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Ch. 4 Project Organization

Ch. 4 Project Organization. Ch 4.0: Four Drivers of Project Management Growth. Speed to market Complexity and uniqueness of new inventions Disturbances/expansions of the enterprise Accountability of non-routine tasks. Ch. 4.0 Chapter Sections. Hybrid project/functional organization

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Ch. 4 Project Organization

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  1. Ch. 4 Project Organization

  2. Ch 4.0: Four Drivers of Project Management Growth • Speed to market • Complexity and uniqueness of new inventions • Disturbances/expansions of the enterprise • Accountability of non-routine tasks

  3. Ch. 4.0 Chapter Sections • Hybrid project/functional organization • Pure project organization • Matrix organization • Choosing an organizational form • The project team • Human factors and the project

  4. Ch. 4.1 Hybrid Project / Functional Organization University of Cincinnati organization chart

  5. Ch 4.1: Advantages of Hybrid Organization • Highly flexible staff use • Ease of switching experts among projects in same functional division • Specialist pooling in functional division • Technological continuity • Quicker career advancement of specialists

  6. Ch 4.1: Disadvantages of Hybrid Organization • Project not client focused • Different goals between functional parent division and project • PM competes with FM for role of central project responsibility • Slow response to client needs • Sub-optimization along parent functional division needs • Weaker project team motivation than in pure project organization • Not a holistic approach to project management

  7. Ch 4.2: Pure Project Organization

  8. Ch 4.2: Advantages of Pure Project Organization • PM with full project authority • Team directly responsible to PM • Shorter communication lines than hybrid organization • Skill pools of technical experts • Higher project commitment of team • Faster decision making • Unity of command makes life easier for staff • Organization is structurally simple and flexible • Holistic approach to project management

  9. Ch 4.2: Disadvantages of Pure Project Organization • Duplication of staff among projects • Stockpiling of expertise and equipment to assure critical state never reached • Experts develop too much depth --- not enough breath • Inconsistency in carrying out policies and procedures • Projectitis: excessive attachment of team to project • Team worries of “life after the project ends”

  10. Ch. 4.3: The Matrix Organization

  11. Ch. 4.3: From Project Emphasis to Functional Emphasis

  12. Ch. 4.3: Matrix Organization Advantages • PM sole responsible for project managing • Access to entire technology of firm • No worry about “life after project” • Rapid response to client need • Consistent with policies, procedures of parent firm • Company wide sharing of resources • Flexible between “weak” and “strong” matrix organization

  13. Ch. 4.3 Matrix Organization Disadvantages • Political infighting: PM against FM • Political infighting: PM against PM • Projects resist shutdown • Over reliance on negotiating skills of PM • No unity of command

  14. Ch. 4.4: Mixed Organizational Systems (I) Coexistence of pure project and functional organization to form a mixed system

  15. Ch. 4.4: Mixed Organizational Systems (II) Addition of Project staff office to form a mixed system

  16. Ch. 4.5: Choosing an Organizational Form

  17. Ch 4.5: Choosing an Organizational Form • Define outcome (goals) of project • Find “functional home” closest associated with key tasks • Sequence and decompose key tasks into “work packages” • Assign appropriate organizational units to “work packages” • Consider any special project characteristics or assumptions • Choose a project structure

  18. Ch 4.5: Project Management in Practice (Caltrans) • Create project management office (PMO) • CULTIVATE (not designate!) PMs • Use outside resources and help • Develop a uniform work breakdown structure • Create EMPOWERED project management forums • Use requirement analysis to select project management software • INVOLVE (not placate!) Top management

  19. Ch 4.6: Risk Management Sub-processes • Risk management planning • Risk identification • Qualitative risk analysis • Quantitative risk analysis • Risk response planning • Risk monitoring and controlPMBOK® guide, 2000 edition

  20. Ch. 4.6: Makeup of Sample Risk Management Group (RMG) for New Product Development • Scientist familiar with new product • Market specialist • Manufacturing specialist • Product safety expert • Patent attorney • Manager (program and/or HR) • Government relations expert

  21. Ch 4.6: Contents of Risk Management Knowledge Base • All possible project environments • All risk factors identified in previous projects • All risks identified by RMG • All “categories” and “key words” to identify risk • All qualitative and quantitative risk estimates for the project • Minutes (including action items) of all RMG meetings • Actual outcome of all estimated project risks

  22. Ch 4.6: Risk Evolution Along Project Life Cycle • Feasibility:external risks, tied to overall state of the technology • Planning:internal risks, tied to specific project technology

  23. Ch. 4.6: Project Management Office (PMO) Statistics

  24. Ch. 4.6: Reasons for Initiating PMOs • 65%: need for consistent project management • 50%: avoid project delays and help with planning • 40%: contain cost, improve project performance • 25%: improve customer satidfaction

