discussion 2 for 2 students Reflection and Discussion Forum Week 2 Reflect on the assigned readings for the week. Identify what you thought was the m -

discussion 2
for 2 students
Reflection and Discussion Forum Week 2
Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.
450 words plus
Also, provide a graduate-level response to each of the following questions:

Consider a medium-sized company that has decided to begin using project management in a wide variety of its operations. As part of their operational shift, they are going to adopt a project management office somewhere within the organization. Make an argument for the type of PMO it should adopt (weather station, control tower, or resource pool). What are some of the key decision criteria that will help it determine which model makes most sense?
Compare and contrast the organizational cultures at Amazon and Google. Imagine if you were in charge of a project team at both companies. How might your approach to managing a project, developing your team, and coordinating with different functional departments differ at the two firms?

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discussion 2 for 2 students Reflection and Discussion Forum Week 2 Reflect on the assigned readings for the week. Identify what you thought was the m

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Activity 2
You are a member of the senior management staff at XYZ Corporation. You have historically been using a functional structure set up with five departments: finance, human resources, marketing, production, and engineering.

Create a drawing of your simplified functional structure, identifying the five departments.
Assume you have decided to move to a project structure. What might be some of the environmental pressures that would contribute to your belief that it is necessary to alter the structure?
With the project structure, you have four projects currently ongoing: stereo equipment, instrumentation and testing equipment, optical scanners, and defense communications.
Draw the new structure that creates these four projects as part of the organizational chart.

Project Management: Achieving Competitive Advantage
Fifth Edition
Chapter 2
The Organizational Context: Strategy, Structure, and Culture

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Learning Objectives (1 of 2)
2.1 Understand how effective project management contributes to achieving strategic objectives.
2.2 Recognize three components of the corporate strategy model: formulation, implementation, and evaluation.
2.3 See the importance of identifying critical project stakeholders and managing them within the context of project development.
2.4 Recognize the strengths and weaknesses of three basic forms of organizational structure and their implications for managing projects.

Learning Objectives (2 of 2)
2.5 Identify the characteristics of three forms of a project management office (P M O).
2.6 Understand key concepts of corporate culture and how cultures are formed.

P M B o K Core Concepts
Project Management Body of Knowledge (P M B o K) covered in this chapter includes:
Project Procurement Management (P M B o K 12)
Identify Stakeholders (P M B o K 13.1)
Plan Stakeholder Management (P M B o K 13.2)
Manage Stakeholder Engagement (P M B o K 13.3)
Organizational Influences on Project Management (P M B o K 2.1)
Organizational Structures (P M B o K 2.1.3)
Organizational Cultures and Styles (P M B o K 2.1.1)
Enterprise Environmental Factors (P M B o K 2.1.5)

Projects and Organizational Strategy
Strategic managementthe 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
Making cross-functional decisions
Achieving objectives

Table 2.1 Projects Reflect Strategy

Strategy Project

Technical or operating initiatives (such as new distribution strategies or decentralized plant operations) Construction of new plants or modernization of facilities

Development of products for greater market penetration and acceptance New product development projects

New business processes for greater streamlining and efficiency Reengineering projects

Changes in strategic direction or product portfolio
reconfiguration New product lines

Creation of new strategic alliances Negotiation with supply chain members
(including suppliers and distributors)

Matching or improving on competitors products and services Reverse engineering projects

Improvement of cross-organizational communication and efficiency in supply chain relationships Enterprise I T efforts

Promotion of cross-functional interaction, streamlining of new product or service introduction, and improvement of departmental coordination Concurrent engineering projects

Figure 2.2 T O W S Matrix

Stakeholder Management
Stakeholder analysis is a useful tool for demonstrating some of the seemingly irresolvable conflicts that occur through the planned creation and introduction of new projects.
Project stakeholders are defined as all individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development.

Identifying Project Stakeholders
Internal Stakeholders
Top management
Accountant
Other functional managers
Project team members
External Stakeholders
Clients
Competitors
Suppliers
Environmental, political, consumer, and other intervener groups

Figure 2.3 Project Stakeholder Relationships

Managing Stakeholders
Assess the environment.
Identify the goals of the principal actors.
Assess your own capabilities.
Define the problem.
Develop solutions.
Test and refine the solutions.

