PROJECT MANAGEMENT (CA51029) A temporary endeavor undertaken to create a

unique product, services, or result

CH1: MODERN PROJECT MANAGEMENT
AN OVERVIEW OF PROJECT MANAGEMENT
Project Management Institute (PMI) is a
professional organization for project managers.
It was founded in 1969 as an international
society for project managers. It provides
certification as a Project Management
Professional (PMP).

MAJOR CHARACTERISTICS OF A PROJECT

A project is different from other organizational
efforts being undertaken by most organizations
because of the following reasons:
 Has an established objective
Example of Projects Given to Recent College
 Has a defined life span with a beginning
Graduates
and an end
a. Business information: install new data
 Involves several departments and
security system
professionals
b. Physical education: develop a new
fitness program for senior citizens  Involves doing something never been
c. Marketing: execute a sales program for done before
a new home air purifier  Has specific, time, budget, resources,
d. Industrial engineering: create a value performance, and value added
chain report for every aspect of a key requirements
product from design to customer
delivery CLASSIFICATIONS OF A PROJECT
e. Chemistry: develop a quality control Project Definition Examples
program for an organization’s drug Type
production facilities 1 Complian It is a “must” Healthcare
. ce project to information
f. Management: implement a new store
meet the protection
layout design
new projects
g. Pre-med neurology student: join a requirement
project team linking mind mapping to an s enforced Environment
imbedded prosthetic that will allow blind by al
people to function normally managemen regulations
h. Sport communication: create a t itself and projects
promotion plan for a women’s basketball regulating
project bodies like
i. Systems engineers: develop data the
mining software of medical papers and government.
studies related to drug efficacy Penalties
j. Accounting: work on an audit of a major await non-
compliances
client
.
k. Public health: design a medical
2 Emergenc It is a “must- Rebuild
marijuana educational program . y do” project factory
l. English: create a web-based user that is damaged by
manual for a new electronics product required to fire
meet
PROJECT emergency Renovate
PROJECT DEFINED (PMI) condition. If plant
not done will destroyed
 impair by a strong PRIMARY GOALS OF A PROJECT
operation typhoon  Conclude the project within the planned
and will not timetable.
be able to  Complete the project within the
fulfill the programmed budget.
core
 End the project with the identical level of
competenci
es of the quality.
firm.  Terminate the project within the detailed
3 Mission It is a Construction guidelines.
. Critical project to of a data  Make the best of the task that has been
the mission center for an given.
of the firm. application
If not services PROGRAM VERSUS PROJECT
accomplishe provider Program is a group of related projects deigned
d shall to accomplish a common goal over an extended
cause A new period of time.
immediate facility to
and test
unacceptabl products Project Management is a process of managing
e negative a group of ongoing, interdependent, related
impact to projects in a coordinated way yo achieve
the strategic objectives
business.
4 Operation Operational Six sigma Example
. al project is projects PROJECT PROGRAM
considered Completion of a Completion of all
necessary required course in courses required for
in order to project management a business major
give full
support to ADVANTAGES OF PROJECT MANAGEMENT
the present  A more resourceful handling of
operations resources (both human and monetary
like delivery
resources) as both the schedule and the
systems
upgrading budget are clear in the project plan.
for  Less cost and better quality of the end
efficiency, product/service conveyed by executing
product meticulous cost management and
costs quality management processes.
cutback and  A better, more firm affiliation with the
performanc client and other stakeholders by
e employing stakeholder management.
enhanceme  An improved teamwork atmosphere
nt.
because of the implementation of a
5 Strategic It is a New product
formal process to
. project that design
is vital to acknowledging/receiving conflicts
support the Developmen (conflict management).
