1 © The Delos Partnership 2004 Project Management Organisation and Structure

2 © The Delos Partnership 2004 Project Management Framework & Organisation – Key Concepts All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas 4. Project Integration Management 4. Project Integration Management 5. Project Scope Management 5. Project Scope Management 6. Project Time Management 6. Project Time Management 7. Project Cost Management 7. Project Cost Management 8. Project Quality Management 8. Project Quality Management 9. Project Human Resource Management 9. Project Human Resource Management 10. Project Communications Management 10. Project Communications Management 11. Project Risk Management 11. Project Risk Management 12. Project Procurement Management 12. Project Procurement Management

3 © The Delos Partnership 2004 Role 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

4 © The Delos Partnership 2004 Planning & Control Programme Office Business Review System Interface Leadership Change Management Team Building Benefits Management Financial Well-Being Role of the Project Manager

5 © The Delos Partnership 2004 Functional Organisation Functional Manager Chief Exec. Functional Manager Functional Manager 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 Programme coordination

6 © The Delos Partnership 2004 Functional 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 AdvantagesDisadvantages

7 © The Delos Partnership 2004 Matrix Organization Project Manager Project Manager Prog. Manager Project Manager Project Manager Function Manager Function Manager Function Manager TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL TLTL

8 © The Delos Partnership 2004 Matrix 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 AdvantagesDisadvantages 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”

9 © The Delos Partnership 2004 Projectised Organisation Full-time project manager Direct reporting of team members to PM Project manager has high or total authority % of team assigned full-time Prog. Manager Prog. Manager Project coordination

10 © The Delos Partnership 2004 Projectised Organisations No “home” when project complete Lack of professionalism in disciplines Duplication of facilities and job functions Less efficient use of resources effort AdvantagesDisadvantages Efficient project organisation Loyalty to project More effective communications that functional

11 © The Delos Partnership 2004 Organisational Structure Influences 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 Organisation Type Part-time Project Coordinator/ Project Leader Part-time Virtually None Little or None Functional Part-time Full-time Part-timeFull-time Project Coordinator/ Project Leader Project Manager/ Project Officer Project / Program Manager 0-25%15-60%50-95%85-100% Limited Low to Moderate Moderate to High High to Almost Total Projectised Matrix Weak Matrix Balanced Matrix Strong Matrix Project Characteristics Source: PMI® Project Management Body of Knowledge

12 © The Delos Partnership 2004 Project Organisation No one “best” structure Major considerations are: –Control –Responsibility & Accountability –Integration & Decision Making –Communication & Visibility –Priority & Trade-off –Stakeholder Management

13 © The Delos Partnership 2004 There 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

14 © The Delos Partnership 2004 The 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

15 © The Delos Partnership 2004 Project Integration Management During 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

16 © The Delos Partnership 2004 Project Integration Management Constraints –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

17 © The Delos Partnership 2004 Project Integration Management Project 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

18 © The Delos Partnership 2004 Project Integration Management Kick 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

19 © The Delos Partnership 2004 Project Integration Management Change 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

20 © The Delos Partnership 2004 Project Integration Management 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

21 © The Delos Partnership 2004 Project Integration Management Managing 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

22 © The Delos Partnership 2004 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.