Chapter 4-Organizational Capability Structure, Culture, and Roles.pptx

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CONTEMPORARY PROJECT MANAGEMENT, 4E
Timothy J. Kloppenborg
Vittal Anantatmula
Kathryn N. Wells
© 2019 Cengage Learning. All Rights

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Organizational Capability: Structure, Culture, and Roles
Chapter 4

Chapter 4 Core Objectives:
• Compare and contrast functional, project, and matrix methods of organization
• Relate how organizational structure influences implementation of strategic plan
• Describe positive organizational cultural elements that should be exploited, as well as
negative cultural elements and how to overcome them
• Describe various project life cycle models
© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Chapter 4 Behavioral Objectives:
• Describe executive, managerial, and associate-level roles in project management
• Explain how to apply the PMI’s Code of Ethics and Professional Conduct
• Predict the impact of organizational structure & culture on individual and team
behaviors and performance
© 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Atos Origin – A Global Company
“I have observed that adaptability and empathy are helpful strengths for project
managers in this environment…It is important for you, as a student of project
management, to understand and appreciate that organizations are different and
are continuously evolving.”
Rachana Sampat (Thariani), Atos Origin
© 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected
website for classroom use.

Types of Organizational Structures
• Functional organizations
• Projectized organizations
• Matrix organizations

Controls the budget
Functional Organization
• Clear lines of authority according to type of work
• Grouped by areas of specialization
• One and only one supervisor
• Functional manager
• Hierarchical
Makes project decisions
Coordinates project communications

Functional Organization

ADVANTAGES
• Unity of command – only one “boss” is giving instructions
• Workers learn from each other and keep skills sharp
• Continue to report to the same functional manager
• Share resources among multiple small projects

DISADVANTAGES
• Slow communications across multiple functions
• Technical difficulty in incorporating input from other disciplines
• Long communication channels make for slow decision making and slow response
to change

Projectized Organizations
• The project manager has authority for budgets, personnel, and decision
making
• People report upward through the project manager
• The reporting manager is a project manager, not a functional manager

Projectized Organization

ADVANTAGES
• Traditional department barriers are reduced
• Unity of command
• Communication response times are fast
• Co-location – team members are physically close

DISADVANTAGES
• Cost of assigning members to one part-time project
• Team work methods may differ from those of the organization
• Teams may fail to communicate lessons learned
• Discipline-specific competence may suffer

Matrix Organization
• Project manager and functional manager share authority
• Team members report to both managers
• Combination:
• task focus  projectized organization
• technical capability  functional organization

Matrix Organization

ADVANTAGES
• Shared resources between departments and projects
• Reduced duplication
• Cooperation between departments
• High-quality decisions are well received
• Continued development of discipline specific knowledge
• Effective integration
• Lessons learned shared effectively
• Flexibility – weak, balanced, or strong matrix

DISADVANTAGES
• Each employee has two “bosses”
• More sources of conflict
• More meetings
• More challenges to control

Progression of Organizational Form
Functional Manager Who has power? Project Manager

Organizational Structure Comparison

The Project Management Office (PMO)
• The Manager of Project Managers may head a PMO
• Intermediary between Project Managers and the President
• Most common in matrix organizations, but any organization can have one

360-Degree Performance Reviews

Organizational Culture and Its Impact on Projects
 Shared values, social rituals, and symbols
 Implemented through rituals
◦ Meetings, training, ceremonies
 Implemented through symbols
◦ Work layout, dress code
“Values serve as a moral compass to guide us and provide a frame of reference to set
priorities and determine right or wrong.” Craig Johnson

Organizational Culture and Its Impact on Projects
• Motivate ethical actions and
communications
• Determine how people are
treated, controlled, and
rewarded
• Establish how cooperation,
competition, conflict, &
decision making are handled
• Encourage personal
commitment to the
organization

Culture of the Parent Organization
• What is the corporate culture in general?
• What are the ascribed values?
• Are there standard project management practices and policies?
• How is the organization viewed by others in terms of living the values?
• How does the organization communicate?
• How does the organization support project management?
A successful project manager needs to understand the organizational culture.

