Top-Level and Mid-Level Managers’ Perspectives
Thomas Sy, College of Business Administration, California State University, Long Beach Laura Sue D’Annunzio, A.T. Kearney Inc
sing surveys, inter-views, and work-shops with 294 top-level and mid-level managers from seven major multinational corporations in
six industries, we identified the top five contemporary challenges of the matrix organizational form:
(1) misalignedgoals,
(2) unclear roles andresponsibilities,
(3) ambiguousauthority,
(4) lack of a matrixguardian, and
(5) silo-focused employees.
We also provide managers with the best practices that will improve their matrix organizations.
Interest in matrix organizational structures peaked during the 1970s and 1980s.Since that time, research and literature on the
matrix have dropped noticeably.Simultaneously, organizations continue to adopt the matrix as a viable alternative to
deal with their increasingly complex
Overview of the Matrix
By its simplest definition, the matrix is a grid-like organizational
Matrix Forms structure that allows a company to address multiple business dimensions using multiple command structures. The matrix organizational form emerged in the aerospace industry during the 1960s as government contracts required a project-based system linked directly to top management (Knight, 1977). While the matrix can take many forms, three common variants are the functional matrix, balanced Functional Balanced Project matrix, and project matrix (see Exhibit 1) (Burns, 1989; Galbraith,Matrix 1971, 1973; Kolodny, 1979; Larson & Gobeli, 1987). Matrix organizational structures are comprised of multiple business dimensions.
Basic matrix structures have two dimensions (e.g., function by prod-
Employees remain Classic model by Employees moves full members
which the matrix between function matrix, geography by product matrix). More complex matrix of functional form is known.
al departments
structures could encompass three or more dimensions. For example,
departments and projects and a company could be structured not only to focus on product and Employees are respectively retain Processes and officially function, but also to deal with geographic differences.
Wednesday, June 10, 2009
Monitoring and Controlling
Monitoring and Controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan.
Monitoring and Controlling Process Group Processes.[16]Monitoring and Controlling includes:
Measuring the ongoing project activities (where we are);
Monitoring the project variables (cost, effort, ...) against the project management plan and the project performance baseline (where we should be);
Identify corrective actions to properly address issues and risks (How can we get on track again);
Influencing the factors that could circumvent integrated change control so only approved changes are implemented
In multi-phase projects, the Monitoring and Controlling process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan.
Project Maintenance is an ongoing process, and it includes:
Continuing support of end users
Correction of errors
Updates of the software over time
Monitoring and Controlling cycleIn this stage, auditors should pay attention to how effectively and quickly user problems are resolved.
Over the course of any construction project, the work scope changes. Change is a normal and expected part of the construction process. Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and impacts from third parties, to name a few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually constructed. This is referred to as Change Management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the finished work. The record is made on the contract documents – usually, but not necessarily limited to, the design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, “asbuilts.” The requirement for providing them is a norm in construction contracts.
When changes are introduced to the project the viability of the project has to be assessed again. It is important not to lose sight of the initial goals and targets of the projects. When the changes accumulate, the forecasted end result may not justify the proposed investment.
Monitoring and Controlling Process Group Processes.[16]Monitoring and Controlling includes:
Measuring the ongoing project activities (where we are);
Monitoring the project variables (cost, effort, ...) against the project management plan and the project performance baseline (where we should be);
Identify corrective actions to properly address issues and risks (How can we get on track again);
Influencing the factors that could circumvent integrated change control so only approved changes are implemented
In multi-phase projects, the Monitoring and Controlling process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan.
Project Maintenance is an ongoing process, and it includes:
Continuing support of end users
Correction of errors
Updates of the software over time
Monitoring and Controlling cycleIn this stage, auditors should pay attention to how effectively and quickly user problems are resolved.
Over the course of any construction project, the work scope changes. Change is a normal and expected part of the construction process. Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and impacts from third parties, to name a few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually constructed. This is referred to as Change Management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the finished work. The record is made on the contract documents – usually, but not necessarily limited to, the design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, “asbuilts.” The requirement for providing them is a norm in construction contracts.
When changes are introduced to the project the viability of the project has to be assessed again. It is important not to lose sight of the initial goals and targets of the projects. When the changes accumulate, the forecasted end result may not justify the proposed investment.
Monitoring and Controlling
Monitoring and Controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan.
