your management.
How Do You Measure Effective Leadership in Projects?
If your team is meeting deadlines, it’s great! But, more than that, leaders are judged on the impact they have on their team, the culture, and the way people work together. So, how do you know if your leadership is truly working? Below are a few ways to measure it:
1. Development and Upholding of Strong Values
The best project leaders keep clear values, like accountability, respect, and transparency. But more importantly, they live those values. If your team starts to reflect these values in their behavior and decision-making, that’s a clear sign that your leadership is leaving a positive mark.
2. Assess Attitudes of the Workforce
Pay attention to how your team feels about their work, not just when they produce at the end. Are they motivated, curious, and engaged? Do they feel heard and safe to speak up? This will establish transparency. You can measure this with the help of pulse surveys, one-on-ones, or even casual check-ins. A positive shift in team attitude often means the leader is doing something right.
3. Create and Assess DISC Profile
DISC assessments help you understand the behavior styles, both yours and your team’s. By comparing pre- and post-project profiles, you can see how communication, collaborations, and decision-making evolve. It’s a smart way to track leadership influence in a more personal and human way.
4. Evaluate Team Growth
Is your team growing under your leadership? Not just in skills, but also in confidence, collaboration, and ownership. Look at who’s stepping up, taking initiative, or mentoring others. When people grow, your leadership is working, even if no one says it out loud.
“The growth and development of people is the highest calling of leadership.”
— Harvey S. Firestone, Founder of Firestone Tire & Rubber Company
And that is the real measure when your leadership leaves people better than you found them.
The Must-Have Skills That Every Project Manager Needs
The scope of project management is constantly evolving, and so are the skills and expertise needed to thrive in the business landscape. We have covered the crucial skills every project manager must have to lead the teams and steer them toward project goals and organizational vision.
1. Effective Communication
From kick-off to tracking and delivering the outcomes, project managers must communicate effectively with the stakeholders involved in the project. Cesar Abeid, a popular host of Project Management for the Masses podcasts, shows that project managers spend around 90% of their time on communication.
Lack of effective communication adversely affects the quality of outcomes and timely delivery. A successful Project manager conveys the information, reports, project objectives, organizational vision, etc., to all the stakeholders in an effective manner.
2. Negotiation
Negotiation skills are a must-have for project managers as they engage closely with all the stakeholders, from suppliers and teams to clients. An effective project leader manages resource allocation, engages with suppliers, and resolves team conflicts to ensure all stakeholders are in sync with the project goals.
3. Planning and Scheduling
Planning is a core activity for project management professionals. The project manager should have the ability to set clear objectives, determine the sequence of activities, plan resource allocation, set timelines, and track progress. Having a well-thought-out increases the odds of success of a project.
With digital transformation gaining prominence, several project management tools have evolved to simplify the process of planning and follow-up. Project managers must learn to harness the potential of those tools to improve the efficiency of the planning process.
4. Risk Management and Mitigation
Project managers must have the ability to identify and anticipate risks in the process and work out strategies to mitigate them. As risks are uncertain and unforeseen, project managers often ignore them, impacting the pace of project success. They must understand and acknowledge the risks probable in the process and plan ways to avoid them.
5. Efficient Team Management
Marshaling a team and navigating them toward the expected outcomes and goals is the key role of leadership in project management. The project manager should have the ability to delegate tasks, resolve conflicts, evaluate the performance of team members, and motivate them to take feedback and demonstrate progress.
The project managers should lead by example, shoulder accountability for the outcomes, and be responsible for their actions. They should set clear goals and offer direction, support, and guidance to achieve the project objectives.
6. Problem-Solving Skills
Given the complexities of projects in today’s world, critical thinking and problem-solving skills help project managers achieve successful outcomes. In challenging times, they must remain proactive rather than reactive to be able to figure out a solution.
Project managers should have the skills to identify and comprehend problems quicker and find ways to solve them. They should approach problems with an open mind and develop innovative solutions.
7. Budget Management Skills
Project managers must have the acumen and competencies to comprehend the nuances of budget management and financial analysis. They should maintain the budgetary plan, record direct and indirect costs, track expenses, and explore opportunities to minimize expenditures. Project managers should work out efficient resource allocation strategies and ensure that the project outcomes are achieved within the estimated financials.
8. Reporting and Analytics
Project managers must be able to prepare reports that help communicate effectively with the team and evaluate their progress and performance. This helps establish coordination with the team, vendors, clients, and other stakeholders involved in the project and helps identify areas for improvement.
Successful project managers leverage various tools to present information in an easy-to-perceive format like charts, graphs, etc.
Conclusion
Project management requires effective collaboration between multiple stakeholders and interdisciplinary teams. The risks and uncertainties involved add to the complexity of the role of leadership in project management. By using project management software, tools, and modern methodologies project managers can plan the process more effectively, foster deeper collaboration, and ensure optimal allocation of resources.
An efficient project management software helps automate repetitive operations to save time, resources, and costs. The project managers can invest their time into performing other crucial business operations. Such tools and methodologies enhance the team’s productivity and the business’s efficiency.
Leading by example is the best way for a project leader to motivate and inspire the team. The project manager should approach challenges and uncertainties in the process with an optimistic mind to figure out solutions. They should also be accountable for the outcomes and work hard to achieve the goals. This would inspire the team members to follow the leader and do all it takes to achieve the project outcomes.
When there is a conflict within the team, the project manager should do the following:
- Accept the fact that there is a conflict
- Invest efforts into understanding the views and perceptions of the team members
- Appreciate their points
- Work in collaboration to arrive at a solution
- Exercise authority and control in case there is a need
To deliver projects within the time frame and budget constraints, do the following:
- Understand the strengths and weaknesses of the team
- Define the scope of the project
- Determine the goals and communicate them to the stakeholders
- Set realistic timelines
- Evaluate the progress using collaboration tools
- Have contingency plans
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