Session 2 Handouts
9
1 Business Project Management Session 2 Organization Strategy and Organizational Structure and Culture San Diego, CA The Strategic Management Process Payback versus Net Present Value approaches Project Prioritization Organizational Structures Dimensions of Organizational Culture AGENDA 2
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Transcript of Session 2 Handouts
1
Business Project Management!Session 2!
!Organization Strategy and !
Organizational Structure and Culture "!"
! ! ! ! ! San Diego, CA!
!
§ The Strategic Management Process!
§ Payback versus Net Present Value approaches!
§ Project Prioritization!
§ Organizational Structures!
§ Dimensions of Organizational Culture!
AGENDA!
2
2
The Strategic Management process entails phases for defining a mission, formulating strategies, and implementing projects!Strategic Management Process
3 Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Review and Develop Mission
& Vision Strategy
Implementation Strategy
Objectives and Portfolio
Environment Analysis
External
Internal
Project Selection and
Implementation
Vision Criteria Mission
Embedding
Strategy Execution
Tactical Execution
Set Strategy &Objectives Portfolio of
Choices
Project Selection
Project Execution
-Vision Criteria Development -Weighing of Criteria
-SWOT and Capability Analysis -PESTEL
-SPECIFIC -MEASURABLE -ASSIGNABLE -REALISTIC -TIME-RELATED
-Resource allocation -Prioritization
-Project Selection -Motivation -Tracking of Success
Compliance Project
Strategic Projects
Operational Projects
Project Portfolio
Portfolio of Projects!
Sources: Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Project Portfolio
• Compliance (and emergency) projects are regulatory demanded
4
• Strategic Projects support revenue and market share generation along the vision and mission
• Operational Projects support current operations (TQM, efficiency, synergistic, cost oriented)
3
§ The Strategic Management Process!
§ Payback versus Net Present Value approaches!
§ Project Prioritization!
§ Organizational Structures!
§ Dimensions of Organizational Culture!
AGENDA!
5
6
Payback approaches to evaluating projects are very simplistic!
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Application
Does not account for time value of money
Simplistic
No uncertainty evaluation
Does not assume cash flow beyond investment period
4
7
Net Present Value Approach!
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
§ The Strategic Management Process!
§ Payback versus Net Present Value approaches!
§ Project Prioritization!
§ Organizational Structures!
§ Dimensions of Organizational Culture!
AGENDA!
8
5
9
Project Screening Matrix!
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Selection models need to mirror the objectives of the entire organization
Multi-Weigthed models are usually weighted by multiple people
Qualitative and quantitative criteria
10
Project Priority Evaluation Form!
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
6
§ The Strategic Management Process!
§ Payback versus Net Present Value approaches!
§ Project Prioritization!
§ Organizational Structures!
§ Dimensions of Organizational Culture!
AGENDA!
12
One approach for project structures includes embedding into functional organizations…!
Functional Project Coordination
Adv. Disadv.
• Clear roles/respon- sibilities • Synergies and flexibility across Functions • Expertise
• Integration • Customer Focus • Ownership challenges • Speed
Marketing Engineering Procurement and Logistics
President
Sales
Marketing
International
Electronics
Software
Mechanical
Logistics
Supply Chain
Purchasing
Manufacturing
Fabrication
Assembly
Scheduling
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HR, Finance, Administration
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Functional Project Coordination and Alignment
7
A second approach includes dedicated project teams…!Dedicated Project Teams
Adv. Disadv.
• Speed of Project • Simple to Set-up • Cross-Functional • High level of motivation and Cohesiveness
• Expensive • Limited Technological embedding • Post project transitions are difficult
14
Marketing Engineering Procurement and Logistics
President
Sales
Marketing
International
Electronics
Software
Mechanical
Logistics
Supply Chain
Purchasing
Manufacturing
Fabrication
Assembly
Scheduling
HR, Finance, Administration
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Project Manager
Member 1
Member 2
Member 3
A third approach includes a projectized organization structure…!
Projectized Organization Structure
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Project Manager A Project Manager B Project Manager C
President
Engineering
Manufacturing
Procurement
Engineering
Manufacturing
Subcontractors
Innovation
Supply Chain
Subcontractors
Marketing
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Finance
HR
Legal
8
A further approach for project structures includes matrix organizations…!
Matrix Organization
Adv. Disadv. • Efficient • Project Focus • Flexible
• Conflict • Speed • Complex hierarchy structure
Director of Projects Engineering Procurement and Logistics
President
Project Administration Electronics
Software
Mechanical
Logistics
Supply Chain
Purchasing
Manufacturing
Fabrication
Assembly
Scheduling
16
HR, Finance, Administration
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
Matrix
Project Manager A
Project Manager B
2
4
1
1
4
4
§ The Strategic Management Process!
§ Payback versus Net Present Value approaches!
§ Project Prioritization!
§ Organizational Structures!
§ Dimensions of Organizational Culture!
AGENDA!
17
9
Cultural Dimensions!
Identity
Team
Management Focus
Unit Integration
Control
Risk Tolerance
Rewards
Conflict Tolerance
Orientation
Open System
18
Job
Individual
Task
Independent
Loose
Low
Performance
Low
Means
Internal
Organization Group People Interdependent Tight High Other High Ends External
Sources: adapted from Larson, E.W. and Gray, C.F. (2015). Project Management: The Managerial Process. McGraw Hill. 6th Edition.