Monitoring and Controlling Process Group Processes.[16]Monitoring and Controlling includes:
Measuring the ongoing project activities (where we are);
Monitoring the project variables (cost, effort, ...) against the project management plan and the project performance baseline (where we should be);
Identify corrective actions to properly address issues and risks (How can we get on track again);
Influencing the factors that could circumvent integrated change control so only approved changes are implemented
In multi-phase projects, the Monitoring and Controlling process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan.
Project Maintenance is an ongoing process, and it includes:
Continuing support of end users
Correction of errors
Updates of the software over time
Monitoring and Controlling cycleIn this stage, auditors should pay attention to how effectively and quickly user problems are resolved.
Over the course of any construction project, the work scope changes. Change is a normal and expected part of the construction process. Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and impacts from third parties, to name a few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually constructed. This is referred to as Change Management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the finished work. The record is made on the contract documents – usually, but not necessarily limited to, the design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, “asbuilts.” The requirement for providing them is a norm in construction contracts.
When changes are introduced to the project the viability of the project has to be assessed again. It is important not to lose sight of the initial goals and targets of the projects. When the changes accumulate, the forecasted end result may not justify the proposed investment.
Monitoring and Controlling Process Group Processes.[16]Monitoring and Controlling includes:
Measuring the ongoing project activities (where we are);
Monitoring the project variables (cost, effort, ...) against the project management plan and the project performance baseline (where we should be);
Identify corrective actions to properly address issues and risks (How can we get on track again);
Influencing the factors that could circumvent integrated change control so only approved changes are implemented
In multi-phase projects, the Monitoring and Controlling process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan.
Project Maintenance is an ongoing process, and it includes:
Continuing support of end users
Correction of errors
Updates of the software over time
Monitoring and Controlling cycleIn this stage, auditors should pay attention to how effectively and quickly user problems are resolved.
Over the course of any construction project, the work scope changes. Change is a normal and expected part of the construction process. Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering and impacts from third parties, to name a few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually constructed. This is referred to as Change Management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the finished work. The record is made on the contract documents – usually, but not necessarily limited to, the design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, “asbuilts.” The requirement for providing them is a norm in construction contracts.
When changes are introduced to the project the viability of the project has to be assessed again. It is important not to lose sight of the initial goals and targets of the projects. When the changes accumulate, the forecasted end result may not justify the proposed investment.
Extreme Project Management
In critical studies of Project Management, it has been noted that several of these fundamentally PERT-based models are not well suited for the multi-project company environment of today.[citation needed] Most of them are aimed at very large-scale, one-time, non-routine projects, and nowadays all kinds of management are expressed in terms of projects.
Using complex models for "projects" (or rather "tasks") spanning a few weeks has been proven to cause unnecessary costs and low maneuverability in several cases. Instead, project management experts try to identify different "lightweight" models, such as Agile Project Management methods including Extreme Programming for software development and Scrum techniques.
The generalization of Extreme Programming to other kinds of projects is extreme project management, which may be used in combination with the process modeling and management principles of human interaction management.
Using complex models for "projects" (or rather "tasks") spanning a few weeks has been proven to cause unnecessary costs and low maneuverability in several cases. Instead, project management experts try to identify different "lightweight" models, such as Agile Project Management methods including Extreme Programming for software development and Scrum techniques.
The generalization of Extreme Programming to other kinds of projects is extreme project management, which may be used in combination with the process modeling and management principles of human interaction management.
Critical Chain Project Management
Critical Chain Project Management (CCPM) is a method of planning and managing projects that puts more emphasis on the resources required to execute project tasks. It is an application of the Theory of Constraints (TOC) to projects. The goal is to increase the rate of throughput (or completion rates) of projects in an organization. Applying the first three of the five focusing steps of TOC, the system constraint for all projects is identified as resources. To exploit the constraint, tasks on the critical chain are given priority over all other activities. Finally, projects are planned and managed to ensure that the critical chain tasks are ready to start as soon as the needed resources are available, subordinating all other resources to the critical chain.
For specific projects, the project plan should undergo Resource Leveling, and the longest sequence of resource-constrained tasks is identified as the critical chain. In multi-project environments, resource leveling should be performed across projects. However, it is often enough to identify (or simply select) a single "drum" resource—a resource that acts as a constraint across projects—and stagger projects based on the availability of that single resource
For specific projects, the project plan should undergo Resource Leveling, and the longest sequence of resource-constrained tasks is identified as the critical chain. In multi-project environments, resource leveling should be performed across projects. However, it is often enough to identify (or simply select) a single "drum" resource—a resource that acts as a constraint across projects—and stagger projects based on the availability of that single resource
The traditional approach
A traditional phased approach identifies a sequence of steps to be completed. In the "traditional approach", we can distinguish 5 components of a project (4 stages plus control) in the development of a project:
Typical development phases of a projectProject initiation stage;
Project planning or design stage;
Project execution or production stage;
Project monitoring and controlling systems;
Project completion stage.
