LO2 FLASHCARDS BRAND NEW 04.03

Organisation Structure

• Definition: The organisation structure defines the reporting and decision-making hierarchy and how project management operates within it.

Functional Departments

• Organisations have functional departments like finance, IT, and HR that structure resources and processes to perform work.

Project Management Across Functions

• Project management transcends functional boundaries, and its effectiveness varies based on the organisation’s structure.

Purpose of Organisational Structures

• Structures define how roles, responsibilities, and power are allocated to achieve strategic aims.

Types of Organisational Structures

• Permanent Organisational Structure: A stable framework that supports decision-making and the flow of information for routine operations.

• Matrix-Type Structure: Most organisations adopt this structure where operational units are backed by functions that set policy and manage controls.

• Temporary Project Structures: Projects are temporary and require a distinct structure within the permanent organisation to manage activities and resources effectively.

Coordination of Temporary Structures

• Temporary structures for projects, programmes, or portfolios must sync with the permanent organisation.

Role of Project Managers

• Project Managers function across both temporary and permanent structures; their success is influenced by organisational alignment.

Organisational Structure Continuum

• Structures vary from functional (permanent) to project-based (temporary), with the matrix structure serving as a hybrid.

Functional Structure

• Definition: People are grouped by function, collaborating on similar tasks.

• Management in Functional Projects: Projects may be managed within a functional department or transferred between functional teams.

• Functional Head Role: Responsible for overall project delivery in their department.

• Functional Project Managers: Typically, a member of the department manages the project, often without an official Project Manager title.

Project Funding in Functional Structures

• Funding originates from the department’s budget, with potential additional board financing for significant changes.

Strengths and Weaknesses of the Functional Approach

• Strengths: Leverage technical expertise within departments, resembling business-as-usual operations.

• Weaknesses: Challenges in prioritising between BAU and projects, project invisibility, and siloed departmental efforts.

Matrix Structure

• Definition: A structure where employees report to different managers for various aspects of their tasks.

• Dual Reporting: Team members report to both the project manager for project tasks and to their functional manager for routine duties.

• Project Manager Role: The project manager may originate from a functional area or be contracted specifically for the project duration.

Staff Assignment in a Matrix Structure

• Staff are allocated to projects and then revert to their primary roles post-project, or move onto another project.

• Visibility of Projects: Unlike functional structures, projects in a matrix structure are visible across the organisation.

• Resource Management: Effective resource management is crucial to prevent project work from interfering with BAU operations.

• Staff Awareness: Employees become familiar with project work, fostering movement between projects as a norm.

• Priority Conflicts: Dual reporting can create conflicts over project versus functional priorities.

• Managing the ‘Two-Boss Problem’: Good interpersonal relationships and communication mitigate conflicts between project and functional priorities.

• Communication Complexity: Matrix structures have more sophisticated communication requirements than functional structures.

Project/Product Structure

• Definition: The organisation is divided into projects, each directed by a project manager or director directly reporting to the board.

• Dedicated Project Teams: Teams fully dedicated to a project and report daily to the project director.

• Project Lifespan: Upon project completion, that section of the organisation is dissolved.

• Strength – Project Focus: The structure is exclusively oriented towards project delivery without BAU responsibilities.

• Internal Service Functions: Projects may have their own procurement, finance, HR, and specialist technical capabilities.

• Clear Roles and Responsibilities: Defined processes and roles enhance team technical capabilities.

Weaknesses of Project/Product Structure

• Job Security Issues: High job security during projects transforms into a risk of unemployment when the project ends.

• Risk of Isolation: Projects can become insular, lacking communication with other projects.

• Underutilisation of Skills: Skills developed in one project may not be applicable or leveraged in subsequent projects, leading to inefficiencies.

• Loss of Organisational Learning: Valuable knowledge may be lost after project teams disband.

Project Manager Responsibilities

• Delivering Objectives: Ensure project completion on time, within budget, and to quality standards.

• Decision-Making: Make timely choices to guarantee project success.

• Sponsor Communication: Keep the sponsor informed on progress and seek guidance as required.

• Managing Expectations: Address expectations of sponsors and users effectively.

• Planning: Develop a Project Management Plan outlining project definitions and planning.

• Monitoring & Controlling Progress: Track progress and implement corrective actions when necessary.

• Allocating Work Packages: Clearly define responsibilities for team members.

• Reporting to Management: Keep senior management updated on progress, issues, and risks.

• Project Reviews & Termination: Initiate reviews and assist the sponsor in deciding on project termination if warranted.

