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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
Presentation Sections Hybrid project/functional
organization Pure project organization Matrix organization Choosing an organizational form The project team Human factors and the project
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
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
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
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”
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
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
Ch. 4.4: Mixed Organizational Systems (I)
Coexistence of pure project and functional organization to form a mixed system
Choosing an Organizational Form
Organizational form
Project type Technology type
Functional Large capital investment
In-depth
Matrix Integration of functional areas
Reasonably complex
Pure Project Many similar projects
Routine or highly unique
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
Risk Management Sub-processes
Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control
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
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
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
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
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
PMO Tasks (I)1. Establish and enforce good
project management processes2. Assess/improve organizations
project management maturity3. Acquire enterprise project
management system4. Train and certify PMs5. Cultivate competent PMs
PMO Tasks (II)6. Consulting services for company PMs7. Help PMs with administrative details8. Risk evaluation9. Product “fit” for organization10. Monitor market changes and alert PMs
of potentially needed scope changes11. Review and limit organizations
OVERALL project risk portfolio
PMO Tasks (III)12. Audits and project reviews13. Keep project management database14. Help launch new projects15. Recognize and reward project
management excellence16. “Home” for PMs17. Disseminate project management
knowledge
Timetable for Implementing PMO Tasks
Timeframe PMO tasks
First few months
1., 7., 16.
First year 2., 3., 5., 8., 9., 14., 15.
Long term 4., 6., 10., 11., 12., 13., 17.
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
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
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)
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!
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
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
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)
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
Pillars of Team Building Action plan:
also acts as control mechanism Mutual dependency:
team members hold each other accountable for reaching goals
Essential Company Support for Team Building Effective rewards Individual and team performance
feedback Individual and team goal setting