1. 2-1 ELC 347 project management Day 3

2. Questions?? Assignment 1 posted in Blackboard –Due September 15 @ 3:35 PM Assignment 2 posted in Blackboard –Due September 18 @ 3:35 PM Discussion on the Organizational Context & Change managment Agenda 1-2

3. Staging a large concert –Robert Roy –Anthony Bryan –Joshua Daigle –Henley Comrie Building a subdivision in Fort Kent –Nancy Thibodeau –Melinda Plourde –Spenser Ouellette –Emery Demers Isaac Ward?? 1st team group meeting and group assignment (pages 72-73) will be part of next class period Integrated Project teams

4. 2-4 The Organizational Context: Strategy, Structure, and Culture Chapter 2 © 2007 Pearson Education

5. 2-5 Successful project management Contextual --- organization itself matters –Must reconcile with Organizational Strategy Stakeholders Organizational Structure Culture

6. 2-6 Projects and Organizational Strategy Strategic management – the science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives. Consists of: –Developing vision and mission statements –Formulating, implementing and evaluating –Cross functional decisions –Achieving objective –BUS 411

7. 2-7 Projects Reflect Strategy A firm wishing to……may have a project redevelop products or processesto reengineer products or processes. changes strategic direction or product portfolio configuration to create new product lines. improve cross-organizational communication & efficiency to install an enterprise IT system. Projects are stepping stones of corporate strategy The firm’s strategic development is a driving force behind project development Some examples include:

8. 2-8 Relationship of Strategic Elements Fig 2.1 Mission Objectives GoalsProgramsStrategy

9. 2-9 An example

10. 2-10 Stakeholder Management Stakeholders are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development. Sets of project stakeholders include: Internal Stakeholders Top management Accountant Other functional managers Project team members External Stakeholders Clients Competitors Suppliers Environmental, political, consumer, and other intervenor groups

11. 2-11 Project Stakeholder Relationships Clients Project Manager Other Functional Managers External Environment Project Team Accountant Top Management Parent Organization Fig 2.3

12. 2-12 Managing Stakeholders 1.Assess the environment 2.Identify the goals of the principal actors 1.Hidden agendas 2.Goal displacement 3.Mutually beneficial alignments 3.Assess your own capabilities 4.Define the problem 5.Develop solutions 6.Test and refine the solutions

13. 2-13 Project Stakeholder Management Cycle Fig 2.4 Project Management Team Identify Stakeholders Gather Information on Stakeholders Determine Stakeholder Strengths & Weaknesses Implement Stakeholder Management Strategy Identify Stakeholders Mission Predict Stakeholder Behavior Identify Stakeholder Strategy D.I. Cleland, 1998

14. 2-14 Organizational Structure Consists of three key elements: 1.Designates formal reporting relationships –number of levels in the hierarchy –span of control 2.Groupings of: –individuals into departments –departments into the total organization 3.Design of systems for –effective communication –coordination –integration across departments

15. 2-15

16. 2-16 Forms of Organization Structure Functional organizations – group people performing similar activities into departments Project organizations – group people into project teams on temporary assignments Matrix organizations – create a dual hierarchy in which functions and projects have equal prominence

17. 2-17 Functional organization

18. 2-18 Functional Structures for Project Management StrengthsWeaknesses 1.Firm’s design maintained 2.Fosters development of in- depth knowledge 3.Standard career paths 4.Project team members remain connected with their functional group 1.Functional siloing 2.Lack of customer focus 3.Projects may take longer 4.Projects may be sub-optimized

19. 2-19 Project Structure

20. 2-20 Project Structures for Project Management StrengthsWeaknesses 1.Project manager sole authority 2.Improved communication 3.Effective decision-making 4.Creation of project management experts 5.Rapid response 1.Expensive to set up and maintain teams 2.Chance of loyalty to the project rather than the firm 3.No pool of specific knowledge 4.Workers unassigned at project end

