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Organizing For Projects: Monique Aubry

This document discusses organizing for projects within organizations. It introduces the concept of a project function, which includes four main components: the dynamic relationship with organizational strategy; governance; structure; and processes and tools. The project function framework aims to provide an overview of how to organize for managing multiple concurrent projects. Key aspects include aligning the project function with organizational strategy, establishing appropriate governance structures, and coordinating tasks and mechanisms throughout the organization.

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43 views3 pages

Organizing For Projects: Monique Aubry

This document discusses organizing for projects within organizations. It introduces the concept of a project function, which includes four main components: the dynamic relationship with organizational strategy; governance; structure; and processes and tools. The project function framework aims to provide an overview of how to organize for managing multiple concurrent projects. Key aspects include aligning the project function with organizational strategy, establishing appropriate governance structures, and coordinating tasks and mechanisms throughout the organization.

Uploaded by

chinedu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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13

Organizing for Projects


chapter

Monique Aubry

Managing multiple, concurrent projects poses major challenges for organizations. Because
projects are temporary endeavors, their management differs significantly from that of
regular operations. More often than not, both types of activities – operations and projects –
are undertaken concurrently. The ability of organizations to operate simultaneously in
two complementary fields is frequently referred to as ‘ambidexterity’: the exploration of
new ways of doing things and the exploitation of what we already know (March, 1991).
This applies to every type of organization, whether project-based or project-oriented.
There is no single and perfect solution to these challenges when it is time to make a
decision on the organizational design to succeed in the management of multiple
concurrent projects. Context is a prime consideration whether in terms of the external
or internal environment. Acknowledging organizational history also helps identify the
strengths to build upon and the best solution for anticipating future challenges. The
notion of fit best captures the alignment between the resulting project function within
the organization as a whole.
Organizing for projects also involves a dynamic process of organizational
transformation, considering that today’s organizations and their surrounding environments
change frequently. Organizing for projects not only involves implementing the best
processes, tools and practices, it also implies a major organizational transformation that
generates different ways of thinking about work, structure and practices. It often requires
a transition from a hierarchical approach to an organic and dynamic way of working.
This occurs pervasively, at all levels. To address the issue of organizing for projects in a
more holistic way, one needs to go over the matrix structure approach in order to account
for multiple other components. Combined, these components form what we can call the
project function (Aubry et al, 2012).
This chapter aims to present an overview of organizing for projects based on the
project function framework. After introducing the project function framework, we
will discuss each of its components: dynamic relation with the organizational strategy,
governance, structure and processes and tools. The major implications are then presented
to shed light on the multidimensional aspects of organizing for projects to be taken into
consideration. Lastly, the conclusion focuses on the people aspects of project organization.
206 G o w e r H a n d b o o k o f P r o j e c t M a n a g e m e n t

The Project Function


Within an organization, a function can be defined in two ways (Mintzberg, 1979):

1. The sum of the means used by an organization to divide work;


2. The mechanisms used to coordinate these tasks.

The structure of an organization often reflects its different functions that is, business
units, functional units, regional units and so on. Nowadays, organizations frequently
adopt a multi-dimensional structure to place the customer at the core of their concerns
(Galbraith, 2010). Essentially, a definition of the project function must answer these two
questions:

• What tasks are involved in the management of multiple projects?


• What mechanisms are used to coordinate them?

The unique feature of the project function is that tasks and coordination mechanisms are
widespread throughout the organization.
Figure 13.1 illustrates the four main components of the project function and its
dynamic relationship to strategy:

• Dynamic relation to the organizational strategy;


• Governance;
• Structure;
• Processes and tools.

Each component involves decisions that drive the overall approach to managing multiple,
concurrent projects.

Figure 13.1 The project function


O r g a n i z i n g f o r P r o j e c t s 207

Dynamic Relationship to Organizational Strategy

Strategy formulation in organizations does not suffice per se to secure the benefits
it is expected to produce. Strategy implementation is mandatory and occurs through
a portfolio of programs and projects that become the means for putting the strategy
into action (Morris and Jamieson, 2004). The dynamic relationship between strategy
and projects has two complementary components. First, in the changing world we now
live in, a planned strategy must be continuously reviewed to account for changes in the
environment or to take advantage of new situations giving rise to an emergent strategy.
Programs and projects should then be adapted to emergent aspects of the strategy within
a dynamic process. Second, programs and projects should not only be considered the
consequences of strategy, the knowledge developed through programs and projects
should help shape strategy. Moreover, the term ‘strategizing-structuring’ has been
coined to describe the dynamic relationship between strategy and structure (Pettigrew
et al., 2003). Organizational strategy and structure co-evolve in dynamic environments.
Acknowledging this helps account for the frequent changes made to project structures to
support and enhance organizational strategy.

Governance

The objective of this chapter is not to examine the governance field in detail. That is
described in Chapter 30. However, governance structure forms part of the project
structuring process. Governance must therefore be considered within the overall
governance approach to ensure that appropriate structures and mechanisms are
established in an efficient way. Yet providing organizational structures to deliver projects
is not enough to ensure a close connection between strategy and projects, programs and
portfolios. Proper structures are necessary in a project-based organization to support
project, program and portfolio governance in line with corporate governance. In large
organizations, an impressive number of entities may be involved in governance at various
levels. If governance mechanisms are not organized, they could develop into widespread,
invisible networks that may not always conform to the organizational strategy. Müller
(2009) suggested a project governance hierarchy model that connects all levels within a
top-down governance structure. In reality, concurrent governance entities may coexist
for projects, programs and portfolio. Care should be taken to identify and position these
entities with clear roles and responsibilities to avoid confusion, duplication and hyper-
control (Figure 13.2).
This example provides a simplified view of the governance structures in a large,
project-based organization. Steering committees exist at four levels (shown in grey in
Figure 13.2):

• Corporate project portfolio steering committee;


• Portfolio steering groups for business unit portfolio (A) and functional unit portfolio
(B);
• Programs steering groups for the program A in direction A, and for the program B in
direction B;
• Project A steering group.

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