Organization Management

OM 08:00

Overview

What is this chapter about?

The Organization Management process (OM) establishes an effective and subsequently efficient project organizational structure that integrates all resources with clear responsibilities and interactions.

To whom is this chapter primarily addressed?

The project manager and the project core team establish the initial organizational structures during the initiation phase. These structures are then extended and modified in line with project needs, in collaboration with other project stakeholders who are familiar with the project environment and organizational culture.

What is the significance of the process discussed in this chapter?

The organization of the project has a significant impact on the effectiveness of communication, stakeholder motivation, and team performance. All relevant stakeholders should therefore be considered.

How does the process work in practice?

The execution-oriented structure resulting from the initial WBS and PSP drafts is modified to reflect stakeholder interdependence and the project’s cultural context. Larger endeavors (programmes) are organized into sub-projects. Organizational issues trigger a process of change; the resulting decisions are executed within the OM process. Newly acquired knowledge is transferred to the knowledge management process. This cycle is repeated throughout the project duration.

What are the main challenges?

Not all project stakeholders are known at the outset. It is therefore important to remain open to the organisational needs of all stakeholders, including newly identified ones, and to continuously review and adjust the project organisation. This requires time, which must be explicitly considered in the project schedule.

What are the key success factors in this process?

Functional, process-and task-related organisational structures must be continuously optimised to meet stakeholders’ expectations. Empathy, a holistic view of stakeholders, and comprehensive communication are essential. Knowledge of the host organisation’s culture can help to avoid problems at a later stage. To maintain high productivity, sufficient time must be planned for structural and team-related changes. Effectiveness, rather than efficiency, is the primary objective of the Organisation Management process.

Goal

Organisation Management aims to ensure that project expectations are met as effectively as possible by establishing a clear structure of relationships among all stakeholders within and around the project and by making optimal use of available resources.

Process

First, the project objectives are revisited and stakeholders are identified. The organisation derived from the PSP is then adapted to the project environment, organisational culture, and evolving team structure. The process is repeated periodically to implement outstanding adjustments and tasks. It may also be initiated by other processes.

Lecture notes

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