1. 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

2. 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

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

4. 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

5. 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

6. Ch 4.2: Pure Project Organization

7. 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

8. 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”

9. Ch. 4.3: The Matrix Organization

10. Ch. 4.3: From Project Emphasis to Functional Emphasis
Functional Division Provides
PM Role
Strong
People
Controls people individually
Balanced
Functional units
Controls functional units
Weak
Capacity
Coordinates project activities

11. 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

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

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

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

15. Ch. 4.5: Choosing an 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

16. 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

17. 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

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

19. 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

20. 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

21. 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

22. Ch. 4.6: Project Management Office (PMO) Statistics
Founded before ‘97
# Employees
# Projects
>1000
>300
<300
>11
>40
Govt.
75%
Public
15%
All
80%
10%
67%
25%

23. 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 satisfaction

24. 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

25. 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

26. 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

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

28. 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 organization’s OVERALL project risk portfolio

29. 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

30. Ch. 4.6: 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

31. Ch. 4.6: Completeness of PMO
PMO Tasks
Lower level 2
Middle level
1, 4, 5, 6, 7, 8, 13, 16
Upper level
3, 9, 10, 11, 12, 14, 15, 17

32. Ch. 4.6: PMO Tasks As a Function of Reporting Level
FM (IT or Engineering)
5, 6
VP (business level)
1, 4, 16
CEO (strategic level)
2, 3, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17

33. 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

34. 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

35. 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)

36. Ch. 4.7: Typical Organization for Engineering Projects

37. 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!

38. 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

39. 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

40. 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

41. 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)

42. 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

43. 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

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

45. 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

46. 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

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

48. 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!

49. Ch. 4.8: Conflict Management
PM encourages openness
PM sets role model in conflict resolution
PM harnesses energy of conflict
When outside pressure too high, avoid face-to-face meetings