Week 4. Organizational structure and culture

Organizational Structure?

The way a company or organization is arranged

Classic Structure ( Functional or Top-Down Structures)

Traditional top-down system of reporting

Matrix structure

Direct higher-ups and stakeholders from other departments or programs

A project manager's role within different organizational structures

Knowing a company’s organizational structure can help you identify key points of communication and key stakeholders

1. Managing a project in a Classic organization

Consult with functional managers to understand your resources and the capacity of each teammate
Familiarize yourself with each function’s internal processes and approval structure

2. Managing a project in a Matrix organization

Top management must give real and immediate support to the matrix, including a clear project charter

• Project charter should state the purpose of the project and spell out the responsibilities and authority of the project manager.

Project Manager’s Responsibilities

1. What is to be done?
2. When will the task be done?
3. Why will the task be done?
4. How much money is available to do the task?
5. How well has the total project been done?

Functional Manager’’s Responsibilities

1. How will the task be done?
2. Where will the task be done?
3. Who will do the task?
4. How well has the functional input been integrated into the project?

How organizational structure impacts project management

1. Authority has to do with your ability to make decisions for the project rhat impact the organization

2. Resource availability

knowing how to access the people, equipment, and budget needed for a project

The role of a Project Management Office

What is a PMO?

A group within an organization that defines, sets, and helps maintain project management standards and processes throughout that organization.

What are the functions of a PMO?

Offer guidance and support to their organization’s project managers
1. Strategic planning and governance
2. Best practices
3. Common project culture
4. Resource management
5. Creation of project documentation, archives, and tools

Organization’s culture

The importance of organizational culture

Identity
An organization’s culture defines its identity. Its identity essentially describes the way the company conducts business, both internally and externally. A company’s values and organizational culture go hand-in-hand; its values are part of its identity. You can almost think of an organization’s culture as its personality. That is why it is important to learn your company’s (or target company’s) mission and value statements. The mission and value statements will help you understand why the company exists and will give you insight into what the company believes in and how it will behave.

People
Strong, positive organizational culture helps retain a company’s best employees. People who feel valued, engaged, and challenged are more likely to give their best and want to drive for success. An organization’s culture can help keep talented employees at a company, and it can attract great people too! On the other hand, a toxic culture can have the opposite effect. It is important to find an organization with a culture that fits your personality. One way to find out more about an organization's culture is to talk to the people who work there. You can also take note of the current employees’ attire, expressions, and overall behavior.

Processes
Organizational culture can have direct impacts on a company's processes, and ultimately, its productivity. The organization’s culture is instilled throughout the company—from its employees to how its employees do their job. For example, a company that values feedback and employee involvement might have that reflected in their processes by including many opportunities for employees to comment. By allowing employees to feel their voices are heard, this company is adhering to its culture.

Understanding an organization’s culture

Ask questions
Listen to people’s stories
Take note of company rituals
Understand your impact
Sharpen your communication skills

A project manager’s relationship to organizational culture

• Learning the company’s values
• Clarifying the company’s expectations
• Applying organizational culture to a project

Change management

The process of delivering your completed project and getting people to adopt it

Core Concepts

1. Creating a sense of ownership and urgency around the project
2. Figure out the right combination of skills and personalities
3. Effective communication

A project manager’s role in change management

Begin by asking yourself the following questions:

1. How will the organization react to change?

2. Which influencers can affect change?

3. What are the best means of communication?

4. What change management practices will lead to the successful implementation of my project?

1. Be proactive
2. Communicate about upcoming changes
3. Follow a consistent process
4. Practice empathy
5. Use tools

Being empathetic to the challenges of change management can help you support the process in subtle ways

Participating in change management might mean communicating with employees throughout the project about how the system will provide a better experience for their users

Corporate and project governance

Governance in business is the management framework within which decisions are made and accountability and responsibility are determined
-> Governance is understanding who is in charge

Corporate governance

A set of standards and practices that direct and control its actions in each organization

• The framework by which an organization achieves its goals and objectives
• A way to balance the requirements of the various corporate entities, such as stakeholders, management, and users

Project governance

Project governance is the framework for how project decisions are made

• Project governance concerns those areas of corporate governance that are specifically related to project activities

Effective project governance ensures organization’s projects are

1. Aligned to the organization’s larger objectives
2. Dlivered efficiently
3. Sustainable

How to align project governance with corporate governance?

• Considering the long- and short-term interests of your organization
• Making thoughtful decisions about which projects to take on and avoiding projects if you do not have sufficient resources
• Providing timely, relevant, and reliable information to the board of directors and other major stakeholders
• Eliciting the input and buy-in of senior managers since they are the decision-makers
• During the initiation phase, prioritizing clear, reachable, and sustainable goals in order to reduce confusion and conflict
• During the planning phase, assigning ownership and accountability to an experienced team to deliver, monitor, and control the process
• During the execution phase, learning from mistakes and adapting to new or improved knowledge