These are the presentations related to P

presentation

1. Project Management: Achieving Competitive Advantage Fifth Edition Chapter 2 The Organizational Context: Strategy, Structure, and Culture Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved

2. 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.

3. 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.

4. 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)

5. Organizational Strategy An organizational strategy is a plan that outlines how a company will achieve its long-term goals and objectives . It’s like a roadmap that guides the company’s direction, helping it decide where to focus resources, which markets to target, and how to compete. Example: Imagine a company that manufactures eco-friendly products. Their organizational strategy might be to become a market leader in sustainable products within five years. To achieve this, their strategy could include expanding their product line, entering new markets, and increasing their online presence.

6. Link Between Organizational Strategy and Project Management Project management involves planning, executing, and managing projects that help achieve specific objectives. Projects are the building blocks that bring an organizational strategy to life. Example: Continuing with the eco-friendly products company, if their strategy includes expanding their product line, they might initiate several projects, such as: Project 1: Research and development of new sustainable materials. Project 2: Designing and launching a new product line. Project 3: Marketing campaigns to promote the new products.

7. Introduction Within any organization, for successful project management, the organization setting matters— Its culture, its structure, and its strategy each play an integral part, and together they create the environment in which a project will flourish or founder. For example , a project’s connection to your organization’s overall strategy, the care with which you staff the team, and the goals you set for the project can be critical.

8. Link Between Organizational Strategy and Project Management Division into projects Each of these projects contributes directly to the company’s overall strategy of becoming a leader in sustainable products. In this way, project management ensures that the company’s strategic goals are broken down into actionable steps that can be achieved through specific projects.

9. Introduction Before beginning a project, the project manager and team must be certain about the structure of the organization as it pertains to their project and the tasks they seek to accomplish. The rules and procedures that will govern the project must be established, and any issues of staffing the project team must be identified.

10. 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 Making cross-functional decisions Achieving objectives

11. Examples: Launching a new product – requires: Marketing (promotion & sales strategy) R&D (design and innovation) Finance (budget and pricing) Operations (production and supply chain) HR (staffing needs) Expanding into a new international market – requires: Legal (compliance with laws) Finance (cost and investment analysis) Marketing (consumer behavior research) Operations (logistics & distribution) Implementing a new company-wide IT system – requires: IT (technical side) HR (training employees) Finance (budget allocation) All departments (using the system in daily operations)

12. Projects and Organizational Strategy Developing vision and mission statements It establishes the sense what the organization hopes to accomplish or what top management hope it will become at some point in future. E.g. Bechtel Corporation, a large construction organization, employs as its vision the goal of being “the world’s premier engineering, construction, and project management company.”

13. Projects and Organizational Strategy Formulating, implementing and evaluating In developing mission and vision, a firm devotes time and resources to evaluate its business opportunities through developing corporate vision or mission, assessing internal strengths and weaknesses as well as external opportunities and threats Establishing long term objectives Generating and selecting among various strategic alternatives All these components relate to the formulation stage of strategy.

14. Projects and Organizational Strategy Making cross functional decisions In making business strategy, experts from various function areas come together into a team of diverse personalities and background. Achieving objectives Whether organization want; Market leadership via low cost innovative products. Or Superior quality. Or some other means, Projects are the most effective tool to allow objectives to be met.

15. 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

16. Projects and Organizational Strategy The tows matrix (See Figure 2.2) is a useful way to see the links between projects and an organization’s strategic choices. TOWS comes from the acronym for “ Threats–Opportunities–Weaknesses–Strengths ” and refers to the challenges companies face in both their internal environment (within the organization) and their external environment (outside the company). 2- 16

17. Figure 2.2 T O W S Matrix

18. 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. Stakeholder analysis means studying these groups to see: What they want, How much power they have, Whether they support or oppose the project. 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.

19. 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

20. Figure 2.3 Project Stakeholder Relationships

21. 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.

22. Managing stakeholders Assess the environment Before starting a project, you need to understand the external environment to see how big or risky the project might be. Check if the project is small/low-key or significant and high-impact . For example , when EMC Corporation, a large computer manufacturer, began development of a new line of minicomputers and storage units with the potential for either great profits or serious losses, it took great care to first determine the need for such a product. The best way to assess the environment is through market research directly with consumers. 2- 22

23. Managing stakeholders 2. Identify the goals of the principal actors The project manager should first understand stakeholder concerns to prevent negative reactions. Stakeholder positions (what they demand) usually come from their real needs . So, the key question is: What does each important stakeholder group need from this project?

24. Managing stakeholders An example will illustrate this point. A small IT firm specializing in network solutions and software development recently contracted with a larger publishing house to develop a simulation for college classroom use. The software firm was willing to negotiate a lower-than-normal price for the job because the publisher suggested that excellent performance on this project would lead to future business. The software organization, interested in follow-up business, accepted the lower fee because its more immediate needs were to gain entry into publishing and develop long-term customer contacts. The publisher needed a low price; the software developer needed new market opportunities.

