1 © The Delos Partnership 2004

Project ManagementProject Management

Organisation and Structure

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Project Management Framework &Project Management Framework &Organisation – Key ConceptsOrganisation – Key Concepts

All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas

4. ProjectIntegration

Management

4. ProjectIntegration

Management

5. ProjectScope

Management

5. ProjectScope

Management

6. ProjectTime

Management

6. ProjectTime

Management

7. ProjectCost

Management

7. ProjectCost

Management

8. ProjectQuality

Management

8. ProjectQuality

Management

9. ProjectHuman Resource

Management

9. ProjectHuman Resource

Management

10. ProjectCommunications

Management

10. ProjectCommunications

Management

11. ProjectRisk

Management

11. ProjectRisk

Management

12. ProjectProcurementManagement

12. ProjectProcurementManagement

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Role of the SponsorRole of the Sponsor

The Sponsor is the customer. The one who will pay for the product the project is going to deliver

• Must be visible and lead from the Top• Own the Business Case

– Belief and energy to “Stay the course”– Balance Priorities with Business-As-Usual– Budget Holder

• Commitment to new ways of working• Manage and Influence Stakeholders• Ensure Resources are committed

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Planning &Control

Programme Office

Business Review

SystemInterface

Leadership

ChangeManagement

TeamBuilding

BenefitsManagement

Financial Well-Being

Role of the ProRole of the Project ject ManaManagerger

5 © The Delos Partnership 200419/04/23

Functional OrganiFunctional Organissationation

FunctionalManager

ChiefExec.

FunctionalManager

FunctionalManager

• Part-time programme manager

• Direct reporting of team members to functional mgrs

• Project manager has little or no authority

• Virtually none of the team assigned full-time

ProProgrammegramme coordination coordination

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Functional OrganisationsFunctional Organisations

•Easier management of specialists•Team members report to only one supervisor•Similar resources are centralised, companies are grouped by specialisation

•People place more emphasis on their functional speciality to the detriment of project•No career path in project management•Project manager has no authority

Advantages Disadvantages

7 © The Delos Partnership 200419/04/23

Matrix OrganizationMatrix Organization

ProjectManager

Project

Manager

Prog.Manager

ProjectManager

ProjectManager

FunctionManager

FunctionManager

FunctionManager

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL

TLTL

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Matrix OrganisationsMatrix Organisations

•Not cost effective because of extra administrative personnel•More than one boss for project teams•More complex to monitor and control•Tougher problems with resource allocation•Need extensive policies and procedures•Functional managers may have different priorities than project managers•Higher potential for conflict and duplication of effort

Advantages Disadvantages•Highly visible project objectives•Improved project manage control over resources•More support from functional organisations•Better coordination•Better horizontal and vertical dissemination of information than functional•Team members maintain a “home”

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ProProjectised jectised OrganiOrganissationation

• Full-time project manager

• Direct reporting of team members to PM

• Project manager has high or total authority

• 85-100% of team assigned full-time

Prog.Manager

Prog.Manager

Project coordinationProject coordination

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Projectised OrganisationsProjectised Organisations

No “home” when project complete•Lack of professionalism in disciplines•Duplication of facilities and job functions•Less efficient use of resources effort

Advantages Disadvantages

•Efficient project organisation•Loyalty to project•More effective communications that functional

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Organisational Structure Organisational Structure Influences on ProjectsInfluences on Projects

Project Manager’s Authority

% of Performing Organisation’s Personnel

Assigned Full Time to Project Work

Project Manager’s Role

Common Title for Project Manager’s Role

Project Management Administrative Staff

OrganisationType

Part-time

Project Coordinator/

Project Leader

Part-time

Virtually None

Little or None

Functional

Part-time Part-time Full-time Full-time

Part-time Full-time Full-time Full-time

Project Coordinator/

Project Leader

Project Manager/

Project Officer

Project / Program Manager

Project / Program Manager

0-25% 15-60% 50-95% 85-100%

LimitedLow to

ModerateModerate to

HighHigh to Almost

Total

ProjectisedMatrix

Weak MatrixBalanced

MatrixStrong Matrix

ProjectCharacteristics

Source: PMI® Project Management Body of Knowledge

12 © The Delos Partnership 200419/04/23

ProProject ject OrganiOrganissationation

No one “best” structure

Major considerations are:– Control– Responsibility & Accountability– Integration & Decision Making– Communication & Visibility– Priority & Trade-off– Stakeholder Management

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There are Two Life CyclesThere are Two Life Cycles

Project Management Life Cycle– This describes what you need to do to manage the

project (Initiating, Planning, Executing, Controlling, Closing)

– You are concerned about this life cycle

Product Life Cycle– The deliverable of a project that will be used by

the customer– The project team is not responsible for the product

life cycle

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The Triple ConstraintThe Triple Constraint

•The three are so intertwined that a change in one will in most cases lead to a change in at least one of the others

•Management sets the priority of each constraint

Time

CostQuality

Scope

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Project Integration Project Integration ManagementManagementDuring execution…

• The Project Team focus on completing tasks

• The sponsor and senior management protect the project from changes and loss of resources

• The project manager integrates all the pieces of the projects

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Project Integration Project Integration ManagementManagementConstraints

– Factors that limit the teams options– Financial, time, human, technical, other

Historical Information– Can include tasks, WBS, Reports, Estimates, Plans, lessons

learned, benchmarks, correspondence

Lessons Learned– Technical aspects– Project Management Life Cycle

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Project Integration Project Integration ManagementManagementProject Management Methodology

– Organisations set of standards, templates for managing projects

Project Management Information System– The system set up in advance where the project manager

goes to find all project related information, to know the status of the project etc

Baseline– The original plan plus any approved changes. Used to

compare actuals with original to monitor variances to budget

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Project Integration Project Integration ManagementManagementKick Off Meeting

– A communications and coordination meeting of all parties to ensure all are familiar with the details of the project and who will be responsible for what

– Includes team, sponsor, customers, sellers, senior management, functional managers)

Work Authorisation System– A formal procedure for sanctioning work

Change Requests– Formal changes to the project after it has been approved (during

execution) by integrated change control– The project plan is a formal document that needs to be controlled

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Project Integration Project Integration ManagementManagementChange Control System

– A collection of formal documented procedures and supporting organisation detailing how changes will be managed, approved, and implemented

Corrective Action– The project manager proactively looks for

deviations rather than just waiting for them to be brought to their attention

– Corrective action may involve cause and effect analysis, changes to schedule, costs, quality and risks

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Project Integration Project Integration ManagementManagement• Scope change control

– Measure performance– Replanning– Making changes and adjusting the baseline– Taking corrective action– Documenting lessons learned

• Schedule Control• Cost Control• Quality Control• Performance Measurement• Risk Monitoring

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Project Integration Project Integration ManagementManagementManaging Changes

– Influencing the factors that affect change– Ensuring that change is beneficial– Determining that a change has occurred– Looking for alternatives to change– Minimising the negative impact of change– Notifying stakeholders affected by change– Managing changes as they occur

Configuration Management– Managing the scope of the project so that the project

delivers the product required by the customer

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Thank you…..Thank you…..

Thank you for participating in this course; we hope you go away with more than you came with, and ready to manage

Projects professionally.