Project Management

Unit-2
What is project organization?

• Project organization refers to the style of coordination,

communication and management a team uses throughout a
project’s life cycle. Project organization encourages participation
by each team member and embraces diverse talents and skills.
• Team involvement is laid out in an organizational structure chart
that graphically shows where each person is placed in the project
structure. Project organizational charts are useful tools for
clarifying who does what, securing buy-in and setting
expectations for the group.
By applying project
organization, a project team
optimizes resources,
provides clear
communication about roles
and responsibilities and
reduces potential
roadblocks.
To maintain a strong project
organization, the team needs
proper direction and training
from colleagues and
supervisors. Each company
has its own approach to
project organization,
depending on how many
employees they have and
what the project entails. What is project organization?
Types of project organization

• Functional: Functional project organization is structured around traditionally

functioning departments with managers who report to an executive. Instead, the
managers coordinate projects and select team members from each department to
support the project.

• Project-oriented: The project-oriented approach has dedicated project divisions

within the company. Each division focuses on a specific project and what is necessary
to complete its tasks. Project division managers make significant decisions regarding
goals, schedules, and responsibilities for their team members.

• Organic: Organic project organization focuses on a project's natural progression. This

type of organization is flexible with a more relaxed workflow approach. They work
side by side to communicate quickly to resolve unexpected issues.
• Matrix: Matrix project organization focuses on both functional and project-oriented approaches. This
approach means the team considers both the project and team member roles equally. Project leaders and those
higher up in the structure make the decisions. There are three subtypes of matrix organizational structures:
Balanced: Both project managers and functional managers have equal (or similar) levels of authority.
Strong: Project managers have more authority than functional managers.
Weak: Functional managers have more authority than project managers.

• Multidivision: When a team uses a multidivision project organization, they do not have functional roles.
Instead, several individual groups share the same goal and skills. These groups might work on distinct tasks
but progress toward the overall team objective.

• Virtual: Virtual project organization involves team members from across the country or around the world
who work on the same project together. This team does not focus on functional roles but rather on overall
contribution to project objectives. The project manager organizes the team and goals to keep everyone
informed and progressing effectively.

• Democratic: Democratic project organization is when a company makes decisions based on the majority's
opinion and feedback. A team uses the democratic approach to enforce structures, rules and expectations that
most employees agree on. As a result, implementing regulations and outlining goals is easier because of the
general consensus among team members.
How to structure a project

• Identify project members

• Set goals
• Create a timeline
• Train project members
• Assign responsibilities and roles

Tips for organizing projects

• Encourage feedback
• Meet often as a team
• Reorganize when necessary
• Use programs and digital tools
 Project scope

• Project management can be challenging. Budget issues, low stakeholder engagement, and
poorly defined goals are just a few problems that can impede progress. If you find
yourself running into these problems frequently, the real problem may involve project
scope.

• Project scope is a component of project implementation that helps determine goals,

constraints, workflow management strategies, tasks, and deliverables. By defining project
scope, individual contributors will be able to manage their workloads more easily.

• A project scope is never set in stone and you may run into unanticipated issues. But the
more clearly a scope statement is designed, the easier it’ll be to pivot and address
obstacles
The importance of defining project scope

• Defining and documenting project scope is crucial for keeping contributors aligned.
Outline important limitations and constraints that may derail timelines, budgets, and
deliverables. Defining these parameters of a project helps alleviate unforeseen issues.

A clear project scope:

• Provides a roadmap
• Manages stakeholder expectations
• Makes budgeting and scheduling easier
• Prevents scope creep
What is a project scope statement?
• The project scope statement is a detailed written outline of the project, including timeline, budget, assigned tasks, project
stakeholders, and workflow strategies.

What is scope creep?

• Scope creep occurs when unforeseen changes in scope alter the project plan without a formal request. It’s common for
stakeholders to add or alter project goals after the project has been defined, increasing the likelihood of scope creep.
Budget issues, missed deadlines, and increased stress are commonly associated with scope creep.
• There are a few simple strategies that can help prevent and manage scope creep.
• Include all stakeholders in project planning.
• Detail possible roadblocks in the project scope statement.
• Communicate potential project setbacks to stakeholders and devise strategies to help avoid them.