long term t projects  A flattering touch of professionalism to
mission of the company leading to a healthier
increasing insight by external organizations.
revenue and
market DISADVANTAGES OF PROJECT
share. MANAGEMENT
 Overhead
o Cost overhead – all actions
that can outlay a sizable sum of
money must be kept aligned
with the overall business
strategy to make sound
investments.
o Communication overhead –
instead of having the
information stream directly from
functional managers down to
the team members and back up,
it’s all channeled through the
project Manager.
o Time overhead – Project
Managers can never precisely
evaluate the extent of any task
and pad their approximation so
that they won’t wind up with a
late project.
 Obsession
o Methodology obsession –
Project Managers become so
blocked and so defensive to
their own methodology that they
reject to try out with a different
one that may be quicker and
superior for their existing
project.
o Process obsession – Quite a
few Project Managers deter the
advancement of the project with
their obsession for attaching to
the process. The motive why
most Project Managers think
process obsession as a good
practice is because of insecurity
and fear of loss of control.
o Stakeholder obsession –  Failure to administer projects with
instead of administering the
stakeholders’ expectations,
requests, and interference, and
focusing on getting their
support, these Project
Managers strive their best to
accommodate the stakeholders.
This accommodation, which
often manifests itself in gold
plating, is pricey and
unnecessary. Gold-plating is
the act of furnishing the
customer more than what is
initially requested for.
 Non-creativity
o Technical – Project
Management compels cut-off
date on resources, who have to
work as speedy as they can to
conclude their tasks on time. By
nature, people like to be artistic,
particularly at work. However,
when there’s a Project Manager
breathing down their necks all
the time, their main goal is just
to finish on time so they don’t
mind any longer on setting free
their creativity. This
discourages the resources and
unfavorably influences the
quality of the end product.
o Managerial - Project
Management, by nature,
imposes the routine process.
Managers, habitually leading
humans, become directed by a
process. Their managerial skills
decline, as there’s no
requirement to hone them
anymore: the process is obvious
and it should be pursued.
Likewise, managers (especially
functional managers) become
demoralized.
LIMITATIONS OF PROJECT MANAGEMENT
 Failure to “stick” with the project scope.
 Failure to completely make parallel the
project objectives with the
business/organizational strategy.
unstipulated budget and/or schedule.
 Reliance on functional management.
 Pursuing an exclusive methodology.
ROUTINE WORK VS PROJECTS
ROUTINE, PROJECTS
REPETITIVE WORK
Taking class notes Writing a term paper
Daily entering sales Setting up a sales
receipts into kiosk for a
accounting ledger professional
accounting meeting
Responding to a Developing a supply-
 supply-chain request chain information and mental. The physical product is
system produced (e.g., a bridge, a report, a
Practicing scales on Writing a new piano software program). Time, cost, and
the piano piece specification measures are used for
Routine manufacture Designing an iPod control.
of an Apple iPod that is approximately a. Is the project on schedule, on
2 X 4 inches, budget, and meeting
interfaces with PC, specifications?
and stores 10,000
b. What are the forecasts of each
songs
of these measures?
Attaching tags on a Wire-tag projects for
manufactured GE and Wal-Mart c. What revisions/changes are
product necessary?
4. Closing stage. Closing includes three
PROJECT LIFE CYCLE activities:
The life cycle recognizes that projects have a a. Delivering the project product to
limited lifespan and that there are predictable the customer. Might include
changes in level of effort and focus over the life customer training and
of the project. There are a number of different transferring documents.
life-cycle models in project management b. Redeploying project resources.
literature. Usually involves releasing
project equipment/materials to
other projects and finding new
assignments for team members.
c. Conducting a post-project
review. Post-project reviews
include not only assessing
performance but also capturing
lessons learned.

