1. Types of project organization that would suit the development of the larger touring class motorcycles. Process steps that we will take in order to develop the motorcycle. The matrix organizational structure is the best type of organizational structure to begin our new development line of touring class motorcycles. The matrix structure is a hybrid blend of the functional hierarchical structure and project management structure. We will be modeling our new project on the matrix as shown in the below diagram. In this matrix, we will be adding “project c” to identify the new line of touring motorcycles. The organization is still divided into functional areas (as displayed in vertical directions) and is divided into each of the three projects (as displayed in horizontal directions) (WebFinance, Inc., 2014). As you can see below, our entire product lines of motorcycles will continue; now with individually assigned project managers. The product lines shown as “project a” and “project b” are for our current customers. (Thomas, 2012)
This type of organization structure enables delegation of decision making from senior management to project managers, who then can empower their team members. This way the work is managed so that the project managers focus on cost, schedule, and performance of the project while the functional team members focus on the technical areas. With the matrix type organizational structure, we gain some inherent benefits. The first benefit seen with this type structure is in employee resources. Just as in the functional structure, resources can be shared across multiple projects, reducing the issue of surplus or duplicate staff. The second benefit is that the project teams can now focus of work, with a formal defined project manager. This gives each team more direction and support with a lead that will be responsible for the coordination and integration work between their project team and the business as a whole.
The third benefit is that we are now running three multiple project lines simultaneously, allowing the company to balance our resources enabling us to complete each project on time within budget and with quality requirements that we turn into quality products. The fourth benefit is to the personnel on the project. There is a reduction in the level of anxiety of project members due to this structure. Once the project is completed, they still have a connection to their functional team. This gives team members a dual purpose; an association with the new line project team while retaining their functional association as well. If for some reason their skill is no longer needed on the new line project team, they will return to their functional. At this time, they can remain in their functional or be selected for a new project. As with any project structure, there are also disadvantages that must be addressed. The first disadvantage to expect in this organizational structure is the tensions between functional and project manager.
Many times this is over power and control of personnel. Team members actually have dual reporting while assigned to the project team, causing potential conflicts between the two “bosses”. The second will be the sharing of equipment, resources, and personnel among our three projects. We anticipate conflict and competition for limited equipment, supplies, and resources. Scheduling of equipment use and other resources will have to adhere to. Third, in the process of project implementation, the project manager must work closely with the functional managers on any issues, which could delay in decision-making and potentially delay the project. Fourth, matrix management does not operate under the same principles of unified management; project team members have two bosses, the project manager, and functional managers. When their directions are divided, or do not agree on a clear course of action, it will confuse and frustrate team members.
Resources are utilized with the goal to maximize company productivity for all projects, so workload is normally increased or at a higher tempo; open communication is necessary to keep all projects on track. To ensure success of our new motorcycle line, it is imperative that we move to a matrix type organization where our project managers have a significant control on the project schedule and on the outcome of the functions’ work. Our project managers will have significant authority in deciding the priorities pertaining to their projects and open access in escalating issues to the functional managers for quick and effective resolution.
The individual product teams will include our very best most highly skilled and motivated employees. The three project managers will have a project director to assist with any conflicts between the teams or work out any issues across the functional areas. Our human resource department will evaluate our needs for the new motorcycle project and balance our needs with our current staff to ensure we only hire the additional personnel needed. Our goal is to use our dedicated project team members, representing key functions to get this project up and running. Full support from senior management and functional leads is crucial for the success of this new venture. This process would look similar to this chart: (Hirata Corporation of America, 2009)
2. Strategy that the organization should use to balance short- and long-term needs. The crucial resources that we need to run the existing business interests at the same time that the business changes to the production of touring class motorcycles. Strategic planning process needs to occur throughout the implementation process of our new line of motorcycles. We must develop a Long-Term vs. Short-Term view of our manufacturing and repair services. Our goal is to structure our workflow so that we continue our current business without impact as we stand up a new line of larger motorcycles. We need to establish both long-term and the short-term requirements. For example, we need to support our current major client base for smaller motorcycle purchasing and servicing. Our focus must to be on continuing to deliver the best service possible to our current customers, while at the same time introducing a new larger motorcycle and service to both old and new customers. Our short-term goal would also be to increase the overall client base. This would include many aspects of the company, to include marketing.
The long-term strategy is to transform the organization into a larger more inclusive motorcycle experience, with a shorter-term transition strategy to hire the right people, transition to a matrix organization and get the new line started without impact to the current production and serving. There are several areas we must look at to run the existing business at the same time that we are changing our line to include the production of touring class motorcycles: 1.Cost leadership: Continual efforts to increase efficiency and reduce the cost of resources, to include a decreased use of the world’s resources, without influencing production levels. 2.Durability of the supply chain: This needs to be balanced against the goal to achieve cost leadership. We need to leverage from our current suppliers, for equipment, parts, and supplies, to enhance their durability, while reducing our costs. 3.Motivated and skilled workforce: Upholding the company ethics of doing the right thing, even when no one is looking.
