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EuroProjex

Project and Programme Management


Session 4.1: Project Organization
Professor J Rodney Turner
Visiting Professor
Limerick University
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Project Organization
The problem of organizing
External organization
Internal organization
Responsibility charts
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The problem of organizing

Transforming a conflict (political) system into


a cooperative (rational) one
A conflict system
individual objectives not jointly consistent
organizes through exchanges between actors

A cooperative system
individuals act rationally towards a common

objective - goals aligned

Levitt and March 1995


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Aims of organizing

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Achieve cooperation
Share goals
Act rationally

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Achieving cooperation

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Crafting cooperation
Design of
Organization

Assumptions
about People

Shaping
Social Norms

Legitimization
of Behaviour

Common
Language

Desired
Behaviour

Delegitimization
of Others
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Crafting cooperation
Assumptions
Development
Cooperation
Trust

Practices & Processes


Self development
Coaching/mentoring
Enriching others

Legitimization
Friendship
Trust
Cooperation

Norms
Conversation
Cooperation
Development

Language
Trust
Communication
We not I
Behaviour

Delegitimization
SelfSelf-promotion
Competition
Aggressiveness
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Project, facility, product


Owner
Benefit/Purpose
Outcome

Benefit
Value to
Owner

Facility/Asset
Output

Price
Value to
Contractor

Project
Work

Cost

Contractor

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Owner contractor model


Owner

Objectives
Optimum solution
Value for money

Finance
Contract between
Owner and
Contractor

Sponsor

Resources

Results
Manager
Team Ldrs
Contractor

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between
parties involved

Objectives
Maximum profit
Satisfied client

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Two contracts

External
Organization

Planning and controlling


scope

Organizing & implementing


organization

Milestone Plan

Responsibility Chart

Specify results
throughout the project
Report on a copy
of the plan

Organization
Procedures
Priorities
Schedule

Activity schedule and progress report


Internal
Organization

Activity
list

Progress
report

Response
Chart

Bar
Chart

Contract
between project
management
and corporate
management
Contract
between project
participants

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Two decisions

External organization
relationship project to parent organization
managerial responsibility and authority

Internal organization
relationship of the participants to the task
leadership style of the project manager

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Project Organization
The problem of organizing
External organization
Internal organization
Responsibility charts
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Range of matrix structures


Balanced
Matrix
Coordinated
Matrix

Secondment
Matrix

Resources remain in function


Functional manager allots work
Single discipline work packages

Resources seconded to project


Project manager allots work
Mixed discipline work packages

Functional
Hierarchy

Project
Hierarchy

Projects undertaken in the function


Functional manager is project manager
Small, single function projects
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Projects department or core team


Career in projects
Large dedicated project teams
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Project organization
Company

Dept A

Permanent
Structures

Dept B

Temporary
Structures

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Dept C

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Projects
Dept

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Project organization functional


hierarchy Company

Dept A

Dept B

Dept C

Projects
Dept

Small
Project

Permanent
Structures

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Temporary
Structures

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Project organization project


hierarchy Company

Dept A

Dept B

Projects
Dept

Dept C

Small
Project

Large
Project

Permanent
Structures

Temporary
Structures

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Project organization seconded


matrix
Company

Dept A

Dept B

Dept C

Projects
Dept

Small
Project

Large
Project

Mixed
Work Pack

Permanent
Structures

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Temporary
Structures

People seconded
for duration of
their involvement

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Project organization coordinated


matrix
Company

Dept A

Dept B

Small
Project

Dept C

Projects
Dept
Single
Work Pack

Project Manager
gives work to
Functional Manager
to resource

Large
Project

Mixed
Work Pack

Permanent
Structures

Temporary
Structures

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People seconded
for duration of
their involvement

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Project success rates


100%
Likelihood
of success

Development projects
Goals not well defined
Users involved
Implementation projects
Goals well defined
Users not involved

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Functional
hierachy

Coordinated
EuroProjexBalanced
matrix
matrix

Project
Secondment
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matrix
hierarchy

Project Organization
The problem of organizing
External organization
Internal organization
Responsibility charts
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Leadership styles
Involvement of Team in
Decision Making Decision Taking

Flexibility

LaissezLaissez-Faire

High

High

High

Democratic

High

Low

High

Autocratic

Low

Low

High

Bureaucratic

Low

Low

Low

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Isomorphic structures
Stage
Feasibility
Design
Execution
Close

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Structure
Egoless
Matrix
Hierarchy
Surgical

Leadership
Laissez-faire
Democratic
Autocratic
Bureaucratic

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Team
Experts
Mixed
Task
Task force

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Internal structures

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Isomorphic
Egoless
Speciality, (matrix)
Task
Surgical

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Egoless team structure

Project work

Task 2

Task 1

Specialist 1

Project team

Task 3

Specialist 2

Manager
Specialist 3

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Speciality team structure

Project work

Task 1

Task 2

Task 3

Specialist 2

Project team

Specialist 3

Specialist 1

Manager

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Task team structure

Project work

Task 1

Task 2

Task 3

Project team

Team 1

Team 2

Team 3

Manager

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Surgical team structure

Project work

Task 1

Task 2

Task 3

Manager

Specialist 2

Project team

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Specialist 1

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Specialist 3

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Project Organization
The problem of organizing
External organization
Internal organization
Responsibility charts
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Responsibility chart
OBS
Companies/Departments/Functions
Resources/People

PBS
Milestones
Activity/Task
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WBS
Roles/Responsibilities
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Symbols

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eXecutes the work

takes Decision solely or ultimately

takes decision jointly or partly

manages Progress

provides Tuition on the job

must be Consulted

must be Informed

available to Advise
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Case history 1 - Design of a computer


system for a North Sea oil platform

Attached are responsibility charts for the


project for the computer systems on the
North Sea Oil Platform.
Two charts are attached:
at the milestone level
at the activity level for milestones SY4 and ST4,

(there is only one activity for ST4).

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Developing a responsibility chart

Just like the milestone plan, the


responsibility chart should be completed
through group work
Fill in the row and column headings
Project the chart onto a white board
Fill in the body of the matrix
each row can take 10 minutes
the whole chart two hours

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Determine the duration of each work


element
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Fill in the bar chart

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END of SESSION 4.1


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