PROJECT MANAGER
The project manager is responsible for the
following tasks:
 Describing the scope of the project
The project life cycle typically passes accurately.
sequentially through four stages: defining,  Setting up the project schedule, and
planning, executing, and closing. The starting revising that schedule as it progress.
point begins the moment the project is given the  Recommending the project cost and
go-ahead. Project effort starts slowly, builds to a then administering the project to avoid
peak, and then declines to delivery of the project cost overruns.
to the customer.  Ensuring the project team has the
1. Defining Stage. Specifications of the supplies and human resources required
project are defined; project objectives to get the project done on time and on
are established; teams are formed; cost.
major responsibilities are assigned.  Naming and reducing possible risks to
2. Planning stage. The level of effort the project timeframe and cost.
increases, and plans are developed to  Communicate the project's development
determine what the project will entail, to management.
when it will be scheduled, whom it will  Guarantee the quality of the team's work
benefit, what quality level should be and any supplies or materials used by
maintained, and what the budget will be. the team.
3. Executing stage. A major portion of the
project work takes place—both physical
The project manager also:
 Manages temporary, non-repetitive
activities and frequently acts
independently of the formal
organization.
 Marshals resources for the project.
 Is the direct link to the customer.
 Works with a diverse troupe of
characters.
 Provides direction, coordination, and
integration to the project team.
 Is responsible for performance and
success of the project.
 Must induce the right people at the right
time to address the right issues and
make the right decisions.
Key Skills of a Project Manager
 Organizational skill
 Skill to develop people
 Communication skill
 Interpersonal skill
 Skill to handle stress
 Problem solving skill
 Management and leadership skill
 Time management skill
 Technical skill
CURRENT DRIVERS OF PROJECT
MANAGEMENT
Factors leading to the increased use of project
management:
 Compression of the product life
cycle. A common rule of thumb in the
world of high-tech product development
is that a 6-month project delay can
result in a 33 percent loss in product
revenue share. Speed, therefore,
becomes a competitive advantage;
more and more organizations are relying
on crossfunctional project teams to get
new products and services to the market
as quickly as possible.
 Knowledge explosion. Product
complexity has increased the need to
integrate divergent technologies. Project
management has emerged as the key
discipline for achieving this task.
 Triple bottom line (Planet, People,
Profit). The threat of global warming
has brought sustainable business
practices to the forefront. Businesses
can no longer simply focus on
maximizing profit to the detriment of the
environment and society.
 Increased customer focus. Increased
competition has placed a premium on
customer satisfaction. Customers no
longer simply settle for generic products
and services. They want customized
products and services that cater to their
specific needs.
 Small projects represent big
problems.
AGILE PROJECT MANAGEMENT
 Is a methodology emerged out of
frustration with using traditional project
management processes to develop
software.
 Is now being used across industries to
manage projects with high levels of
uncertainty.
 Employs an incremental, iterative
process sometimes referred to as a
‘rolling wave’ approach to complete
projects.
 Focuses on active collaboration
between the project and customer
representatives, breaking projects into
small functional pieces, and adapting to
changing requirements.
 Is often used up front in the defining
phase to establish specifications and
requirements, and then traditional
methods are used to plan, execute, and
close the project.
 Works best in small teams of four to
eight members.
Rolling Wave Development
 Iterations typically last from one to four
weeks.
 The goal of each iteration is to make
tangible progress such as define a key
requirement, solve a technical problem,
or create desired features to
demonstrate to the customer.
  At the end of each iteration, progress is
reviewed, adjustments are made, and a
different iterative cycle begins.
 Each new iteration subsumes the work
of the previous iterations until the project
is completed and the customer is
satisfied.
PROJECT MANAGEMENT: A SOCIO-
TECHNICAL APPROACH
Technical Dimension (Science)
 Consists of the formal, disciplined,
purely logical parts of the process.
 Includes planning, scheduling, and
controlling projects.
Sociocultural Dimension (Art)
 Consists of the formal, disciplined,
purely logical parts of the process.
 Includes planning, scheduling, and
controlling projects.
Text Overview
 Chapter 2 focuses on how
organizations go about evaluating and
selecting projects.
 Chapter 3 discusses matrix
management and other organization
forms and also discusses the significant
role that culture of an organization plays
in the implementation of projects.
 Chapter 4 deals with defining the scope
of the project and developing a work
breakdown structure (WBS).
 Chapter 5 explores the challenge of
formulating cost and time estimates.
 Chapter 6 focuses on utilizing the
information from the WBS to create a
project plan in the form of a timed and
sequenced network of activities.
 Chapter 7 examines how organizations
and managers identify and manage
risks associated with project work.
 Chapter 8 explores resource allocation
and how resource limitations impact the
project schedule.
 Chapter 9 examines strategies for
reducing project time either prior to the
initiation of the project or in response to
problems or new demands placed on
the project.
 Chapter 10 focuses on the role of the
project manager as a leader and
stresses the importance of managing
project stakeholders within the
organization.
 Chapter 11 focuses on the core project
team and combines the latest
information on team dynamics with
leadership skills/techniques of
developing a high-performance project
team.
 Chapter 12 discusses how to outsource
project work and negotiates with
contractors, customers, and suppliers.
 Chapter 13 focuses on the kinds of
information managers use to monitor
project progress and discusses the key
concept of earned value
 Chapter 14 covers closing out a project
and the important assessment of
performance and lessons learned.
 Chapter 15 discusses agile project
management, a much more flexible
approach to managing projects with
high degree of uncertainty.
 Chapter 16 focuses on working on
projects across cultures.
 CH2: ORGANIZATION STRATEGY AND  Requires strong links among mission,
PROJECT SELECTION goals, objectives, strategy, and
implementation.

