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MODULE 2 UNIT 3

Organisation,
environment, and career
trajectory
Table of contents

1. Introduction 3
2. The project organisation and environment 3
2.1 The typical project team structure 3
2.2 The project’s strategic fit 6
2.3 The project manager’s organisational knowledge 9
3. Project managers’ career paths and certification 10
3.1 Career paths 10
3.2 Professional certification and qualifications 11
4. Conclusion 13
5. Bibliography 13

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Learning outcomes:

LO3: Apply the organisational knowledge required of project managers.

LO4: Compare the possible career paths available to project managers.

1. Introduction
This set of notes takes a close look at the project organisation and environment, and considers
how these factors can affect the project’s overall success. The role of the project sponsor and
project manager are also explored in the context of the strategic requirements of the business
in relation to the project specific objectives. The notes conclude with a discussion of the
possible career and certification options open to project managers with advanced skills.

2. The project organisation and environment

The following sections delve into the typical project team structure, the project’s strategic fit,
and the project manager’s organisational knowledge.

2.1 The typical project team structure

There are a number of different players involved in the project team structure. This section
serves as a brief overview of these different role players and as a quick reminder of what each
role entails.

The project manager is the team member that the organisation identifies as being responsible
for the specific project in question. The project manager is responsible for putting together
the core group of project team members who implement the project tasks and deliverables
as defined by the project manager. The project manager is accountable for ensuring that the
project team delivers on the project deliverables. Consequently, the project manager is
usually identified by the project sponsor relatively early in the project life cycle, or PLC (the
PLC will be discussed in detail in Module 3). Project managers are responsible for high-level
communication and for ensuring that the project meets the constraints of the Iron Triangle,
as well as other markers of project success. Sometimes, project team leads are required on
larger projects. These leads usually provide technical and task leadership to other project
team members.

The project sponsor (sometimes referred to as the executive sponsor) is a role player with
significant interest in the outcome of the project and is therefore responsible for acquiring
spending authority resources needed for the successful completion of the project. The project
sponsor, who usually is the highest-ranking manager directly involved in the project (often
residing at a senior or executive level in the organisation), is also referred to as the project
champion in that they are the role player responsible for legitimising and promoting the

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benefits of the project, thereby securing support. The project sponsor is also the ultimate
decision maker for all questions relating to the project and provides support to the project
manager, and indirectly, to the project manager’s team. A primary role of the project sponsor
is to lead project initiation through development of the project charter (a concept to be
discussed in more detail in Module 4), as well as in high-level project planning. The project
sponsor also provides the project manager with the support they need for dealing with
problems, scope changes, and progress approval.

Note:

Depending on the company, the terms “project sponsor”, “executive sponsor,” and “project
champion” are sometimes used interchangeably, in that they mean the same thing.

Generally speaking, the project sponsor chairs the steering committee. The steering
committee includes management representatives from the organisations involved in the
implementation of the project who act collectively (or individually) as project champions for
the project within these organisations. The committee’s role includes:

• Approving project deliverables;

• Resolving issues and making policy decisions;

• Approving scope changes; and

• Providing direction and guidance to the project.

In some projects, the steering committee may also find itself involved in aspects such as:

• Providing resources;

• Assisting in securing funding; and

• Liaising with executive groups and sponsors.

Customers are also considered to be role players in the project process. Customers can be
divided into customer representatives and customer decision makers. The first group consists
of members of the customer community who are chosen to represent the needs of the
customer to the project team. They have subject-matter knowledge and expertise that aids
them in this role. The customer representatives are typically not considered as members of
the core project team. The customer representative provides information regarding the
project to the customer community and tests the product, providing feedback to the project
team from a customer perspective. Customer representatives do not make decisions
regarding project deliverables, nor are they decision makers regarding any other aspects of
the project.

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Customer decision makers are those individuals and groups who are tasked with the duty of
making project decisions on behalf of major business units that are affected by, or are
implementing, the project outcomes. Business consensus is communicated to the project
team through the customer decision makers, and these role players are often required to
attend project meetings to approve deliverables and other aspects of the project as well as to
provide expertise to the project team to assist them in efficient and quality-driven
implementation. The customer decision makers are typically not considered as members of
the core project team.

Stakeholders are all the units, groups, and individuals affected by the project. They include all
of the role players mentioned up to this point. Anyone who will be impacted in some way by
the outcomes of the project is a stakeholder. Customer correspondents, for example, who are
not directly involved in the project may nevertheless be affected by the project, in that they
will be required to explain the new resulting product or service to the customer and provide
them with the necessary support. Key stakeholders are essential role players. Without the
support of these key stakeholders, the project cannot go forward. Usually, these stakeholders
are the financial backers of the project. If their support is withdrawn, the project is likely to
fail, highlighting the importance of effective project stakeholder management (a topic for
Module 4). Lastly, vendors are external players contracted to provide additional products and
services required for successful project completion. They form part of the project team, and
are also stakeholders in the outcome of the project.

The following diagram gives an indication of how these different role players interact.

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 Figure 1: Generic project team structure, indicating the relationship between the various
stakeholders.

