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Project Organizations - Project-Oriented

Hello again. So far, we've discussed a functional, a weak matrix, a Balance Matrix and a strong matrix approach to organizing our project. We've moved along a path of increasing authority for the project manager. What's next? The next place along the path of increasing Project Management Authority, is a project based organization. This is called a Project-Orient Organization by the Project Management Institute, and many times called a task force organization in the industry. The Project-Orient organization is the strong Matrix organization turned on its side. It's sometimes called a task force organization because all the project members are put on a single task force in a common area. We find these types of organizations, in either project based companies such as construction companies or engineering firms which project is in essence a function, or alternately, within a special division or function of an owner company that does many large projects. In this case the company is completing many large projects and believes there is an advantage to having a professional staff of project managers. In this type of organization, most of the team and all of the key staff members are dedicated to the project. Staff members are removed from their functions and assigned to the project team on a full time basis. The project manager becomes their manager and the project is a prime reporting line. Typically the functions matrix enter the project from the side and administer the resources on the project. They also provide advice on the technical aspects of the project and review the deliverables for compliance with organizational and industry standards. In this organization type, the functional managers have some level of responsibility to make sure the work is done correctly, but limited input on how and when it's done. The project manager has final authority and responsibility on project scope, schedule, budget quality and technical content. What we're showing is an idealized approach to a project based organization. In reality many times a project based organization works as a hybrid between the strong matrix, and the Project-Oriented organization with most resources dedicated in reporting to the project manager with some still in their functions and loan that the project as required. The Project-Oriented organization addresses many of the weaknesses of the Matrix and functional organization approaches. However, in doing so, it also has to let go of many of the strengths. Play video starting at 2 minutes 58 seconds and follow transcript2:58 The clear advantage of the Project-Oriented organization approach is the clear line of authority and the single point of responsibility for delivering the project. The dedicated staff provide flexibility in scheduling, and reacting to changes as the project manager is in position to control the number of staff as well as their priorities. The single point of control in the dedicated staff provide the sharpest level of customer focus. In many cases, the project will match staff members with their counterparts in the customer organization to increase communication and focus. With its dedicated staff and sharp focus on the project. This organization's style offers the best reports and control mechanisms. All of this sounds great if you're the project manager. Why wouldn't you always want this approach? Well, all of these benefits come with a cost. In a project-Based organization resource use is less efficient. Staff is dedicated, and when they're waiting for information or need additional help, they don't have the other functional resources to fall back on. They must go out and seek the expertise they need to finish their work, and this takes additional time and effort. In a project-Based approach each project becomes a separate function or silo. This means there's less interaction with the functional expertise in their own departments, and less interaction among projects. Because the staff is somewhat isolated from their function, the technical oversight of the project by the functions is weaker. This can lead to quality issues or project deliverables that don't meet organizational standards, if proper care is not taken. And finally, into the project the dedicated staff must be reintegrated back into their organizations. If the organization is growing this is typically not an issue. However, in tough times, the positions may not be available and reintegration becomes an issue. To summarize there are three major groups of project organizations that most projects use;Functions-Based organization, a matrix or hybrid organization, and a full project oriented or task force organization. Each has its place and generally the strength of the projects and the project managers' influence grow stronger, as we move from a functional organization to a weak matrix to a balance matrix to a strong matrix and ultimately, to a project-Based organization.