  25. Ch. 4.6: PMO Level of Service Offered • 78% follow standard project processes • 64% consulting help on projects • 58% training and mentoring • 50% project tracking • 50% risk portfolio management • 28% maintain pool of PMs

  26. Ch. 4.6: Strategic Reasons for Establishing PMOs • Alignment of project goals with organizational goals • Gradual assimilation of good project management practices • Cultural change from functionally managed organization to project oriented organization

  27. Ch. 4.6: Why Organizations Establish PMO’s • To establish and keep good project management processes • To distribute project management expertise through organization • To improve project success rate • To reduce project lead times • To consolidate project data • To own an “enterprise project management” system

  28. Ch. 4.6: PMO Tasks (I) • Establish and enforce good project management processes • Assess/improve organizations project management maturity • Acquire enterprise project management system • Train and certify PMs • Cultivate competent PMs

  29. Ch. 4.6: PMO Tasks (II) • Consulting services for company PMs • Help PMs with administrative details • Risk evaluation • Product “fit” for organization • Monitor market changes and alert PMs of potentially needed scope changes • Review and limit organizations OVERALL project risk portfolio

  30. Ch. 4.6: PMO Tasks (III) • Audits and project reviews • Keep project management database • Help launch new projects • Recognize and reward project management excellence • “Home” for PMs • Disseminate project management knowledge

  31. Ch. 4.6: Timetable for Implementing PMO Tasks

  32. Ch. 4.6: Completeness of PMO

  33. Ch. 4.6: PMO Tasks As a Function of Reporting Level

  34. Ch. 4.6: How to Build a PMO • Get backing and sponsorship from senior management (VP or at least FM) • Pilot project in VP/fm’s area of control • In second iteration, expand PMO to cover the whole organization • PMO will self propagate due to it’s usefulness

  35. Ch. 4.6: Potential PMO Problems • Unrealistic expectations: • PMO may not save a project already in trouble • PMO cannot correct upper management failures such as: • Inflated project goals • Insufficient project support • Inadequate resource availability

  36. Ch. 4.7 Project Team Key Staff • Project engineer (design / analysis) • Manufacturing engineer (production) • Field manager (at customer site) • Contract administrator (paperwork) • Project controller (cost) • Support services manager (subcontracts)

  37. Ch. 4.7: Typical Organization for Engineering Projects

  38. Ch. 4.7: How to Staff a Project Team • Break down work structure into tasks • Assess skills needed for each task • Recruit skilled workers from functional departments • Negotiate with employee AND FM to get worker for project • If no local skill available subcontract!

  39. Ch. 4.7: Team Members Who Report to PM or Deputy PM • Project engineer (often the deputy PM) • Senior project team members • Members who require close communication with PM • Members with essential, rare skills

  40. Ch. 4.7: Weak Matrix Team Building • One or two skilled full time team members • “Capacity” from functional divisions • Several project components supplied by functional divisions in the form of deliverables

  41. Ch. 4.8: Human Factors in Meeting Deadlines • Delivering adequate – not perfectionist - work quality saves time • Team members motivated by: • Recognition • Achievement • Work itself • Responsibility • Advancement • Chance to learn new skill

  42. Ch. 4.8: Recently Popular Project Management Styles • Management By Objective (MBO)workers take responsibility for tasks • Continuous Improvement Teams (CIT) • Total Quality Management (TQM) • Self Directed Teams (SDT)

  43. Ch. 4.8: Empowerment of Project Teams - Advantages • Lets team members manipulate tasks so objectives can be met • Avoids micromanagement • Team members accept responsibility • May result in synergistic solutions • Timely feedback on performance • Empowerment is a tool for PM to evaluate team performance

  44. Ch. 4.8: Pillars of Team Building • Action plan: also acts as control mechanism • Mutual dependency: team members hold each other accountable for reaching goals

  45. Ch. 4.8: Essential Company Support for Team Building • Effective rewards • Individual and team performance feedback • Individual and team goal setting

  46. Ch. 4.8: Conflict Sources in the EARLY Stages of the PLC • Project Formation: • Priorities  clearly define plans • Procedures  develop a charter • Schedules  early schedule development • Building Phase: • Priorities  status review sessions • Schedules  work breakdown packages • Procedures  contingency planning

  47. Ch. 4.8: Conflict Sources in the LATE Stages of the PLC • Main Program: • Schedules  continuous monitoring of work • Technical  early resolution of problems • Labor  early staffing forecasts • Phaseout: • Schedules  close schedule monitoring • Personality  loosen up high stress situations • Labor  reallocate staff upon end of project

  48. Ch. 4.8: Number of Conflicts During a Sample Project

  49. Ch. 4.8: Conflict Intensity Along Project Life Cycle

  50. Ch. 4.8: The Name-Only-Team(NOT) • PM: conflict avoider  compromise rarely solves problems • Team members:discipline oriented individuals  prone to political infighting • Result:workgroup math is 2+2=3 or less!

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