2.2 The project’s strategic fit

It is important to remember that projects cannot run in isolation, but rather must operate
within a broad organisational environment. This means that it is essential to find your project’s
strategic fit within the organisation. Figure 2 is a rough depiction of some of the factors
involved in determining a project’s strategic fit.

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 Figure 2: A project’s strategic fit.

A project cannot exist in isolation because the products or services produced have to fit into
the overall organisational structure. This diagram shows one of many projects (“your project”)
as part of a bigger picture. The project manager needs to fully understand that the team must
be aware of and comfortable with company policies and procedures, the overall business plan,
what products and services are already in place, and the organisation’s current “systems”.
Other projects underway or planned also need to be considered as they may overlap in some
way with your project.

In a complex project organisation, there are a number of factors at play that affect the project
manager and team members. It is therefore essential that the organisation creates an
environment that is conducive to allowing the project manager to act in terms of the project’s
requirement. This involves creating a space for the project manager and core team, such as a
conducive office environment, where they are able to work effectively. The organisation is
also responsible for providing organisational structure, processes, and methods that enhance
the performance of the project manager.

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The nature of projects often means that traditional organisational boundaries are crossed,
which can result in blurred responsibilities and unclear roles. Consequently, it is essential that
responsibilities are clearly defined from the outset of the project. Generally, the simpler the
project organisation is, the better. The project organisations should also be focused on finding
a good balance between delivering on the Iron Triangle constraints as well as quality
specifications. Additionally, an effective chain of command must be established in which
various stakeholders are able to voice their opinions while not impeding the progress of the
project. Roles should be clearly defined, and responsibilities for project outcomes should
clearly reflect the actual requirements of the position.

To avoid these problems, projects need both a project manager and a project sponsor. The
roles of these two players have already been touched on briefly. Table 1 highlights the most
important tasks of, as well as the differences between, these role players within an ideal
project structure.

Table 1: Roles of project sponsors and project managers in the project organisation.

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2.3 The project manager’s organisational knowledge
Part of an effective project manager’s skill lies in taking a holistic or systems view of a project
(a “bird’s eye view”) to develop an understanding of exactly how that particular project is
situated within the context of the larger organisation. For the project manager to develop this
strategic, holistic, or systems view of the project journey and the product to be produced, they
must have detailed knowledge of how the company’s procedures and practices work.

An example would be an understanding of the HR practices, as managing people effectively

requires knowledge of the company’s HR procedures. Understanding the organisation's leave
conditions, which is a simple factor, can make a significant difference to the project manager’s
success as a leader.

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3. Project managers’ career paths and certification
The following sections provide a basic overview of the career paths and certification options
open to individuals with advanced project management skills.

3.1 Career paths

In the past, careers were seen as clearly defined linear paths with the employing organisation
holding the responsibility for providing career development support. People considered jobs
to be “for life”. This mindset has changed significantly, with multi-directional careers, multiple
employers, and a variety of working arrangements (such as project-based work) becoming the
norm. People frequently switch careers and seek further development and education in new
fields previously outside of their present skill set, which leaves plenty of room for project
management as a dynamic and legitimate career. Although one project cannot sustain an
entire career due to the fact that projects are temporary in nature, by working as a project
manager and moving from project to project, your knowledge, skills, and abilities increase in
complexity and become more advanced, with your career becoming more focused.

Project management has emerged as an important career path in management. It now has
the same attention and support in organisations as more traditional management roles. There
is a marked increase in the need for skilled project managers. Many of these positions are
filled by professionals who develop from their original career path into this management role.

The following factors play an important role in a successful project management career:

• Organisations that have dual career paths, where an individual may or may not
transfer from a “technical” role into a management role, such as project management,
tend to result in more effective and successful project managers committed to the
profession of project management itself.

• Successful project managers accept that there are certain skills specific to project
management and do what is necessary to gain those skills through lifelong learning.

• The organisation itself needs to create an environment where the project manager
can act according to the project requirements, as discussed in Section 2.2. This could
require the establishment of a supporting organisation unit like the Project
Management Office.

• Successful project managers acknowledge that ongoing learning is an essential

component in their career trajectory and consistently seek out professional
development opportunities.

In traditional organisations, the project manager might report to a line manager and a project
sponsor. In such cases, the project manager may not have adequate authority to work

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effectively. In such instances, most of the project team, and even the project manager, are
seconded as required.

In organisations where project management is viewed as mature, there are many

opportunities for career growth in project management. Such organisations use projects to
deliver all their new products and services. Each project requires a project manager. As these
projects differ in complexity, impact, and budget, the skill sets of these project managers may
be very different. These career levels differ from organisation to organisation, but might
include entry-level, basic, experienced, advanced, senior, executive, and senior executive
project managers often under different names. There is a lack of standardisation. Some
projects will be interrelated (called a programme) and such interdependent projects will
possibly be managed by a programme manager. This is a senior middle manager with a
stronger organisational focus. At the executive level, there is a position called a portfolio
manager who is the link between the business plan and the development of a portfolio of
projects to satisfy the plan. To support all these levels, a project management office
environment is often established with strong project managers who can provide consulting
expertise.

