1. 2. 3 3. © Copyright, Original work by K.Y.Tippayawong, November 2010 1. 2. 3 3. 4 4. 255710 Project Management 1 Functional Pure project M ti Matrix Mixed © Copyright, Original work by K.Y.Tippayawong, November 2010 How to tie project to parent firm How to organize the project H How tto organize i activities ti iti common to multiple p p projects j © Copyright, Original work by K.Y.Tippayawong, November 2010 Organization sub-units b it 255710 Project Management 2 is divided into functional › Integration between sub-units handled by rules, procedures › Management g chain handles problems p › Works well in stable environment 255710 Project Management 3 © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 4 1. Flexible use of staff › Experts pe s assigned ass g ed to o functional u c o a units u s › Assigned to projects as needed 2 2. Staff St ff can easily il b be assigned i d tto multiple projects › Experts can be switched between p j projects easily y › Functional manager picks best expert for each project © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management Figure 5-1 5 Specialists can share knowledge and experience 4. Functional units provide technological/knowledge continuity 3. › › Also provide continuity of policies and procedures Functional manager can train and inspect © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 7 © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 6 Functional areas provide for a career path within a knowledge area 5. › › Engineers can become supervisors or VP’s Does not require movement into project management to advance © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 8 1. Client is not the focus › › 2. Function u c o unit u has as itss own o work o outside ou s de the e project Functional manager not likely to be accountable for project and therefore client › › Function unit sees success in its area as most important P j t seen as secondary, Project d or worse, an interruption © Copyright, Original work by K.Y.Tippayawong, November 2010 4. 9 255710 Project Management Slow response › benefit b fit their th i ffunctional ti l unit it › Interests outside their area may not be fully considered › › › Complex projects require input from a large 255710 Project Management 10 Motivation is weak › Tendency to sub optimize Must share authority with functional managers May be several managers responsible for various parts of project Client may not have a single point of contact att project j t This can make response to the client slow or non-existent © Copyright, Original work by K.Y.Tippayawong, November 2010 6. › Functional managers manage their part to 5 5. › › Functional units not focused on project › Project manager may not have adequate authority 3. Project P j t iis nott th the worker’s k ’ “h “home”” Project manager most likely does not do th i performance their f evaluations l ti May not receive additional pay for difficulties iffi i off working i on project j number of different areas › This can be difficult to coordinate without a common manager © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 11 © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 12 Project manager has full authority 1. › › › Will typically report to senior management (project sponsor) This gives project manager access to managerial advice This centralizes authority and makes for rapid decision making / response to client Figure 5-2 © Copyright, Original work by K.Y.Tippayawong, November 2010 2 2. 13 E Everyone reports t to t the th project j t manager › › › 3 3. 255710 Project Management This gives the project manager the ability to make quick decisions Makes it easier for project manager to motivate and reward members May be tempered by relationship to functional unit © Copyright, Original work by K.Y.Tippayawong, November 2010 4. › › © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 15 Project managers can move from project to project It p pays y to hire, train, and p promote skilled p project j managers Project team has its own identity › Shorter communications lines 14 Can maintain project management skills › 5. 255710 Project Management Project members work for the “project” not the f functional ti l unit it This can significantly improve performance © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 16 Quick decisions 6. › A th it is Authority i centralized t li d 1. Unity of command 7. › › Each worker reports to one, and-only-one, manager Project has a simple structure Structurally simple and flexible 8 8. › › › 2. › › Everyone on project is concerned about project, not their functional unit © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 17 › › › Experts E t on a project j t will ill ffocus on the th areas essential to the project Thi can llead This d tto th them falling f lli behind b hi d iin other th areas It can also be difficult iffi to ffeed their i developing expertise back into the organization i ti © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 19 Project managers tend to stockpile resources so they are available when needed Th also They l tend t d to t keep k those th resources longer l than needed just-in-case © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 18 Organizational inconsistency 4. Experts falling behind in other areas 3. Each project has a full staff This leads to overstaffing Stockpiling › Easy to implement H li ti approach Holistic h 9. Duplicate staffing › › Corner-cutting g “They don’t understand our problems” Life of its own 5 5. › › Projectitis U versus them Us th Life after the p project j ends 6. › › › Lots of uncertainty Will there be layoffs Rusty skills © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 20 Only way to do large, one-time projects Disadvantages i d make k iit iimpractical i l ffor continually doing projects, e.g. construction Matrix developed in aerospace to deal with this © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 21 Functional part provides home for workers after project Functional part helps maintain expertise In a strong matrix, people from functional areas are assigned to project In a weak matrix, capacity from functional areas are assigned g to project p j Figure 5-3 © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 23 22 The project is the focus 1. › That remains the project manager manager’ss responsibility The project has access to entire organization for labor and technology 2. › › © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management Projects draw from functional organizations as required This reduces duplication of resources © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 24 3. Less anxiety about the end of the project › 4. 