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Embedding Project Management in a traditional organization structure by Bragidier Simon yammine

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The objective of the session is to have a better understanding and acknowledge the vital importance of project management in the public sector and the various attempts of reform, to explore the various organizational theories and practices to devise a best structure for an inept public sector.

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Embedding Project Management in a traditional organization structure by Bragidier Simon yammine

  1. 1. Organizations Organizations are groups of people coordinating their activities to meet organizational objectives Jobs and lines of authority are embodied in a bi-dimensional chart: •Vertical representing hierarchy and formal chain of command •Horizontal showing the division of labor
  2. 2. Organizations Organizational structures are dictated by • Technology and its rate of change • Complexity • Resource availability • Products and/or services • Competition • Decision-making requirements Organizations are continually restructured in response to their environment
  3. 3. Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Large 5. Crisis of ? 3. Crisis of control 4. Crisis of red tape 5. Growth through collaboration 2. Crisis of autonomy 4. Growth through coordination Size 1. Crisis of leadership 3. Growth through delegation 2. Growth through direction Small Young Age Mature Revolution Stage Evolution Stage
  4. 4. Creativity Simple small organization Central control Members with multi-skills Manpower shortages Market fluctuations Informal HRM
  5. 5. Creativity Communication is frequent and informal Long working days for modest salaries Owners are technicians or entrepreneurs who: • disdain management • highly sensitive to marketplace feedback •focus on manufacturing and selling
  6. 6. Crisis of Leadership Unmanageable business Additional capital need New accounting procedures need Insufficient informal communication Conflicts among owners Burdening management chores for owners Restructuring becomes urgent
  7. 7. Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Large 5. Crisis of ? 3. Crisis of control 4. Crisis of red tape 5. Growth through collaboration 2. Crisis of autonomy 4. Growth through coordination Size 1. Crisis of leadership 3. Growth through delegation 2. Growth through direction Revolution Stage Evolution Stage Small 1.Growth through creativity Young Age Mature Revolution Stag Evolution Stag
  8. 8. Direction Creation of departments and functions Leaders appointment More formal communication Specialized skills development More complex HRM activities Incentives, budgets, work standards introduction Supervision task reserved to owners
  9. 9. Crisis of Autonomy Control over organization is hard Top-level managers resist giving up responsibilities Lower-level managers are not easy with decision- making Employees are hindered by a centralized hierarchy Employees are more knowledgeable than leaders Employees feel torn between procedures and initiatives
  10. 10. Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Large 5. Crisis of ? 3. Crisis of control 4. Crisis of red tape 5. Growth through collaboration 2. Crisis of autonomy 4. Growth through coordination Size 1. Crisis of leadership 3. Growth through delegation 2. Growth through direction Revolution Stage Evolution Stage Small 1.Growth through creativity Young Age Mature Revolution Stage Evolution Stage
  11. 11. Delegation Greater responsibility is given to the middle and lower managers Profit centers and bonuses are introduced Top-level executives at headquarters limit their intervention Managers have greater authority, agility and incentives to explore markets and products Lower-level managers’ motivation steer growth
  12. 12. Crisis of Control Field managers run their own shows Plans, money, technology, and personnel lack of coordination Freedom breeds a parochial attitude Top-level executives seek to regain control
  13. 13. Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Large 5. Crisis of ? 3. Crisis of control 4. Crisis of red tape 5. Growth through collaboration 2. Crisis of autonomy 4. Growth through coordination Size 1. Crisis of leadership 3. Growth through delegation 2. Growth through direction Revolution Stage Evolution Stage Small 1.Growth through creativity Young Age Mature Revolution Stag Evolution Stag
  14. 14. Coordination Formal coordination systems are introduced Formal planning procedures are established Staff members control and review line managers Capital expenditures are carefully weighed and parceled Daily operating decisions remain decentralized Managers must justify their actions to headquarters Stock options and company wide profit sharing are used
  15. 15. Red-Tape Crisis Line and staff relations lack confidence Procedures take precedence over problem solving Innovation dims Staff members complain about line managers Line managers resent direction from staff Organization cannot be managed through formal programs and rigid systems
  16. 16. The Poultry Store
  17. 17. Organization is not the Holy Grail…
  18. 18. Anyone with a good experience with the Lebanese bureaucracy?
  19. 19. Bureaucracy
  20. 20. Bureaucracy Time overrun Cost overrun Dissatisfaction Fluctuations in performance Burnout No focal point
  21. 21. The Triple Constraint
  22. 22. Collaboration is the solution But How?
  23. 23. Traditional Organization
  24. 24. Traditional Organization Pros Budgeting and cost control is easier Technical control is guaranteed Specialists share knowledge and responsibility Personnel can be used on many different projects Projects benefit from the most advanced technology Communication channels are vertical and well established Personnel are better controlled
  25. 25. Traditional Organization Cons Coordination becomes complex Pinpointing responsibility is difficult Additional lead time is required Response time is slow Motivation and innovation are decreased Ideas tend to be function and not project oriented Customer have no focal point
  26. 26. Informal Organization An informal organization is the set of unofficial relationships and human interactions Benefits • Assists in accomplishing the work faster • Helps in compensating for any weakness in the structure • Provides an additional channel of communication • Affords emotional support for employees Disadvantages • May work against the purpose of the formal organization • Reduces the degree of predictability and control • Increases the time required to complete activities
  27. 27. Pure Production
  28. 28. Pure Production Pros Units are autonomous and specialized Workflow is stable Conflicts are kept at bay Workforce reports to a single person Communication networks are strong Response time is very short Lead times are history
  29. 29. Pure Production Cons Human resources cost higher Employees remain attached to the project Control of premises, equipment and facilities, is problematic Technology suffers from a lack of adequate functional support
