Organizational Change Richard Moscatiello, MBA, PMPApril 16, 2010

Structural Influences on Projects Source: PMBOK Guide Third Edition, ©2004 PMI, Figure 2.6, page 28

Environmental Domain Human Resources Government Sociocultural Financial Resources Technology Economic Conditions International Industry Organization Raw Materials Market Domain Source: Daft, Richard L., Organization Theory and Design, 7th edition, South Western College Publishing, 2001, page 131

Environmental Uncertainty HIGH to MODERATE HIGH to MODERATE LOW to MODERATE LOW to MODERATE ENVIRONMENTAL CHANGE ENVIRONMENTAL COMPLEXITY SimpleComplex Unstable Stable LOW HIGH Source: Daft, page 138

Phase of development Source: Daft, page 284. SIZE Large Small Elaboration Formalization Collectivity Entrepreneurial CreativityDevelopment of teamwork Development of internal systems Emergence of clear direction Crisis: Need for Leadership Crisis: Need for delegation with control Crisis: Need to deal with too much red tape Streamlining, small company thinking Continued maturity Decline Crisis: Need for revitalization

Structural Fit  Structure designed for unstable complex environment with High Uncertainty  Need fast response to changing market conditions  Communication of needs and solutions across divisional boundaries  Coordination of efforts across divisions Information processing requirement of goals, environment, and technology  Structure designed for stable environment with Low Uncertainty  Slow to respond to market shifts  Internal focus, departmental silos within divisional boundaries  Routine execution within divisions Information processing capacity of existing structure, mechanisms, and departmental groupings Ineffective Execution STRUCTURAL MISFIT Source: Daft,

Seeking a Balance That Works Managers focused on their own division or department Formal job descriptions Internal task orientation Vertical coordination Specialized employees loaned across divisional lines Job descriptions flexible Customer interaction Horizontal coordination Integration v. Differentiation Tension Source: Daft, 442

Inter-organizational Perspectives DissimilarSimilar Competitive Cooperative Population Ecology ORGANIZATION TYPE RELATIONSHIP Resource Dependence Collaborative Network Institutionalism Source: Daft, page 170

Object Oriented Programs Capability Maturity Model (CMM) Process Algorithm Objects Software Language Statements Processor Instructions OrganizationsProjectsTasks Activities

CMM Integration (CMMI) Entrepreneurial Phase Collectivity Phase Formalization Phase Elaboration Phase Development Source:

Organizational Project Management Maturity Model (OPM3) Processes from PMBOK standard incorporated 3 interlocking elements: ~ Knowledge ~ Assessment ~ Improvement OPM3 Online - web-based Best Practices database OPM3 ProductSuite - certifications, software tools

Risk Zones Source: Richard L. Daft, Organization Theory and Design, page 284. Elaboration Formalization Collectivity Entrepreneurial Streamlining, small company thinking Continued maturity Decline Actions: Assess Communicate Prepare Actions: Assess Communicate Prepare

Possible PM Risks Loss of a project resource Reassignment of key personnel New chain of command More bureaucracy or different bureaucracy Budget cuts Management power struggles Mergers and acquisitions

Black Swan  Rarity  Extreme impact  Retrospective predictability Nassim, Nicholas Taleb, April 22, 2007

Thank You ! Richard Moscatiello, MBA, PMP (912) (404)