1. ELC 347 project management
Day 3

2. Agenda Questions?? Assignment 1 posted in Blackboard
Remove Big Block El Camino from Bribe list
Bought 1967 El Camino with a 454 engine this weekend
Assignment 1 posted in Blackboard
Due September 12:35 PM
Assignment 2 posted in Blackboard
Due September 12:35 PM
Discussion on the The Organizational Context

3. Integrated Project teams
1st team group meeting and group assignment (pages ) will be part of next class period
IP part one due Thursday, September 30

4. The Organizational Context: Strategy, Structure, and Culture
Chapter 2
© 2007 Pearson Education

5. The Organizational Context: Strategy, Structure, and Culture
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Organizational Context: Strategy, Structure, and Culture
Chapter 2

6. Successful project management
Contextual --- organization itself matters
Must reconcile with
Organizational Strategy
Stakeholders
Organizational Structure
Culture

7. Projects and Organizational Strategy
Strategic management – the science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives.
Consists of:
Developing vision and mission statements
Formulating, implementing and evaluating
Cross functional decisions
Achieving objective
BUS 411

8. Projects Reflect Strategy
Projects are stepping stones of corporate strategy
The firm’s strategic development is a driving force behind project development
Some examples include:
A firm wishing to…
…may have a project
redevelop products or processes
to reengineer products or processes.
changes strategic direction or product portfolio configuration
to create new product lines.
improve cross-organizational communication & efficiency
to install an enterprise IT system.

9. Relationship of Strategic Elements
Mission
Objectives
Goals
Programs
Strategy
Fig 2.1

10. An example

11. Stakeholder Management
Stakeholders are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development.
Sets of project stakeholders include:
Internal Stakeholders
Top management
Accountant
Other functional managers
Project team members
External Stakeholders
Clients
Competitors
Suppliers
Environmental, political, consumer, and other intervenor groups

12. Project Stakeholder Relationships
Manager
Other Functional Managers
External Environment
Team
Accountant
Top Management
Parent Organization
Clients
Fig 2.3

13. Managing Stakeholders
Assess the environment
Identify the goals of the principal actors
Hidden agendas
Goal displacement
Mutually beneficial alignments
Assess your own capabilities
Define the problem
Develop solutions
Test and refine the solutions

14. Project Stakeholder Management Cycle
Project Management Team
Identify Stakeholders
Gather Information on Stakeholders
Determine Stakeholder Strengths & Weaknesses
Implement Stakeholder Management Strategy
Identify Stakeholders Mission
Predict Stakeholder Behavior
Identify Stakeholder Strategy
Fig 2.4
D.I. Cleland, 1998

15. Organizational Structure
Consists of three key elements:
Designates formal reporting relationships
number of levels in the hierarchy
span of control
Groupings of:
individuals into departments
departments into the total organization
Design of systems for
effective communication
coordination
integration across departments

17. Forms of Organization Structure
Functional organizations – group people performing similar activities into departments
Project organizations – group people into project teams on temporary assignments
Matrix organizations – create a dual hierarchy in which functions and projects have equal prominence

18. Functional organization

19. Functional Structures for Project Management
Strengths
Weaknesses
Firm’s design maintained
Fosters development of in-depth knowledge
Standard career paths
Project team members remain connected with their functional group
Functional siloing
Lack of customer focus
Projects may take longer
Projects may be sub-optimized

20. Project Structure

21. Project Structures for Project Management
Strengths
Weaknesses
Project manager sole authority
Improved communication
Effective decision-making
Creation of project management experts
Rapid response
Expensive to set up and maintain teams
Chance of loyalty to the project rather than the firm
No pool of specific knowledge
Workers unassigned at project end

22. Matrix Structure

23. Matrix Organization
Cross-functional & Project teams

24. Matrix Structures for Project Management
Strengths
Weaknesses
Suited to dynamic environments
Equal emphasis on project management and functional efficiency
Promotes coordination across functional units
Maximizes scarce resources
Dual hierarchies mean two bosses
Negotiation required in order to share resources
Workers caught between competing project & functional demands

25. Heavyweight Project Organizations
Organizations can sometimes gain tremendous benefit from creating a fully-dedicated project organization
Lockheed Corporation’s “Skunkworks”
Project manager authority expanded
Functional alignment abandoned in favor of market opportunism
Focus on external customer

27. Project Management Offices
Centralized units that oversee or improve the management of projects
Resource centers for:
Technical details
Expertise
Repository
Center for excellence

28. Forms of PMOs Weather station – monitoring and tracking
Control tower – project management is a skill to be protected and supported
Resource pool – maintain and provide a cadre of skilled project professionals

30. Organizational Culture
The unwritten rules of behavior, or norms that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company.
Key factors that affect culture development
Technology
Environment
Geographical location
Reward systems
Rules and procedures
Key organizational members
Critical incidents

31. Culture Affects Project Management
Departmental interaction
Employee commitment to goals
Project planning
Performance evaluation

32. Why? What do you as a Project Manager do about it?
People hate change!

33. Seth Godin (Fast Company)
“Competent people are quite proud of the status and success that they get out of being competent. They like being competent. They guard their competence, and they work hard to maintain it. “
“Competent people resist change”
“ Why? Because change threatens to make them less competent. And competent people like being competent. That's who they are, and sometimes that's all they've got. No wonder they're not in a hurry to rock the boat.”
In fact, competence is the enemy of change!

34. External forces that drive Change
Environmental
Economics
Competition
Interest rate
Distribution channels
Labor
Availability of raw materials
PROJECTS !

35. Reaction to change Behavior is manifested in company culture
“what people do when no one is telling then what to do”
Peter Bijur, CEO of Texaco, Inc

36. Organizations must adapt
“For sustainable competitive advantage, you have to change the culture”
Peter Bijur
Company culture must see change as a positive
Raising to a challenge

37. Effect of Change on the project manager
Projects Manager deal with change on a daily basis
Schedules
Specifications
Supplies
Labor
Project manger are “Change Agents”
Seth Godin

38. Individual responses to change
People responds differently to change depending on past experience with change
Tolerance of ambiguity
Novelty
Complexity
Insolubility
Project mangers must display a positive response to all change

39. 3 Possible reactions Negative reactions
Employees stop being cooperative
Accepting change but not embracing change
We do it because we have to
Grudging acceptance
Passive resistance
Inciting change
Change for change’s sake

40. Professional Survival in the face of change
Adopt the following behaviors
Develop awareness for external conditions that drive company success
Recognize cause and effect relationships in the workplace
Take creative actions
View change as positive
Read “Who Moved My Cheese?”

41. Organizational approaches to change
3 Common approaches
Slash and burn
Support and nurture
Inspire and motivate
Project managers do not make large changes decisions but are responsible for implementation of those decisions.

42. Urgent Change Problems are aggravated when change is “URGENT”
Challenge #1 Bailout
Provide real information
Set priorities and get commitments for “on high”
Challenge #2 Poor Morale
Remain realistically positive
Get the facts
Move to the new agenda ASAP

43. Ways to speed Change Acceptance
Explains reasons for change
Project positive outcomes
Hold a “wake” for old ways
Create group “memories”
Get change implementation ideas for departments affected
Ask employees to drive the change process

44. Ongoing Change Managament
A project manager is a facilitator
Set an example
Behave consistently
Recognize employees for embracing change
Nurture growth in employees
Involve employees min goal setting

45. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall