Chapter 3 Flashcards
Project Management Structures
Challenges to Organizing Projects
The uniqueness and short duration of projects relative to ongoing longer-term organizational activities
The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas.
Choosing an Appropriate Project Management Structure
The best system balances the needs of the project with the needs of the organization.
Organizing Projects: Functional organization
Different segments of the project are delegated to respective functional units.
Coordination is maintained through normal management channels.
Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success.
Benefits of Cohesive Management
Builds discipline into the project selection process.
Links project selection to strategic metrics.
Prioritizes project proposals across a common set of criteria, rather than on politics or emotion.
Allocates resources to projects that align with strategic direction.
Balances risk across all projects.
Justifies abandoning projects that do not support strategy.
Improves communication and supports agreement on project goals.
Functional Organization of Projects
Advantages
No structural change
Flexibility
In-depth expertise
Easy post-project transition
Functional Organization of Projects
Disadvantages
Lack of focus
Poor integration
Slow
Lack of ownership
Scenario Planning: a Supplement to Strategic Planning
- Social, Technological, Environmental, Economic, Political = STEEP
Clarifying your core business and assessing drivers of change in the industry environment
Developing potential scenarios and assessing the impact of STEEP* factors
Developing potential contingency strategies and best future strategic options
Identifying early indicators and establishing triggers for strategic action
This is a tool for RISK ASSESSMENT
Project Management Structures (cont’d)
Organizing Projects: Dedicated Teams
Teams operate as separate units under the leadership of a full-time project manager.
In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
Project Organization: Dedicated Team
Advantages
Simple
Fast
Cohesive
Cross-Functional Integration
Project Organization: Dedicated Team
Disadvantages
Expensive
Internal Strife
Limited Technological Expertise
Difficult Post-Project Transition
Project Management Structures
Organizing Projects: Matrix Structure
Hybrid organizational structure (matrix) is overlaid on the normal functional structure.
Two chains of command (functional and project)
Project participants report simultaneously to both functional and project managers.
Matrix structure optimizes the use of resources.
Allows for participation on multiple projects while performing normal functional duties.
Achieves a greater integration of expertise and project requirements.
Different Matrix Forms
Weak Form
Balanced Form
Strong Form
Weak Form
The authority of the functional manager predominates and the project manager has indirect authority.
Balanced Form
The project manager sets the overall plan and the functional manager determines how work to be done.
Strong Form
The project manager has broader control and functional departments act as subcontractors to the project.
Project Organization: Matrix Form
Advantages
Efficient
Strong Project Focus
Easier Post-Project Transition
Flexible
Project Organization: Matrix Form
Disadvantages
Dysfunctional Conflict
Infighting
Stressful
Slow