The functional structure

The functional organization structure (see Figure 11-1 for an example) brings together people who perform similar tasks or who use the same kinds of skills and knowledge in functional groups. In this structure, people are managed through clear lines of authority that extend through each group to the head of the group and, ultimately, to a single person at the top. For example, in Figure 11-1, you see that all people who perform human resources functions for the organization (such as recruiting, training, and benefits management) are located in the human resources group, which reports to the chief executive.

Depending on the nature of the project and the skills and knowledge required for it, a project in the functional structure may be handled completely by staff within a particular functional group. However, as illustrated in Figure 11-1, if the manufacturing group is performing a project that requires the expertise of a person from the human resources group, the vice president of manufacturing must make a formal agreement with the vice president of human resources to make the necessary human resources staffer available to work on the project. The vice president of human resources must then manage this person as they perform their tasks for the project.

Project managers have less authority over project team members in the functional structure than in any other form of project organization. In fact, they serve more as a project coordinator than a project manager because the functional managers maintain all authority over the project team members and the project budget.

The projectized structure

The projectized organization structure groups together all personnel working on a particular project. Project team members are often located together and under the direct authority of the project manager for the duration of the project. As an example, you see in Figure 11-2 that a design engineer, an IT specialist, and a test engineer all work on Project A, while a different design engineer and a different test engineer work on Project B.

Project managers have almost total authority over the members of their team in the projectized structure. They make assignments and direct team members’ task efforts; they control the project budget; they conduct team members’ performance assessments and approves team members’ raises and bonuses; and they approve requests for paid time off.

The matrix structure

With increasing frequency, projects today involve and affect many functional areas within an organization. As a result, personnel from these different areas must work together to successfully accomplish the project work. The matrix organization structure combines elements of both the functional and projectized structures to facilitate the responsive and effective participation of people from different parts of the organization on projects that need their specialized expertise.

As Figure 11-3 illustrates, in a matrix organization structure, people from different areas of the organization are assigned to lead or work on projects. Project managers guide the performance of project activities while people’s direct supervisors (from groups such as engineering, manufacturing, and sales and marketing) perform administrative tasks like formally appraising people’s performance and approving promotions, salary increases, or requests for time off. Because an individual can be on a project for less than 100 percent of their time, they may work on more than one project at a time (we discuss the key players in a matrix structure in more detail in the later section “Recognizing the Key Players in a Matrix Environment”).

A matrix environment is classified as weak, strong, or balanced, depending on the amount of authority the project managers have over their teams. Here’s a little more info about each of these classifications:

• Weak matrix: Project team members receive most of their direction from their functional managers. Project managers have little, if any, direct authority over team members and actually function more like project coordinators than managers.
• Strong matrix: Companies with strong matrix structures choose project managers for new projects from a pool of people whose only job is to manage projects. The companies never ask these people to serve as team members. Often these project managers form a single organizational unit that reports to a manager of project managers. In addition to directing and guiding project work, these project managers have certain administrative authority over the team members, such as the right to participate in their performance appraisals.

  

• Balanced matrix: This type of matrix environment is a blend of the weak and strong environments. People are assigned to lead projects or serve as team members based on the projects’ needs rather than on their job descriptions. Although the project manager may have some administrative authority over team members (such as approving requests for time off), for the most part, the project manager guides, coordinates, and facilitates the project.

Check out the later section “Working Successfully in a Matrix Environment” for more information on the matrix structure.

The project manager

If you’re the project manager, you’re responsible for all aspects of the project. Being responsible doesn’t mean you have to do the whole project yourself, but you do have to see that every activity is completed satisfactorily (see Chapter 12 for definitions of authority, responsibility, and accountability). In this role, you’re specifically responsible for the following:

• Defining, drafting, and championing the project charter (collaboratively with the project sponsor) and maintaining it throughout the life of the project (see Chapter 3 for more information on the project charter).
• Determining objectives (see Chapter 5), schedules (see Chapter 7), and resource budgets (see Chapters 8 and 9).
• Ensuring you have a clear, feasible project plan to reach your performance targets (see Chapter 6).
• Identifying and managing project risks (see Chapter 10).
• Creating and sustaining a well-organized, focused, and committed team (see Chapters 12 and 13 in addition to this one).
• Selecting or creating your team’s operating practices and procedures (see Chapter 13).
• Monitoring performance against plans and dealing with any problems that arise (see Chapter 14).
• Resolving priority, work approach, or interpersonal conflicts (see Chapter 13).
• Identifying and facilitating the resolution of project issues and problems (see Chapter 14).
• Controlling project changes (see Chapter 14).
• Reporting on project activities (see Chapter 15).
• Keeping your clients informed and committed (see Chapter 15).
• Accomplishing objectives within time and budget targets (see Part 4).
• Contributing to your team members’ performance appraisals (see Chapter 17).

