ADVANCED PROJECT
MANAGEMENT
NQF 6
2020
PRESENTERS:
Prof Stéphan van der Merwe
Prof Christo Bisschoff
MODULE 2
ORGANISATIONAL
CAPABILITY
Chapter 3
PRESENTATION OVERVIEW
Day 1:
Module 1: Introduction to Project Management
Module 2: Organisational Capability
Module 3: Stakeholder Analysis and Communication
PRESENTATION OVERVIEW
Day 2:
Module 4: Project Life Cycle and Scope
Management
Module 5: Project Scheduling (Time Management)
Module 6: Human Resource Management
PRESENTATION OVERVIEW
Day 3:
Module 7: Cost and Procurement Management
Module 8: Risk Management
Application of theory
(Group project assignment)
PRESENTATION OVERVIEW
Day 4:
Module 9: Quality Management
Module 10: Project Progress, Results and Closure
Application of theory
(Group project assignment and presentations)
AT THE END OF THIS MODULE…
• Compare and contrast the advantage and
disadvantages of the functional, project and
matrix methods of organization and describe how
each operates.
• Describe the duties, motivations, and challenges
of each of the executive, managerial, and team
roles in projects.
• Delineate the attributes one should consider in
selecting a person for each of the executive,
managerial, and team roles in projects.
• Given a description of types of projects an
organization has, determine and justify the type
of organization that is appropriate.
AT THE END OF THIS MODULE…
• Describe different project life cycle models and
tell when each is appropriate.
• 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.
• When planning a real project with your team,
relate the culture characteristics of your
sponsoring organization and how you factor them
into your project planning.
TYPES OF ORGANIZATIONAL
STRUCTURES
• Functional organization
• Project organization
• Matrix organization
• Project Management Office organization
FUNCTIONAL ORGANIZATION
• Hierarchical.
• 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
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.
DISADVANTAGES OF
FUNCTIONAL ORGANIZATION
• Slow communications across multiple functions
and channels.
• Technical difficulty in incorporating input from
other disciplines.
PROJECTIZED ORGANIZATIONS
• The project manager assigns projects, applies
resources, and directs personnel assigned to the
project.
• There are no formal departments.
• The reporting manager is a project manager, not
a functional manager.
PROJECTIZED ORGANIZATION
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
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.
MATRIX ORGANIZATION
• The project manager and functional manager
share responsibility.
• 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
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.
PROGRESSION OF
ORGANIZATIONAL FORM
DISADVANTAGES OF MATRIX
ORGANIZATION
• Each employee has two “bosses”.
• More sources of conflict.
• More meetings.
• More challenges to control.
MATRICS STRUCTURE
CEO
Func.
Managers
Sales Design Production
Team Managers
Product
team A
Product
team B
Product Team
Product
team C
= two boss employee
THE PROJECT MANAGEMENT
OFFICE (PMO)
• The Manager of Project Managers may head a
PMO.
• Reports to the President.
ORGANIZATIONAL CULTURE
• Formal and informal practices shared among
members of the organization.
• Values – personal standards that influence
judgments, interaction with others, and
organizational goals.
CULTURE OF THE PARENT
ORGANIZATION
• 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.
SUCCESSFUL ORGANIZATION
CULTURE CHARACTERISTICS
• Support for cross-functional teams
• Stakeholder involvement
• Integrity
• Innovation
• Open communication
• Continuous improvement
• Respect for individuals
• PM competencies
• A common PM language
CULTURE OF THE PROJECT
• Act ethically in the best interests of the project,
the project team, other project stakeholders.
• Project manager behaviors:
– Responsibility
– Respect
– Fairness
– Honesty
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.
GENERAL PROJECT LIFE CYCLE
MODEL
DEFINE-MEASURE-ANALYZE-
IMPROVE-CONTROL (DMAIC) MODEL
RESEARCH AND DEVELOPMENT
(R&D) PROJECT LIFE CYCLE MODEL
CONSTRUCTION PROJECT LIFE
CYCLE
INFORMATION SYSTEMS (IS)
PROJECT LIFE CYCLE
PROJECT ROLES
PROJECT EXECUTIVE ROLES
• Steering Team
• Sponsor
• Chief Projects Officer
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.