Organizational Structure
Consists of three key elements:
Designates formal reporting relationships
number of levels in the hierarchy
span of control
Identifies groupings of
individuals into departments
departments into the total organization
Design of systems to ensure
effective communication
coordination
integration across departments

Forms of Organization Structure
Functional organizationsgroup people performing similar activities into departments
Project organizationsgroup people into project teams on temporary assignments
Matrix organizationscreate a dual hierarchy in which functions and projects have equal prominence

Figure 2.4 Example of a Functional Organizational Structure

Table 2.2 Strengths and Weaknesses of Functional Structures

Strengths for Project Management Weaknesses for Project Management

1. Projects developed within basic functional structure require no disruption or change to firms design. 1. Functional siloing makes it difficult to achieve cross-functional cooperation.

2. Enables development of in-depth knowledge and intellectual capital. 2. Lack of customer focus.

3. Allows for standard career paths. 3. Longer time to complete projects.

Blank 4. Varying interest or commitment.

Figure 2.6 Example of a Project Organizational Structure

Table 2.3 Strengths and Weaknesses of Project Structures

Strengths for
Project Management Weaknesses for
Project Management

1. Project manager sole authority 1. Expensive to set up and maintain teams

2. Improved communication 2. Chance of loyalty to the project rather than the firm

3. Effective decision making 3. Difficult to maintain a pooled supply of intellectual capital

4. Creation of project management experts 4. Team member concern about future once project ends

5. Rapid response to market opportunities Blank

Figure 2.7 Example of a Matrix Organizational Structure

Table 2.4 Strengths and Weaknesses of Matrix Structures

Strengths for
Project Management Weaknesses for
Project Management

1. Suited to dynamic environments 1. Dual hierarchies mean two bosses

2. Equal emphasis on project management and functional efficiency 2. Negotiation required in order to share resources

3. Promotes coordination across functional units 3. Workers caught between competing project and functional demands

4. Maximizes scarce resources Blank

Heavyweight Project Organizations
Organizations can sometimes gain tremendous benefit from creating a fully dedicated project organization.
Lockheed Corporations Skunkworks
Project manager authority expanded
Functional alignment abandoned in favor of market opportunism
Focus on external customer

Figure 2.8 Managers Perceptions of Effectiveness of Various Structures on Project Success

Project Management Offices
Centralized units that oversee or improve the management of projects
Resource centers for:
Technical details
Expertise
Repository
Center for excellence

Figure 2.9 Alternative Levels of Project Offices

Forms of P M O s and Control
Three forms of P M O s, varying with degrees of control and influence include:
Supportivelow control; consultative and provide P M resources and training
Controllingmoderate control; requires compliance to adopted P M standards/processes
Directivehigh control; directly manages projects

Models of P M O s
In addition to the forms of P M O and varying levels of control, there are models of P M O s with various purposes for companies:
Weather stationmonitoring and tracking
Control towerproject management is a skill to be protected and supported
Resource poolmaintain and provide a cadre of skilled project professionals

P M O Control Tower
Performs four functions:
Establishes standards for managing projects
Consults on how to follow these standards
Enforces the standards
Improves the standards

Organizational Culture
Unwritten
Rules of behavior
Held by some subset of the organization
Taught to all new members

Key Factors That Affect Culture Development
Technology
Environment
Geographical location
Reward systems
Rules and procedures
Key organizational members
Critical incidents

Organizational Culture: Effects on Project Management
Departmental interaction
Employee commitment to goals
Project planning
Performance evaluation

Summary (1 of 2)
Understand how effective project management contributes to achieving strategic objectives.
Recognize three components of the corporate strategy model: formulation, implementation, and evaluation.
See the importance of identifying critical project stakeholders and managing them within the context of project development.
Recognize the strengths and weaknesses of three basic forms of organizational structure and their implications for managing projects.

Summary (2 of 2)
Identify the characteristics of three forms of a project management office (P M O).
Understand key concepts of corporate culture and how cultures are formed.

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