2. Organization PM ASP1001H v2009.1

2. Organization PM ASP1001H v2009.1 - APS1001H Module 2:...

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Unformatted text preview: APS1001H Module 2: Organization Module 2 – Organization v2009.1 Project HR Management Develop human resource plan Planning Initiating Monitoring & Controlling Controlling Manage project team Acquire project team Develop project team Executing Closing 2 v2009.1 © Procept Associates Ltd. 1 APS1001H Module 2: Organization Organizational Structure • Functional • Projectized • Weak matrix • Strong matrix PMBOK Guide 2.3.3 3 Functional Organization General Manager Sales Manager Chief Engineer Manufacturing Manager Finance & Administration Sales Rep Project Engineer Shift Supervisor Controller Sales Rep Project Engineer Shift Supervisor Cost Accountant Sales Rep Project Engineer Shift Supervisor HR Officer Sales Rep Project Engineer Shift Supervisor Financial Accountant PMBOK Guide 2.3.3 4 2 v2009.1 © Procept Associates Ltd. APS1001H Module 2: Organization Functional Organization • Also known as hierarchical, bureaucratic • Pros: • Clear single authority • Fosters technical competence • Cons: • Inflexible • Poor horizontal coordination / interdisciplinary integration • No single point of accountability 5 Projectized Organization General Manager Project Manager Sales Manager Chief Engineer Manufacturing Manager Finance & Administration PM Support Sales Rep Sales Rep Project Engineer Shift Supervisor Financial Accountant Sub-project Manager Project Engineer Sales Rep Project Engineer Shift Supervisor Cost Accountant Shift Shift Supervisor Sales Rep Project Project Engineer Shift Supervisor HR Officer Accountant PMBOK Guide 2.3.3 6 v2009.1 © Procept Associates Ltd. 3 APS1001H Module 2: Organization Projectized Organization • Project staff separated from other departments • Clear authority for PM • Pros: • Task-oriented • Team-oriented • Buffered from external conflicts 7 Projectized Organization • Cons are related to: • Mobilization and demobilization of staff • Coping with fluctuations in labour requirements • Technical expertise 8 4 v2009.1 © Procept Associates Ltd. APS1001H Module 2: Organization Matrix Organization functional authority GENERAL MANAGER project reporting SALES MANAGER CHIEF ENGINEER MANUFACT’G MANAGER FINANCE & ADMINISTRATION Sales Rep Project Engineer Shift Supervisor Accountant Sales Rep Project Engineer Shift Supervisor Accountant PROJECT MANAGER Sales Rep Project Engineer Shift Supervisor Accountant PROJECT MANAGER Sales Rep Project Engineer Line Manager Accountant 9 Matrix Organization • Hybrid of functional and project • PM controls “what and when” • Functional managers control “how and who” • Controversial 10 v2009.1 © Procept Associates Ltd. 5 APS1001H Module 2: Organization Matrix Organization • Pros: • Balance of the other two • Good horizontal communication • Resource-efficient • Project-oriented • Staff “see the larger picture” • Single spokesperson 11 Matrix Organization • Cons: • Ambiguous authority & reporting • Complex • Some duplication of effort • Causes conflict • Resistance to changing to a matrix structure 12 6 v2009.1 © Procept Associates Ltd. APS1001H Module 2: Organization Matrix Organization • Appropriate when 2 of the following: • Outside pressure for dual focus • Pressure for interdisciplinary communication • Pressure for shared resources 13 Example of a Strong Matrix GENERAL MANAGER Business Unit Manager Business Unit Manager Project Mgr Business Unit Manager Project Mgr Business Unit Manager Project Mgr Resource Pool Manager 14 v2009.1 © Procept Associates Ltd. 7 APS1001H Module 2: Organization Organizational Continuum WEAK MATRIX RELATIVE AUTHORITY FUNCT'L BALANCED MATRIX MATRIX STRONG MATRIX MATRIX PROJECTIZED PROJECT FUNCTION NO COORD'R COORD'R FULL-TIME P. MGR. PROJECT OFFICE SEPARATE TEAM PMBOK Guide 2.3.3, Fig. 2-6 15 Comparative Performance Projectized Criteria Matrix Functional Achievement of due dates Technical qualities Resource utilization Cost control Job satisfaction: Specialists Non-specialists Client feedback and control Conflicts from Vasconcellos & Hemsley, PMI Proceedings 1981, as adapted by Dinsmore 16 8 v2009.1 © Procept Associates Ltd. APS1001H Module 2: Organization Exercise • Advice for a (weak matrix) project coordinator? • Advice for a task force (pure projectized) project manager? • Advice for a (balanced) matrix project manager? 18 Discussion: Lessons for An Accidental Profession 1. Understand the context of PM 2. Recognize project team conflict as progress 3. Understand who the stakeholders are and what they want 4. Accept the political nature of organizations and use it to your advantage use it to your advantage 5. Lead from the front: the view is better 6. Understand what “success” means 19 v2009.1 © Procept Associates Ltd. 9 APS1001H Module 2: Organization Discussion: Lessons for An Accidental Profession 7. Build and maintain a cohesive team 8. Enthusiasm and despair are both infectious 9. One look forward is worth two looks back 10. Remember what you are trying to do 11. Use time carefully or it will use you 12. Above all, plan, plan, plan Meredith, pp 26ff 20 Not An “Accidental Profession” • See attached description of BMO’s PM maturity initiative 21 10 v2009.1 © Procept Associates Ltd. APS1001H Module 2: Organization CASE STUDY: MATURING AN ORGANIZATION’S PROJECT MANAGEMENT The following was a message sent to a project management discussion group in early 2002, describing the activities of the Bank of Montreal in developing