A project has the following attributes:      has a unique purpose is temporary is developed using progressive elaboration requires resources, often from various areas should have a primary customer or sponsor The project sponsor usually provides the direction and funding for the project. Project managers work with project sponsors, project team, and other people involved in a project to meet project goals. A project has a clear objective that establishes what is to be accomplished. It is the tangible end product that the project team must produce and deliver. The project objective is usually defined in terms of end product or deliverable, schedule, and budget. Furthermore, it is expected that the work scope will be accomplished in a quality manner and to the customer’s satisfaction. • A project is carried out through a series of interdependent activities in a certain sequence in order to achieve the project objective. • A project utilizes various resources to carry out the activities. • A project has a specific time frame, or finite life span -- a start time and a date by which the objective must be accomplished. • A project may be a unique or one-time endeavor such as developing a new product, building a house, or planning a wedding. • A project has a sponsor or customer that provides the funds necessary to accomplish the project. In a business setting, the customer can be internal or external to your organization. Every project has two sides: technical and sociocultural. Technical represent the scientific part of a project. Sociocultural represent the artful part of a project. Finally, a project involves a degree of uncertainty and is based on certain assumptions and estimates for the project budget, schedule, and work scope. Sociocultural factors play an important role in the development and the success of a project. It must be understood that people are the important part of any project. The important factors affecting people in project management are teamwork, communication, leadership, negotiation, problem solving, behavioral characteristics and conflict management. Project’s success greatly depends upon the commitment of all the team members to achieve the common goal. Effective communication is essential; the main objective of communication in project management is to perceive that there is a general understanding of the project. Leadership involves identifying and articulating the need to considerably change the direction and function of the project, aligning people to the latest direction, and motivating them to achieve project’s objectives. Behavioral characteristics are the factors that divide and depict a person’s favored way of acting, interacting, and responding in a variety of circumstances. The behavioral characteristics which are essential for project management are thoughts, common sense, progressiveness, adaptability, creativity, prudent risk taker, equality and commitment. A project team consists of various people working together towards a common objective. Project manager is responsible for the victorious result of the project. Each member of the team has own task, which symbolizes a part of the entire project. The three most common techniques used for hiring an individual in a team are structured interview, situational judgement test and personality test. Social skills included things such as social perceptiveness, persuasion, inculcating, and helping others. Team members should have technical skills plus problem solving skills which are evenly important to the team’s success. Team members should be recognized and rewarded for their team’s contributions. Communication is important on a project because it affects understanding and feelings. In communication there are two units’ receiver and sender. Communication is the exchange of information from one end of the task to the other end in a competent way. The techniques implemented to communicate vital information mainly rely upon the size of the definite project Technical Project Management is the ability to support the management of an IT initiative from a concept through to a concrete deliverable as a project with specialist technical knowledge. Working with a project requires that we have clear goals, a defined scope and a definite start and end. The technical factors that affect a project include scope, Work Breakdown Structure, Schedules, Resource allocation, Baseline budgets, and Status reports UNIT I STUDY GUIDE Introduction and Strategy Course Learning Outcomes for Unit I Upon completion of this unit, students should be able to: 1. Explain the relationship between the technical and sociocultural sides of a project. 1.1 Describe the technical and sociocultural sides of a project. 2. Evaluate the strengths and weaknesses of different organizational structures, such as functional, matrix, and projectized. 2.1 Define functional, matrix, and projectized organizational structures. 2.2 Discuss why it is important for project managers to understand their organization’s strategy. 2.3 List the strengths and weaknesses of functional, matrix, and projectized organizational structures. Course/Unit Learning Outcomes 1.1 2.1 2.2 2.3 Learning Activity Chapter 1 Unit I Case Study Chapter 3 Unit Lesson Unit I Case Study Chapter 2 Unit Lesson Unit I Case Study Chapter 3 Unit Lesson Unit I Case Study Reading Assignment Chapter 1: Modern Project Management, pp. 3–19 Chapter 2: Organization Strategy and Project Selection, pp. 27–51 Chapter 3: Organization: Structure and Culture, pp. 67–90, 94–96 Unit Lesson Welcome to the course! In our work together, you will acquire the tools to understand, design, and apply systemic project management organization and administration. We will deal with issues such as satisfying customer needs, applying budgeting concepts, managing production time, investing resources, and creating performance specifications designed with defined requirements. We will work to develop a project plan to present to stakeholders. This is an important course that will improve your understanding of how to work through the project planning process. We will begin with some fundamental and core concepts. Why Do Projects Fail? The following videos offer some insight into the reasons why projects fail. In this course, we will discuss the proper ways to plan for projects before they actually get started to avoid many of the pitfalls that can occur once the project actually begins. BBA 4126, Project Planning 1 To access the following resources, click the links below. UNIT x STUDY GUIDE Title Knights, R. (Director). (2017). Office relocation (Segment 1 of 8) [Video file]. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://fod.infobase.com/PortalPla ylists.aspx?wID=273866&xtid=124190&loid=455598 Click here to view the transcript for the video above. Video Education America. (2012). Why do projects fail? (Segment 1 of 8) [Video file]. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://fod.infobase.com/PortalPla ylists.aspx?wID=273866&xtid=49889&loid=171087 Click here to view the transcript for the video above. Before we delve into all of the specifics related to project planning, it is necessary that we all have a clear understanding of what a project actually is. A project is a complex, non-routine, one-time effort, which is limited by time, budget, resources, and specifications (Larson & Gray, 2018). Differentiating characteristics of projects from routine, repetitive daily work is listed below:      a defined life span; a well-defined objective; people from several disciplines; a project life cycle; and specific time, cost, and performance requirements (Larson & Gray, 2018). Organizations can be structured in one of three ways: functional, projectized, and matrix (Larson & Gray, 2018). Those with a functional structure have a hierarchal chain of command, delineate departments based on specific job duties, and are much less flexible with change. Projectized organizations have a more fluid chain of command. Job duties and departments are based on individual expertise and are much more flexible regarding change. Whereas a functional organization would require meetings, committees, and extensive negotiations with various levels of management to get the right people working on a project, a projectized organization can have a few meetings and the right people assigned to a project or multiple projects as their expertise is needed. As its name implies, organizations with a matrix structure are a combination of functional and projectized. Would that cause tension between the different types of managers and ways of doing business? Yes, it would. This tension is recognized by identifying organizations as having a strong matrix or a weak matrix. Strong-matrix organizations are those in which the project manager has more power, whereas in weak-matrix organizations, the functional manager has more power. Determining which projects to undertake requires broad considerations of the potential impact on a firm. Financial criteria, such as return on investment (ROI), will not ensure that selected projects contribute to the mission and strategy of a firm. Other considerations, such as developing new technology, public image, brand loyalty, ethical position, and maintaining core competencies, should be considered. Furthermore, it is difficult or next to impossible to assess ROI for many important projects (e.g., projects to develop new technologies). While ROI is likely to be a key consideration for many organizations, multiple screening criteria are recommended for selecting and prioritizing projects. Power in an organization is important because it can determine the speed at which projects are initiated and completed. Projectized and strong-matrix organizations enable project managers to identify, acquire, and utilize resources (including staff) for projects with limited interference. Functional and weak-matrix organizations restrict the ability of project managers in these same actions because resources, especially staff, must be approved at various levels by functional managers throughout the hierarchal chain of command, including cross-departmentally. Some resources can be approved at the first functional manager, but others must be approved by top-level management or a governing body, such as the board of directors or city council. For example, in a weak-matrix organization, a project has been approved by senior leaders, and the project manager has been chosen. The project manager determines that they will need additional staff with expertise that the company does not currently have. Because the functional manager has more power than the project manager, the functional manager will have to evaluate if the project manager is correct in his or her assessment of need, determine how to fill the position (contract, temporary hire, direct hire, part-time, or full-time), review budgets in the project and the human resources department, obtain higher manager approval, and determine the timeline for hiring and employment of the new staff. In a weak matrix, this BBA 4126, Project Planning 2 process can be completed quickly if the project is high profile or strongly supported senior leaders; UNIT by x STUDY GUIDE however, it can also take an indefinite amount of time, during which the projectTitle manager can only wait. One way a project manager can increase his or her power in a functional or weak-matrix organization is through leadership skills. Working with functional managers to build trusting and respectful teams, sharing decision-making responsibilities, and communicating with them as a part of the project team—as opposed to obstacles to overcome—can go a long way toward creating a more even balance of power. Leading by example (e.g., having collaborative partnerships with functional managers) is one of the best leadership skills a project manager can have in any type of organizational structure. A Closer Look You were recently hired as project manager of an aviation project. During the meeting, you are informed that you will report to a manager who works in the operations department. There are two issues that concern you about this situation: (1) You do not know the manager, which means that you do not have any idea regarding his expectations, and (2) you prefer a situation in which you can make decisions on your own. Because the project manager will report to the operations manager, the organizational structure is functional. The fact is that many companies operate in this manner. Functions include accounting, finance, information technology, marketing, operations, and so on. For effective project management, it is essential that teams are cross-functional. In other words, the different departments should be represented. By taking this approach, silos, in which teams keep to themselves and limit their contact with other teams within the business, are avoided. In this scenario, the project manager must contact the functional manager to gain a clear understanding of how work is done. The focus must be on the project objectives and how they can work together to meet the requirements. A sticking point is access to resources, which includes people, capital, equipment, and technology. Of course, making sure that people are available to handle project work is the most significant item. Project managers must have the ability to negotiate. For example, the functional manager might want to restrict the number of hours that a key person can contribute to the project. In this case, the project manager can negotiate for additional time or for another person to participate on the project. Given that the functional manager has the power in this structure, the project manager must have a back-up or contingency plan. Reference Larson, E. W., & Gray, C. F. (2018). Project management: The managerial process (7th ed.). New York, NY: McGraw-Hill Education. BBA 4126, Project Planning 3 Chapter 3 Organization: Structure and Culture Rizova, P., The Secret of Success: The Double Helix of Formal and Informal Struc- tures in an R&D Laboratory (Stanford, CA: Stanford University Press, 2007). Schein, E., Organizational Culture and Leadership: A Dynamic View (San Francisco, CA: Jossey-Bass, 2010). Sculley, J., Odyssey: Pepsi to Apple... A Journey of Adventure, Ideas, and the Future (New York: Harper & Row, 1987), pp. 270-79, Shenhar, A. J., "From Theory to Practice: Toward a Typology of Project Management Styles," IEEE Transactions in Engineering Management, vol. 41, no. 1 (1998), pp. 33-48. Shenhar, A. J., D. Dvir, T. Lechler, and M. Poli, "One Size Does Not Fit All-True for Projects, True for Frameworks," Frontiers of Project Management Research and Application, Proceedings of PMI Research Conference, Seattle, 2002, pp. 99-106. Smith, P. G., and D. G. Reinertsen, Developing Products in Half the Time (New York: Van Nostrand Reinhold, 1995). Stuckenbruck, L. C., Implementation of Project Management (Upper Darby, PA: Project Management Institute, 1981). Yazici, H., “The Role of Project Management Maturity and Organizational Culture in Perceived Performance," Project Management Journal, vol. 40, no. 3 (2009), pp. 14-33. Youker, R., "Organizational Alternatives for Project Management,” Project Manage- ment Quarterly, vol. 8 (March 1977), pp. 24–33. Case 3.1 Ea Moss and McAdams Accounting Firm Bruce Palmer had worked for Moss and McAdams (M&M) for six years and was just promoted to account manager. His first assignment was to lead an audit of Johnson- ville Trucks. He was quite pleased with the five accountants who had been assigned to his team, especially Zeke Olds. Olds was an Army vet who returned to school to get a double major in accounting and computer sciences. He was on top of the latest devel- opments in financial information systems and had a reputation for coming up with innovative solutions to problems, M&M was a well-established regional accounting firm with 160 employees located across six offices in Minnesota and Wisconsin. The main office, where Palmer worked, was in Green Bay, Wisconsin. In fact, one of the founding members, Seth Moss, played briefly for the hometown NFL Packers during the late 1950s. M&M's primary ser- vices were corporate audits and tax preparation. Over the last two years the partners decided to move more aggressively into the consulting business. M&M projected that consulting would represent 40 percent of their growth over the next five years. M&M operated within a matrix structure. As new clients were recruited, a manager was assigned to the account. A manager might be assigned to several accounts, depend- ing on the size and scope of the work. This was especially true in the case of tax Chapter 3 Organization: Structure and ulnar 95 preparation projects, where it was not uncommon for a manager to be assigned to 8 to 12 clients. Likewise, senior and staff accountants were assigned to multiple account teams. Ruby Sands was the office manager responsible for assigning personnel to dif- ferent accounts at the Green Bay office. She did her best to assign staff to multiple projects under the same manager. This wasn't always possible, and sometimes accoun- tants had to work on projects led by different managers. M&M, like most accounting firms, had a tiered promotion system. New CPAS entered as junior or staff accountants. Within two years, their performance was reviewed and they were either asked to leave or promoted to senior accountant. Sometime during their fifth or sixth year, a decision was made to promote them to account manager. Finally, after 10 to 12 years with the firm, the manager was considered for promotion to partner. This was a very competitive position. During the last five years, only 20 per- cent of account managers at M&M had been promoted to partner. However, once a partner, they were virtually guaranteed the position for life and enjoyed significant increases in salary, benefits, and prestige. M&M had a reputation for being a results driven organization; partner promotions were based on meeting deadlines, retaining clients, and generating revenue. The promotion team based its decision on the relative performance of the account manager in comparison to his or her cohorts. One week into the Johnsonville audit, Palmer received a call from Sands to visit her office. There he was introduced to Ken Crosby, who recently joined M&M after work ing nine years for a Big 5 accounting