21. 2-21 Matrix Structure

22. 2-22 Matrix Organization Cross-functional & Project teams

23. 2-23 Matrix Structures for Project Management StrengthsWeaknesses 1.Suited to dynamic environments 2.Equal emphasis on project management and functional efficiency 3.Promotes coordination across functional units 4.Maximizes scarce resources 1.Dual hierarchies mean two bosses 2.Negotiation required in order to share resources 3.Workers caught between competing project & functional demands

24. 2-24 Heavyweight Project Organizations Organizations can sometimes gain tremendous benefit from creating a fully-dedicated project organization Lockheed Corporation’s “Skunkworks” http://www.skunkworks.net/ Project manager authority expanded Functional alignment abandoned in favor of market opportunism Focus on external customer

25. 2-25

26. 2-26 Project Management Offices Centralized units that oversee or improve the management of projects Resource centers for: –Technical details –Expertise –Repository –Center for excellence

27. 2-27 Forms of PMOs Weather station – monitoring and tracking Control tower – project management is a skill to be protected and supported Resource pool – maintain and provide a cadre of skilled project professionals

28. 2-28

29. 2-29 Organizational Culture The unwritten rules of behavior, or norms that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company. Key factors that affect culture development –Technology –Environment –Geographical location –Reward systems –Rules and procedures –Key organizational members –Critical incidents

30. 2-30 Culture Affects Project Management Departmental interaction Employee commitment to goals Project planning Performance evaluation

31. 2-31 People hate change! Why? What do you as a Project Manager do about it?

32. 2-32 Seth Godin (Fast Company) “Competent people are quite proud of the status and success that they get out of being competent. They like being competent. They guard their competence, and they work hard to maintain it. “ “Competent people resist change” –“ Why? Because change threatens to make them less competent. And competent people like being competent. That's who they are, and sometimes that's all they've got. No wonder they're not in a hurry to rock the boat.” In fact, competence is the enemy of change!

33. 2-33 External forces that drive Change Environmental –Economics –Competition –Interest rate –Distribution channels –Labor –Availability of raw materials –PROJECTS !

34. 2-34 Reaction to change Behavior is manifested in company culture –“what people do when no one is telling then what to do” Peter Bijur, CEO of Texaco, Inc

35. 2-35 Organizations must adapt “For sustainable competitive advantage, you have to change the culture” Peter Bijur Company culture must see change as a positive –Raising to a challenge

36. 2-36 Effect of Change on the project manager Projects Manager deal with change on a daily basis –Schedules –Specifications –Supplies –Labor Project manger are “Change Agents” Seth Godin http://www.fastcompany.com/finder/fc?w=godin

37. 2-37 Individual responses to change People responds differently to change depending on past experience with change –Tolerance of ambiguity –Novelty –Complexity –Insolubility Project mangers must display a positive response to all change

38. 2-38 3 Possible reactions Negative reactions –Employees stop being cooperative Accepting change but not embracing change –We do it because we have to –Grudging acceptance Inciting change –Change for change’s sake

39. 2-39 Professional Survival in the face of change Adopt the following behaviors –Develop awareness for external conditions that drive company success –Recognize cause and effect relationships in the workplace –Take creative actions –View change as positive Read “Who Moved My Cheese?”Who Moved My Cheese?”

40. 2-40 Organizational approaches to change 3 Common approaches –Slash and burn –Support and nurture –Inspire and motivate Project managers do not make large changes decisions but are responsible for implementation of those decisions.

41. 2-41 Urgent Change Problems are aggravated when change is “URGENT” –Challenge #1 Bailout Provide real information Set priorities and get commitments for “on high” –Challenge #2 Poor Morale Remain realistically positive Get the facts Move to the new agenda ASAP

42. 2-42 Ways to speed Change Acceptance Explains reasons for change Project positive outcomes Hold a “wake” for old ways Create group “memories” Get change implementation ideas for departments affected Ask employees to drive the change process

43. 2-43 Ongoing Change Managament A project manager is a facilitator –Set an example –Behave consistently –Recognize employees for embracing change –Nurture growth in employees –Involve employees min goal setting