On occasion, you may hear people use the terms project director and project leader, both of which sound similar to project manager. Check with your organization, but usually manager and director describe a similar position. Project leader, however, is a different story. People often think of management as focusing on issues and tasks and leadership as focusing on people and teams; management also deals with established procedures, while leadership deals with change. Therefore, calling someone a project leader emphasizes their responsibility to focus and energize the people supporting the project, as opposed to the more technical tasks of planning and controlling. But again, check with your organization to be sure the term leader is meant to convey this message (often project leader is just another term for project manager — go figure!).

Project team members

Project team members must satisfy the requests of both their functional managers and their project managers. As a team member, your responsibilities related to project assignments include the following:

• Performing tasks in accordance with the highest standards of technical excellence in your field
• Performing assignments on time and within budget
• Maintaining the special skills and knowledge required to do the work well

In addition, you’re responsible for working with and supporting your team members’ project efforts. Such help may entail the following:

• Considering the effect your actions may have on your team members’ tasks
• Identifying situations and problems that may affect team members’ tasks
• Keeping your team members informed of your progress, accomplishments, and any problems you encounter

Functional managers

Functional managers are responsible for orchestrating their staff’s assignments among different projects. In addition, they provide the necessary resources for their staff to perform their work in accordance with the highest standards of technical excellence. Specifically, as a functional manager, you’re responsible for the following:

• Developing or approving plans that specify the type, timing, and amount of resources required to perform tasks in their area of specialty
• Ensuring team members are available to perform their assigned tasks for the promised amount of time
• Providing technical expertise and guidance to help team members solve problems related to their project assignments
• Providing the equipment and facilities needed for a person to do their work
• Helping people maintain their technical skills and knowledge
• Ensuring members of the functional group use consistent methodological approaches on all their projects
• Completing team members’ performance appraisals
• Recognizing performance with salary increases, promotions, and job assignments
• Approving team members’ requests for paid time off, administrative leave, training, and other activities that take time away from the job

The project owner

Project owners initiate the project, finance it, and are in charge of the business unit where the products produced by the project will be used to generate the desired business benefits. They are very important project drivers, one of the stakeholders who will define the business benefits to be realized from the project (flip to Chapter 4 for more information on stakeholders). If you are the project owner, you should expect to perform the following tasks:

• Helping to define the business benefits to be produced by the project (see Chapters 3 and 5 for more establishing the desired project results)
• Helping to ensure the design of the project will produce those desired business benefits
• Assessing the extent to which the benefits desired from the project are in fact realized
• Ensuring all information, people knowledgeable about the different aspects of operations, and required access to facilities and equipment are provided as promised when needed

The project sponsor

Originally, a project sponsor was a person who provided resources to support project activities. However, as projects evolved to become an integral part of an organization’s operations, the responsibilities of the project sponsor (often referred to as the executive sponsor) have expanded to include corporate and top-level project justification, funding, liaison, and reporting, as well as the provision of specific and pragmatic support to the project manager. Following are responsibilities you may have if you are an executive sponsor:

• Fleshing out the needs of the project in the business case (see Chapter 3 for more information)
• Estimating the funds, the schedule, and the resources needed for the project (check out Chapters 7, 8, and 9 for more details)
• Securing the funding and other required resources for the project
• Collaborating with the project manager to create and ultimately approve the project charter (check out Chapter 3 for more on this)
• Ensuring that the project is producing high-quality deliverables
• Supporting the assessment and management of project risks (see Chapter 10)
• Publicizing, promoting, and championing the project, especially to more senior-level audiences
• Helping to establish the internal and external credibility and support necessary for the project manager and the project team
• Providing oversight and executive support, as needed, to facilitate the successful performance of project activities
• Providing senior management with information about project activities performed, resources expended, results produced, and any issues that may adversely affect the chances of a project’s successful completion
• Ensuring the business benefits desired from the project are realized

The ideal candidate to be a project’s executive sponsor would be a well-respected C-level executive — for example, a CIO (chief information officer) or CFO (chief financial officer) — in the line of authority above the department that will use the new products created by the project to produce the desired business benefits.

