Project Organization Approaches

I. Design of Project Organizations

! Project Manager in Staff and Line Roles ! Project Team Organizations ! BPR Project Team Placement ! Program Office Organizations

II. Designing the Object Organization ! Departmentation Approaches ! Departmentation Patterns

- Parkinson’s Laws ! Types of Organizational Design Approaches

Project Manager Types

E arly S tages: Feasib ility Later S tages: Im p lem enta tion

S TA F F(consu ltan t)

L IN E(M anager)

Project Manager

M ultifunc tionTeam

L ib ra rian

M u ltid isc ip lineTeam

- A na lys is- P lann ing- P resen ta tion

- D eve lopm en t- Tes ting- C onve rs ion

- D ocum en ta tion

"Leade rsh ip is na tu re 's w ay o f rem oving m orons from the p roduc tive flow "Dogbert

Organization of a Project Team

P ro jec ts O fficeo r

D eve lopm en t M gr

TeamLeader

- P ro jec t M anager- C h ie f P rog ram m er- The P ilo t

S en io rP ro fess iona l

S en io rP ro fess iona l

Jun io rP ro fess iona l

- Tes ting M anager- S en io r P rog ram m er- The F ligh t E ng inee r

- A ss 't P ro jec t M gr- S en io r P rog ram m er- The C o-P ilo t

- D a ta M anager- P rog ram m er- The C rew C h ie f

L ib ra rian- D ocum en ta tion- go fo r

C E O

Organization Approachs for Business Process Reengineering

S teeringC om m ittee

C IOU S E RE XE C

D eve lopm en tO pera tions

P ro jec tTeam

P ro jec tTeam

P ro jec tTeam

BusinessFunction

BusinessFunction

BusinessFunction

BusinessFunction

P ro jec tTeam

ProjectsOffice

ProjectMgr

The Large Program Office

Objectives ! Projects are consistent with Business Strategies and ROI ! Proven Project Methodology is followed ! Project Activities are Efficiently Coordinated ! Business Priorities set Project Priorities ! Business and Technology Risk is identified and Managed ! Project Stakeholders are informed of Status and Progress

Activities Monitored ! Resource Allocation ! Risk Assessment ! Conflict Resolution ! Scope Changes ! Project Status Coordination ! Business Benefits Assurance ! Management Reporting

Typical Large Program Office

P rog ramO ffice

D irec to r

P rog ramA dm in is tra to rs

Techno logyA dviso rs

O rgan iza tiona lC hangeA dviso r

K now ledgeM anagem en t

ProjectData

P rog ramE xecu tive

E xecu tiveC om m ittee

Program Office

P rog ramM anagers

ProjectManager

ProjectManager

ProjectManager

ProjectManager

S tee ringC om m ittees

P rogram OfficeD irec tor

P rogramA dm in is tra tors

Technology A dvisors

OrganizationalChange A dvisor

K now ledgeM anagem ent

P ro jec tData

P rogram E xecutive

E xecutive Com m ittee

P rogram Office

P rogram M anagers

P roject M anager P roject M anager P roject M anager P roject M anager

S teering Com m ittees

Executive Com m ittee - A u tho rizes p rog ram s - A u tho rizes p ro jec ts - P e rfo rm s fo rm a l rev iew s - S e ts p rio rities

Program Office Director - C oo rd ina tes a ll p rog ram s & p ro jec ts - A pp roves de ta iled p lans - M on ito rs p rog ress - P roduces execu tive repo rts

Technology Advisors(or Project Managem ent Advisors)

- O ve ra ll concep tua l des igns - O ve ra ll in fras truc tu re des ign - Techn ica l qua lity m on ito ring

Organizational Change Advisor -A ssess enab le rs & ba rrie rs - C rea te C hange A gen ts - P lan & m anage trans ition p rog ram s

P rogram OfficeD irector

P rogramA dm in is trators

Technology A dvisors

OrganizationalChange A dvisor

K now ledgeM anagem ent

P rojec tData

P rogram E xecutive

E xecutive Com m ittee

P rogram Office

P rogram M anagers

P roject M anager P roject M anager P roject M anager P roject M anager

S teering Com m ittees

Program Executive - R ep resen ta tive o f E xecu tive C om m ittee - C oord ina tes usage o f non -p ro jec t pa rtic ipan ts - D ay-to -D ay bus iness o rien ted advisem en t

Steering Com m ittees - U se rs & IT P rog ram d irec tion - In te r-P ro jec t resou rce a lloca tion - P ro jec t scope ad jus tm en t - E sca la tion o f c ritica l issues

Program Managers - O ve ra ll p rog ram techn ica l coo rd ina tion - D ay-to -day use r re la tions - D ay-to -day coo rd ina tion o f p ro jec ts - R ou tine p rog ram m on ito ring & repo rting

