Professional Documents
Culture Documents
Introduction
Once the management approves the project then the question becomes how will the project be implemented? What will be the project life cycle? How will the project be organized? What will be the effects of organization culture?
Introduction
Projects and project management are carried out in an environment broader than the project itself. The project management team must understand this broader context so that it can select the life cycle, tools and techniques and processes that appropriately fit the project. Project management structure and culture of the organization constitute major elements of the environment in which projects are implemented. It is important for project managers and participants to know the lay of the land so that they can avoid obstacles and take advantage of pathways to complete their projects.
Introduction
Project management system provides a framework for launching and implementing project activities within a parent organization. A good system appropriately balances the needs of both the parent organization and the project by defining the interface between the project and parent organization in terms of authority, allocation of resources and eventual integration of project outcomes into mainstream operations.
Project managers or the organization can divide projects into phases to provide better management control with appropriate links to ongoing operations of the performing organization.
Example: software development project may have five phases: definition, design, code, integration test, maintenance.
AcceleratedSAP (ASAP) is a comprehensive method for accelerating SAP R/3 implementation projects. The combination of the set of ASAP components ensure quick and efficient implementation of the SAP R/3 System. The ASAP Roadmap, a process-oriented, comprehensible, compressed project plan, leads the implementation process step by step. ASAP describes how to implement an SAP product / solution.
At the highest level the ASAP Roadmap comprises five phases: 1. Project Preparation - Inclusion of all relevant decision-makers for the SAP R/3 implementation and selection of the internal and external members of the project team. Business Blueprint - Determine the business requirements of the implementing company. The Business Blueprint is a visual representation of the status of the company which is to be realized in the SAP R/3 implementation. Implementation - Configuration and fine-tuning of the SAP R/3 System. Final Preparation - Test all interfaces, train users, migrate business data into the SAP R/3 System. Go Live & Support - Start SAP R/3 production operation, specify procedures and benchmarks to permanently monitor the gains of the investment in SAP R/3.
2.
3. 4. 5.
Cost and Staffing Levels to the project starts low and rises as the project progresses, finally drops rapidly as the project draws to conclusion.
Ability to influence the outcome of the project is high in the beginning and becomes more difficult (and expensive) as time passes.
Level of Uncertainty is highest and hence risk of failing to achieve the objectives is greatest at the start of the project and drops off as time progresses and the opportunity for problems lessens.
Phases of a Project All projects can be thought of as a series of phases that have a defined beginnings and defined end points. These phases may overlap. Phases usually have an endpoint that results in some sort of deliverable. A deliverable is a measurable, verifiable work product such as a specification, feasibility study report, detailed design document, or working prototype.
Deliverable from one phase are usually reviewed for completeness and accuracy and approved before work starts at the next phase.
Phases are not the same as project management process groups.
Phases of a Project The purpose of the phased approach is to allow management to decide whether to proceed with a project without having to commit large amount of resources.
Each sub-phase is aligned with one or more specific deliverables for monitoring and control.
Majority of these sub-phase deliverables are related to the primary phase deliverable, and the phases typically take their names from these phase deliverables: requirements, design, build, test, startup, turnover, and others, as appropriate.
Phase 1
Initiating Planning Executing Monitoring & Control Closing
Phase 2
Initiating Planning Executing Monitoring & Control Closing
Phase 3
Initiating Planning Executing Monitoring & Control Closing
Phase 4
Initiating Planning Executing Monitoring & Control Closing
Project Management Structures Four types: Functional Organization Dedicated Project Teams Matrix (Weak, Balanced and Strong) Organization Network Organization
Working in Matrix system in one organization is different from working in matrix in another organization. Researches attribute this to the organizational culture in the two organizations. Organizational culture reflects the personality of the organization.
Functional Organization
Chief Executive
Human Resources
Finance
Marketing
Engineering
Manufacturing
Procurement
Customer Services
Domestic Sales International Sales
Electronics Engineering
Software Engineering Mechanical Engineering Design
Fabrication
Purchasing
Assembly
Testing
Production Scheduling
Functional Organization
Project Coordination
Functional Manager Functional Manager Functional Manager Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Functional Structure
Advantages
No change in organizational structure Flexibility In-depth expertise Easy post-project transition Easier management of professionals Team members only report to one supervisor Similar resources are centralized, the company is grouped by specialists Clearly defined career paths in areas of work specialization
Functional Structure
Disadvantages
Lack of focus Poor integration Slow Lack of ownership People place more emphasis on their functional specialty to the determent of the project No career path in project management Project manager has little or no authority
These disadvantages are more pronounced when the scope of the project is broader and one functional department does not take the dominant technological and managerial lead on the project.
