Project Management for ITM

Project Management for ITM Dennis J. Hood IT 471-K01 Project Management for ITMFall ’04 Center for Professional Development

Lesson Overview • Organizational Structure and Culture • Reading: Ch. 3 • Objectives • Analyze organizational structures alternatives • Discuss pros and cons relative to PM • Examine the role of organizational culture

The Need for Structure • Administration • HR, budget, career development, etc. • Communication • Command and control • Authority and Responsibility • Accountability is essential • Functional Cohesion • Skill and competency development • Economies of scale

Project Organization Differences • Projects are temporary • Project team is only needed for a relatively short period of time • Burst of productivity is critical • Projects are cross-functional • Membership is based primarily on value to the project (not historical ties, etc.) • Understanding of roles is critical • Projects have a small set of well-defined objectives

Option 1 – Traditional Hierarchy • Surface Project from Functional Org • Organize by function, Manage by project • Pros: • Structural integrity • Maximum flexibility • Supports career paths • Cons: • Focus is not on projects • Communication is strained

Option 2 – Dedicated Project Teams • Organize the staff as project teams • PMs have dedicated staff (senior managers) • Some functional presence for operations • Pros: • PM has direct authority • Team is diverse, focused and unified • Cons: • Difficult to optimize utilization (bench?) • Consistent skill development is impeded

Option 3 – Matrix Organization • Hybrid of 1 and 2 • PMs “horizontal” authority overlays “vertical” functional hierarchy • Pros: • More efficient than project organization • More project-focused than traditional • Encourages PM competency development • Cons: • Everyone has two bosses

Option 3 – Matrix Org. (cont.) • Variations of Matrix Organizations • Functional • PM role is largely administrative • Functional manager (FM) role calls the shots • Balanced: • PM responsible for the what • FM responsible for the how • Project: • PM largely calls the shots • FM consulted as needed

Virtual Organizations • Born out of downsizing / rightsizing • “Specialists” ally to execute projects • Typically a core organization owns the project and contracts out for functions outside of its core competencies • Pros: • Cost effectiveness, expertise and flexibility • Cons: • Ownership, command and control

Culture • Every organization has its own culture • Culture is largely set at the top and difficult to change • Culture must support structure and vice versa • If not, projects will fail

Culture Characteristics • Member Identity • Team Emphasis • Management Focus • Unit Integration • Control • Risk Tolerance • Reward Criteria • Conflict Tolerance • Means vs. End Orientation • Open-Systems Focus

Culture Management • Identify Current Culture • Physical Environment • Documented Evidence • Observed Behavior • Folklore • Modification • Clearly define desired modifications • Change at the top and push down • Turnover staff as necessary

Project Management for ITM