their PM maturity. (The author is unknown.) Established a Project Management Council, made up of Project Manager representatives from each of the lines of business. This Council early on established a "wish list" of things it would take to make our Project Managers more successful, and then sponsored initiatives to get there. The Council meets once a month for 1/2 day, and members also commit to another 1/2 day a month on one of our "Objectives Teams": Communication, Professional Development, Tools & Processes. All members are volunteers, i.e. they wind up working (unpaid) overtime on their real jobs, because of the time it takes for this. Established a formal training program for Project Managers, with the aim that Project Managers would become PMPs. The program consists of three levels: an introductory level, a level for active Project Managers, and a third one for people preparing for the PMP exam. The introductory level is directed at team members and for people who just want to know more about Project Management. Active Project Managers take courses over several months - the course has been developed in conjunction with universities, and the current offering awards a certificate in project management. Established a fully-funded group to develop tools and processes for Project Managers. This is when things got serious - money means commitment. Started holding an annual Project Management Symposium, where Project Managers could network, learn new things, and offer ideas of their own. We're planning our 4th one now. Reviewed the Best Practices within and outside the company, and established a Project Management Process, mandatory for all projects. This not only ensures that everyone is doing the same things, but helps new Project Managers get up to speed quickly. There are templates and samples stored centrally, as well as procedures. The process follows the PMBOK Guide® (and is organized in the same way), but is not documentation-heavy. There are only a few key documents: Letter of Engagement, Project Charter, Risk Assessment, Risk Management Plan, Project Status Reports. Achieved ISO 9001 certification for the Project Management Process. Once you have a repeatable process, there is a modest investment in training internal auditors and hiring outside auditors. It is simultaneously a source of pride for the Project Managers, and a reinforcement of the mandatory nature of the process. This year, we are working on the people side of the equation - documenting the skills of the Project Managers and establishing development plans and a career path, as well as piloting a Mentoring program, to provide a source of help and advice. We haven't yet decided exactly what our PMOs will look like, so we are experimenting with several models in different areas. The major complaint from the Project Managers seems to be "too much paperwork", so all of them have some aspect of relieving that burden. v2009.1 © Procept Associates Ltd. 11 APS1001H Module 2: Organization A Word About Portfolios and Programs Project Portfolio Management • Portfolio: “A collection of projects or programs and other work that are grouped together to facilitate th th effective management of that work to meet strategic business objectives” • Project Portfolio Management: “The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, id managing and controlling projects, programs, and other related work, to achieve specific strategic business objectives” The Standard for Portfolio Management glossary 23 12 v2009.1 © Procept Associates Ltd. APS1001H Module 2: Organization Program Management • Program: “A group of related projects managed in a coordinated way to obtain benefits and control di not available from managing them individually. Programs may include elements of related work outside of the scope of the discrete projects. • Program Management: “The centralized coordinated management of a program to achieve di the program’s strategic objectives and benefits” The Standard for Portfolio Management glossary 24 Portfolio, Programs, Projects… PORTFOLIO PROJECTS PORTFOLIOS PROGRAMS 25 v2009.1 © Procept Associates Ltd. 13 APS1001H Module 2: Organization Project Portfolio Management • Doing projects right is project management • Doing the right projects is project portfolio management 26 The Organizational Context The Standard for Portfolio Management, Fig 1.2, contributed by Claude Emond, R Thibaud, H Bouchard 27 14 v2009.1 © Procept Associates Ltd. APS1001H Module 2: Organization Portfolio Management Processes • Identify • Categorize • Evaluate and prioritization • Balance the portfolio • Authorize projects 28 Portfolio Management – Fundamental to New Product Success, working paper 12, Cooper, Edgett, & Kleinschmidt, Product Development Institute, 2001 Portfolio Management in New Product Development: Bubble Diagram 29 v2009.1 © Procept Associates Ltd. 15 APS1001H Module 2: Organization Appendix Comparative Performance Projectized Matrix Functional Achievement of due dates V. good Poor Poor Technical qualities Poor Good V. good Resource utilization Poor Good V. good Cost control V. good Good Poor Specialists Poor Good V. good Non-specialists V. good Good Poor Client feedback and control V. good Good Poor Conflicts Low High Low Criteria Job satisfaction: from Vasconcellos & Hemsley, PMI Proceedings 1981, as adapted by Dinsmore 32 16 v2009.1 © Procept Associates Ltd. ...
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This document was uploaded on 10/23/2011.

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