Marketing
Engineering
Manufacturing
Procurement
Project Manager
Customer Services
Domestic Sales International Sales
Electronics Engineering
Software Engineering Mechanical Engineering Design
Fabrication
Purchasing
Assembly
Testing
Production Scheduling
Marketing
Legal
Other projects
Project 1 PM Project 2 PM
Other projects
Engineering
Engineering
Subcontractor 1 Subcontractor 2
Procurement
Project Coordination
Advantages Simple, fast and efficient project organization Cohesive Cross functional integration Loyalty to the project More effective organization than functional
Disadvantages Expensive Internal strife Limited technology expertise Difficult post-project transition No home when project is complete Lack of professionalism in disciplines Duplication of facilities and job functions Less efficient use of resources
Director of Projects
Marketing
Engineering
Customer Services
Domestic Sales
International Sales
Electronics Engineering
Software Engineering
Mechanical Engineering
Project Manager 1
Project Manager 2
Project Manager 3
Different Matrix Forms In practice there are really different kind of matrix systems, depending on relative authority of the project and functional managers. Functional, lightweight or weak matrix balance of authority strongly favors the functional managers. Balanced or middleweight matrix traditional matrix arrangement. Project, heavyweight or strong matrix balance of authority is strongly on the side of project manager.
Functional Manager
Functional Manager
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project Coordination
Golden boxes represent staff engaged in project activities Project Managers role is more of that of a coordinator / expeditor rather than a true project manager.
Functional Manager
Functional Manager
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project Manager
Staff
Staff
Staff
Project Coordination
Golden boxes represent staff engaged in project activities. The need for a project manager is recognized but project manager does not have full authority over the project and project funding.
Functional Manager
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project Coordination
Golden boxes represent staff engaged in project activities. Project Manager is a dedicated / specialized project manager.
Matrix Organization Structure Advantages Efficient Strong Project Focus Easier Post-Project Transition Flexible Highly visible project objectives Improved project manager control over resources More support from functional organization Maximum utilization of resources Better coordination Better horizontal / vertical dissemination of information compared to functional Team membership maintain a home
Disadvantages Dysfunctional conflict Infighting Stressful Slow Extra administration required More than one boss for project team More complex to monitor / control Tougher problems with resource allocation Need extensive policies and procedures Functional managers may have different priorities than project manager Higher potential for conflict
Functional Manager
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project B Coordination
Project A Coordination
Network Organization Advantages Cost Reduction High level of expertise Flexible Disadvantages Coordination breakthrough Loss of control Conflict
Tight Matrix It has nothing to do with matrix organization Refers to locating the project team offices in the same room
Unlimited Functional Manager Part Time Part Time Part Time Limited Wide range of skills
Very Ineffective
Functional Organization
Weak Matrix
Balanced Matrix
Strong Matrix
Projectized Organization
Choosing Appropriate Project Management Structure Project success is directly linked to the amount of autonomy and authority project managers have over their projects. Best system balances the needs of the project with those of the parent organization. What project structure should an organization use? This is a complicated question with no precise answer. A number of issues need to be considered at both the organization and project level.
Organization Considerations How important is project management to the success of the firm? What percentage of core work involves projects?
75% of work involves projects fully projectized organization. Both standard products and projects matrix organization. Few projects functional organization. Temporary task forces could be created on an as-needed basis and the organization could outsource project work.
Resource availability.
Matrix share resources across multiple projects and functional domains while at the same time creating legitimate project leadership. For organization, that cannot afford to tie up critical personnel on individual projects, a matrix system would appear to be appropriate. An alternative would be to create a dedicated team but outsource project work when resources are not available internally.
Project Considerations How much autonomy the project needs in order to be successfully completed. Hobbs and Menard identify seven factors that should influence the choice of project management structure:
Size of project Strategic importance Novelty and need for innovation Need for integration (number of departments involved) Environmental complexity (number of external interfaces) Budget and time constraints Stability of resources requirements
The higher the levels of these seven factors, the more autonomy and authority the project manager and project team need to be successful. This translates into using either a dedicated project team or project matrix.
Organizational Culture
Strong connection between project management structure, organization culture and project success. Organization culture refers to a system of shared norms, beliefs, values and assumptions which binds people together, thereby creating shared meanings. Reflects the personality of the organization and can enable us to predict attitudes and behaviors of organizational members. Culture is also one of the defining aspects of an organization that sets it apart from other organizations even in the same industry.
Organizational Culture
It is important for project managers to be culture sensitive so that they can develop strategies and responses that are likely to be understood and accepted as well as avoid violating key norms that would jeopardize their effectiveness within the organization.
Organizational Culture
Organizational culture often has a direct influence on project: A team proposing an unusual or high-risk approach is more likely to secure approval in an aggressive or entrepreneurial organization.
A project manager with participative style will have problems in hierarchical / bureaucratic organization.
Organizational Culture Ten primary characteristics which in aggregate, capture the essence of an organizations culture. These characteristics exists on a continuum.
Job Individual Task Independent Loose Low Performance Member Identity Team Emphasis Management Focus Unit Integration Control Risk Tolerance Reward Criteria Organization Group People Interdependent Tight High Other
Low
Means Internal
Conflict Tolerance
Means-ends Orientation
High
Ends External
Organizational Culture
Culture performs several important functions in an organization Provides a sense of identity Helps legitimize the management system Clarifies and reinforces standards of behavior Helps create social order
Organizational Culture
Human Resource Scope How an employee is treated? Work ethics Corporate identity Overtime expected? How does the organization sees itself Training emphasis (leader, follower, environment friendly, etc.) Corporate vs. individual emphasis Internal and External politics Who has the power? How Business Units integrate? Where leadership lies? (share or compete for organization resources) Symbolic Style of management Dress code Formal vs. informal