TWO MAJOR DIMENSIONS OF STRATEGIC

MANAGEMENT
1. Responds to changes in the external
environment and allocates the firm’s
scare resources to improve its
competitive position. (SWOT
ANALYSIS)
2. Internal responses to new action
WHY PROJECTS MANAGERS NEED TO
programs aimed at enhancing the
UNDERSTAND STRATEGY
competitive position of the firm.
Two main reasons project managers need to
understand their organization’s mission and
FOUR ACTIVITIES OF THE STRATEGIC
strategy:
MANAGEMENT PROCESS
1. TO MAKE APPROPRIATE DEISIONS
The sequence of activities of the strategic
AND ADJUSTMENTS. How a project
management process is:
manager would respond to a suggestion
1. Review and define the organizational
to modify the design of a product or to
mission. The mission identifies “what
delays may vary depending upon
we want to become.” Mission
strategic concerns
statements identify the scope of the
2. TO BE EFFECTIVE PROJECT
organization in terms of its product and
ADVOCATES. Project managers have
service.
to be able to:
2. Analyze and formulate strategies.
a. Demonstrate to senior
Formulating strategy answers the
management how their project
question of what needs to be done to
contributes to the firm’s mission
reach objectives. Strategy formulation
in order to garner their
includes determining and evaluating
continued support.
alternatives that support the
b. Explain to stakeholders why
organization’s objectives and selecting
certain project objectives and
the best alternative.
priorities are critical in order to
3. Set objectives to achieve strategies
secure buy-in on contentious
(SMART). Objectives translate the
trade-off decisions.
organization strategy into specific,
c. Explain why the project is
concrete, measurable terms. Objectives
important to motivate and
answer in detain where a firm is headed
empower the project team
and when it is going to get there.
(Brown, Hyer and Ettenson,
4. Implement strategies through
2013).
projects. Implementation answers the
question of how strategies will be
STRATEGIC MANAGEMENT PROCESS: AN
realized, given available resources.
OVERVIEW
STRATEGIC MANAGEMENT
 Is the process of assessing “what we
are” and deciding and implementing
“what we intend to be and how we are
going to get there.”
 Is a continuous, iterative process aimed
at developing an integrated and
coordinated long-term plan of action.
 b. The term sacred cow is often
used to denote a project that a
STRATEGIC MANAGEMENT PROCESS powerful, high-ranking official is
advocating.
3. PROBLEM 3: RESOURCE
CONFLICTS AND MULTITASKING. A
multi-project environment creates the
problems of project interdependency
and the need to share resources.
Resource sharing leads to multitasking
—involves starting and stopping work on
one task to go and work on another
project, then returning to the work on the
original task.

BENEFITS OF PROJECT PORTFOLIO

MANAGEMENT
 Builds discipline into project selection
process.
 Links project selection to strategic
CHARACTERISTICS OF OBJECTIVES
metrics.
(SMART)
1. Specific. Be specific in targeting an  Prioritizes project proposals across a
objective. common set of criteria, rather than on
2. Measurable. Establish a measurable politics or emotion.
indicator(s) of progress.  Allocates resources to projects that align
3. Assignable. Make the objective with strategic direction.
assignable to one person for  Balances risk across all projects.
completion.  Justifies killing projects that do not
4. Realistic. State what can realistically be support organization strategy.
done with available resources.  Improves communication and supports
5. Time-related. State when the objective agreement on project goals.
can be achieved, that is, duration.
PROJECT CLASSIFICATION
THE NEED FOR A PROJECT PRIORITY
SYSTEM
Implementation of projects without a strong
priority system linked to strategy create
problems.

