PMP® – Organizational Influences &

Project Management Lifecycle

Organizational Culture & Structure Impacts
on Project Management

Casey Ayers • PMP® • MBA

CaseyAyers.com | @caseyayers
linkedin.com/in/caseyayers

PMP® is a registered mark of the Project Management Institute, Inc.

 Course Overview
Concepts from Chapters 2 & 3 of PMBOK® Guide
Impact of organizational culture and structure
Project stakeholders and governance
Composition of project teams
Project lifecycle and project phases
Project management process groups
Project information and the role of knowledge areas

PMBOK® is a registered mark of the Project Management Institute, Inc.

 Module Overview

Organizational influence on project management

Cultures and styles
Communication techniques
Organizational structures

PMBOK® is a registered mark of the Project Management Institute, Inc.

Organizational Influences on Project Management
 Organizational Influences on Project Management
•

Projects take place within larger

organizations & structures
•

Project work will align with

organizational…
Goals
• •

Policies
Expectations
• •

Practices
Organizational Influences on Project Management

Culture Style Structure

Includes, not limited to organizational PM style

PMOs • Program Management • Portfolio Management

External factors can also make an impact

Clients • Joint Ventures • Partnerships
Cultural Norms Within Organizations
 Cultural Norms Within Organizations

Developed over time. Includes:

•

How projects are initiated/planned

•

Acceptable methods for accomplishing

work
•

Centers of authority and decision-

making
 Cultural Norms Within Organizations

Norms evolve based on

mutually shared experience
and common cultural factors
 Cultural Factors

Shared vision,
mission, values,
beliefs
 Cultural Factors
•

Regulations,
policies,
methods and
procedures

"Marcroquarter" by Marlith (CC)

http://commons.wikimedia.org/wiki/
 Cultural Factors

Motivation and
reward systems

“What’s Your Motivation?” by Libby Levi (CC)

http://bit.ly/1w7clSR
 Cultural Factors

Risk tolerance

“Risk – Onyx Edition” by Derek Gavey (CC)

http://bit.ly/1603ytr
 Cultural Factors
•

Leadership,
hierarchy and
authority
relationships

“US Army Africa” by Edward N. Johnson (CC)

http://bit.ly/1scYM0h
 Cultural Factors

Work ethic &

conduct

“Berry Hard Work” by JD Hancock (CC)

http://bit.ly/1CZJOEZ
 Cultural Factors

Operating
environments

“Spacewalking Astronaut John Grunsfeld” by NASA (CC)

http://bit.ly/1AUxAbS
 Cultural Norms Within Organizations

PM must understand path to

•

success may vary greatly based on

cultural factors

Critical to perceive which

•

stakeholders carry weight and

engage them throughout
Organizational Structures
 Organizational Structures

Can affect…

How projects develop How resources are How resources are

and progress allocated made available
 Organizational Structures

Functional Projectized

PM authority and autonomy

 Functional Organizations
CEO

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff Staff Staff Staff Staff Staff Staff

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Functional Organizations
CEO

Accounting Sales Production

Manager Manager Manager

Staff Staff Staff Staff Staff Staff Staff Staff Staff

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Functional Organizations
CEO

Accounting Sales Production

Manager Manager Manager

Accounts Accounts Tax Product Product Product Product A Product B Product C

Receivable Payable Dept A Sales B Sales C Sales Production Production Production

May be further divided into sub-functions

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Functional Organizations
CEO

Accounting Sales Production

Manager Manager Manager

Accounts Accounts Tax Product Product Product Product A Product B Product C

Receivable Payable Dept A Sales B Sales C Sales Production Production Production

May be further divided into sub-functions

•

Each department conducts projects independently of others

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Functional Organizations
CEO Project
Coordination

Accounting Sales Production

Manager Manager Manager

Accounts Accounts Tax Product Product Product Product A Product B Product C

Receivable Payable Dept A Sales B Sales C Sales Production Production Production

May be further divided into sub-functions

•

Each department conducts projects independently of others

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Functional Organizations
Project manager authority Little or none
Resource availability Little or none
Budget manager Functional Manager
Project manager’s role Part-Time
Project administration staff Part-Time

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Projectized Organizations
CEO

Project Project Project

Manager Manager Manager

Staff Staff Staff Staff Staff Staff Staff Staff Staff

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Projectized Organizations
CEO

Project Project Project

Manager Manager Manager

Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Projectized Organizations
Project
Coordination
CEO

Project Project Project

Manager Manager Manager

Staff Staff Staff Staff Staff Staff Staff Staff Staff

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Projectized Organizations
Project manager authority High to almost total
Resource availability High to almost total
Budget manager Project Manager
Project manager’s role Full-Time
Project administration staff Full-Time

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Table 2-1, Page 22
Organizational Structures
 Organizational Structures

Functional Projectized

PM authority and autonomy

 Organizational Structures

Weak Balanced Strong

Functional Projectized
Matrix Matrix Matrix

PM authority and autonomy

 Matrix Organizations

Blend of functional and

projectized structures
•

Type of structure varies based

on relative influence of PMs vs
functional managers

“Balance Scale” by winnifredxoxo (CC)

http://bit.ly/1z0otGg
 Weak Matrix Organization
•

Project manager more of a coordinator or expeditor

Expeditor: Staff assistant, communications coordinator.