P rogram OfficeD irec tor

P rogramA dm in is tra tors

Technology A dvisors

OrganizationalChange A dvisor

K now ledgeM anagem ent

P ro jec tData

P rogram E xecutive

E xecutive Com m ittee

P rogram Office

P rogram M anagers

P roject M anager P roject M anager P roject M anager P roject M anager

S teering Com m ittees

Program Adm inistrators - T rack ing & repo rting e ffo rt and cos ts - M on ito ring resou rce usage vs . budge t - R ou tine & ad -hoc s takeho lde r repo rting

Know ledge Managem ent - O pera tes P ro jec t M anagem ent Too l(s ) - M on ito rs inpu t o f p lans and pe rfo rm ance - A ssu res secu rity and cons is tency o f da ta

Project Manager - Leads p ro jec t team - K eeps P rog ram M anager in fo rm ed - U ltim a te respons ib ility fo r p ro jec t success

Summary of Program Office Responsibilities

! Issue Management

! Risk Management

! Scope Management

! Quality Management

! Project Status Coordination

! Program Accounting

! Program Communication

! Resource Management

! Organizational Change Mgmt

! Project Support & Control

Prog Off Prog Mngr. Proj Mngr.

Organization Design Responsibilities

I. D esign the P ro jectO rgan iza tion

II. D esign the O bjectO rgan iza tion

P ro jec tM anager

M u ltid isc ip lineTeam

"There is no lim it to the am oun t o f good tha t peop le can accom p lish ,if they don 't ca re w ho ge ts the c red it"

P ro jec t S takeho lde rsD es ign N ew /R evised

Tasks

D es ign N ew /R evisedJobs

D es ign N ew /R evisedO rgan iza tion

D es ignTra in ingP rog ram

O utp lacem en tP rog ram

Parkinson’s LawsProf. C. Northcote Parkinson, Raffles Professor of History

University of Singapore in MalaysiaEconomist, November 19, 1955.

Theorems: ! An Official wants to multiply subordinates, not rivals ! Officials make work for each other

LAW IWork Expands to Fill the Time Available for its

Completion ! Shopping of Men vs. Women ! Cooking from Scratch vs. Prepared Foods

LAW IIThe Multiplication of Subordinates

! ‘A’ feels Overworked, he can:- ask for a colleague to share the work, or- demand the assistance of TWOsubordinates, ‘B’ and ‘C’.

LAW IIIThe Multiplication of Work

! All work will now involve at least ‘A’ and ‘B’ or‘A’ and ‘C’, often both

! Subordinates create memos, meetings, andcommunications with each other

The Mathematics

k = number of administrative staff seeking promotionp = difference between Age of appointment and retirementm = number of man-hours devoted to internal

communicationn = number of effective units being administered

Some Results

Admiralty Colonial Office

Growth/Year 5.6% 5.9%

ΔS 2K m Pn

Admiralty Statistics

1914 1928

PercentIncrease orDecrease

Capital Ships in Commission 62 20 -67.74%Officers & Men in Navy 146,000 100,000 -51.50%Dockyard Workers 57,000 62,439 + 9.54%Dockyard Officials & Clerks 3,249 4,558 +40.28%Admiralty Officials 2,000 3,569 +78.45%

Colonial Office Officials During Phase-Out of Empire

1935 1979 1943 1947 1954Staff 372 450 817 1,139 1,661Growth/Year 5.24% War 6.55%

Departmentation Approaches

E xecu tive

E ntrepreneur

Functiona l

D ecentra lized

E xecu tive

M P F

E xecu tive

E W S

R eg iona l

E xecu tive

P 1 P 2 P 3

P roduc tE

Executive Officeand Staff

Departmentation Patterns

Functional - Marketing - Finance - Operations - Developm ent

Product - Industry - Custom er - Technology

Area - Continent - Country - Region

Territory Function Skill

Major Types of Organizational Projects

! Portfolio Restructuring- Are Business/Product Groupings Still Logical?- Are Regional/Area Groupings Still Logical?

Product, Technology, Logistic Life Cycles ! Operational Transformation

- Are Dramatic Customer Service/Quality etc. Improvements Possible?

- Are Product/ Service Operational Methods Still Optimum?

Business Process Reengineering Tools ! Strategic Transformation

- Are Corporate Culture/Reward Systems Still Appropriate?

Teaming, Thinking, Learning Organization

! Portfolio Restructuring- Are Business/Product Groupings Still Logical?- Are Regional/Area Groupings Still Logical?

Product, Technology, Logistic Life Cycles ! Operational Transformation

- Are Dramatic Customer Service/Quality etc. Improvements Possible?

- Are Product/ Service Operational Methods Still Optimum?

Business Process Reengineering Tools ! Strategic Transformation

- Are Corporate Culture/Reward Systems Still Appropriate?

Teaming, Thinking, Learning Organization