1. PROBLEM 1: THE IMPLEMENTATION

GAP. The implementation gap is the
lack of understanding and consensus of
organization strategy among top and
middle-level managers.
2. PROBLEM 2: ORGANIZATION
POLITICS
a. Project selection may be based
not so much on facts and sound PHASE GATE MODEL
reasoning as on the PHASE GATE MODEL
persuasiveness and power of  Is a series of gates that a project must
people advocating projects. pass through in order to be completed.
  Its purpose is to ensure that the
organization is investing time and
resources on worthwhile projects that
contribute to its mission and strategy.
 Each gate is associated with a project
phase and represents a decision point.
 A gate can lead to three possible
outcomes: go (proceed), kill (cancel), or
recycle (revise and resubmit).
PHASE GATE PROCESS DIAGRAM
SELECTION CRITERIA
1. Financial Criteria
a. Payback
b. Net present value (NPV)
2. Nonfinancial Criteria
a. Projects of strategic importance
to the firm
3. Two Multi-Criteria Selection Models
a. Checklist Models
b. Multi-Weighted Scoring Models
FINANCIAL CRITERIA: PAYBACK MODEL
Definition
 Measures the time the project will take
to recover the project investment.
 Desires shorter paybacks (shorter =
better)
 Is the simplest and most widely used
model.
 Emphasizes cash flows, a key factor in
business.
Advantages of Payback Method
a. Simple to compute and easy to
understand. One just has to answer the
question: “How soon will the investment
be recovered?”
b. Gives more information about liquidity of
the project.
c. Good surrogate for risk. A quick payback
period indicate a less risky project.
Disadvantages of the Payback Method
a. Does not consider time value of money.
All cash received during the PBP is
assumed to be of equal value in
analyzing the project.
b. Gives more emphasis on liquidity rather
than on profitability of the project. (ROI
rather than ROI?)
c. Does not consider salvage value of the
project
d. Ignores cash flows that may occur after
PBP
e. Assumes cash inflows for the
investment period (and not beyond).
f. Does not consider profitability.
Payback Formula
Example Comparing Two Projects Using
Payback Method
FINANCIAL CRITERIA: NET PRESENT VALUE
(NPV)
Definition
 Uses management’s minimum desired
rate of return (discount rate) to compute
the present value of all net cash inflows.
  Prefers positive NPV to negative NPV.
 Desires higher positive NPVs.
 Is more realistic because it considers
the time value of money, cash flows, and
profitability.
Formula
Example Comparing Two Projects Using Net
Present Value Method
Advantages of NPV Method
a. Emphasizes cash flows.
b. Recognizes the time value of money.
c. Assumes discount rate as the
reinvestment rate.
d. Easy to apply.
Disadvantages of NPV Method
a. Requires predetermination of the cost of
capital or the discount rate to be used.
b. NPV of different competing projects may
not be comparable because of
differences in magnitudes or sizes of the
projects
NONFINANCIAL CRITERIA
Examples of strategic objectives are:
 To capture larger market share.
 To make it difficult for competitors to
enter the market.
 To develop an enabler product, which by
its introduction will increase sales in
more profitable products.
 To develop core technology that will be
used in next-generation products.
 To reduce dependency on unreliable
suppliers.
 To prevent government intervention and
regulation.
TWO MULTI-CRITERIA SELECTION MODELS:
CHECKLIST MODELS
 Use a list of questions to review
potential projects and to determine their
acceptance or rejection.
 Allow greater flexibility in selecting
among many different types of projects
and are easily used across different
divisions and locations.
 Fail to answer the relative importance or
value of a potential project to the
organization and does not allow for
comparison with other potential projects.
Sample Selection Questions Used in
Practice:
TWO MULTI-CRITERIA SELECTION MODELS:
MULTI-WEIGHTED SCORING MODELS
 Use several weighted selection criteria
to evaluate project proposals.
 Include qualitative and/or quantitative
criteria.
 Allow for comparison with other potential
projects.
Project Screening Matrix  Prioritizing projects by senior
management.

A Proposal Form for an Automatic Vehicular

Tracking (AVL) Public Transportation Project

APPLYING A SELECTION MODEL

PROJECT CLASSIFICATION
 Deciding whether the project fits with the
organization strategy.
 Selecting a Model
 Weighted scoring criteria seem the best
alternative because:
o They reduce the number of
wasteful projects using
resources.
o They help to identify project
goals that can be communicated
using the selection criteria as
Risk Analysis for a 500-Acre Wind Farm
corroboration.
o They help project managers
understand how their project
was selected, how their project
contributes to organization
goals, and how it compares with
other projects.