firm. Crosby was recruited to manage special consulting projects. Sands reported that Crosby had just secured a major consulting project with Springfield Metals. This was a major coup for the firm: M&M had com- peted against two Big 5 accounting firms for the project. Sands went on to explain that she was working with Crosby to put together his team. Crosby insisted that Zeke Olds be assigned to his team. Sands told him that this would be impossible because Olds was already assigned to work on the Johnsonville audit. Crosby persisted, arguing that Olds's expertise was essential to the Springfield project. Sands decided to work out a compromise and have Olds split time across both projects. At this time Crosby turned to Palmer and said, 'I believe in keeping things simple. Why don't we agree that Olds works for me in the mornings and you in the afternoons. I'm sure we can work out any problems that come up. After all, we both work for the same firm." SIX WEEKS LATER Palmer could scream whenever he remembered Crosby's words, "After all, we both work for the same firm." The first sign of trouble came during the first week of the new arrangement when Crosby called, begging to have Olds work all of Thursday on his project. They were conducting an extensive client visit, and Olds was critical to the assessment. After Palmer reluctantly agreed, Crosby said he owed him one. The next week when Palmer called Crosby to request that he return the favor, Crosby flatly refused and said any other time but not this week. Palmer tried again a week later and got the same response. At first Olds showed up promptly at 1:00 p.m. at Palmer's office to work on the audit. Soon it became a habit to show up 30 to 60 minutes late. There was always a good rea- son. He was in a meeting in Springfield and couldn't just leave, or an urgent task took longer than planned. One time it was because Crosby took his entire team out to lunch at the new Thai restaurant-Olds was over an hour late because of slow service. In the beginning Olds would usually make up the time by working after hours, but Palmer could tell from conversations he overheard that this was creating tension at home. Chapter 3 Organization: Structure and Culture 95 preparation projects, where it was not uncommon for a manager to be assigned to 8 to 12 clients. Likewise, senior and staff accountants were assigned to multiple account teams. Ruby Sands was the office manager responsible for assigning personnel to dif- ferent accounts at the Green Bay office. She did her best to assign staff to multiple projects under the same manager. This wasn't always possible, and sometimes accoun- tants had to work on projects led by different managers. M&M, like most accounting firms, had a tiered promotion system. New CPAS entered as junior or staff accountants. Within two years, their performance was reviewed and they were either asked to leave or promoted to senior accountant. Sometime during their fifth or sixth year, a decision was made to promote them to account manager. Finally, after 10 to 12 years with the firm, the manager was considered for promotion to partner. This was a very competitive position. During the last five years, only 20 per- cent of account managers at M&M had been promoted to partner. However, once a partner, they were virtually guaranteed the position for life and enjoyed significant increases in salary, benefits, and prestige. M&M had a reputation for being a results- driven organization; partner promotions were based on meeting deadlines, retaining clients, and generating revenue. The promotion team based its decision on the relative performance of the account manager in comparison to his or her cohorts. One week into the Johnsonville audit, Palmer received a call from Sands to visit her office. There he was introduced to Ken Crosby, who recently joined M&M after work- ing nine years for a Big 5 accounting firm. Crosby was recruited to manage special consulting projects. Sands reported that Crosby had just secured a major consulting project with Springfield Metals. This was a major coup for the firm: M&M had com- peted against two Big 5 accounting firms for the project. Sands went on to explain that she was working with Crosby to put together his team. Crosby insisted that Zeke Olds be assigned to his team. Sands told him that this would be impossible because Olds was already assigned to work on the Johnsonville audit. Crosby persisted, arguing that Olds's expertise was essential to the Springfield project. Sands decided to work out a compromise and have Olds split time across both projects. At this time Crosby turned to Palmer and said, “I believe in keeping things simple. Why don't we agree that Olds works for me in the mornings and you in the afternoons. I'm sure we can work out any problems that come up. After all, we both work for the same firm. SIX WEEKS LATER Palmer could scream whenever he remembered Crosby's words, "After all, we both work for the same firm." The first sign of trouble came during the first week of the new arrangement when Crosby called, begging to have Olds work all of Thursday on his project. They were conducting an extensive client visit, and Olds was critical to the assessment. After Palmer reluctantly agreed, Crosby said he owed him one. The next week when Palmer called Crosby to request that he return the favor, Crosby flatly refused and said any other time but not this week. Palmer tried again a week later and got the same response. At first Olds showed up promptly at 1:00 p.m. at Palmer's office to work on the audit. Soon it became a habit to show up 30 to 60 minutes late. There was always a good rea- son. He was in a meeting in Springfield and couldn't just leave, or an urgent task took longer than planned. One time it was because Crosby took his entire team out to lunch at the new Thai restaurant-Olds was over an hour late because of slow service. In the beginning Olds would usually make up the time by working after hours, but Palmer could tell from conversations he overheard that this was creating tension at home.
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