This module discusses project organization structures like the Project Management Office (PMO), Project Steering Committee, Project Management Team, and Change Control Board. It explains their roles and how they interact with internal and external stakeholders. Project stakeholders include the project sponsor, customer, performing organization, and vendors. The document provides examples of project organization charts and describes the responsibilities of different project committees and their interaction with the project manager.

1. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Module 3
Project Organization and Stakeholders

2. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Summary
2
This module discusses the various types of
project organization including their roles and
responsibilities and how these project
organization interact with internal and external
project stakeholders.

3. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
What is Project Organizational
structure
 Project Management Office (PMO)
 Project Steering Committee
 Project Management Team
 Change Control Board
 Management Committee
3
A project organization is a structure that facilitates the
coordination and implementation of project activities

4. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Project Stakeholders
 Identify Stakeholders is the process of identifying the people
groups, or organizations that could impact or be impacted by a
decision, activity, or outcome of the project, analyzing and
documenting relevant information regarding their interests,
involvement, interdependencies, influence, and potential
impact on project success.
 The key benefit of this process is that it allows the project
manager to identify the appropriate focus for each stakeholder
or group of stakeholders.
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Project Organization
Project
Management Team
Steering
Committee
Management
Committee
Key project management committees that are responsible for project
delivery and implementation

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Example: Project Organization
Structure
Project Working Committee is to ensure adequate support and
commitment will be provided to the project from the initiation
phase through project closure.
INTEGRATIONAUTO ENGINEERING BUSINESS PROCESS QUALITY ASSURANCE
Electrical
Engine
Power
Mechanical
Business Analyst
Business Process
Functional Analyst
Change Mgmt Analyst
Chief Engineer
ECU Engineer
Suspension
Auto Transmission
Quality Manager
Security Engineer
Safety Standards
STEERING COMMITTEEPROJECT SPONSOR
PROJECT MANAGER
MANAGEMENT COMMITTEE
Fail safe module

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Project Management Office
- functions
 Central coordination of communication management
across projects.
 A mentoring platform for project managers.
 Central monitoring of all PMO project timelines and
budgets, usually at the enterprise level.
 Coordination of overall project quality standards between
the project manager and any internal or external quality
personnel or standards organization.
 Providing shared and coordinated resources across all
projects

8. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Project Management Office
(continued)
 Identification and development of project management
methodology, best practices, and standards.
 Clearinghouse and management for project policies,
procedures, templates, and other shared
documentation.
 Centralized configuration management for all projects
administered by the PMO.
 Centralized repository and management for both
shared and unique risks for all projects.
 Central office for operation and management of project
tools, such as enterprise-wide project management
software.
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9. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Project Steering Committee
- functions
 Comprised of members of the Performing Organization.
 Responsible for the business issues associated with a
project.
 Ensuring that appropriate risk management processes are
applied.
 Approval of changes to the project and its documentation
 Monitoring and review of the project performance
 Assistance to the project when required
 Resolution of project conflicts
 Formal acceptance of project deliverables
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Example of a Project Steering
Committee
Project Sponsor
Head, Business
Process
Head,
Product
Compliance
Head,
Automotive
Engineering
Integration
Manager
Head,
Quality Assurance
Head
Risk
Management
Head,
Software
Engineering
Project Manager
Procurement
Manager

11. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Project Steering Committee
- functions
 Prioritisation of project objectives and
outcomes/benefits
 Budget
 Outputs or deliverables
 Schedule and budget constraints
 Risk minimisation strategies
 Project management and quality assurance
methodologies
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The Project Steering Committee is responsible for approving major
project documentation.

12. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Change Control Board
12
 Change control board is established to review all
change requests and has the authority to approve
or deny change requests as defined by the
organization.
 Change Control Board (CCB) for IT project is a
committee that makes decisions regarding whether
or not proposed changes to a software project
should be implemented.

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Project Stakeholders
Project Stakeholders are those people and organizations who
are actively involved in the project, or will be affected by its
outcome; in other words, people, groups, businesses,
customers, and communities that have a vested interest in the
project.

14. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Internal
Stakeholders
include all the
people that are
affected by the
new product or
service within the
Performing
Organization
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Internal Stakeholders

15. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
External Stakeholders
include all the people
outside the Performing
Organization that are
in any way affected by
the new product or
service.
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External Stakeholders

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Vendors are
contracted to provide
additional products or
services the project
will require and may
be members of the
Project Team
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Vendors / Suppliers

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Project Sponsor is the primary person
responsible for the success of the project

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Project Sponsor
 The project sponsor authorizes the project.
 Project Sponsor should be the highest-ranking manager
possible, in proportion to the project size and scope.
 The Project Sponsor initiates the Project Proposal
process, champions the project in the Performing
Organization, and is the ultimate decision-maker for the
project.
 The Project Sponsor provides support for the Project
Manager, approves major deliverables, and signs off on
approvals to proceed to each succeeding project
phases.

19. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Project Manager
 preparing the detailed project management plan
 identifying risks and planning their management/mitigation
 ensuring the project’s overall objectives, targets at various key
stages, and individuals’ responsibilities are clearly understood by
all concerned
 monitoring performance against the plan
 highlighting areas of slippage and identifying/initiating corrective
action
 completing the project milestone reports
 ensuring appropriate communication between the members of the
project team and other project stakeholders
 ensuring that the project complies with all appropriate procedures
and regulations
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Project Management Team (Project
Team)
The Project Management
Team comprised of
members who are
responsible for executing
project activities or tasks
defined in the work
breakdown structure
(WBS)
Project Management
Team is responsible for
producing deliverables as
defined in the Project
Plan

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Project Management Team
Project Manager
Business
Analyst
Performance
Engineer
Electrical
Engineer
Risk Analyst
Quality Assurance
Manager
Safety &
Security
Engineer
Software
Engineer
Chief
Engineer
Procurement
Manager

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Performing Organization
Performing Organization
includes all members of
the organization’s team
that may exert influence
on Project Team
members or / and
involved in the
development and
implementation of the
project.

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Customer
Customers comprise of the
business units that
identified the need for the
product or service the
project will develop.
Customers can be at all
levels of an organization.
The customer is the
organization that will use
the project deliverable.

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Consumer
Consumers are the end
users which include all
the people that will use
the product or service
that the project is
developing.
Consumers internal to
the Performing
Organizations may also
be Customers.

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Stakeholder : Customer Representative
“Business Analyst” responsibility is to accurately represent their
business units’ requirements to the Project Management Team, and to
validate the deliverables that describe the product or service that the
project will produce.
Towards the end of the project, Business Analyst will test the product
or service and report the results to their business units.
Customer Representatives
are members of the
Customer community that
are identified and made
available to the project for
their subject matter
expertise.

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Managing Stakeholder Expectations
In this scenario, the project manager will have to work with each of the
stakeholders to determine a winning solution that satisfies all of the project
requirements.
The Sales Director primarily wants a technical solution that will ensure fast
output of order placements, proposals, and customer contact information-
regardless of the cost.
The Marketing Director primarily wants a technical solution that can track call
volume, customer sales history, and trends with the least cost to implement
The IT Director wants a technical solution that will fan into the existing network
topology, have considerable ease of use, and reliability-without costing more
than 20 percent of his budget for ongoing support.
Consider a project to implement a new Customer Relationship Management
software. In this project, there are three primary stakeholders with different
expectations:

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Organizational layers
O P E R A T I O N S
F U N C T I O N A L
E X E C U T I V E
STRATEGIC
• Vision, strategy
• Why is the project important to our organization?
TACTICAL
• What is the purpose of this project ?
• What business processes are affected ?
SUPPORT
• How can the work be
accomplished?
• How can we reach the desired
future state with these requirements?

28. © Copyright GAFM Academy® of Project Management “How To Direct and Manage a Project”
Organizational Structure
28
Type of Structure Description
Projectised The project manager has autonomy of the project decisions.
•High to complete authority over the project team
•Works full-time on the project with his team (though there may be
some slight variation)
•Has a full-time administrative staff to help expedite the project
Strong matrix Project team may be assigned to a project from 50 to 90 percent of
its duration. The project team may also have more time available
for the project even though they may come from multiple
departments within the organization.
Balanced Matrix Project manager has more time and power regarding the project. A
balanced matrix still has time accountability issues for all the project
team members since their functional managers will want reports on
their time within the project.
The organizational structure will set the level of authority, the level of autonomy, and the
reporting structure that the project manager can expect to have within the project.

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Organizational structure
The organizational structure will set the level of authority,
the level of autonomy, and the reporting structure that the
project manager can expect to have within the project.

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Projectized Structure
 The project
manager has
autonomy of the
project decisions.
 High to complete
authority over the
project team
 Works full-time on
the project with his
team
 Has a full-time
administrative staff
to help expedite the
project

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Functional Structure
 Little power,
Little autonomy
 Report directly
to a functional
manager.
 The project
manager may be
known as a
Project
Coordinator or
Team Leader,
Part-time role.

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Matrix Structure
Weak matrix: The project manager has little project authority and acts as a project coordinator.
Strong matrix: Project team may be assigned to a project from 50 to 90 percent of its duration.
The project team may also have more time available for the project even though they may come
from multiple departments within the organization.
Balanced matrix: Project manager has more time and power regarding the project. A balanced
matrix still has time accountability issues for all the project team members since their functional
managers will want reports on their time spent for the project.

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Project Manager : Level of Authority
WEAK MATRIX
STRONG MATRIX
BALANCED MATRIX
PROJECTIZED
FUNCTIONAL
PROJECTMANAGER
AUTHORITY
FUNCTIONALMANAGER
AUTHORITY

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end of module