Organization

Structure
Org. Structure
• Represents the management hierarchy:
• Reporting relationships who report to whom
• The official chain of control or authority, which deals of official activities, such as firing,
hiring, and promotion etc.
• Organization can be grouped into major subdivisions on the
basis of
• Responsibilities & type of work for each subdivision
• Official lines of authority, hierarchy & communication
• The PM’s work, however, is strongly affected by the project’s
position in the organizational structure, and the PM should
understand its workings.
Features of an Organization Structure
• Hierarchy:
The hierarchy should delineate a clear line of authority and define decision-making
responsibilities.
• Division of Labor:
This refers to the workload (managerial, task oriented, etc.) associated with the roles.
• Span of Control:
Here, define who manages whom. Reporting structures will be based on this concept.
• Position Type (Line vs. Staff):
A line position is a team member who is directly involved with the product. A staff
position supports those in line positions, but are not directly involved with the product.
• Centralization:
This defines how the decision making occurs. In a centralized project, few people own
decisions, whereas in a decentralized project, decision-making authority is distributed
across the organization.
Types
• Best depends on goals, type of work it supposed to do, and the
environment within which it operates.
Functional organization
Project organization
Matrix organization
• No two projects are alike, hence no organizational structure will be
exactly the same.
• The role of the project manager changes within each of these
frameworks, and each project’s organizational structure is highly
nuanced.
• Understanding the vertical or horizontal coordination of each
framework and the role that the project manager will hold can help
develop a successful strategy.
 Functional Organizational
Structure

• A functional project org.

structure organizes its hierarchy
around traditionally functioning
departments.
• A functional manager heads
each department and reports to
an executive.
• These functional managers —
not other staff — coordinate the
project, and they select team
members from each department
to support the project, in addition
to their functional responsibilities.
 Functional Org. Structure
Management Priorities for a Project
Project Pros Project Cons
Manager
Optimal Resources: Resources are Missing the Right People: Projects PM Authority: Low
not in competition with other areas, may need additional specialists if they
which leaves little need for do not have all the right people within
competition or negotiation. the area.
Familiarity: Team members are Competing Priorities of Team: Team Communication Facilitation: Break
already familiar with each other and members may feel challenged to down silos across departments.
share similar skills and functions. balance competing priorities of Coordination: Engage cross-
program responsibilities and project functional teams.
responsibilities. Teamwork Emphasis: Engage teams
outside of their department.
Operational Efficiency: Has the Siloed: This structure often creates Continuous Goal Clarity: Keep
potential to achieve greatest organizational silos, which can make project goals at the forefront in
operational efficiency due to the role strategic alignment challenging. competition with departmental goals
and communication clarity. distracting the project.
 Project Based Org. Structure
• A projectized or project-based
organizational structure creates
a dedicated project division
within an organization.
• The project coordination
operates vertically under this
division.
• Project managers maintain sole
authority for the project and are
assigned dedicated staff who
work toward project goals.
Project Based Org. Structure
Management Priorities for a
Project Pros Project Cons
Project Manager
Authority: Resource Duplication: PM Authority: High
The project manager owns all Resources may not be optimized
project decision making. and can be costly, due to the
doubling of resources across
multiple projects.
Clarity: Stunted Team Growth: Role Responsibility: Live up to the
Project alignment, lines, goals, and Teams can be siloed, binding the trust and leadership that comes with
strategy are clear across the team. team members to one project at a full authority and ownership of the
time and limiting their growth. project.
Maintain Team Morale: Build
team trust and keep the team
moving to meet tight deadlines.
Communication: Building strong
communication networks across
projects is essential in reducing the
duplication of efforts.
 Matrix Org. Structure
• A matrix organizational structure is set up on a grid to
demonstrate staff reporting patterns to more than one
authority.
• It is a hybrid of functional and projectized organizational
structures, and project managers share authority with
other program managers in this structure.
• Depending on the decision-making capacity of the project
manager, a matrix structure is one of three subtypes:
weak,
balanced,
strong.
 Weak Matrix Org. Structure
• A weak structure is similar to the
functional organization structure,
in which coordination occurs
horizontally among staff without
a designated project manager.
• The primary difference between
a weak matrix and a functional
structure is that the staff across
departments, rather than the
functional managers, coordinate
the project (but the functional
manager maintains decision-
making authority).
 Balanced Matrix Org. Structure
• In a balanced matrix, the
project manager also holds a
staff position and does not
utilize the project manager role
to its full capacity.
• The project manager still has
little authority over project
decisions, budget, staff, etc.,
and primarily serves as the
point of contact and
coordinator.
 Strong Matrix Org. Structure
• A strong matrix is most similar to a projectized organizational structure.
• In it, a dedicated project manager falls under a functional project
management department, has dedicated cross-functional staff, and is
supported by a manager of all the project managers.
• This subtype offers the project manager the most authority as they work
across a matrixed environment.
Project Based Org. Structure
Management Priorities for a Project
Project Pros Project Cons
Manager
People Optimization: Leverages each Costs: Administrative costs are higher, due PM Authority: Medium
specialist’s skill set across multiple to the operational complexity of the
projects. reporting relationships.
Flexibility: Employees can work across Workload Miscommunication: There is a Influencing and Negotiation Skills:
departmental units without being bound greater potential for misunderstanding a Navigate limited authority with other
to one. team's workload, given that they report both program managers and interactions with
to a project manager and a department the project team members.
manager.
Project Control: Strong coordination Increased Conflict: Shared authority among Servant Leadership: Focus on building
among team members eases managers potentially creates confusion on deep collaboration and communication
communication and information roles. with the team, and continuously monitor
boundaries. the division of labor.
Team Recognition: Acknowledge the
team comes from multiple parts of the
organization. Take time for team
building and engagement opportunities.
Project Charter / project
proposal
• The project charter is the document issued by the project initiator or sponsor that formally
authorizes the existence of a project and provides the project manager with the authority to apply
organizational resources to project activities.