  30. 30. Interface Management Rules and procedures The identification and documentation of procedures and processes needed to eliminate the conflicts Planning processes Representatives from each functional unit discuss planning, programming and budgeting issues Hierarchical referral Conflicts and struggle for power require that upper-level personnel resolve non-routine or unpredictable problems Personal interactions Functional managers meet face-to-face to resolve conflicts
  31. 31. Project Leader
  32. 32. Project Leader Project leaders are designated in order to eliminate internal conflicts Project leaders don't have proper authority Project leaders are not in a position to give instructions to the line managers Project leaders don’t have the authority to coordinate activities in other departments Conflicts and internal power struggles are possible side effects
  33. 33. Task Force Benefits • Members are fully dedicated • Teams are formed for a specific task and then dissolved • Each functional unit have a representative • Decisions are generated at the lowest hierarchical level possible • Time waste is reduced to a minimum Disadvantages • Functional managers appoint less qualified representatives • The Task force lacks the adequate resources and expertise • Decision-makers cannot acquire the necessary information • Any conflicts between functions and project will be resolved
  34. 34. Liaison Department Benefits • Manages the transactions between the different functional units • Derives its authority from the division manager • Ensures that all the units are working in the same conditions and targeting the same objectives Disadvantages • It’s an amplified version of the project leader • Its authority stops at the confines of the division • Any conflict between divisions requires higher hierarchical arbitration
  35. 35. Project Management
  36. 36. Project Management Overall assessment TRADITIONAL METHODS WATERFALL CPM PERT CCPM PRINCE 2 PROS (+) Waterfall is useful if the project is mission critical and highly complex and if there is a need for an exceptionally high level of fault tolerance. PERT/CPM charts can calculate exactly how long a project will take. They provide managers with a range of time in which the project should be completed, based on the total of all minimum and maximum time limits for all activities. With resources mapped out, you know exactly who is available for what part of the project and collaboration on tasks is made easier. CCPM is ideal for resource-heavy teams. In large corporate entities, the extensive documentation required for PRINCE2 helps with performance appraisals and corporate planning, as well as mitigating against certain risks. CONS (-) Waterfall can be quite a rigid system and can lack the flexibility to deal with faced- paced and changeable projects. Because additional time buffers are built into each stage of the plan, CPM doesn’t work very well for small-scale projects with a quick-turnaround. PERT/CPM relies on past data and experience to formulate completion time predictions. Resource loads are understated, making raw numbers difficult to interpret Method requires mastering the process and requires unique software. When something changes in a PRINCE2 project, it can take some time for the team to adapt, as the process is quite difficult to handle, with lot of documentation to be amended.
  37. 37. Project Management Overall assessment AGILE METHODS PRiSM LEAN AGILE XPM SCRUM PROS (+) When budgets are low, resources are scarce, and deadlines are short, Lean helps to make the cut needed to deliver quality work. Flexible and modifiable goals makes Agile a great methodology for creative and software projects, where new ideas and innovations can be quickly adapted into the existing framework. For a team that demands a high production level, XP can do wonders for productivity. Certain types of people thrive under this environment, which uses collaboration and simple structures to avoid overwork. Scrum is an iterative methodology, it’s all about productivity and quickly adapting to changing parameters. If the company is orientated towards sustainability and environmental consciousness, this is the project management methodology to choose. CONS (-) Lean relies on decisions being made quickly and decisively. Agile is a very hands-on approach, especially for stakeholders and project managers. The success of a UX team relies not so much on the process itself but on the ingenuity of the individual members of the team. Scope-creep is a huge issue in Scrum projects - they can easily bloat out of control if not reigned in. PRiSM cannot work in isolation. Every level of the company needs to be on board with sustainable principles, or the methodology will fail.
  38. 38. Project Management Pros Manager’s full authority over the project Well defined responsibilities Strong team culture Flexible and versatile committed work force Shared common goal Shorter reaction time Easier work scheduling Shorter, effective and efficient lines of communication Timely completion of the project
  39. 39. Project Management Cons Authority and responsibility overlapping between executives and project management Conflicts between project and functions Duplication of facilities, job functions, efforts Greater cost Fall behind in technology Insecurity and decreased loyalty Stress due to tight schedule and deadlines
  40. 40. The Litani River Authority
  41. 41. The Litani River Authority
  42. 42. The Litani River Authority
  43. 43. UN FAO Census of Agriculture
  44. 44. Matrix Organization
  45. 45. Matrix Organization Pros. Synergy that offers the advantages of traditional and pure production The structure is ideal for project-driven organizations The project manager reports to GM The project manager is responsible for the project's success Authority resides in the hands of the team Information sharing is compulsory Functional units assure staunch technical support
  46. 46. Matrix Organization Projects' members must be entirely committed Vertical and horizontal lines are fully developed Horizontal lines must be capable of functioning independently An excellent communication network is a must The ultimate target is the creation of synergy between projects and functional management
  47. 47. Matrix Organization Cons Employees get instructions from project and functional managers Functional managers control evaluation, promotion, hiring, firing… Employees face conflicting interests between two managers A project assistant manager must be assigned when the project size becomes too big
  48. 48. Matrix Organization
  49. 49. Matrix Interface Project-Functional Project-Program-Functional Product-Functional Product-Functional-Geographic
  50. 50. Survey
  51. 51. Survey https://arcg.is/1vWCCv
  52. 52. Organizations “There is no such thing as a good or bad organizational structure; there are only appropriate or inappropriate ones…”
  53. 53. ThankYou For YourPatience

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