PMI41 Project Organization

7/17/2019 PMI41 Project Organization

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EuroProjexEuroProjex [email protected]© jrt/epm/mar06

EuroProjex

uroProjex

Project and Programme Management Project and Programme Management

Session 4.1:Session 4.1: Project Organization Project Organization

Professor J Rodney TurnerProfessor J Rodney Turner

Visiting ProfessorVisiting Professor

Limerick UniversityLimerick University





Project Organization Project Organization

The problem of organizingThe problem of organizing

External organizationExternal organization

Internal organizationInternal organization

Responsibility chartsResponsibility charts


The problem of organizing The problem of organizing

Transforming a conflict (political) system intoTransforming a conflict (political) system intoa cooperative (rational) onea cooperative (rational) one

A conflict systemA conflict system individual objectives not jointly consistentindividual objectives not jointly consistent

organizes through exchanges between actorsorganizes through exchanges between actors

A cooperative systemA cooperative system

individuals act rationally towards a commonindividuals act rationally towards a commonobjectiveobjective -- goals alignedgoals aligned

Levitt and March 1995Levitt and March 1995




Aims of organizing

Achieve cooperation

Share goals

Act rationally


Achieving cooperation Achieving cooperation




DelegitimizationDelegitimization

of Othersof Others

Crafting cooperationDesign of Design of

OrganizationOrganization

ShapingShaping

Social NormsSocial Norms

CommonCommon

LanguageLanguage

DesiredDesired

BehaviourBehaviour

AssumptionsAssumptions

about Peopleabout People

LegitimizationLegitimization

of Behaviourof Behaviour


DelegitimizationDelegitimization

••Self Self --promotionpromotion

••CompetitionCompetition

••AggressivenessAggressiveness

Crafting cooperationPractices & ProcessesPractices & Processes

••Self developmentSelf development

••Coaching/mentoringCoaching/mentoring

••Enriching othersEnriching others NormsNorms

••ConversationConversation

••CooperationCooperation

••DevelopmentDevelopment

LanguageLanguage

••TrustTrust

••CommunicationCommunication

••We not IWe not I

BehaviourBehaviour

AssumptionsAssumptions

••DevelopmentDevelopment


••TrustTrust

LegitimizationLegitimization

••FriendshipFriendship

••TrustTrust





Project, facility, product

OwnerOwner

ContractorContractor

ProjectProject

WorkWork

Benefit/PurposeBenefit/Purpose

OutcomeOutcome

Facility/AssetFacility/Asset

OutputOutput

BenefitBenefit

CostCost

PricePrice

Value toValue to

OwnerOwner

Value toValue to



FinanceFinance

Owner contractor modelOwner contractor model

ObjectivesObjectives

Optimum solutionOptimum solution Value for moneyValue for money

ObjectivesObjectives

Maximum profitMaximum profit Satisfied clientSatisfied client

OwnerOwner

ManagerManager

SponsorSponsor

ResultsResults ResourcesResources

Contract betweenContract betweenOwner andOwner and


Contract betweenContract between

parties involvedparties involved

TeamTeam LdrsLdrs





Two contractsTwo contracts

ExternalExternal


InternalInternal


Planning and controllingPlanning and controlling

scopescope

Organizing & implementingOrganizing & implementing

organizationorganization

Milestone Plan

Specify results

throughout the project

Report on a copy

of the plan

Responsibility Chart

Organization

Procedures

Priorities

Schedule

Activity schedule and progress report

Activity

list

Progress

report

Response

Chart

Bar

Chart

Contract

between project

management

and corporate

management

Contract between project

participants


Two decisionsTwo decisions


relationship project to parent organizationrelationship project to parent organization

managerial responsibility and authoritymanagerial responsibility and authority


relationship of the participants to the taskrelationship of the participants to the task

leadership style of the project managerleadership style of the project manager










Range of matrix structures Range of matrix structures

BalancedBalancedMatrixMatrix

SecondmentSecondmentMatrixMatrix

CoordinatedCoordinatedMatrixMatrix

FunctionalFunctionalHierarchyHierarchy

ProjectProjectHierarchyHierarchy

Projects department or core teamProjects department or core teamCareer in projectsCareer in projects

Large dedicated project teamsLarge dedicated project teams

Projects undertaken in the functionProjects undertaken in the functionFunctional manager is project managerFunctional manager is project managerSmall, single function projectsSmall, single function projects

Resources remain in functionResources remain in functionFunctional manager allots workFunctional manager allots workSingle discipline work packagesSingle discipline work packages

Resources seconded to projectResources seconded to projectProject manager allots workProject manager allots work