Some companies have project management departments reporting to the same line manager,
rather than the approach where project managers are part of another department and
assigned to projects on a temporary basis by that department’s line manager. The skill and
scope required of a project manager can thus differ significantly depending on the
organisation structure and the nature of a specific project. Organisations that offer good
career opportunities to project managers provide clear guidelines for advancement through
these levels, vertically or horizontally. Each level requires a different skill set, highlighting the
need for continual development and training.

Important note:

Even in companies that explicitly acknowledge project management as a valid career path and
that create an organisation where career advancement is possible, career paths for project
managers will still differ significantly from organisation to organisation.

3.2 Professional certification and qualifications

The move towards projectised organisations across the world has led to significant growth in
membership of professional associations and institutions related to the profession. For
example, the Project Management Institute (PMI)® has more than 500,000 members, with a
similar number of individuals accredited as Project Management Professionals (PMP)®. PMI®
offers several globally-recognised and acclaimed project management accreditations. These
include:

• Certified Associate in Project Management (CAPM)®: According to the PMI, this

certification “recognises your knowledge of the profession’s preeminent standard”
and that “you will stand out to employers and be poised to move ahead”.

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 • Project Management Professional (PMP)®: According to the PMI, this certification is
“the most important industry-recognised certification for project managers” and “the
PMP® is truly global. As a PMP, you can work in virtually any industry, with any
methodology, and in any location.”

• Programme Management Professional (PgMP)®: According to the PMI, this

certification is “designed for those who manage multiple, related projects in a
coordinated way, achieving the benefits that could not occur if the projects were
handled separately”.

• Portfolio Management Professional (PfMP)®: According to the PMI, this certification

“signifies your advanced competency in the coordinated management of one or more
portfolios to achieve strategic objectives”.

• PMI Agile Certified Practitioner (PMI-ACP)®: According to the PMI, this certification
“formally recognises your knowledge of agile principles and practices and your skill
with agile techniques”; “is the fastest growing certification”; and “spans many
approaches to agile such as Scrum, Kanban, Lean, extreme programming (XP), and
test-driven development (TDD)”.

• PMI Risk Management Professional (PMI-RMP)®: According to the PMI, this

certification “highlights your ability to identify and assess project risks, mitigate
threats, and capitalise on opportunities. In this capacity, you enhance and protect the
needs of your organisation.”

• PMI Scheduling Professional (PMI-SP)®: According to the PMI, this certification “will
recognise your knowledge and skill to drive the improved management of project
schedules”.

• PMI Professional in Business Analysis (PMI-PBA)®: According to the PMI, this

certification is aimed at individuals who “work with stakeholders in defining
requirements, shaping project outputs, and driving intended business outcomes”.

Before pursuing any of the abovementioned accreditations, it is advisable to become a

member of the PMI first. Please read the following links for more information about
membership:

• Membership types

• Membership benefits

If you are interested in pursuing a PRINCE2 certification, visit the Axelos Global Best Practice
website.

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Example:

In the lecture video, your Head Tutor, Patrick Browning, and guest lecturer, Prof Derek Smith,
discuss certification in the field of project management and contextualise this course in the
broader picture.

Video 1: Project management certification (Part 1)

Video 2: Project management certification (Part 2)

4. Conclusion
Although a clear career path is not always obvious to aspiring project managers, at the same
time, the importance of this evolving management profession is very clear in the popular
press. Gaining the entry-level skill set and then moving towards mastery is continually stressed
in career planning.

For organisations to be successful, the role of the project manager is an important one in any
industry. That importance is growing, along with the acceptance of project management as a
unique discipline.

5. Bibliography
Clements, J. & Gido, J. 2012, Effective Project Management. Canada: Cengage Learning.

Crawford, L., French, E. & Lloyd-Walker, B. 2013. From outpost to outback: Project career
paths in Australia. International Journal of Project Management, 31(8): 1175–1187.

Crowe, A. 2006. Alpha project managers: What the top 2% know that everyone else does
not? Velociteach: Kennesaw, GA.

Hölzle, K. 2010. Designing and implementing a career path for project managers.
International Journal of Project Management, 28(8): 779–786.

Lloyd-Walker, B. & Walker, D. 2011. Authentic leadership for 21st century project delivery.
International Journal of Project Management, 29(40): 383–395.

Müller, M. & Turner, R. 2010. Leadership competency profiles of successful project

managers. International Journal of Project Management, 28(5): 437–448.

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Project Management Institute. 2017. A Guide to the Project Management Body of
Knowledge (PMBOK® Guide). 6th ed. Pennsylvania: Project Management Institute,
Inc.

Project Management Institute (PMI)®. 2007. Project Manager Competency Development

Framework (PMCDF) Exposure Draft (2nd ed.). USA: Project Management Institute,
Inc.

Tyssen, A.K., Wald, A. & Spieth, P. 2013. The challenge of transactional and transformational
leadership in projects. International Journal of Project Management, 32(3): 365-375.

PMI, PMBOK, PMP, CAPM, PgMp, PfMP, PMI-ACP, PMI-RMP, and PMI-SP are
registered marks of the Project Management Institute, Inc.

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