SOURCES AND SOLICITATION OF PROJECT

PROPOSALS
 Within the organization
 Request for Proposal (RFP) from
external sources (contractors/vendors)

RANKING PROPOSAL AND SELECTION OF

PROJECTS
 Evaluating each proposal in terms of
feasibility, potential contribution to
strategic objectives, and fit within a
Project Screening Process
portfolio of current projects.
 Rejecting or accepting the projects
based on given selection criteria and
current portfolio.
  Ensure the selection process is open
and free of power politics.
 Evaluate the progress of current
projects.
 Constantly scan the external
environment to determine if organization
focus and/or selection criteria need to
be changed.

BALANCING THE PORTFOLIO FOR RISKS

AND TYPES OF PROJECTS
David and Jim Matheson studied R&D
organizations and developed a classification
scheme that could be used for assessing a
project portfolio. They separated projects in
terms of degrees of difficulty and commercial
value. The four basic types of projects are:
1. Bread-and-butter projects involve
Priority Screening Analysis evolutionary improvements to current
products and services.
2. Pearls represent revolutionary
commercial advances using proven
technology.
3. Oysters involve technological
breakthroughs with tremendous
commercial potential.
4. White elephants showed promise at
one time but are no longer viable.

KEY TERMS
1. Implementation gap
2. Net present value (NPV)
Organization politics
3. Payback
4. Phase gate model
5. Priority system
6. Priority team
7. Project portfolio
8. Project sponsor
9. Sacred cow
MANAGING THE PORTFOLIO SYSTEM
10. Strategic management
SENIOR MANAGEMENT INPUT
 Provides guidance in establishing
CH3: ORGANIZATION STRUCTURE AND
selection criteria that strongly align with CULTURE
the current organization strategies.
 Annually decides how to balance the PROJECT MANAGEMENT STRUCTURES
available organizational resources Three different project management structures
(people and capital) among the different are:
types of projects. 1. Functional Organization
2. Dedicated Project Teams
GOVERNANCE TEAM RESPONSIBILITIES 3. Matrix Structure
 Publish the priority of every project. a. Weak Matrix
 b. Balanced Matrix we-they attitude can emerge between
c. Strong Matrix project team members and the rest of
the organization.
ORGANIZING PROJECTS WITHIN THE
FUNCTIONAL ORGANIZATIONS
 Top management decides to implement
the project, and different segments of
the project are distributed to appropriate
areas.
 Coordination is maintained through
normal management channels.
 It is commonly used when one
Projectized Organization Structure
functional area plays a dominant role in
completing the project or has a
dominant interest in the success of the
project.

