Organizational Influences and
Project Life Cycle
Chapter 2
Project Management ( BUS 445)
Organizational influences
• What are Organizational influences?
Organizational influences directly affect a project’s
success—either positively or negatively. These
influences include the organization’s culture, its
structure and its general style.
Organizational Culture:
• Culture is an important consideration because
it alone can determine the success of a
project.
• Organizational culture is shaped by the
common experiences of members of the
organization and most organization have
developed unique cultures over time by
practice and common usage.
Organizational communications
• Project management success in organization is
highly dependent on an effective
organizational communication style, especially
in the face of globalization of the project
management profession.
Organizational Structures :
• Firm strcture is another organizational
influence. It might be:
* a functional organization
* a projectized organization
* a matrix organizations
Functional Organization
• This organization is the most common form of
an organization. Organizational departments
are grouped by areas of specialization within
different functions. In these organizations,
projects generally occur in silo environments,
i.e. within the same function. Team members
complete the project work over and above
their responsibilities to normal departmental
work. Communication primarily occurs within
the same function.
Functional Organization
Projectized Organization
• In a project-centric organization environment,
the entire company is organized by projects,
and the project manager is in control of the
projects. Individuals or employees are
assigned to projects and report into a project
manager. Once the project is over, they need
to be assigned to another project.
Communication primarily occurs within the
same project.
Projectized Organization
Matrix Organizations
In a matrix organization, the team members
report into two bosses: the functional
manager and the project manager.
Communication goes from team members to
both bosses. The matrix organization is
created to get the best potential from both
functional and project-centric types of
organizational structure. Team members have
departmental work and they also do project
work.
Weak Matrix Organization
Balanced Matrix Organization
Strong Matrix Organization
Organizational Influences
Project Stakeholder and Governance
• Project Stakeholders
*All members of the project team as well as all
interested entities that are internal or external to the
organization or positive and negative and performing
and advising stakeholders in order to determine the
project requirements and expectations of all parties
involve.
*Stakeholders have a varying level of responsibilities
and authority when participating on project
Project Stakeholder and Governance
• Project Success
*The success of the project should be measured in
terms of completing the project within the
constraints of scope, time, cost, quality, resources,
and risk as approved between the project manager
and senior management.
*Project manager is responsible and accountable for
setting realistic and achievable boundaries for the
project within the approved baseline.
Project Stakeholder and Governance
• Project Team
*Includes the project manager and the group of
individuals who act together in performing the work
of the project to achieve its objective
*Project team includes: project management staff ,
project staff, supporting experts, user and customer
representatives, sellers, Business partner members.
Project Stakeholder and Governance
 Composition of project teams:
*It based on factors such as organization
culture, scope, and location.
*Basic project team composition:
- Dedicated
-Part-time
Project Life Cycle
• Project life cycle
It’s series of phases that a project passes through
from its initiation to closure.
Project life cycle defines:
- What technical work to do in each phase
- What deliverables are to be generated in each
phase and how they are reviewed, verified and
validated
- Who is involved in each phase
- How to control and approve each phase
The Project Life Cycle Structure
Common characteristics for life cycles:
• - Phases are generally sequential
- Cost and staffing levels are low at the start, peak
during intermediate phase and drop rapidly on
closing phase.
- Highest level of uncertainty, greatest risk of
failing to achieve the objectives at the start of
project
- Highest influence of stakeholders on project's
product and final cost at the start of project
because the cost of change increase as project
progressing.
Characteristics of The Project Life Cycle
Project Phases
Project may be divided into many number of phases
• A project phase is a collection of logically related
project activities that culminated in the completion
of one or more deliverables.
• The phase structure allows the project to be
segmented into logical subsets for ease of
management, planning, and control.
• For reason of size, complexity, level of risk and cash
flow constraints, project phases can be subdivided in
to sub phases aligned with one or more specific
deliverables for monitoring and control.
Project Phases
Phase-to-Phase Relationship
When projects have more than one phase, the phases are
part of generally sequential process designed to ensure
proper control of the project and attain the desired
product, service or results.
 Sequential relationship:
The phase starts only when the previous phase is completed.
 Overlapping relationship:
A phase starts prior to completion of the previous one.
Project Phases
 Predictive Life Cycles
 known as fully plan driven
 They are ones on which the project scope,
and the time and cost required to deliver that
scope as early in the project life cycle as
practically possible.
Project life cycle and product life cycle
 Product life cycle starts with the business
plan, through ideas to product, ongoing
operations and product divestment.
The project life cycle goes through a series of
phases to create the product.