Not all the projects will visit every stage as projects can be terminated before they reach completion. Some projects don't have planning and/or monitoring stages. Some projects will go through steps 2, 3 and 4 multiple times.
Many industries utilize variations on these stages. For example, in bricks and mortar architectural design, projects typically progress through stages like Pre-Planning, Conceptual Design, Schematic Design, Design Development, Construction Drawings (or Contract Documents), and Construction Administration. In software development, this approach is often known as the waterfall model[14], i.e., one series of tasks after another in linear sequence. In software development many organizations have adapted the Rational Unified Process (RUP) to fit this methodology, although RUP does not require or explicitly recommend this practice. Waterfall development can work for small tightly defined projects, but for larger projects of undefined or unknowable scope, it is less suited. The Cone of Uncertainty explains some of this as the planning made on the initial phase of the project suffers from a high degree of uncertainty. This becomes especially true as software development is often the realization of a new or novel product, this method has been widely accepted as ineffective for software projects where requirements are largely unknowable up front and susceptible to change. While the names may differ from industry to industry, the actual stages typically follow common steps to problem solving — "defining the problem, weighing options, choosing a path, implementation and evaluation."
Typical development phases of a projectProject initiation stage;
Project planning or design stage;
Project execution or production stage;
Project monitoring and controlling systems;
Project completion stage.
Not all the projects will visit every stage as projects can be terminated before they reach completion. Some projects don't have planning and/or monitoring stages. Some projects will go through steps 2, 3 and 4 multiple times.
Many industries utilize variations on these stages. For example, in bricks and mortar architectural design, projects typically progress through stages like Pre-Planning, Conceptual Design, Schematic Design, Design Development, Construction Drawings (or Contract Documents), and Construction Administration. In software development, this approach is often known as the waterfall model[14], i.e., one series of tasks after another in linear sequence. In software development many organizations have adapted the Rational Unified Process (RUP) to fit this methodology, although RUP does not require or explicitly recommend this practice. Waterfall development can work for small tightly defined projects, but for larger projects of undefined or unknowable scope, it is less suited. The Cone of Uncertainty explains some of this as the planning made on the initial phase of the project suffers from a high degree of uncertainty. This becomes especially true as software development is often the realization of a new or novel product, this method has been widely accepted as ineffective for software projects where requirements are largely unknowable up front and susceptible to change. While the names may differ from industry to industry, the actual stages typically follow common steps to problem solving — "defining the problem, weighing options, choosing a path, implementation and evaluation."
Project management
Project management is the discipline[1] of planning, organizing and managing resources to bring about the successful completion of specific project goals and objectives.
A project is a finite endeavor--having specific start and completion dates--undertaken to meet particular goals and objectives, usually to bring about beneficial change or added value. This finite characteristic of projects stands in contrast to processes[2], or operations--which is repetitive, permanent or semi-permanent functional work to produce products or services. In practice, the management of these two systems is often found to be quite different, and as such requires the development of distinct technical skills and the adoption of separate management.
The primary challenge of project management is to achieve all of the project goals[3] and objectives while honoring the preconceived project constraints.[4] Typical constraints are scope, time and budget.[5] The secondary—and more ambitious—challenge is to optimize the allocation and integration of inputs necessary to meet pre-defined objectives
A project is a finite endeavor--having specific start and completion dates--undertaken to meet particular goals and objectives, usually to bring about beneficial change or added value. This finite characteristic of projects stands in contrast to processes[2], or operations--which is repetitive, permanent or semi-permanent functional work to produce products or services. In practice, the management of these two systems is often found to be quite different, and as such requires the development of distinct technical skills and the adoption of separate management.
The primary challenge of project management is to achieve all of the project goals[3] and objectives while honoring the preconceived project constraints.[4] Typical constraints are scope, time and budget.[5] The secondary—and more ambitious—challenge is to optimize the allocation and integration of inputs necessary to meet pre-defined objectives
Event Chains
Event Chains
Events can cause other events, which will create event chains. These event chains can significantly affect the course of the project. For example, requirement changes can cause an activity to be delayed. To accelerate the activity, the project manager allocates a resource from another activity, which then leads to a missed deadline. Eventually, this can lead to the failure of the project.