In large, complex projects performed in large organizations, it is common to have separate people serving as a project’s executive sponsor and the project manager. However, when smaller projects are performed in simpler environments, the same person may be asked to perform both roles. If you are asked to be both the project manager and the executive sponsor of a project, be sure you don’t let tasks from one or the other of those roles inadvertently fall through the cracks. Even though personnel or other resources may be limited, failing to perform one or more of the tasks of the project manager or the executive sponsor can have a significant impact on the chances for project success.

Upper management

Upper management creates the organizational environment; oversees the development and use of operating policies, procedures, and practices; and encourages and funds the development of required information systems. More specifically, if you’re in upper management, you’re responsible for the following:

• Creating the organizational mission and goals that provide the framework for selecting projects
• Setting policies and procedures for addressing priorities and conflicts
• Creating and maintaining labor and financial information systems
• Providing facilities and equipment to support project work
• Defining the limits of managers’ decision-making authority
• Helping to resolve project issues and decisions that can’t be handled successfully at lower levels in the organization

Creating and continually reinforcing a team identity

Committing to work with others to achieve a common goal encourages people to overcome problems they may encounter along the way. The following tips can help clarify your team’s purpose and encourage team members to support one another as you work together to achieve it (see Chapter 13 for additional guidelines):

• Clarify team vision and working relationships. As soon as you have a team, work with the team members to develop a project mission that members can understand and support. Give people an opportunity to become familiar with each other’s work style.
• Define team procedures. Encourage your team to develop its own work procedures instead of allowing people to use the approaches of their respective functional groups.
• Clearly define each team member’s roles and responsibilities on the project tasks they’ll be performing. You also should include any authority that team members can use in the performance of their assigned tasks.
• Clarify each person’s authority. Team members may have to represent their functional areas when making project decisions. Clarify each team member’s level of independent authority to make such decisions and determine who outside the team can make any decisions that are beyond the purview of the team member.
• Be aware of and attend to your team’s functioning. Help people establish comfortable and productive interpersonal relationships. Continue to support these relationships throughout your project.
• Reinforce the overall project goals and the dependence of team members on one another. As the project manager, you must continually remind team members of the overarching project goals and focus their attention on how they influence and affect each other’s work.

Getting team member commitment

Team members typically have little or no authority over each other in a matrix environment. Therefore, they perform their project assignments because they choose to, not because they have to. Work with people initially and throughout your project to encourage them to commit to your project’s goals (see Chapter 16 for more on how to encourage team member buy-in).

Eliciting support from other people in the environment

The project manager’s authority over team members is frequently limited; for the most part, you must rely on suggestion, encouragement, and persuasion to help team members address issues and accomplish their assignments. Therefore, you have to identify and establish relationships with others who can help you deal with situations that you’re unable to resolve yourself. Here’s how:

• Get a champion. Because you most likely don’t have authority over all the people who affect the chances for your project’s success, get an ally who does have that authority — and do so as soon as possible. This project champion can help resolve team members’ schedule and interpersonal conflicts and raise your project’s visibility in the organization (see Chapter 4 for more information on this role).
• Ask for and acknowledge the support of your team members’ functional managers. By thanking functional managers for supporting their staff and allowing the staff to honor their project commitments, you’re encouraging those managers to provide similar support for you and others in the future.
• Work closely with your project’s executive sponsor. See the section “The project sponsor” earlier in this chapter, which discusses the role and responsibilities of the project executive sponsor.

Heading off common problems before they arise

Take the following steps upfront and throughout your project to head off potential conflicts and concerns before they materialize:

• Plan in sufficient detail. Work with team members to clearly and concisely define the project work and each person’s specific roles and responsibilities for all activities. This planning helps people more accurately estimate the amount of effort they need to give and the timing of that effort for each assignment.
• Identify and address conflicts promptly. Conflicts frequently arise in a matrix environment, given people’s diverse responsibilities, different styles, and lack of experience working together. Encourage people to identify and discuss conflicts as soon as they occur. Develop systems and procedures to deal with conflicts promptly — before they get out of hand.
• Encourage open communication among team members, especially regarding problems and frustrations. The earlier you hear about problems, the more time you have to deal with them. Discussing and resolving team issues encourages working relationships that are more enjoyable and productive.
• Encourage upper management to establish an oversight committee to monitor project performance and to address resource and other conflicts. Project and functional managers must focus on the goals for their respective areas of responsibility. Often, both groups rely on the same pool of people to reach these goals. But these diverse needs can place conflicting demands on people’s time and effort. An upper-management oversight committee can ensure that the needs of the entire organization are considered when addressing these conflicts.