The Organizational Context:

Strategy, Structure, and Culture

Chapter 2

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 Projects and Organizational Strategy

Strategic management – the science of

formulating, implementing and evaluating cross-
functional decisions that enable an
organization to achieve its objectives.

Consists of:
– Developing vision and mission statements
– Formulating, implementing and evaluating
– Making cross functional decisions
– Achieving objectives

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 Projects Reflect Strategy
Projects are stepping stones of corporate strategy
The firm’s strategic development is a driving force
behind project development
Some examples include:

A firm wishing to… may have a project

redevelop products or processes, to reengineer products or processes.
change strategic direction or product to create new product lines.
portfolio configuration,
improve cross-organizational to install an enterprise IT system.
communication & efficiency

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 Relationship of Strategic Elements

Mission

Objectives

Strategy Goals Programs

Fig 2.1

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 Stakeholder Management
Stakeholders are all individuals or groups who have
an active stake in the project and can potentially impact,
either positively or negatively, its development.

Sets of project stakeholders include:

Internal Stakeholders External Stakeholders

• • Clients
Top management
• Competitors
• Accountant
• Suppliers
• Other functional managers • Environmental, political, consumer, and
• Project team members other intervenor groups

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 Project Stakeholder Relationships
Parent
Organization
Other External
Functional Environment
Managers

Project Top
Clients Management
Manager

Project
Fig 2.3 Accountant Team

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 Managing Stakeholders

1. Assess the environment

2. Identify the goals of the principal actors
3. Assess your own capabilities
4. Define the problem
5. Develop solutions
6. Test and refine the solutions

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Project Stakeholder Management Cycle
Identify
Stakeholders

Implement Gather Information

Stakeholder on Stakeholders
Management
Strategy
Project
Management Team
Predict
Identify
Stakeholder
Stakeholders’
Behavior
Mission

Identify
Stakeholder Determine
Strategy Stakeholder
Strengths &
Weaknesses
Fig 2.4

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 Organizational Structure
Consists of three key elements:

1. Designates formal reporting relationships

– number of levels in the hierarchy
– span of control

2. Groupings of:
– individuals into departments
– departments into the total organization

3. Design of systems for

– effective communication
– coordination
– integration across departments

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 Forms of Organizational Structure
• Functional organizations – group people
performing similar activities into departments

• Project organizations – group people into

project teams on temporary assignments

• Matrix organizations – create a dual hierarchy in

which functions and projects have equal
prominence
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 Functional Structures for Project
Management
Strengths Weaknesses
1. Firm’s design maintained 1. Functional siloing

2. Fosters development of in- 2. Lack of customer focus

depth knowledge

3. Standard career paths 3. Projects may take longer

4. Project team members remain 4. Projects may be sub-

connected with their functional optimized
group

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 Project Structures for Project Management

Strengths Weaknesses
1. Project manager sole authority 1. Expensive to set up and
maintain teams
2. Improved communication
2. Chance of loyalty to the
3. Effective decision-making project rather than the firm

4. Creation of project 3. No pool of specific knowledge

management experts
4. Workers unassigned at project
5. Rapid response end

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 Matrix Structures for Project Management

Strengths Weaknesses
1. Suited to dynamic 1. Dual hierarchies mean two
environments bosses

2. Equal emphasis on project 2. Negotiation required in order

management and functional to share resources
efficiency

3. Promotes coordination across 3. Workers caught between

functional units competing project & functional
demands
4. Maximizes scarce resources

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Heavyweight Project Organizations
Organizations can sometimes gain tremendous benefit
from creating a fully-dedicated project organization

Lockheed Corporation’s “Skunkworks”

• Project manager authority expanded

• Functional alignment abandoned in favor of market
opportunism
• Focus on external customer

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 Project Management Offices
Centralized units that oversee or improve the
management of projects

Resource centers for:

– Technical details offloaded from manager
– Expertise in project management skills
– Repository of lessons learned, documentation
– Center for project management excellence

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 Forms of PMOs
• Weather station – monitoring and tracking

• Control tower – project management is a skill to

be protected and supported

• Resource pool – maintain and provide a cadre of

skilled project professionals

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 Organizational Culture
The unwritten rules of behavior, or norms that are used to shape
and guide behavior, is shared by some subset of organization
members and is taught to all new members of the company.

Key factors that affect culture development

– Technology
– Environment
– Geographical location
– Reward systems
– Rules and procedures
– Key organizational members
– Critical incidents
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 Cultural Influences
• Technology
• Environment
• Geographical location
• Reward systems
• Rules and procedures
• Key organizational members
• Critical incidents

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 Culture Affects Project Management

• Departmental interaction

• Employee commitment to goals

• Project planning

• Performance evaluation

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 Tugas Kelompok

• Bentuk kelompok maksimum terdiri dari 5 orang.

• Tentukan proyek yang menurut kelompok

menarik untuk diobservasi dan dianalisis.

• Lakukan survey awal ke lokasi

proyek/perusahaan yang melaksanakan proyek.

• Kumpulkan data/informasi sebagai berikut:

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 Tugas Kelompok

1. Identitas Perusahaan: nama, pemilik, alamat, bidang

usaha, sejarah singkat, dll.

2. Pilih salah satu jenis proyek pembangunan

konstruksi yang digarap terakhir.

3. Apakah dalam pengerjaan proyek tersebut telah

menerapkan konsep dasar manajemen proyek

seperti telah dibahas pada Pertemuan 1.

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 Tugas Kelompok

4. Apa rumusan Visi/Misi/Tujuan/Sasaran perusahaan

tersebut ?.

5. Strategi apa yang dilaksanakan oleh perusahaan

tersebut ?.

6. Program apa saja yang selama ini (durasi 5 dan 1

tahun) yang telah, sedang, dan akan dilaksanakan

oleh perusahaan tersebut ?.

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 Tugas Kelompok

7. Bagaimana bentuk struktur organisasi perusahaan

tersebut ?.

8. Bagaimana bentuk struktur organisasi proyek yang

diterapkan pada saat perusahaan tersebut

menggarap proyek ?.

9. Lakukan analisis kekuatan dan kelemahan

penerapan bentuk struktur organisasi tersebut ?.

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 Tugas Kelompok

10. Bagaimana suasana budaya organisasi yang

dirasakan pada anggota tim proyek pada saat

menggarap proyek tersebut mulai dari tahap awal

hingga akhir ?.

11. Tuliskan pelajaran apa yang dapat dipetik (lesson

learned) hasil observasi dan analisis yang kelompok

Anda lakukan pada tahap ini !!!!

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