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© Mauro Mancini
Learning objectives
• Basics on Organization
• Organizational structures for PM
• Roles in the project
• The project manager: weight, competences and
authoritativeness
• New Organizational issues in PM
• Advanced Competences, behaviors, PMO
© Mauro Mancini
1
Basics of Organization
microstructure macrostructure
© Mauro Mancini
© Mauro Mancini
2
Functional Structure
CEO
STAFF
Res 1 Res 1
Res 2 Res 2
© Mauro Mancini
© Mauro Mancini
3
Divisional Structure
CEO
STAFF
BU 1 BU 2 BU 3
STAFF
Res 1
Res 2
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4
Example of a Hybrid organization
© Mauro Mancini
Mechanisms of coordination
Ex post mechanisms
Manager
mutual adaptation Analyst
Operator Operator
direct supervision
Manager
Analyst
Operator Operator
Ex ante mechanisms
standardization
processes (e.g. assembly Manager
instructions for model aeroplane)
Analyst
output (e.g. taxi, budget)
Operator Operator
skills (e.g. operating theatre)
© Mauro Mancini
5
Learning objectives
• Basics on Organization
• Organizational structures for PM
• Roles in the project
• The project manager: weight, competences and
authoritativeness
• New Organizational issues in PM
• Advanced Competences, behaviors, PMO
© Mauro Mancini
© Mauro Mancini
6
Project Objectives
(a mix between initiation and planning)
• Strategic Objectives
• Strategic reasons to start the project
• Long term results
These are the objectives needed to evaluate the investments, the
resource allocation, the risks etc
• Specific Objectives
SCOPE
expected projects results
• Scope
• Time
• Cost
COST TIME
© Mauro Mancini
© Mauro Mancini
7
Project’s Organization
Functional Matrix Task Force
Pjt Organization Pjt Organization
FM FM FM FM FM FM FM FM FM
PM
PM
Functional Part Time
FM
Manager team member
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Organizational Forms
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Different Matrix
Weak Matrix Strong Matrix
FM FM FM FM FM FM FM FM FM
PM FP FP FP
PM PM
Choose a structure
Contingency factors
INTERMEDIATE STRONG
WEAK STRUCTURE
STRUCTURE STRUCTURE
Relevance of the
APPROPRIATE
project (HIGH)
Relevance of the
APPROPRIATE APPROPRIATE
project (LOW)
Critical objectives
APPROPRIATE
(HIGH)
Novelty of the project
INAPPROPRIATE APPROPRIATE
(HIGH)
© Mauro Mancini
9
Choose a structure
Issues to be considered
INTERMEDIATE STRONG
WEAK STRUCTURE
STRUCTURE STRUCTURE
Role of PM NON CRITICAL CRITICAL
Role of Functional
CRITICAL CRITICAL LIMITED
Units
Release of resources
EASY EASY DIFFICULT
at the end of project
Performance
EASY COMPLEX EASY
measurement
© Mauro Mancini
Lilu Case
Lilu realizes multimedia applications for companies working in the entertainment industry.
Within Lilu several projects are managed, in order to develope applications, platforms,
infrastructures the company uses. Internal projects (i.e., those projects that require the
development of an application for an internal customer) are managed with a specific
procedure.
An internal customer requires a project formally to the planning department. This
department allocates a PM that has the responsibility to contact Functional Managers so to
define a project team. FMs define which person from their division will work on that project.
When the team is defined, the team analyses the request and, if this is formally complete,
the PM define a preliminary project plan and asks to each functional member of the team to
estimate time and costs required for the realization of that activity. The PM doesn’t know
who will really work on the the project and he is not allowed, during the project
development, to evaluate the work done by the different functional units. The PM organizes
team meetings at predetermined deadlines and prepares meeting in terms of agenda,
documents, etc.. When a significant variance is identified (e.g., a significant delay of a
milestone) he coordinates the team to review the project plan. If the customer needs
revisions, the PM coordinates the interaction between the customer and functional unit that
wil lbe managing the modification.
© Mauro Mancini
10
What kind of organizational solution do you think
Lilu uses for managing its projects?
© Mauro Mancini
© Mauro Mancini
11
Role of functional units
© Mauro Mancini
Learning objectives
• Basics on Organization
• Organizational structures for PM
• Roles in the project
• The project manager: weight, competences and
authoritativeness
• New Organizational issues in PM
• Advanced Competences, behaviors, PMO
© Mauro Mancini
12
Organizational Breakdown Structure
Project
Project
Engineering Information Logistics Production
Management Testing (TST)
(ENG) Assurance (IA) (LOG) (PRD)
(PM)
© Mauro Mancini
• Project manager
• He/She is responsible for the overall result of the Project and the
creation/execution of the supply, under all the aspects: creation of value
and economic-financial results, fulfillment of the contractual obligations and
constraints, progression of activities in terms of performance/terms based
on technical specifications/requirements, progress of costs, quality of
deliverables, risk management, trials and acceptance of the goods/services
supplied by the Customer/Client, etc.
• He/She ensures the coordination and motivation of ithe Project Team and
manages and represents the main interface and reference for the customer
(along with sales department).
© Mauro Mancini
13
Project management roles
• Project Controller
• He/She oversees all the economic/financial aspects of the Project,
supporting the Project Manager in analyzing deviation between planned and
actual values.
