WHEN TO USE PROJECT

MANAGEMENT?
When you want to provi de an
organizational design and strategy
to bring an organizational focus to
ad hoc act i vi t i es needed t o
EFFECT CHANGE I N
THE ORGANI ZATI ON.
WHY CHANGE?
Because those who depend
solely on traditional boundaries
ensure obsolescence.
obsolescence (n)
The process of becoming obsolete;
falling into disuse or becoming out of
date.
Use project management in a business process change.
A BUSINESS PROCESS
CHANGE, in its most basic form,
provides for an outcome that
reflects the need to change the way
in which people work together.
A BUSINESS PROCESS
CHANGE, can be defined in terms
of performance objectives and goals
which must be defined and must be
capable of being measured.
Major components of a process change:
Designation of a business process work flow.
Job design.
Organizational redesign.
Redesignation of individual and collective roles of
people.
Utilization of new or improved technology.
Major components of a process change:
Modified management system to include changes in
objective, goals, policies, procedures and rules for the
use of resources.
Cultural changes to include modified behavior patterns
by the people involved.
Improved effectiveness and efficiency in the design and
execution of strategies.
Business process strategy provide for the
simultaneous design and execution of the
manner in which resources are used to
produce products and services.
If designed and executed properly, a
business process strategy can:
Integrate strategy for the creation of value in the
enterprise at lower cost and higher quality.
Provide greater customer satisfaction.
Create new policies, procedures, and the manner in
which roles are carried out.
Improve the morale and motivation of people.
Result in new skills, improved utilization of resources,
and streamlined operations.
Improve productivity, quality, and organizational
capabilities.
Provide new knowledge, skills, and attitudes of people.
Improve competitive advantage.
Improve stakeholder and shareholder statisfaction.
In the development of an
organization, there needs
t o be a f ocal poi nt ,
through which resources
c a n b e d i r e c t e d .
A PROJECT MANAGER is needed to provide the
leadership and management skills to bring about
the needed changes.
Use project management in crisis management.
W.
Stephen
Sawle
He believes that project
management and crisis
management skills can be
combined to deal more
effectively with crisis
situations.
Use project management to support factory operations.
Changes created an environment that is too
multidisciplinary to be organized solely along
traditional functional entities.
Factory managers need a management philosophy
that allows them to bring an organizational focus to
the management of resources dedicated to
change.
Use project management to deactivate an existing venture.
The use of project-driven strategy to
deactivate and reuse or dispose
facilities helps to maximize the return
on investment.
Chrysler
Corporation
STRATEGI C PLANNI NG
est abl i shes t he mi ssi on,
objectives, goals, and strategies
for where the organi zati on
want s t o go i n t he f ut ure.
STRATEGIC DESIGN AND
I MPL EME NTAT I ON a r e
concer ned wi t h how t he
organization is going to get
there through the planned use
o f r e s o u r c e s .
STRATEGIES
are things such as short-term action plans, policies,
procedures, resource allocation directions, programs,
and projects.
PROGRAMS
are resource-consuming sets of organizational
resources which have a common purpose.
A program could be composed of such projects:
Training project
Plant and equipment modernization project
Professional development management project
CAD project
When an activity is too large for
any one functional department to
manage, a single focal point must
i ntegrate the functi onal efforts
through a matrix organizational
d e s i g n .
Stanley M.
Davis
&
Paul R.
Lawrence
One should turn to a project only
when the following conditions
simultaneously exist:
1. Outside pressure require that intensive attention be focused
on two or more different kinds of organizational tasks
simultaneously.
2. When tasks become so uncertain, complex, and
interdependent that the information-processing load
threatens to overwhelm competent managers.
3. When the organization must achieve economies of scale and
high performance through the shared and flexible use of
scarce human resources.
PROJECTS
are resource-consuming activities used to implement
organizational strategies, achieve goals, and contribute
to the accomplishment of the organizational mission.
If one is to use project management in his strategy, he should
determine if the proposed project could be associated with:
The core product line.
A proposed product, service, or process design and
development effort.
The development of resources to support the
enterprises product lines.
Daitan, R B.
BSCOE 4-4