Mixed discipline work packagesMixed discipline work packages




Project organization Project organizationCompanyCompany

Dept CDept CDept BDept BDept ADept A

PermanentPermanent

StructuresStructuresTemporaryTemporary

StructuresStructures

ProjectsProjects

DeptDept


Project organization Project organization –– functional functionalhierarchyhierarchy

CompanyCompany


PermanentPermanent



ProjectsProjects

DeptDept

SmallSmall

ProjectProject




Project organization Project organization –– project projecthierarchyhierarchyCompanyCompany


PermanentPermanent



ProjectsProjects

DeptDept

SmallSmall

ProjectProjectLargeLarge

ProjectProject


Project organization Project organization –– secondedsecondedmatrixmatrix

CompanyCompany


PermanentPermanent



ProjectsProjects

DeptDept

SmallSmall


ProjectProject

Mixed Mixed

Work Pack Work Pack

People seconded People seconded

for duration of for duration of

their involvementtheir involvement




Project organization Project organization –– coordinatedcoordinatedmatrixmatrixCompanyCompany


PermanentPermanent



ProjectsProjects

DeptDept

SmallSmall


ProjectProject

Mixed Mixed

Work Pack Work Pack

People seconded People seconded

for duration of for duration of

their involvementtheir involvement

SingleSingle

Work Pack Work Pack Project Manager Project Manager

gives work togives work to

Functional Manager Functional Manager

to resourceto resource


Project success rates Project success rates

100%100%

LikelihoodLikelihoodof successof success

FunctionalFunctionalhierachyhierachy

CoordinatedCoordinatedmatrixmatrix

BalancedBalancedmatrixmatrix

SecondmentSecondmentmatrixmatrix

ProjectProjecthierarchyhierarchy

Development projectsDevelopment projects••Goals not well definedGoals not well defined••Users involvedUsers involved

Implementation projectsImplementation projects••Goals well definedGoals well defined••Users not involvedUsers not involved










Leadership styles

LaissezLaissez--FaireFaire

DemocraticDemocratic

AutocraticAutocratic

BureaucraticBureaucratic

Involvement of Team inInvolvement of Team inFlexibilityFlexibility

HighHigh

HighHigh

LowLow

LowLow

HighHigh

LowLow

LowLow

LowLow

Decision Making Decision Making Decision Taking Decision Taking

HighHigh

HighHigh

HighHigh

LowLow




Isomorphic structures

Stage Structure Leadership Team

Feasibility Egoless Laissez-faire Experts

Design Matrix Democratic Mixed

Execution Hierarchy Autocratic Task

Close Surgical Bureaucratic Task force


Internal structures

Isomorphic

Egoless

Speciality, (matrix) Task

Surgical




Project workProject work

Project teamProject team

Task 1Task 1 Task 2Task 2 Task 3Task 3

Specialist 1Specialist 1Specialist 2Specialist 2

Specialist 3Specialist 3Manager Manager

Egoless team structure


Speciality team structure




Specialist 1Specialist 1



Manager Manager




Task team structure




Team 1Team 1 Team 2Team 2 Team 3Team 3

Manager Manager


Surgical team structure







Manager Manager










Responsibility chart Responsibility chart

PBSPBS

MilestonesMilestones

Activity/TaskActivity/Task

WBSWBS

Roles/ResponsibilitiesRoles/Responsibilities

OBSOBS

Companies/Departments/FunctionsCompanies/Departments/Functions

Resources/PeopleResources/People




SymbolsSymbols

X - eXecutes the work

D - takes Decision solely or ultimately

d - takes decision jointly or partly

P - manages Progress

T - provides Tuition on the job

C - must be Consulted

I - must be Informed

A - available to Advise


Case history 1Case history 1 -- Design of a computer Design of a computersystem for a North Sea oil platformsystem for a North Sea oil platform

Attached are responsibility charts for theAttached are responsibility charts for theproject for the computer systems on theproject for the computer systems on theNorth Sea Oil Platform.North Sea Oil Platform.

Two charts are attached:Two charts are attached:

at the milestone levelat the milestone level

at the activity level for milestones SY4 and ST4,at the activity level for milestones SY4 and ST4,(there is only one activity for ST4).(there is only one activity for ST4).




Developing a responsibility chart Developing a responsibility chart

Just like the milestone plan, the Just like the milestone plan, theresponsibility chart should be completedresponsibility chart should be completedthrough group workthrough group work

Fill in the row and column headingsFill in the row and column headings

Project the chart onto a white boardProject the chart onto a white board

Fill in the body of the matrixFill in the body of the matrix

each row can take 10 minuteseach row can take 10 minutes the whole chart two hoursthe whole chart two hours

Determine the duration of each workDetermine the duration of each workelementelement

Fill in the bar chartFill in the bar chart






END of SESSION 4 1ND of SESSION 4 1

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PMI41 Project Organization

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