Advantages and Disadvantages of Using

Functional Organization to Administer and
Complete Projects
ADVANTAGES DISADVANTAGES Strengths and Weaknesses of the Dedicated
No change Lack of focus Team Approach
Flexibility Poor integration
STRENGTHS WEAKNESSES
In-depth expertise Slow
Simple Expensive
Easy post-project Lack of ownership
Fast Internal strife
transition
Cohesive Limited technological
expertise
ORGANIZING PROJECT AS DEDICATED Cross-functional Difficult post-project
TEAMS integration transition
 Dedicated project teams operate as
units separate from the rest of the ORGANIZING PROJECTS WITHIN A MATRIX
parent organization. ARRANGEMENT
 A full-time project manager is  Matrix management is a hybrid
designated to pull together a core group organizational form in which horizontal
of specialists who work full time on the project management structure is
project. overlaid on the normal functional
 The project manager recruits necessary hierarchy.
personnel from both within and outside o There are usually two chains of
the parent company. command, one along functional
 In a projectized organization where lines and the other along project
projects are the dominant form of lines.
business, the entire organization is o Project participants report
designed to support project teams. simultaneously to both
 “Projectitis” is referred to as a negative functional and project
dimension to dedicated project teams. A managers.
  The matrix structure is designed to responsible for coordinating
utilize resources optimally. project activities.
o Individuals work on multiple o Functional managers are
projects as well as being responsible for managing their
capable of performing normal segment of the project.
functional duties. o The project manager acts as a
o It attempts to achieve greater staff assistant who draws the
integration by creating and schedules and checklists,
legitimizing the authority of a collects information on the
project manager. status of the work, and
o It provides dual focus between facilitates project completion.
functional/technical expertise
and project requirements. 2. Balanced Matrix
o The project manager is
Matrix Organization Structure responsible for defining what
needs to be accomplished. The
project manager establishes the
overall plan for completing the
project, integrates the
contribution of the different
disciplines, set schedules, and
monitors progress.
o The functional managers are
concerned with how it will be
Division of Project Manager and Functional accomplished. The functional
Manager Responsibilities in a Matrix managers are responsible for
Structure assigning personnel and
Project Negotiated Functional executing their segment of the
Manager Issues Manager project according to the
What has to Who will do How will it be standards and schedules set by
be done? the task? done? the project manager.
When should Where will
the task be the task be 3. Strong Matrix
done? done? o The project manager controls
How much Why will the How will the
most aspects of the project,
money is task be project
including scope trade-offs and
available to done? involvement
do the task? impact assignment of functional
normal personnel. The project
functional manager controls when and
activities? what specialists do and has final
How well has Is the task How well has say on major project decisions.
the total satisfactorily the functional o The functional managers have
project been completed? input been title over their people and are
done? integrated? consulted on a need basis. The
functional managers serve as
Different Matrix Forms subcontractors for the project.
1. Weak Matrix
o This form is very similar to a Advantages and Disadvantages of Matrix
functional approach with the Management
exception that there is a formally ADVANTAGES DISADVANTAGES
designed project manager Efficient Dysfunctional conflict
 Strong project focus Infighting people together, thereby creating shared
Easier post-project Stressful meanings.
transition  Reflects the “personality” of the
Flexible Slow organization.
 Performs several important functions in
PROJECT MANAGEMENT OFFICE (PMO) organizations.
 Is a centralized unit within an o Provides a sense of identity for
organization or a department that its members
oversees and supports the execution of o Helps legitimize the
projects. management system
 Plays a critical role in helping matrix o Clarifies and reinforces
systems mature into more effective standards of behavior
project delivery platforms. o Helps create social order
 Can be characterized in different kinds:
o Weather station—tracks and KEY DIMENSTIONS DEFINING AN
monitors project performance. ORGANIZATIONAL’S CULTURE
o Control tower—improves
project execution.
o Resource pool—provides the
organization with a cadre of
trained project managers and
professionals.
o Command and control center
—has direct authority over the
project.

WHAT IS THE RIGHT PROJECT

MANAGEMENT STRUCTURE?
ORGANIZATION CONSIDERATIONS
 How important is the project
management to the success of the firm?
 What percentage of core work involves
projects?
 What level of resources are available?

PROJECT CONSIDERATIONS
IDENTIFYING CULTURAL
 Size of project
CHARACTERISTICS
 Strategic importance
 Study the physical characteristics of an
 Novelty and need for innovation organization.
 Need for integration (number of  Read about the organization.
departments involved)
 Observe how people interact within the
 Environmental complexity (number of organization.
external interfaces)
 Interpret stories and folklore surrounding
 Budget and time constraints the organization.
 Stability of resource requirements
ORGANIZATIONAL CUKTURE DIAGNOSIS
ORGANIZATIONAL CULTURE WORKSHEET
ORGANIZATIONAL CULTURE
 Is a system of shared norms, beliefs,
values, and assumptions that blinds
IMPLICATIONS OF ORGANIZATIONAL
CULTURE FOR ORGANIZING PROJECTS
 Project managers interact with:
o The culture of their parent
organizations as well as the
subcultures of various KEY TERMS
departments. 1. Balanced matrix
o The project’s clients or customer 2. Dedicated project team
organizations. 3. Matrix
o Other organizations connected 4. Organizational culture
5. Projectitis
to the project such as suppliers
6. Projectized organization
and vendors, subcontractors,
7. Project management office (PMO)
consulting firms, government
8. Strong matrix
and regulatory agencies, and
9. Weak matrix
community groups.
 “A riverboat trip” is a metaphor
describing the relationship between
organizational culture and project
management. Culture is the river and
the project is the boat.

CULTURAL DIMENSIONS OF AN
ORGANIZATION SUPPORTIVE OF PROJECT
MANAGEMENT