Organizational Capability:
Structure, Culture, and Roles
Chapter 3
Contemporary Project Management
Kloppenborg
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to a publicly accessible website, in whole or in part.
Chapter
Vignette
Atos Origin
• Atos Origin has been through three
mergers/acquisitions in the last 15 years.
• The project life cycle for most projects follow the
typical IT project management approach.
• A team of global employees works to service a
client need
– Onsite – program managers, projectmanagers,
business analysts, and technical architects
– Offshore – designers, developers, testers
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to a publicly accessible website, in whole or in part.
Chapter
Vignette
Atos Origin
• Entire operation is managed through a program
management office (PMO)
• PMO identifies, prioritizes, and ensures delivery
of all projects
• Adaptability and empathy are helpful strengths
for project managers in this environment
– Adaptability including the ability to hold the global
team together
– Empathy useful in respecting different choices of
team members
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to a publicly accessible website, in whole or in part.
At the end of this chapter…
• Compare and contrast the functional, project, strong
matrix, balanced matrix, and weak matrix methods of
organization.
• List and describe organizational culture elements that
are helpful in planning and managing projects.
• List and describe how to overcome organizational
culture elements that hinder successful projects.
• Describe different project life cycle models and tell
when each is appropriate.
• Describe the duties, motivations, and challenges of
each of the executive, managerial, and team roles in
projects and list important attributes for selecting each.
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to a publicly accessible website, in whole or in part.
Types of Organizational Structures
• Functional organizations
• Projectized organizations
• Matrix organizations
Organizational structures consist
of work assignments, reporting
relationships, and decisionmaking responsibility.
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to a publicly accessible website, in whole or in part.
Functional Organization
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Clear lines of authority according to type of work
Grouped by areas of specialization
One and only one supervisor
Functional manager
– Controls the budget
– Makes project decisions
– Coordinates project communications
functional organization – “a hierarchical organization
where each employee has one clear superior, staff are
grouped by areas of specialization, and managed by a
person with expertise in that area.” PMBOK® Guide
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to a publicly accessible website, in whole or in part.
Functional Organization
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to a publicly accessible website, in whole or in part.
Advantages of Functional Organization
• Unity of command – only one “boss” is giving
instructions
• Workers learn readily from each other and keep
technical skills sharp
• Upon project completion, workers continue to
report to the same functional manager
• Share resources among multiple small projects
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to a publicly accessible website, in whole or in part.
Disadvantages of Functional Organization
• Slow communications across multiple functions
and channels
• Technical difficulty in incorporating input from
other disciplines
• Long communication channels make for slow
decision making and slow response to change
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to a publicly accessible website, in whole or in part.
Projectized Organizations
• The project manager has authority for budgets,
personnel, and decision making
• People are assigned to a project and report
upward through the project manager
• The reporting manager is a project manager, not
a functional manager
projectized organization – “any organizational
structure in which the project manager has full authority
to assign projects, apply resources, and direct work of
persons assigned to the project.” PMBOK® Guide
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to a publicly accessible website, in whole or in part.
Projectized Organization
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to a publicly accessible website, in whole or in part.
Advantages of Projectized Organization
• Traditional department barriers are reduced
– People from different functions report to the same
manager
• Unity of command – only one “boss” is giving instructions
• Communication response times are fast
• Co-location – team members are physically close
– Enhanced project team identity
– Strong customer focus
– Effective integration effort
co-location – “an organizational placement strategy
where the project team members are physically located
close to one another to improve communication, working
relationships, and productivity.” PMBOK® Guide
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to a publicly accessible website, in whole or in part.
Disadvantages of Projectized
Organization
• Cost of assigning team members to only one
part-time project
• Teams development work methods that differ
from the organization
• Teams may fail to communicate lessons learned
• Discipline-specific competence may suffer
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Matrix Organization
• The project manager and functional manager
share authority
• Team members report to both managers
• A combination of the task focus of the
projectized organization with the technical
capability of the functional organization
matrix organization – “any organizational structure in
which the project manager shares responsibility with the
functional managers for assigning priorities and directing
work of persons assigned to the project.” PMBOK®
Guide
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to a publicly accessible website, in whole or in part.