Types of Power
• Power culture – formal authority
• Role culture
• Task culture
• Personal culture
Everyone tries to please “the boss”
Everyone follows designated roles
Getting the job done is most important
Interest in worker development/needs

Breakout session!
Share an example of each of the four types of organizational
cultures:
1. Power
2. Role
3. Task
4. Personal

Midland Insurance Company Values

Project Cultural Norms
• Act ethically in the best interests of the project, the project team, other project
stakeholders
• Project manager behaviors (from PMI Code of Ethics & Professional Conduct)
• Responsibility
• Respect
• Fairness
• Honesty
Own decisions
Ourselves, others, resources
Impartial
Truth

Project Cultural Norms
• Impacted by parent organization’s culture
• Influenced by sponsor and project manager
• An ethical culture both defines how people should act and encourages them to
actually do so—especially in challenging circumstances

Project Life Cycle Common Characteristics
• Definite starting and ending points
• Phases must be completed & approved before proceeding to the next phase
• Initiating, planning, executing (one or more), closing
• Organizations adapt life cycle models to fit organizational culture

Generic Project Life Cycle Model

Define-Measure-Analyze-Improve-Control (DMAIC) Model
Quality & productivity improvement

Research and Development (R&D) Project Life Cycle Model

Construction Project Life Cycle
Can vary in size and complexity

Short planning bursts; delivery of benefits in increments
SCRUM
XP
EVO
Phased
delivery
Rapid
prototyping evolutionary
Agile Project Life Cycle Model
Crystal

Agile Project Management
• A change-driven approach
• Popular with projects whose scope is difficult to define early on
• Initial project planning at a high level
• Project work is conducted in iterations (sprints)
• Change occurs from one iteration to the next
• Documentation becomes progressively more complete
• Collaborative vs. confrontational roles

The Agile Mindset
1. Satisfy customers by emphasizing outputs that fulfill their needs
2. Engage participants through empowerment, cooperation, & knowledge sharing
3. Facilitate engagement through servant leadership & continual communication
4. Keep things simple with sustainable pace and emphasis on process
improvement

Key Roles in Agile Projects
 Customer Representative/product owner is similar to sponsor
 Scrum master—similar to traditional project manager, but more empowering
 Team members—full-time, co-located, self-governing

How do you start an Agile Project?
• Use same chartering process as on a traditional project
• Involve product owner, scrum master, & empowered team
• First iteration determines product to be built & prioritizes work for next iteration

How do you continue an Agile project?
Use 4 types of meetings (“ceremonies”):
1. Iteration planning meetings
Product owner shares expectations/acceptance criteria & team commits to how
much output it can deliver in iteration
May include backlog grooming, or re-prioritizing the work
2. Daily stand-up meetings
15 minutes, first thing in the morning
Members share previous day’s accomplishments, today’s plans, & any issues
3. Demonstration meetings
Held at least 1x per iteration to show usable product
4. Retrospective meetings
Held at end of each iteration to share what worked well & what could be improved

What is needed for Agile to be successful?
• Experienced, motivated team members
• Committed product owner (a.k.a. “customer”)
• Trust between and among client and project team

Traditional Project Roles
A successful PM understands all roles involved in his or her project!

Traditional Project Executive Roles
• Steering Team (ST)
• Sponsor
• Customer
• Chief Projects Officer (CPO)

Steering Team
• Top person in the organization and his/her direct reports
• Represent all of the major functions of the organization
• May be multiple steering teams
Executive
team
Management
team
Leadership team
Operating team
Also known as…

Steering Team Activities
• Overall priority setting
• Project selection and prioritization
• Sponsor selection
• General guidance – at set times or at project milestones
• Offer encouragement

Sponsor
• Major stake in the project outcome
• May be a member of the steering team
• Pick the project manager and core team
• Mentor the project manager
• Active role in chartering the project
• Share their vision of the project
• Financial & decision-making authority

Sponsor Ensures Performance of Customer-Related Tasks
• All customers (stakeholders) have been identified.
• Customer desires are uncovered and prioritized.
• Project delivers what the customers need.
• Customers accept the project deliverables.

Sponsor Responsibilities by Stage

Breakout session!
How will you help your sponsor understand and perform
his/her required role during each of these stages?
1. Initiating
2. Planning
3. Executing
4. Closing

Customer (some of these tasks may be handled by sponsor)
What does a customer need to do to ensure the desired results?

Customer – Independent Tasks
• Communicate which project is of the highest priority as well as the highest
priorities within each project
• Select a competent and honest contractor
• Decide when to stop funding a poorly performing project

Customer – Joint Tasks with Contractor (Project Manager)
• Write & sign charter
• Determine and communicate clear requirements
• Customer works with PM to ensure
• Effective communications
• Change management system
• Risk management system
• Plan and participate in project kickoff meeting

Chief Projects Officer/ Project Management Office (PMO)
• “Owns” the organizations project management system
• Role varies with organization size
• Ensures projects are planned and managed well
• Ensures steering team tasks accomplished
• Ensures functions of individuals

PMO Monitors these Steering Team Responsibilities:
• Identify potential projects
• Select manageable set of projects
• Prioritize projects
• Ensure resources
• Select sponsors and teams
• Charter project teams
• Monitor & control project implementation
• Reward participants
• Enjoy results of successful projects!