How to define project scope

• 1. Establish goals and objectives
• 2. Collect project requirements
• 3. Identify and allocate resources
• 4. Create exclusions and constraints
• 5. Define deliverables
• 6. Get buy-in from stakeholders
Project Priorities

• Project prioritization is the process of determining which existing and new

projects are the most urgent for an organization. This can be done through
several project prioritization methods that allow portfolio managers to assess
the feasibility, impact and potential value of a project.
• Having project priorities is important because project managers often balance
many different assignments at the same time. They have a limited amount of
time and financial resources and need to allocate those resources based on
their priorities to satisfy their clients and meet company goals.ntial value of a
project.
 What is project prioritization?

• Project prioritization is the process of determining the best order for

completing a group of projects or tasks. It may be based on criteria like how
the work impacts business or financial goals, organizational risk, staff
availability, and/or potential for success.
• In general, we usually see 3 levels of prioritization in project management:
• Strategic prioritization works at the organizational level to move the
company forward to reach its mission, vision, and goals.
• Project prioritization is done either by a PMO who oversees a portfolio of
projects or by individuals and/or teams who juggle multiple projects.
• Task prioritization zooms into the work happening in a specific project,
whether it’s for an internal team, external client, or personal project.
How to develop project priorities
1. Determine your strategic goals
2. Prioritize each measurement
3. Create a scoring system
4. Compare value to resources
5. Review the risk of each project
6. Assess urgency level
7. Consider your personal preferences
8. Create a balance of high-priority and low-priority items
9. Delegate when necessary
10. Reject projects that don't align with your needs
11. Be prepared to make adjustments
Tips for creating effective project priorities
• Explain your rationale: When discussing your priorities with your team,
explain why each project is in a certain position on the priorities list and
allow everyone to have input about their project priorities.
• Write your priorities down: Once you decide on an order of priorities,
make a list with deadlines for each priority. Consider using color coding
and other organization tools to help keep everything sorted.
• Prioritize tasks within projects: Along with developing a priority
system for entire projects, create a method for prioritizing individual
assignments, tasks and deliverables for each project.
• Assess your system regularly: Frequently evaluate the effectiveness of
how you select projects for your team and prioritize workflows. Compare
their expected value to the actual value they provide, rate team efficiency
and review other metrics to determine if you need to make any changes.
 Responsibility Assignment Matrix (RAM) in project management

• A responsibility assignment matrix (RAM) in project management, also known as a

RACI chart or RACI matrix, details all the necessary stakeholders and clarifies responsibilit
amongst cross-functional teams and their involvement level in a project. RACI stands for
Responsible, Accountable, Consulted, and Informed and each letter corresponds to a team
member.
• A RAM in project management should be referred to by all parties throughout a project
because it helps plan an individual’s roles and responsibilities before work begins. A RACI
matrix ensures all stakeholders know who is responsible for completing a task or getting
feedback on deliverables.
• The four roles are broken down as follows:
• Responsible: The person(s) completing the task
• Accountable: The team member coordinating the actions, making decisions, and delegating
to those responsible for the task
• Consulted: The person(s) who will be communicated with regarding decisions and tasks
Responsibility Assignment Matrix
Responsibility Assignment Matrix
 Estimate Project Time and Cost
No matter the size or budget, project estimation can be a daunting task. To create a workable
estimate, you need to know your team, deliverables, tasks, and process like the back of your
hand. You also have to be comfortable asking questions to figure out the things you don’t know.

What is project estimation?

Project estimation is the process of forecasting the time, cost, and resources needed to deliver a
project. It typically happens during project initiation and/or planning and takes the project’s
scope, deadlines, and potential risks into account.

Why is cost estimation important in project management?

• Every business has a budget and wants to know if a project is worth the costs before they
invest in it.
• A project estimate gives you and your stakeholders a general idea of how much time, effort,
and money it’ll take to get the job done. That makes it easier to build a feasible project budget
and plan so you can set your team and organization up for success.
7 easy steps of estimate project cost and time in

1. Know your team’s expertise & job responsibilities

2. Understand how your company's PM process works
3. Study project estimation techniques and trends
4. Use historical data to create better project estimates
5. Ask detailed project questions to improve cost estimation
6. Use a WBS to get granular with your estimate
7. Assign hourly estimates to tasks and people in TeamGantt