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Module 2 Session 2.2 Visual 1 Module 2 Structuring the Project Organization Session 2.1 Alternative Organizational Structures Lecture 2.2.1 The Project.

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Presentation on theme: "Module 2 Session 2.2 Visual 1 Module 2 Structuring the Project Organization Session 2.1 Alternative Organizational Structures Lecture 2.2.1 The Project."— Presentation transcript:

1 Module 2 Session 2.2 Visual 1 Module 2 Structuring the Project Organization Session 2.1 Alternative Organizational Structures Lecture The Project Charter

2 Module 2 Session 2.2 Visual 2 Instructional Objectives Given a Project Analysis Report (PAR) and other information, learners will be able to: 1.Describe the characteristics of the project charter 2.Distinguish between weak and strong project charters 3.Given a PAR or vignette characterize the organizational structure and project management role stated or implied in the document 4.Prepare a project charter that describes the project’s organizational structure and the roles and responsibilities of the project manager, project management core team, and functional departments (in a matrix environment)

3 Module 2 Session 2.2 Visual 3 A project charter is a document that formally defines the authority and responsibility relationships on a project.

4 Module 2 Session 2.2 Visual 4 Typical Elements in a Project Charter Authority: The project manager has the delegated authority from top management to direct all project activities. Responsibility: The project manager’s responsibilities are to the chief executive for overall project direction according to established business objectives and contractual requirements regarding technical specifications, schedules, and budgets. More Specifically, the Project Manager Is Responsible for: I)Establishing the project organization II)Establishing and maintaining the project plan III)Managing and controlling the project, and IV)Communicating the project status V)Escalating decisions or unresolved problems in a timely manner

5 Module 2 Session 2.2 Visual 5 The Project Charter Should Address I) Establishing the project organization 1. The project manager's position directing all project activities 2. The need for a defined authority-responsibility relationship among The project manager, Functional managers, Task managers, and Top management 3. The need for influence to cut across functional and organizational lines 4. Collaborating (with the personnel office and the functional supervisors) in staffing the project 5. Establishing a project organization (a matrix organization) for the duration of the project 6. Having a voice in maintaining the integrity of the project team during the complete life of the project 7. Participation in the merit evaluation of key project personnel assigned to the project 8. The need to state clearly who the project sponsor is and what access the project manager has to him/her/them

6 Module 2 Session 2.2 Visual 6 The Project Charter Should Address (continued) II) Establishing and maintaining the project plan 9.Establishing project plans through the coordinated efforts of the organizations involved in the project 10.Providing leadership in the preparation of operational requirements, specifications, and bid packages and change control 11.Active participation in major management and technical decisions 12.Allocating and controlling the use of funds on the project

7 Module 2 Session 2.2 Visual 7 III) Managing and controlling the project 13.Control over the allocation and expenditure of funds, and active participation in major budgeting and scheduling deliberations 14.Selection of subcontractors to support the project and the negotiation of contracts 15.Rights in resolving conflicts that jeopardize the project goals 16Promoting technological and managerial improvements throughout the life of the project 17.Managing the cost, schedule, and technical performance parameters of the project IV) Communicating project status 18.Providing an information system for the project with sufficient data for the control of the project within allowable cost, schedule and technical parameters 19.Maintaining prime customer liaison and contact on project matters 20.Reporting on project progress V) Escalating decisions or unresolved problems in a timely manner The Project Charter Should Address

8 Module 2 Session 2.2 Visual 8 The Project Manager’s Charter “ Unless the project manager’s charter is delineated very clearly, not only to him but to others in the organization, he is neither fish nor fowl. He is not master of his destiny. The charter is the environment that is created for the project manager. It is 50% of the battle of whether he is successful or not. It says, does he have management’s support to run his project as he sees fit, or does someone else.” David Wilemon Syracuse University

9 Module 2 Session 2.2 Visual 9 Evaluating Your Charter  Are Your Authority and Responsibility Commensurate?  Do You Control the Budget?  Do You Have Enough Control Over Resources to Get the Job Done?  Will You Be Able to Make Things Happen?  Will Your Influence Be Able to Make up for Your Lack of Authority (Power)?  Do you have the authority (ability) to escalate pending decisions or unresolved problems to the organizational level needed to keep the project on schedule?

10 Module 2 Session 2.2 Visual 10 Selling Management on the Need for a Stronger Charter  Define the Problem (Lack of Authority)  Define Exactly What You Want  Think Through What Problems Those Changes Might Cause Management With the Functional Departments  Analyze the Pros and Cons From Management’s Viewpoint  Present a Strong Proposal

11 Module 2 Session 2.2 Visual 11 Project Manager Organizational Design Planning and Reporting System Three Parameters

12 Module 2 Session 2.2 Visual 12 Key Variables  Existing organizational structure  Formal integration procedures  Internal  External  Management systems  Personnel available for roles  Degree of predetermined structure inherent in the project  Pattern of demand on staff time  Geography  Management style

13 Module 2 Session 2.2 Visual 13 Organization  Organization chart  Reporting relationships  Project Sponsor  Position descriptions  Charter  Project team  Functional departments

14 Module 2 Session 2.2 Visual 14 Project Manager Organizational Design Planning and Reporting System Three Parameters

15 Module 2 Session 2.2 Visual 15 Organizational Design Is Not as Important As:  Leadership  Objectives  Personnel  Organizational climate  Management systems


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