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1. Understand how efective project managementcontributes to achieving strategic objectives.

2. Recognize three components o the corporatestrategy model ormulation! implementation!

and evaluation.". #ee the importance o identiying critical

project sta$eholders and managing themwithin the conte%t o project development.

&. Recognize the strengths and wea$nesses othree basic orms o organizational structureand their implications or managing projects.

2

Learning Goals


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'. Understand how companies can change theirstructure into a (heavyweight projectorganization) structure to acilitate efectiveproject management practices.

*. +dentiy the characteristics o three orms oproject management o,ce -/0.

. Understand $ey concepts o corporate culture andhow cultures are ormed.

3. Recognize the positive efects o a supportiveorganizational culture on project managementpractices versus those o a culture that wor$sagainst project management.

3

Learning Goals


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#trategic management 4he science o ormulating! implementing

and evaluating cross5unctional decisionsthat enable an organization to achieve itsobjectives.

Consists o◦ 6eveloping vision and mission statements

◦

7ormulating! implementing and evaluatingbusiness opportunities

◦ /a$ing cross unctional decisions

◦ 8chieving objectives

4

Projects and OrganizationalStrategy


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Projects Refect Strategy

A firm wishing to… …may have a project

redevelop products or processes to reengineer products or processes.

change strategic direction or productportfolio configuration

to create new product lines.

improve cross-organizationalcommunication & efficiency

to install an enterprise IT system.

!ro"ects are stepping stones of corporate strategy.

The firm#s strategic vision is a driving force $ehind

pro"ect development.

%ome eamples include'


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(

Relationship o Strategic!le"ents

)ission

*$"ectives

+oals !rograms%trategy

,eview igure 2.2 page

3( for an eample


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Sta#eholder $anage"ent

#ta$eholders are individuals or groups who have anactive stake in the project and can potentially impact!either positively or negatively ! its development.

#ets o project sta$eholders include

Internal Stakeholders• Top management

• /ccounting

• *ther functional managers

• !ro"ect team mem$ers

External Stakeholders• 0lients

• 0ompetitors

• %uppliers

• nvironmental political

consumer and other

intervenor groups


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Used to record sta$eholders o the project Useul to build communication plans

Sta#eholder Register


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9ill inorm you o the interests and in:uenceo those involved in a project change.

#hould show each person or group;s interestin the change! where interests converge! thelevel o in:uence! and who will have a voicein new developments.

Can be bene


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=egin by ma$ing a list o anyone who has interest and in:uence over yourproject. i.e. investors! customers! general public! etc.

Use this list to weigh the interest and in:uence o each person.

Create the /atri% -e%ample 5 our levels per category

1. 6raw a bo% divided into our e>ual >uadrants.

2. 6ivide each >uadrant into ourths again. ?ou should now have si%teenbo%es.

". @abel down the let side starting at the top with (#igni


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Project Sta#eholderRelationships

ClientsProject

Manager

ther

!"nctional

Managers

External

Environment

Project

#eamAcco"ntant

#op

Management

Parent

rgani$ation


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$anaging Sta#eholders

1. 8ssess the environment 5 +s this low $ey or signi


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Project Sta#eholder$anage"ent Cycle

Project

Management

#eam

Identify

%ta8eholders

+ather Information

on %ta8eholders

:etermine

%ta8eholder

%trengths &

5ea8nesses

Implement

%ta8eholder

)anagement%trategy

Identify

%ta8eholder#s

)ission

!redict

%ta8eholder

;ehavior

Identify

%ta8eholder

%trategy


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14

Organizational Structure

Consists o three $ey elements

1. 6esignates ormal reporting relationships◦ including the number o levels in the hierarchy◦ span o control o management

2. Froupings o◦ individuals into departments◦ departments into the total organization

7unctionalB FeographicB roduct typeB roject basedB

". 6esign o systems to◦ ensure efective communication◦ coordination◦ integration o eforts across departments


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1

&or"s o Organization Structure

7unctional organizations E groups peopleperorming similar activities intodepartments

roject organizations E groups people into project teams on temporary assignments

/atri% organizations E creates a dualhierarchy in which functions and projects have e>ual prominence


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1(

% &unctional OrganizationalStructure

Board of Directors

Chief Executive

Vice President of

Marketing

Vice President of

Finance

Vice President of

Research

New Product

Developent

!esting

Research "a#s

$ualit%

Market Research

&ales

'fter Market

&upport

'dvertising

Vice President of

Production

"ogistics

(utsourcing

Distri#ution

)arehousing

Manufacturing

'ccounting

&ervices

Contracting

*nvestents

Eplo%ee

Benefits

Board of DirectorsBoard of Directors

Chief ExecutiveChief Executive

Vice President of

Marketing

Vice President of

Marketing

Vice President of

Finance

Vice President of

Finance

Vice President of

Research

Vice President of

Research

New Product

Developent

!esting!esting

Research "a#s

$ualit%

Market Research

&ales

'fter Market

&upport

'fter Market

&upport

'dvertising'dvertising

Vice President of

Production

"ogistics

(utsourcing

Distri#ution

)arehousing

Manufacturing

Vice President of

Production

Vice President of

Production

"ogistics

(utsourcing

Distri#ution

)arehousing

Manufacturing

'ccounting

&ervices

Contracting

*nvestents

Eplo%ee

Benefits

%ilos of wor8


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1

&unctional Structureor Project $anage"ent

Strengths %eaknesses

1. osters development of in-depth8nowledge

2. !ro"ects are developed within the$asic functional structure < nochange to firms functional design

