The Influence of Organisational Systems on your Project

An organizational system is something that encompasses the whole organisation and involves things like the culture, the governance frameworks in place and the management elements that are already in place.

There are a few things that influence the organisational structure of a company.

The first is governance frameworks.

With governance frameworks we ask, what are the rules that we have in place? We might have rules, policies, procedures, norms, even just cultural norms that are accepted within an organization. Existing relationships can also be very important, for example Billy might have an existing relationship with Anne and he can say: “Hey Anne could you just do this for me – I know it usually takes four weeks, but maybe you could do it for me this time?” And that will happen if they have a really great existing relationship within the organization.

You might have existing processes in place which apply for projects, programs and portfolios, where lots of projects will make up one program, and then multiple programs will make up one portfolio.

Management has a very specific role in organizational systems – it is how it works on a daily basis with responsibilities, discipline of action, how much action actually gets done and what happens if it’s not done, unity of direction and unity of command. Ensuring there is one clear strategic direction. Or perhaps everyone’s just sort of going for their own little team and trying to make that work – each company will be different and you may need to adjust. Safety of the people, ensuring optimal morale, ensuring clear security of work positions – all of these things are part of the management when we’re managing in within an organizational system.

The Project Manager’s Sphere of Influence

Within a company itself there are certain influences on these organizational structures and systems. It starts at the bottom where the influence of the project manager is very low. If we’ve got a project that’s just organic, where has been kicked off between a bunch of people and it’s not really formal – maybe we’re just trying to make an improvement in some way – then usually the influence of the project manager will be quite low.

But it goes up as we go into these different structures, and a functional system is where we have a functional manager who is leading a project and trying to do something, usually within their own department. They’re actually the one in charge. If a project manager comes on board usually they will report to that functional manager, within that particular team.

The influence of the project manager goes up as we move through virtual teams, hybrid teams, Weak, Balanced and Strong matricies. If you’ve got a weak matrix you’ve still got low influence, balanced is where you’ve got a balanced influence usually between the business and the project manager or the project management office, and then the strong matrix is where you have a lot more control and as a project manager you have more directive control over the resources, over the cost, over the scheduling, and all of that is more up to you as opposed to being up to the functional or the BAU environment.

Lastly the Project Management Office is where all of the projects are collected within a PMO and they are brought down the lines specifically within their own governance structures, where everyone has to go through the PMO to get anything done, and they have the most influence in a PMO structure.

– David McLachlan