• The project team uses the project charter as a starting point for initial project planning.
• The type and amount of information in the project charter varies depending on the complexity of
the project and the information known at the time of its creation.
• At a minimum, the project charter should define the high-level information about the project that
will be elaborated in the various components of the project management plan.
• The project charter documents the project success criteria, the approval requirements, and who will
sign off on the project.

• At a high level, the project charter ensures a common understanding by the stakeholders of the key
deliverables, milestones, and the roles and responsibilities of everyone involved in the project.
 Project charter
It documents the high-level information on the project and on the product, service, or
result the project is intended to satisfy, such as:

• Purpose
 This is a short summary directed to top management and those unfamiliar with the project.
 It contains a statement of the general goals of the project and a brief explanation of their relationship to
the firm’s objectives.
 It includes not only market opportunities and profit potentials but also the needs of the organization, any
customer requests for proposals, technological advancement opportunities, and regulatory,
environmental, and social considerations.
 A properly drafted Project charter should briefly provide the financial and strategic justification for the
project.
• Objectives
 This contains a more detailed statement of the general and ancillary goals of the project and their
priorities, what constitutes success, and how the project will be closed out.
 The statement should include measurable objectives such as profit and competitive aims as well as
technical goals.
 Project charter
• Overview
 This section provides a high-level description of the project and its requirements.
 Both the managerial and the technical approaches to the work are also described.
 The technical discussion describes the relationship of the project to available technologies. For
example, it might note that this project is an extension of work done by the company for an
earlier project.
 The subsection on the managerial approach takes note of any deviation from routine
procedure—for instance, the use of subcontractors for some parts of the work. Also included
here is the procedures for changes in the project, including scope, budget, and schedule.
• Schedules
 This section outlines the various schedules and lists all milestone events and/or phase-gates.
 Each summary (major) task is listed, with the estimated time obtained from those who will do
the work.
 The projected baseline schedule is constructed from these inputs.
 The responsible person or department head should sign off on the final, agreed-on schedule.
 Project charter
• Resources There are three primary aspects to this section.
 The first is the budget, both capital and expense requirements are detailed by task, which makes this a
project budget, with one-time costs separated from recurring project costs.
 Second is a complete list and description of all contractual items such as customer-supplied resources,
liaison arrangements, project review and cancellation procedures, proprietary requirements,
purchasing/procurement contracts, any specific management agreements (e.g., use of subcontractors), as
well as the technical deliverables and their specifications, delivery schedules, and a specific procedure
for changing any of the above.
 Third is the set of cost monitoring and control procedures. In addition to the usual routine elements, the
monitoring and control procedures must also include any special resource requirements for the project
such as special machines, test equipment, laboratory usage or construction, logistics, field facilities, and
special materials. Finally, any constraints on the above should also be noted here.
• Stakeholders This section lists the key stakeholders.
 Besides the client, community, and other external stakeholders, the section also lists the expected
personnel requirements of the project, especially the PM, project owner, and project sponsor.
 In addition, any special skill requirements, training needed, possible recruiting problems, legal or policy
restrictions on work force composition, and security clearances should be noted here.
 This makes clear when the various types of contributors are needed and in what numbers.
 These projections are an important element of the budget, so the personnel, schedule, and resources
sections can be cross-checked with one another to ensure consistency.
 Project charter
• Risk Management Plans
 At a high-level, this covers potential problems as well as potential lucky breaks that could affect the
project.
 One or more issues such as subcontractor default, unexpected technical breakthroughs, strikes,
hurricanes, new markets for the technology, and sudden moves by a competitor are certain to occur—the
only uncertainties are which, when, and their impact.
 In fact, the timing of these disasters and benefits is not random, Plans to deal with favorable or
unfavorable contingencies should be developed early in the project’s life.
 In high-risk projects better project planning improved success on four measures: schedule overrun, cost
overrun, technical performance, and customer satisfaction
• Evaluation Methods
 Every project should be evaluated against standards and by methods established at the project’s
inception, allowing for both the direct and ancillary goals of the project.
 This section contains a brief description of the procedures to be followed in monitoring, collecting,
storing, auditing, and evaluating the project, as well as in the post-project evaluation following project
termination.
 Project Scope Statement
• The scope of a project is the sum of all the work that needs to
be executed.
• A project scope statement helps project managers define the
boundaries of what will and what won’t be done.
• A scope statement is a document that defines all the elements
of the project scope as well as assumptions, project
requirements and acceptance criteria.
