The document discusses project life cycles and project management organizations. It describes how projects typically progress through initiation, planning, execution, and closure phases. Project life cycles can range from predictive to iterative to adaptive approaches. Organizational influences on projects include culture, governance frameworks, management structures, and maturity. Common organizational structures for managing projects are functional, projectized, weak matrix, balanced matrix, and strong matrix. These each have advantages and disadvantages for coordinating resources and balancing functional versus project responsibilities.

1. Project Life Cycle and
Project Management Organization
Dr. Huy Nguyen

2. Project Life Cycle
• The project life cycle is the agglomeration of all phases in the project:
– All projects are divided into phases, and all projects, large or small, have
a similar life cycle structure: Starting the project, organizing and preparing,
carrying out the project work, and closing the project.
– At a minimum, project will have a beginning or initiation phase, an
intermediate phase or phases, and an ending phase.
• Each phase has a defined endpoint.
• Examples:
– Construction: Feasibility  Planning  Design  Production 
Turnover  Startup
– IT project: Requirement  Design  Program  Test  Implement
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3. Project Life Cycle (cont.)
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4. Project Life Cycle (Simple vs Multiple)
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5. Project Life Cycle (Predictive vs. Adaptive vs. Iterative)
• Project life cycles can range along a continuum from predictive or plan-driven
approaches at one end to adaptive or change-driven approaches at the other.
– Predictive: The project scope, and the time and cost required to deliver
that scope, are determined as early in the project life cycle as practically
possible;
– Iterative: Project phases (also called iterations) intentionally repeat one or
more project activities as the project team’s understanding of the product
increases;
– Adaptive: The product is developed over multiple iterations and detailed
scope is defined for each iteration only as the iteration begins.
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6. Characteristics of Project Life Cycle
• Cost and staffing levels are low at the
start, peak as the work is carried out, and
drop rapidly as the project draws to a
close;
• Stakeholder influences, risk, and
uncertainty, are greatest at the start of
the project. These factors decrease over
the life of the project;
• Ability to influence the final
characteristics of the project’s product,
without significantly impacting cost, is
highest at the start of the project and
decreases as the project progresses
towards completion; or
• The cost of changes and correcting
errors typically increases substantially as
the project approaches completion.
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7. Project Phases and Project Life Cycle
• A project life cycle is a collection of project phases that defines:
– What work will be performed in each phase;
– What deliverables will be produced and when;
– Who is involved in each phase;
– How management will control and approve work produced in each phase.
• A deliverable is a product or service produced or provided as part of a project.
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8. Handoffs between Project Phases
• Project phases evolve through the life cycle in a series of phases
sequences called handoffs, or technical transfers. The end of one phase
sequence typically marks the beginning of the next.
• The completion of one phase does not automatically signals the beginning
of the next phase.
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9. Phase-to-Phase Relationships
• There are two basic types of phase-to-phase relationships:
– Sequential relationship: Where a phase can only start once the previous
phase is complete;
– Overlapping relationship: Where the phase starts prior to completion of
the previous one (fast tracking). Overlapping phase may increase risk and
can result in rework.
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10. Organizational Influences
• Some organizational aspects that influence how project are performed:
– Culture and style (cultural norms);
– Organizational systems:
• Management elements,
• Governance frameworks, and
• Organizational structure types;
– Degree of project management maturity;
– Project management systems.
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11. Organizational Culture and Style
• Organizational culture is shaped by the common experiences of members of
the organization and most organizations have developed unique cultures over
time by practice and common usage.
• Typical aspects of organizational culture:
– Shared visions, mission, values, beliefs, and expectations;
– Regulations, policies, methods, and procedures;
– Motivation and reward systems;
– Risk tolerance;
– View of leadership, hierarchy, and authority relationships;
– Code of conduct, work ethic, and work hours;
– Operating environments.
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12. Organization as a System
• A system is a collection of various components that together can produce
results not obtainable by the individual components alone.