Matrix Organization
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to a publicly accessible website, in whole or in part.
Advantages of Matrix Organizations
• Shared resources between departments and projects
• Good cooperation between functional and project
managers
• High-quality decisions are well received
• Continued development of discipline specific knowledge
• Effective integration
• Lessons learned shared effectively
• Flexibility – weak, balance, strong matrix
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Progression of Organizational Form
Functional Manager
Who has power?
Project Manager
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Disadvantages of Matrix Organization
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Each employee has two “bosses”
More sources of conflict
More meetings
More challenges to control
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Organizational Structure Comparison
Who makes most project
decisions?
Advantages
Functional
Matrix
Projectized
Functional manager
Shared
Project manager
•Good discipline-specific
•Flexible
knowledge
•Easy for central control •Easy to share resources
•Break down department
barriers•Shorter response time
•Effective for shared
resources
•Good cooperation
between departments
•Quicker decisions
•One “boss”
•More input for decisions
•One “boss”
•Clear career path for
professionals
•Wide acceptance of
decisions
•Good discipline-specific
knowledge
•Effective integration on
project
•Enhanced project team
identity
•Customer focus
•Effective integration on
project
•Increased knowledge
transfer between projects
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to a publicly accessible website, in whole or in part.
The Project Management Office (PMO)
• The Manager of Project Managers may head a
PMO
• Reports to the President
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360-Degree Performance Reviews
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Organizational Culture and Its
Impact on Projects
• Formal and informal practices shared among
members of the organization
• “Values are deep seated, personal standards
that influence our moral judgments, responses
to others, and commitment to personal and
organizational goals.”
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to a publicly accessible website, in whole or in part.
Organizational Culture and Its
Impact on Projects
• Organizational cultures informally:
– Motivate the ethical actions and communications of
managers and subordinates
– Determine how people are treated, controlled, and
rewarded
– Establish how cooperation, competition, conflict, and
decision making are handled; and encourage
personal commitment to the organization and
justification for its behavior
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Culture of the Parent Organization
• What is the orientation of the corporate culture in
general?
• What are the ascribed values?
• How is the organization viewed by others in
terms of living the values?
• How does the organization like to communicate
internally and externally?
• How well does the organization support project
management specifically?
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to a publicly accessible website, in whole or in part.
Types of Power
• Power culture – formal authority (the “boss”)
controls competition, conflict resolution, and
communication
• Role culture – strictly follow formal designations
of responsibility (“roles”)
• Task culture – getting the job done is most
important
• Person culture – genuine interest in needs and
development of workers
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to a publicly accessible website, in whole or in part.
Successful Organization Culture
Characteristics
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Support for cross-functional teams
Stakeholder involvement
Integrity
Innovation
Open communication
Continuous improvement
Respect for individuals
PM competencies
A common PM language
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to a publicly accessible website, in whole or in part.
Midland Insurance Company Values
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Creativity
Propriety
Sharing/Caring
Personal Growth
Hixson Architecture and
Engineering Values
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Culture of the Project
• Act ethically in the best interests of the project,
the project team, other project stakeholders
• Project manager behaviors
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Responsibility
Respect
Fairness
Honesty
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Project Life Cycles Common
Characteristics
• Definite starting and ending points
• Phases with required activities before
proceeding to the next phase
– Initiating, planning, executing (one or more), closing
• Organizations adapt life cycle models to
organizational culture
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General Project Life Cycle Model
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Define-Measure-Analyze-ImproveControl (DMAIC) Model
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Research and Development (R&D)
Project Life Cycle Model
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Construction Project Life Cycle
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Information Systems (IS) Project Life
Cycle
Approval
to proceed
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Agile Project Life Cycle
• Short bursts of planning and delivery of benefits
in multiple increments during project execution
• SCRUM, XP, Crystal, EVO, phased delivery,
rapid prototyping, evolutionary
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Project Roles
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Project Executive Roles
• Steering Team (ST)
• Sponsor
• Chief Projects Officer (CPO)
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Steering Team
• The top person in the organization and his/her
direct reports
• Collectively represent all of the major functions
of the organization
• In large organizations, there may be multiple
steering teams
• AKA executive team, management team,
leadership team, operating team
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to a publicly accessible website, in whole or in part.
