By Coretta Hunter on July 26 2018 19:31:42
Because the matrix structure gives authority to both project managers and functional managers the outcome is to provide a more seamless division of labor and ultimately to build a stronger team culture. However, the potential for conflict between functional managers and project managers still exists because there is still resource conflict. Everyone who is on a project team has two bosses - their functional manager as well as their project manager.
Projectised Organizational Structure. In a projectised organization the project manager has full authority over the project. This includes the authority to set priorities, apply resources, and to direct the work of the project team. All members of the team report directly to the project manager and everybody is assigned to a project. After completion of the project, resources will be re-assigned to another project. This type of structure is common in firms that work on size-able, long-term projects, such as in the construction industry.
It is clear that projectised organizations make it easier to run projects because the entire structure is set up for that purpose. But if you are managing a project within other organizational structures, then recognizing and understanding the impacts will raise your awareness of the potential project management pitfalls, so that you can be proactive about resolving them. Communication, conflict resolution and team building will be key to your success.
Despite the obvious need for a project management (PM) approach, most small businesses do not bother. This constitutes a huge missed opportunity as effective project management impacts the bottom line. For example, research by the CBP shows that project management improvement initiatives improve project performance by up to 50% for the first project and can continue for each new project if the business offers ongoing project management tools and support. We could emphasise this point further by citing the Standish Group, who in their CHAOS Report conservatively estimates that 20% of money spent on projects is wasted because companies do not have a consistent approach to project management.
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