3. !ro"ect team mem$ers remainconnected with their functional

group

4. %tandard career paths

1. unctional siloing < nocolla$oration

2. =ac8 of customer focus-self-focusing

3. !ro"ects may ta8e longer astas8ed are routed from one

department to another

4. !ro"ects may $e su$-optimized


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1

% Project OrganizationStructure

Board of Directors

Chief Executive

Vice President of

Research

Vice President of

Marketing

Vice President of

Production

Vice President of

Finance

Vice President of

Pro+ects

Pro+ect

'lpha

Pro+ect

Beta



Vice President of

Research

Vice President of

Research

Vice President of

Marketing

Vice President of

Marketing

Vice President of

Production

Vice President of

Production

Vice President of

Finance

Vice President of

Finance

Vice President of

Pro+ects

Vice President of

Pro+ects

Pro+ect

'lpha

Pro+ect

'lpha

Pro+ect

Beta

Pro+ect

Beta


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1

Project Structureor Project $anage"ent


1. !ro"ect manager sole authority

2. Improved communication

across the organization

3. ,apid decision-ma8ing

4. !romotes the creation of

pro"ect management eperts

. lei$le and rapid response

1. pensive to set up andmaintain teams

2. 0hance of loyalty to thepro"ect rather than the firm

3. >o pool of specific 8nowledge

4. 5or8ers unassigned at pro"ectend


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#ee$s a balancebetween the unctionaland projectorganizations

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% $atrix Organization Structure

Board of Directors

Chief Executive

Vice President of

Research

Vice President of

Marketing

Vice President of

Production

Vice President of

Finance

Vice President of

Pro+ects

Pro+ect

'lpha

Pro+ect

Beta

, resources - resource

- resource

-./ resources

, resources , resources

0 resources

,./ resources



Vice President of

Research

Vice President of

Research

Vice President of

Marketing

Vice President of

Marketing

Vice President of

Production

Vice President of

Production

Vice President of

Finance

Vice President of

Finance

Vice President of

Pro+ects

Vice President of

Pro+ects

Pro+ect

'lpha

Pro+ect

'lpha

Pro+ect

Beta

Pro+ect

Beta

, resources - resource

- resource

-./ resources

, resources

-./ resources

, resources , resources

0 resources

,./ resources

0 resources

,./ resources


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$atrix Structuresor Project $anage"ent


1. %uited to dynamicenvironments

2. ?ual emphasis on pro"ectmanagement and functionalefficiency

3. !romotes coordination across

functional units

4. )aimizes scarce resources

1. :ual hierarchies mean two$osses

2. >egotiation re?uired in orderto share resources

3. 5or8ers caught $etween

competing pro"ect & functionaldemands

21


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22

Organizational Structure'nfuences on Projects

-!);o8 2994


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23

(ea)y*eight ProjectOrganizations

0rganizations can sometimes gain tremendousbene


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Centralized units that oversee or improvethe management o projects

Resource centers or◦ #upport with technical details

◦ G%pertise

◦ Central repository or lessons learned

◦ Center or e%cellence

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Project $anage"ent O+cesP$O-


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2

&or"s o P$Os

9eather station◦ used only to monitor and trac$ projects

Resource pool◦ maintain and provide a group o s$illed project

proessionals

Control tower◦

project management is a s$ill to be protected andsupported

◦ ocuses on establishing standards! consultingHenorcing!and improving project management s$ills


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2(

Organizational Culture

4he unwritten rules o behavior! or norms! that are used to

shape and guide behavior, is shared by some subset oforganization members and is taught to all newmembers o the company.

Iey actors that afect culture development◦ 4echnology level

◦ =usiness environment

◦ Feographical location

◦

Reward systems◦ Rules and procedures

◦ Iey organizational members

◦ Critical incidents

@ave you heard of

AThe Toyota 5ayBC


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.ey &actors That %/ect Culture0e)elop"ent

4echnology

Gnvironment

Feographicallocation

Rewardsystems

Rules andprocedures

Ieyorganizational

members

Criticalincidents


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2

Culture %/ects Project$anage"ent Success

6epartmental interaction

Gmployee commitment to goals

roject planning

erormance evaluation

8ttitudes


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#tart with a cage containing


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1. 4he chapter suggests that a de


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'. 9hat are some o the $ey organizational elements that can afect thedevelopment and maintenance o a supportive organizational cultureB8s a consultant! what advice would you give to a unctional organizationthat was see$ing to move rom an old! adversarial culture! where thevarious departments actively resisted helping each other! to one thatencourages (project thin$ing) and cross5unctional cooperationB

*. ?ou are a member o the senior management staf at M?N Corporation. ?ou have historically been using a unctional structure set up with


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Your task:1. +n your groups! prepare a two5minute brie

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