25. Managing stakeholders 3. Assess Your Own Capabilities Organizations must consider what they do well. Likewise, what are their weaknesses? Project managers need enough skills, influence, and bargaining power to win stakeholder support (or know someone who can help). Each of these questions is an example of the importance of the project team understanding its own capacities and capabilities.

26. Managing stakeholders For example , not everyone has the contacts to upper management that may be necessary for ensuring a steady flow of support and resources. If you realistically determine that political acumen is not your strong suit, then the solution may be to find someone who has these skills to help you.

27. Managing stakeholders 4. Define The Problem We must seek to define problems both in terms of our own perspective and in consideration of the valid concerns of the other party. The key to developing and maintaining strong stakeholder relationships lies in recognizing that different parties can have very different but equally legitimate perspectives on a problem. When we define problems not just from our viewpoint but also by trying to understand how the same issue may be perceived by stakeholders, we are operating in a “win-win” mode. 2- 27

28. Example: Suppose a company wants to introduce a new software system . Management’s view: It will save costs and improve efficiency. Employees’ view: It may cause job insecurity or require extra training. If the project manager defines the problem only as “cutting costs,” employees may resist. But if they redefine it as “improving efficiency while upskilling staff,” both management and employees see their concerns addressed → leading to a win–win situation.

29. Managing stakeholders 5. Develop Solutions --There are two important points to note about this step. First , developing solutions means precisely that: creating an action plan to address, as much as possible, the needs of the various stakeholder groups in relation to the other stakeholder groups. This step constitutes the stage in which the project manager, together with the team, seeks to manage the political process. What will work in dealing with top management? In implementing that strategy, what reaction is likely from the accountant? The client? The project team?

30. Managing stakeholders Asking these questions helps the project manager develop solutions that acknowledge the interrelationships of each of the relevant stakeholder groups. As a second point, it is necessary that we do our political homework prior to developing solutions. Project managers can fall into a trap if they attempt to manage a process with only inadequate information. The philosophy of “ready, aim, fire” is sometimes common in stakeholder management.

31. Why political information is needed In stakeholder management , political information means understanding the power, influence, interests, and hidden agendas of different stakeholders. Gathering this info helps the project manager: Know who has the most influence on the project. Predict possible resistance or support . Build the right alliances to get approvals or resources. Avoid surprises from hidden conflicts or office politics.

32. Managing stakeholders 6. Test and Refine The Solutions Test and Refine the Solutions → means trying out solutions, learning from stakeholder reactions, and improving them step by step. Solutions are based on imperfect information , so assumptions may not always be correct. Stakeholders might react differently than expected . Implementation is an iterative process : test, observe, adjust, and improve. The project manager should make the best plan possible, test it, and then refine strategies based on feedback .

33. Example: Building a New Public Park Assess the environment Check the local area: Is there enough land? What’s the budget? What are the environmental conditions (trees, water, pollution)? Identify the goals of the principal actors City government: wants community development and political goodwill. Local residents: want a safe, clean, and family-friendly park. Business owners: may want more visitors/customers. Environmental groups: want trees and green areas preserved. Assess your own capabilities The city has limited funds. Engineers and architects are available. Maintenance staff can be hired but budget is tight.

34. Define the problem How to design a park that satisfies the community, respects the environment, and stays within budget. Develop solutions Option A: Build a large playground + walking paths. Option B: Add sports grounds + fewer green areas. Option C: Create a mixed-use park with gardens, a small playground, and jogging tracks. Test and refine the solutions Share the designs with stakeholders (residents, businesses, city officials). Collect feedback: maybe residents want more trees, businesses want food stalls. Adjust the final design to balance everyone’s needs.

35. Example: Introducing EMR in a Hospital Assess the environment Look at current hospital processes: many records are still paper-based, causing delays and errors. Regulations require better digital record-keeping for patient safety. Identify the goals of the principal actors Doctors : want quick access to patient history. Nurses : need easy entry of daily vitals and medications. Hospital management : wants efficiency, cost savings, and compliance. Patients : expect accurate records and faster service. IT staff : concerned about system security and reliability.

36. Assess your own capabilities The hospital has basic IT infrastructure but limited trained staff. Budget is available but not unlimited. Some staff are resistant to technology changes. Define the problem Current system is slow and error-prone. Risk of misplacing patient files. Staff need training and a system that is user-friendly. Develop solutions Option A: Buy an off-the-shelf EMR system. Option B: Develop a custom EMR system tailored to the hospital. Option C: Hybrid solution (basic EMR now, upgrade later). Test and refine the solutions Run a pilot program in one department (e.g., cardiology). Gather feedback: Did doctors find it fast? Did nurses face difficulties? Refine workflows, add training sessions, improve interface before full rollout.