5. Project members return to their functional organizations Consistent policies › › Parent organization will oversee project Project will have closer access to parent administration Response to client is rapid › › Thatt remains Th i the th project j t manager’s ’ responsibility With much remaining within parent organization, response to parent is also rapid © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 25 Flexibility 7. › › › Easier to balance organizational resources › › 255710 Project Management 27 Less competition for resources C Competition titi can be b controlled t ll d b by parentt organization and functional managers © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 26 Functional units make many decisions, including technology ones 1. Many different M diff t possible ibl structures t t between b t strong and weak Diff Different t structures t t can be b used d for f different diff t projects Different iff structures can be used ffor different iff functional areas © Copyright, Original work by K.Y.Tippayawong, November 2010 6 6. › › › › Project manager has less control than in a pure project Project manager’s control is balanced against g that of the functional manager g If they disagree, it can be hard to resolve Negotiation g is the key y to project p j success © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 28 Projects compete for resources 2. › › › 3. This is Thi i especially i ll ttrue when h th there are severall large projects S Someone above b project j t managers mustt sett and enforce priorities Multiple i schedules will i add stress to functional managers Strong matrices mirror many disadvantages of project structure › 4 4. Workers do not have a single manager › › › © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 29 Project team crosses time, space, organizational or cultural boundaries organizational, Facilitated by the Internet Often organized as a matrix 255710 Project Management 31 This splits loyalty M k performance Makes f appraisal i l diffi difficult lt Information flow is difficult © Copyright, Original work by K.Y.Tippayawong, November 2010 © Copyright, Original work by K.Y.Tippayawong, November 2010 People are assigned to, and identify with, “their” their project much as in the project structure 255710 Project Management 30 Challenging and interesting projects Use volunteers Use people who know each other Create a resource to learn about one another Encourage frequent communications Divide work into modules © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 32 Firms typically do not set out to “pick” an organizational form Rather, the structure evolves over time The structure is not static Rather, Rather it changes as the organization organization, its goals, and its environment changes Figure 5-4 © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 33 In-depth application of a technology Large capital i l iinvestment, especially i ll when that investment is concentrated in one functional area © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 35 © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 34 Handling a large number of similar projects Handling a one-time project that requires much control but is not focused on one functional area © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 36 Projects that require inputs from several functional areas Projects that use technology from several functional areas © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 37 Projects are risky, uncertainty is high Project manager must manage this risk This is called “risk management” Ri k varies Risk i widely id l b between t projects j t Risk also varies widely between organizations i ti Risk management should be built on the results lt off prior i projects j t © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 39 Risk Management 2. The h Project j Office Offi 1. © Copyright, Original work by K.Y.Tippayawong, November 2010 1. 2. 3. 4. 5 5. 6. 7. 255710 Project Management 38 Risk management planning Ri k identification Risk id tifi ti Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control Ri k managementt d Risk database t b © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 40 1. 2. 3. 4. 5 5. 6. List ways a project can fail Evaluate l severity i Estimate likelihood Estimate the ability to detect Fi d the Find th risk i k priority i it number b Consider ways to reduce © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management › Often called the war room 41 Different project need different staffs Some S common members b include i l d › Contract administrator › Controller Should report to project manager 255710 Project Management 43 In addition to providing a place to work, p built a feeling g of team among g this helps the workers © Copyright, Original work by K.Y.Tippayawong, November 2010 › Engineer © Copyright, Original work by K.Y.Tippayawong, November 2010 All projects should have an office dedicated to that project 255710 Project Management 42 All projects are composed of interconnected groups These groups can form teams It is not enough to have an effective team The team must also be working g towards the good of the project Need to avoid “us us versus them them” mentality © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 44 Some of the problems that prevent a team from performing effectively: › › › › › Internal conflict Member frustration Wasting time Poor decision making g Team members more concerned with finishing job than doing good job Project teams need to work together © Copyright, Original work by K.Y.Tippayawong, November 2010 255710 Project Management 45