Steering Team Activities
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Overall priority setting
Project selection and prioritization
Sponsor selection
General guidance – at set times or at project
milestones
• Offer encouragement
Milestone – “a significant point or event
in the project” PMBOK® Guide
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to a publicly accessible website, in whole or in part.
Sponsor
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Has a major stake in the project outcome
Often a member of the steering team
May pick the project manager and core team
Mentor the project manager
Active role in chartering the project
Share their vision for the project
Sponsor – “the person or group that provides
financial resources, in cash or in kind, for the project”
PMBOK® Guide
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Sponsor Ensures Performance of
Customer-Related Tasks
• All customers (stakeholders) have been
identified.
• Customer desires are uncovered and prioritized.
• Project delivers what the customers need.
• Customers accept the project deliverables.
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to a publicly accessible website, in whole or in part.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
Chief Projects Officer/
Project Management Office
• The person who “owns” the organizations
project management system
• Role varies with organization size
• Ensures projects are planned and managed well
• Ensures steering team tasks accomplished
• Ensures functions of individuals
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PMO Monitored
Steering Team Responsibilities
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Identify potential projects
Select a manageable set of projects
Prioritize projects
Ensure resources
Selects sponsors and teams
Charters project teams
Monitors and controls project implementation
Rewards participants
Enjoys results of successful projects!
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to a publicly accessible website, in whole or in part.
PMO Monitored
Team Member Responsibilities
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Receive necessary training
Capture lessons learned
Use lessons learned on new projects
Uses templates and standards where
appropriate
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to a publicly accessible website, in whole or in part.
Project Management Roles
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Functional Manager
Project Manager
Facilitator
Customer
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Functional Manager
• May be department heads
• Large role in deciding how project work is done
• Negotiate with PMs to assign members to
project
• Balance of power between FMs and PMs
depend on level of formalized project
management
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Project Manager
• The focal point of the project
• Leads the planning, executing, and closing of
the project
• Responsible for the project schedule
• Responsible for delivering project results
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to a publicly accessible website, in whole or in part.
Desired Project Manager
Behaviors/Skills
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Demonstrates integrity
Effective communicator
People-oriented – facilitating and forceful
Effective integrator
Effective scheduler
Handles project scope
Achieves the right project quality
Identifies and deals with project risks and opportunities
Effectively procures project goods and services
Maintains cost control
See Exhibit 3.17
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Project Manager Communication
Channels
• Spokes represent communication channels
through the project manager hub
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Project Manager Challenges
• More responsibility than authority
• Must determine how networks function within
certain organizational cultures
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Project Manager Judgment Calls
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Facilitator
• An outside party, often a disinterested sponsor
or project manager
• May be the chief projects officer
• May be a consultant
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Customer
• What does a customer need to do to ensure the
desired results?
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Customer
• What does a customer need to do to ensure the
desired results?
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to a publicly accessible website, in whole or in part.
Project Team Roles
• Core team members
• Subject matter experts
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to a publicly accessible website, in whole or in part.
Core Team Members
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On the project from start to finish
Make decisions
Carry out project activities
Collectively represents entire range of project
stakeholders
• Understands project technologies
• Main concern is completing the project
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to a publicly accessible website, in whole or in part.
Subject Matter Experts
• Meet specific, temporary project needs
• Chosen for their specific expertise
• Extended team members
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Summary
• Different organizational structures are chosen
based on their advantage in a given situation.
• Many organizations have informal matrix
relationships.
• Organizational culture represents the formal and
informal way people relate to each other.
• Projects follow a predictable project life cycle.
• Projects require executive, managerial, and
associate level roles.
• The project manager is a central role of project
development.
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Project Leadership Roles at
TriHealth
• TriHealth manages several large hospitals and
other health organizations
• Leadership decided to formally define leadership
roles:
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Project executive sponsor
Project leader
Performance improvement consultant
Core team member
Subject matter expert
PM in Action Example
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