Essay Question: What is strategic management and what role do projects play in it?
The assignment is to answer the question provided above in essay form. This is to be in narrative form. Bullet points should not to be used. The paper should be at least 1.5 – 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to project management. This does not mean blogs or websites. This source should be a published article in a scholarly journal (Journal of Project Management) or a professional journal (such as PMI’s Project Management Journal). This source should provide substance and not just be mentioned briefly to fulfill this criteria. The textbook should also be utilized. Do not use quotes. Do not insert excess line spacing. APA formatting and citiation should be used.
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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.
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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.
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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)
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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
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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
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Figure 2.2 T O W S Matrix
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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.
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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
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Figure 2.3 Project Stakeholder Relationships
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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.
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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
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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
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Figure 2.4 Example of a Functional Organizational Structure
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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.
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Figure 2.6 Example of a Project Organizational Structure
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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
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Figure 2.7 Example of a Matrix Organizational Structure
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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
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Heavyweight Project Organizations
Organizations can sometimes gain tremendous benefit from creating a fully dedicated project organization.
Lockheed Corporation’s “Skunkworks”
Project manager authority expanded
Functional alignment abandoned in favor of market opportunism
Focus on external customer
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Figure 2.8 Managers’ Perceptions of Effectiveness of Various Structures on Project Success
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Project Management Offices
Centralized units that oversee or improve the management of projects
Resource centers for:
Technical details
Expertise
Repository
Center for excellence
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Figure 2.9 Alternative Levels of Project Offices
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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
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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 station—monitoring and tracking
Control tower—project management is a skill to be protected and supported
Resource pool—maintain and provide a cadre of skilled project professionals
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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
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Organizational Culture
Unwritten
Rules of behavior
Held by some subset of the organization
Taught to all new members
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Key Factors That Affect Culture Development
Technology
Environment
Geographical location
Reward systems
Rules and procedures
Key organizational members
Critical incidents
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Organizational Culture: Effects on Project Management
Departmental interaction
Employee commitment to goals
Project planning
Performance evaluation
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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.
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
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.
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Copyright
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
