By Kaylen Burns on July 27 2018 14:23:29
Growth hungry small businesses today in the UK and indeed throughout the world face the challenge of balancing two competing objectives. Firstly, businesses must maintain and standardise current business processes in order to give your business the chance to get really good at what it does through experience curve effects. Greater business efficiency normally translates into a better customer experience and higher profits. Secondly, businesses must transform business operations in order to survive and compete in the future. How well we are able to achieve the right balance for our business will ultimately determine if we survive and go on to thrive or go the way of so many small businesses into market irrelevancy and insolvency.
Functional Organizational Structure. These firms are organized into functional divisions based on primary functions such as engineering, human resources, finance, IT, planning and policy. Each different functional division operates independently and isolated groups of workers in a division report to a functional manager. The functional manager generally both allocates and monitors the work and carries out tasks such as performance evaluation and setting payment levels. In this model project managers have very limited authority. Functional organizations are set up for ongoing operations rather than projects and so this organizational structure is often found in firms whose primary purpose is to produce standardized goods and services.
Think about your own experience. Is it difficult to get traction on your projects? Are there numerous layers of authority that you have to navigate to get approvals for basic tasks? Does your budget get cut because of competition for limited funding? Do your projects lose out in favor of day-to-day routine operations? And you thought it was something you were doing, or failing to do! Well it may have been, but it is more likely that you are feeling the effects of the organizational structure within which you work. Understanding your working environment better will help you to rise above organizational issues and smooth the way to successful project management.
Project management practices take more time. Having a process to follow may add time to the duration of an activity. Doing something properly will almost always take a little bit more time than adopting a slapdash approach. However, if you where building a house, would you rather have a quality end result that took a little longer, or would you prefer to have it done quickly but with lots of problems? Given that poorly executed projects can be completely de-rail a small business if they go badly, doing it well is essential, and PM processes help ensure things are done well.
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