This not only helps the business but also the local community. Ethical behavior enhances our reputation while reduces fraud within an organization. This has to be a top down joint venture; lead by example. 4.Attracting and retaining customers: Today’s customers are looking for socially responsible companies to purchase goods and services from. That extends to suppliers and vendors. One example; is that no child labor was used in the manufacture of supplies or parts. 5.Innovation: This is the overall purpose of increasing our line of motorcycles. Innovation allows enables us to satisfy customer needs in a new way, and keeps our current staff motivated and excited about the future of our company. It even extends to our suppliers and vendors, leading to cost-saving advances in our production process, service, and delivery.
This also extends into reduction of waste and better biodegradable products; all of which is environmentally friendly (Byrne, 2011). Our number one resource is our employees, we need to take our implementation plan and assign the best people to the key positions of project managers, and project director. We also need stake holder and senior level management by in to set the stage to get this new line up and producing. We will need to work closely with our human resource department to identify any shortfalls in labor and fill those voids as soon as possible. 3. Project management leadership style that is most conducive to overseeing the operation of the business growth plan. No one management style is able to fit all projects. Project managers must be flexible, trustworthy, open, and inspiring.
They may also have a combination of the varying traits of management styles, with styles that vary depending on the situation needed to guide a team at a particular time. The project manager for this would have to be mature, knowledgeable of the business, understand risk management, and have good integration skills for both people and the product line. As the project manager, I would use the empowering management style with the project team. I will give team members the authority and tools required to do their jobs. Similar to a coach, but less focused on teaching and more focus on directing and keeping the team on track. As an empowering PM, I will be asking team members to make their own decisions, choose tasks, and even determine how those tasks are to be completed.
I will evaluate the maturity and skill of the individual team members and provide them appropriate levels of authority and freedom to accomplish the project milestones (Hodgkinson, 2009). As an empowering PM, I will be there to help members gain any skills lacking to accomplish the project. I will also incorporate aspects of the facilitating leadership style, as I coordinate the input and results of the team members. As this part of my position deals with organizing and dispensing of project information to senior leadership and stake holders.
I will also disseminate information from management to the team. 4. Recommend at least three (3) risk mitigation strategies to address project plan details that might be forgotten or overlooked. Justify the selection. Risk mitigation progress monitoring includes tracking identified risks, identifying new risks, and evaluating risk process effectiveness throughout the project. Mitigation is the control approach that attempts to reduce, by means of planning and preparation, the damage caused by the identified risk. Mitigation is the ability to detect and respond to a risk as quickly as possible. Risk mitigation strategies include:
1.Assume/Accept: Acknowledge that the risk exists.
2.Avoid: Adjust program requirements or engineering limitations to eliminate or reduce the risk. This could include; funding, schedule, or technical requirements.
3.Control: Implement actions to minimize the impact or likelihood of the risk.
4.Transfer: Reassign accountability, responsibility, and authority of risk to another area willing to accept the risk. This may be an urgent action team, created to deal with a risk. 5.Watch/Monitor: It is the project manager’s job to monitor the environment for changes that affect the nature and/or the impact of the risk. This could be cost, schedule, or requirements driven.
It could also derive from internal to the business or external. Each of these risk mitigation options requires development of an action plan that is implemented and monitored for effectiveness. The three I would focus on are, Watch/Monitor, Assume/Accept, and Transfer. The reason is that you must first monitor to identify the risk then you must accept the risk is valid and if you cannot manage the risk in your area you then transfer the risk to the functional area that can best mitigate or eliminate the risk. The best way is to chart the risks in a diagram as shown below. (The MITRE Corporation, 2014)
Byrne, M. (2011, 06 07). Businesses must balance between short-term needs and long-term strategy. Retrieved from SME Advisor: http://www.smeadvisor.com/2011/06/businesses-must-balance-between-short-term-needs-and-long-term-strategy/ Hirata Corporation of America. (2009). Program Management. Retrieved from Hirata: http://www.hirata.com/Programmanagement.htm Hodgkinson, J. (2009). Leadership Styles for Program and Project Managers. Retrieved from ASPM.org: http://www.asapm.org/asapmag/articles/LeadershipStyles.pdf The MITRE Corporation. (2014). Systems Engineering Guide. Retrieved from MITRE.org: http://www.mitre.org/publications/systems-engineering-guide/acquisition-systems-engineering/risk-management/risk-mitigation-planning-implementation-and-progress-monitoring Thomas. (2012, 09). Organizational Structures. Retrieved from The Project Manager PAD: http://www.projectmanagerpad.com/2012/09/organizational-structures.html WebFinance, Inc. (2014). Matrix Organization. Retrieved from Business Dictionary.com : http://www.businessdictionary.com/definition/matrix-organization.html