A project is defined by the Project Management Institute (PMI), as a temporary Endeavour undertaken to create a unique product or service”. In lay person terms a project is a grouping of tasks with a specified start and end date, a specific and defined objective, a budget and resources assigned to the effort.
A project is one time event that creates or manages change. Either you are implementing something new such as a new program, a new system or you are enhancing existing programs or systems. Repetitive task or performing the same task again and again is not by definition projects.
To manage a project, a company or authority has to set up a project organization, which can supply the resources for the project and service it during its life cycle.
There are three main types of project organizations:
1. Functional;
2. Matrix;
3. Project or task force.
Functional Organization: This type of organization consists of specialist or functional departments each with their own departmental manager responsible to one or more directors. Such an organization is ideal for routine operations where there is little variation of the end product. Functional organizations are usually found where items are mass produced, whether they are motor cars or sausages. Each department is expert at its function and the interrelationship between them is well established.
In this sense a functional organization is not a project-type organization at all and is only included because when small, individual, one-off projects have to be carried out, they may be given to a particular department to manage. For projects of any reasonable size or complexity, it will be necessary to set up one of the other two types of organizations.
Matrix Organization: This is probably the most common type of project organization, since it utilizes an existing functional organization to provide the human resources without disrupting the day-to-day operation of the department. The personnel allocated to a particular project are responsible to a project manager for meeting the three basic project criteria, time, cost and quality.
The departmental manager is, however, still responsible for their ‘pay and rations’ and their compliance with the department’s standards and procedures, including technical competence and conformity to company quality standards. The members of this project team will still be working at their desks in their department, but will be booking their time to the project. Where the project does not warrant a full-time contribution, only those hours actually expended on the project will be allocated to it.
Project Organization: Project Organization is a structure that is specifically designed for executing projects. It is specifically tailored to meet the demands of complex projects by isolating unique work and maintaining a strong focus on completing the project. Once the project is completed, this structure disbands. This structure is effective in maintaining dedicated resources throughout the life of the project.
The major criticism of this structure is that it is inefficient in transferring technology and the use of resources. Also, by the time the members actually begin acting as a cohesive team, the project is over and the organization dissolves. Since this project has dedicated resources throughout its life, major inefficiency ensues when there are underutilized employees during certain parts of the project.
Project objectives define target status at the end of the project, reaching of which is considered necessary for the achievement of planned benefits. They can be formulated as S.M.A.R.T.E.R;
1. Specific
2. Measurable (or at least evaluable) achievement
3. Achievable (recently Acceptable is used regularly as well)
4. Realistic (given the current state of organizational resources)
5. Time terminated (bounded)
6. Ethical and Recorded
The evaluation (measurement) occurs at the project closure. However a continuous guard on the project progress should be kept by monitoring and evaluating. It is also worth noting that SMART or SMARTER is best applied for incremental type innovation projects. For radical type projects it does not apply as well. Goals for such projects tend to be broad, qualitative, stretch/unrealistic and success driven.
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