PMO Monitors these Team Member Responsibilities:
• Receive necessary training
• Capture lessons learned
• Use lessons learned on new projects
• Use templates and standards where appropriate

Traditional Project Management-level Roles
• Functional Manager
• Project Manager
• Facilitator

Functional Managers
• May be department heads
• Large role in deciding how project work is done
• Negotiate with PMs to assign members to project
• Balance of power between FMs and PMs varies by organization

Project Manager
• Focal point of the project
• Spends great deal of time communicating
• Leads the planning, executing, and closing of the project
• Responsible for the project schedule
• Responsible for delivering project results

Desired Project Manager Behaviors/Skills
• Demonstrates integrity
• Effective communicator
• People-oriented – facilitating but forceful when necessary
• Effective integrator
• Effective scheduler
• Handles project scope
• Achieves desired project quality
• Identifies and deals with project risks and opportunities
• Effectively procures project goods and services
• Maintains cost control
*See Exhibit 4.17

Project Manager Communication Channels
Spokes represent communication channels through the project manager hub

Project Manager Challenges
• More responsibility than authority
• Must determine how networks function within certain organizational
cultures

Project Manager Judgment Calls

Breakout session!
Describe—as specifically as possible—one or more of the
behaviors, judgment calls, and/or competencies discussed in
Exhibits 4.17, 4.19, & 4.20

Facilitator
• Required when a situation is complex and/or opinions are varied
• An outside party OR disinterested sponsor or project manager
• May be the chief projects officer
• May be a consultant

Traditional Project Associate level (Team) Roles
Subject matter experts (SMEs)
Core team members

Core Team Members
• Start to finish
• Make decisions
• Carry out project activities
• Represent project stakeholders
• Understands project technologies
• Main concern is completing the project
• May supervise the Subject Matter Experts (SMEs)

Subject Matter Experts (SMEs)
• Meet specific, temporary project needs
• Chosen for their specific expertise
• Extended team members

Role Differences on Agile Projects
One of the most important roles, the Customer, has both Executive and Managerial-level duties

Customer/Product Owner
• Responsible for Return on Investment earned by project
• Accepts or rejects deliverables at every iteration
• Ensures stakeholders’ needs and wants are identified and prioritized
• Works continuously with the project team

Scrum Master
• PM who serves in collaborative, facilitating role
• Guides team in prioritizing tasks & removing obstacles
• More limited yet more empowering role than traditional PM

Role Differences on Agile Teams
Self-directed
Co-located
Assigned full time for project iteration
1. Team members
1. Coach—often included to act as
trainer and facilitator
1. Portfolio team—does much of the
work of a Traditional Steering team

Summary
• Every organization structure has advantages and disadvantages.
• Many organizations have informal matrix relationships.
• Organizational culture = formal and informal way people relate to each other.
• Projects follow a predictable project life cycle.
• Projects require executive-, managerial-, and associate-level roles.
• The project manager has a central role in project development.

PMBOK Exams
• Know thoroughly the PMI Project Management Code of Ethics & Professional
Conduct pmi.org/-/media/pmi/documents/public/pdf/ethics/pmi-code-of-
ethics.pdf?la=en
• Even though project lifecycles vary from field to field, you will need to have a
thorough understanding of the generic 5 process groups: Initiation, Planning,
Executing, Monitoring & Controlling, and Closing.
• Inputs & outputs to each process
• How processes interact with one another
• Which of the 10 knowledge areas each process belongs to

Project Leadership Roles at TriHealth
• TriHealth manages hospitals and other health organizations
• Leadership decided to formally define leadership roles:
• Project executive sponsor
• Project leader
• Performance improvement consultant
• Core team member
• Subject matter expert
PM IN ACTION

Casa de Paz Development Project
• Casa de Paz organizational culture and PMI Code of Conduct both stress
responsibility, respect, fairness and honesty. How are they similar and different?
• The board, working groups, and projects are linked by sposor (product owner),
project manager (scrum master) and other roles.
• Agile approach is needed as many decisions still need to be made.

Chapter 4-Organizational Capability Structure, Culture, and Roles.pptx

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