As a result of the many organizational and technological changes in the telecommunications industry, AT&T realized that the old ways of doing business would not be competitive in the new market they now faced and decided to revamp their whole process of providing technology to the market. They decided that organizing by project management would give them better control over their business and bring them a competitive advantage. Thus, they set the goal of becoming the leader in project management in the industry. AT&T had previously used project managers in many of its activities but in a significantly different way. For instance, it was more a project coordination responsibility that could be successfully completed through achieving the activities on a task list. However, the position was of low status and seen as only a temporary activity serving to carry someone on to a better functional manager position. Thus, the reward for doing a good job was to move into a functional position and get out of project management. AT&T realized it would have to change the whole nature of the project management role, and the entire struc-ture of the organization as well, if it were to be successful in this strategy. They needed to develop professional project managers, plus a support system to maintain their abilities and careers in project management. The managerial men-tality of two or three years on a project and then moving on to a functional job had to be changed to an attitude of professional pride in project management and staying in the field for the remainder of their careers. Equally important, the organizational mentality of admiring heroic rescues of projects in trouble had to be replaced with admiration for doing a competent job from the beginning and time after time.The reorganization for project management was a major project in itself, including the areas of candidate selection, education and training, compensation, career development, organizational restructuring, and methods development. In terms of organizational structure, a National Project Management organization was created at the corpo-rate level, reporting to the service operating vice president. Reporting to the director of NPM were three project directors spread across the United States, a systems support organiza-tion, and a methods and support staff. Program managers, project managers, and their subordinates reported to the project directors. This structure provided an integrated, self- contained project management group.The project management career path now consists of: Trainee: a 6- month position to learn about project management. Cost Analysis/Schedule Engineer: a 6-18- month team position reporting to a project manager. Site Manager: a 6-12- month position responsible for a large site and reporting to a program manager. Small Project Manager: sole responsibility for a $1M to $3M revenue project. Project Manager: responsible for $3M to $25M projects. Program Manager: responsible for multiyear projects and programs over $25M.Candidates for the project manager career track are selected from AT&T's Leadership Continuity Plan, a program to iden-tify the people with the most potential to progress to middle and senior management levels of responsibility, as well as from career people within the organization. Particular skills sought are interpersonal leadership skills; oral and written communica-tion skills; a presidential, big- picture perspective; political sensi-tivity; delegating, problem- solver orientation; optimistic, can- do attitude; planner mentality; kaizen (continuous improvement) spirit; and administrative, in- charge credibility.AT&T's Project Management organization now includes a staff in Denver and groups of project managers in the major cities throughout the nation. These groups now manage over $500million in a range of telecommunications projects, ranging in size from $1M to $92M. Their project management approach is deemed the most capable in the industry, setting the pace for AT&T's competitors.

1. How difficult is it to change a culture where project management is perceived as of low status and something to get out of, to one where project management is re-spected? How would you approach such a task?

2. What was the problem with the mentality of admiring heroic rescues of projects in trouble?

3. Compare the skills sought for project managers among AT&T's Leadership Continuity Plan with those listed in the chapter.