Organization Structure and Culture

- **Organizational structure**
	- Types
		- Classic (top-down)
		- Matrix
	- Project Management Office (PMO)
	
- **Organizational culture**
	- Importance
		- Identity
		- People
		- Process
	- Navigating culture
		- Ask questions
		- Listen to people's stories
		- Take note of company rituals
		- Make observations
		- Understand your impact
		- Sharpen your communication skills
		
- **Change management**
	- Core concepts
		- Create a sense of ownership and urgency
		- Figure out the right combination of skills and personalities
		- Effective Communication
	- Integrate project management and change management
		- Be proactive
		- Communicate about upcoming changes
		- Follow a consistent process
		- Practice empathy
		- Use tools
	- Participate in change management
		- Being empathetic to the challenges of the change management process
		- Supporting necessary changes throughout the project life cycle
	- Corporate and project governance
		- Corporate governance
		- Project governance
		- Intersection of project and corporate governance

Organizational Structure

Organizational Structure: The way a company or organization is arranged

• How job tasks are divided and coordinated
• How all the different members of the organization relate to one another

(“who reports to who”)

Understanding the different types of organizational structures can serve as a map to help you determine where you fit in, who you should communicate with, and how frequently to communicate with them. It can also help you navigate within the organization when you need support or need to determine who has authority in a certain situation.

Classoc and Matric structures

An organization’s structure is most commonly mapped out using a reporting chart or “organizational chart” (“org chart”), which shows the relationship between people and groups within the organization, and details who each person or group reports to.

Classic: Functional or top-down structures

• A Chief Executive Officer (CEO) has direct authority over several department managers. The department manager has direct authority over several other sections of employees.

  • This system requires communication both up and down the ladder. In a Classic structure, authority comes from the top and filters to the bottom.
  • Frequent reporting of project status updates may be required to pass up through management levels to keep higher leaders informed.

• Also referred to as functional organizations because the organization is divided into departments based on function

  • Each department is led by a functional manager, and employees are grouped according to the functions of their role.

  • Example

    

• If you are a project manager in this type of structure, you need to

  • 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
  • communicate regularly with your manager, the person directly above you, and also with your peers who work on the same types of projects as you.

Matrix: Direct higher-ups and stakeholders from other departments or programs

• Employees have two or more managers
• Think of a Matrix structure as a grid where you still have people above you, but you also have people in adjacent departments who expect to hear updates on your work progress
• Functional areas tend to cross paths more frequently, and depending on the nature of the work, the responsible manager for each area has the most authority.
• Example

  

How organizational structure impacts project management

• The amount of authority given to the project manager
• Resource availability

Project Management Office

Within both of classic and matric structures, there is sometimes a group devoted specifically to project management in the organization: the Project Management Office (PMO).

A Project Management Office, or PMO, is a group within an organization that defines, sets, and helps maintain project management standards and processes throughout that organization. It often acts as a coordinated center for all of the organization’s projects, helping them run more smoothly and efficiently.

Function of PMO

• Strategic planning and governance

  Involves defining project criteria, selecting projects according to the organization’s business goals, and then providing a business case for those projects to management

• Best practices

  • Help implement best practices and processes within their organization
  • Share lessons learned from previous successful projects
  • Help ensure consistency among their organization’s projects by providing guidance about processes, tools, and metrics

• Common project culture

  • Help set common project culture practices by training employees about optimal approaches and best practices
  • Help keep project management practices consistent and efficient across the entire organization

• Resource management

  • Help define the roles and responsibilities needed on any given project
  • Provide training, mentoring, and coaching to all employees, but project managers in particular

• Creation of project documentation, archives, and tools

  • Invest in and provide templates, tools, and software to help manage projects
  • Play an important role in maintaining their organization’s project history

Impact of Organizational Culture

Organizational culture

An organization’s culture provides context and acts as a guide for what their people value, how they operate on a daily basis, how they relate to one another, and how they can be expected to perform.

Importantce of organization culture

Understanding an organization’s culture (mission and value) will help you navigate your team more effectively toward achieving the project’s goal. It also impacts the way you plan your project. -> You’ll need to be familiar with an organization’s culture, so that you can minimize conflict and complete the project with as much support and harmony as possible.

Navigating culture

Change Management

Change management: The process of delivering your completed project and getting people to adopt it.

When you understand change management and your role in the process, it can ensure a smooth roll out of changes and easier adoption.

Core concepts:

Deal with resistance or roadblocks once the project is complete:

• helping folks adjust
• rewarding their efforts
• reminding them of the overall value the project is providing long-term

Integrating project management and change management

Both change management and project management aim to increase the likelihood of project success. They also incorporate tools and processes to accomplish that goal. The most effective way to achieve a project goal is to integrate project management and change management, and it is your responsibility as a project manager to do so.

Begin by asking yourself the following questions:

• How will the organization react to change?
• Which influencers can affect change?
• What are the best means of communication?
• What change management practices will lead to the successful implementation of my project?

The answers to these questions will help you prepare for a variety of possible scenarios and allow you to craft solutions to effectively support the adoption of your project.

Best practice:

Participating in change management

Participating in change management involves

• Being empathetic to the challenges of the change management process
• Supporting necessary changes throughout the project life cycle

Ask yourself questions that will inform change management

• Wow will the organization react to change?

• Which influencers can affect change?

• What are the best means of communication?

• What change management practices will lead to the successful implementation of my project and so on?

Answers to these questions will help you prepare for a variety of possible scenarios, and craft solutions to effectively support the adoption of your project. They will also help you navigate possible challenges along the way and lead your project through a successful change management process.

Corporate and project governance

Governance in business is the management framework within which decisions are made and accountability and responsibility are determined. In simple terms, governance is understanding who is in charge.

Corporate governance: Own set of standards and practices of each organization that direct and control its actions.

• 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 customers.
• Affects every part of an organization, including action plans, internal and external controls, and performance measurements.

Governance and change management go hand-in-hand. To successfully implement change management, it is essential that you understand the structure and culture of the organization. Effective governance in change management provides clearly defined roles and responsibilities during change.

-> This enables the people within the organization to have a precise understanding of who makes decisions and of the relationship between those managing and participating in the change management process.

Another example of governance within an organization is the creation and use of steering committees.

• Decide on the priorities of an organization and manage the general course of its operations.
• Act as an advisory board or council to help the project manager and the company make and approve strategic decisions that affect both the company and the project

Project governance: the framework for how project decisions are made

• Helps keep projects running smoothly, on time, and within budget
• Involves all the key elements that make a project successful
• Tells you what activities an organization does and who is responsible for those activities
• Covers policies, regulations, functions, processes, procedures, and responsibilities.

How project and corporate governance intersect?

Project governance needs to be tailored to your organization’s specific needs, which will influence how you implement and monitor the governance framework on your project. Effective project governance ensures that an organization’s projects are aligned to the organization’s larger objectives, are delivered efficiently, and are sustainable. This includes:

• 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

Corporate governance can involve clearing many hurdles before making decisions that can influence not only a single project, but the entire corporation. At the same time, corporate governance can help support project governance, as it provides oversight on compliance and mitigating risk and offers guidance and direction for project managers. Good corporate governance can also help project managers secure resources, get issues addressed, avoid delays in decision-making, get buy-in from stakeholders, and achieve visibility for projects on the executive level.