[edit] Monte Carlo Simulations
Once events and event chains are defined, quantitative analysis using Monte Carlo simulation can be performed to quantify the cumulative effect of the events. Probabilities and effects of risks are used as input data for Monte Carlo simulation of the project schedule[6]. In most real life projects, it is necessary to supplement the information regarding the uncertainties expressed as an event, with distributions related to duration, start time, cost, and other parameters.
[edit] Critical Event Chains
The single events or the event chains that have the most potential to affect the projects are the “critical events” or “critical chains of events.” By identifying critical events or critical chains of events, we can mitigate their negative effects. These critical chains of events can be identified by analyzing the correlations between the main project parameters, such as project duration or cost, and the event chains.
[edit] Performance Tracking with Event Chains
Monitoring the activity's progress ensures that updated information is used to perform the analysis. During the course of the project, the probability and time of the events can be recalculated based on actual data. The main issue with performance tracking is forecasting an activity’s duration and cost if an activity is partially completed and certain events are assigned to the activity. The simple heuristic approach to this problem is to analyze the moment of risk, which is defined as one of the event parameters. Advanced analysis can be performed using a Bayesian approach.
Event Chain Diagrams
Event Chain Diagrams are visualizations that show the relationships between events and tasks and how the events affect each other. The simplest way to represent these chains is to depict them as arrows associated with certain tasks or time intervals on the Gantt chart. Different events and event chains can be displayed using different colors. Events can be global (for all tasks in the project) and local (for a particular task). By using Event Chain Diagrams to visualize events and event chains, the modeling and analysis of risks and uncertainties can be significantly simplified
Events can cause other events, which will create event chains. These event chains can significantly affect the course of the project. For example, requirement changes can cause an activity to be delayed. To accelerate the activity, the project manager allocates a resource from another activity, which then leads to a missed deadline. Eventually, this can lead to the failure of the project.
[edit] Monte Carlo Simulations
Once events and event chains are defined, quantitative analysis using Monte Carlo simulation can be performed to quantify the cumulative effect of the events. Probabilities and effects of risks are used as input data for Monte Carlo simulation of the project schedule[6]. In most real life projects, it is necessary to supplement the information regarding the uncertainties expressed as an event, with distributions related to duration, start time, cost, and other parameters.
[edit] Critical Event Chains
The single events or the event chains that have the most potential to affect the projects are the “critical events” or “critical chains of events.” By identifying critical events or critical chains of events, we can mitigate their negative effects. These critical chains of events can be identified by analyzing the correlations between the main project parameters, such as project duration or cost, and the event chains.
[edit] Performance Tracking with Event Chains
Monitoring the activity's progress ensures that updated information is used to perform the analysis. During the course of the project, the probability and time of the events can be recalculated based on actual data. The main issue with performance tracking is forecasting an activity’s duration and cost if an activity is partially completed and certain events are assigned to the activity. The simple heuristic approach to this problem is to analyze the moment of risk, which is defined as one of the event parameters. Advanced analysis can be performed using a Bayesian approach.
Event Chain Diagrams
Event Chain Diagrams are visualizations that show the relationships between events and tasks and how the events affect each other. The simplest way to represent these chains is to depict them as arrows associated with certain tasks or time intervals on the Gantt chart. Different events and event chains can be displayed using different colors. Events can be global (for all tasks in the project) and local (for a particular task). By using Event Chain Diagrams to visualize events and event chains, the modeling and analysis of risks and uncertainties can be significantly simplified
Event chain methodology
Event chain methodology is an uncertainty modeling and schedule network analysis technique that is focused on identifying and managing events and event chains that affect project schedules. Event chain methodology is the next advance beyond critical path method and critical chain project management.[1].
Event chain methodology helps to mitigate effect motivational and cognitive biases in estimating and scheduling.[2][3] . In many cases, project managers intentionally or unintentionally create project schedules that are impossible to implement[4][5]. The methodology also simplifies the process of defining risks and uncertainties in project schedules, particularly by improving the ability to provide reality checks and to visualize multiple events. Event chain methodology is used to perform more accurate quantitative analysis while taking into account such factors as relationships between different events and actual moments of the events.
Event chain methodology helps to mitigate effect motivational and cognitive biases in estimating and scheduling.[2][3] . In many cases, project managers intentionally or unintentionally create project schedules that are impossible to implement[4][5]. The methodology also simplifies the process of defining risks and uncertainties in project schedules, particularly by improving the ability to provide reality checks and to visualize multiple events. Event chain methodology is used to perform more accurate quantitative analysis while taking into account such factors as relationships between different events and actual moments of the events.
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