CGE 671 PETROLEUM PROJECT MANAGEMENT

CHAPTER 2 : PROJECT TEAM

SEM MARCH 2017
CLASS ACTIVITY

If you can choose to work in one of available projects in your company,

describe the characteristics of your project of choice in 5 sentences.
5 minutes
PROJECT IS NOW SELECTED, NOW WHAT?

1. PROJECT STRUCTURE
2. PROJECT MANAGER
3. TEAM MEMBER

= THE PROJECT TEAM

FUNCTIONAL MANAGER VS PROJECT MANAGER

So why cant we use the same manager and system from the functional organization to manage the project?
According to the type of project, there are possibility to not assign a new team to manage a new project.
Advantages will be: No change, Flexibility, In-Depth Expertise, Easy Post-Project transition
But, the disadvantages are : Lack of focus, Poor integration, Slow, Lack of ownership,
NOW THINK OF THE ADVANTAGES OF PROJECTIZED ORGANIZATION?

?
PROJECT STRUCTURE
PROJECTITIS CASE STUDY
PROJECT STRUCTURE
ORGANIZING PROJECT MATRIX ARRANGEMENT

Matrix management is a hybrid organizational form in which a horizontal project management structure is
overlaid on the normal functional hierarchy
Companies apply this matrix arrangement in a variety of different ways. Some organizations set up temporary
matrix systems to deal with specific projects, while matrix may be a permanent fixture in other organizations.
The Balanced matrix can achieve better balance between technical and project requirements, but it is a very
delicate system to manage and is more likely to succumb to many of the problems associated with the matrix
approach.
PROJECT STRUCTURE
SO WHATS THE BEST STRUCTURE?

Depend on project and organization

ORGANIZATION CONSIDERATION : What percentage of core work involve this project?, resource availability?
PROJECT CONSIDERATION : Size, strategic importance, novelty and need for innovation, need for integration,
environmental complexity, budget and time constraints, stability of resource requirements.
FUNCTIONAL MANAGER VS PROJECT MANAGER
AREA
EXPERTISE
AUTHORITHY ON EMPLOYEE
ACCESS TO RESOURCES
RELATIONSHIP WITH SUBORDINATES
WORKING ENVIRONMENT
APPROACH TO SOLVE PROBLEMS
FUNCTIONAL
Expert in func. area
Full authority over employee
Competes for resources with other
func.dept
Know subordinates very well
Functional environment is fairly
stable, people are comfortable in
their jobs.
Applies analytical approach
PROJECT
May not be expert in any area
May have limited authority
Competes for resources with other
projects
May not have known subordinates
very long
Project environment is temporary &
people expect changes
Applies system apprach
PROJECT MANAGER

Senior management will usually decided on the PROJECT MANAGER.

This PM will be responsible to make sure that the project is properly planned,
implemented and completed.
PROJECT MANAGER - ROLES

FACILITATOR
COMMUNICATOR
POLITICIAN
NEGOTIATOR
PROJECT MANAGER AS FACILITATOR

Mainly: PM need to ensure that those who work on the project has the appropriate knowledge and resources
including time to accomplish their assigned responsibility.
No more traditional authoritarian management. Facilitation is more effective as a managerial style.
PM need to use SYSTEM APPROACH to facilitate the project. Compared to ANALYTICAL APPROACH, system
approach understand the influences and the impacts of each subtasks toe the project and its deliverables.
An unfortunate condition in managing a project is called Micromanagement. This is where the program manager
guesses every decision the PM makes. How should you react?
PROJECT MANAGER AS A COMMUNICATOR

PM must effectively communicate with senior management, client, project team, and other participants
(vendors, dept. managers, etc) as needed (which is frequently).
PM communication path :

Solid lines denote PM communication channels

Dotted lines denote communication path of other parties-at-interest in the project.
Problems arise when some of this parties propagate communications that may mislead other parties, or directly
conflicted with the messages. PM need to introduce some order in this communication mess.
PROJECT MANAGER AS A COMMUNICATOR CONT..

Today, solution can be : VIRTUAL PROJECT MANAGER

DISCUSS
How this can succeed? What problems might arise?
What other problems might be caused by poor communication?: SCOPE CREEP.
.
PROJECT MANAGER AS A POLITICIAN

PM must know how to get things done,how to work the system, how to get people to cooperate, how to
influence others.
PROJECT MANAGER AS A NEGOTIATOR

Skilled at getting what is needed for the project to succeed:

Negotiate with senior management for more resources

Negotiate with functional manager to get a particular project team member or to use a functional resource

Negotiate with vendor for shorter lead time

Negotiate with client about project goal changes

RESPONSIBILITIES TO THE PROJECT

Acquiring resources. What do you think will be the problem?

Fighting Fires and Obstacles. What happened then if firefighter enjoys the fire?
Providing Leadership and making trade-offs - (cost, schedule, scope)
Negotiating, resolving conflicts and persuading
PROJECT MANAGER NEEDS TO?
PROJECT MANAGER JOB AREA

Project Project
Integration Procurement

Risk
Scope
Management
Management

People
Schedule
Management
Management
Cost Quality
Management Management
Project Integration

At the beginning of a project, its important to develop a solid

understanding of the projects goals, and how the various elements will
fit together for a successful outcome.

Project manager has to perform project analysis and develop a

comprehensive
Project Initiation Document, critical and high-level document, which covers
the basic project needs and outcomes, so that everyone can understand
the projects goals.

Scope Management
Projects have a nasty habit of expanding as they go along, making it
impossible to hit deadlines. To control this expansion, its essential to
define the scope at the very start of your project based, and then manage
it closely against this signed-off definition.

