Chapter 15

Project Organization, Leadership, and Control

Project-Driven OrganizationAll work characterized through projectEach project as a separate cost center having its own profit and loss statementTotal profit of the corporation is simply the summation of the profit on all projectsEverything centers around the projects

Project Organization

The project office – integrating functions for project activities, such as a project engineer, project administratorKey functional support – support from certain key functional areas, such as product design and analysis, system analysisManufacturing and routine administration – activities that less likely to be under direct project controlFuture business – activities such as non-project-specific R&D and marketing are necessary for the continuation of the project-driven organization

Elements of the Project Driven Organization

Projectized versus Functional Organization

Functional Organization Projectized OrganizationAdvantages Advantages- Efficient use of technical personnel - Good project schedule and cost control

- Career continuity and growth - Single point for customer contact

- Good technology transfer between projects

- Rapid reaction time possible

- Good stability, security, and morale - Simpler project communication

- Training ground for general management

Disadvantages Disadvantages- Weak customer interface - Uncertain technical direction

- Weak project authority - Inefficient use of specialist

- Poor horizontal communication - Insecurity regarding future job assignment

- Discipline rather than program oriented - Poor crossfeed of technical information

- Slower work flow Between projects

Source: www.codeproject.com

Fully Projectized Organization

Matrix Management

Project personnel report to both functional and project managersThe Project Manager controls–Project TasksProject ResourcesProject ScheduleAND is the focal point for customer contact, project changes, and project communication

The Functional Manager is responsible for:–Assignment of functional specialistsQuality of work done with the functional specialtySelecting, evaluating, and rewarding work within the specialty

Typical Matrix Organization

Matrix Relationship

Project Team

Need a blend of skillsTechnical – must understand the essentials of technologies to evaluate whether the work done is of sufficient qualityAdministrative – must be experienced in planning, leading, organizing, staffing, and control techniqueInterpersonal – the ability to inspire, negotiate, and persuade others very important; project managers need a good understanding of conflict resolution methods

Characteristics of Effective Program Manager

Customer Communications

Learning Path

Figure 15.7 (a) Learning paths; (b) expenditure rate versus time. (From Jack Balderston, Philip

Birnbaum, Richard Goodman, and Michael Stahl, Modern

Management Techniques in Engineering and R&D, Van

Nostrand Reinhold Company, Inc., New York, 1984, pp. 135–149.)

Project Manager's Scope and Responsibilities

Sets project priorities relative to other activitiesPrimary point of contact for customerDefines the work to be performed by supporting departments in terms of cost, schedule, and performanceControls the project budget

Project Manager's Scope

Responsible for design reviewsResponsible for configuration and design controlResponsible for source selection decisionsResponsible for project status reportsPerforms merit review of assigned project personnel

Scope creep – the tendencyFor the project scope to expandOver time (by changing Requirement, specification, andpriorities

Commitment of parent organization, project manager, and client to

SchedulesBudgetTechnical PerformanceFrequent FeedbackAdequate ControlPublic

Support

Characteristic Associated with Success

Characteristic Associated with Success

Reduced Bureaucratic Complexity (i.e. Red Tape)Judicious use of planning and control tools“Projectized” 0rganizationParticipative decision making within the teamProject management skillsBottom Line–Satisfied Customer

Inadequate project manager skillsPoor customer coordination and rapportPoor rapport and coordination with own organizationLack of Project Team participationPoor project controlLack of familiarity with project requirements - lack of resourcesPoor public relations

Characteristics Associated withFailure

The principle and practice of good, general management also apply to the management of projectPM face technical problem with a human dimensionProject professionals tend to be perfectionist – difficult to meet under normal condition (professionals want to keep improving and thus changing)Another problem is motivating project team to accomplish the work

Human Factors and the Project Team

Organizing the team's work – bringing people together and make them contribute their effort to the same objective does not mean that they will behave like a teamProject success will be associated with teamworkAnother behavioral problem for the PM is interpersonal conflict

Human Factors and the Project Team

Managing Conflict

Seven potential conflict sources:

Conflict over schedulesOver project priorities, including conflict over sequencing of activities and tasksOver work-force resourcesOver technical opinions and performance trade-offsOver administrative proceduresPersonality conflictOver cost and the funds allocated to functional support groups

Withdrawal, or retreat from actual or potential conflictForcing one's viewpoint at the potential expense of the other partySmoothing, or emphasizing the points of agreement and deemphasizing areas of conflictCompromising or negotiating, each party must give up something but satisfiedConfronting or problem solving, focus on the issues, consider alternatives, and look for the best overall solution

Methods of Conflict Management

Conflict can be handled in several waysConflict avoiders do not make successful project managerCompromise appears to be helpfulGently confronting the conflict is the method of choice

The project manager did not flinch in the face of negative interpersonal feelings when listening to differences between people.

“You have to learn to listen, keep your mouth shut, and let the guy get it off his chest”

Encouraged openness and emotional expressionSet a role model for reacting to personality clashes. It was observed that a peer would often intercede and act out a third party conciliation role much like managerThe manager seemed to exhibit the attitude that conflict could be harnessed for productive endsAlthough managers usually confronted conflicts, they also avoided face-to-face meetings when the outside pressure was too high

How Project Manager Handled Difficult Conflict