Reporting Structures.
The management organization required will vary depending on the size and
complexity of each particular project. On large projects a comprehensive
framework may be required, whilst on smaller projects it may be desirable to
combine roles within one individual. This project management training course
describes both types of project. The questions raised by the problem of
establishing a sound project
management structure revolve around the creation of effective reporting lines.
There are two organizational extremes which can be adopted: In the first
scenario, all of the personnel working on the project remain in their normal
situation, reporting to their line managers. In this case, the project
management staff will need to coordinate the required work through the
line managers. Alternatively, all personnel working on the project are drawn
into a team and report exclusively to the project manager. In practice a
combination of these approaches is often found to be the best solution, and is
by far the most common approach. However, this organizational framework risks
breaking one of the tenets of good management - that of matching responsibility
with authority. The project manager will be responsible for performance on the
project but may lack sufficient authority where contributors report to their own
line managers. This is one of many hurdles that the creation of a good project
management environment must overcome.
Three Key Roles.
It is advisable that every project involves representatives from three separate
interested parties to deliver an end-product that genuinely satisfies the
requirements. These interests being: the technical, the marketing or user, and
the business perspectives. If the technical interest is ignored then a project
may be attempting to produce an end-product that is not technically feasible. It
is essential that the technical implications of a proposed project are fully
understood. The project should have input from either the marketing or user
departments - depending upon whether it's deliverables are intended for the
marketplace or for use within the organization. If the business interest is
ignored then, although the end-product may well satisfy the marketplace or users
and be technically feasible, it may provide little or no commercial benefit to
the organization.
Project Funding.
Every project requires authorization and funding and the body responsible for
this is usually called the project sponsor. In the context of critical projects
in large
organizations, this body is often the board of directors. It is essential that a
project is effectively 'owned' either by an individual or a body. This body is
appointed by the sponsor to authorize the necessary work and to have
responsibility and accountability for the success of the project. In small
projects the owner and the manager may be one and the same
individual. The managers should be appointed, by the owner, to
assume day-to-day management of the project. There can be two levels of manager depending on the size of the project - the overall manager and
one or more sub-project managers. The project teams are made up of a mixture of
representatives from the marketing or user departments and technical experts who
are involved in the production of the overall deliverable or end product. In
organizations that are heavily project oriented, a project office may be set up,
to serve as a central body of excellence; providing resources to the various
projects that are initiated. Its main functions are to maintain the continuity
of project development activities.
The Project Sponsor.
The project sponsor may be either internal or external to the organization that
will be undertaking the project work. Many different permutations are possible,
for example, an internal sponsor may commission a project that will call only on
resources within the organization. Alternatively, the entire project may be
outsourced to a third party. The role of the sponsor is to approve and
fund the project, but not to get involved in day-to-day management or financial
control. The project sponsor should appoint a project owner to take on the
responsibility for delivering the project in accordance with its objectives.
Where the project sponsor is commissioning several concurrent projects they may
need to call upon the skills required for successfully manipulating numerous
projects, their inter-relationships and resource allocation. These inter-project
management skills are called program management and are a separate area of study
in their own right. Precisely where the project responsibilities reside with
regard to funding and ownership, program management and project management will
depend on each organization and the structures it wishes to impose.
The Project Owner.
As with the project sponsor, the project owner should not be involved in
day-to-day management of the project. The responsibilities of the owner
are to conduct ongoing reviews of the project and to arbitrate on any conflicts
that may arise between project and line management. As the senior management
body responsible for the project, it is the duty of the owner to resolve
disputes as quickly as possible, thereby minimizing disruption. The owner should continually assess the viability of the project against
pre-determined and objective criteria. They should have the authority to
terminate the project, at any time, if they feel that it can no longer satisfy
its business objectives. Projects of significant size are usually divided into
discrete stages, for the purposes of management review. The project owner is
responsible for confirming the precise status of the project at these
pre-determined management checkpoints. Where an ownership body is appointed it
is important that each of its members occupies a senior position within their
department, as they will need to have the power of decision making and resource
scheduling in relation to staff, and other resources.
Key Duties of the Project Owner.
The owner should agree and approve the project estimates. The final
approval of the estimates will require the sanction of the sponsor, who
will then fund the project. They are also responsible for committing the
resources detailed in the approved project plans. These may change as the
project proceeds, and it is essential that the project owner has sufficient
authority to commit additional resources as needed. The owner should be
responsible for agreeing and approving any changes to the existing plans.
Project plans often have to evolve to reflect changing circumstances, and it is
essential that the plans are kept up to date, and always reflect the current
resource and delivery projections. The owner should provide a clear goal for the
team but should not become involved in day-to-day supervision and management
issues. Conversely, the owner should not only be visible at times of maximum
interest, for example at project initiation, but should demonstrate their
ongoing commitment to the project.
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