Organizational Structure Organizational Influences

2 Figure 2-11. Strong Matrix Organization Figure 2-12. Composite Organization Most modern organizations involve all these structures at various levels, as shown in Figure 2-12 Composite Organization. For example, even a fundamentally functional organization may create a special project team to handle a critical project. Such a team may have many of the characteristics of a project team A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 31 in a projectized organization. The team may include full-time staff from different functional departments, may develop its own set of operating procedures and may operate outside the standard, formalized reporting structure.

2.3.4 The Role of the PMO in Organizational Structures

Many organizations realize the benefit of developing and implementing a PMO Section 1.6.4. This is often true of those organizations employing a matrix organizational structure, and almost always true of those employing a projectized organizational structure, especially when the parent organization is involved with the simultaneous management of multiple andor sequential projects. A PMO can exist in any of the organizational structures, including those with a functional organization, with increasing likelihood of occurrence toward the rightmost columns in Figure 2-6. A PMO’s function in an organization may range from an advisory influence, limited to the recommendation of specific policies and procedures on individual projects, to a formal grant of authority from executive management. In such cases, the PMO may, in turn, delegate its authority to the individual project manager. The project manager will have administrative support from the PMO either through dedicated staff or through a shared staff member. The project team members will either be dedicated to the project or might include staff members who are shared with other projects and, in turn, are managed by the PMO. Project team members will report either directly to the project manager or, if shared, to the PMO. The project manager reports directly to the PMO. Additionally, the flexibility of the PMO’s centralized management can offer the project manager a greater opportunity for advancement within the organization. Specialty project team members can also be exposed to alternative project management career options in organizations with PMOs. Note that if a PMO exists, Figure 2-8 would have an additional box, labeled PMO, between the project manager layer and the chief executive layer. Similarly in Figures 2-11 and 2-12, the “manager of project managers” would normally be the PMO manager, whereas in the other organizational structures Figures 2-9 and 2- 10, the PMO usually does not directly report to the chief executive. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 32 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA

2.3.5 Project Management System

The project management system is the set of tools, techniques, methodologies, resources, and procedures used to manage a project. It can be formal or informal and aids a project manager in effectively guiding a project to completion. The system is a set of processes and the related control functions that are consolidated and combined into a functioning, unified whole. 2 The project management plan describes how the project management system will be used. The project management system content will vary depending upon the application area, organizational influence, complexity of the project, and availability of existing systems. The organizational influences shape the system for executing projects within that organization. The system will adjust or adapt to accommodate any influence imposed by the organization. If a PMO exists in the performing organization, one of the functions of the PMO would typically be to manage the project management system, in order to ensure consistency in application and continuity on the various projects being performed. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 33 Se c t ion I I The Standard for Project Management of a Project

Chapter 3 Project Management Processes for a Project

3 C HAPTER 3 Project Management Processes for a Project Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management is accomplished through processes, using project management knowledge, skills, tools, and techniques that receive inputs and generate outputs. In order for a project to be successful, the project team must: • Select appropriate processes within the Project Management Process Groups also known as Process Groups that are required to meet the project objectives • Use a defined approach to adapt the product specifications and plans to meet project and product requirements • Comply with requirements to meet stakeholder needs, wants and expectations • Balance the competing demands of scope, time, cost, quality, resources, and risk to produce a quality product. This standard documents information needed to initiate, plan, execute, monitor and control, and close a single project, and identifies those project management processes that have been recognized as good practice on most projects most of the time. These processes apply globally and across industry groups. Good practice means there is general agreement that the application of those project management processes has been shown to enhance the chances of success over a wide range of projects. This does not mean that the knowledge, skills and processes described should always be applied uniformly on all projects. The project manager, in collaboration with the project team, is always responsible for determining what processes are appropriate, and the appropriate degree of rigor for each process, for any given project. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 37