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Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1

The Project Team

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The (dedicated) Project Team lies at one extreme end of the continuum which starts from undertaking projects usingthe (pure) functional form of project organization.

A project manager is selected to head a core group of personell assigned from two or more functional units of theorganization and who are all required to work full-time onthe project in question.

Project Teams are usually cross-functional in nature andare a powerful means of dealing with complex assignmentswhich may be difficult to do using other project organiza-tion forms.

The (Dedicated) Project Team

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Corporation X

HumanResources

Marketing Engineering ProcurementManufacturing

Finance &Administration

Project Manager

Project Team

MA1 MA2 MA3 EN1 EN2 EN3 MF1 MF2 MF3 PR1 PR2

Forming a (Dedicated) Project Team

Staff are assigned away from various departments to workfull-time on the project.

O ther

Areas

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N o structural impact on thefunctional organizationoccurs only the tempo-rary siphoning away of

functional specialists fromtheir respective areas forthe duration of the projector for a phase of it whenheir input is required inorder to completespecialist tasks.

The Project Team - Advantages

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Project completion time iscomparatively smaller due toproject personell devoting

their efforts to the project inquestion full-time and alsobecause the flow of information and decision-making is generally nothindered by hierachies as it isin the functional form of organizing projects.


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M otivation, feeling of iden-tification and cohesivenessare strong in the project.

Project personell share acommon goal and theyalso share a collectiveresponsibility for ensuringthe realization of this goal.


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C ross-functionalcooperation is stronglyencouraged and promotedas a means of achievingthe project goal.

C ross-functional teamscreate a synergy effectwhich can handle taskscharacterised by a highdegree of complexity.


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A major criticism of the(dedicated) project teamrelates to the cost factor.

N ormally, a larger expenseis involved becauseresources and facilities areassigned to the project ona full-time basis. Acrossprojects, this may result ina duplication of infrastructure and work.

The Project Team - Disadvantages

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Projectitis project personellevolve a collective identityencapsulating themselves fromthe enterprise, giving rise to a

non-constructive usandthemoutlook. Sometimes thisnot only undermines theintegration of the project effortback into mainstream operations

but also the subsequentassimilation of project personellback into their respectivefunctional areas.


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The project may become over-dependent on the gamut of skills,expertise and experience held bythe project personell and may not

seek to incorporate fresh skills,expertise and experience which isheld by individuals and organiza-tional entities which are outside theproject.


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The assimilation of projectpersonell back into theirrespective functional unitsmay prove difficult due totheir prolonged absencefrom their units and thechallenge of keeping upwith the developments

which have taken place inthe functional units duringthe project period.


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Project Organization Formsand Project Performance

Findings Based on Empirical Research

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The projects sizeThe projects strategic importanceThe projects innovation requirementThe projects level of required integration across functional

delineationsThe project environments complexityThe project budget and time constraintsThe project resource requirement level of stability

In general the higher the level of these factors, the greateris the requirement of autonomy and authority for the projectmanager and his/her team in order to ensure the success of the project (i.e. a strong project matrix or dedicated projectteam is desirable).

Determining The Best Project Organization Form

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E mpirical research suggests that the Project M atrix and Project-Based O rganization modes are themost effective means of undertaking projects

FunctionalOrganization

FunctionalMatrix

BalancedMatrix

ProjectMatrix

ProjectOrganizaton

VeryIneffective

Ineffective

Effective

VeryEffective

Construction

New Product

C lifford F. Gray / Erik W. Larson, Project Management: The Managerial Process , 2. ed., 2003, p. 71

Empirical Findings:Effectiveness of Project Organization Forms

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Project Performance and Organizational Form(Meeting Schedule)

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Project Performance and Organizational Form(Controlling Cost)

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Project Performance and Organizational Form(Technical Performance)

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Project Performance and Organizational Form(Project Success Versus Complexity and Structure)

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Something to Keep in Mind

A n organi ation can e e pected to apply different formsof organi ation for its projects contained in its portfolio,using the criteria which were considered in the previousslide.

Pure Functional Form

M atrix Form

(Dedicated) Project Teams

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The Culture of an Organizationand its Implications for Projects

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E very organization has its own distinctive cul-ture which sets it apart from all other organi-

zations, including those which are operating inthe same field.

O rganizational culture basically refers to a sys-tem of shared norms, beliefs, values, assump-

tions, attitudes and behaviours which bind themembers of the organization together anddetermine how we do things around here.

What is Organizational Culture?

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Project managers must contend with several,often diverse cultures and subcultures existing

within the diverse organizational spheres of their organizations (e.g. senior management,

functional areas, P MO ), and outside it (e.g.clients, contractors, suppliers, government

agencies and other stakeholders).

A good cultural management strategy can becrucial for successfully managing a project.

