The Organisational Environment and the Project-oriented Company



Table of Contents

The Organisational Environment and the Project-oriented Company3

Introduction3

"Management by Projects": The Organizational Strategy of the Project-Oriented Company4

Projects and Programs: Temporary Organizations of the POC6

Clusters of Projects and Programs7

Supporting Projects by a "New Management Paradigm"7

Management of Dynamics and Complexity in the Project-Oriented Company9

Project Management10

Program Management15

Project Portfolio Coordination17

Personnel Management in the Project-Oriented Company19

References20

The Organisational Environment and the Project-oriented Company

INTRODUCTION

Companies are becoming more project-oriented. Projects and programs are applied in all industries and in the nonprofit sector. To perceive a company as a POC is a social construction. Any company (or parts of a company?(Cleland? 2002) such as a division or a profit center) that frequently applies projects and programs to perform relatively unique business processes of large scope can be perceived as being project-oriented.

A POC can be defined as an organization that:

defines "management by projects" as an organizational strategy;

applies temporary organizations for the performance of business processes of medium and large scope;

manages a project portfolio of different project types;

has specific permanent organization units? such as a PM office and a project portfolio group;

applies a "new management paradigm"; and

perceives itself as being project-oriented (Cleland? 1994)

Observing the project orientation of a company requires that we put on a special pair of "project orientation" glasses to view the practices of project? program? and project portfolio management and to observe the organizational design and the personnel management practices to support these approaches. (Englund? 2003) These observations are the basis for management interventions needed to optimize the maturity as a POC.

DISCUSSION

According to the organizational fit model? a company can be described by its organizational environment. Organisational environment includes strategies? structures? and cultures. These have to fit in order to provide good-quality services and to be cost-and time-efficient. The specific organizational strategy of the POE is one of "management by projects." (Gareis? 1994 25-36)

Further? it is characterized by permanent and temporary organization structures? and by a culture based on a "new management paradigm." (Gareis? 2000 54-61) Projects as temporary structures can only be performed successfully if appropriate strategic and cultural provisions exist.

"Management by Projects": The Organizational Strategy of the Project-Oriented Company

Project-oriented companies consider projects not only as tools to perform business processes of medium and large scope but as a strategic option for the organizational design of the company. By applying a management-by-projects approach? the following organizational objectives are pursued:

Organizational differentiation and decentralization of management responsibility

Quality assurance by project teamwork and holistic project definitions

Goal orientation by defining and controlling project objectives

Personnel development in projects

Organizational learning by projects (Gareis? 2003)

For the implementation of management-by-projects symbolic management measures? showing the importance of projects? are required. Such measures include the following:

Showing in the organization chart of the company not only the permanent organization structures but also temporary organizations (see Figure below).

Including project-related functions in job descriptions of all managers and top managers

Including a statement on the strategic importance of project management in the company mission statement

Marketing and promoting ...