Organizational Change Richard Moscatiello, MBA, PMPApril 16, 2010.
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Organizational Change Richard Moscatiello, MBA, PMP April 16, 2010
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Transcript of Organizational Change Richard Moscatiello, MBA, PMPApril 16, 2010.
Organizational Change
Richard Moscatiello, MBA, PMP April 16, 2010
Structural Influences on Projects
Source: PMBOK Guide Third Edition, ©2004 PMI, Figure 2.6, page 28
Strong Balanced Weak
Project Manager's Authority
Resource Availability
Who controls theproject budget
Project Manager's Role
Project Management Administrative Staff
Part Time
Full Time Full Time Part Time Part Time Part Time
Full Time Full Time Full Time Part Time
Little or None
Project Manager
Project Manager
MixedFunctional Manager
Functional Manager
High to Almost Total
Moderate to High
Low to Moderate
Limited
Projectized
Matrix
Functional
High to Almost Total
Moderate to High
Low to Moderate
Limited Little or None
Project Characteristics
Organizational Structure
Environmental Domain
Human Resources
Government
Sociocultural
FinancialResources
Technology
EconomicConditions
International Industry
OrganizationRaw
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
EN
VIR
ON
ME
NT
AL
CH
AN
GE
ENVIRONMENTAL COMPLEXITY
Simple Complex
Unstable
Stable
LOW
HIGH
Source: Daft, page 138
Phase of development
Source: Daft, page 284.
SIZ
E
Large
Small
ElaborationFormalizationCollectivityEntrepreneurial
Creativity
Development 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
DeclineCrisis:
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
STRUCTURALMISFIT
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
RE
LA
TIO
NS
HIP
Resource Dependence
CollaborativeNetwork
Institutionalism
Source: Daft, page 170
Object Oriented Programs
Capability Maturity Model (CMM)
Process Algorithm Objects
Software Language Statements
0111100101010000
1010011100100111
Processor Instructions
Organizations
Projects
Tasks
Activities
CMM Integration (CMMI)
EntrepreneurialPhase
CollectivityPhase
FormalizationPhase
ElaborationPhase
Development
Source: http://www.ask.com/wiki/Capability_Maturity_Model_Integration
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, http://www.nytimes.com/2007/04/22/books/chapters/0422-1st-tale.html, April 22, 2007