Relevance of Organizational Culture

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Several research studies have been conductedover the years in the US and other countries todetermine the relationship between O rganiza-tional C ulture and O rganizational Performance.

E xcercize caution in interpreting the results of these researches because studies undertaken

in one country reflect the cultural, social andpsychological context of that country and may

not be valid for countries like Pakistan.

Organizational Culture A Note of Caution!

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ProjectX

Functional Units

Other External Stakeholders

Project Customers

Ext. Project Input Suppliers

Cultural Dimensions of Projects

Organization as a Whole

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Inadequate management of cultural conside-rations may cause difficulties for projects.

Therefore, it is essential to include the culturalcomponent as an integral and important part

of managing the overall project.

The culture of an organization determines the

infrastructure and processes which it sets upand the support and encouragement which it

gives to support projects.

Interest in Organizational Culture

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Organizational Culture and Projects

OrganizationalCulture

ProjectPerformance

Supportive(+)

O bstructive(-)

Project performance isdefined in terms of

goal achievementwithin schedule andbudget according to all

given requirementsand to the satisfactionof all key stakeholders

Organizational cultureis defined in terms of the existing policies,

infrastructure, metho-dology, processes,

tools and all forms of support provided by

the organization for itsprojects

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G ray and Larson have proposed ten cultural factors that arerelated to project success:

M ember IdentityTeam E mphasisPeople FocusUnit IntegrationC ontrolRisk ToleranceReward C riteriaC onflict ToleranceM eans- E nds- O rientationO pen-System Focus

Measuring Organizational Culture

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Without the visible, strong, active

and sustained support and com-mitment of top management, it isnot possible to create an organi-zational culture which facilitates

projects. Top management mustensure that the projects being un-dertaken are aligned with the mis-sion, goals and objectives of theorganization, that the value of pro-jects is acknowledged throughoutthe organization and that it is pre-pared to provide all forms of sup-port which projects need in orderto be successfully undertaken.

Drivers of a Good Organizational Culture

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Projects need a strong infrastruc-ture support base if they are tohave a high chance of succeeding.M any organizations have set upProject M anagement O ffices whichperform a host of specific support-ing functions in connection withprojects. O rganizations may havepolicies which require the applica-tion of sophisticated methodolo-gies (such as the P M BOK ) on theirprojects, are following best practi-ces, and have devised ways tominimize friction between internalproject stakeholders.


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To undertake projects successfully,an organization must equip itshuman resources with the requi-site knowledge and competenciesand fully utilize their experienceaccumulated through their involve-ment in projects. O rganizationswith a good (project management)culture invest substantially intraining programmes for their pro-ject managers and team members,offer handsome incentives, re-wards and promotional opportuni-ties for good performance, andaccord due status.


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All projects are built on the foun-dations of communication, coope-ration and coordination betweentheir stakeholders. Hence, it isimperative that the culture of theorganization supports these activi-ties to the maximum possible ex-tent.

In organizations with a good(project management) culture, silo

mentality is strongly discouragedand (formal and informal) commu-nication, cooperation and coordi-nation across functional lines isendorsed.


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The Project Management Office

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M any organizations of all sizes across theglobe have established Project M anage-

ment O ffices (P MO s) to serve as anorganizational focal point for the effective

and efficient management of their pro-grammes and projects. P MO s can perform

many important functions and, if con-ceived and managed properly, are a huge

asset for project-driven organizations.

The Project Management Office

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Internal Project Management SupportingInstitutions in Pakistan

Several public and private-sectororganizations which are operating in

Pakistan, as well as the federal andprovincial governments, have established

structures (Project M anagement Units,Project M onitoring Units) performing P MO functions to support projects which they

are undertaking.

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Some Typical Functions of a Mature PMO

Alignment of Projects with O rganizations M ission, G oals, O bjectives

Project Portfolio M anagement

Resource Planning and M anagementG enerating Awareness in O rganization of Project M anagement

Standardization of Policies, Processes, Protocolls and Documentaion

Recruitment and Selection of Project M anagers and Team M embersTraining in Project M anagement and Related C ompetencies, SkillsM onitoring, E valuation and Auditing of ProjectsM aintaining a Project M anagement Information SystemC onseling and M entoring of Project Staff

Benchmarking Best Practices

Archiving Documentation on C ompleted Projects

Refining Project M anagement M ethodologies

Software Tools

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Project Management Offices: Survey Findings

D r. Brian o s from the D epartmentof Management and echnology at theSchool of Management Sciences at

the University of Que ec,C

anada, hasundertaken an insightful empiricalresearch on PMOs entitled The Multi-Project PMO: A Global Analysis of theCurrent State of Practice .

C lick on image to download the study(pdf-documnt).

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