For example, in case that a client wants to change the scope

during project development because of some new functionality,
project manager has to re-negotiate terms and conditions, and
prepare new documentation for signing.
Schedule Management

A projects scope can easily grow, and so can the time needed to complete
it.
For a project to be completed successfully, despite all of the unknowns,
its important to clearly define the sequence of activities, estimate the
time needed for each one, and build in sufficient contingency time to allow
for the unexpected.
Project can be very complex, particularly when different people do different
things and their work output becomes the input for another piece of work.
Thats why its necessary to monitor every activity, just as much as the
whole project.
Cost Management
To determine what a project will cost, project manager must be
systematic with the estimation, budgeting, and controlling.

Many project decisions will have an impact on cost. Therefore, its

important to understand whats driving the costs and develop a system
for monitoring the projects financial performance.
Managing project finances requires many tools and strategies, and its
very important to set up a reliable control system to keep track of the
costs and required changes.
Quality Management

Projects must be delivered not only on time and on budget, but also in
according to specification (this is what quality means in project
management).
Its a project managers responsibility to ensure that project outcomes, at
every stage of the project, are consistent with clients needs. Never waste
precious time and resources trying to achieve an inappropriate level of quality.

People Management
The people on the project team can make or break the final outcome.
Getting the right mix of interpersonal and political skills is just as important
as the right technical skills.
PM must keep the project team on track and working productively, also be
prepared to help people through the Forming, Storming, Norming and
Performing stages that so many teams go through.
Risk Management

Project managers must understand which of the risks could significantly

impact their plans.

An Impact / Probability Chart is a good way to deal with this. Always be

prepared, so develop a plan for monitoring and controlling the major risks
involved in the project. Using Risk Analysis, develop options to reduce risks,
prepare Contingency Plans, and decide who is responsible for which parts
of risk response.

Project Procurement
Generally, cooperation with external suppliers has a large influence on
project costs.
Suppliers also affect whether the project will deliver on time and
according to specification.
Never rushes with the decision, and makes sure to select the best
supplier.
CHALLENGES AS PROJECT MANAGER - DISCUSS

Management of team dynamic

Management of client relationship
Long working hours
Ethical dilemmas
Impact on personal life
PROJECT TEAM MEMBERS EFFECTIVE TEAM MEMBERS

High quality technical skills

Political sensitivity
Strong problem orientation
Strong goal orientation
High self-esteem
PROJECT TEAM MEMBERS- HOW TO INSPIRE?

PM usually has little control over economic rewards and promotions of project team members. So how can you
can you motivate your employees?
RECOGNITION
ACHIEVEMENT
WORK ITSELF
RESPONSIBILITY
ADVANCEMENT
LEARNING NEW SKILLS
PROJECT TEAM MEMBERS INTRATEAM CONFLICT

Most conflict due to individuals focusing on the project through the eyes of their individual
discipline/department
PROJECT MANAGER should not be a CONFLICT AVOIDERS
Occasionally, compromise appears to be helpful, but often, gently confronting and resolving the conflict is the
method of choice = WIN-WIN situation.
Intrateam conflict can sometimes enhance team creativity.
INTRATEAM CONFLICT

The focus of conflict can often be related to the stage in the projects life cycle:

When the project is first organized, priorities, procedures and schedules all have roughly equal
potential to cause conflict
During the buildup phase, priorities become significantly more important than any other conflict
factor
In the main program phase schedules are the most important cause of conflict followed by
technical disagreements
At the project finish, meeting the schedule is the critical issue.
INTRATEAM CONFLICT
ORGANIZATIONAL CULTURE

Organizational culture refers to a system of shared norms, beliefs, values, and assumptions which binds people
together, thereby creating shared meanings.
This system is manifested by customs and habits that exemplify the values and beliefs of the organization
Think of one culture in your previous company (internship)??
ORGANIZATIONAL CULTURE - FUNCTIONS

PROVIDE SENSE OF IDENTITY

The more clearly an organizations shared perceptions and values are stated, the
more strongly people can identify with their organization and feel a vital part of it.
Identity generates commitment to the organization and reasons for members to
devote energy and loyalty to the organization
ORGANIZATIONAL CULTURE - FUNCTIONS

CLARIFIES AND REINFORCES STANDARD OF BEHAVIORS

Culture helps define what is permissible and inappropriate behavior. These
standards span a wide range of behavior from dress code and working hours to
challenging the judgment of superiors and collaborating with other departments
ORGANIZATIONAL CULTURE - FUNCTIONS

HELP CREATE SOCIAL ORDER WITHIN ORGANIZATION

Imagine what it would be like if members didnt share similar beliefs, values, and
assumptionschaos! The customs, norms, and ideals conveyed by the culture of an
organization provide the stability and predictability in behavior that is essential for an
effective organization
ORGANIZATIONAL CULTURE FUNCTIONS CASE STUDY
ORGANIZATIONAL CULTURE METAPHORE

The metaphor we choose to describe the relationship between

organizational culture and project management is that of a
riverboat trip. Culture is the river and the project is the boat.
ASSIGNMENT 1

Any successful project manager would spend 90% of his or her time on communication activities. This is a vital
function that is even more crucial in the oil and gas business because of the multitude of stakeholders.
Prepare a case study on communication problem that lead to project failure/accidents/incidents. Discuss on the
responsibility of the PM in that case. Make sure your accident case is not the same as your other friends.
Prepare a short slide. Presentation will be carried out in the start of next classes.