• A component is an identifiable element within the project or organization that
provides a particular function or group of related functions.
• The interaction of the various system components creates the organizational
culture and capabilities.
• There are several principles regarding systems:
– Systems are dynamic;
– Systems can be optimized;
– System components can be optimized;
– Systems and their components cannot be optimized at the same time, and
– Systems are nonlinear in responsiveness.
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13. Governance Framework
• Governance refers to organizational or structural arrangements at all levels of
an organization designed to determine and influence the behavior of the
organization’s members.
• Governance is multidimensional and:
– Includes consideration of people, roles, structures, and policies; and
– Requires providing direction and oversight through data and feedback.
• Governance framework includes:
– Rules, policies, procedures, norms,
– Relationships, systems, and processes.
• This framework influences how:
– Objectives of the organization are set and achieved;
– Risk is monitored and assessed; and
– Performance is optimized.
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14. Management Elements
• Management elements are the components that comprise the key functions or principles
of general management in the organization.
• The general management elements are allocated within the organization according to its
governance framework and the organizational structure type selected.
• The key functions or principles of management include but are not limited to:
– Division of work using specialized skills and availability to perform work;
– Authority given to perform work;
– Responsibility to perform work appropriately assigned based on such attributes as skill and
experience;
– Discipline of action; unity of command and direction;
– General goals of the organization take precedence over individual goals;
– Paid fairly for work performed; optimal use of resources;
– Clear communication channels;
– Right materials to the right person for the right job at the right time;
– Fair and equal treatment of people in the workplace;
– Clear security of work positions; safety of people in the workplace;
– Open contribution to planning and execution by each person; and optimal morale.
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15. Types of Organizational Structures
• Factors to consider in selecting an organizational structure include but are not
limited to:
– Degree of alignment with organizational objectives;
– Specialization capabilities;
– Span of control, efficiency, and effectiveness;
– Clear path for escalation of decisions;
– Clear line and scope of authority;
– Delegation capabilities;
– Accountability assignment;
– Responsibility assignment;
– Adaptability of design;
– Simplicity of design;
– Efficiency of performance;
– Cost considerations;
– Physical locations; and
– Clear communication.
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16. Types of Organizational Structures
Functional:
• Organization is grouped by
areas of specialization;
• Project generally occur within
a single department.
Projectized:
• Entire company is organized
by projects;
• Personnel are assigned and
report to a project manager.
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17. Types of Organizational Structures (cont.)
Weak Matrix:
• Power rest with the
functional manager;
• Power of project
manager = coordinator
or expediter.
Balanced Matrix:
• Power is shared between
the project manager and
the functional manager.
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18. Types of Organizational Structures (cont.)
Strong Matrix:
• Power rest with the
project manager.
Composite:
• A combination of the
above structures;
• Support different
strategic objectives.
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19. Comparaison of Organizational Structures
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20. Comparaison of Organizational Structures
Advantages Disadvantages
Functional
•Easier management of specialists;
•Team members report to only one
supervisor;
•Similar resources are centralized, as the
company is grouped by specialties;
•Clearly defined career paths in areas of
work specialization.
•People place more emphasis on their
functional specialty to the detriment of the
project;
•No career path in project management
•The project manager has little or no
authority.
Projectized
•Efficient project organization;
•Loyalty to the project;
•More effective communication than
functional.
•No “home” when project is completed;
•Lack of professionalism in disciplines;
•Duplication of facilities and job functions;
•Less efficient use of resources.
Matrix
•Highly visible project objectives;
•Improved project manager control over
resources;
•More support from functional area;
•Maximum utilization of scarce resources;
•Better coordination.
•Extra administration is required;
•More than one boss for project teams;
•More complex to monitor and control;
•Tougher problems with resource
allocation;
•Need extensive policies and procedures.
• Advantages and disadvantages of organizational structures on projects:
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21. Thank You
Next topic:
Project Selection & Porfolio Management
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