37. 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

38. 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

39. Figure 2.4 Example of a Functional Organizational Structure

40. 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 firm ’ s 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.

41. Figure 2.6 Example of a Project Organizational Structure

42. 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. Team member concern about future once project ends 4. Creation of project management experts 5. Rapid response to market opportunities Blank

43. Figure 2.7 Example of a Matrix Organizational Structure

44. 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 Blank

45. Heavyweight Project Organizations Organizations can sometimes gain tremendous benefit from creating a fully dedicated project organization . Lockheed Corporation’s “ Skunk works ” Project manager authority expanded Focus on external customer

46. “ Skunk works ” In Project Management Context A Skunk Works project = a dedicated, empowered team with expanded project manager authority. They focus directly on solving customer problems or developing advanced technology, without being slowed down by traditional organizational rules. Example: Developing stealth aircraft , new aerospace technologies , or even experimental software systems .

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

48. Figure 2.9 Alternative Levels of Project Offices

49. Forms of P M O s and Control Three forms of P M O s, varying with degrees of control and influence include: Supportive — low control; consultative and provide P M resources and training Controlling — moderate control; requires compliance to adopted P M standards/processes Directive — high control; directly manages projects

50. Models of PMOs Weather Station Model 🌦️ Role: Acts like a weather forecast → monitors and tracks project progress . Provides visibility (status reports, dashboards) but doesn’t control the project directly. Example: Reports whether a skyscraper sensor project is “on track,” “at risk,” or “delayed.” Control Tower Model 🛫 Role: Ensures that project management standards and processes are followed . Provides training, sets guidelines, and audits projects. Example: Defines how all IoT projects in your engineering firm must plan, execute, and report. Resource Pool Model 👩‍💻 Role: Maintains a pool of skilled project managers and professionals . Assigns them to projects when needed. Example: A PMO provides expert project engineers to skyscraper safety projects when required.

51. 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

52. Organizational Culture Unwritten – Not always formally documented, but understood by employees. Rules of behavior – Defines how people are expected to act (respect, teamwork, communication style). Held by some subset of the organization – May start within certain groups (e.g., engineering team, leadership). Taught to all new members – Passed on during onboarding and training so everyone follows the same culture.

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

54. 1. Technology Impact on Organizational Culture: Shaping Work Processes: Technology influences how work is done, including communication, collaboration, and efficiency. For example, a company that heavily uses remote communication tools like Slack may develop a culture that values flexibility and quick, informal communication. Innovation and Adaptability: Companies that embrace new technologies often foster a culture of innovation and adaptability, encouraging employees to be open to change and continuous learning.

55. 2. Environment Impact on Organizational Culture: External Influences: The industry, market conditions, and societal expectations can shape a company’s culture. For instance, a company in a highly competitive environment may develop a culture focused on performance and speed. Sustainability and Ethics: If the external environment prioritizes sustainability, the company might cultivate a culture that emphasizes ethical behavior.

56. 3. Geographical Location Impact on Organizational Culture: Cultural Norms: The location of an organization can influence its culture based on local customs, traditions, and social norms. For example, a company in Japan may have a culture that values respect, hierarchy, and teamwork, reflecting broader societal values. Global vs. Local Culture: A multinational company may experience a blend of its headquarters’ culture and local cultures, creating a diverse organizational culture that adapts to different geographical contexts.

57. 4. Reward Systems Impact on Organizational Culture: Motivation and Behavior: How employees are rewarded (financially, through recognition, etc.) significantly affects their motivation and behavior. Values and Priorities: Reward systems communicate what the organization values most. For example, if rewards are tied to teamwork, it reinforces a collaborative culture.

58. 5. Rules and Procedures Impact on Organizational Culture: Structure and Consistency: Rules and procedures provide structure and consistency, shaping a culture that values order, discipline, and predictability. This is often seen in highly regulated industries like finance or healthcare. Flexibility vs. Rigidity: A culture with strict rules may be more rigid, while one with flexible procedures may encourage creativity and adaptability.

59. 6. Key Organizational Members Impact on Organizational Culture: Leadership Influence: The behavior, values, and decisions of key leaders and influential members greatly shape the organizational culture. Leaders who prioritize transparency and open communication, for example, often create a culture of trust and openness. Role Models: Key members act as role models, setting the tone for the entire organization. Employees tend to emulate the behavior and attitudes of these individuals.

60. 7. Critical Incidents Impact on Organizational Culture: Learning and Adaptation: Critical incidents, such as major successes, failures, or crises, can have a lasting impact on organizational culture. For instance, surviving a financial crisis might instill a culture of caution and financial prudence. Cultural Shifts: These incidents can lead to significant cultural shifts, reinforcing existing values or prompting a reevaluation of the organization’s priorities and practices.

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