• Main Contact: Act as the primary liaison for stakeholders, team members, contractors, and suppliers.

Project Sponsor Responsibilities

• Ultimate Accountability: The sponsor bears overall responsibility and risk for the project.

• Managing Concept Phase: Oversee the project during its inception before transferring to the project manager.

• Ensuring Benefits Realisation: Remain accountable for the achievement of project benefits post-handover to operations.

• Steering Group Role: Lead the steering group, addressing business and management issues.

• Advocacy: Support the project at a senior level, ensuring resource availability.

• Prioritising Constraints: Determine priorities among time, cost, and quality.

• Project Manager Appointment: Initiate the project and ensure a project manager is designated.

• Monitoring and Control: Oversee project progress, and make control decisions as escalated by the project manager.

• Review Business Case: Supervise the business environment and review project viability during key decision points.

• Keeping Management Informed: Regularly update senior management on project status.

• Terminate Projects: Decide on project continuance or termination following reviews.

• Supporting Project Manager: Provide consistent support to the project manager.

• Programme Liaison: Communicate with programme managers if involved in larger programmes.

• Business Case Ownership: Maintain ownership of the business case throughout the project duration.

User Responsibilities

• Identifying Requirements: Clearly specify operational needs distinguishing must-have features from desired ones.

• Recognising Constraints: Identify limitations and interdependencies that could affect project outcomes.

• Accepting Deliverables: Ensure integration of project outputs into regular operations to achieve intended benefits.

• Providing Assistance: Offer guidance via a user representative or senior user, often part of the steering group.

• Handover Support: Assist the project manager during the transition of deliverables for smooth acceptance.

• Communicating Changes: Notify the project manager of operational changes that may influence project progress.

• Active Engagement: Participate actively as part of the project team to contribute to success.

Project Team Member Responsibilities

• Supporting the Manager: Assist the project manager in achieving project goals using their expertise.

• Task Execution: Carry out assigned responsibilities diligently to further project objectives.

• Collaboration: Work cohesively with team members to ensure collective progress.

• Problem-Solving: Proactively identify and tackle issues to prevent project delays.

• Communication: Maintain open communication lines with the project manager and team for alignment.

• Adaptability: Be flexible to adapt to changes and new requirements as they arise.

• Managing Stakeholder Communication: Handle stakeholder communications as outlined in the communication plan.

• Managing Work Breakdown Structure (WBS): Identify tasks, estimate durations, monitor progress, solve issues, and ensure timely completion within budget and quality standards.

• Risk Ownership: Manage risks effectively within their area of expertise.

• Supporting Project-Wide Problem Solving: Help the project manager and team with project-wide issues as an action owner.

• Participating in Evaluation: Engage in evaluations throughout the project lifecycle.

• Reporting Progress: Provide timely updates on their assigned tasks.

Project Steering Group Responsibilities

• Budgetary Strategy Oversight: Responsible for financial planning and oversight of the project budget.

• Defining Benefits: Ensure that project benefits are clearly defined and realised.

• Monitoring Risks and Quality: Track risks, maintain quality standards, and adhere to timeframes.

• Policy and Resource Decisions: Make decisions on policies and resource allocations essential for project success.

• Assessing Scope Changes: Evaluate requests for changes to project scope with potential business case impacts.

• Project Advocacy: Promote and support the project within the organisation.

• Providing Guidance: Offer strategic direction and oversight ensuring alignment with organisational objectives.

• Ensuring Compliance: Verify that the project meets all organisational procedures, policies, and regulations.

• Resolving High-Level Issues: Tackle significant issues impacting project success.

• Approving Deliverables: Review and endorse critical project deliverables to ensure they meet standards.

• Facilitating Stakeholder Communication: Enhance communication among stakeholders associated with the project.

• Resource Availability Assurance: Ensure necessary resources are available for project execution.

• Monitoring Performance: Regularly assess project performance metrics to ensure targets are met.

• Supporting Change Management: Assist in managing changes within the project to minimise disruptions.

• Providing Decision-Making Support: Facilitate decision-making processes to promote project progress.

• Aligning with Strategy: Ensure ongoing alignment of the project with organisational strategy and goals.

• Reviewing Project Plans: Examine and approve comprehensive and feasible project plans.

• Managing External Relationships: Oversee interactions with external partners, vendors, or stakeholders relevant to the project.

Evaluating Project Outcomes

• Assess project outcomes to determine success and extract lessons learned.