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Organizational systems refer to the structure, policies, procedures, and culture within an organization that influence project management practices. Project governance involves the framework and processes that guide decision-making, accountability, and control within a project.
Methods:
- Functional Organization: Projects are executed within functional departments, and project managers have limited authority.
- Matrix Organization: Project managers have a higher level of authority, and resources are shared between functional departments and projects.
- Projectized Organization: Projects are the primary focus, and project managers have full authority over resources.
Types:
- Project Management Office (PMO): A centralized unit within an organization responsible for standardizing project management practices, providing support, and ensuring alignment with organizational objectives.
- Governance Committees: Committees composed of stakeholders who provide oversight and guidance on projects, ensuring they align with strategic goals and follow established policies.
Advantages:
- Standardized Practices: Organizational systems and project governance help establish standardized project management practices, leading to consistency and efficiency.
- Clear Roles and Responsibilities: They define roles and responsibilities within projects, reducing confusion and improving accountability.
- Alignment with Organizational Objectives: Project governance ensures that projects align with the strategic goals and priorities of the organization.
- Risk Management: Governance structures facilitate the identification and mitigation of risks at the organizational level.
Disadvantages:
- Bureaucracy: Organizational systems and project governance can introduce bureaucratic processes that may slow down decision-making and project execution.
- Resistance to Change: Implementing new governance structures or processes can face resistance from employees who are accustomed to existing practices.
- Overhead: Maintaining a project governance framework requires time, resources, and administrative effort.
Applications:
- Large-scale Organizations: Organizational systems and project governance are particularly relevant in large organizations with multiple projects and departments.
- Government Agencies: Government entities often have well-defined governance structures to ensure compliance, transparency, and accountability in projects.
Examples:
- Implementation of a PMO: A company establishes a Project Management Office to standardize project management practices, provide project oversight, and support project managers across various departments.
- Creation of a Governance Committee: A government agency forms a governance committee composed of representatives from different departments to review and approve major projects, ensuring compliance with regulations and strategic objectives.
References:
- "Project Governance: A Practical Guide to Effective Project Decision Making" by Ross Garland
- "Project Management Institute (PMI) Governance of Portfolios, Programs, and Projects: A Practice Guide"
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