Leading without authority: How project managers lead laterally and build trust

Project managers often have no disciplinary authority. For example, they cannot promise team members a pay rise or hand out redundancies. Nevertheless, they must steer the team, motivate them and resolve conflicts. But how can this be achieved?

Instead of hierarchy and ‘orders from above’, lateral leadership relies on influence through communication, professional expertise, trust, facilitation and persuasion. The key difference from hierarchical leadership lies in cooperation on an equal footing and the integration of diverse opinions, rather than control and sanctions. In organisations with flat hierarchies, project managers or experts lead teams without being their line managers. This leadership style thus describes the exercise of influence without a formal position of power or disciplinary authority. Project managers therefore aim to achieve an overarching goal together with the team, i.e. to work cooperatively with them. Responsibilities are thus shared within the team, allowing greater consideration to be given to different perspectives. Shared responsibility enables more efficient work, as tasks are based on individual decisions. This also improves the atmosphere within the company. Nevertheless, lateral leadership is not without its challenges. If there is no designated leader in the traditional sense, why should the team listen to the opinion of any one person? How can the trust necessary to make joint decisions as a team be built? Various tools of influence can be used for this purpose.

As the traditional source of power, the authority to issue instructions, is absent in lateral leadership, other tools are employed:

1. Through targeted networking, leaders build an informal power base. Good relationships and the exchange of knowledge across departmental boundaries help to secure support for initiatives. The manager thus focuses on communication with the team and cross-functional areas within the organisation. This represents a clear departure from the hierarchical structure of traditional leadership.
2. Through their role as a facilitator, managers create spaces for dialogue and interaction. They facilitate decision-making within teams or committees to bring together differing interests and develop joint solutions. In doing so, unlike in traditional leadership, they relinquish control and direction
3. Appreciative and engaging communication is the key to success. Through active listening, explaining the context and fostering an open feedback culture, acceptance is built within the team. In this way, a healthy team culture can emerge through the building of trust. 

Instead of giving an authoritarian instruction (“You need to have this finished by Friday”), the lateral leader acts as a visionary and starts by putting the overarching objective into context: “We have a real opportunity here to improve our process so that we can work not only faster, but also with significantly fewer errors.”
They then make the specific benefits for both the organisation and the team tangible: “If we can achieve this, we’ll save ourselves a lot of corrective work in the long term. That means less stress in our day-to-day work and more time to focus on the things that really matter.”
Next, they link the task to a clear and positive outlook: “The analysis we’re about to undertake is the first step towards that. You all bring different perspectives to the table – and that’s exactly what we need to develop a really strong solution.”
Rather than applying pressure, they invite the team to get involved: “How would you approach this? Who would like to take ownership of part of it or contribute their own ideas?”
Finally, they close by reinforcing a motivating sense of shared purpose: “If we get this right together, we can make a lasting improvement here – not just for ourselves, but also for the colleagues who will be working with the process in the future.”
In this way, a simple instruction becomes a shared endeavour in which purpose, participation and motivation take centre stage.

Trust is regarded as the ‘foundation’ of lateral collaboration. It is strengthened by the following aspects:

1. Openness and transparency mean that information is shared and problems are discussed openly. This gives the whole team clarity and enables them to consider the bigger picture when making decisions. 
2. Keeping to agreements and demonstrating credible personal integrity foster loyalty within the team. In this way, trust is built through reliability.
3. In laterally managed teams, a more open approach to mistakes is often encouraged. This strengthens personal responsibility and commitment, as team members do not have to fear sanctions, unlike in hierarchical systems. This open approach can make the team feel secure, which in turn can lead to a better working atmosphere and greater trust.

A high degree of diplomatic skill is required, particularly when it comes to cross-departmental collaboration or when engaging with external partners such as suppliers or customers. This is where differing perspectives, interests and objectives come into play, making a structured approach essential. It is therefore advisable to conduct a thorough analysis of the initial situation right from the start. The aim is to transparently identify and openly address the expectations, needs and framework conditions of all stakeholders involved. Such clarification provides direction and forms the basis for trust and constructive collaboration.
Nevertheless, conflicts or competing objectives may arise as the project progresses, for example when priorities diverge or resources are limited. In such situations, the project management team plays a central role as facilitator and mediator. It ensures that different viewpoints are heard and understood, structures the dialogue and creates a framework in which discussions can take place in a factual and solution-oriented manner. The focus is not on the authoritarian imposition of a supposedly ‘best way’, but on the joint development of viable compromises. The aim is to find solutions that can be supported by all those involved, whilst keeping the overarching project goal in mind. In this way, not only is the quality of the results improved, but long-term cooperation is also strengthened.

Lateral leadership requires empathy, strong communication skills and authenticity. Those who build trust and win people over can lead successfully even without disciplinary authority. It is based on providing guidance rather than exercising control, and actively fostering collaboration. In the long term, this approach not only enhances results but also boosts personal responsibility and motivation within the team. As a result, leadership becomes a shared process characterised by mutual respect and a clear focus on objectives.