• He/she performs project planning and control activities, to support the PM in
taking decisions for increasing the Project value (EVA/NPV)
• He/she ensures the gathering of data about the percentage of
completeness of the activities and evaluates the main Earned Value
performance indicators and supports the PM and the Organizational
Functions to analyze the variances between planned and actual values and
to define the Estimate at completion (EAC)
© Mauro Mancini
© Mauro Mancini
14
Learning objectives
• Basics on Organization
• Organizational structures for PM
• Roles in the project
• The project manager: weight, competences and
authoritativeness
• New Organizational issues in PM
• Advanced Competences, behaviors, PMO
© Mauro Mancini
He/She is
• Responsible for project goals achievement
• Guarantor of the integration
• Controller of resources utilization
• Resolver of conflicts
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15
Project Manager’s weight
Functions/ Project
Divisions
Timing
Responsibility Timing Timing Costs
Costs Quality
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FUNCTIONAL
STRUCTURE Light weight
Functional Matrix
MATRIX STRUCTURE Balanced Matrix
Project Matrix
PROJECT STRUCTURE
(TASK FORCE)
Heavy weight
© Mauro Mancini
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Project Manager’s weight:
Authority vs. Authoritativeness
© Mauro Mancini
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PM Skills - PMI 9 Knowledge Areas
3. Time Management
• The effective planning and accomplishment of activities' timing and
phasing is a central skill of project management. Time
scheduling/phasing comprises specifying the processes required
to ensure timely completion of the project.
4. Cost Management
• Cost Management is the process of estimating the proper cost that
should reasonably be expected to be incurred against a clear
baseline, understanding how and why actual costs occur, and
ensuring that the necessary response is taken promptly to ensure
that actual costs come under budget.
© Mauro Mancini
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PM Skills - PMI 9 Knowledge Areas
7. Resource Management
• Human Resource management concepts help you to understand the
various processes and methodologies that are used to ensure the
effectiveness of a good team leader and effective team members.
The common denominator is effective team functioning, as it is the
men behind the machines who make the difference.
8. Quality Management
• Quality management concepts help you to understand the various
processes and methodologies used to ensure full compliance of
quality policy and guidelines in completing a project. Quality can
never be compromised for a long and sustainable business. Quality
applies to everything in Project Management: Commercial,
Organization, People, Control, Technical, etc.
© Mauro Mancini
© Mauro Mancini
19
Project Lifecycle
Executing
Initiating Planning Closing
Controlling
© Mauro Mancini 39
© Mauro Mancini 40
20
Why do we plan a Project?
© Mauro Mancini 41
Initiating
Executing
Planning Closing
Controlling
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Initiating Planning Executing Controlling Closing
•Monitor and
Control Project
Integration •Develop •Develop Project •Direct and Manage Work
•Close Project
Management Project Charter Management Plan Project Execution •Perform
integrated
Change control
•Collect Requirements
•Verify Scoope
Scope Management •Define Scope
•Control Scope
•Create WBS
•Define Activities
•Sequence activities
Time Management •Estimate activities Resources •Control Schedule
•Estimate activity Durations
•Develop Schedule
•Estimate Cost
Cost Management •Control Costs
•Determine Budget
•Distribute information
Communications •Identify •Report
•Plan Communcations •Manage Stakeholders
Management Stakeholders Performances
expectations
•Plan Risk Management
•Identify Risks
•Perform •Operate the planned •Monitor and
Risk Management
qualitative/quantitative Risk mitigations control risks
Analysis
•Plan Risk Responses
Procurement •Administer •Close
© Mauro Mancini •Plan Procurement •Conduct Procurement 43
Management Procurements Procurements
Learning objectives
• Basics on Organization
• Organizational structures for PM
• Roles in the project
• The project manager: weight, competences and
authoritativeness
• New Organizational issues in PM
• Advanced Competences, behaviors, PMO
© Mauro Mancini
22
… Best in class companies
may need more
• Performance Management
• Ability to measure a project performance and to identify
variance causes (if any) and the appropriate corrective
actions, also through the use of advanced performance
management tools (EV-Earned Value)
• Value Management
• Ability to evaluate and interpret and govern the value
creation logics
© Mauro Mancini 45
© Mauro Mancini 46
23
Prisoner’s Dilemma
Two suspects, A and B, are arrested by the police.
The police has insufficient evidence for a conviction, and, having separated both
prisoners, visit each of them to offer the same deal: if one testifies for the prosecution
against the other and the other remains silent, the betrayer goes free and the silent
accomplice receives the full 10-year sentence. If both remain silent, both prisoners
are sentenced to only six months in jail for a minor charge. If each betrays the other,
each receives a five-year sentence. Each prisoner must make the choice of whether
to betray the other or to remain silent. However, neither prisoner knows for sure what
choice the other prisoner will make. So this dilemma poses the question: How should
the prisoners act?
Suspect B
Betray 0; 10 5; 5
© Mauro Mancini
Leaders…
© Mauro Mancini
24
Many organizations find an IPT to be an
effective way of managing programs…
CEO
IPT
Brings all of the functions
MKTG & together to execute a
PMO CTO/COO HR SALES
FINANCE
program
Enables execution of the
program by
ENG MFG PROC. QA – Focusing on a single
program
– Removing outside
IPDT #1 responsibilities
Gives the Program
Manager authority with
IPDT #2 responsibility for execution
Breaks down
communication and
organization barriers
IPDT #11
© Mauro Mancini
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…enabling the lead function for the IPT to change
according to the life cycle of the program
Example • Single face to • Market back • Win-win • Actionable • Design build • Value-added • Value-added
IPT Benefits program capabilities vs. contract for all program plan Enhancements Enhancements
• Design for
stakeholders pet projects stakeholders
supportability
Program Office/
System Integrator LEAD
Customers
Suppliers/
Partners
Finance
Engineering LEAD
Production
Procurement
Business
Development LEAD LEAD
Independent
Review
© Mauro Mancini
26
Program Management provides the overall control and
overview of the different projects running within the company
© Mauro Mancini
© Mauro Mancini 54
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