• The project scope statement will act as the primary tool for
stakeholders and teammates to reference and use as a
guideline to accurately measure project success.
 To write a Project Scope Statement
• Project Goals & Objectives
 It define the purpose of a project. Project objectives are the smaller steps that lead to the
project goals, which are broader.
 Start your project scope document by explaining them. These goals and objectives should be
documented in a project charter, too.
• Project Requirements
 Project managers and stakeholders must reach an agreement about the project scope and other
project requirements such as the expected quality, risk, benefits and cost, among others.
• Project Scope Description
 Define project scope, which is all the work that needs to be done to complete the project.
 Use a work breakdown structure to visualize all your project tasks, deliverables, and
milestones.
 List what’s within the scope of your project, and what’s out of scope. Everything that’s not
included in the project scope is known as project exclusions.
 Identify project constraints, which are all the limitations such as time or cost.
 Create a scope baseline to compare actual progress to the planned project scope.
 Project exclusions and constraints are essential because they help establish boundaries for the
project to exist. They also manage stakeholders’ expectations/input and give project team
members some creative limitations to work within.
 To write a Project Scope Statement
1. Project Goals & Objectives
 It define the purpose of a project. Project objectives are the smaller steps that lead to the
project goals, which are broader.
 Start your project scope document by explaining them. These goals and objectives should be
documented in a project charter, too.
2. Project Requirements
 Project managers and stakeholders must reach an agreement about the project scope and other
project requirements such as the expected quality, risk, benefits and cost, among others.
3. Project Scope Description
 Define project scope, which is all the work that needs to be done to complete the project.
 Use a work breakdown structure to visualize all your project tasks, deliverables, and
milestones.
 List what’s within the scope of your project, and what’s out of scope. Everything that’s not
included in the project scope is known as project exclusions.
 Identify project constraints, which are all the limitations such as time or cost.
 Create a scope baseline to compare actual progress to the planned project scope.
 Project exclusions and constraints are essential because they help establish boundaries for the
project to exist. They also manage stakeholders’ expectations/input and give project team
members some creative limitations to work within.
 To write a Project Scope Statement
4. Project Exclusions
It is imperative to define the boundaries around what the project includes from
the outset, and to list what this project doesn’t include.
For example: Application updates that are planned for a later project and are
intentionally not included in this project or Restricted or rescheduled customer
access to certain support lines/product features.
5. Project Constraints
The top three constraints to managing any project are typically time, money
and scope, known as the triple constraint of project management.
But there are additional project constraints that can crop up at any time,
including risk, resources, organization, method, customers and more.
List all the constraints in your project, to have solutions in place ready to
launch when needed.
 To write a Project Scope Statement
6. Project Assumptions
It revolves around the constraints, including time, money and scope.
For example, “the front-end development team will be available during this
project time period,” or, “the customer support team will receive new product
training by x time.”
When assumptions are listed out it will inform key stakeholders about the
PM’s primary resource needs to make the project go, and gives insight to
biggest risk factors of project.
7. Project Deliverables
The deliverables’ list informs team members what they need to produce to
meet business objectives.
This can include the product itself, instruction and installation manuals,
marketing materials, press releases, advertising campaigns and more.
Work Break down Structure
• A work breakdown structure (WBS) is a visual, hierarchical and deliverable-oriented
deconstruction of a project.
• It is a helpful diagram for project managers because it allows them to break down their
project scope and visualize all the tasks required to complete their projects.
• All the steps of project work are outlined in the work breakdown structure chart, which
makes it an essential project planning tool.
• The final project deliverable, as well as the tasks and work packages associated with it
rest on top of the WBS diagram, and the WBS levels below subdivide the project scope to
indicate the tasks, deliverables and work packages that are needed to complete the project
from start to finish.
• Project managers make use of project management software to lay out and execute a work
breakdown structure.
• When used in combination with a Gantt chart that incorporates WBS levels and task
hierarchies, project management software can be especially effective for planning,
scheduling and executing projects.
 Work Break down Structure
• Making a WBS is the first step in developing a project
schedule.
• It defines all the work that needs to be completed and,
in the order, to achieve the project goals and
objectives.
• It also helps in resources allocation and one stop view
of project.
• A well-constructed work breakdown structure helps in
areas such as:
 Project Planning, Project Scheduling and Project
Budgeting
 Risk Management, Resource Management, Task
Management and Team Management
• In addition, a WBS helps avoid common project
management issues such as missed deadlines, scope
creep and cost overrun, among others.
• In other words, a work breakdown structure serves as
your map through complicated projects.
WBS example, to lay down the work plan for a
commercial building construction project.