•

Cannot personally make or enforce project decisions.

•

Coordinator: May make some decisions and has some

authority/project control. Still reports to a manager.
 Weak Matrix Organization
CEO

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff Staff Staff Staff Staff Staff Staff

Project Coordination
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-2, Page 23
 Weak Matrix Organizations
Project manager authority Low
Resource availability Low
Budget manager Functional Manager
Project manager’s role Part-Time
Project administration staff Part-Time

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Table 2-1, Page 22
 Strong Matrix Organization
•

Full-time project manager with considerable authority

Project manager is provided with full-time resources

•

May or may not be allowed to select staff directly

•

Maintains budget authority and accountability

•

Professional PM focused on PM tasks

 Strong Matrix Organization
CEO

Functional Functional Manager of

Manager Manager Project Managers

Staff Staff Staff Staff Staff Staff PM PM PM

Project Coordination
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-4, Page 24
 Strong Matrix Organizations
Project manager authority Moderate to High
Resource availability Moderate to High
Budget manager Project Manager
Project manager’s role Full-Time
Project administration staff Full-Time

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Table 2-1, Page 22
 Balanced Matrix Organization
•

Mix of weak and strong matrix traits

Project manager does not have full authority over project

•

Project manager does not have full authority over budget

•

Project manager often answers to a functional department

•

PM focuses full-time on project; resources do not

 Balanced Matrix Organization
CEO

Functional Functional Functional

Manager Manager Manager

Staff Staff Staff Staff Staff Staff Staff PM Staff

Project Coordination
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-3, Page 24
 Balanced Matrix Organizations
Project manager authority Low to Moderate
Resource availability Low to Moderate
Budget manager Mixed Authority
Project manager’s role Full-Time
Project administration staff Part-Time

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Table 2-1, Page 22
Composite Organizations
 Composite Organizations

Organizational structures are idealized models

•

Many organizations use different at different levels

in a company
 Functional Model
Special
CEO Projects Team

Accounting Sales Production

Manager Manager Manager

Accounts Accounts Tax Product Product Product Product A Product B Product C

Receivable Payable Dept A Sales B Sales C Sales Production Production Production

Team may include staff from various departments

•

PM/resources maybe full or part-time

 Strong Matrix Model
CEO

Functional Functional Manager of

Manager Manager Project Managers

Staff Staff Staff Staff Staff Staff PM PM PM

•

Small projects may still be accomplished at a

department/function level
 Projectized Model
CEO

Project Project Project

Manager Manager Manager

Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Projectized Model
Apogee Ventures

Manned Commercial Shared

Program Payload Systems

Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject Subproject

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Fifth Edition,
Project Management Institute, Inc., 2013, Figure 2-5, Page 25
 Projectized Model
Manned Program

Capsule Life Support Mission Planning

Development QA Fabrication Development QA Fabrication Science Logistics Commercial

Staff Staff Staff Staff Staff Staff Staff Staff Staff

 Composite Organizations

Handled at what level?

•

Structure may vary •

Strategic
based on project •

Middle-Management
scope and criticality •

Operational
Key Factors in Project/Organizational Structure

• Strategic importance • Project management

• Ability for stakeholders systems
to influence project • Organizational
• Degree of communication tools
organizational project and techniques
management maturity
 Key Determinations of
Project/Organizational Structure

PM level of authority
Resource availability and accountability
Control of project budget
Overall role of PM
Composition of team and allocation of
resources
Module Review:

Organizational Influences
Projects take place within larger organization
Projects align to organizational policies,
practices and goals
Cultural norms can broadly impact project
process and success factors
Module Review:

Organizational Structures
Functional environments provide PMs with
the least control
Projectized environments provide PMs with
the most control
Matrix environments balance authority
between functional and project managers
Module Review:

Composite Structures
Different organizational structures can
appear at different levels of organizations
Special exceptions may be made for high-
priority projects and goals
Many factors can determine org structure as
it relates to a particular project
Organizational Process Assets and
Enterprise Environmental Factors