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ELC 347 project management. Week 3. Agenda. Assignment 1 Due Assignment 2 Posted. The Organizational Context: Strategy, Structure, and Culture. Chapter 2. © 2007 Pearson Education. Successful project management. Contextual --- organization itself matters Must reconcile with

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  • Assignment 1 Due
  • Assignment 2 Posted
successful project management
Successful project management
  • Contextual --- organization itself matters
    • Must reconcile with
      • Organizational Strategy
      • Stakeholders
      • Organizational Structure
      • Culture
projects and organizational strategy
Projects and Organizational Strategy

Strategic management – the science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives.

Consists of:

  • Developing vision and mission statements
  • Formulating, implementing and evaluating
  • Cross functional decisions
  • Achieving objective
  • BUS 411
projects reflect strategy
Projects Reflect Strategy

Projects are stepping stones of corporate strategy

The firm’s strategic development is a driving force behind project development

Some examples include:

relationship of strategic elements






Relationship of Strategic Elements

Fig 2.1

stakeholder management
Stakeholder Management

Stakeholders are all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development.

Sets of project stakeholders include:

Internal Stakeholders

  • Top management
  • Accountant
  • Other functional managers
  • Project team members

External Stakeholders

  • Clients
  • Competitors
  • Suppliers
  • Environmental, political, consumer, and other intervenor groups
project stakeholder relationships

Parent Organization

External Environment

Other Functional Managers



Top Management




Project Stakeholder Relationships


Fig 2.3

managing stakeholders
Managing Stakeholders
  • Assess the environment
  • Identify the goals of the principal actors
    • Hidden agendas
    • Goal displacement
    • Mutually beneficial alignments
  • Assess your own capabilities
  • Define the problem
  • Develop solutions
  • Test and refine the solutions
project stakeholder management cycle

Identify Stakeholders

Implement Stakeholder Management Strategy

Gather Information on Stakeholders

Project Management Team

Predict Stakeholder Behavior

Identify Stakeholders Mission

Identify Stakeholder Strategy

Determine Stakeholder Strengths & Weaknesses

Project Stakeholder Management Cycle

Fig 2.4

organizational structure
Organizational Structure

Consists of three key elements:

  • Designates formal reporting relationships
    • number of levels in the hierarchy
    • span of control
  • Groupings of:
    • individuals into departments
    • departments into the total organization
  • Design of systems for
    • effective communication
    • coordination
    • integration across departments
forms of organization structure
Forms of Organization Structure
  • Functional organizations – group people performing similar activities into departments
  • Project organizations – group people into project teams on temporary assignments
  • Matrix organizations – create a dual hierarchy in which functions and projects have equal prominence
matrix organization
Matrix Organization
  • Cross-functional & Project teams
heavyweight project organizations
Heavyweight Project Organizations

Organizations can sometimes gain tremendous benefit from creating a fully-dedicated project organization

Lockheed Corporation’s “Skunkworks”


  • Project manager authority expanded
  • Functional alignment abandoned in favor of market opportunism
  • Focus on external customer
project management offices
Project Management Offices

Centralized units that oversee or improve the management of projects

Resource centers for:

  • Technical details
  • Expertise
  • Repository
  • Center for excellence
forms of pmos
Forms of PMOs
  • Weather station – monitoring and tracking
  • Control tower – project management is a skill to be protected and supported
  • Resource pool – maintain and provide a cadre of skilled project professionals
organizational culture
Organizational Culture

The unwrittenrules of behavior, or norms that are used to shape and guide behavior, is shared by some subset of organization members and is taught to all new members of the company.

Key factors that affect culture development

  • Technology
  • Environment
  • Geographical location
  • Reward systems
  • Rules and procedures
  • Key organizational members
  • Critical incidents
culture affects project management
Culture Affects Project Management
  • Departmental interaction
  • Employee commitment to goals
  • Project planning
  • Performance evaluation
people hate change

People hate change!


What do you as a Project Manager do about it?

seth godin fast company
Seth Godin (Fast Company)
  • “Competent people are quite proud of the status and success that they get out of being competent. They like being competent. They guard their competence, and they work hard to maintain it. “
  • “Competent people resist change”
    • “ Why? Because change threatens to make them less competent. And competent people like being competent. That's who they are, and sometimes that's all they've got. No wonder they're not in a hurry to rock the boat.”
  • In fact, competence is the enemy of change!
external forces that drive change
External forces that drive Change
  • Environmental
    • Economics
    • Competition
    • Interest rate
    • Distribution channels
    • Labor
    • Availability of raw materials
    • PROJECTS !
reaction to change
Reaction to change
  • Behavior is manifested in company culture
    • “what people do when no one is telling then what to do”
      • Peter Bijur, CEO of Texaco, Inc
organizations must adapt
Organizations must adapt
  • “For sustainable competitive advantage, you have to change the culture”
      • Peter Bijur
  • Company culture must see change as a positive
    • Raising to a challenge
effect of change on the project manager
Effect of Change on the project manager
  • Projects Manager deal with change on a daily basis
    • Schedules
    • Specifications
    • Supplies
    • Labor
  • Project manger are “Change Agents”
      • Seth Godin
      • http://www.fastcompany.com/finder/fc?w=godin
individual responses to change
Individual responses to change
  • People responds differently to change depending on past experience with change
    • Tolerance of ambiguity
    • Novelty
    • Complexity
    • Insolubility
  • Project mangers must display a positive response to all change
3 possible reactions
3 Possible reactions
  • Negative reactions
    • Employees stop being cooperative
  • Accepting change but not embracing change
    • We do it because we have to
    • Grudging acceptance
  • Inciting change
    • Change for change’s sake
professional survival in the face of change
Professional Survival in the face of change
  • Adopt the following behaviors
    • Develop awareness for external conditions that drive company success
    • Recognize cause and effect relationships in the workplace
    • Take creative actions
    • View change as positive
  • Read “Who Moved My Cheese?”
organizational approaches to change
Organizational approaches to change
  • 3 Common approaches
    • Slash and burn
    • Support and nurture
    • Inspire and motivate
  • Project managers do not make large changes decisions but are responsible for implementation of those decisions.
urgent change
Urgent Change
  • Problems are aggravated when change is “URGENT”
    • Challenge #1 Bailout
      • Provide real information
      • Set priorities and get commitments for “on high”
    • Challenge #2 Poor Morale
      • Remain realistically positive
      • Get the facts
      • Move to the new agenda ASAP
ways to speed change acceptance
Ways to speed Change Acceptance
  • Explains reasons for change
  • Project positive outcomes
  • Hold a “wake” for old ways
  • Create group “memories”
  • Get change implementation ideas for departments affected
  • Ask employees to drive the change process
ongoing change managament
Ongoing Change Managament
  • A project manager is a facilitator
    • Set an example
    • Behave consistently
    • Recognize employees for embracing change
    • Nurture growth in employees
    • Involve employees min goal setting