• Executive team, management team, leadership
team, operating team.
STEERING TEAM ACTIVITIES
• Overall priority setting.
• Project selection and prioritization.
• Sponsor selection.
• General guidance – at set times or at project
milestones.
• Encouragement.
Milestone
Milestone ––“a
“asignificant
significant point
point or
or event
event in
inthe
theproject”
project”
PMBOK®
PMBOK®Guide
Guide
SPONSOR
• Has a major stake in the project outcome.
• Perform offensive strategies to position the
project well.
• Perform defensive strategies to head off
potential difficulties.
• Often a member of the steering team.
Sponsor
Sponsor ––“the
“theperson
personoror group
groupthatthat provides
providesfinancial
financial
resources,
resources, in
incash
cashor
orin
inkind,
kind, for
for the
theproject”
project”
PMBOK®
PMBOK®Guide
Guide
OFFENSIVE SPONSOR STRATEGIES
FOR GUIDING PROJECTS
• Selecting, prioritizing and resourcing project.
• Understanding project success criteria.
• Defining roles.
• Defining the business case.
• Writing scope overview.
• Insisting on milestone schedule development.
• Insisting on preliminary budget development.
• Establishing project culture.
DEFENSIVE SPONSOR STRATEGIES
FOR GUIDING PROJECTS
• Understanding reasons for project failure.
• Determining and/or facilitating tradeoff decisions.
• Establishing assessment criteria.
• Insisting on risk identification and analysis.
• Insisting on meeting management.
• Insisting a communications plan is developed.
• Insisting lessons learned are developed and used.
• Personally committing and insisting on others
commitment.
CHIEF PROJECT OFFICER / PROJECT
MANAGEMENT OFFICE
• The person who “owns” the organizations project
management system.
• Role varies with organization size.
• Ensures steering team responsibilities are met.
• Ensures individual team members responsibilities
are met.
PMO MONITORED
STEERING TEAM RESPONSIBILITIES
• 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!
PMO MONITORED
TEAM MEMBER RESPONSIBILITIES
• Receive necessary training.
• Capture lessons learned.
• Use lessons learned on new projects.
• User templates and standards where appropriate.
PROJECT MANAGEMENT ROLES
• Functional Manager
• Project Manager
• Facilitator
• Customer
FUNCTIONAL MANAGER
• Often 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.
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.
DESIRED PROJECT MANAGER
BEHAVIORS / SKILLS
• 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.
PROJECT MANAGER
COMMUNICATION CHANNELS
• Spokes represent communication channels
through the project manager hub.
PROJECT MANAGER JUDGMENT
CALLS
• When to…
– Change or accept expectations.
– Lead or follow.
– Act or analyze.
– Promote order or promote innovation.
– Repeat or change.
– Focus on big picture or details.
– Take over or let team perform.
– Demonstrate optimism or pessimism.
PROJECT MANAGER JUDGMENT
CALLS
• When to…
– Lead or administer.
– Focus on technical or behavioral.
– Concentrate on short term or long term.
– Focus communications inside or outside of the
project.
– Advocate for the project or accept termination.
– Focus on organizational, project, personal
career, or team member goals.
– Enhance, maintain, or accept changes in
scope, quality, cost, and schedule.
FACILITATOR
• An outside party, often a disinterested sponsor or
project manager.
• May be the chief projects officer.
• May be a consultant.
CUSTOMER
PROJECT CONTROL SYSTEMS
• Communications plan – what the customer needs
to know, when, and in what format.
• Change control system – approve potential
changes, document their impact, ensure they are
carried out.
• Risk management system – brainstorm possible
risks, consider likelihood of risk, impact of risk,
and contingency plans.
PROJECT TEAM ROLES
• Core team members.
• Subject matter experts.
CORE TEAM MEMBERS
• 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.
SUBJECT MATTER EXPERTS
• Meet specific, temporary project needs.
• Chosen for their specific expertise.
• Extended team members.
CHAPTER 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.
GROUP ACTIVITY
Describe the organisation of your
project. Draw an organogram.
Thank you